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HomeMy WebLinkAboutMinutes - City Council - 01/23/2023 - Steering Committee MinutesSPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 The South Burlington City Council held a special meeting followed by a Steering Committee meeting on Monday, 23 January 2023, at 6:30 p.m., in the Auditorium, 180 Market Street, and by Go to Meeting remote participation. MEMBERS PRESENT: City Council: H. Riehle, Chair; M. Emery, T. Barritt, Sen. T. Chittenden, M. Cota; J. Baker, City Manager; School Board: Dr. T. Childs, Chair; C. Tillinghas; V. Nichols, Superintendent of Schools ALSO PRESENT: C. McNeil, City Attorney; I. Blanchard, Community Development Director; P. Conner, Director of Planning & Zoning; M. Machar, Finance Officer; T. Jarvis, School District Director of Finance; J. Slason, L. Bailey, L. Young, E. Fitzgerald, D. Bugbee, C. Shaw, A. Moore, M. Ostby, C. Trombly, K. Boozan, K. Jarvis, P. Taylor CITY COUNCIL SPECIAL MEETING: 1. Instructions on exiting building in case of emergency and review of technology option: Ms. Baker provided instructions on emergency exit from the building and reviewed technology options. 2. Additions, deletions or changes in the order of Agenda items: No changes were made to the Agenda. 3. Comments and questions from the public not related to the agenda: Mr. Shaw asked the Council to find a way to honor retiring Legislator Ann Pugh for her 30 years of service to the community. Ms. Moore spoke to the need for better lighting and a reduced speed liming in the Dorset Street area near the schools. Her son suffered a traumatic brain injury when he was struck by a vehicle in that area. Ms. Moore noted students frequently go through that intersection after dark when they have participated in after school activities. She said it is not a question of"if" there will be another terrible accident there but "when." Ms. Riehle noted this is an item later on the agenda. SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 2 4. Consent Agenda: a. Approve and Sign Disbursements Ms. Emery moved to approve the Consent Agenda as presented. Mr. Barritt seconded. Motion passed unanimously. 5. Open Public Hearing: Hold a public hearing on an ordinance to implement Education Impact Fees: Ms. Emery moved to open the public hearing. Mr. Barritt seconded. Motion passed unanimously. Supt. Nichols said this proposed ordinance is about finding a space solution to over-enrollment at Marcott and Orchard Elementary Schools. She noted that city growth is expected to continue for at least 5 years. The proposal is to fund Zero Emission Modules (ZEMs) at the two schools. The School Board accepted this proposal with no funding in place. The Board then worked with Mr. Slason on a plan to tie school impact fees to the ZEMs project. Impact fees would be phased in, with 50% of the fees collected from July 2023 and 100%from January 2024. It is anticipated that 90% of the cost of the ZEMs will be collected from these impact fees. The ZEMs could also be used at the Middle and/or High School in the future. Mr. Conner explained that the city has the authority to establish impact fees. These fees would be imposed on new dwelling units and on the addition of bedrooms to existing homes. The proposed ordinance has a stipend fee based on the number of bedrooms in a unit. Mr. Conner noted that any unit that qualifies as perpetually affordable housing is exempt from the impact fee. The fees will be collected by the city and transferred to the School District. The ordinance includes an administrative fee for all impact fees. Public comment was then solicited. There was no public comment. Ms. Emery cited the needs for the ZEMs. Mr. Cota agreed and asked three questions: 1) Is there a sunset based on growth? Mr. Conner said the ordinance would sunset upon collection of fees needed for the project. 2) Do the numbers account for students being tuitioned. Mr. Slason said they are focusing only on resident students as the number of tuition students fluctuates. 3) How will the phase in work. Mr. Conner said fees will be charged at the time of issuance of a zoning permit. The SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 3 recommendation is that no fee be charged through the end of June 2023. From 1 July 2023, the fee would be 50% at the issuance of a zoning permit. From 1 January 2024, the full fee would be in effect. Ms. Bailey asked why not charge the fee on any home, not only new ones. Mr. Slason said impact fees apply only to new construction as they cannot justify an old home which is already paying into the system. The fee is to compensate for the new burden on the school system. Ms. Bailey noted she could sell her home which has no children in the school system to a family with children. Ms. Fitzgerald asked if there are any other impact fees that have the same exemption for affordable housing. Mr. Conner said there are. He noted that all impact fees follow the same rules and sunset when a project (projects) tied to the fee is completed. Ms. Riehle noted that the city has received no emails from developers opposing this ordinance. Ms. Emery said she received one phone call. Ms. Riehle then moved to close the public hearing. Ms. Emery seconded. Motion passed unanimously. 6. Possible action on an ordinance to implement Education Impact Fees: Ms. Emery moved to approve the ordinance to implement Education Impact Fees as presented in this meeting's packet. Mr. Barritt seconded. Motion passed unanimously. Ms. Baker noted that while the ordinance is not on the upcoming ballot, the bond for the ZEMs is. Mr. Slason reiterated the expectation that 91% of the cost of the ZEMs will be recouped through the impact fee. STEERING COMMITTEE MEETING: 7. Agenda Review: Additions, deletions or changes in order of agenda items: No changes were made to the agenda SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 4 8. Comments & Questions from the public not related to the Agenda: No comments or questions were presented. 9. FY24 School Budget and bond vote: Presentation of the proposed FY24 School Budget and bond vote: Mr. Jarvis stressed that the problem is that at this time of the year, the School District doesn't have all the information needed because the Legislature doesn't finalize numbers until after the March election. What is being proposed at this time is a 7.1% increase over last year's budget. That represents an 11.27% increase in net education spending per equalized pupil. Mr. Jarvis noted that last year they had a $2,000,000 surplus of fund that could be spent during COVID. That is no longer the case. Mr. Jarvis then showed a pie chart of where school funding goes. The highest percentage is for salary and benefits. All three unions are currently in negotiations. 65% of the salary money goes to teachers with the balance to coaches, administrators, maintenance, bus drivers, support staff, and substitute teachers. Factors that impact the FY24 budget include: a. Inflation —though there are signs that this is softening, the number is still high b. Negotiations c. A 12.5% increase in health insurance d. Labor shortage e. Deferred maintenance f. First year debt associated with the bond Revenue issues include: a. The $2,000,000 that is no longer available b. ESSER funding to offset the pandemic is mostly used up c. The Tax Commissioner's letter which anticipates a rise of 8.5% d. Yield increased by an additional 16.2% (which is very high) e. The equalized pupil count of 2,559.93 f. The CLA at 92.97 which is down from 100.99 in FY23 SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 5 Ms. Baker noted that the CLA issue is a problem state-wide. Reappraisal companies are booking 3-4 years out. The State is looking at a new method of doing reappraisals. Mr. Jarvis then showed a graph of staff level trends. He noted the skewing in FY23 due to the influence of ESSER funds. He also noted that there are students with specific needs for which they do not have funding. In an effort to get the budget down, the decision was made to cut 24 FTEs. Mr. Jarvis noted the proposed tax rate is still the 44th lowest in the state though it is hard to compare South Burlington with anyone else. Mr. Jarvis showed a graph of Homestead Tax Rate Comparison with Neighboring Districts in FY23. South Burlington had the lowest compared to neighboring towns. Supt. Nichols then reviewed the budget priorities and approach as follows: a. The budget meets student needs b. The budget supports Act 173 requirements c. The budget addresses chronic issues in two elementary schools with the ZEMs d. The budget prioritizes facilities stewardship to address deferred maintenance Proposed ESSER funding for FY23 will provide one Student Engagement Coordinator, one Math Interventionist and .4 FTE Art at the High School. Proposed additions to the local budget include: a. .5 FTE Communications Coordinator b. 3.0 FTE Math Interventionist (1 at Orchard, 1 at Chamberlin, 1 at Tuttle) c. 1.0 Special Ed Coordinator (to support elementary and middle school) Ms. Nichols noted there is a 5% reduction in the overall operating budgets of each school and a reduction of the proposed facilities operating budget. 8 of the open 28 requisitions currently unfilled have been closed. They have also modified the delivery of nursing services. SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 6 Mr. Jarvis then reviewed the budget worksheet. The total proposed FY24 budget is 62,528.029. State and federal revenues will provide $12,911,955 which leaves a balance of spending at $44,616,074. He then showed a graph of the 19-year trend and said he did not feel FY24 was a "spike." Mr. Jarvis then reviewed the impact of the proposed budget at $51.00 per$100,000 of appraised homestead value. The tax on a $432,720 home would increase by $285.00 for the year. The proposed bond issue includes funding for the ZEMs and $8,550,000 for capital improvements in the general categories of roofing, HVAC, window replacement, bathrooms, parking lot sidewalks and kitchens. There will be presentations of the budget to various city groups until the March vote. 10. FY24 City Budget and bond votes: presentation of the proposed FY24 City Budget and bond votes: Ms. Baker said that challenges to the FY24 budget included: a. Multi-year inflation rates for goods and services b. COLA at 6.4% c. Recovery from the COVID years d. Maintaining service expectations. Assumptions in preparing the budget included: a. All bargaining agreements settled b. 1.75 increase in the Grand List, 10% of which is associated with the City Center TIF District c. Increased cost of goods and services d. ARPA salary and Capital Improvement Plan (CIP) stepdown e. 6% health insurance increase f. A savings on $110,000 for Workers Compensation insurance SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 7 Budget goals included: a. Addressing inflation b. Sensitivity to the tax rate (this is a 2-year budget c. Increase in park maintenance d. Restoring of a Police officer and a Deputy Police Chief e. Restoring of a Firefighter f. A second ambulance as of 1/1/24 g. The CIP h. Restoring the GIS/Analyst position to ensure that decisions are data driven Ms. Baker noted the restoring of a Firefighter will address a non-sustainable situation with mandatory overtime that is detrimental to the health and well-being of Firefighters. The second ambulance will address a significant increase in medical calls, 23% of which are now being answered by mutual aid from other communities. The proposed city budget will result in an increase of$78.49/year for the average condo and 117.11/year for the average homeowner. The proposed budget also includes the one cent Penny for Paths and one cent Penny for Open Space. Ms. Baker showed a list of the projects those funds have been used for. Ms. Baker noted that utility rates will also increase as follows: a. Water—an increase of 8.51% b. Stormwater—an increase of 1.64% c. Wastewater—an increase of 8.34% Emerging issues not covered in this budget include: a. Additional water storage tank b. Regional dispatch c. Recreation Center Mr. DiPietro then reviewed the bond issue related to upgrade of the Bartlett Bay Wastewater Treatment Facility to address age-related issues. He showed photos of the critical needs, some SPECIAL CITY COUNCIL/STEERING COMMITTEE 23 JANUARY 2023 PAGE 8 of which involve equipment that is no longer supported by the manufacturer. He also showed the proposed site plan. The bond being voted on will also address solids handling at the Airport Parkway Facility and the refurbishing of 4 pump station in critical need of replacement. The total cost of the proposed bond is $33,833,000. Staff is now working on a rate study and on securing grants to address some of the cost. Ms. Blanchard then explained the other ballot item related to the TIF District. She showed a slide of the area which encompasses about 100 acres and explained that TIF money comes from growth in land value from new development or re-development in the TIF District. 75% of the tax growth goes to pay for the infrastructure projects in the District. This does not take money from the School District as the State makes the education budget whole for the duration of the TIF. Ms. Blanchard noted that March of 2024 is the last time the city can incur debt in the TIF District, and there are 4 projects to be voted on. These are: a. The East-West crossing (bridge over 1-89) b. City Center Park II c. Williston Road streetscape d. Garden Street second phase Ms. Blanchard showed the details of each project and stressed that the vote will not impact the property tax rate. Dr. Childs asked about the lighting on the park path. Ms. Blanchard said the path will go from Barrett Street to Garden Street and will have waist-high lights. The path will be plowed but not salted. Mr. Barritt noted there is still a lot of land at the end of Market Street for which there is no current plan but will probably be developed at some time. Ms. Ostby proposed an idea for future discussion: exchanging the High School campus for the Veterans Park campus and building a new High School and Grades 5-12 campus. The High School could then be repurposed for affordable housing. SPECIAL CITY COUNCIL/STEERING COMMITTEE 23-JANUARY 2023 PAGE 9 11. Discussion of Dorset Street safety and possible feedback for staff: Ms. Baker noted the city is working with the Regional Planning Commission on a lighting study of Kennedy Drive. The city will also do speed and traffic counts on Dorset Street which could result in meeting the warrant for improvements. There is also a signal adaptation study being done. Dr. Childs as whether there could be something like a "beep" when people are exceeding the speed limit. Ms. Jarvis asked the time line for the studies. Ms. Baker said the lighting will wrap up this year, the other next year. Ms. Jarvis asked that Dorset Street get the attention it deserves as 2 of the 5 school buildings are there and it is a hub for pedestrian and bike traffic. Mr. Barritt said addressing lighting is important as it is hard to see pedestrians coming out of the dark. 12. Discuss the City Charter Committee's work to date and associated next steps: Ms. Baker reviewed the status of the Committee's work and noted the Committee includes two School Board members. The have met regularly and have discussed governance models. They will bring all information to the public this spring and then make recommendations to the City Council. Eventually, any proposed Charter changes will go to the State Legislature for approval. 13. Other Business: No other business was presented. As there was no further business to come before the Council and Steering Committee, Mr. Barritt moved to adjourn. Ms. Emery seconded. Motion passed unanimously. The meeting was adjourned at 9:15 p.m. Clerk s/ Chelsea Tillinghast School Board Clerk