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HomeMy WebLinkAbout1990-12-13 Minutes3'7 9 MINUTES OF THE DECEMBER BUDGET HEARING FOR 1991 A public hearing for the 1991 Budget was held on Thursday, December 13, 1990 at 7:00 p.m. in the Directors Room of the City Administration Building, 113 West Mountain, Fayetteville, Arkansas. CALL 20 ORDER City Manager Scott Linebaugh called the budget hearing to order. He began by reviewing the other meetings that had been held this year including the Public hearing on June 12, CIP hearing on August 9, November 6 and November 12 Community Development Budget hearing, and this final hearing on the proposed 1991 budget. Linebaugh explained the order of the meeting and that anyone wishing to speak could sign up, and they would have ample opportunity to express concerns or comments and ask questions. He went on to explain that the 1991 budget was a continuation of a progression towards the Program Performance Budget, a real advantage to the city of Fayetteville in that it provides a clear picture of what service is being provided and the cost. It also demonstrates the amount of service expected from that program aril develops a measure of productivity and effectiveness. He stated that the budget was probably the 'most ambitious and progressive program the City of Fayetteville has ever undertaken.4 Linebaugh stated that balancing this budget.has been an arduous task. He explained that it still only provided basic needs for critical service areas. Linebaugh stated, like most cities in: the nation today, the -revenues were not in line with the. demands and the costs of services. He stated that the City could notcontinue at the current service level with the current revenue sources. Linebaugh explained that no one was recommending any tax 'increases with the 1991 budget. He stated that it was realized that Fayetteville's location and the environment were the primary causes of the increase in water and sewer rates. He also stated that sanitation service charges would be re -calculated for 1991 to reflect the new costs of the landfills. He stated that it was possible to keep the cost per person low for'most of the general government services, including police, fire, streets,•parks and so forth. -0 e Linebaugh stated that the 1991 budget has a decrease of $13.3 million from the total of the 1990 budget but explained that it,was somewhat deceiving, due to the fact that the 1990 budget contained $17 million for the pay-off of the sewer plant bonds. He stated that revenues versus expenditures for operating funds show a better picture that the City was not "dipping into reserves" as badly.as was done in 1990 by $500,000. December 13, 1990 Linsbaugh stated that funds being taken from the Reserves and General Fund would total $370,000. Hs also explained that the budget for 1990 included reducing the budget by $1.1 million. Linsbaugh stated that, based on the above-mentioned data, the City would be able to maintain the current level of service through 1993 without a significant new revenue source. He stated that the currant Street Fund revenue sources (primarily state turn -back and a portion of the County Road Tax Millage) will support only basic maintenance. All capital items and major improvements will have to be funded through the sales tax revenues. Linebaugh stated that. the total personnel budget has a net reduction of 4.5 positions. Actual cost of 1991 personnel is being reduced by 8.5 positions. One new position being recommended is covered by a grant. Linebaugh stated that many changes have been mads in cost of operations to make them more effective. He stated some possibly rough times were ahead and encouraged the -citizens of Fayetteville to join together and support the budget. Linebaugh introduced City Staff as follows: Terry Jones Mickey Jackson Richard Watson Kevin Crosson John Merrell . Steve Street Richard Shewmaker City Prosecutor Fire Chief Police Chief Administrative Services Director Planning Director Interim Public Works Director Economic Development Coordinator As a review of the Budget process, Kevin Crosson explained that the annual budget is a fiscal plan which presents services provided to the community and funds required to perform them. Crosson explained that the type and level of service is defined by the use of a program objective, which is further defined by program measures. He explained that the City Manager is responsible for the formulation of the fiscal plan and presentation of the plan to the Board of Directors for approval and adoption. Crosson stated that Linebaugh began, upon his appointment as City Manager, to attack the trend of the past four years of drawing from the City's reserve funds to finance City operations. An interim Budget Expenditure Policy was instituted in January which was aimed at cessation of all non-essential basic service spending in the City's operating funds and particularly in the General Fund. Linebaugh also imposed a moratorium on the filling of all new positions approved in the 1990 budget, all position vacancies were evaluated for necessity and postponed for filling when possible. December 13, 1990 All non-essential travel, purchases and capital expenditures were placed under a moratorium and each department was required to submit a listing of cuts equalling 10% of their total department budget for consideration. Crosson explained that, as a result of this interim expenditures policy, the City saved over $300,000 in the General Fund and a number of positions are now under recommendations for cuts in the 1991 budget. In May of 1990, a budget preparation packet was distributed to all department and division heads, which included a detailed manual with the budget preparation calendar, examples of the forms and instructions for completing the forms to request funding for 1991, and target budgets were set for each fund and/or program In June of 1990, a public hearing was heldfor budget and CIP. A presentation was given on funding constraints regarding operating funds. in July of 1990, all capital and new personnel requests were submitted and prioritized, based on a review by budget Staff to see if continuing costs were in the available funding range, through a series of staff meetings. In August of 1990, the budget work papers were submitted by the Division heads to the budget staff to be compiled into a preliminary requested budget and given to the City Manager for review. A second public hearing for CIP was held and a presentation was given on the preliminary document at that time. In October and November, an analysis of each proposed budget program was performed through a series of meetings with the City Manager and the Department Directors. They were evaluated in their entirety and additions and cuts were made to balance the funds with the service requirements with the end result being the City Manager's proposed budget and work program for 1991. Crosson explained that this was the final public hearing on the budget document but a special workshop will be held Saturday, December 15, at which time the Board of Directors will review, question and make revisions to the proposed document. The current plan is to adopt the budget document in January 1991. Crosson went on toe lain the budget document and the explain q purpose for which it should serve the City of Fayetteville. He'explained that the City of Fayetteville is in the final progression of evolution towards programmed performance budgeting,- with the recent implementation of an approved budget adjustment policy, placing a less restrictive line -item policy into effect. The movement toward categorical budget adjustment approval will also significantly 382 December 13, 1990 enhance the division head's managerial ability to function in a more effective manner. Hs explained that this format is designed to encourage rational decision-making, with the advantages being: 1. To provide a 2. To provide expected. 3. To provide a clearer picture of the desired service level. a clearer picture of the amount of service measure of productivity and effectiveness. Crosson explained that the methodology included a brief description of the goal of the program and the major reason for funding the program, the program analysis (describing what the program will accomplish in the budget year), a listing of the staffing levels and the cost of the programs, and a statement of objectives for all programs for 1991 in quantitative terms. He explained that the objectives are followed by performance measures which detail the demand, workload and the expected productivity and effectiveness. Crosson stated Staff was very proud of the fact that the City has been awarded the Distinguished Budget Presentation Award by the Government Finance Officer's Association for the past two years. In order to receive the Award, a governmental unit must publish a budget document that meets criteria as a policy document, as an operations guide, as a financial plan and as a communications medium Crosson .stated that the current document would be submitted to the GFOA to determine its eligibility for another award. Crosson read and explained the budget philosophy of the City and then turned the program back over to Linebaugh to explain the departmental budget highlights. GENERAL ADMINISTRATION DEPARTMENT Linebaugh explained that the highlights covered at this hearing would include the City Manager's office, the City Attorney's office, the Municipal Judge and Communication and stated that, due to the many funding restraints, there were not many highlights in this particular area. 1. DELETION OF THE MUNICIPAL LEAGUE LEGAL DEFENSE FUND ALLOCATION Linebaugh stated that this did amount to approximately $50,000, since the City was covered by other insurance and was defended legally by the City Attorney's Office. 'December 13, 1991 r Hr 2. ADDITION IN PERSONNEL IN THE CITY ATTORNEY'S OFFICE Thie would be the addition of a Staff Attorney position to prevent dependance on outside law firms for legal assistance, as is being done at present. Linebaugh stated this would not change having outside assistance on very difficult legal cases, such as the incinerator lawsuit but would pay for the position in most other legal cases. NEW MUNICIPAL JUDGE SALARY RANGE Discussions will be required to assess whether the position should be full-time or part-time. HOT CHECK PROGRAM City Prosecutor Terry Jones explained the program as having a great potential to actually make the City a considerable amount of money. The program is anticipated to pay for its initial set-up, which was funded in at a cost of $102,000, and have the potential to generate approximately $100,000 to $150,000 per year additional revenue to the City. He stated that the added benefits would be decreasing hot check usage, helping with a more efficient collection technique for merchants, heading off felony offenders before they become felons, and catching hot check writers before they have written twenty or thirty different checks. ECONOMIC DEVELOPMENT PROGRAM Richard Shewmaker explained that this is a continuation program, continuing in the next year many things begun in the previous year. He stated that the general purpose was to enhance and improve the economic and social being for the citizens of Fayetteville, more and better job opportunities, the expansion of the property tax base, and increasing of sales tax revenues. With the assistance of many interested groups, the Fayetteville Advertising and Promotion Commission has authorized the preparation of a city-wide marketing plan. Those groups include the University of, Arkansas, business, the media, Chambers of Commerce, retailers, food and lodging facilities. Shewmaker stated the plan would be designed to enhance travel to this area, to create this area as a destination as opposed as a place to "pass through". He stated that this, in return, would result in an increase of sales tax revenues. ' FIRE DEPARTMENT .- E t 1 Fire Chief Mickey Jackson introduced the proposed budget for 1991 as involving $1,935,497 as a composite of all of the programs • m'384 December 13, 1990 within the department. Hs stated that this represented an approximate $23,000 decrease from the 1990 budget. Jackson stated that the department was divided into five different programs that account for the proposed budget, and he reviewed each one briefly with an analysis of what increases or decreases were required in each: FIRE PREVENTION PROGRAM: This program entails all cods enforcement, public education and fire investigation work in the City. The proposed budget is $87,856 which is an approximate $2,600 increase from 1990. OPERATIONS PROGRAM: The largest program in the department with fifty personnel on the payroll. These ars the firefighters themselves, who also do occupancy surveys and assist the other programs. The total budget is decreased $25,000 for 1991. TRAINING PROGRAM: Essentially a ons -man program with the responsibility of keeping abreast of the latest information needed to be a modern and effective fire -fighting force. The budget increase for this program accounts for approximately $800. HAZARDOUS MATERIALS PROGRAM: This program has a projected decrease of approximately $1,000 in its annual budget. Jackson stated that. it is partially allowable by the fact that cost of being in the regional program has decreased somewhat over past years. ADMINISTRATIVE SERVICES DEPARTMENT Kevin Crosson explained that the Administrative Services Department is the Staff support department of the City, including such divisions as Personnel, Finance, Internal Auditing, Building Maintenance, City Clerk's Office, Water i Sewer Services, City Shop, Municipal Court and Animal Services. Proposed expenditures for 1991 total over one-half million dollars less than the 1990 budgeted amount. Crosson explained that the primary reason for this is that a number of positions have been eliminated within the department, and a number of positions have been down -graded within the department. Continuation of the Management and Supervisory Training Program, as well as allocation of $3,500 for a Cost Recovery Study and constructions of a new animal shelter will enter the departmental picture for 1991. The miscellaneous budget is facing a number of reductions including the elimination of the allocation assigned for the Arkansas Air Museum. Crosson stated that an allocation of $75,000 has been funded to Fayetteville Open Channel that will partially fund the operation of • „December 13, 1990 • that media. Elimination of the allocation of the funding for the "You Can” Program has also been projected. Reduction of allocation for the City Hospital is equivalent to approximately $94,000. There is also budgeted into the miscellaneous program an allocation for the annual transfer into escrow for school construction projects which amounts to $1.38 million. POLICE DEPARTMENT Police Chief Richard Watson highlighted two points in the police budget. He explained that the department was able to add one new police office position by trimming all absolute excess. He stated that, although the additional position is helpful, the department is still shorthanded. Watson stated that the police department applied for and received the first federally funded and state-controlled drug grant in Northwest Arkansas in 1988. He stated that the City was granted a second application of the grant that will expire on January 31, 1991. This inspired the department to combine with other lay enforcement agencies in the county to form a multi -jurisdictional task force of which Fayetteville is the lead force. The total drug grant amount applied for was $393,569.00 and 75% is funded through the Federal Drug Bill, with 25% being the Fayetteville Police Department's share ($55,096.00). PUBLIC WORKS Interim Public Works Director Steve Street gave a description of the workings of the department including managing and controlling the collection and disposal of all solid waste, the collection and treatment of sewage waste, the distribution of water, the construction and maintenance of streets, sidewalks, parks and alleys, the maintenance of public rights-of-way, the installation and maintenance of street signs, signals and traffic control markings, and the Regional Air Transportation operations provided at Drake Field. Street stated the proposed budget for 1991 is less than what was adopted in 1990. He explained that most of the difference is accounted for in Capital Projects budgeted that are not yet - completed or ongoing. He stated that the department has been;re- organized to enable the Public Works Director to have a much" clearer picture of the overall operations in the department and' make them much more cost effective. This includes the transfer of the City Engineer from Planning Management into the Public Works Department and the assumption of all parks maintenance to provide a high level of service without increasing personnel. 4 P December 13, 1990 Street emphasized the importance of the continued maintenance of the airport and all the services that it provides. This would include improvement of approaches, better access to fuel, and renovation of baggage claims. Regarding capital improvements, Street explained that the department was in the process of rehabilitating many parts of the sewer system to eliminate all overflows by the year 1994. Improvsasnt of the water system, as well as capital improvements and a chip and seal program for the streets. PLANNING MANAGEMENT Director John Merrell read the mission statement for the department. He explained that the department was the smallest of departments within the City, divided into four divisions: City Planning, Community Development, Inspections, and Parks & Recreation Administration. Highlights of the proposed budget included providing more services in the City Planning division, keeping all parks open, continuation of the Gulley Park renovation, improvements to the City Pool, support of the various athletic leagues, development of guidelines for establishing more green spaces in the City in the Parks & Recreation Division, aggressive action in the Cods Enforcement Program, Housing Rehabilitation Program in the CD target area (around Dickson Street), and participation in the U.S. HUD Rental Rehabilitation Program by moans of a grant for the Community Planning Division.- Continuation of operation of the City's Elderly Taxi Program and the Fair Housing Program was also described by Merrell. BUDGET STAFF Judy Cohea, Budget Officer, described the capital expenditures, improvements, tax revenue sources for the funds, showing the different overviews and projections for each year. She also included explanations of user fees by service for sewer and solid waste and governmental revenues by source. Linebaugh turned the program over to the audience for questions and comments and explained that all comments would be recorded in the minutes, a copy of which would be provided to the Board of Directors at a later date. First speaker from the audience was Joe Gergerich, who referred to the presentations given by Prosecutor Jones and Kevin Crosson regarding the cuts to Library fund and cost effectiveness for basic services, respectively. December 13, 1990,' Gergerich questioned what was considered "cost effective" by'the budget planning staff, suggesting that the library is a very basic service and implored the staff not to make any cuts in funding whatsoever. ri Crosson addressed Gergerich's comments by reviewing past years' budget allocations for the Library. He stated the allocations were increased in 1986-87 by 5% ($178,000) with a $300,000 allocation for asbestos removal. In 1988 there was a 15% increase, from 1988 to 1989 another 5% increase with the purchase of the Medark building for library expansion ($360,000). In 1990, a 3% increase for operations was allocated and, in addition, another $100,000 was allocated for operating capital for remodeling and capitalization of books and reading material, which has not been expended as of yet. Crosson also stated that an allocation was made in the amount of $120,000 for the Medark facility remodeling for a total. of $440,000 for the year. Crosson stated that, while the operating allocation for the coming year has been decreased slightly, there is an allocation for $65,000 for capitalization of book purchases and an additionaji $50,000 for remodeling expenses of the Medark facility. He pointed out that the City has worked closely with the Library staff in the past, recognizing the very real need of the citizens for the library facilities. Next speaker was Danny Farrar, who discussed the manpower shortage within the Fire Department. He acknowledged the concern of both City Manager Scott-Linebaugh and Fire Chief Mickey Jackson for this problem. Farrar presented a brief film dealing with the essential manning levels in different fire departments across the country and their effectiveness. Linebaugh stated his support in increasing the manpower in the police and fire departments. He stated that there would be alternatives included in the budget presented to the Board to allow increased manpower if they so decided. Bobbye Hay, President of the Library Board, addressed the audience and staff, asking everyone present in support of the Library Board to stand. She then addressed the issue of revenue production by the Library itself and explained some of the past events dealing, with City -assisted funding for the Library. Hay explained ,the numerous departments and services the Library performs for the public. Linebaugh added that it was realized that the'Library was indeed working to hold expenses to a minimum and asked for understanding in the lack of funding available at this time: December 13, 1990 Larry Wood, Director of the Northwest Arkansas Regional Planning Commission, addressed the omission of the Planning Commission in the 1991 budget. He respectfully requested reconsideration and encouraged the City's renewal of membership in the Regional Planning Commission. Wood reviewed some of the activities and services the Planning Commission was involved in over the past few years. Carolyn DeLele, president of a private citizen's group in support for the Fayetteville Public Library, stressed the importance of school-age children usage, continuing educational material, and the community prestige of first-rate library facilities and what that has to offer national or international citizens moving to the area. Peg Anderson addressed the audience and Staff in opposition to any cuts in Library or Parks and Recreation funding. She suggested that the Economic Development Budget bs somewhat reduced, closer attention paid to "hamburger tax" money usage, and proposed consideration of a possible 5 mill increase in property taxes to generate additional revenues. Linebaugh added that, if Fayetteville raised property taxes comparably with surrounding regions, there would be a revenue increase of approximately $700,000. He also stressed the importance of addressing the Economic Development issue for the City. Next speaker was Fran Alexander who addressed questions to Staff on the Odor Abatement -Program and preliminary study and the origin of the funding. She also questioned whether the rate structure for the Solid Waste Disposal would be put into effect in 1991. Linebaugh assured Alexander that it would be put into effect in 1991. Alexander questioned the inclusion of a curbside recycling program, additional cost of such a program, and sources of funds to cover such costs. Linebaugh explained that a budget amendment would possibly bs needed in the future to reflect the additional cost. She also requested information regarding funding set aside for recycling education. June Jefferson spoke in support of the public library, thanked everyone for their comments and asked that the budget staff support the requests made on behalf of the Library. Annie Littell spoke in favor of the rate changes and solid waste rates for the coming year and, in addition, gave her full support for the library's summer reading program ,December 13, 1990, > -ate>t Tiny Haalton spoke and reminded everyone that , they need to be involved is the other public meetings. He expressed thanks to Dan Coody for his attendance at this public hearing. ' Hamilton stated that the public citizenry isbeginning to be more aware of how funds are being spent. He gave several examples and made suggestions as to how additional finances could be saved both city and county -wide. Hamilton asked Fire Chief Jackson and Police Chief Watson to consider utilizing volunteer and auxiliary work forces to alleviate the manpower shortages. Linebaugh reminded everyone that the addition of a staff attorney position to the City Attorney's Office would be in place in the 1991 budget and this could possibly assist in saving future money spent on contract attorneys. Richard Shewmaker addressed several of Mr. Hamilton's comments concerning economicdevelopment in the City. Robert Reus expressed his concern over a fund deficit in 1991. His suggestion was that $6 out of every $10 collected in property taxes had gone to pay lawyer's fees for the incinerator project. He also stated additional concern over the projected termination of the "You Can" program • Linebaugh reminded Reus that the City was the defendant in the lawsuit and explained that the Economic Development Program would take approximately five years to complete. He reminded everyone that those facts had been stated from the outset of the project. Shewmaker stated that, although no new major industry had relocated to Fayetteville, several existing businesses had undergone expansion. He pointed out that the crisis in the Middle East had caused a major effect. Joya Pope spoke to those present about the quality of life in Fayetteville. She stated that the Library was a main concern of her family's when they were making the decision to relocate. Pope questioned the support and funding for athletic events and programs as opposed to support and funding for the libraries and parks. She suggested cutting trash pickup to one day per week, with a day added for pickup of recyclables. It was stated that some consideration had been given to the suggestion and curbside recycling had been investigated. It was pointed out that an enormous amount of public education would•be necessary. 3BO:= December 13, 1990 Pope suggested the possibility of insurance companies providing financial support for the additional Fire Department personnel required to sufficiently man the trucks and stations. Chief Jackson answered that many years ago there was a program to try to assist in a manner similar to that but the insurance companies quit because it became vary expansive for them. Jackson assured her that there was indeed a manpower shortage, but it was by no means a manpower crisis. He stated the City Board had authorized a minimum manning level that enables the Department to keep all firs stations open with two or three man crews. With no further citizens requesting to speak, Linebaugh reminded everyone that the complete minutes of this public hearing would be presented to the City Board. He stated that the next budget meeting would be held on Saturday, December 15, 1990 in Room 326 of City Hall. ADJOURNMENT The public hearing was adjourned at 10:02 p.m. •