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HomeMy WebLinkAbout1979-03-05city council minutesBook 20 EXECUTIVE SESSION March 5, 1979 12:00 Noon Page 79 The Executive Session was called to order by Mayor Pasley. The Roll of the City Council was called with the following members present: McCluskey, Olesen, Williams, Raymond, Hopper, and Bauman. Absent: none. (DISCUSSION REGARDING THE CHANGES IN THE COMPREHENSIVE PLAN) Councilman McCluskey stated that at the noon meeting on Tuesday he would ask all of the Council members to strive to come to a mutual and agreeable understanding as to what should be done regarding the controversial problems with the Comprehensive Plan changes that were to be discussed and decided at the Regular City Council Meeting next Tuesday night. (AUDIT EXPECTED FROM TONI MESSURI) The Mayor informed the Council that the Audit for the Recreation Department would be ready to present to the Council next Monday in an Executive Session at 3:30 p.m. (DISCUSSION REGARDING FINANCIAL CONDITION OF CITY) The Mayor explained that as a result of the Finance Committee Meeting last week he had put some figures together regarding the financial condition of the General Fund only. Each member of the Council was given a copy of these figures. He had gone through each Department in the General Fund and listed everything in the budget, plus each individual's salary plus the fringe benefits so they could see the actual cost of each Department and he felt that the cost of the fringe benefits would startle the Council. Councilman Williams stated that she had gone further than this and had totalled the complete salaries and fringe benefits for the General Fund for one year based on the salaries at the present time. She felt that this information was what was startling. She further stated that this information included the Mayor and the City Council. The total salary was $1,026,853.00. The fringe benefits were $251,072.00 for a total of $1,277,925.00. What she wanted to comment on was that when she totalled this and took it out of the estimated revenue, there was not much left. It was all going for salaries. There was eighty -three employees in the General Fund at the present time which included the Mayor and the City Council. Much discussion followed among the Council members regarding these figures. It was pointed out that the anticipated taxes which would be the same for next year would be $986,212.00 and they felt all of that would not come in. It was agreed that the fringe benefits in the next budget should be projected in each Department so that they can be readily seen and understood. For bookkeeping purposes, these could be put in Non- Departmental as it would be easier for the bookkeeping Department. The Mayor stated that he totalled the complete Police budget which was $523,942.00 and the salaries were $431,573.00 with fringe benefits included. The Mayor pointed out that it shows on one page of the breakdown that there was three patrol units leased and the leases would expire in July; also four cars, including the Chief's where the leases expire in July, 1980. The narcotics car was leased on an annual basis which they change about every month. The total Police budget ran over $500,000.00 a year which the Mayor stated he did not realize was as high. When you take Book ZU Page 80 the salaries out, the actual budget was not very high. The Mayor pointed out the totals on the last page which showed a grand total on a twelve month basis for General Fund budget at $1,853,000.00 and the estimated income was $1,800,000.00 so the City was shy $53,000.00. One of the existing problems was that there was only $14,000.00 cash on hand on October 1, 1978, in the General Fund. This was after paying the September bills that were back dated. The City should have on hand on October 1, 1979, $516,000.00 to run the City through October, November, and December so that the City would not have to draw on the tax money as they had to this year. This year, including January payroll in the General Fund alone, the City had to use $276,700.00 of tax money to pick up loans to operate the General Fund until the taxes came in. There was nothing illegal about this and if not faced with the 1% and could have an orderly liquidation of this over -- several years, the City could do it without taking extreme measures, Because next year the City would be limited to $1,535,000.00 tax income for all Departments, some cuts would have to be made. A year from this October, the City would have to live on the 1 %. It was the Mayor's recommendation that a reduction be made of five people in the Police Department, three people in the Fire Department one in the Building Department, one in the General Office, and one in the Engineering Department. For six months, and just taking the people in the lowest brackets, that would pick up $66,000.00. These reductions would be effective on April 1st. He further said that it probably would not be this much as he did not figure in accumulated vacation time. Councilwoman Williams asked if the plan would be to add three volunteers to the Fire Department if the three were reduced in that Department. The Mayor answered that they would have to. The Mayor stated that if his recommendation met with the approval of the Council, he felt that the proper thing to do would be to call the Department Heads in tomorrow morning and inform them of the decision and ask them for their help and cooperation in implementing the program. The Department Heads would have to make the decision as to what personnel would be affected. He also said that they would probably have to talk to the Union immediately thereafter. It was provided in the Firemen's Union that the City can reduce the number on the payroll if there was financial problems. Councilman McCloskey stated that the recommendations should be settled in all of their minds before going ahead with procedures. He felt that the Council would have to give the Mayor the go ahead and then he would proceed from there. He also pointed out that much more money was going to be required than the $66,000.00. Councilwoman Williams said that more cuts would have to be made the first of October as there was no way they could support it at this time. Much discussion followed as to where reductions can be made. The Mayor stated that there was reduction possibilities with regard to programing, personnel training, there was $10,000.00 set aside for a fire truck and $5,000.00 for a new car in the Fire Department. All of these could be cut or reduced. Councilwoman Williams stated that she would hope that everyone in the City would hold their buying down as much as they possibly can. Councilman McCloskey pointed out the possibility of having some local accounting firms looking at the City's office structure with the thought of leasing them our equipment and have them make a Book 20 Page 81 comparison as to what the costs would be if they were responsible. This would be just to see if there was a big difference in the cost factor here. He felt that the City was going to have to look at every possibility and should consider what could be farmed out to the public sector where the City would not make a profit. Councilman McCluskey also mentioned the possibility of putting in business licenses. Again, the discussion was lengthy among the Council members. It was agreed that the situation was drastic, but that they would hope to get it started now and do it gradually. Councilman McCluskey pointed out that he felt the City could request that the detective work in the Police Department be done by the County. He felt that the City should handle nothing but minor crime as the State Law states that the County should be responsibility for major crimes; in other words, the Sheriff's Office. It was agreed that this should be considered. Councilman Olesen stated that he felt that the Department Heads should come back to the Council with their recommendations as to what reductions should be made and possible suggestions as to where cuts in cost could be made. The Mayor felt that the Department Heads should be the ones to make the decision as to what personnel should be cut. Councilwoman Williams felt that the Council should be informed as to what possible services might be eliminated. Councilman Hopper brought out the fact that he felt the Council should address the whole thing; in other words, consider every Department. Councilman McCluskey said that they will consider every Department, but at this time the General Fund was the biggest problem and should be considered first. The Mayor stated that all other tax funded Departments would: be considered next and that they should leave the Enterprise Funds until last. Councilman Hopper still felt that all the other Department Heads should be told that they would be addressed in the near future. The Mayor stressed that if it was the concensus of the Council to operate with fewer people, he would urge them to get started on it right away. Discussion continued with the possibility of increasing some of the license fees such as animal licenses and pound fees and encouragement be given for people to buy bike licenses. Also discussed was the possible increase in Building Permits which the Mayor stated the UBC was going to enforce soon. Engineering fees were also discussed as the City Engineer spent a great deal of time giving free advice. Serious consideration was to be given to starting Business Licenses and the Clerk was asked to check into what other cities were doing in the State. The City Council discussed further different possible methods of getting further revenue and if some of the services that were given by the City at this time were of importance. MOVED by Williams, SECONDED by McCluskey that the City Council approve the recommendation of the Mayor that a reduction be made of five people in the Police Department, three people in the Fire Department, one in the Building Department, one in the General Office, and one in the Engineering Department and ask the Department Heads if they have any other ideas as to how to save money or as to where cuts can be made between now and the first of October. Roll call vote. Those voting yes: Williams, Raymond, Hopper, uoox GU Page 82 Bauman, McCloskey, and Olesen. Those voting no: none. Absent and not voting: none. MOTION CARRIED It was agreed that the Mayor would ask those Department Heads involved to meet in the morning to explain the situation to them. This would be at 9:00 a.m. in the morning. Councilman McCluskey asked permission from the City Council to approach or feel out a couple of Accounting Firms to see if there was any interest at all in an outside accounting firm doing some o.f the office work. The Mayor stated that no tax funds could be contracted out; the billing service was one that could be. Council agreed that he could look into this. There being no further business, the meeting was adjourned at 5:15 p.m. APPROVED AS written THIS 20th DAY OF March 1979. Mayor Counc lm n 'o nci an / GCoun il6 Councilman Colman ATTEST: City Ci�-'rk