HomeMy WebLinkAbout1992-11-30 Minutes•
MINUTES OF A BUDGET RETREAT MEETING
A Budget Retreat Meeting of the Fayetteville City Council was held
on Monday, November'30,..1992 at 5:30%p.m. in Room 326 of the City
Administration Building/at 113 West Mountain Street, Fayetteville,
Arkansas.
PRESENT: Mayor ,Fred: Hanna; Aldermen Stephen Miller,. Kit
Williams, :;Conrad Odom, Woody Bassett, Fred
Vorsanger, ;Len Edens,_:'Joan Chapman, and Heather
Faddoul;, City ,Attorney -"Jerry Rose; City Clerk
Sherry Thomas;'Administrative Services Director Ben
Maye§;.Planning Management Director Alett Little;
Public Works Director Kevin Crosson; members of
staff, press, and audience,
CALL TO ORDER
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The meeting was called to order by Mayor:Hanna, with eight aldermen
present. 41
Director of Administrative Services Ben•Mayes announced that Steve
Davis, Budget Coordinator, would present a brief overview of the
Capital Improvements Program, after. which they would answer any
questions, and follow with a review of the actual budget.
44 •
e
CAPITAL IMPROVEMENTS PROGRAM
Budget Coordinator Steve Davis addressed the Council explaining
that the Capital Improvements Program (CIP) is a planning document
and not used to appropriate funds. All funding for projects listed
in the CIP document occurs through the annual budget process and
can be revised at that point. He listed advantages associated with
a CIP document:
1) A five-year CIP provides for the establishment of
priorities for completion of capital projects and
2) Assists in the. orderly replacement and expansion of
infrastructure, equipment and facilities.
Davis stated the City initiated this process in 1988, and the
current document reflects the fourth annual update. City Staff
will be updating the document in 1993 for the years 1994 through
1998.
He further explained the process for completing the current CIP has
been unusual since the City has been in the process of transition
to a new form of government; had this not been occurring, the
proposed CIP would have been presented to the City Council for
consideration in September. This time frame allows for approval of
the proposed document prior to completion of the proposed budget,
so that projects for the coming year can be included in the budget
document. Another unusual aspect of the CIP process this year is
November 30, 1992
that many needed projects have been substantially delayed due to
the sales tax lawsuit, requiring the need to completely reschedule
and reprioritize projects, and resulting in cost increases for some
projects.
Davis summarized the project requests and resources, stating the
various operating funds to be utilized include General, Shop,
Airport, and Water & Sewer. In addition, funds are available
through the excess sales tax revenue and through the bond proceeds
from the 1990 capital improvement bonds which are supported by a
portion of the City sales tax.
He highlighted two items included under resources available, as
follows:
1) Water and Sewer Fund includes the monies obtained in 1992
from water and sewer revenue bonds. These bonds are
supported by the existing water and sewer rate schedule;
2) The sales tax pay-as-you-go projections are made at an
approximate growth rate of 2%. These are the funds
available after debt service is paid on the capital
improvement bonds. He explained the City is expecting to
generate approximately $5.7 million sales tax revenue in
1992, and approximately $3.3 million will be used for
debt service.
Davis gave an overview of the projects planned in the CIP,
reporting that the City's 5 -year focus continues to be on
infrastructure with total projected spending of slightly over $69
million:
1) $14.8 million for street improvements
2) $7.7 million for sewer improvements
3) $10.4 million for completion of the 36 -inch water
line project
4) $10.8 million for additional water improvements
5) $1.6 million for wastewater treatment plant improvements
6) $1.9 million for park improvements
In addition, he reported funding
School System improvements and
safety needs are addressed by
department improvements and $1.
improvements.
is continued for the Fayetteville
library book purchases. Public
planning $2.2 million for fire
6 million for police department
November 30,.1992.
P
He further highlighted some of the projects included in the CIP as
follows: -
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1) $277,350 forjcontinued development of Gulley Park;
2) $504,000 for a variety of :improvements to the Lake
Fayetteville -complex; °
3) $328,500 for,Walker Park development;
4) $1.2 million foroonstruction of Fire Stations #6 and #7;
fr
5) $505,000 for. continuation of:.the Geographic Information
Systems; t -
6) $288,000 for.‘computer control traffic signals;
7) $1.75 million for a Maintenance/Operations Center;
is
8) $211,.200 for thetEPA mandated backflow prevention study;
9) $600,000 for enhanced plant capacity and odor control at
the wastewater treatment plant,;
1.
10) $970,-000 for sidewalks and trailways construction;
11) $675,000 for street construction equipment.
s.,.;
Davis reported a change in the current CIP document. The previous
Board of Directors voted to switch the funding for the Systematics.
renovation and the Dickson Street overlay project. The Dickson
Street improvements will be funded from the sales tax pay-as-you-go
money, and the Systematics renovation will be funded from General
funds.
Davis further outlined a list of potential CIP projects for which
there was no identified funding source. He explained in order for
the City to gain a better grasp on the long-range needs, staff has
continued to compile a list of projects totalling approximately $15
million, which are seen as being required beyond the current five
year period. The timing and scope of several projects prohibited
an accurate estimate of the costs of all projects. Many of the
projects would also require state approval and financial
assistance.
Davis stated Staff believes the 1993-1997 CIP to be the most
complete version of the document prepared to date. He thanked the
City's division heads and department directors for their assistance
and cooperation, as well as the publicfor their input, which made
completion of the CIP document possible.
November 30, 1992
Alderman Williams noted from the summary page of the CIP document
where it appears that in project requests, the City will be
spending a considerably larger amount of money in 1993 ($33
million), more than twice as much in any other year. He questioned
the wisdom of toploading the CIP expenditures at this time when
there is always the possibility that the money may be needed
elsewhere.
Mayes stated most of the spending will take place in the sales tax
and bond fund areas on items which were voted on. He reported
there are two very large projects scheduled for completion in 1993,
one being the 36-inch/42-inch waterline. Mayes stated his
prediction that some of the 1993 fund will most likely be moved to
1994 and 1995. Due to the delays caused by the sales tax lawsuit,
the majority of CIP funds spent were bond proceeds; therefore, the
reason for the significantly larger amount of money scheduled in
1993.
Brian Swain, Assistant to the Administrative Services Director,
noted there were also a number of CIP projects which were put on
hold because of the sales tax lawsuit, and these projects have been
pushed into 1993. Had the City not been involved in this sales tax
lawsuit, there would have been more money spent in 1991 and 1992
than there has been.
Alderman Williams asked why solid waste reflects nothing from 1995
forward in anticipated projects. Swain responded the $1 million
shown is to help fund the cost of a materials recovery facility,
which is expected to be the primary expense over the next five
years. In addition, it is anticipated that the four -county
district will receive state funding and pick-up some of the capital
projects that the City would have done on their own.
Davis noted sanitation and recycling equipment, large capital
items, is funded through the Shop fund.
In response to Alderman Bassett's question, Mayes explained the
"Shop Fund" as a pooled/fleet concept to where all vehicles and
motorized equipment are purchased out of the Shop fund, and each of
the user departments are charged a user fee. Mayes further
explained the Shop fund came about as a result of the 1985
Performance Audit.
Alderman Bassett asked for a brief explanation on the purpose and
placing of the 36" water line, and why it is a priority item.
City Engineer Don Bunn explained a 42" water line will be a
parallel line to an existing 36" line they currently have coming
from the Beaver Treatment Plant to Fayetteville. The 42" water
line is expected to provide the City of Fayetteville water for the
next 30+ years depending on growth and demand. Bunn explained over
the past several years, the City reached the capacity of the
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November 30, 1992
existing 36" water line, which has a capacity of approximately 16
million gallons per day.- In the summer of 1991, there were several
days where they were using over 17 million gallons in a 4 -pump
system, primarily due to outdoor watering.
In response to Alderman,Miller's question, Bunn responded the daily
capacity for the new 42" water line`is approximately 40 million
gallons. Bunn explained the 42" water line will be parallel to the
existing 36" water line from Beaver to Fayetteville at Joyce Street
and Hwy. 265, at which point it will change to a 36" line and
proceed along the north side.of Joyce Street, cut across to the
west side of town to planned storage located south of Hwy. 62.
Bunn stated the contract for the new water line has been let, the
millage proceeding has been given, and construction is expected to
begin in a couple weeks, and the first section has a projected
completion date of July 1, 1993, depending upon the weather, and
will at least get water into town. In addition, he verified that
the new water line, including tanks, will: cost approximately $12 to
$14 million.
Alderman Bassett asked in°the unlikely or unfortunate event that
the City lose the sales,tax lawsuit, and since the new water line
is obviously a priority, what is the' alternative plan. Bunn
responded a revenue bond issue or reinstating the sales tax are
possibilities. -
Bunn stated that the capacity of the Beaver Lake purification plant
is approximately 45: million gallons per day. He further reported
Beaver Lake is in the process of expanding their plant and
enhancing the key treatment capacity, which will essentially double
their capacity.
Alderman Faddoul asked who operates the Beaver Lake purification
plant. Bunn stated Beaver Water District, composed of
Fayetteville, Springdale, Rogers and Bentonville, operates the
plant essentially as a non-profit entity.
Alderman Vorsanger pointed out there are $15 million in projects
appearing on the CIP "wish list", of which $5 million is allocated
in the first year. The 1993 project requests total $33 million
with available resources of $42 million. He stated that it would
be helpful to concentrate on the 1993 priorities, since the
subsequent year priorities will be reassessed for that year, and to
focus on where the funding is coming from for the 1993 projects.
Vorsanger asked what has changed in 1993 that was not predicted in
1992, and if the priorities changed, what were those changes. He
noted there were certain streets identified as being priorities in
1992, Township and, Stubblefield, and questioned where those
projects now appear.
November 30, 1992
Brian Swain stated the method used is to take the prior years'
priorities and build from that by including additions in schedule
period request and projects scheduled and requested in a later year
that didn't appear in the budget before. He stated there were very
few changes from the 1992 priorities, other than the projects
pushed from 1992 into 1993. In the sales tax bond funding for
1993, Stubblefield is ranked eighth in priority, and Township is
ranked tenth.
Alderman Vorsanger asked what was the likelihood of the City
getting down to their eighth, ninth and tenth priority. Davis
responded a big factor in completion of those projects is receiving
public acceptance for the improvement. He further reported that
upon resolving the sales tax lawsuit, these projects are ready to
proceed.
Don Bunn reported engineering on the Stubblefield project is 95%
completed and on hold due to the sales tax lawsuit, and provided
the City wins the lawsuit, Stubblefield is expected to be bid in
the Spring of 1993. The Township project was left in an undecided
state at the beginning of 1992, and before this project can be
defined, additional public input will be necessary to determine
number of lanes, possible minimal improvements at the intersection
at Township and North College, or correction of the sight distance
problem.
Alderman Bassett noted the 31 priority projects listed total
$11,833,170, and asked if in the event the City wins the sales tax
lawsuit, whether all of those funds will be available in 1993. Ben
Mayes responded initially based on Staff and public input, the
projects were ranked internally in a priority order; however, the
projects may not be done in the order listed since streets are
constructed in the summer and other projects in the winter or fall.
Mayes further stated the funds would be available in 1993 to
complete all 31 projects listed, if the City wins the sales tax
lawsuit.
Alderman Edens asked whether the priority list was also a funding
allocation. Mayes responded that if the City wins the sales tax
lawsuit, the money is available for all bond issues. A majority of
the priority projects were voted on by ballot; therefore, those
projects will be completed.
Alderman Edens further asked how Staff determined where each
project would appear on the list of priorities. Mayes stated the
projects appear in the order that they were funded in.
Don Bunn added one of the reasons for the priority list was to give
a basis for projects which could be substituted by another project
that the Council felt took priority and needed to be done.
.November 30, 1992,
Alderman Williams requested Staff provide a list of those priority
projects which the City specifically mentioned in relation to a
particular bond issue, and referred to the voters. Mayes responded
that 98% or 99% of those sales tax bond:projects were referred to
the voters.
Alderman Vorsanger stated his concern that funds appear in both the
1993 and 1994 CIP budgets for a pumper/conversion ladder, instead
of concentrating on building two new fire stations.
Fire Chief Mickey Jackson responded they have a sufficient number
of pumper ladders and will not be buying any additional ladders.
However, they are now trying to replace their old conventional
pumpers since their dependability has become questionable. Jackson
further reported that included in the CIP are projects to build two
additional fire stations. .!He added the biggest financial problem
with building new fire stationsis with staffing,since it takes a
minimal crew of nine people just' to open the doors. They are
currently in a five year project to adequately staff the existing
stations by the beginning of 1995. 'Jackson further reported that
there are four fire stations' currently. protecting the City, and
they are doing the job from a response time standpoint. He stated
they are a Fire Departmentidesigned to handle one major emergency
at a time, and for that reason, additional fire stations are being
considered beginning in 1994 with the land purchase. A key area in
the City for an additional fire station is at Old Wire Road and
Mission.
i 1
Alderman Vorsanger verified that the Council was scheduled to vote
to adopt the proposed;CIP on December 1 at their next Council
meeting.
BUDGET COMMENTS
Mayor Hanna addressed the budget message contained within the
budget document, stating that the plan for this meeting was to have
members of the Finance Staff walk the Council through the budget by
explaining how the document is organized and providing an overview
of its contents. Hanna announced at the end of the meeting, they
would set up additional retreat meetings at which the budget can be
discussed in greater detail.
Mayor Hanna reported he plans to be an active participant in budget
discussions since his involvement in the assimilation of the budget
has been minimal. As discussed in candidate forums conducted by
City Staff, the financial structure of the City is somewhat complex
with 24 funds and a total budget of approximately $68 million for
1993. The pending sales tax lawsuit could cause major changes to
the budget in 1993 if an adverse ruling is received. Hanna
commended City Staff on doing a great job of preparing the 1993
budget which is more concise as a result of format changes made and
the addition of new elements to enhance financial operations.
November 30, 1992
BUDGET PROCESS
Budget Coordinator Steve Davis, gave an overview of the budget
process stating that the process begins when a Budget Preparation
Package is compiled in April or May of each year and includes the
target budget established for each division; all the necessary
instructions and forms to complete the budget submission; a budget
calendar that establishes due dates for the forms to be submitted;
cost reference data for use in compiling the division budget
submission and instructing and forms for capital requests and new
personnel. In addition, two public hearings were held during the
summer: one devoted to citizen input on general City services, and
the other to receive citizen input on capital improvements for the
City.
Davis explained the budgets are organized by fund, and within the
fund, by department level. The six department levels in the City
are general government, administrative services, police, fire,
planning management, and public works. Within each department
exists operational divisions, or the organizational structure which
actually carries out the city services. Within each division is a
program, such as those within the solid waste division, namely
administration, commercial collection, residential collection,
recycling and composting. Each division head develops a list of
objectives and program performance measures for each program, which
are utilized by management to evaluate the overall effectiveness of
the individual programs. Within each program, there are categories
of related expenditure types, such as personnel services, materials
and supplies, services and charges, maintenance, depreciation and
capital.
Davis outlined Financial Policies which represent a new concept for
the 1993 Budget. In previous years, the City generally followed
internal policies and traditional practices have been formalized in
the current policies. He reported most progressive cities are
documenting their financial policies as part of the annual budget
process. Davis requested the Council review the new financial
policies and comment. The policies can be modified if need be
prior to adoption of the budget.
Alderman Vorsanger asked whether there were any new financial
policies which were considered unusual. Davis responded he has
drawn on a number of resources to establish the policies, including
policies of other cities, as well as policies and procedures of the
City which had not been formalized in a written form. He stated
these financial policies are being formally proposed to the City
Council to be adopted, and he urged the Council members to make any
recommendations for changes and additions.
Alderman Vorsanger verified with Director of Administrative
Services Ben Mayes that when the Council approves the 1993 Budget,
November 30, 1992.?
in essence, they are also approving the financial policies
outlined.
Mayes further stated the policy with the greatest impact on the
Council is the BudgetiAdjustment Policy. He reported they had
continued to raise the limits for approval by the past City Manager
at 10%, and now thflayor, setting a limit of $20,000.
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BUDGET OVERVIEW
Ben Mayes outlined the total sources and`uses of funds budgeted for
1993 as $67,941,465.=} The largest revenue sources include city
sales tax and their'portion df'the county sales tax, sewer service
charges, water sales, and the utilization of fund balance. Uses
of funds were highlighted, including personnel at $12.3 million,
internal charges, PCP operations; with capital at $19.8 million.
Mayes stated confusion occurs
because there are 24 separate,
set of rules and regulations. -
when placing -all funds in one pot
funds each with their own separate
Alderman Williams asked df the debt service referred to the
incinerator debt. Swain responded debt service is a reporting
entity to the City of Fayetteville and is reflected in the
financial statements; but not in the -budgets.
Ben Mayes explained that there are three major fund types which all
funds of the City are organized: governmental, proprietary, and
fiduciary.
•
Mayes addressed the Combined Governmental Fund Schedule as follows:
1) General Fund - a fund that accounts for everything not
fitting into another fund, such as police and fire
protection, general government, parks departments, and
the majority of administrative services.
2) Special Revenue Funds - funds such as street, advertising
and promotion, off street parking, drug law enforcement,
and community development. These funds are designated by
law or contract, and the revenues from those funds are
required for use to specific purposes.
3) Debt Service Funds - funds on the sales tax and Walton
Arts Center bond.
Capital Project Funds - funds including a replacement
fund, a capital improvement construction fund, and sales
tax construction fund which are both funded by city sales
tax, and the Arts Center project which is nearing
completion.
November 30, 1992
Mayes next outlined the combined Proprietary Funds which are funds
which operate as and like a business, such as those listed as
Enterprise Funds, including Airport, Continuing Education Center,
Industrial Park, water & sewer, and solid waste funds. The
Internal Service Funds include management services, and shop/motor
pool funds. Contained within the Trust Funds are the police
pension fund, fire pension fund, municipal judge retirement, and
the Walton Arts Center endowment fund. Mayes explained that only
the investment earnings can be spent off of an endowment fund.
The General Fund shows an ending fund balance for 1993 of
$4,560,599, a portion of which is designated for specific purposes,
such as loans to other funds of $258,900, and advertising and
promotion at $932,653.
Mayes stated the ending Undesignated Fund Balance reflects the
amount of money in the General Fund that can be used for any lawful
purpose. This estimated fund balance at the end of 1992 is
$3,270,000, and the estimated or budgeted 1993 ending is
$3,369,000.
In response to Alderman Edens' question, Mayes explained in the
General Fund, their philosophy is to maintain at least 10% of the
current year operating expenditures in this fund. The current year
ending undesignated fund balance is at 26% of current year
operating expenditures. Mayes further responded to his knowledge,
the first time in which the incinerator bonds can be retired is in
2003 without a prepayment penalty.
Alderman Vorsanger stated they are talking about General Fund
money, and it cannot be used to pay off the incinerator bonds.
Swain stated the interest rates on the Resource Recovery Authority
bonds are scheduled to be 5.2% in 1993, and increase to 7.125% in
the final year.
Mayes reported General Fund resources budgeted in 1993 are showing
a 1.7% increase over 1992 estimated resources of $11.8 million. In
reference to departmental specific uses, for 1992 they are
currently anticipating to be $500,000 favorable in revenue to where
they budgeted to be due to an increase in the county sales tax.
Alderman Vorsanger stated the Council will be questioned concerning
Fayetteville's $68 million budget, while Springdale has a $10
million budget. He explained that Springdale is referring to their
general budget at $10 million, and Fayetteville's general budget is
approximately $12 million, with the other funds in five other
categories.
Mayes stated total expenditures in General Fund are budgeted to be
$11,449,284, which is down substantially from estimated 1992 of
$13.7 million. He explained this is due to changes in the General
641
.November 30, 1992,
44
Government Department and primarily due to the fact that 1992
included approximately two years of School Construction funds,
whereas 1993 includes funding for one year. In addition, 1992 also
included capital funding for the Systematics Renovation.
Mayes addressed the personnel variation summary which sets out all
the changes occurring from 1992 to 1993. Total additions budgeted
for 1993 of 15.25 and deletions of 4, for net additions of 11.25
positions.
Steve Davis stated the,Street Fund for 1993 is budgeted to produce
a surplus of $36,039.. ,Thelmajor sources of revenue for the Street
Fund are the City's rshare-of the County Road Millage, State
Turnback Funds, and•gasoline-taxes. 'The Street Fund has adequate
resources to provide maintenance of streets, rights of way, and
drainage. Construction of streets and drainage improvements are
funded in the Capital Improvements Construction Fund and the Sales
Tax Construction Fund.
a
Alderman Williams asked for a definition of the Street
Administration Department's function. Steve Davis stated this
department provides maintenance, planning, and administrative
services for street,repairs an&maintenance. One of the largest
expenditures in Street Administration is in utilities for street
lights. There are three employees, Street Superintendent, Field
Service Representative, and a Maintenance Clerk, in this division.
In addition, Davis ,stated another large expenditure in this
division is an internal service charge for management fund support,
which is where the Public Works Director and Engineering Division
are funded.
Davis stated the Water and Sewer Fund is budgeted to generate
operating income before depreciation expense for 1992 of
$1,818,000. The sources of revenue for Water and Sewer Fund are
water sales and sewer service charges. Operating expenses for
Water and Sewer Fund are budgeted in the following divisions:
water purchases, water administration, water distribution and
maintenance, water storage and pump maintenance, growth area water
mains maintenance, water maintenance for Farmington & Greenland,
waste water treatment plant operation, and meter operations.
He pointed out the increase in budget for meter operations includes
$212,000 to conduct an EPA mandated backflow prevention study in
1993 as well as $75,000 for a water and sewer rate study. The Water
and Sewer Fund will also provide some water and sewer capital
improvements that are partially funded through the 1992 Water and
Sewer Revenue Bond Issue.
Davis explained the City contracts the maintenance and operation of
their Waste Water Treatment Plant out to a firm called O.M.I.
November 30, 1992
Davis addressed the Solid Waste Fund explaining the City collects
$2.02 charge monthly from all sanitation customers, and is used for
two purposes: (1) to pay legal fees on the incinerator
disengagement and (2) the excess is to be placed in a reserve
account for future debt service payments. After attorney's fees,
there currently remains approximately $800,000 in the reserve
account with projections to have $1.275 million at the end of 1993.
The Solid Waste Fund funds the solid waste programs of commercial
and residential collection, recycling, and composting. The primary
source of revenue for the fund is a fee for service charged to the
customer. In 1992, the residential fees were raised from $5.50 per
month to $7.75 per month. The $2.25 increase represented an
additional $1.50 for the recycling and composting programs and .75
for increased disposal costs. This was the first increase in over
10 years.
If a decision is made in 1993 to expand the neighborhood recycling
efforts city-wide, the cost for this decision will be analyzed and
brought back to the Council for any related fee changes.
Currently, the Solid Waste Fund is expected to have an unreserved
balance of $4,889 at the end of 1993. Therefore, it is quite
likely that the City will have to explore fee increases or service
level changes for 1994, if not before.
Alderman Bassett pointed out the City only makes a projected $5,200
in revenue from recycling aluminum, and $2,000 on composting. He
stated that the City needs to find a method to market the
recyclables.
Brian Swain stated the Airport Fund pays for the operations of the
Municipal Airport and provides for the local matched share of
federal and state grants. Airport revenues are expected to be
slightly over $1 million in 1993 with approximately $630,000 of
expenses before depreciation. He pointed out the increase in
revenues in rents and leases are due to higher rental car agency
contracts and an increase in terminal parking.
Scott Huddleston explained the Shop Fund is expected to generate
approximately $498,000 in 1993. Revenue for the Shop Fund comes
from vehicle replacement, motor pool, and vehicle maintenance
charges, based on usage by city divisions. The Shop Fund performs
all maintenance for the City fleet and provides for replacement and
additions to the fleet.
Huddleston stated the Management Fund has a budgeted fund balance
in 1993 of $115,000. Management Fund revenues are generated from
internal service charges to other user departments. Expenditures
for this fund are budgeted in the following divisions: 1) Planning
Management, 2) Inspection, 3) Public Works, and 4) Engineering.
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{:November 30, 1992..
Alderman Vorsanger asked for an explanation on how the City gets
operating revenue of management fees .into the fund. Steve Davis
explained management fees are calculated and assessed to various
funds utilizing management services within the City.
Davis explained the general government departments consist of ten
divisions: Office of. the Mayor, Prosecutor, City Treasurer, City
Attorney, Municipal Judge, Cable Administration, Internal Audit,
City Clerk, Airport, and Miscellaneous.' He reported projects for
1993 include the continuing transition to a new form of government,
exercising oversight and implementing the City's capital
improvement program, continued work on the incinerator
disengagement lawsuit; updating ordinances, and further
implementation of the ,City's hot check program. Major capital
projects to be coordinatediinclude continuation of the safety area
extension project at the Airport and other planned Airport facility
improvements. Estimated 11992 expenditures are projected to be
$187,000 below 1992 budgeted, the difference primarily due to
savings in the City Manager program and City Attorney divisions,
and operational programs in the Airport division.
Mayes explained the departmental summaries are supporting detail
that tie back to the fund .summaries.
}
Steve Davis outlined some of the highlights in the General
Government Department. The Mayor's Administration program has
materials and supplies category shows $16,500 budgeted to cover the
cost of producing a guide to City Hall, and a bi-annual report
covering City operations. The City Prosecutor Division reflects a
change in the City Prosecutor position from part time to full time
during 1992 and establishing an annual budget of $40,000 for
salaries. The Municipal Judge Division budget proposes a salary
increase of $10,000 !for the Municipal Judge. The Cable
Administration Division services and.charges category has a budget
of $70,000 for the .Public Access contract, including funding for
assistance provided in production and operations of the Government
Access Channel. The Miscellaneous Program reflects cost allocation
of Fire Station allocation charges and are reflected as cost
reimbursements in the Miscellaneous Program. Cost allocations are
assessed to non -General Fund divisions for services performed by
General Fund divisions. The'Fire Station allocation recovers a
portion of the cost of the Fire Station dedicated to the Airport.
The Salaries Contingency Fund and Miscellaneous programs have
budgeted $215,000 to cover salary adjustments for uniform and non-
uniform city personnel during 1993.
Steve Davis stated the Administrative Services Department 1992
budget expenditures are $6.7 million, and estimated expenditures
are approximately $6.4 million. The cost savings reflected is
primarily due to $59,000 in savings on workers' compensation
premiums; $88,000 savings in personnel costs due to turnovers and
reclassification; and $31,000 in utility costs that would have been
Y Y
November 30, 1992
realized had the Systematics Building been operational. The 1993
budget of $6.7 million is essentially the same as 1992.
Alderman Williams asked Staff to prepare a comparison report of
actual administrative services expenditures for the past few years
so the Council could see how they have changed.
Brian Swain explained sometimes the names of the departments can be
somewhat misleading. Besides clerical and staff, the
Administrative Services Department contains the shop fund and
equipment maintenance, as well as meter operations, and animal
control officers.
Davis stated the Administrative Services Department had a
reclassification deleting the Finance Director position and adding
an assistant to the Administrative Services Director. The 1993
Personnel Division budget reflects $15,000 for continuation of
supervisory management training for all City supervisors; $3,000
for an update to the City Pay Plan, scheduled every two years;
$3,000 for an employee health fair; and $10,050 for hepatitis-B
vaccinations for Police Department employees. The Accounting
Division reflects an upgrade of an accounting clerk to a full-time
position; data processing has increased maintenance agreement costs
due to the new AS400 computer. Water & Sewer Services includes a
new meter reader position and will be funded almost completely
through a reduction in overtime; $65,000 for a water and sewer rate
study; $206,000 for an EPA mandated backflow prevention study; and
miscellaneous capital expenditures for meter operations. The
Communications Division reflects a personnel addition is a .85
transfer of employees from the Police Department to the
Communications Division. Animal Services Division includes a new
animal control officer, funded through a reduction in overtime, and
brings the total to three animal control officers; $20,000 to
provide funding to the Humane Society for assistance in animal
control operations. Fleet Maintenance Division reflects $1.1
million in capital expenditures for the Shop Division, and includes
$136,000 for police vehicles; $108,891 for solid waste equipment;
and $675,000 for street construction equipment to be used in the
in-house street overlay program.
Steve Davis next addressed the Police Department budget stating
their total 1992 budget was $3.1 million, but expected expenditures
are $3 million. The budget for 1993 is $3.25 million; the majority
of this increase is due to the addition of three officers and a
systems operator position. During 1992 a vacancy occurred due to
retirement of a captain position, which was reclassified during
1992 to a second assistant police chief position. Davis reported
Fayetteville is the lead agency for the Fourth Judicial District
Drug Task Force, and due to this role, the City budgets all of the
financial operations of that entity. The Police Department is
funded almost completely through the General Fund, except for the
Drug Enforcement Program, which is funded by its own funds.
?November 30, 1992
The Fire Department budget reflects estimated 1992 expenditures to
be approximately $2.2 million, $14,000 less than budgeted. 1993
expenditures are budgeted at $2.3 million, an increase of $89,000
over the 1992 budget, the increase is due to the addition of three
fire fighters. Major highlights outside of the addition of the
fire fighters. are the capital and operations program includes
$9,000 for a new fire hose replacement, $4,000 for a new copy
machine, $6,000 for replacement of self-contained breathing
apparatus, $700 for replacement range, and $700 for refrigerator
replacement.
Brian Swain added thewFire Department budget contains funding for
the Regional HAZMAT program.
Steve Davis gave the Planning Management Department overview, with
budgeted expenditures"for 1992 at $174,000 below budget, and the
1993 budget will be approximately $500,000 below the 1992 budget.
This decrease is primarily due to the community development funds
which funds are typically readjusted during the year. He stated a
clerk typist position. has been added to the Planning Management
Department and split 50/50 between the, Planning and Inspection
Divisions. The Inspection Division in the capital category
includes an IBM personal` computer to assist with implementing
Geographic Information System activities.
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In response to AldermanVorsanger's question, Director of Planning
Alett Little explained there are two kinds of block grant programs:
(1) owner assisted programprimarily for elderly, low income people
who own their homes, but need money for improvements and (2) rental
rehab where an investor has a unit that is not up to standard and
receives a loan and matches it with their own money. She stated
Jan Simco is head of that department.
Alderman Bassett asked if with the additional police and fire
fighters being hired if the City would -need a millage increase. He
also asked if the additional staffing was adequate.
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Police Chief Richard Watson stated past studies indicate the Police
Department would still be understaffed. However, he will be
researching current data and studies to determine the recommended
staffing levels.
Fire Chief Mickey Jackson stated they had planned to reach the goal
two years ago of adding 15 fire fighters. With 4 stations, the
staffing level is adequate. There is a national movement to
require a minimum of a 4 person troop. He feels this may not be
necessary. If Fayetteville builds the two additional fire stations
as planned, additional fire fighters will be necessary.
Alderman Miller asked how many firefighters would be required to
open a new station. Chief Jackson stated 9 fire fighters would be
required to open the doors.
November 30, 1992
Police Lieutenant Rick Hoyt stated the Police Department for 1991
was based on known calls for service. In 1992, the requests for
service have increased by about 6-7%. The Police Department has
requested additional personnel. They had asked for 20 additional
people of which 10-12 would be patrol officers. The other 8 to 10
people will be support personnel. Seven people were added last
year and 4 new ones are scheduled for this year. These additional
personnel are getting the department closer to meeting their goal.
Davis continued to report
projected to be $26.9 million
to the re -budgeting of the
budget is $28.7 million.
through five different funds:
and sewer funds, solid waste
1992 Public Works expenditures are
, $4.5 million less than budgeted, due
42" water line. The 1993 proposed
The Public Works program is funded
management funds, street funds, water
funds, and general fund.
The Engineering Division is purchasing a Model 95 IBM personal
computer for $13,971.
The water and sewer capital included in Public Works totals
$1,328,000 for funding of ground storage tanks for the 42" water
line project.
Sewer main construction includes $1.9 million for sewer system
rehab and $7,000 for sewer line relocations as needed. Capital for
the Waste Water Treatment Plant totals $582,000, including $350,000
for enhancement plant capacity odor withdrawal, $100,000 for lift
station improvements, and $132,000 for other capital items.
The Traffic Division is adding a maintenance worker II position to
help with the increased work load on the new traffic signals and
signs.
Mayor Hanna stated the Council needed to set another meeting in the
first ten days of December, after the aldermen have had time to
study the budget.
Director of Administrative Services Ben Mayes reported law requires
that the budget be approved no later than February 1, 1993; he
would like to have it approved by the middle of December.
Mayor Hanna suggested they meet on Monday, December 7th at 6:30.
Mayor Hanna appointed Len Edens as Chairman, Conrad Odom and
Heather Faddoul as members of a nominating committee to fill
positions in various City Commissions and Committees.
Alderman Edens suggested they establish a committee for asset
acquisition, disposal and retention. This committee would set
criteria and present it to Council at meetings to be included on
the consent agenda.
November 30, 1992:
ADJOURNMENT
The meeting adjourned at 8:20 p.m.
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