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HomeMy WebLinkAbout~Master - Budget Wrap-up Session of the Ames City Council 02/15/2005MINUTES OF THE BUDGET WRAP-UP SESSION OF THE AMES CITY COUNCIL AMES, IOWA FEBRUARY 15, 2005 The Ames City Council met for the budget wrap-up session at 5:15 p.m. on the 15th day of February, 2005, in the City Council Chambers in City Hall, 515 Clark Avenue, pursuant to law with Mayor Ted Tedesco presiding and the following Council members present: Cross, Goodman, Vegge, and Wirth. Council Members Goodhue and Mahayni and Ex officio Member Tugan were absent. PAYMENT OF COSTS FOR SPECIAL ELECTION TO INCREASE HOTEL/MOTEL TAX: Mayor Tedesco advised that a petition had been received requesting that the terms of City Council members be changed from four years to two years. Iowa Code mandates that the Special Election be held within 60 days of the receipt of the petition. The Mayor stated that there is a high learning curve that sometimes takes a couple years; it would be wise to stagger the terms so that the entire City Council does not come up for reelection simultaneously. City Attorney John Klaus stated that the last time a similar case occurred in Ames was in 1954 when the terms were changed from two years to four years. He advised that Section 376.4 of the Code of Iowa provides for the filing of a valid petition to change the terms of City Council members. The statute only allows for the staggering of terms when the request is to change the terms from two years to four years. Mr. Klaus will research this issue and report back to the City Council. Mayor Tedesco said that since the petition for a second Special Election had been received, it would be most cost-efficient for the City to place both issues on the ballot of April 5. If that is what is recommended by the City Council, the City of Ames would pay for the election. FY 2005/06 BUDGET WRAP-UP ARTS FUNDING (COTA): Assistant City Manager Sheila Lundt explained the funding request in the amount of $94,195 for the Commission On The Arts (COTA). Members of the Commission present were Joyce Mercier and Lu Kiser. Ms. Lundt reviewed the recommended allocations for several organizations. She stated that a rearrangement of the funds had to be made to allow for funding individual requests to the highest level possible. Ms. Mercier stated that the total amount of requests coming into the COTA was in excess of $123,000; however, they only had $94,195 available for funding in 2005/06. Mr. Kiser said it was important to realize the magnitude of the projects being funded; COTA contributes about 75% of the amount of funding needed by each organization. HUMAN SERVICES FUNDING (ASSET): Sheila Lundt introduced Rob Wiese, City volunteer to ASSET. Ms. Lundt reviewed ASSET's funding request in the total amount of $2,036,097 (City of Ames: $813,373, Story County: $379,343, United Way of Story County: $708,381, and ISU Government of the Student Body, $135,000). She pointed out that while the City had an increase of 3% in available funds, the County’s General Basic funding was essentially level with 2004/05, United Way was able to increase its available funding by only .5%, and the Government of the Student Body (GSB) had a decrease of $30,000 due to the drop in student enrollment. Ms. Lundt said that Panel III was hit the hardest by the $30,000 drop; nearly $10,000 came out of this Panel. Panel III is comprised primarily of childcare, youth social development, and youth employment assistance, and is a high priority panel for all funders, particularly the City and the GSB. In an effort to soften that cut, an additional $7,294 in City funds (mostly from Panel II) was moved to Panel III. Ms. Lundt explained that for 2005/06, the City will be “over- funding” Ames Community Preschool Center’s (ACPC) request for funding for day care for children. The intent is that when enrollment increases again at ISU, GSB will be able to resume its commitment to this program at ACPC (since the Center serves a number of student families), and City funds will be redistributed. Mr. Wiese indicated that the agencies cooperated well this year. The changes that the City made to the criteria and the outcomes helped the ASSET volunteers. Discussion ensued concerning the main financial struggles faced by the agencies providing the services. PUBLIC ART FUNDING: Assistant City Manager Bob Kindred introduced Mary Howard and Anne Taylor, members of the Public Art Commission. Ms. Howard explained that the Commission is requesting funding in the amount of $25,000. She highlighted some of the Commission’s accomplishments of the past year and explained the increases in their funding request. The Commission is also asking that any monies remaining at the end of the fiscal year be allowed to rollover to the next year’s budget. AMES INTERNATIONAL PARTNER CITIES ASSOCIATION, INC., (AIPCA) FUNDING: Becky Rice, President of the Ames International Partner Cities Association, Inc., was present. Ms. Rice referred to the letter written on behalf of AIPCA requesting that the Council renew the funding level of $3,000 for FY 2005/06. She advised that Ames will host both delegations, Frydek-Mistek in the Czech Republic and Enzan City, in June and early fall, respectively. OTHER REQUESTS: City Manager Steve Schainker reviewed the following requests for 2005/06 funding: 1. Special Olympics in the amount of $2,500 to support the Summer Games 2. Reiman Gardens in the amount of $1,500 to support the “Welcome Back to Ames” concert scheduled for August 26, 2005 3. Leaders Inspiring Connections (LINC) in the total amount of $9,000 to improve and increase local playgrounds 4. Main Street Cultural District in the amount of $2,000 to help pay for more street plantings 5. West Fest in the amount of $250 to be applied towards a non-profit festival to be held at the Story County Fairgrounds in Nevada, Iowa 6. Ames Historical Society in the amount of $14,155 to apply towards renting a larger facility Kathy Svec, 603 Grand, Ames, representing the Ames Historical Society, was present. She explained that the Society is requesting a match of the membership funding that is currently being spent to maintain the archive and storage facility. 7. Hunziker Youth Sports Complex in the amount of $20,000 for operational expenses Mayor Tedesco reminded the City Council that $75,000 was budgeted by the City out of Local Option Tax funds in 2004/05 to be directed toward seal coating Billy Sunday Road 2 leading into the Complex. Nikki Dempsey, Chairperson of the Board of Directors, advised that the Board is requesting an additional $20,000 for operational expenses for one year only. She said soccer membership, in particular, has had declining numbers for the past three years. Ms. Dempsey indicated that $6,000 would be used to either lease or purchase a lawn mower with the remaining $14,000 being used to decrease player fees for soccer. The Board also requested that the $25,000 allocated in FY 2004/05 be allowed to be used for needed capital improvements: disability paths ($7,800), fix potholes in the road ($8,000), bring the fuel tank to Code ($3,200), and the purchase or lease of a new lawn mower ($6,000). Ms. Dempsey advised that the Board hopes to generate alternative revenue by writing grants, security sponsorships, and receiving donations to meet the operational budget of the Complex in the future. PUBLIC INPUT ON CIP AND BUDGET: Merlin Pfannkuch, 1424 Kellogg Avenue, Ames, indicated that he recalled, upon its creation, the Hunziker Youth Sports Complex was supposed to be self-supporting; that doesn’t seem to be the case now. He also felt that the results of the Resident Satisfaction Survey should not be used to make funding decisions. Mr. Pfannkuch believed that the City is being too sparse in funding actual community betterment; in particular, too much is being spent for ongoing maintenance and to reduce the property tax rate further. He does not believe that, should the Special Election for increased Hotel/Motel Taxes pass, it is a good idea for the Ames Convention and Visitors Bureau to respond to the requests for funds from organizations such as the Special Olympics and the Ames Jaycees; that organization should not decide how to spend public funds. Mr. Pfannkuch wanted the City to open up funding to other groups for economic development, not just the Ames Economic Development Commission. He would like the details specified in the Agreement between the AEDC and the City. Charles Habing, 2220 Hayes, Ames, representing the Allenview Neighborhood Association, stated his concerns over the amount of traffic on Hayes Avenue (3,300 vehicles/day). He proposed that Prairie View West be extended and 20th Street be extended to provide another entrance to the Ames High School. This would reduce the traffic on Hayes by about 1,000 vehicles/day. He said it is also a safety issue: High School students now have to cross the railroad tracks twice – once on 20th Street and once on 24th Street. His plan would eliminate the need to cross the tracks at all. Mr. Hibbing requested that the City include this proposal in the Capital Improvements Plan within the next three years. John Joiner, Acting Director of the Public Works Department, advised that in 2002, several alternatives to re-routing traffic around Hayes Avenue were presented and all were disregarded due to cost. However, he stated that the City is in the process of updating its Transportation Plan, and the first public meeting concerning that Plan is scheduled for February 16. He indicated that the details of Mr. Hibbing’s proposal should be presented during that meeting. Council Member Wirth clarified that the process to be followed would be for the City to include such a proposal first in the Transportation Plan prior to it being included in the Capital Improvements Plan. Jim Popken, 920 Clark Avenue, Ames, spoke on the practice of the City moving $230,000 from the Community Betterment Fund directly to the General Fund for property tax relief. He felt that this was in direct conflict with the intent of the citizens of Ames, who passed the 1% Local Option Tax by referendun on November 4, 1986. He would like to see these funds itemized so that the public could see exactly where that money is going and be assured that it truly is for 3 community betterment. The funds were to be earmarked for arts and human services. Mr. Popken suggested that the questions on the Resident Satisfaction Survey be re-worded so as to get a better understanding of what is needed and what is expected. He believed that it is important for the City to measure its progress and outcomes just as it requires other agencies receiving public funds to do. The meeting recessed at 7:55 p.m. and reconvened at 8:05 p.m. Jim Popken, 920 Clark Avenue, stated his opposition to the transfer of $230,000 from community betterment into the General Fund. The creation of the Local Option Sales Tax Fund was voted upon through the election process, therefore, the public sector should figure out where that money is going. Mr. Popken said that if $230,000 goes into the General Fund, the money “goes off into the vapors” with regard to community betterment. Teresa Simplot, 2600 Southeast 16th Street, representing the Heartland Inn, spoke in favor of paving Southeast 16th Street. She said that paving the road does not have as much to do with bringing business to her hotel as it does with allowing guests to have easy access to restaurants and other facilities. In her estimation, guests spend about $100/person (other than for hotel costs). Hotel guests do not want to get back on Highway 30 just to get to a restaurant or do other shopping. She feels that the City is missing out on some of those dollars because there is not easy access to the rest of Ames. Pat Brown, 3212 West Street, Ames, representing South Duff Neighborhood Association, also spoke in favor of paving Southeast 16th Street. She asked the City Council to remember that they had asked the Southeast 16th business people to join in a partnership with the City and begin looking at design standards for buildings in that area. Ms. Brown indicated that there is strong property owner interest and participation in this vital area. Commitment by the property owners is shown by agreeing to be assessed $1.5 million for the street project, a gift of land to the new DMACC Academy of approximately $500,000, and the $495,000 Southeast Entryway Partnership project. She advised that Southeast 16th Street had become a very active component of Ames. Ms. Brown said that the land where the trailer court now exists is a very valuable piece of land that may someday be used for commercial purposes. Monte Parrish, 1511 Stone Brooke Road, Ames, reminded the City Council that he had previously spoken to them on this issue. He pointed out that there may be some savings on the Grand Avenue Extension project since it is being recommended to run from Lincoln Way to South Fourth Street, instead of to South Fifth Street. It was his recollection that H. R. Green Preliminary Planning Study estimated the cost at $3.713 million to extend Grand Avenue all the way to Squaw Creek Drive. City Manager Steve Schainker advised that the proposed CIP correctly reflects the amount at $3.7 million; it previously was about $6 million. He pointed out that this amount is also contingent upon receiving federal appropriations of $2.9 million. Mr. Parrish felt that if this project were done in three phases, it would allow more time for economic development to occur and somewhat ease the funding demand. Finance Director Duane Pitcher advised that the proposal concerning the paving of Southeast 16th Street in the draft 2005/10 CIP is not feasible as it requires assessments amounting to approximately $3 million. He explained two options: one would be to fund the project at a higher level or to drop the project. The project itself would require an increase of $.16 in debt service levy if it were included in a bond issue. 4 Mr. Schainker advised that relocating the bike path around the Skateboard Park would cost approximately $12,000. If parking were paved in this area, it would cost an additional $13,000. If recommended, the funding source should be Local Option Tax funds. In keeping with their former direction, a revised Page 28 of the CIP, which pertained to the Shared Use Path system, was distributed to the Council. A discussion on the Railroad Crossing Improvements, specifically on Sixth Street and Brookridge, was held. At issue was the expending of $45,000 on a study of that intersection. Council Member Vegge suggested that the project be moved back a year or two. SALARIES FOR COUNCIL APPOINTEES: Moved by Wirth, seconded by Goodman, to increase the pay for the Mayor to $8,000/year and for Council members to $7,000/year, effective January 1, 2006. Vote on Motion: 4-0. Motion declared carried unanimously. Council Member Cross reported on the review procedure for Council appointees City Manager Steve Schainker and City Attorney John Klaus. It was recommended that both Council appointees receive a 3.25% increase over last fiscal year's salary. Moved by Cross, seconded by Vegge, to set the City Manager’s base salary for FY 2005/06 at $147,314 and set the City Attorney’s salary for FY 2005/06 at $136,807.28. Vote on Motion: 4-0. Motion declared carried unanimously. AMENDMENTS TO 2005/10 CAPITAL IMPROVEMENTS PLAN: Moved by Vegge, seconded by Cross, to move the Brookside/Sixth Railroad Crossing project back one year (this includes both the study and actual construction). Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Cross, to move the Shared Use Path System project for the Grand Avenue segment (20th Street to Murray Drive) to 2005/06. Vote on Motion: 4-0. Motion declared carried unanimously. Discussion ensued on the Southeast 16th Street Paving and Bridge Replacement project. Mr. Schainker advised that since this project is not listed in the CIP for 2005, this issue did not need to be decided tonight. Changes could be made to this project and the CIP amended at a later date. City Council members discussed the possibility of having staff review the CIP as it pertained to the Southeast 16th Street Paving/Bridge project and configure how the project could be accomplished in phases; however, no formal action was taken. Moved by Goodman to include $12,000 in the 2005/06 CIP to relocate the bike path around the Skateboard Park. Motion died for lack of a second. Moved by Cross, seconded by Goodman, to direct staff to report back to the City Council at their next meeting on alternatives to making the area of the bike path around the Skateboard Park safer. Vote on Motion: 4-0. Motion declared carried unanimously. 5 APPROVAL OF 2005/10 CIP: Moved by Wirth, seconded by Vegge, to approve the Capital Improvements Plan for 2005/10, as amended. Vote on Motion: 4-0. Motion declared carried unanimously. AMENDMENTS TO PROPOSED FY 2005/10 BUDGET: Moved by Goodman, seconded by Wirth, to allocate $7,500 from the Local Option Tax fund to the Ames Historical Society. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Cross, to allocate $2,000 from the Local Option Tax fund to the Main Street Cultural District. Vote on Motion: 1-3. Voting aye: Wirth. Voting nay: Cross, Goodman, Vegge. Motion failed. Moved by Vegge to fund the Public Art Commission at $21,000. Motion died for lack of a second. Moved by Wirth, seconded by Cross, to fund the Public Art Commission at $20,000 (out of the Local Option Tax Fund). Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Cross, seconded by Vegge, to allocate $1,500 from Hotel/Motel Tax funds to Reiman Gardens for their “Welcome Back to Ames” concert, subject to a matching amount from Iowa State University. Council Member Cross indicated that only 1,000 students, out of approximately 27,000, attended this event last year. Vote on Motion: 0-4. Motion failed. Moved by Wirth, seconded by Goodman, to allocate $250 from Hotel/Motel Tax funds to West Fest. Vote on Motion: 4-0. Motion declared carried unanimously. Council Member Vegge stated that he would not endorse funding for the Hunziker Sports Complex to buy-down fees for soccer players. In his opinion, that is excluding participants in other sports and City funds should not be used for operational expenses of an entity that was purported to be self-supporting. Council Member Wirth pointed out that the funds were originally allocated to provide funding for seal coating Billy Sunday Road leading into the Complex. She explained that there is currently no agreement as to how the funds will be spent. Moved by Wirth, seconded by Goodman, to remove a $25,000 allocation for the Hunziker Sports Complex from the 2005/06 budget. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Goodman, to authorize City staff to adjust the 2005/06 budget to provide for a 10% increase in sanitary sewer revenue, commencing July 1, 2005. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Vegge, seconded by Wirth, to authorize City staff to increase the storm sewer user fee by $.75/month, commencing July 1, 2005. (The CIP would be changed accordingly to reflect 6 these additional revenues paying for the Annual Residential Street Low-Point Drainage and the Storm Sewer Outlet Erosion Control projects instead of General Obligation Bond funding.) Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Cross, seconded by Goodman, to direct staff, for the 2006/07 budget, to identify specific “community betterment” projects that are paid for by the $230,000 transfer from Local Option Tax Revenues to General Fund programs, which would be in concert with the intent of the original referendum. Vote on Motion: 4-0. Motion declared carried unanimously. APPROVAL OF PROPOSED BUDGET FOR FY 2005/06, AS AMENDED: (Motion made during the budget hearing on February 8, 2005.) Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Cross, seconded by Wirth, to set March 8, 2005, as the date of final public hearing on the proposed budget for FY 2005/06. Vote on Motion: 4-0. Motion declared carried unanimously. BUDGET AMENDMENTS FOR FY 2004/05: Moved by Goodman, seconded by Cross, to approve the proposed budget amendments for FY 2004/05. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Cross, seconded by Wirth, to amend the 2004/05 budget to require a written agreement with the Hunziker Sports Complex covering specifically: disability paths ($7,800), fixing potholes in the road ($8,000), bringing the fuel tank to Code ($3,200) and $6,000 towards the leasing or the purchase of a lawn mower, before any portion of the $25,000 allocation is disbursed; to require the receipt by the City of a long-term plan from the Sports Complex; and to direct staff to explore the possibilities of joint ventures between the Complex and the City. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Cross, to direct funds to be reallocated within the Parks & Recreation budget to fund the Leaders Inspiring Connections (LINC) request in the total amount of $9,000. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Vegge, to direct staff to include the roll-over of $11,000 and any left-over funds from the allocation for the Public Art Commission from the FY 2004/05 budget to the FY 2005/06 budget during the 2004/05 amendment time. Vote on Motion: 4-0. Motion declared carried unanimously. Moved by Wirth, seconded by Cross, to set March 8, 2005, as the date of public hearing on the proposed budget amendments for FY 2004/05. Vote on Motion: 4-0. Motion declared carried unanimously. ADJOURNMENT: 10:30 p.m. 7 _________________________________ ____________________________________ Diane Voss, City Clerk Ted Tedesco, Mayor 8