SPECIAL COUNCIL MEETING
A Special Council Meeting was held on April 6, 2009 at 5:30 p.m. with Council President Hogan presiding. Council members present were Mr. Leary, Mr. McGlumphy, Mr. McGiffin, Mr. Ruane Mrs. Russell (arrived at 6:01 p.m.), Mr. Slavin, Mr. McGiffin, Mrs. Williams (arrived at 6:02 p.m.), and Mr. Salters (departed at 7:09 p.m.).
Council staff members present were Mr. DePrima, Mrs. McDowell, and Mayor Carey.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda as presented, seconded by Mr. Leary and unanimously carried.
REVIEW OF SELECTED GENERAL FUND DIVISION BUDGETS FOR FY 2009/2010
Mr. DePrima, City Manager, explained that the meeting had been scheduled in response to a suggestion by members of Council that the budget review process begin at an earlier date this year, with consideration of some of the smaller departmental budgets. It was felt that this would allow adequate time for review of the larger and more complex budgets during the regular budget review period.
Mrs. Tieman, Senior City Administrator, reviewed a presentation of the Draft Budget for Fiscal Year 2009-2010 for the Selected Divisions, highlighting the changes from the previous year’s budget (Exhibit #1). She stated that salary budgets were not included at this time, as they remained tentative and could not be determined until revenue figures are available. She stated that budget levels were held to the same level as the FY 2009/2010, with the exception of computer hardware replacement (which was deferred last year), items deemed strategic or necessary, and capital expenditures. As a whole, she stated that budgets presented for 2010 are reduced 2% for operating expenses (excluding salaries) and capital expenditures are increased 13%.
Mrs. Tieman presented information on each of the selected departments as follows:
Mayor’s Office
In the FY2009/2010 Budget, the budgeted amount for materials and supplies remains stable, administrative expenditures are increased by 8%, and operating expenses (excluding salaries) are increased by 8%. Capital outlay includes $122,000 for equipment purchases, including security cameras for downtown areas, an automobile purchase in the amount of $19,528, and contractual services in the amount of $4,486 for a radio paging system for emergency alerts. All of these expenditures were items that were deferred last year.
In response to Mr. Leary, Mrs. Tieman explained that expenditures labeled “strategic” are items that are over and above what were budgeted for previously. Mr. DePrima further clarified that strategic items included new programs that are being considered to solve problems that the City is trying to address.
In response to Mr. Ruane, Mrs. Tieman stated the other equipment purchase for $122,000 would be moved from the base budget to the strategic budget.
Mayor Carey explained that the request for three (3) surveillance cameras, costing $63,000, for the Selected Downtown Areas was removed from the FY2009 budget. Due to completion of a new parking lot on the Minor Street Alley, he requested that six (6) cameras, costing an additional $59,000, be purchased in FY2010. He also noted that the cost of maintenance and long-range replacement were not included in the total estimate of $122,000. He emphasized that the downtown Dover merchants have repeatedly reiterated to him the importance of this equipment to deter crime and aid in criminal investigation.
Mr. Salters acknowledged the importance of surveillance cameras; however, due to the economic downturn, he recommended the purchase of three (3) cameras instead of six (6).
In response to Mr. Slavin, Mayor Carey stated that the proposed travel budget was increased by $3,000 from $4,000 to $7,000 for a trip to Iwanuma, Japan. He also indicated that $5,000 was removed from the advertisement fund to offset the cost. He stated that the trip is a courtesy visit to reciprocate visits by the Japanese and there would be no additional impact if he did not attend.
Responding to Mr. Ruane, Mr. DePrima stated that Kent County Tourism funds will be transferred to the Economic Development Budget.
City Council
Mrs. Tieman stated that the line item for materials and supplies was increased due to the replacement of seven (7) laptop computers per the lifecycle replacement program. Administrative expenses were reduced by 8%, and total operating expenses, excluding salaries, were increased by 38%, again related to the purchase of the laptop computers. She explained that the computer hardware purchase was deferred from the FY2009 budget to the FY2010 budget and that anyone who was scheduled to receive a new computer last year will receive one in FY2010.
Mr. Ruane noted the importance of having a laptop as a way to communicate with constituents and to download the paperless packets.
City Manager
The amount budgeted for supplies has increased by 8% due to the purchase of a laptop and printer per the lifecycle replacement program. Administrative expenses are decreased by 15%. Overall operating expenses, excluding salaries, are reduced 10%.
Mr. Callan explained that many of the purchases earmarked through the lifecycle replacement program are expenditures that were deferred from last year and; therefore, it would be difficult to defer them further.
Mr. Ruane requested that each year staff provide members with a detailed explanation of the Legal Expenses line item.
Facilities Management
Mrs. Tieman stated that the amount budgeted for materials and supplies is reduced by 5%. She explained that administrative expenses do not correlate to the amount listed in the Draft Budget Review because additional expenses, in the amount of $3,077 in contractual services, have been incurred since the information was printed.
Central Services
Mrs. Tieman presented the draft budget figures for the Central Services Department. The amount budgeted for materials and supplies is increased by 80%, administrative expenses increased by 3%, and operating expenses, excluding salaries, increased by 7%. The Water-Sewer line item, which was erroneously omitted as a line item from last year’s budget, has been included.
Mr. McGlumphy requested that staff provide a total percentage increase or decrease from last year’s Fiscal Budget for each department from FY2009 to FY2010 in order to more easily evaluate proposed expenditures.
Mr. Ruane requested that staff provide members with an updated ADA compliance document to demonstrate the progress that has been made with this effort, as well as an update on what projects are remaining for total ADA compliance.
In response to Mr. Ruane, Mrs. Tieman assured members that the revised Strategic Goals and Objectives will be included in the 2009/2010 final budget.
Fleet Maintenance
Mrs. Tieman stated that materials and supplies are increased 1% due to computer hardware replacement, and administrative expenses are reduced by 10%. The total budget is increased by 1%, excluding salaries.
City Clerk
The figures presented by Mrs. Tieman for the Clerk’s Office revealed that materials and supplies are increased by 38% due to computer hardware purchases per the lifecycle replacement program. Administrative expenses are decreased by 1%, and total operating expenses, excluding salaries, are increased by 6%. Training and conferences were kept at FY2009 levels.
Mr. Ruane stressed the importance of implementing electronic document storage in order to reduce expenses and to provide a timely and economical response to FOIA requests. He expressed his hope that Planning Department documents would be fully accessible electronically by the end of next year. He requested that Council be provided with an update as to the status on other departments converting to Fortis.
Customer Services
Mrs. Tieman stated that amounts budgeted for materials and supplies are increased by 31%, mostly due to computer hardware purchases. She further explained that these costs are offset by reductions in administrative training, contractual services, and office equipment repairs and that total operating expenses are down 2%.
Electric Meter Reading
Mrs. Tieman stated that materials and supplies were reduced by 33% in this area. Administrative expenses are reduced by 13% and the total budget by 21%. This was accomplished by a reduction in handheld reading devices and the elimination of training.
Water Meter Reading
Mrs. Tieman stated that the line item for materials and supplies was reduced by 18% and that the budget remained relatively the same as last year.
Mr. Ruane commended the department on their strategic goal of making utility and tax bills more user friendly.
Finance
Mrs. Tieman explained that the addition of an Accountant II position as part of an internal control and risk assessment goal was included in the “strategic” column for this department. Combined with increased administrative expenses for contractual services for audit and actuary fees, this led to an overall increase of 6% for overall operating expenses.
Human Resources
Materials and supplies for this Department are down 7%, mainly due to the transfer of the Safety Program to the Life Safety budget. Administrative expenses are up 7%, and overall operating expenses are down 2%. Furniture, printing, and personnel related supplies were reduced and $6,000 was added to meet the Department of Transportation drug testing requirements. Additional unemployment expenses based on current trends also contributed to increased administrative expenses.
Information Technology
Mrs. Tieman noted that the amount budgeted for materials and supplies is reduced by 2%, mostly due to deferring replacement of a main printer. Administrative expenses remain unchanged; however, funds are being transferred from training into hardware maintenance. All capital projects have been deferred except GPS tracking of the City fleet.
In response to Mrs. Williams, Mr. DePrima stated that all travel and training, except that specifically needed for certification for a particular job, has been eliminated from all departmental budgets.
When questioned by Mr. Ruane, Mrs. Tieman noted that items #2 and #3, listed as Strategic Objectives for FY2009/2010 for the Information Technology Department, have been deferred and will not be addressed this fiscal year.
Tax Assessor’s Office
Mrs. Tieman noted that materials and supplies are reduced by 79% due to a software purchase in 2009 which was not needed in 2010. Administrative expenses were reduced by 6%. She noted that the amount in Contractual Services (30-31) has been revised and should be corrected to read $381,500.
Mr. DePrima advised Council that all department heads were asked to formulate a budget that was no higher than that of the previous year, and all budgets were examined to determine if they could be cut further. He commended department heads for working hard to reduce their budgets and was pleased to note that overall operating expenses had been reduced by 2%; however, he stated that additional work still remains.
REVIEW OF PERSONNEL REQUESTS
Mr. DePrima provided members with Personnel Requests (Exhibit #2).
In response to Mr. DePrima’s recommendation to recruit a Librarian II - Head of Adult Services, Mrs. Williams expressed her concerns regarding the wisdom of devoting City personnel and monetary resources toward the new library project during the present economic downturn.
Mr. DePrima expressed his understanding that the library project was a top priority for Council and explained that his recommendation to fill this position was based on this understanding. He requested that Council give consideration to whether the Library Director should be instructed to continue to devote the majority of her time to fund-raising and planning for the new library or become more involved in the daily operations of the current library.
Mr. Ruane stated that State Representatives have advised the City of Dover to continue with the planning of the new library and that if the City were to discontinue, costs that have been incurred would not be reimbursed. He felt that it would be valuable for Council to be updated on the status of the project, which he stated has made great strides and has gained a great deal of public support.
Concurring with Mr. Ruane, Mr. Slavin stated his support for the project and commented that if momentum is slowed, the funding that is in place will be jeopardized.
REVIEW OF POTENTIAL NEW REVENUES AND REVENUE ENHANCEMENTS
Mr. DePrima reviewed a presentation of the Potential Revenue Sources (Exhibit #3). He explained that the City’s goal is to try to avoid large increases in fees by implementing periodic increases that are competitive with other local governments. He explained his intent to focus on fees that have not been updated in ten years, which include certificates of occupancy, certificates of public occupancy, and rental permit fees.
Mr. Ruane expressed his concern regarding the large number of vacant buildings in Dover and the consequent increased requirements for inspections by the building inspector and fire marshal. He requested that staff present an analysis including the number of vacant buildings and the resultant increased demands on staff time.
Council President Hogan requested that members provide staff with their input regarding the review of Potential New Revenues and Revenue Enhancements as presented.
Due to the current economic situation, Mr. Leary stated that it would be difficult for him to support any proposed revenue increases.
Mr. McGlumphy felt that it would be prudent to consider fee increases only in the context of the budget.
Concurring with Mr. Leary and Mr. McGlumphy, it was Mr. Slavin’s feeling that the City should consider built in rate/fee escalators.
Although he indicated no major objections, Mr. McGiffin stated that he is not opposed to the proposed increases and saw them as a possible way to make the economic burden more fair.
Mrs. Williams stated she could not consider any additional, increased fees or taxes until the budget has been reviewed.
It was Mr. Ruane’s feeling that services should pay for themselves and that if Dover’s rates are lower than other local governments, it is only fair to increase fees as long as they remain competitive.
Mr. Hogan concurred with establishing a long-term plan for rate increases and indicated that he is not opposed to proposed fee increases.
Mr. Ruane expressed his concerns about a difficult situation being created by the decreased revenue being generated during the economic crisis at the same time that greater demands are being placed on City services. He stressed the need for Council to continue to dialog on ways to address these challenges.
Mr. DePrima requested feedback from Council on taking this new approach to the budget process by meeting prior to the budget hearings to review budgets of the smaller departments. He commended Mrs. Tieman and Ms. Ford for their hard work in compiling the information that was presented.
Mr. Leary moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting adjourned at 7:34 p.m.
AMBER L. CLENDANIEL
ASSISTANT CITY CLERK
CARLETON E. CAREY, SR.
MAYOR
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S:ClerksOfficeAgendas&MinutesCouncil-Minutes20094-06-2009 Special Council (revised).wpd
Exhibits Attached to Original Minutes and File Copy
Exhibit #1 - Selected Divisions Draft Budget Review Fiscal Year 2009-2010
Exhibit #2 - Personnel Requests
Exhibit #3 - Review of Potential Revenue Sources