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HomeMy WebLinkAbout1992-12-07 Minutesbbb MINUTES OF A BUDGET RETREAT MEETING A Budget Retreat Meeting of the Fayetteville City Council was held on Monday, December 7, 1992 at 6:30 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; City Treasurer Glyndon Bunton; Administrative Services Director Ben Mayes; Planning Management Director Alett Little; Public Works Director Kevin Crosson; members of staff, press, and audience. CALL TO ORDER The meeting was called to order by Mayor Hanna, with eight members present. Mayor Hanna stated this meetingwas a continuation of the November 30th Budget Retreat meeting. He stated due to a problem with notification of the press, they would not be holding a brief City Council meeting.at this time to discuss some appointments and settlement on a lawsuit. He announced they would have a short business meeting prior to the Agenda Session on Wednesday, December 9th. k - BUDGET AMENDMENTS Director of Administrative Services Ben Mayes announced the budget process starts in May and culminates'in'December or January when it is approved. He explainedoa group of department directors rank all requests beginning with a target budget based on the prior year figures increased by,approximately 21%. Staff then reviews any additional personnel and items requested above the target. Mayes reported Staff was..recommending the. 'following additions to the budget which could be approved with the 1993 Budget as amendments. Mayes announced the General Fund currently has an increase in 1993 projected to the undesignated fund balance or excess of $99,000. He stated there were two personneladditions which Staff was recommending be added.�to the General Fund budget. The first recommendation was for a clerk typist to the Hot Check Program. The plan was to delete a part-time work study position from the Hot Check Program, and replace with a full-time position. The second position recommended is a part-time cashier to the Billing and Collection Program, and delete extra services from that program. He explained a lot of the work generated by the Hot Check Program spills over into the Billing and Collection Department causing the need for additional staff. In addition, the opening of the Systematics Building in June or July, will require a clerk/cashier on court mornings. The recommended personnel deletions and additions total $16,079 to the General Fund. December 7, 1992 Mayes reported the previous Board of Directors approved a grant application for an additional $500,000 of housing rehabilitation. He reported upon receipt df the grant, revenue will be available for a zero impact. He pointed out that funds were reallocated from housing rehab to public improvements, also with a zero impact. Alett Little explained upon receipt of the grant from the Arkansas Development Finance Authority, a portion of the community development funds which would have been used for housing rehabilitation can now be used for infrastructure. COMBINED STATEMENT OF REVENUES AND EXPENDITURES Alderman Miller asked why total revenues appearing on Page 16 of the Budget in the amount of $22,698,887 are different than the Major Revenue Sources listed on Page 110 which total $37,280,040. Mayes responded Page 16 of the Budget contains Governmental Fund types only, and Page 18 lists the Proprietary and Fiduciary Funds, which will balance with the Major Revenue Sources listed on Page 110. He further explained that Page 110 highlights only the most significant revenue sources. Alderman Williams asked whether the collection of hot checks are placed in Court Fines and Fees or are broken out separately. Budget Coordinator Steve Davis responded a portion of the hot check collection costs goes into Court Fines and Fees and the remaining into Prosecuting Fees. Glyndon Bunton asked whether in light of the request for additional personnel, the revenues from the Hot Check Program are projected to be significantly higher in 1993. Davis responded revenues generated by the Hot Check Program, both court fines and fees and prosecutor fees through November 30, 1992 totalled approximately $110,000. It was pointed out that it was difficult to project revenues from the Hot Check Program since 1993 will be the program's first full year of operation. In response to Alderman Edens' question of how the City makes money on the Hot Check Program, Financial Analyst Brian Swain explained there is a prosecutor's fee, a warrant fee, court fee, and collection fee added on top of the amount of the hot check written. They use a staggered collection fee structure of $5, $15, and $25, depending upon the amount of the check(s). Alderman Chapman stated although Hot Check Programs are worthwhile and valuable from merchants' standpoint, she isn't optimistic these programs will turn the tide on this problem since most of the people who write hot checks and are often repeat offenders. Davis stated he only expects the Hot Check Program to pay for itself, which it does with excess funds remaining. December 7 1992 667 Alderman Vorsanger reported his amazement that the City of Springdale prosecutes some of the same individuals charged with writing hot checks in Fayetteville, and there should be a way for the two cities to keep each other informed of such violations. In response to Alderman Miller's question regarding the listing of Debt Service under Expenditures on Page 16 of the Budget at a total of $3,640,688, Swain explained this is debt service on the Walton Arts Center bonds and 1990 Capital Improvement bonds. GENERAL FUND Glyndon Bunton asked whether Staff had researched the changes in law regarding the exclusion of personal property in property taxes. Davis responded the impact is projected to be approximately $30,000. He•doesn't"believe the City will feel the impact due to the growth in real estate values. • In addition, Swain stated the reassessments currently being done by Washington County will help the City. - 0 • Mayor Hanna reported by the time the first impact from the personal property tax exclusion,'the City will have already had two sections reassessed, which should make up for any short fall. It is projected to take a total of five years to reassess the entire County. r Mayes explained the difference between the Mayor's Administration for 1993 budgeted at $243,375 as compared to the City Manager's Administration in 1992 of $201,480 wasidue to additions to the Mayor's budget which may or may not be incurred or expended. These include $16,500 to cover the cost of producing a guide to City Hall; $4,500 for advertising regarding vegetation management; $4,000 for ADA interpreter services, only used if requested; and funds for the Sister City Program. 1 'r In response to Bunton's question regarding previous City Manager's consulting. fees, Davis explained those fees are budgeted into the Mayor's Administration under Salaries and Wages, and extends into January and February, of 1993. With regard to the proposed increase of $10,000 to the Municipal Judge Division for a total of $50,000 per year, Alderman Williams inquired as to state judge's (Circuit and Probate) average salary, which he believed to be around $60,000. He further inquired as to other part-time municipal judge salaries in the county. Davis responded the last salary increase to the Fayetteville Municipal Judge was in 1988 from $26,000 to $40,000; the current increase is from $40,000 to $50,000. He further reported the Municipal Judge's position remains part-time with traffic court 3 to 4 days per week. V V O December 7, 1992 Alderman Chapman stated in the absence of a base line salary, the Municipal Judge's salary increase appears large. She suggested future budgets reflect the base line salary which would allow them to make a better judgment. Alderman Edens stated it appears they are making a 25% increase in the Municipal Judge's salary, and asked whether his services to the City are also increasing. Brian Swain responded the City has had a record number of cases in court in 1992, with October 1992 setting a record for the number of cases processed in Municipal Court. Alderman Vorsanger inquired as to the legislative salary spread. Swain responded for a City the size of Fayetteville, the salary spread is from $40,000 to $65,000. In addition, Swain verified Washington County pays 50% of the Municipal Court Judge's salary, which is approved by the Quorum Court Alderman Edens questioned whether the County could justify a $10,000 Municipal Judge salary increase due to their financial problems. In the event the County votes against the $10,000 salary increase, the City, who elected the Municipal Judge, would be responsible for the entire increase. Alderman Chapman asked given the fact that the number of court cases has increased, and in view of the fact that the Municipal Judge position remains part-time, how was it determined to increase the salary by $10,000 at one time. Mayes responded the Municipal Judge requested the salary increase. He further stated the inception of the Hot Check Program increased the court cases by volumes. This instituted the addition of a police officer to serve warrants and additional clerical personnel in the court and Prosecutor's Office. They looked at the possibility of going to a full-time judge and prosecutor; however, Judge Moore preferred to stay part-time at this point, and it was currently more important to go with a full-time prosecutor. Alderman Williams stated as a practicing attorney, he knows Fayetteville has a back log on trials of approximately six months, longer than any other municipal court in the area which are normally approximately two months. He further stated with the salary being considered for the Fayetteville Municipal Judge, the position should be full time. He requested Staff report on the circuit judge salaries to use as a guideline prior to approving the Municipal Court Judge's salary. Alderman Edens asked whether the City Council could vote as a whole to be made effective on January 1, 1995, followed by discussion on the Municipal Court Judge's length of term, and whether the Council's vote could be changed at a later date. December 7, 19924 City Attorney Jerry Rose responded the City Council would be hard pressed to change their vote in midstream since the Municipal Court Judge is an elected official, and his job description currently reads "part time". However, he verified the Council could vote to make the Municipal Judge's position full time, effective during the next election. He stated he would research whether or not the Council can make the Municipal Judge a full time position during his term. Rose further concurred with Alderman Vorsanger the proper course was to talk to the Fayetteville Municipal Court Judge, as an elected official, has applied for his budget, which is probably justified. STREET FUND Steve Davis remarked the budget figures were basically the same as 1992, with an added percentage for 1993. Ben Mayes reported the Off Street Parking Fund reflects a significant increase in parking deck maintenance for 1993; however, it is on hold due to the lawsuit. Alderman Miller inquired about the budget expenditures on Page 93 and asked why many were at zero. Davis explained the CD program has matured to the point of actual programs. In the past, they have taken each year's allocation and set up special general ledger numbers for those accounts. They have reached a point of consolidating all expenditures in order to more readily track and fit into the remaining budget_format. +_ • Alett Little further explained this budgeting process does not fall under the same process,as the rest of the City, due to the nature of a federal grant received in April 1992. Swain referred to Page 81 of the budget which illustrated the three programs created which didn't previously exist. Alderman Chapman asked to what extent the infrastructure categories are affected since receiving this federal grant to take the place of some community development funds. 'Little responded the category changes take place in CD Capital and Services and Charges accounts. Alderman Edens asked whether the federal grants are received by lump sum or piecemeal. Mayes responded they are expenditure based grants to where the City is reimbursed as they spend. With respect to the Aging Transportation Fund, Mayes explained this small fund is categorized as a separate fund because of grant requirements. Alderman Edens inquired whether the Arts Center Bond Fund includes any of the improvements. Mayes responded Arts Center improvements are located in a'separate group of funds on Page 33. V/V December 7, 1992 Alderman Edens explained the City Sales Tax Bond Fund is placed in an interest bearing account and is tied up by Arvest who is currently holding more than enough money to retire the bonds. Alderman Williams addressed the $327,000 budgeted for legal services in 1992 and noted there were none budgeted for 1993. Davis responded they estimated the expenditures the trustee's attorneys were assessing the trustee, who in turn deducted the fees from the sales tax revenue stream. To date, the City has been presented with bills which total approximately $193,000. The $327,000 is anticipated to be charged to the City through the year of 1993 in connection with the lawsuit. City Attorney Jerry Rose further explained under the terms of the Trust Agreement, the attorney for the trustee or Arvest, the Friday Law Firm, is entitled to deduct from bond proceeds any expenses they incur in the defense of their trust, which totalled $193,000 through August 1992. He further stated the same type of situation is occurring with the incinerator lawsuit. Alderman Williams stated his confusion since it was his understanding City Attorney Rose was handling the sales tax bond litigation. City Attorney Rose responded he is representing the City on the sales tax bond litigation; however, he cannot represent Arvest and the City. Therefore, Arvest has their own counsel, and the City of Fayetteville had no say in the selection of Arvest's counsel. Arvest has interests divergent from the City's, they file their own briefs and answers, they are a separate party to this case, and not the City's co -counsel. The only concern of Arvest is getting their bonds paid, while the City has a number of other interests. Alderman Vorsanger added hiring of counsel occurred at the time of the Trust Indenture, agreed to by the previous City Board, which entitles Arvest to reimbursement for their expenses incurred, if any, in defense of their trust arrangement with the City. City Attorney Rose further explained Arvest requested to become a party to the lawsuit, and the court allowed them to become a party, after which they hired their attorneys. Pursuant to the trust indenture, expenses incurred by Arvest in defense of their trust agreement with the City are deducted directly from bond proceeds before the City receives said proceeds. He further verified the trust indenture with Arvest is normal and standard. Alderman Edens stated under normal circumstances and if a lawsuit hadn't been filed, these expenses incurred by Arvest would not have been present, and the City would not have been charged $190,000 to date. December 7 Mayes explained the wording in the the 1992 Water and Sewer Bond Issue trustee is not allowed to spend without the City's permission. 0/1 1992:. trust indenture entered into on was broadened, and sets out the over $15,000 on legal counsel REPLACEMENT FUND In response to Alderman Eden's question, Ben Mayes explained the Replacement Fund was started twelve years ago and contains approximately $76,500 transferred from the General Fund, and is considered a disaster recovery fund, to be used in the case of natural or man-made disaster and injury. Alderman Vorsanger gave the example of Replacement Funds used following the storm Fayetteville incurred three years ago which uprooted so many trees.. Alderman Eden asked whether the Replacement Fund was legally tied in any way so that future City Counsels were prohibited from using the funds for other purposes than they were originally intended. He stated his support for maintaining the fund as long as the funds remain and are used for disaster recovery. • Mayor Hanna responded these fund& can be used within the parameters of the City Counsel, and serves as a "comfort fund". • Mayes stated the current City Counsel could change any ordinance pertaining to the Replacement` Fund. He reported an option discussed for discontinuing transfers to the Replacement Account and letting the interest build. •. However, this option was postponed for the time being. In addition, he%.reported discussion about using the Replacement Fund for the 36" Water Line Project. • CAPITAL IMPROVEMENTS CONSTRUCTION FUND Mayor Hanna stated these funds represent the sales tax bond money which is currently tied up. Alderman Miller reported receiving, a letter from residents on Finger Road complaining about cancellation of the chip/seal program originally planned for Finger Road, and the SB2 formulation being used was making it difficult to breathe. Crosson explained theCitywill no longer be using the chip/seal program, but rather'going to asphalt surfaces. In response to Alderman Williams' question regarding the mileage received on chip/seal vs. asphalt. Crosson stated pavement provides a much longer life. The chip/seal program is a stop gap measure to keep streets from completely eroding. Crosson further reported the Public Works Department has set a goal for themselves UIL December 7, 1992 of trying to asphalt all gravel or SB2 streets in the city limits in 1993. Alderman Williams stated he has been asked by the Dickson Street Improvement District (DISD) whether there currently are or at what point will funds be available for landscaping Dickson Street. Crosson responded the City spent over $2 million on the Walton Arts Center Dickson Street parking lot improvements including landscape improvements. He reported an $800,000 budgeted allocation for 1993 to resurface Dickson Street from College to Douglas Streets. Alderman Edens stated the $800,000 mentioned by Crosson represents the funds transferred temporarily to the Systematics building renovation project. Mayor Hanna stated the agreement with the DSID was the resurfacing will be financed by the City with the DSID responsible for funding a portion of Dickson Street beautification or landscaping in conjunction with the resurfacing. Alderman Edens reported hearing the DSID has earmarked $375,000 for beautification of the City. Alett Little reported the DSID currently has $250,000 for such purposes. With the compromise settlement to the lawsuit, the City was required to build parking lots for the DSID, a $2 million expenditure was supposed to have been borne by the DSID. An agreement was subsequently drawn with the City that the DSID would develop the plan of improvement for Dickson Street, specifically to include the landscaping, lighting, etc. with a $1 million cap. Ms. Little reported the DSID developed a plan earlier in 1992 that impacted the City's street construction. During her most recent discussion with Carl Collier of the DSID last week, he indicated the DSID would stay out of the street and concentrate on the landscaping. The DSID further indicated they have no plans of addressing any sidewalk issues, and this matter is still pending. Ms. Little stated the City would like to see businesses maintain their own sidewalks, and for the DSID to absorb a portion of sidewalk repair costs. As far as plans for linkage of the Square with Dickson Street, she knows only of U of A students working on various concepts for this linkage. Crosson stated they have no improvements planned or budgeted in 1993 within the 5 -year program for the linkage between the Square and Dickson Street. However, Staff has discussed such improvements among themselves and believe this linkage to be a natural progression at some point in the future and a very nice addition to the City. Alderman Williams asked what City committee would address the improvements for linkage between the Square and Dickson Street. .December 7, 1992.. Crosson responded there currently is no specific address such improvements. Little stated in the past, she and Kevin Crosson addressed any City improvement ideas. Alderman Chapman pointed out even though the City has reached an agreement with the DSID, that does not preclude DSID asking the City for funding. Furthermore, the source of such funding is uncertain; all things considered, such requests are usually not granted. b / ,S committee to have jointly Little responded to Alderman Chapman stating the proposed plans for linkage of Dickson Street to the Square could be an item on the Capital Improvements Plan. Crosson added Council members have an opportunity to become involved in such planning through the adoption process of the Capital Improvements Program and the budget, and he announced the Public Works Street Improvement Plan is partially addressed on Page 36 of the 1993 Budget. .. Alderman Williams stated the budget does not outline plans for the particular improvements to various streets/roads. Crosson responded the projects identified on.- the Capital Construction Program are identified and described in the CIP itself. 4 Mayes stated there have been individual public meetings held on the Dickson Street, Stubblefield Road, and Township Street improvement projects. i, ¢. Glyndon Bunton addressed plans for paving all gravel streets in Fayetteville, and asked how important concrete curb and guttering would be on these streets. Crosson responded Staff evaluates this situation on a street by street basis, and it is strictly determined on the matters of economics and location. R Alderman Miller asked about the entry on Page 38 of the 1993 Budget for remodeling board room at $10,000. .Steve Davis responded when the Municipal Court moves to the Systematics Building, all benches, including the judge's bench will be moved, and seating will need to be replaced in the existing council room to accommodate citizens at council meetings. Alderman Miller addressed the budget for the Great House Park Bridge and questioned how the City could possibly spend $32,500 for this 15 to 20 foot span which currently contains an old suspension bridge constructed from chains and boards. Miller pointed out some of this money could be better spent on the playground equipment at the park which is in poor condition and forlandscaping to correct the erosion which is occurring. He further questioned the budgeted December 7, 1992 item for bathrooms at $35,000, stating he could build a two bedroom house for the same price. Alderman Edens concurred with exorbitant fees listed in the serves only as a "budget" and Alderman Miller that there are some 1993 Budget; however, this document not as an "allocation". Alderman Williams reported the Rotary and Exchange Clubs built the two bridges at Gulley Park privately with their own members in order to save money and avoid letting bids, developing specs, etc. Even so, the building of a bridge that will hold up, requires cement, supports, handrails, etc. and can be fairly expensive. Mayor Hanna verified the costs listed in the Parks and Recreation Fund are budget items requested by the Parks and Recreation Board. He commended the discovery of the items which require additional explanation; however, he suggested some of the aldermen need to become active and attend the Parks and Recreation Board meetings. Alderman Miller reported he has been visiting all City Parks, and has recently discovered Combs Park, 100 acres between the Industrial Park and the White River, which he did not know existed. He reported although this land is somewhat inaccessible, this potentially beautiful area is currently strewn with garbage and old appliances. Miller stated he has been unable to locate any improvements to Combs Park in the 5 -year CIP, and asked whether any such plans exist. In addition, he mentioned a couple of parks on the south side of Fayetteville, such as City Lake Park, which have been forgotten. In response to Alderman Miller's question, Crosson stated this illustrates the task charged to the Parks and Recreation Department with limited funding and staffing to maintain the existing park structure in the City and to make needed improvements. Alderman Vorsanger asked who determined whether or not the City Council should look into needed existing park structure improvements. Crosson responded he has developed a master plan for each major park structure, which outlines a 10 to 15 year capital plan for park improvements. This, however, does not apply to every park located in the City, and typically, the method used is to address a specific need brought to a particular Parks Advisory Board by a Parks Board Member. Thereafter, any need determined by the Parks Department Staff is handled by a cooperative effort between the Parks Department and Park Board. In addition, Crosson explained Staff looks at specific park use vs. cost for park improvements. Alderman Edens suggested the Council initially address those parks closest to the residential areas in the City, and once those parks oij ,December 7, 1992.4, . have been improved as needed, then begin branching• out to the exterior parks as the population growth surrounds such parks. Crosson stated in a lot of cases, the more remote areas of town were donated to the City, and when a donation is made, a need for the new park will be evaluated for the kind of usage best suited to the particular area. Mayes reported the City possesses over 3,200 acres of park land, of which 700 acres are lake property under water. Alderman Vorsanger stated, in the past, Staff sent a memo to all Board of Directors listing all City Parks with park acreage, and activities provided at each park. He felt a copy of this would be helpful to the new aldermen. INDUSTRIAL PARK FUND Alderman Williams asked for an explanation of why there was so much money in the Industrial Park Fund. Swain responded this fund balance represents the•land values. SOLID WASTE FUND Mayes reported the City had incurred a $600,000 increase in sanitation fees in 1992 and 1993. - Alderman Vorsanger stated his belief that the sanitation fee charged to the citizens of Fayetteville for bi-weekly pickup is the best buy he has ever seen anywhere. AIRPORT FUND Alderman Williams asked whether the beginning retained earnings reflected in the Airport Fund were low due to runway and assessment depreciation. Mayes responded a percentage of the assets are contributed capital from FAA and state grants. a Alderman Williams stated the estimated 1992 budget was $439,000 and budgeted 1993 is $394,000. He questioned this decrease since it appears there is continued growth in usage of Drake Field. Ben Mayes responded ..the Airport Fund income went from $979,000 to $1,024,000, and there are more operating expenses. In addition, Drake Field anticipates exceeding estimated income for 1993. CONTINUING EDUCATION CENTER FUNDS Alderman Edens asked for an explanation on the transfer of funds with budgeted depreciation appearing on Page .46 of the budget. Mayes responded this fund is actually treated asa business/entrepreneur fund. The long term depreciation expense is December 7, 1992 based on matching principal in an attempt to allocate the expense of acquisition of the Continuing Education Center Parking facility over its life, to match it against revenues generated over its life. These funds come out of retained earnings as depreciated and will be the end of useful life of that building and parking facility. The depreciation expense would be removed from the books at that time, could either be added to or a new fund started, while the operating income of $68,000 from this fund would remain, and proceed to beginning retained earnings for 1994. POLICE PENSION/FIRE PENSION FUNDS Alderman Williams asked Mayes whether the pension funds were in good shape. Mayes responded these funds are governed by separate Police Pension and Fire Pension Boards. These two funds have an annual actuary evaluation performed. By state law, these funds are closed to any additional participants. Any participants added after 1983 belong to the state pension plan. These funds have undergone an actuary study, which by law, requires actuary soundness by the year 2003, and according to the studies performed, both funds will reach this goal. Alderman Vorsanger stated both the Police Pension Fund and Fire Pension Fund have professional investment management. SHOP FUND Alderman Edens stated operating revenue is generated from the budget from the user departments. The Shop Fund buys the vehicles, and in essence, leases them back to the separate departments which budget the money for these leases. In order to keep up with the 4% increased cost of vehicles per year, theoretically, if the City buys a vehicle and keeps it for five years, the money returns to the Shop Fund again to purchase replacement vehicles. The Shop Fund operates on a rotating basis and should be a self-supporting fund; however, if they don't act carefully, could get caught overspending on the vehicles, and the different departments would be required to ask the City Council for an increased budget to pay for future vehicles. Edens further announced he intends to visit with each department manager and review each of their vehicles and uses. Fire Chief Mickey Jackson reported the City's fire trucks are the only vehicles which the Shop Fund doesn't own. Glyndon Bunton asked if the lawsuit is successfully settled and the City completes all CIP projects in 1993, whether the Shop Fund would run short of funds. Crosson stated the outcome of the sales tax lawsuit should not affect the Shop Fund, for which the majority of CIP projects are contracted services. He verified the City currently has one 677 December 7, 1992. asphalt paver, as well as one paver projected for 1993 at a cost of $250,000 to $300,000. Crosson further stated for 1993, they.are proposing to lease with an option to purchase at the end of the year, an asphalt paver and grader for drainage structures. Future plans include beginning an in-house paving program and evaluating the program through the lease arrangement to determine the City's efficiencies and cost improvements over contracting the service. Mayes verified the City used to have an in-house overlay program which was discontinued. Alderman. Williams asked approximately how many miles of gravel roads are located in the City-which.will be paved in 1993. Crosson responded there is somewhere between 10 and 20 miles, and the goal is to pave all City gravel streets in 1993, depending upon the outcome of the sales tax lawsuit and weather. Ben Mayes verified the tri -axle dump truck will be used for hauling asphalt and stockpiling, one of the City's largest programs for 1993 will be street construction. Alderman Edens asked for verification, that the only time the Council would be asked to budget additional money for the Shop Fund is when an additional vehicle is needed and has never existed in a department before, and/or when a true,need is identified. Ben Mayes reported an:example of the scenario Alderman Edens is referring to would be in "1992 when the City hired 7 new police positions and needed additional vehicles. With the .absence of a lease program pay back to purchase additional equipment, money is appropriated to the Shop Fund in order to lease out to the various departments. If the City did not possess funds within the Shop Fund for such purchases, and if a first time acquisition, they may buy the equipment from Water,and Sewer or Street Funds. MANAGEMENT FUND. Alderman Williams asked why the Management Fund had such a large increase from 1992 at $1,073.,000 to $1,290,000 in 1993. Swain responded there was a reserve built up in the Management Fund several years ago, and. the plan was to keep the fund at a break even point. Therefore, since 1991, they have been drawing on the fund reserves and supplementing the management fees with the reserves. He explained management fees are charged, as with the Shop Fund, where various divisions are charged for services, charges performed by other departments.' Alderman Williams stated the 1992 .estimated ending balance was $71,000, and the actual ending balance will be $208,000. He inquired as to the reason for additional funds in 1993. Swain responded this also includes the revenue. The total expenditures in the Management Fund are shown at $1,301,460 in 1991 and December 7, 1992 $1,397,587 in 1993, for an increase of approximately $90,000 over the two year period; the revenues are up by $220,000. Ben Mayes added the Management Fund has added an Urban Forestry and Landscape Program in 1993 for a horticulturist. Alett Little explained the City's Urban Forestry and Landscape Program also receives a grant each year which brings the total program budget to approximately $30,000. Alderman Williams stated he notes the Economic Development Program was dropped from this budget. This item had appeared in the 1991 Budget, but not in 1992, as these funds are now being provided to the Chamber of Commerce. In response to Alderman Williams' question, Mayes stated the Economic Development Program funds which are now being provided to the Chamber of Commerce appear on Page 22 of the 1993 Budget in the General Fund Miscellaneous Program. He explained the Chamber is paid an additional $100,000 for the A&P contract. Alderman Williams inquired about fund increases, such as the Engineering Plans and Specification which had increased from $90,000 in 1992 to $171,000 in 1993. He asked if the reason for spending additional $135,000 was due to the water line, etc. Crosson verified the reason for spending the additional $135,000 in the Engineering Plans and Specification Fund was due to the water line. He explained the fund had increased primarily due to part- time contracts with land agents to buy rights-of-way for the 42" water line. Alderman Chapman addressed departmental summaries and the various staff salaries, and noted the salaries were not broken down in the Personnel Services Fund to show the specific salaries for the director or assistant director of the departments. Due to the concern and debate shown over various Staff salaries, she suggested in future budgets, the Personnel Services Fund should also reflect a break -down on the various salaries. Alderman Vorsanger stated past budgets did break down Personnel Services, and he would like to see a present salary schedule for all management positions, as well as the approved salary ranges. Mayor Hanna stated he has a copy of the Personnel Services Department salaries, including salary ranges, which he would provide for the aldermen. DEPARTMENTAL SUMMARIES Alderman Edens asked what would happen if the City Council made a line item veto on one departmental budget out of the 1993 Budget. December 7, 1992 Mayes responded this action would eliminate particular expenditure, and thereby eliminate the program. Alderman Williams addressed the General Government Department Highlights in the 1993 Budget and the $100,000 allocated to the Chamber of Commerce, and asked whether the City Council has any input on how the Chamber spends their money. Mayor Hanna responded the mayor and two aldermen sit in on the A&P Committee, which has a budget and agenda of their own. Mayor Hanna further reported attending an A&P Committee meeting on that day at which Blackwood Martin Agency presented the Chamber's advertising package for 1993, and accepted requests from different organizations for funding. Mayor Hanna reported the A&P Committee voted to fund the National Public Radio Show in Fayetteville and voted to fund a Convention in connection with the National Association of Genesis Directors' Program. He further explained these funds basically come from the hamburger tax and the hotel, motel and restaurant industry are dominate on this committee. Mayor Hanna addressed the 1993 Budget, reflecting a additional $61,000 out of of $310,000. LIBRARY FUND Library Budget located on Page 91 of the budget of $246,746 without books, plus an capital, for an approximate total budget Crosson reported they capitalized bookpurchases in 199.0., which allowed the Library to -use their allocations from the General Fund for operations and maintenance. Alderman Vorsanger reported on a phone call he received from Bobbye Hay, president of the Library Board for many years, who held a meeting that afternoon with Linda Harrison, Library Director, and Kevin Crosson. She expressed concern over an item appearing in the Capital Improvements Budget for 1993 under,"Potential Projects" for a new roof on the Medark Doctors' Building which is currently leaking. Due to the seriousnessr of this situation, Ms. Hay requested the City Council move forward this roof repair project to their Capital Improvements Program where it can be accomplished as soon as possible. Vorsanger reported an estimate on the Medark Doctor's Building roof repair of $16,300. He further stated the Library, as the heart of the U of A Campus and a City service, should rank along side of Police and Fire services, and he strongly advocated the request. Alderman Vorsanger further reported concern voiced by Ms. Hay since expansion of every facet of the,Library, which receives an unusual amount of use, they have a. need and have requested two additional clerk/typists, but receivethnone. Ms. Hay requested the City Council take another look at this request in an attempt to find a solution to their problem of under -staffing. Vorsanger December 7, 1992 reiterated in his opinion, the Library is one of the best services the City gives its citizens, and it deserves more consideration. Alderman Williams asked when the last increase in personnel for the Library was approved by the City. Crosson responded part of the problem is the Library is not a function under the City government, but rather an independent governmental entity. Mayor Hanna reported discussion with Crosson regarding the Library, and a meeting was held at which he became advised on the situation. It is his understanding over the last five years, with the purchase and remodeling of the Medark Building and resurfacing of parking lots, the City has spent over $800,000 on the Library, in addition to the regular funding provided by the City. Mayor Hanna further reported the current Library is a result of the combining of the old County Library and the City Library, and since that time, Washington County has assumed a portion of the expenses to maintain the Library. Due to the County's financial problems, the Library continues to approach the City for all funding increase requests. Mayor Hanna stated there are other avenues which the Library can take, such as asking the County for additional funding, although it is unlikely to happen. In addition, the Library could go to the public and ask for a half or one mill increase in county -wide property taxes. Another option discussed which is used in Benton County is a voluntary library tax added onto property taxes. Mayor Hanna suggested the City Council encourage the Library to seek help with their funding from other available sources. He fears if the City continues to take from their budget for Library budget increases, other City services will be forced to be cut. Alderman Williams stated they needed a good reason before approaching the public for a millage increase, and he believes the need for a new roof on the Public Library is a good reason. Mayor Hanna requested Staff draft a letter of recommendation to the Library Board stating the City would appreciate their efforts to seek funding elsewhere and place the Library funding on a more equal basis. Alderman Faddoul suggested City Attorney Rose research the voluntary tax approach used by Benton County. City Attorney Rose responded he looked into a voluntary tax approximately three years ago. He stated the terms "volunteer" and "tax" are mutually exclusive, and his research determined there was some administrative costs in collection of a voluntary tax, which would ultimately be a government donation. He further stated a voluntary tax is really nothing more than a public donation; however, this would be governmentally sponsored and sanctioned. December 7, 1992 ooi Rose reported he found a couple of opinions by the Arkansas Attorney General regarding a voluntary tax for private charitable organizations, which states the practice of a voluntary tax might be illegal. Since the Library is already in a position of being a publicly funded entity, these opinions by the Attorney General may not apply to the Library. Mayor Hanna stated he would hate to see a voluntary tax challenged, which could tie up all property taxes, but he didn't believe this would happen with a voluntary tax. Alderman Vorsanger stated the citizens voted to allow the Library to increase their millage, and now is the time for the Library to ask for the increase. Mayor Hanna stated the City needs to urge the Library to make a decision on their funding, which may ultimately force the City Council into making a decision on future budget increases for the Library. In response to Alderman Faddoul's question, Alderman Vorsanger stated this could be put to a vote at the next election. In addition, Alderman Williams stated it could also be a special election. Mayor Hanna stated he would like the,,.Library to present evidence that they have approached the County and requested they pay their share of needed additional funding, and,.what the County's response was to the request. He would like to see how much the County has increased their support,to the Library over the last five years, as compared to the City, as well as .figures showing the County's portion of funding as compared.to the City's portion. In addition, Hanna stated he would like the Library Board to respond to the suggestions they approach the public with either a voluntary tax or a property tax increase. In response to Alderman Faddoul's question regarding who pays for a special election, City Attorney Rose responded the entity seeking the special election would be responsible. Past special elections sought by the City cost from $4,000 to $6,000; a county -wide special election would probably cost more. x k Kevin Crosson stated when funding was denied, Staff's recommendation to the Mayor on the various Library's funding requests totalled approximately $200,000, which included the roof repair, staffing, ADA accessibility,• requirements, and some computerization. Alderman Vorsanger reiterated his concern that the City recently completed renovations on the Medark Building, and a leaking roof in a Library is a serious problem which should be.a high priority for December 7, 1992 the City, or they will have wasted the money already spent on renovations. Mayor Hanna responded the City could budget the roof repair separately, without obligating themselves to yearly budget increases. He asked Crosson whether the County paid any part of the building renovation funding which cost the City approximately $800,000. Crosson responded his understanding is the County did not share in the cost for the Medark Building renovation, but the County's allocation out of the Regional Library Committee is equal to approximately $150,000 per year, or less than one mill of property tax. Crosson further reported discussion with members of the Library Board and a suggestion made that the Library Board approach Washington County in a similar fashion as they have approached the City of Fayetteville year after year, and ask for a one time allocation for these one time capital expenditures. At that time, Crosson was advised that, the Library Board had not made such a request to the County, but they would present the suggestion to the Library Board for discussion. Mayor Hanna stated his concern although the City's budget is currently in good shape, if it weren't for the increasing tax base in Fayetteville, the one cent sales tax passed in 1989, and various millage increases, the City would be facing the same financial problems currently being faced by Washington County. Even though the County needs money badly, they will not vote to increase their taxes. Mayor Hanna stated the City needs to begin watching out for themselves. Alderman Chapman concurred with the suggestion of separating the roof repair from the other funding requests made by the Library, in order for the repairs to be done in the near future, since they could receive a lot of rain and snow before this matter is finally settled. Alderman Williams stated it would be foolish for the City to allow their investment in the Medark Building renovations to be wasted by a leaky roof. Alderman Faddoul stated it is important for them to consider the citizens of Fayetteville use their Library resources more than many other communities. Mayor Hanna concurred Fayetteville's Public Library is a great facility; however, the Library needs to be funded the way it was intended to be funded. Funding for libraries is an ever increasing and common need faced by many communities. December 7, 1992 Alderman Williams stated he would support the request made by Alderman Vorsanger for the City to add $16,000 to their budget for the needed roof repairs to the Medark Building. Mayor Hanna suggested the Council approve the original budget request for the Library, which reflects an increase of $11,000, followed by a special one-time budget allocation for the roof repair. Mayes explained if the City Council is in agreement with Mayor Hanna's suggestion, the one-time budget allocation would be put in the capital fund. .Mayor Hanna suggested the City contact the County and request assistance from them on the required roof repairs to the Library. Crosson stated the City could make a 50% allocation for the cost of repairing the Library's roof,and then request the Library Board approach the County for the balance. Alderman Chapman disagreed with Kevin Crosson's 50/50 suggestion for the reason the County is in a tight financial situation, and as stated by Mayor Hanna, there is a way out of the financial problems, but the County hasn't taken it and probably will not. Therefore, if the City requires the County match their allocation to the Library roof repairs, this action will only eliminate the possibility of repairing the roof, not only to protect the City's investment in renovations, but protecting the Library, which is a valuable resource to the City. Mayor Hanna stated due to the 1993 Budget schedule set out by Ben Mayes, if they want to adjust their budget to allow for the Library roof repair, the Council needs to address the issue at this time. In response to Alderman Williams' question on the procedure for amending their 1993 Budget, Crossonresponded normal procedure would be once there is a consensus -vote among the City Council members, then add the cost for the Library's roof repair of $16,300 to the 1993 Budget, and present the City Council with a list of any changes, credits or debits made to the 1993 -Budget. i Mayes added the Council would be adopting the 1993 Budget including amendments. Alderman Williams further inquired about,the procedure for amending the City's budget in mid -year. Mayes responded there are a variety of methods used to amend the budget. ,The City is projecting to have approximately $100,000 excess for 1993, plus projecting to begin the year with a fund balanceof over $3 million. In addition, the Council, could replace a planned capital improvements project not considered to be as urgent, with the Library roof repairs, or other projects throughout the year. • December 7, 1992 Mayor Hanna requested any known budget changes be addressed by the Council at this time. In addition, he urged Council members to advise either Ben Mayes or himself as soon as possible and prior to the next Council meeting, of any additional amendments to the budget which they wish to make. In the event there are no requests for amendments to the 1993 Budget, Mayor Hanna suggested they announce the December 15, 1992 City Council meeting will be the public vote on the City's budget. Another option available would be to hold a special City Council meeting between now and the first of 1993 for the sole purpose of holding the public hearing and voting on the 1993 Budget. Alderman Chapman asked whether public responses received at past public budget hearings indicated a special City Council meeting on the budget was required. Mayor Hanna responded it is his understanding that in the past, there has been a lack of public attendance at the budget hearing meetings. Mayor Hanna suggested they place the public budget hearing as the final agenda item for their next Council meeting, and if the meeting runs late, table the item and call for a special session on another date. Alderman Vorsanger stated he appreciates the considerations given by the City to the Public Library. He suggested Kevin Crosson follow up with the Library Board on their remaining budget requests and encourage them to seek fair share funding from other sources. Crosson responded as previously directed by Mayor Hanna, he would send a letter to the Library Board which outlined the various funding options available for them to explore. Mayor Hanna requested Crosson further advise the Library Board of the City Council's intention to make a budget adjustment and allocation for repair of their roof. In response to the question of how the Medark Building could have been remodeled so recently, and still have a leaking roof, Mayor Hanna stated the remodeling was done to the interior of the building and linking to the other Library building. In addition, with this type of roof, it is sometimes difficult to detect potential leakage problems. Mayor Hanna further offered the possibility that during renovation, moving supports in the building caused damage to the roof. In response to Alderman Miller's inquiry whether Staff had personally observed the leaking roof in the Medark Building, Crosson stated he has viewed the roof and although it is not crumbling, there is leakage in a couple of locations which are in need of repair. In response to the Library's flat roof, and ADJOURNMENT 685 December 7, 1992 * Alderman Faddoul's question whether replacement of roof is necessary, Crosson stated this is an old, replacement is a better option over repairing. The meeting adjourned at 8:48 p.m. rr a r • • 36.