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HomeMy WebLinkAboutMinutes - City Council - 01/05/2012CITY COUNCIL 5 JANUARY 2012 The South Burlington City Council held a budget work session on Thursday, 5 January 2012, at 7:00 p.m., in the Conference Room, City Hall, 575 Dorset St. Councilors Present: S. Dooley, Chair; M. Emery, J. Knapp, P. Engels, R. Greco Also Present: S. Miller, City Manager; R. Rusten, Deputy City Manager; Chief D. Brent, Fire Department; P. Conner, Director of Planning & Zoning; J. Rabidoux, Public Works Director; T. Hubbard, Recreation Director; M. Young 1. Agenda Review: No changes were made. 2. Comments & Questions from the Audience, not related to Agenda items: No issues were raised. 3. Budget Workshop to Review FY13 Budget: Mr. Miller suggested that instead of a line-by-line review, Council members ask questions or make comments on what interests them. Debt Service: Mr. Rusten showed a plan extending out to 2017. The intent is to avoid having huge “spikes” up or down. Mr. Rusten noted that some debt has been reduced or eliminated by paying off amounts off and avoiding further interest charges. He also noted that no new debt is proposed in FY 2013. The exception to that may be the City Hall building, depending on what an inspection of the building turns up. Mr. Rusten then showed how money will be set aside for the next fire truck and ambulance in FY 2014 and 2015. The new Project Manager will look at the extended plan and make it more expansive. The intent is to have a 5-year plan for vehicles and major equipment. Mr. Miller said there is a possibility of some new debt for water meters. He said the ideal situation is to pay cash to avoid interest charges, but that results in a higher tax rate now to avoid paying more in the future. Eventually, it keeps the tax rate low. Members liked this approach. Mr. Miller also urged members not to consider taking money from a department’s budget if it hasn’t used that money in a given year. Mr. Rusten echoed this request and said the Council needs to look at a department over a period of time. Ms. Emery asked if Department Heads are asked to identify items that might come out of a budget if the voters turn the budget down. Mr. Miller said they are not. They are asked to present a budget that reflects what the community wants/needs. He stressed that the administration believes in this budget and would have to work very hard and quickly if it is voted down. Ms. Emery asked if the budget is what the city “ideally” wants or what is “good enough.” Mr. Miller said they are not “building a dream house.” They are building a foundation for the future. Mr. Engels asked how money is held from year to year. Mr. Rusten said it is held in a reserve fund. He added that they will be asking for $190,000 for a capital reserve fund. Mr. Miller also noted they are not budgeting income they do not expect to get. Essentially, they are eliminating accumulating deficits across all funds. Mr. Young asked about the total debt service. Mr. Rusten said for FY12 it is $2,692,306.00 and for FY13, it is $2,818,800.00. The possibility of new water meters is not included in the FY13 figure. Mr. Young commented that this is a lot of debt. Mr. Miller explained that borrowing money for the pension fund is saving hundreds of thousands of dollars. He added that this budget reflects what people have been saying over the past year. Mr. Rusten noted an increase in phone costs. He said there was no decrease in costs when the Police Department left the City Hall building, but there was a $15,000.00 increase for the new Police facility. Mr. Rusten also noted that the city has been spending $5,000-6,000 for a maintenance contract, which they propose to end. He said they will also look at the budget and see if there is anything more that can be reduced for phones. He also added that the next thing they will be looking at is cell phones. Regarding legal services, Mr. Miller said they are budgeting $137,000.00 ($35,000 for Planning & Zoning; $42,000 for a retainer, and $60,000 for legal labor suits). They are also beginning to consider the possibility of an in-house counsel. There would still be a need for some special services for litigations. That discussion may take place next year. Mr. Miller noted that Interim Zoning could cost $280,000 a year, and that is not reflected in this budget. Ms. Greco asked how long the City Hall entryway improvements will be on hold. Mr. Miller said they got a 6-month extension and will have a firm come in and look at the building. He felt they should know within a month if the building is usable/savable. Mr. Engels asked about the rental possibility at the Police Station. Mr. Miller said they are moving slowly toward a rental, but if City Hall is not usable, offices may have to move to that facility. Ms. Emery asked about the computer replacement policy. Mr. Miller said there is no “policy” as yet. A number of computers need to be replaced, and a new service is needed to integrate the whole city. Mr. Rusten added they are working with Tech Root to identify what has to be replaced immediately. Mr. Miller stressed that the city is “woefully behind” with ITech. All servers need to be replaced, and they have been “putting bandaids” on things. Mr. Knapp asked if the $25,000 for the “sick bank” is a total. Mr. Rusten said the total is $99,000. Mr. Young asked about the previously mentioned $6,000,000.00 deficit. Mr. Miller said that was the auditor’s cumulative deficit across all funds. He added that if the City Council adopts the “write­off” plan, this budget will wipe out that $6,000,000.00 deficit. The City expects to see $1,500,000 from bills that should have been sent out and now have been. Mr. Miller said the “write­off” is a very tough call, and they will test it out with the auditors. The city feels recovery of that money is very unlikely. It is also very “backward looking.” Staff feels they have found the money that is out there. Ms. Emery asked the Fire Chief whether films and books were educational. Chief Brent said they are training materials. Ms. Emery also asked about “doctor services.” The Chief said they have been relying on a doctor in the community and felt it was time to provide some payment. Mr. Miller noted there will be a new Fire Inspector position. The position will cost about $100,000 and the city hopes to take in $200,000 from plan reviews, condo inspections (which are mandated by lending institutions), etc. The State has asked municipalities to take over this function, and it is a better service to citizens. 4. Executive Session: Ms. Emery moved that the Council meet in executive session to discuss personnel and contract negotiations and to resume regular session only to adjourn. Ms. Greco seconded. Motion passed unanimously. 5. Regular Session Council returned to regular session. As there was no further business Mr. Knapp moved for Council adjournment. Ms. Dooley seconded. Motion passed unanimously. Council adjourned. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.