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HomeMy WebLinkAboutMinutes - City Council - 11/23/2009CITY COUNCIL BUDGET WORK SESSION 23 NOVEMBER 2009 The South Burlington City Council held a budget work session on Monday, 23 November 2009, at 6:30 p.m., in the Conference Room, City Hall, 575 Dorset St. Members Present: M. Boucher, Chair; S. Dooley, M. Emery, J. Knapp, F. Murray Also Present: C. Hafter, City Manager; D. Gravelin, Assistant City Manager; Chief D. Brent, Fire Department; B. Hoar, Public Works Superintendent; T. DiPietro, Stormwater Superintendent; J. Nadeau, CWD; M. Young 1. Budget Overview: Mr. Hafter said that he gave department heads guidelines that included no tax increase except for what voters had approved. Cuts were made mostly in the capital area. Mr. Hafter noted that this is not sustainable in the long run. Mr. Hafter also noted that some figures will be estimates because some entities (e.g., County Courthouse) are just starting on their budgeting process. In preparing a very tight budget, there are 3 options: A. Cut programs (Mr. Hafter said there will not be any large scale cuts without impacting essential city services) B. Cut personnel (some possible cuts have been identified and will be discussed in executive session. Mr. Hafter indicated that he did not recommend cutting personnel) C. Use some of the local option sales tax surplus - Mr. Hafter indicated that he recommended using approximately $400,000 of this money to offset any budget increase not approved by the voters. Mr. Hafter also noted that the city actual sales tax and rooms and meals tax receipts are over what was projected. The total increase in the operating budget is 2.85%. This includes the SAFER grant money approved by the voters. The budget as proposed does not include using any of the room & meals tax money for road paving. Mr. Hafter indicated that he does recommend doing this. Mr. Boucher said he was concerned that in the future, if sales tax money can't be used, the taxpayers will get "whacked." Mr. Hafter said that in the future, the economy will get better. The grand list is up only .66% this year, and that should improve. He felt this was a good year to use the sales tax reserve money. Mr. Hafter noted there is actually a 1.2% decrease in the health insurance costs; however, the budget is more because of underestimating last year. 2. Budget Review by Department: A. City Council: There will be no increase in City Council salaries. Mr. Boucher noted the city doesn't budget any money to maintain city-owned natural areas. He recommended using money from the Open Space fund for that purpose and for some signage. He noted that voter approval would be required to do this. Other members felt this makes sense. B. City Manager: Salaries in the City Manager's budget have been decreased to reflect the new City Manager hire. C. Fire Department/Ambulance: Chief Brent distributed a graph showing emergency services provided since 2004. He noted that the more growth that occurs in the city, the more calls the Fire Department receives. The Chief also distributed a list of possible cuts and his recommendations in regard to those cuts. He explained the increase in costs, specifically the "outfitting" of a firefighter. Some of the Department's gear is near the end of its 10-year lifetime and cannot be certified after that time. This includes turn-out gear and breathing apparatuses. Mr. Hafter recommended going to the voters for this gear next year. Chief Brent then explained the capital expense budget, which includes payment for the newest fire truck. The Chief said his "supplemental" budget requests include funding for hose replacement. There are no hoses in reserve, and 3 trucks don't have minimum equipment. He showed some couplings and explained their problems. Chief Brent said he feels that as of 1 July 2010, they should begin the process to buy a new ambulance. The existing ambulance cost $54,000, and the Chief estimated they could get about $10,000 for it. Mr. Boucher questioned whether more money should be put into the reserve account. Mr. Murray noted that interest rates will probably be going up in the future. Chief Brent said he believes ambulance rates should go up a little. He will come back to the Council to discuss this. The Department continues to enjoy a very good rate of payment from residents, insurance, and Medicare. Mr. Hafter added that feedback from the public is also excellent. D. Public Works/Parks: Mr. Hafter and the Council thanked Mr. Hoar for his service to the city. Mr. Hoar indicated there are not a lot of changes to the proposed budget. He felt they are cut back as far as possible without affecting services. He stressed the need to add more funding to the paving program. Mr. Hoar felt the idea of a revenue fund for money to replace equipment is excellent. He stressed that their equipment is not cheap - a $60,000 truck that was purchased 5 years ago would now cost over $100,000. With regard to specific projects, Mr. Hoar noted that San Remo Drive is set to go to bid. The LED crossings will also go to bid and will be installed in the spring. Mr. Hoar then explained how utilities are charged for cutting into city roads. He stressed that at some point, you can't keep putting asphalt on top of asphalt. He cited Spear St. as an example of the need for more extensive work. E. Storm Water: Mr. DiPietro said the Storm Water budget has no increases. They do plan to apply for grants for specific projects. The capital budget includes a 1-ton truck (which was approved in 2008 but wasn't purchased). It also includes a scanner/copier for all of Public Works. Mr. DiPietro then reviewed specific projects. Mr. Hafter noted that the Storm Water utility has the city so much ahead, and it was an excellent move to establish it. F. Water: Mr. Hafter reviewed the history of the city's Water Department. He said the current arrangement with CWD is very successful and has held down costs over the years. Mr. Nadeau said CWD serves all of Chittenden County except Burlington and Colchester Fire District #2. They have contracted with South Burlington since 1979. CWD maintains 945 hydrants in South Burlington as well as 5700 water meters and 95 miles of pipe. He indicated that the infrastructure is not getting any younger and represents only a very small percentage of the budget. This year, they will be directing money to replacement of the White St. water line. The estimated cost is $600,000 of which $300,000 will come from capital reserve. There is also an anticipated 3-4% increase in rates from CWD. Additional funds were added to hydrant replacement. Mr. Nadeau stressed that if infrastructure isn't maintained, it will fail. Under a new Vermont law, as of 1 January 2010, all service line brass must have no more than .25% lead. This will increase costs by 5-10%. Mr. Nadeau noted there are a record number of people who are not paying their water bills. Mr. Hafter directed attention to a chart comparing South Burlington's utility user rates to the rest of the county. He noted that South Burlington will be the cheapest by the end of the year. In looking at what might be cut in order to reduce the budget, Mr. Nadeau indicated: A. Hydrant replacement B. Distribution system replacement C. Water Meter replacement He did not recommend any of these. G. General Ledger, Payroll: Mr. Gravelin said the budget includes additional money for computer services (anti-virus protection, etc.). He noted that a new tape back-up is needed. Mr. Gravelin also indicated he the City and School District will be getting together to see if there are some services they can share. H. Assessing & Tax Department: Mr. Gravelin noted that reappraisal costs will be paid off the year after next. He also noted that the additional help in the Tax Department has worked out extremely well. Ms. Dooley suggested checking into the CCTV "clickable meeting agenda." She felt there will be a cost for this that is not included in the proposed budget. As there was no further business to come before the Council, the meeting was adjourned at 8:45 p.m. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.