| Date: | January 28, 2011 |
COUNCIL RETREAT
The Council Retreat was held on January 28, 2011 at 9:00 a.m. with Council President Hogan presiding. Council members present were Mr. Bonar, Mr. Leary, Mr. McGiffin, Dr. McGlumphy (departed at 2:45 p.m.), Mr. Ruane, Mrs. Russell, Mr. Salters, and Mrs. Williams (arrived at 9:14 a.m. and departed at 2:45 p.m.). Mayor Carey was also present.
Council staff members present were Mrs. Mitchell, Mrs. Townshend, Mr. DePrima, Mrs. McDowell, and Ms. Devine. Mrs. Tieman was also present.
INTRODUCTION AND WARM UP - WHY ARE WE HERE?
Mr. Anthony DePrima, City Manager, reviewed a Presentation - Why Are We Here? (Exhibit #1), noting that members would have the opportunity to validate the City’s Vision, Critical Success Factors, and Mission Statement; validate current and pending initiatives; and discuss budgetary goals. He reminded members that last year’s Retreat was different from previous sessions since it strictly focused on the City’s budget; however, staff requested that this year, as in previous sessions, members brainstorm/develop new ideas and programs for upcoming years. In addition to reviewing accomplishments and setting priorities for the City’s future, Mr. DePrima stated that, similar to last year, staff would be presenting an estimate for next year’s budget, emphasizing that this would be an early estimate that would allow Council the opportunity to provide staff direction. He advised members that Mrs. Donna Mitchell, Treasurer/Controller, would be presenting options for financing capital projects. Mr. DePrima stated that, later in the day, members would have the opportunity to review the City’s Mission Statement to determine if revisions are necessary.
WHERE HAVE WE BEEN?
At the request of Mr. DePrima, members relayed their perceptions of City accomplishments during the previous year, as follows: 1) improved snow removal plan (DePrima); 2) improved development of downtown (Salters); 3) significant improvement in reliability of electric service (McGlumphy); 4) better public notification - weather (Russell); 5) Solar Park - first tenant Garrison Park (Ruane); 6) completion of Governors Avenue (Ruane); 7) reassessment (Ruane); 8) bond rating improvements - all funds upgraded (Ruane); 9) Transit Center (Ruane); 10) police response/domestic violence (McGiffin); 11) progress on the new library (Hogan); 12) improvement in customer service by Planning/Inspections (Hogan); 13) improvement in “slum” landlord enforcement (McGiffin); 14) improvement in Planning - quicker process (Hogan); 15) environmental stewardship - Cool Cities, LED lights, change of fuel, etc. (Ruane); 16) proactive response by City Manager and Public Services Director - abandoned developments (Ruane); 17) improved e-services (Hogan); 18) quarterly newsletter (Russell); 19) employee cooperation (furloughs, hiring freeze, etc.) in difficult times (Ruane); 20) implementation of recycling program (McGiffin); 21) downtown security cameras (Mayor); 22) Youth Advisory Committee (Russell); 23) starting up Health Benefits Committee (DePrima); 24) Government Accounting Standards Board (GASB)/City policy compliance (Leary); 25) fewer brown water complaints in the 3rd District (McGiffin); 26) completion of Route 13 sewer interceptor (Ruane); 27) commitment to fixing infrastructure - water/sewer (Ruane); 28) Interfaith Homeless Shelter - community spirit (Russell); 29) downtown merchant/police cooperation (Mayor); and 30) increasing professional development/certification (Ruane).
By unanimous consent, members took a brief recess.
Meeting recessed at 9:50 a.m. and reconvened at 10:04 a.m.
WHERE ARE WE GOING?
At the request of Mr. DePrima, members relayed ideas that they felt the City should consider for the future, as follows:
Broad Outcomes
1. Improve Public Safety - Gang Activity (McGiffin)
2. Keep Up to Date with Enforcement of Abandoned Properties (Leary)
3. Keep Revenues Up with Costs (Ruane)
4. Continue Updating and Improving the Charter (Hogan)
5. Increase and Intensify Economic Development Initiatives (Bonar)
6. Improve/Mend Relationships - Kent County, Chambers of Commerce, Kent County Partnership, State of Delaware, etc. (Williams)
7. Secure Electric Generation - Next 20 Years (Ruane)
8. Secure Ownership of Electric System (Bonar)
9. Strategic Funding of Economic Development (Mayor Carey)
10. Continue/Increase Support of Cultural Arts (Salters)
11. Contain Cost to Meet the Current Revenue Base (Williams)
12. Continue Efforts to Meet/Change the Pension/OPEB (Ruane)
13. Increase Affordable Housing (Ruane)
14. Create Partnership with County for Joint Programs (Hogan)
15. Contain the Size of City Government (Williams)
16. Stop Continued Duplication of Services (Williams)
17. County Property Tax Relief for City Residents (Ruane)
Specific Actions/Programs/Projects
1. Continue Pressing of West Dover Connector (Ruane)
2. Support Youth Mentoring (Salters)
3. Recreation - Support Youth Development (Salters)
4. Increase Police to Appropriate Level (Salters)
5. Implement Recommendations of Joint Legislative, Finance, and Administration and Safety Advisory and Transportation Committee (Hogan)
6. Support Family Support Programs (Russell)
7. Stay Fully Compliant with Current Financial Standards/Government Accounting Standards Board (GASB)/City Policies (Leary)
8. Local Delaware Economic and Financial Advisory Council (DEFAC) Group (Ruane)
9. Go to Accurate Multi-year Budgeting (Ruane)
10. Collaborate More with Delaware Economic Development Office (DEDO), League of Local Governments, and Kent County (Bonar)
11. Amend Charter to Address Annexation of Enclaves (Hogan)
12. Re-examine the Authority and Scope of the Historic District Commission (Leary)
13. Create a Strategic Loan Fund for Economic Development (Carey)
14. Review the Dover Housing Authority and Its Relationship to the City (Salters)
15. Ensure Fair and Impartial Redistricting (Ruane)
16. Re-examine Consent Decree on Minority District (Ruane)
17. Reduce Tax Delinquency - Step up Tax Sales (Bonar)
18. Improve Minority Recruitment Efforts (Salters)
19. Complete the Library (Ruane)
20. Support Drug Abuse Rehabilitation Programs (Russell)
21. Address Issues/Provide Remedies for Abandoned Developments - Utility Committee Recommendation (Ruane)
22. Establish Random Drug Testing Program for All Employees (Russell)
23. Establish an Ethics Hotline (Leary)
24. Review Council Benefits (Salters)
25. Explore Term Limits for Members of Council (Hogan)
26. Explore Length of Terms for Members of Council (Bonar)
27. Present State Legislation to Implement Local Service Function Budget for Kent County (Ruane)
By unanimous consent, members took a brief recess.
Meeting recessed at 10:50 a.m. and reconvened at 11:11 a.m.
WHAT ARE OUR PRIORITIES GIVEN THE CURRENT FISCAL CONDITION?
In reviewing the ideas developed by members, Mr. DePrima requested that each member indicate their priorities by selecting six (6) of the 17 ideas listed under “Broad Outcomes” and nine (9) from the 27 “Specific Actions/Programs/Projects” list.
(Members voted from 11:14 a.m. to 11:23 a.m.)
Upon completion of the ranking exercise, Mr. DePrima advised members that the City Clerk’s Office would type the lists (2011 Council Retreat Votes) (Exhibit #2) and provide them to members of Council. Mr. DePrima stated that he and Mrs. McDowell, City Clerk, would review the prioritization list. He noted that some of the ideas would be relatively easy to implement; therefore, some ideas that were not highly ranked will be addressed. Mr. DePrima advised members that the prioritization list will be provided to department heads to obtain their feedback. He stated that some items may be referred to the appropriate committee for review and recommendation to City Council. Mr. DePrima indicated that some of the “broader” items would require more thought and time for consideration.
Glancing at the rankings for the “Broad Outcomes,” Mr. DePrima noted that Items #1, #8, #12, #10, and #11 were ranked highly, and Items #1, #18, #15, #16, and #7 were ranked highly on the “Specific Actions/Programs/Projects” list. He reiterated that items that received only a few votes would not automatically be discounted.
ARE THESE STATEMENTS STILL VALID?
Mr. DePrima requested that members review the City’s Mission Statement, Vision, and Critical Success Factors for possible revision.
Mission Statement
In reviewing Page 3 of Exhibit #1 - Why Are We Here?, Mr. DePrima questioned if any changes to the City’s Mission Statement were needed. He advised members that the current Mission Statement is as follows:
It shall be the mission of the City of Dover to advance the following policies and projects however and whenever possible:
Quality of Life
Establish a Regional Library in Dover
Promote Homeownership and Affordable Housing
Strengthen Property Maintenance and Enforcement
Support the Building of the Inner City Cultural Center
Infrastructure
Maintain and Improve the City’s Infrastructure and Implement Brown Water Solutions
Implement Plan to secure Electric Generation for the Next 20 Years
Economic Development
Implement Economic Development Strategy (Garrison Tract Development and Downtown)
Council President Hogan suggested the addition of a general statement such as “Improving Public Safety” to the Quality of Life category. Mr. Ruane noted that the meaning of Infrastructure is not clearly explained, and suggested the addition of Road and Transportation Improvements, which are critical to the City’s infrastructure.
Vision
There were no changes suggested for the City’s Vision, which reads as follows: “The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.”
Critical Success Factors
Mr. Bonar suggested that staff “wordsmith” the Critical Success Factors to create an acronym for a word such as “success,” “capital,” or “relocate,” which would provide the City with a tool to improve its image.
The City’s Critical Success Factors were stated, as follows:
With these, we can achieve our Vision . . .
Customer Satisfaction and Effective Community Communication
Employee Satisfaction and Effective Employee Communication
Cost and Revenue Efficiency
Improve Downtown and Surrounding Neighborhoods
City Wide Safety
Economic Development and Job Growth
Dr. McGlumphy suggested that the Critical Success Factors relate to the Vision Statement, noting that the phrase “diversity is valued” is included in the City’s Vision; however, there is no mention of this in the Critical Success Factors. He suggested that diversity be added, explaining that the City’s workforce should be representative of the City’s community.
Mr. Ruane suggested that the word “performance” be included in the sentence “Employee Satisfaction and Effective Employee Communication.” He also felt that the phrase “Cost and Revenue Efficiency” is too narrow.
Mr. Leary felt that diversity is a global issue that pertains to economic development in the entire community. He suggested that all sectors of the community should have the ability to participate and that a general tone and tenor be set to encourage diversity as it relates to the economic environment.
By unanimous consent, members took a recess for lunch.
Meeting recessed at 11:59 a.m. and reconvened at 1:04 p.m.
THE NEXT BUDGET
Mr. DePrima reviewed a Presentation of the City’s Budget (Exhibit #3) and re-emphasized that the version of the budget presented was very preliminary and is intended only to be used as a tool.
Responding to Mrs. Williams regarding the salary increase assumptions, Mr. DePrima stated that salaries were based on an average of the union contracts plus an additional 1% for pay-for-performance.
Mr. DePrima noted that the additional $619,029 in revenues is the result of additional funds from the red light photo enforcement program and franchise fees. He stated that the estimated transfer tax is projected at $1.4M for this year and $1M for next year.
In response to Mrs. Williams, Mr. DePrima confirmed that staff will limit the Capital Investment Program (CIP’s) to the $1M projected revenue. In order to accomplish this, he noted that some projects, such as parks and playground maintenance and splash pad design, have been deferred. Dr. McGlumphy requested that staff provide a list of projects that have been deferred.
Responding to Mr. Ruane, Mrs. Mitchell stated that none of the models have been updated for utility revenues or expenses to determine if the City meets bond covenants. She reminded members that the models presented last year included assumptions for the “out” years. Mrs. Mitchell requested guidance regarding those assumptions, explaining that annual department expenses were set at 3.5%, retiree medical insurance was set at 6%, etc. She explained that staff would like direction as to whether members of Council feel that these assumptions should remain the same.
Mr. Bonar requested that staff provide members with the most recent assumptions to help determine if there should be a change in this regard.
Referring to the estimated percentages for rate increases, Mr. Ruane requested that, in addition to the percentages, staff provide actual amounts, which he felt would provide a better understanding.
Mrs. Williams referred to the Kent County Sewer Treatment Adjustment and requested that staff provide members with the number and percentage of pipes that have been repaired/replaced. Responding, Mr. DePrima indicated that, although there have been several sewer pipes replaced, the actual pipe repair/replacement program will begin in February.
Mr. DePrima encouraged members to consider ways in which the City can become less dependent on projected transfers and instead, relate its capital expenses to money already collected from the previous year (referred to as the “Seaford Method”). He explained that when transfer tax first began in Seaford, it was not utilized during the year it was collected and, from that point on, the City of Seaford began basing capital expenses on the amount of transfer tax received. He noted that Mrs. Mitchell would discuss this approach during a presentation to be provided later in the session.
Responding to Mrs. Russell regarding Pay-As-You-Go Water Load Station (Customer Service) on Page 12 of Exhibit #3 - Presentation of the City’s Budget, Mr. DePrima stated that there is a pipe near the City’s Warehouse that contractors utilize to fill-up tank trucks with water for their projects. He indicated that, currently, there is an honor system in place and no way for the City to ensure that the water is being paid for. Mrs. Tieman explained that a meter is going to be installed that will require payment prior to water being released.
In response to Mr. Salters, Mayor Carleton Carey explained that he has tried to secure grants for Downtown Security Cameras for the last three (3) years. He stated that the first cameras were funded by unexpended Parking Authority funds. He also reminded members that he has maintained a reduced budget the last two years but has continued to add cameras in critical locations with the available funds.
Referring to Page 13 of Exhibit #3 - Presentation of the City’s Budget, Mrs. Tieman noted that the Generator for Public Services - Life Safety, in the amount of $17,500, has been removed.
Mr. DePrima reviewed the Budget Model (Exhibit #4) and reminded members that it included large assumptions but that changes could be made.
Council President Hogan requested that staff include another column, modeled with the transfer at $7.25M, with the next column being the $8.856M. In addition, he requested that staff make corrections so that all columns extend across into the blue lines for consistency.
Mr. Ruane suggested that the model include alternatives for the use of the transfer tax for Council’s consideration.
Elaborating on the request of Council President Hogan, Mr. Leary suggested that a column be added that would represent the amounts required by policy to include expenses (actuarial recommendations) as well as revenues. Responding, Mr. DePrima stated that staff could develop a Budget Model to reflect policy only, with no assumptions (Full Policy Run).
Responding to Dr. McGlumphy, Mr. DePrima explained that the base budget is $38M, which does not include property tax increases, and that the model provides different scenarios for Council’s consideration and direction.
By unanimous consent, members took a brief recess.
Meeting recessed at 2:45 p.m. and reconvened at 3:01 p.m.
FINANCING CAPITAL PROJECTS
Mrs. Donna Mitchell, Controller/Treasurer, reviewed a Presentation of Capital Project Financing - Governmental Funds (Exhibit #5).
Responding to Council President Hogan, Mrs. Mitchell confirmed her opinion that the City should consider utilizing bond issues to complete capital projects. In addition to the $1.3M that is currently required for the Library Project, it was her feeling that other projects, such as infrastructure and streets, could benefit from this approach. Mrs. Mitchell explained that there are issuance costs on every debt service; therefore, the City must be sure to receive all benefits for the costs of the bond issue.
In response to Mr. Ruane, Mrs. Mitchell stated that due to the current interest rates and the economic environment, this would be an ideal time to consider a bond issue, and suggested a minimum of $3M for such a bond issue.
Mr. DePrima noted that, although some funds are provided by legislators for street improvements, there are several main roadways in need of repair, and he felt that a bond issue could help the City complete these projects as well as a number of building projects, including renovations to the Council Chambers to make it handicapped accessible.
Responding to Council President Hogan, Mrs. Mitchell stated that her recent calculations, based on the annual debt service, revealed that the amount of bonds that can be issued is limited to $7.2M.
After much discussion, it was the consensus of members that staff should formulate a recommendation regarding a bond issue to be presented to the Legislative, Finance, and Administration Committee during their second meeting in March.
By unanimous consent, Council President Hogan declared the meeting adjourned.
Meeting adjourned at 3:28 P.M.
Respectfully submitted,
Kenneth L. Hogan
Council President
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Exhibits
Exhibit #1 - Presentation - Why Are We Here? (Attached to Original Minutes and File Copy)
Exhibit #2 - 2011 Council Retreat Votes
Exhibit #3 - Presentation of the City’s Budget (Attached to Original Minutes and File Copy)
Exhibit #4 - Budget Model (Attached to Original Minutes and File Copy)
Exhibit #5 - Presentation - Capital Project Financing - Governmental Funds (Attached to Original Minutes and File Copy)