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HomeMy WebLinkAbout1994-08-22city council minutesBook 35 Yage 208 SPEC.. - 2L CIT COUNCIL MEETING August 22, 1994 7:30 n.m. The meets..ng was called to order by Mayor Winder. The Mayor retxuested that eve�-yone stand for the Pledge of Alleg.`Lance to the Fiaa. The Roll_ of th_ City Council was c,; l_led with the following members present: Raymond, Earl., Nancolas, Lancan, Carpenter, and Houchins. Ahsent: none. (PUBLIC HE2l=_�TGS ON TRUTH X�ID TAXAT1O3>T AND THE PROPOSED BUDGET FOR 1994 -9F) Mayor Winder welcomeda the public to t::iln meeting which was called for t1_c�� purpose of two -public bearings . One ysas dealing with Tr_.t.h and Taxation =_aw which the Legislature: passed several years ago. This La requires that in the event the taxing body wants to increase ad valorem tax revenues by more tha ~ " one hnr dred and five percent, the public has to be notified and a public heari_ held to allow comment from the citizens. The second hearing was a public ]gearing ._ egarding the 1995 budget which begins on October 1 , 1994, and runs through Septemi.er 30, - -995. A Tanlative "adget was adapted on T-Lt, gust 1, 1994. 73t tonigh ". ' s mea'I- ing, he Co ncil ca.n reds ce t11e expenditures under the ':'entative Budget, but they cannot increase the expenditures. The Mayor presented background informa: on he process followed by the Council in developing the budget. 07" April 11, 1994, a work session was held to begin the process and. to p -ra -sent a.n opportunity for Department Heads and t a public to understand the Council's ideas with :regard to the budget. It was suggested that ce guideli -.es be used by Departmen'�t Heads as they c,eveloped . their bu6gets. F_i_rst o% all, it was made clear that the City Council establishes the fiscal policies that the Mayor and Departmen'_ Heads carry ol_It on a day to day operation of the City. To have a sig nificant impact on expenditures, L'n2 Department ea -ds were. asked ',.o eithe- reduce programs or perscn,el. One of trie Mayor` s. goals was to c.stabli s'ia. the 7 ?epartm zzt He ac. ,s as :,1eing responsible and acco..ntable for their budget, programs, and far their employees. Mayor Winder continued stating ti.at the '- axpayers were the City's customers and th(: employees were here to serve them. As Mayor, he was responsible for the e *r:ployees and he would recommend that no additional % 11 time employees be hired during this ccm:i_ng fiscal year. A three percent across the. board salary adjustment was proposed. This would stil not bring the City employees up to the increase in the cost of living as they would still be about two to three percent behi cH . A three percent meri.t was also discussed by the Council to allow employees who were doing a better job to receive a merit: pay. Unfortunately, two percent of that had to 'be cut to be used in the health care area. However, one percent ti•;a.s retained. He continued stating that the Cite needs to bring their infrastructure to an acceptable level and in order to do so, w:� have to inc. fees in the sewer and wager. areas i_n part i.cular. Much of the increase, in the. property tax this year vaas goina, to go into the street and other related programs. Destination 2020, wh�.ch is Book 35 a twenty -five year strategic plan, is underway. Input from the citizens is being requested. In summary, the Mayor said that he was asking that the budget be a customer driven budget, that Department Heads be responsible for their employee's budgets and programs and to achieve success by managing their departments more effectively and involve their employees, provide better services to the citizens, that Council participate by establishing broad policies in many areas that will help manage the City in a better manner. The budget was prepared by a team consisting of the Finance Director, the Mayor's Assistant, all Department Heads, the Finance Committee of the Council and all the members of the City Council. Mayor Winder outlined his recommendations to the Council as follows: 1) City Council accept his recommendation of no new full time employees during 1995; 2) accept recommendation regarding uniform allowance; 3) accept recommendation regarding Independent Contractors and use new agreement developed by the City Attorney; 4) consider health care benefit changes; 5) consider A.D.A. budget; 6) establish a policy reducing the amount available to Departments for dues and subscriptions by 25 percent; 7) establish a policy regarding vehicle purchases so that all purchases to be approved by the Mayor before a purchase order is produced; 8) he reduced his own expenditures by reducing the salary for the Administrative Assistant and did not have the annual Rodeo Dinner this year; 9) consider specific budget reductions as proposed by Members of the City Council. At the conclusion of the Mayor's comments, Councilman Houchins presented some recommended reductions for 1994- 95 budget. The recommendations were attached as part of the record as Exhibit A. The total reduction without considering a reduction in furniture, travel and senior tours was $88,215. The Finance Director and Treasurer reviewed the proposed budget and informed the audience that packets were available at the staff table. Before the Public Hearing was opened, Councilman Raymond suggested that the two hearings be combined since it would be difficult to separate the two items. The City Attorney stated that he did not find anything in the statutes requiring that two separate hearings had to be held. Mr. Morrow did suggest that those participating in the testimony identify whether they were addressing the Truth and Taxation or the proposed budget. Mayor Winder opened the Public Hearing. The following people testified during the hearing: Lenore Johnson, 2420 Terrace Drive; Bill Gilbert, 11476 East Linden; James Moore, 816 Bushnell; Wayne Hopper, 604 East Logan; Larry Jensen, 922 Teton; Eugene Spencer Smith, 1318 Beech; and John Tegge, 610 South 3rd. Those testifying discussed how the City funds should be expended including monies for Old Jefferson, the handicapped parking, and updating City maps; the insurance coverage for employees; funding of weed control; the diseased trees that need to be removed; deferred maintenance becoming a problem, that citizens want their money spent wisely, and the increase in taxes. Page 209 After the comments from the audience, the Mayor informed Council that they consider passing the Resolution to increase the City of Caldwell's annual ad valorem budget Book 35 or levy. This Resoluticn needed to be done within two weeks of the date of this hearing. The budget has to be adopted before September 12th. Councilman N'ancolas commented that Mr. Houchina and Mrs. Earl have made some good suggestions to decrease the budget. However, in accordance with the Mayor's desire for Department Heads to manage their departments, he would suggest that they be able to have a voice in the decision: as to further cuts in their departments. Page. 21.0 Councilman Raymond also commented that the Mayor stressed earlier in the yea that Department Heads would be responsible for running their_ Departments. He stated that he was not comfortable in taking the responsibility of cutting the budget wii:hout - receiving input from the Department 'leads. They could then bring back to the City Council any concerns they might have and whether they agreed with the cuts in their budget. He would recommend that the items listed by Councilman Houchins and Councilwoman Earl be referred back to the Departments for specific comment and then back through the Mayor before the hudget was adopted. Further, he would. like more discussion on the uniform policy since it would save some money. He felt the policy could be a little more refined. With the Mayor's philcscphy, Council's diligence in working on the budget, with Department Heads understanding that i_f you don't need it, don't. spend the money, we can save the taxpayer's moncv. Council Members made further comments stating that the budget has been thoroughly studied this year with a lot of Staff involvement; possibility of exploring the idea of the thirty percent who do not pay property 'tax being charged for City services; how the citizens cf Caldwell want to see their City grow; further agreement that the decreases in the budget should be reviewed by the Department Heads. Carol. Howell, Accounting Coordinator, updated the City Council on the health insurance benefits for the City employees. Mrs. Howell reviewed a me submitted to the Mayor and Council i- ncludina changes in dependent coverage, change in the deductible, and preventive coverage. It was Council's consensus that the dependent coverage be thirty percent or ti -eir present amount, whichever was greater and that ..he change in the deductible begin on January 1, 1995. Also agreed was .immunizations ions w'.th a ten dollar maximum. In addition, there was discussion with regard to retired City employees who were still on the City's insurance as long as they pay the premium. It was agreed that some research needed to be done on this issue. Mrs. Howell stated that she would do so and report back to the City Council. The Finance Director reminded Council that they agreed to meet in March of next year to review the insurance program for the employees. Mrs. "Thompson talked briefly to the City Council about A.D.A. She explained that no one was responsible for A.D.A. this year. However, there was $30,000 in the budget this year and projects scheduled were nct accomplished. Mrs. Thompson suggested that the City Council take official action at the next meet...ing to transfer this $30,000 into another fund such as the H.U.D. fund. The motion would need to specify what t1e money was for and consider the money as dedicated. funds. Mrs- Thompson also informed Council that another motion would be with regard to closing the Internal Services Fund and how to distribute the deficit. Book 35 Mayor Winder stated that he would like to discuss the clothing allowance. The City Council asked that a recommendation be prepared with regard to the clothing allowance. It was suggested that Fire, Police and Water be included in an allowance and the Mayor to have some discretion as to who should be provided safety boots in other departments. There were further comments about the safety boots. Councilman Houchins stated that some of the job descriptions do not indicate a need for safety boots. In the private sector, a new employee was required to have the proper equipment or clothing before beginning if it was a requirement. Councilman Raymond again referred to the fact that the Department Heads have not been heard from. Early in the budget process, it was determined that the Department Heads would be responsible for their budgets. Therefore, he would like to hear from them as to their needs and why. Mayor Winder informed Council that another recommendation the Council needs to take action on was the request for no full time employees to be added during 1995. The Council agreed to this recommendation. He also requested a consensus from the Council with regard to acceptance of the form for Independent Contractor's Agreement. Council also agreed to this recommendation. MOVED by Nancolas, SECONDED by Earl to close the Public Hearing on Truth and Taxation and the proposed budget for 1994 -95. Roll call vote. '.Those voting yes: Nancolas, Langan, Carpenter, Houchins, Raymond, and Earl. Those voting no: none. Absent and not voting: none. MOTION CARRIED The Resolution was read by the Mayor as follows: WHEREAS, Proper public notice has been given and public hearing held pursuant to the provisions of Section 63 -2224 through and including 63 -2226, Idaho Code; and WHEREAS, The City Council of the City of Caldwell has determined a need to increase its annual ad valorem budget or levy. THEREFORE, BE IT RESOLVED That the City of Caldwell requests an amount of ad valorem tax revenues for its 1994 -95 fiscal year annual budget that exceeds one hundred five per cent (105 %) of the amount of ad valorem tax revenues certified for its annual budget in the previous year or increases the tax rate in excess of that certified in the previous year. MOVED by Carpenter, SECONDED by Langan that the Resolution as presented by the Mayor be passed. Roll call vote. Those voting yes: Carpenter, Houchins, Raymond, Earl, Nancolas, and Langan. Those voting no: none. Absent and not voting: none. MOTION CARRIED Page 211 The Mayor stated that the appropriation ordinance would be presented for consideration at the next Regular City Council Meeting scheduled for September 6th. At the same time, the ordinance to establish Capital Improvement Fund will also be considered. Book 35 MOVED by Earl, SECONDED by Raymond that since there was no ;7urther business, the Meeting be adjourned at 9:45 p.m. Roll call vote. Those voting yes: Earl, Na.ncolas, Langan, Carpenter, Houchins, and Raymond. Those voting no: none. Absent and not voting: none_ MOTWON CARRIED Pztae 212 APPROVED AS written _ THiS 6th DAM OF Sept. , 1994. Mayor Coun 'cilperson Ccuncilperson Ccun.cilperson City Cler ATTEST: