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HomeMy WebLinkAboutMinutes - City Council - 03/05/2012TOWN MEETING 5 MARCH 2012 The South Burlington City Council and School Board held Town Meeting on Monday, 5 March 2012, at 7:00 p.m., in the Cafeteria, Frederick H. Tuttle Middle School, 500 Dorset Street. City Council Members Present: S. Dooley, Chair; M. Emery, J. Knapp, P. Engels, R. Greco School Board Members Present: R. Cassidy, Chair; M. Lalonde, E. Fitzgerald, D. Bugbee, J. Beatty Also Present: S. Miller, City Manager; R. Rusten, Deputy City Manager; D. Young, Superintendent of Schools; J. Stewart, School District; D. Kinville, City Clerk; P. Conner, Director of Planning & Zoning; Chief T. Whipple, Police Department; Chief D. Brent, Fire Department; candidates for City Council and School Board seats; members of PACT; P. & B. Nowak, B. French, M. Young, F. Kochman, R. Stevens, R. Hubbard, other members of the public 1. Reading of the Ballot Articles: Ms. Dooley read the Ballot articles. 2. Presentation of proposed City budget for FY2013 and Town Meeting Day ballot items: Mr. Miller said the proposed FY2013 city budget has an increase in expenditures of 7.36% ($1,300,000) and an increase in non-tax revenues of $840,000. This results in a 2.1 cent increase. The user fees for water will increase by 2.8%. There is also a special water bond issue from CWD which will be voted on by all CWD municipalities. The fees for sewer will increase by 1.5%. The city is building reserves for future capital projects. There is no rate increase for stormwater. Mr. Miller then reviewed the major general fund increases in expenditures including: Mr. Miller noted that the increase in Library staffing will result in the Library hours being increased from 49 to 58 hours a week. This budget also restores a staff position in the highway department. The city will be upgrading its out-of-date technology over the next few years. Mr. Miller noted that future purchases of vehicles (e.g., police cars, etc.) will be made in cash instead of borrowing. This will save money on interest. This budget includes a dramatic increase in paving projects, about $150,000. An additional $100,000 will be allocated to the city's pension fund. Mr. Miller noted that the city continues to address financial difficulties. Non-property tax revenues that will help in this regard include a new Fire Inspector position, highway impact fees, a highway paving grant, and asset forfeiture (Police Department). A member of the public asked if there are any outstanding lawsuits against the city. Mr. Miller said there are 3 which are related to a former police officer. The city's liability in these cases will be limited to the insurance deductible ($2500 per claim). The city has hired an attorney to monitor the defense. A members of the public asked what the new CWD pipe will do and whether the city saved money this year because of the very low snowfall. Mr. Miller said the CWD project consists of 2 transmission mains which will result in serving most clients from two directions. With regard to snow removal/savings, Mr. Miller said the answer is both yes and no. There were a lot of small events that resulted in icing. This requires dealing with intersections and uses a fair amount of salt and sand. The good side is that with less use of equipment, there were not many breakdowns and the use of fewer snow plow blades. Mr. Miller said it is better to have a few big storms than a lot of little events. Mr. Young asked about the possible rental or use of the vacant space above the Police Station. Mr. Miller said the city would like to rent that space and will if it can. There is a possibility that if the mold problem in City Hall can't be fixed, city offices could move to some of that space. Mr. French, who lives on Anderson Parkway, said it is very hard to get around when it snows and the sidewalks aren't plowed. Mr. Miller noted that last year when there were heavy snows, two of the sidewalk plows were out of commission. The city now has a new sidewalk plow and will replace another one this year. This will result in improved service. Mr. Miller added that with all the city development in the past 10 years, no new sidewalk plowing routes have been added. After the equipment is gotten into shape, there will be discussion on whether to add another route. Mr. Nowak asked if the impact fees that were mentioned are new or existing. Mr. Miller said the city is using some of the highway impact fees to help fund the Route 2 project. There have been no new impact fees in recent years. The city will, however, be looking at these to see if they cover all that needs to be covered. Mr. Miller explained that impact fees can be used only when development causes additional need for services. A member of the public asked who pays the fire impact fee. Mr. Miller said it is paid by anyone who develops a piece of property, residential or commercial. This cost is then passed on by the developer to the buyers in the development. Mr. Young asked about the note in the auditor's management letter regarding a deficit that is being written off. Mr. Miller said the auditor has endorsed the city's plan for dealing with some of the prior deficit. Some things can't be written off (e.g., impact fees, donations to the Library, etc.). In order to fund some of these things, the city has identified about $1,000,000 in additional billing, mostly related to the Airport Parkway project. These bills were never submitted to the state. The city has been told that $400,000 will be coming. This is taking longer than usual because of the destruction of state records by tropical storm Irene. Any money collected beyond the impact fees and donations will go into the general fund or to utilities. Mr. Rusten added that in the past money was collected from a variety of sources and was used for things other than what it was designated for. At times, it looked like the city had a lot of money when in reality it did not. To address this, more bank accounts have been created so it won't be easy to move money from "one pot to another." In addition, budgeting wasn't being done effectively to cover expenses. Systems have now been put in place to prevent this from happening again. Mr. Rusten noted that with regard to the auditor's management letter, the 23 deficiencies identified in the previous management letter have been reduced to 8 this year. Mr. Stevens asked why the pension fund is being overfunded. Mr. Miller said there is concern with market fluctuations that may cause the fund to go below 100%. Mr. Kochman asked about the constraints on investments for the pension fund and who controls these investments. Mr. Miller explained there is a Pension Advisory Committee which works with actuaries and pension fund managers to develop a plan for investment of pension funds. The City Manager is the Pension Fund Manager as well. If there is disagreement about investments, the issue goes to the City Council. Mr. Rusten added that a presentation was made to the Pension Advisory Committee when there was a market "meltdown" a few months back. That Committee is also getting training in this area. Mr. Engels noted there is also a liquidity requirement because employees are retiring. Mr. Miller noted that a number of employees and one bargaining unit have been moved to a VMERS plan, which has resulted in a savings to the city. He also noted that investment and annual reports are available on the city's website. Mr. Miller noted that the charter changes voted by the city in the last election will result in voters voting until a budget is passed. He thanked Legislators for getting this through the legislative process in record time so it could be in effect for this vote. The Legislature also passed the other charter change which means the city won't have to reappraise property every three years. A member of the public asked how things are going with the Airport. Mr. Miller said there are a number of issues. The Airport has not provided the city with noise data as they were required to do. They have also applied to demolish 54 homes this year, and there is no legal way to deny this application. Mr. Miller said the city has basically cancelled the 3-part agreement with the Airport. The Airport has also been billed for stormwater charges. The FAA is looking to the issues. Mr. Miller added that the city will continue to assess the Airport as it feels the Airport should be assessed. The city doesn't expect to collect any of the "fees for services" for the years they have not been paid. Ms. Dopp asked if there is any likelihood the city will collect the stormwater fees. Mr. Miller said the city has billed them, and they have a right to apply for certain credits. The Superintendent will make that determination. If the Airport isn't happy, they can appeal. Mr. Miller stressed that the city is trying to be sure people are paying what they should. 3. Presentation of Proposed School budget for FY2013: Mr. Cassidy said the total school budget for FY2013 is $42,106,183., which represents a 3.74% increase. Highlights of the budget include expanding the one-to-one laptop program to grades 7 and 8, an increase in special ed students from 241 to 265, a $60,000 savings in custodial services, and bus route consolidation. Central School will get a new roof and there will be sidewalk, curb and driveway paving at the Middle School. Enrollment has been stable, and may go up a small number this year. However, the equalized student count on which state funding is based is down a bit. Supt. Young explained how education is funded. He also noted that 60% of the school budget goes for wages and salaries, 20% for benefits, and 20% for other costs. The School District currently has 432 employees plus some outside contractors. Mr. Shaw noted that Governor Shumlin was urging level funding. Mr. Cassidy said that is not possible under existing contracts without cutting deeply into program. A member of the public asked if the decrease in secondary enrollment is a trend. Mr. Young said it is a state trend but is not a typical pattern for South Burlington. Mr. Cassidy noted the number of tuition students coming from the Champlain Islands. Ms. Dooley asked why the residential tax rate is so much higher than the non-residential. Mr. Stewart explained that the non-residential rate is the same across the state. This rate is then divided by the CLA. It helps to create a "level playing field" for businesses and rental units. A member of the public asked what difference it makes if voters vote on a budget if the state sets the rate. Mr. Cassidy said the school district determines the per pupil spending. A member of the public asked whether the district gets any money to subsidize special ed costs. Mr. Cassidy said there is a lot of federal and state subsidy. He did not know why there was an increase in the number of special ed students for next year. Supt. Young said there are individuals in need of support, and that number is increasing. A member of the public asked if it is possible that the better the job the schools do with special ed, the more students they will get. Mr. Cassidy said he thought not. He stressed the need to do what is appropriate for all students. 4. Discussion on Advisory Ballot Article: Ms. Dooley read the article and explained that it supports a Constitutional amendment denying corporations "single person" status. The article was presented to the City Council on 25 January by petition, and the Council voted to place it on the ballot. A member of the public asked the cost of a constitutional amendment. Mr. Hubbard said the question is the cost if there is no amendment. He added that the way money is coming into the political system (96% of Americans don't give any money), it is tipping legislation to "move money around the plate," and the ordinary citizen pays for this (e.g., the cost of medications). Mr. Hubbard added that 51 Vermont communities will be voting on this. Ms. Dooley then recognized Councilors Emery and Knapp who are completing their terms on the City Council. As there was no further business, Ms. Dooley moved to adjourn. Mr. Knapp seconded. The Town Meeting was adjourned at 8:20 p.m. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. TOWN MEETING 5 MARCH 2012 The South Burlington City Council and School B'oard held Town Meeting on Monday,S March 2012, at 7:00 p.m., in the Cafeteria, Frederick H. Tuttle Middle School, 500 Dorset Street. City Council Members Present: S. Dooley, Chair; M. Emery, J. Knapp, p, Engels, R. Greco School Board Members Present: R. Cassidy, Chair; M. Lalonde, E. Fitzgerald, D. Bugbee, J. Beatty Also Present: S. Miller, City Manager; R. Rusten, Deputy City Manager; D. Young, Superintendent of Schools; J. Stewart, School District; D. Kinville, City Clerk; P. Conner, Director ofPlanning & Zoning; ChiefT. Whipple, Police Department; ChiefD. Brent, Fire Department; candidates for City Council and School Board seats; members ofPACT; P. & B. Nowak, B French, M. Young, F. Kochman, R. Stevens, R. Hubbard, other members ofthe public 1. Reading of the Ballot Articles: Ms. Dooley read the Ballot articles. 2. Presentation of proposed City budget for FY2013 and Town Meeting Day ballot items: Mr. Miller said the proposed FY2013 city budget has an increase in expenditures of7.36% ($1,300,000) and an increase in,non-tax revenues of$840,000. This results in a 2.1 cent increase. The user fees for water will increase by 2.80/0. There is also a special water bond issue from CWD which will be voted on by all CWD municipalities. The fees for sewer will increase by 1.50/0. The city is building reserves for future capital projects. There is no rate increase for stormwater. Mr..Miller then reviewed the major general fund increases in expenditures including: Capital Improvements $190,000 Undesignated reserve 50,000 Sick leave reserve 99,600 Increase in contingency fund 178,875 Other entity payments 44,000 Increased Library staffing 70,000 Pension Fund Administration 56,000