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HomeMy WebLinkAbout1991-12-09 MinutesMINUTES OF A BUDGET.. RETREAT MEETING OF THE CITY BOARD OF DIRECTORS A Budget Retreat. Meeting of the Fayetteville City Board of Directors was held on Monday, December 9, 1991 at 1:00 p.m. in Room 326 of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Assistant Mayor. Mike Green; Directors Bob Blackston, Ann Henry, Julie Nash, and Shell Spivey, City Manager Scott Linebaugh, City Attorney Jerry Rose, Administrative Services Director Ben Mayes, Public Works Director Kevin Crosson, Planning Management Director Alett Little, Budget Coordinator Steve Davis, and City Clerk Sherry Thomas. - ABSENT: Mayor Fred Vorsanger and Director Dan Coody CALL TO ORDER 5 The meeting was called to order by Assistant Mayor Mike Green, with five Directors present. He *pointed out that no official Board action can be taken at the Retreat meeting. • t Assistant Mayor Green announced that this is the second Budget Retreat then turned the meeting over to City Manager Scott Linebaugh. - 1 City Manager Linebaugh stated that the purpose of this meeting was to cover the highlights of the budget process; to report on the public hearing and then open the meeting up to questions. PUBLIC HEARING 4 Steve Davis reported that the second public hearing was held on November 26th with only three citizens in attendance. Davis further reported specific questions from• the public regarding Dinsmore Trail and its scheduling in the "Chip & Seal" Program and specific parts of the budget, primarily regarding the Airport. Linebaugh added that Mr. Jones' informational type questions with respect to the Airport, such as the number of personnel, were answered, and he was further invited to view a detailed view of the 1992 budget at the City Manager's Office. - BUDGET PROCESS Ben Mayes addressed the budget process for the 1992 budget. He stated they started with the 1991 budget approved last year which was reviewed during six different retreats, setting targets by giving every department and division a 21/2% increase over last year. Each department/division was then asked to submit a budget within that 21% target amount; in addition to being allowed to submit 424 December 9, 1991 additional requests for items over that 21% target for new personnel. The next step was for all department directors and division heads to meet and walk through those additional requests for personnel and items over the 21% target in order to prioritize and rate them, in addition to identifying appropriate budget cuts. Specifically, the General Fund had the additional fire and police staffing brought about by the property tax millage increase. Mayes explained that to arrive at the '92 Budget, you take the property tax millage plus the 21% plus the miscellaneous items funded, and back out the budget cuts. The undesignated fund balance projected for the end of 1992 in the General Fund is approximately $3.2 million, 28% of the normal operating expenditures with the goal to maintain 10% in fund balance. Staff recommends taking $1 million of that fund balance to use for one time expenditures for the Dickson Street overlay and drainage improvement project and the Walker Park purchase. Director Blackston inquired as to the projected cost of the Walker Park property. Mayes responded that the item was listed at roughly $520,000 as a CIP program; the 40 acres currently lists for $289,000, plus another $100,000 for 1993 construction of a ball field and soccer field, and an additional $100,000.00 in 1997 for further construction improvements. Director Spivey asked if the City had any preliminary discussions with a listing agent on this property. Linebaugh responded that the agent is basically holding the property awaiting a response from the City. Director Spivey recommended scheduling a discussion with the listing agent as he believes there is some confusion regarding the purchase of this property. Director Henry requested verification that this 40 acres for $290,000 would bring the City's General Fund reserves from 28% down to approximately 191% to 20%, still double the goal. Director Green stated that he believes this is a great opportunity to obtain this property, and that an appraisal will probably be necessary. City Manager Linebaugh responded that if the Directors vote to put this item back into the budget, the Staff will commence with placing it on the agenda for a final vote. Director Blackston pointed out that another attractive point is that the City already has a development there; this would simply be an extension to what they already have. He expressed that they may be accused of buying land to construct parking lots. City Manager Linebaugh responded that a portion of this 40 acres will be for 42 December 9, 1991 additional parking; and in addition, several of the City's parks have tremendous parking problems. Director Henry pointed out that 40 acres should allow for some space to be left wooded; as well as preserving the Archibald Yell log house as a historical site. Linebaugh verified for Director Green that a consensus vote was needed from the Board in order to add any of these items to the '92 budget which will initially be addressed as amendments but added permanently to the final '92 budget. Director Green stated that at:the last Advertising and Promotion Commission meeting, they „voted to add some items to the A&P Commission budget in the amount of $55,000, which will reflect on the CEC designated funds held in the general fund. In response to Director Henry's inquiry regarding the Dickson Street. drainage project, Don Bunn responded that a part of this could be the drainage that flows under buildings on the north side but specific plans have not.., yet been made. -• City Manager Linebaugh added` that they currently have no funds allocated for this Dickson Street project, and the proposed project is only the first step toward improvement of the infrastructure on Dickson Street rather than a•beautification activity. Director Blackston commented that when you •start talking about drainage north of the buildings, then it will be necessary to start at the source of the problem at College and bring it all the way down Dickson. f. Kevin Crosson responded that at the present.time, they only have an educated guess on what will 'be included .and required for this drainage improvement project. He verified --,that the sewer work could be partially funded by sewer rehab ,funds, and many of the infrastructure programs are contingent upon an increase in sales tax. Director Nash inquired as to whether reserves can be committed to capital improvement. Crosson responded that the additional $1 million being discussed are undesignated unreserved funds, but general fund reserves can be used for capital improvements. Director Spivey posed the question that if the whole sales tax issue were to be thrown out, how would this affect the budget and are contingency plans being made. City Manager Linebaugh responded that contingency plans are currently being developed. If the sales tax issue were thrown out, it would virtually stop all capital improvement construction, ;t'' 426 December 9, 1991 including the schools, thereby defaulting on contracts, etc. In addition, Linebaugh stated that this issue will not be resolved in January because an appeal is imminent, and it will become another ongoing legal question. Director Henry added that if they were to lose the sales tax, it would also impact the other budgets as well. Director Nash suggested that a part of the budget be put on hold until the judgment is received in January 1992. City Manager Linebaugh responded that postponement is not recommended due to the deadline of January 31, 1992 to approve the budget. They should proceed with what they have and deal with the other situation if it does occur. Mayes added that entering a new year without an approved budget poses problems and some of the additional police and fire personnel need to be put into place as soon as possible. Director Green inquired if the Dickson Street improvement funding figure was an estimate sufficient to get the infrastructure improvements started. Crosson stated they felt there was sufficient funding budgeted. Director Blackston pointed out that in the worst case scenario that the sales tax increase is abandoned, the City will not yet have spent the funds on Dickson Street improvements, thereby allowing for reallocation to areas where funds are needed. Director Henry pointed out that they needed to consider coordination in scheduling the commencement of work on Dickson Street with the opening of the Walton Arts Center. City Manager Linebaugh responded that the immediate drainage problem existing at the Walton Arts Center is already being addressed, so that intersection will not be involved in the proposed construction; however, the proposed overlay project can not be completed prior to the opening of the Walton Arts Center. In addition, Director Henry suggested that they need to coordinate with the Dickson Street Improvement District for their portion of the improvements before the City commences with the overlay; and if the overlay project cannot be accomplished before the first of September 1992, that the project should be postponed until a later date. Director Nash stated that a meeting has been scheduled with Public Works to discuss their plans for street corner improvements, and the important factor is to keep communications open between the various groups. 4“ 421 December"9, 1991 Director Green asked where the budgeted funds will come from for improvements on the Systematics Building. City Manager Linebaugh responded that those funds will come from the sales tax capital improvements. Mayes added that based on the presentation by Terry Butcher, the method for which alternative to usehad not been decided and a source not yet identified. Director Green stated that}the plan was to bid the project both ways and making the decision•at that time in order to allow time to identify funding sources. Crosson stated that he understood that they would leave the amount budgeted as it was and then atthe time they arrive at "the construction contract, make any necessary -budget adjustments at that time. „ 4. In response to Director Green's inquiry, Davis responded that wage increases being dictated by the Department. of Labor apply to building construction only; and not.heavy'construction wage rates which were not inflated at1all. 4.. Director Green asked for clarification on.howtwage rates apply to the City purchasing function. ` Davis responded that the City requested a determination=from the Department of Labor and they advised that any project in-excess.-of`$75,000 is subject to the prevailing wage statutes if"public"-money is involved. Davis reported that a lawsuit;has already;been filed by the State -Department of Labor contesting the survey -results. . The City of Fayetteville has been aske&to join in this lawsuit. In response to Director Henry's question regarding the position of Administrative Inspection Intern being added to the Planning Department, Alett Little responded that this;is"a one year position for which the Inspection Intern will work in the Inspection Division to input all inspection information"into the GIS System for the purposes of accessing property by location and street address. Work previously done by the inspectors enabled the eight inspectors to be fully utilized in the field where they are needed. In addition, this job will entail assisting the Planning Division by installing signs for applications for rezoning and unusual uses. Little further verified that the Senior Planner position being added to the Planning Department,would be a continuing position. Director Henry commented that in management personnel, the City has gone from 11 full-time employees in 1989 to 14.3 full-time employees in 1990; a decline in the number was realized in 1991 and 2 additional personnel added in 1992. She further commented that they have continued to implement in the budget some team management concepts in terms of employee development: December 9, 1991 City Manager Linebaugh responded that last month they put all supervisors through a management training session on customer service that informs the supervisors in order to effectively manage their departments. He added that $24,000 has been budgeted for personnel development programs. Director Nash questioned contractual services listed under Planning Division which has doubled. Steve Davis responded that this is due to cost allocation in Engineering and Planning, with wide variations between individual programs and utilization of activities. This is designed to pick up items such as purchase orders issued; personnel employee data processing time and space used; and number of receipts issued. MISCELLANEOUS ADJUSTMENTS Steve Davis stated that the miscellaneous adjustments were due to typos and corrections on the final budget document. He explained the adjustments as follows: 1) In the Fire Department budget, instead of purchasing a pumper ladder truck, they have determined that they can better utilize two triple combination pumpers which are more conventional in order to fight grass, dumpster, automobile, and alley fires. These will replace 1976 and 1978 model pumper ladders and will give them 2 front line pumper ladders and 1 reserve. The next step is to replace the old traditional pumpers. 2) In the Planning Division budget, the Northwest Arkansas Regional Planning Commission stated at $27,500; the actual amount will be $31,474. The increase in cost is offset by a decrease in personnel services in the category of Planning Management Director. The increase is reflected by how charges are based on the amount of population in an area. 3) Police Department budget lists 44 patrol officers in error; this figure should be 42 patrol officers. 4) Contractual services listed in the budget at $114,859 should read $116,934 caused by a formula mistake on the spread sheet. 5) Accounts payable on page 137 is listed at $13,962 for an "air conditioner" should read "air compressor". City Manager Linebaugh reported that in addition to these changes in the budget, the Walker Park property will be added at $300,000 and Dickson Street improvements at $800,000. December 9, 1991 ° City Manager Linebaugh further stated that the completed 1992 Budget with addendum would be presented to the Board members for their final approval at the next regular Board Meeting on December 19, Director Nash addressed a letter received from Jim McCord regarding the Illinois River settlement which could affect the '92 Budget. City Attorney Rose reported that if the Supreme Court does not rule on this matter until well after the first'of the year, there is a worry that Congress may.passa bill that will "moot" the Supreme Court's ruling. There is" congressional pressure from the downstream states to allow a change in the.EPA regulations to make them favor the Oklahoma decision to seek to enforce water quality standards against upstream states as well as'pressure from states like Arkansas and other upstream'states to .rule that the water quality standards of downstream '.stateseither cannot beas stringent as Oklahoma wants or. at least restrict their actions. Director Henry stated that in other words, it will never be over. No matter what the Supreme'Court rules, Congress has the power to enact new statutes andpass on new regulations. City Attorney Rose agreed`' stating that the'City of Fayetteville would be involved in constant".regulatory battles and legal actions for many years to come. Even4.if you win ;the battle once, the fighting continues as you have to obtain anew permit every two years. Alett Little announced that_there would be a short reception at 6:00 p.m. on December 9 following a Planning Commission meeting to honor three commissioners (Hanna, Springborn & Robertson) whose terms are ending and invited the Board of Directors and Staff to, attend. ` ADJOURNMENT The meeting adjourned at 2:04.