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HomeMy WebLinkAbout~Master - Special Meeting of the Ames City Council 01/28/2011MINUTES OF THE SPECIAL MEETING OF THE AMES CITY COUNCIL AMES, IOWA JANUARY 28, 2011 The Ames City Council met in special session at 2:00 p.m. on January 28, 2011, in the Council Chambers of City Hall, 515 Clark Avenue, pursuant to law with Mayor Campbell presiding and the following Council members present: Davis, Goodman, Larson, and Wacha. Council Member Orazem arrived at 2:35 p.m. Council Member Mahayni and ex officio Member England were absent. SUBMISSION OF MENTAL HEALTH CRISIS SERVICES PLANNING GRANT: Assistant City Manager Sheila Lundt stated that the Mental Health/Criminal Justice Task Force had been analyzing the needs of the Ames community and available resources to meet those needs. The analysis showed that assistance was needed to bring all involved providers together in a unified planning process. According to Ms. Lundt, at the January 20, 2011, Joint Funders’ meeting, the ASSET funders unanimously approved the submission of a $50,000 grant request to the Federal Department of Justice for crisis mental health response planning. The Funders also approved ASSET’s participation in the planning process should the grant be received. Ms. Lundt reported that the applicant for the grant must be a unit of state government, a County, or a City; thus, the City of Ames would be the applicant. The grant requires a minimum 10% local match, which would be funded by a portion of the City’s staff time. The grant, if received, would allow for outside assistance to bring City and County resources together to discuss what needs to be done to have a continuum of care after a patient has been assessed at an assessment center. The grant application must be submitted by February 3, 2011. Council Member Larson, who was present at the Joint Funders’ meeting, noted that the grant would just be the first phase; it only does the study. An implementation grant or some other source of funding would also be needed. Ms. Lundt said that the City and County need to watch Iowa House File 45; a part of that bill is to remove responsibilities for mental health services from the counties and place them with the state. According to Ms. Lundt, many of the mental health services received in Story County exceed the minimums currently mandated by the state. She said that mental health services present a very critical community need for Ames, Iowa State University, and all of Story County. Moved by Larson, seconded by Davis, to adopt RESOLUTION NO. 11-039 approving staff’s submission of the Mental Health Crisis Services Planning Grant to the Federal Department of Justice. Roll Call Vote: 4-0. Resolution declared adopted unanimously, signed by the Mayor, and hereby made a portion of these minutes. FY 2010/11 BUDGET OVERVIEW: City Manager Steve Schainker said that he, Finance Director Duane Pitcher, and Budget Officer Carol Collings would be presenting the recommended Program Budget for Fiscal Year 2011/12 as well as the recommendations for any changes projected for the current fiscal year’s budget. Mr. Schainker said that a slight decrease in the overall property tax rate is being recommended. In terms of the Utility funds, the increases have been planned from previous discussions of the Council and predominantly from planned Capital Improvements Plan projects. Those increases will help position the City to continue to maintain current facilities and levels of service. According to Mr. Schainker, the projected Program Budget totals approximately $192 million; it includes the operations budget of the Utilities and General Fund and capital improvements. Mr. Schainker noted that budget discussions will occur over the next week on departments’ operating budgets with concentration directed towards the service level portion. Mr. Schainker pointed out that the Capital Improvements Plan was explained and discussed at the Council’s workshop of January 18, and public input on same was received on January 25, 2011. Finance Director Duane Pitcher announced key dates of February 1, 2, and 3, 2011, for department budget hearings; February 8, 2011, for budget wrap-up (when funding decisions will be made by the City Council); and March 1, 2011, when the budget will be adopted by the Council. After adoption, the City Clerk certifies the budget and amendments to the County for a levy of property taxes for the next year. Property Tax Levies for 2010/11 were summarized by Director Pitcher. He stated that the City’s levy makes up 33.24% of a property’s total tax bill; the School District makes up 44.90% (if in the Ames Community School District); 21.06% is the County’s share; and 1.79% goes to Des Moines Area Community College (DMACC). Mr. Pitcher gave a comparison of City Property Tax Valuations and Total Levies to be collected for fiscal year 2011/12 for the ten largest cities in Iowa and Ankeny, which was included due to prior Council direction. He reported that Ames is the only city in that group under the $8.10 limit. Ames has the second-lowest total city tax levy per $1,000 valuation ($10.85); only Dubuque is lower at $10.03. Mr. Pitcher reiterated that for FY 2011/12, the total tax levy/$1,000 taxable valuation will be $10.85. Water and Sanitary Sewer Utilities will have rate increases. There will be a new rate structure in the Storm Sewer Utility. Resource Recovery and Electric will remain flat. Mr. Pitcher also advised that Electric Services is in the process of selecting a consultant to conduct a cost-of-service and rate study, which will be implemented no earlier than after the summer rates this year. According to Mr. Pitcher, the General Fund is balanced in both Operations and Capital. He noted that there will be a net reduction in the rate and tax dollars for the General Levy. Council Member Orazem arrived at 2:35 p.m. According to Mr. Pitcher, the change in rollback rate will cause somewhat of a shift back to the Residential classification. He stated that the City’s mandated increased contribution to the Fire & Police Trust Fund will have the biggest impact on property taxes for the 2011/12 Budget; it makes up a little over 80% of the total increase in new property tax dollars. The FY 2011/12 required contribution rate increased to 24.76% of payroll; the total dollar increase for FY 2011/12 is $371,000. There will be a net reduction of 1.0 Full-Time Equivalency (FTE) from the FY 2010/11 Budget. Several changes will occur to Parking (Legal), Rental Inspections, and Public Works, and the Section 8 Housing Program will be eliminated from the Budget. Mr. Pitcher noted that there was an increase in taxable valuation of only 2.0%. Last year, taxable value increased by 4.7%. The General Levy rate is down $.14; the dollars are down $46,000. Mr. Pitcher reminded the City Council that, by referendum, 60% of the Local Option Sales Tax proceeds goes directly to reduce property taxes. The City has not seen any real growth in the Local Option Tax Fund beyond inflation in the past few years. The total tax levy for FY 2011/12 would be $12.55 without the infusion of Local Option Tax proceeds of $1.71/$1,000. Debt Service for the 2010/11 budget was explained by Mr. Pitcher. He noted that $900,000 will be allocated from the Fund Balance. According to City Manager Schainker, the fund balance will be depleted at the end of 2013/14. Mr. Pitcher pointed out that, with current valuations, that translates into a FY 2011/12 Debt Service Levy of $3.53/$1,000 valuation. Attention was directed 2 to the listing of General Obligation Bond projects planned for 2011/12. Mr. Pitcher reported on the percentage of taxable valuation by property type. The biggest change will be to Residential (due to Rollback). He gave sample tax calculations for the three property classifications. For 2011/12, the change per $1,000 taxable valuation is $17.47 for Residential, an increase of 3.43%; for Commercial, $(0.21), a decrease of .02%; and for Industrial, $(0.21), a decrease of 02%. A summary of the change in tax asking for FY 2011/12 was presented. There was an increase in revenues of $1,074,052 (4.9%). Expenses increased by 3.6% or $1,027,815. The total change in the General Levy is $(46,237). Including that with the Employee Benefits Levy, Transit Levy, and Debt Service Levy, the total change in tax asking equates to $451,869. Council Member Wacha left the meeting at 2:50 p.m. The costs of City services for 2011/12 per residence from property taxes (based on a $100,000 home) were summarized, as follows: Streets/Traffic $ 130 Police Protection 124 Fire Protection 86 Recreation and Parks 57 Library 45 Transit 31 General Support Services 23 Planning 10 Resource Recovery 6 Storm Sewer 5 Animal Control 4 Inspections/Sanitation 3 Building and Grounds/Airport 2 TOTAL $ 526/$100,000 Regarding utilities, Mr. Pitcher said the following rate changes are planned: Electric will go up 5.0% in FYs 2012/13 and 13/14; water will increase 8.0% in FY 2011/12, 10% in FY 2012/13 and 10% in FY 2013/14, remain the same in FY 2014/15, and increase by 10.0 in FY 2015/16; sewer: 10% in 2011/12, 2012/13, 2013/14, and 6.0% in FY 2014/15; and storm sewer, the only rate increase planned is 15.0% in FY 2011/12. There is no change in the per capita rate or tipping rate planned for Resource Recovery. City Manager Schainker alerted the Council members that they will be asked to make a decision in the near future as to whether to fill the position of City Sanitarian. The current long-term employee will be retiring in June. The City could opt to eliminate the position and enter into a contract with the State to perform inspections. Ms. Lundt urged the Council to think carefully about eliminating the City Sanitarian position. She alluded to the extra inspections performed by the City Sanitarian on nights and weekends during special events. She believes that level of service would be decreased significantly if the City position were eliminated. Ms. Collings highlighted the General Fund ending balance of $6,506,418. She explained how that balance was built. Ms. Collings noted the Council’s policy of reserving 20%, and with that being 3 removed, the unreserved fund balance totals $1,130,834. Ms. Collings listed prospective projects that are included in the adjusted year 2010/11. Budget Officer Collings reviewed the Local Option Sales Tax Fund. Revenues exceeded the current year’s estimate by $98,000. The estimate for 2011/12 is 2% higher. After reserving 25%, per Council policy, there is an unreserved balance of approximately $475,000. Ms. Collings noted a shift in funding directed by the City Manager to pay for less asphalt resurfacing from this Fund. Instead, the City bonded for those improvements and allocated the monies from Local Option Tax Fund to pay for shared-use paths. The Council’s attention was also brought to letters submitted by outside agencies for funding; if those are approved, the funding would come from the Local Option Tax Fund. Ms. Collings pointed out that the City had experienced a downturn last year in the Hotel/Motel Tax Fund. She reminded the Council that seven cents/$1 is the Hotel/Motel rate. Of that amount, five cents is provided to the Ames Convention & Visitors Bureau for community attractions, one cent replaces the Local Option Tax and is split 60% for tax reduction and 40% for community betterment projects, and one cent remains in the Fund for economic development. With the downturn in the number of rented hotel rooms, there is a projected deficit of $31,111 in the Hotel/Motel Tax Fund. In the Leased Housing Fund, Ms. Collings noted that the City Council made a decision to turn this program over to the Department of Housing and Urban Development (HUD) for administration by an agency other than the City of Ames. It is expected that HUD will take any funds remaining that are associated with rentals, but the City might be able to keep any accumulated administrative money. Ms. Collings again showed that asphalt resurfacing was shifted to bond financing, which really helped the balance in the Road Use Tax Fund. Due to that shift, there remains approximately $400,000 in that Fund. The City-Wide Affordable Housing Program has an ending balance of a little over $686,000. After the Leased Housing Program reverts to another agency, 1.4 FTEs will be paid for by the Community Development Block Grant. Discussion ensued about selling homes currently under City ownership; proceeds from selling homes must net $50,000 to help pay for the cost of those FTEs. Ms. Collings briefly reviewed the Tax Increment Financing, which now only includes development on South Bell. She also briefly highlighted the following funds: Park Development; Furman Aquatic Facility Construction Donations, which will be closed out; and Cemetery, Library Donations, and Developer Projects. Mr. Pitcher explained that the fund balance in the Economic Development Revenue fund reflects the balance of loans outstanding as well as the cash and investments held by the Fund. Council Member Davis asked to know the expected time it will take to be out of land at the Municipal Cemetery. City Manager Schainker said that he would provide that information to the City Council. City Manager Schainker reviewed the enterprise accounts for utilities (water, sewer, and electric). He explained that it is planned for the City to use State Revolving Loan Funds for construction 4 of the new Water Plant in lieu of issuing Revenue Bonds. The Revolving Loan will show up as debt, but will not affect the City’s bonding capacity. He also noted that there are planned draw- downs from large balances to help pay for public improvements. Ms. Collings mentioned that Electric Services Director Kom stated that the Mary Greeley Medical Center Steam Line Project would not occur. The recommended budget did drop that $800,000 project; that change will be made to the final CIP. Mr. Schainker noted that he had programmed, into the 2011/12 Budget, a continuation of the contract for sharing the Sustainability Coordinator with Iowa State University. He also brought the Council’s attention to Parking Operations and Improvement. He noted that that Fund accounts for operations of the City’s parking system and includes operation and maintenance of meters and lots. According to Mr. Schainker, there is a possibility of a deficit in the Operations Budget for the proposed Intermodal Facility. He is working on finalizing the Operations Agreement with Iowa State University, which will be brought before the Council for approval on February 8, 2011. According to Ms. Collings, the three Transit Funds will be discussed by the Transit Director during departmental budget hearings. The Storm Sewer Fund was highlighted by City Manager Schainker. He pointed out that staff had responded to a Council priority regarding a study for flash-flooding mitigation. Mr. Schainker said that the Ice Arena Capital Reserve and Homewood Golf Course Funds are in good shape. City Manager Schainker emphasized that no fees will be increased (per capita or tipping) for Resource Recovery Operations and Improvements. However, a study on how to alter the form of RDF and how it is processed in order to receive higher benefits is planned for the future. Capital improvements may be needed as a result of that study. Ms. Collings also noted that two revenue sources increased: when coal costs increased, the value of RDF went up, and improved processing resulted in more metalrecyclables. Mr. Schainker noted that staff has been informed that the demolition landfill is nearly at capacity. That is a private facility; however, when that landfill closes, he pointed out that persons will have to haul construction debris to Boone. Fleet Replacement, Information Technology, Computer Replacement, Risk Management, and Health Insurance Funds were briefly explained by City Manager Schainker. Those costs are charged-back to departments. Mr. Schainker commended employees for holding the health insurance costs down; there will only be a 5% increase in premiums. It was again noted that copies of the written requests for funding from outside agencies were included in the information provided to the Mayor and Council. A copy of the request from the Main Street Cultural District, which was received today, was distributed around the dais. Mr. Pitcher summarized the outside funding requests received to date. Those requests will be discussed at Budget Wrap-Up to be held on February 8. Information describing three options for a Business Development Coordinator was distributed by City Manager Schainker. He also passed around information on Leased Housing options. 5 Council Member Larson asked for additional information to be provided to the Council regarding the City Sanitarian position. Mr. Schainker reiterated that the person currently in that position will retire in June 2011, and it is possible to enter into a contract with the State. Mr. Larson asked for a survey to be conducted of the restaurant owners, et al, and a report prepared by staff making comparisons between the City and State’s level of service. Moved by Larson, seconded by Davis, requesting staff to provide a report in the second quarter of the year on the issues related to the City Sanitarian position. Vote on Motion: 4-0. Motion declared carried unanimously. COMMENTS: Mayor Campbell noted that the deadline for applications for appointment to a Board or Commission is February 4. She asked for the assistance of the Council members in recruiting applicants. ADJOURNMENT: Moved by Davis to adjourn the meeting at 4:10 p.m. Vote on Motion: 4-0. Motion declared carried unanimously. ________________________________________________________________________ Diane R. Voss, City Clerk Ann H. Campbell, Mayor 6