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HomeMy WebLinkAboutMinutes - City Council - 01/04/2018 SPECIAL CITY COUNCIL – BUDGET 4 JANUARY 2018 The South Burlington City Council held a special budget meeting on Thursday, 4 January 2018, at 6:30 p.m., in the Conference Room, City Hall, 575 Dorset Street. MEMBERS PRESENT – H. Riehle, Chair; M. Emery, P. Nowak, T. Barritt ALSO PRESENT – K. Dorn, City Manager; T. Hubbard, Deputy City Manager; D. Kinville, City Clerk; P. Conner, Director of Planning & Zoning; J. Rabidoux, Director of Public Works, J. Murray, Librarian; H. Reed, Recreation Department; I. Blanchard, Project Manager; Chief T. Whipple, Police Department; Chief D. Brent, Fire Department; B. Britt, B. Nowak Ms. Riehle noted that due to the inclement weather, the public is being offered the opportunity to phone in any comments they may have. 1. Budget Overview: Mr. Hubbard noted that in October the Council had said they would be comfortable with a tax rate increase of about 3%. The budget being presented tonight results in a 3.44% tax increase. It keeps the current level of service, meets all contractual obligations, supports “other entities,” and continues to support the Affordable Housing Trust Fund. Positive revenue factors include: a ¾% increase in the grand list (about $221,000), use of grant monies and impact fees, and allocations from approved bonding. Negative revenue factors include a decrease in fire inspections revenues of $85,000 and electrical inspection revenues of $25,000, a decrease in Police Department impact fees of $15,000, and other non-discretionary items. The increase in public safety salaries (per contract) is $166,000. The increase in non-public safety salaries (per contract) is $70,000. There is a 12% increase in health insurance, and a $290,000 pension contribution increase. Mr. Hubbard noted that the Council had increased the level of payout for someone leaving the city (for unused benefits) from $10,000 to $25,000. Mr. Hubbard then reviewed some of the items that were cut or decreased from the originally proposed department budgets, including: proposed new positions, level funding of the sick bank, proposed stabilization fund contribution, stewardship (above level funding), paving, Police Department one vehicle, designated and undesignated reserves (reduced), and Social Services (reduced). The estimated cost to taxpayers with a 3.44% tax increase would be: Single-family home valued at $366,000 $57.14 Condo valued at $231,000 $39.33 Mr. Hubbard noted this was one of the toughest budgets to put together and there is a concern from managers for the future of their departments. Although the current level of service will be maintained in the short run, this is not sustainable. Without significant changes in education funding, there will be serious concerns for municipal funding. The City is about to go into negotiations with all three bargaining units. Mr. Hubbard also noted that auditor Ron Smith will present the audit in February. Members will have the audit by the end of January. Ms. Riehle asked the City Manager to share what is known about the School District budget. Mr. Dorn said the Governor is projecting an 8% increase; however, the currently proposed South Burlington school budget shows a .68% increase and a tax rate increase of 1.74%. There is also an anticipated bond issue of $950,000 for facilities stewardship. The low increase is attributed to less than 1% increased spending and an increase in the equalized student populations, including tuition students. Representatives from City departments then presented their proposed budgets as follows: a. Community Library: Mr. Hubbard noted a $2400 reduction in computer funding. He also noted that the move to the new location was basically ‘a wash.” The proposed budget will allow the Library to do what it has done in the past. The hope is to have a new Children’s Librarian on board soon. b. Public Works: Mr. Rabidoux said in preparing the budget they tried to trend based on the experience of the past 3 years. He noted that the budget being presented is $75,000 less than the manager-approved budget. The Department is forestalling purchase of a frontline plow. They will not trad in the existing vehicle. The hope is that it will be able to do the work. This will save about $25,000. The Department has also identified another brand of sidewalk plow at a much lower price. It will do about 80-85% of what the more expensive plow will do. This saves about $50,000. Mr. Rabidoux cited the increasing problem in checking the “yes” box on Act 250 permit paperwork to indicate that the department can provide adequate services. He added that the budget message this year is that they will not be able to keep people happy if this continues over the next few years. Mr. Rabidoux noted that one of the positions eliminated was the Bike/Ped Coordinator. He said there is a groundswell in the community to add more bike/ped paths. They will not be able to meet this. Mr. Rabidoux said he would like to increase line-striping and bike lanes as a safety issue. Mr. Britt asked what percentage of the budget is personnel related. Mr. Rabidoux estimated 35-40%. Ms. Nowak asked about the use of impact fees. Mr. Rabidoux said they can be used for some vehicles. He suggested the possibility of a “public service impact fee.” Ms. Emery felt the reduction in the paving budget was also a safety concern. Mr. Barritt suggested the possibility of not doing as much sidewalk plowing in the less urban areas where children don’t walk to school. Ms. Riehle noted that in some communities the sidewalks are the homeowners’ responsibility. She suggested possibly having that discussion this year. Mr. Dorn suggested a 3‐month process for those discussions that would include “political factors. He indicated that staff has been notified of that pending process. He stressed that the sustainability issue is primary in this regard. Mr. Rabidoux then noted that increased in the enterprise funds would be covered by rate increases. He specifically noted an installation to allow for adequate water pressure in the Southeast Quadrant. The cost for this will be offset with a tiered impact fee for developments. Mr. Rabidoux explained that the Department is getting additional revenues by providing services to other communities (e.g., Shelburne). He also explained the “pass‐through” procedure for grant monies. Mr. Britt cited the importance of adding additional money for road striping. c. City Clerk: Ms. Kinville noted the City Clerk’s budget is oriented to service/supplies and is pretty much the same from year to year. The projection for revenues is down somewhat due to fewer late fees. Ms. Kinville advised that city clerks are looking to restructure recording fees to cover actual costs and to recapture more up front. This will be done legislatively. With regard to expenses, Ms. Kinville noted the additional expense because there will be at least 3 elections this year. d. Recreation: Ms. Reed said they are working with the School District to provide some of the elements in the schools’ summer camp programs. The Youth Sport Program is healthy and strong, but they are struggling with the adult programs due to a lack of indoor space. Ms. Reed cited the “super successful” Bikes and Bites events and the City Fest. She said that this year, revenues and expenses will equal out. They are hoping for full sponsorship of Bikes and Bites. If that does not happen, the events will be pared down. Red Rocks Park will be open from Memorial Day through Labor Day. There will now be ADA equipped port-o-lets in every city park (quite expensive). Ms. Reed noted that they are trying to serve the Odell population which struggles during the summer months. They had hoped to bring a 6-week recreation/nutrition program to that site, but this budget does not include that. Mr. Barritt cited the lack of recreation space at Odell and noted that the DRB is more sensitive to that in new developments. Ms. Emery asked about programs for children who don’t go to the “School’s Out” programs. Ms. Reed said there are still specialty half-day and full-day programs (e.g., Wheeler Park), and they anticipate having 25-30 of these. One issue with indoor programs is that the only structure they can use is the Middle School. There is also a transportation issue of getting children to the camps. Mr. Barritt cited the room for growth in Adult Education and asked if the Recreation Department has resources for this. Ms. Reed said the issue is the lack of facilities. Mr. Barritt suggested approaching the business community for spaces. e. Human Resources: Mr. Hubbard briefly reviewed the increases including health insurance and pension. f. IT Mr. Hubbard cited the great job Al Reed did in getting the Library IT up and running at the UMall location. The budget shows a slight increase in hardware and software even though they will be replacing only half of the machines Mr. Reed would like to replace. They are behind in the 5-year replacement cycle. In addition, software contracts continue to go up in cost. Mr. Barritt stressed that everything depends on IT. g. Planning and Zoning: Mr. Conner offered kudos to Al Reed for what the new computers can do. Mr. Conner noted that the $25,000 budget under special projects is matched by revenues. He also cited the income from the landfill solar project that will improve the energy footprint. The city will be able to work with partners to measure success of sustainable efforts and public outreach. Items that were cut from the originally proposed budget include: bike/ped project engineering, scanning of documents for DRB files ($40,000-45,000 range), transition to digital work-flow program ($60,000). They are looking for alternate funding. Ms. Emery asked where they stand regarding permitting fees. Mr. Conner said the city is right in the middle. h. Police Department: Chief Whipple that fleet replacement has been reduced by one car. This will be concern over time. In addition, a civilian staff person to help with building functions is not in the budget. There are no new sworn officers. The Chief noted that only 18% of the budget is “stuff” as opposed to personnel/benefits, so there is little room for cutting. There is, however, an increase in vehicle maintenance as the fleet is getting older and in need of more repairs. He, too noted this is not sustainable over time. Ms. Emery asked if there is still an unfilled position. The Chief said there are 4 (they are in the budget), but one will be filled next week with a new officer coming on board. The Chief thanked staff for keeping those open positions in the budget. He also advised that they have a donation for a new “canine officer” and are searching for a “candidate.” The Chief cited the need to “sell” the public on joining the Police Force. i. Fire/Ambulance: Chief Brent said he is not troubled by what he pays in taxes. He felt the public gets a “heck of a bargain” with the great city staff. The Department is now averaging 13 responses a day, and multiple/consecutive calls are troublesome. He noted that on Monday he will be up to full staff. The Chief then cited what they will not be able to fund with the proposed budget, including: Vaccinations for job applicants, air packs (though they will have to find money to pay for this as it is required by law), and the second half of the winter jacket replacement. He, too, voiced the inability to sustain services without replacements and upkeep. He cited the need to review the CIP regarding replacement schedules. Ms. Nowak asked if the overtime projection is realistic. The Chief felt that with a full staff it is. Ms. Nowak asked if Narcan is still provided by the State. The Chief said it is. j. Finance: Mr. Hubbard said the budget is almost identical to last year. This is the third year of the Auditor’s contract. Options include rebidding for one or two additional years or going out to bid for a new contract. The last time the contract was bid, there were two bids submitted, and Smith was half the cost of the other bidder. k. Community Development: Ms. Blanchard said the budget focuses mainly on special projects. It oversees grants/grant applications. She cited partnering with businesses. She also noted there are reserve fund for the city’s share of City Center projects. The budget also supports project “soft costs” needed to get the projects up and running. This allows the city to look ahead to projects without having to borrow money. Ms. Blanchard noted that the proposed contribution to the City Center reserve fund was decreased by $110,000 for this budget. Mr. Dorn noted that will have an impact on projects. Ms. Riehle was disappointed with this budget decrease. Ms. Blanchard said in the future they would like to begin a program of public art. 2. Possible Adoption of the FY19 City Budget: Ms. Emery said she didn’t think it was reasonable to go to a 3% tax increase now that the School District is coming in at such a low level. She suggested the following additions to the proposed budget: A. IT hardware -- $6,000 B. Police Cruiser -- $35,000 C. Road striping -- $10,000 D. Paving -- $25,000 E. Fire Department Air Packs and Winter Jackets -- $2500 and $4000 F. TIF Reserve Fund -- restore the $110,000 She hoped these increases would come in with a tax increase under 3.85%. Ms. Nowak said she did not dispute Ms. Emery’s contention, but she noted that the School District is also going for a $950,000 bond issue. The City also does not know what the result of bargaining for the 3 contracts will result in. In addition, Ms. Nowak stressed the need to concentrate on increasing the Grand List. She cited the number of households with no children and with fixed incomes. Ms. Emery said the Council has been sensitive to budgets for a number of years, and she felt the public expects the maintenance of services. Mr. Barritt cited specific paving issues (including South Village intersection). He also noted that although the economy is doing well, employees are not getting wage increases. He also stressed that the low school budget is still only a draft. Ms. Riehle cited the minimal costs for the air packs and coats and said she was very uncomfortable with how little reserve funding the city has. She suggested funding a half person to help with increasing the Grand List. Ms. Nowak felt the public needs to know that the city is doing more than just raising taxes and is looking for resources/revenues from other sources. Mr. Dorn said there is also a need to be mindful of new services needed in City Center for which there will not be tax money for 20 years. There will, however, be local option tax money from some of that development. Ms. Nowak asked about issues at UMall and the value of that property for tax purposes. Mr. Dorn said the city did not suffer from that decrease in value. Mr. Hubbard said a quick calculation shows a 5.01% tax increase from all the Ms. Emery has proposed. Ms. Emery said that is not do-able. Members agreed to delay approval of a budget until the 16 January meeting. Ms. Riehle will attend that meeting via phone. She asked that staff provide figures for the results of adding the $110,000 back to the City Center Reserve Fund and $21,000 to the undesignated reserve. Staff will provide figures on what budget additions would mean to the average taxpayers. As there was no further business to come before the Council, Mr. Barritt moved to adjourn. Ms. Emery seconded. Motion passed unanimously. The meeting was adjourned at 9:52 p.m. Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.