SPECIAL COUNCIL MEETING
BUDGET HEARINGS
Members of Council met in Budget Hearings on May 18, 2004, May 19, 2004 and May 20, 2004 at 7:00 p.m. Members of Council present were Council President Williams, Mr. Carey, Mr. Pitts, Mr. Sadusky, Mr. Slavin, Mr. Ritter (arrived at 6:18 p.m. on May 19th), Mr. Hogan, Mr. Salters, and Mr. Ruane.
Council staff members present were Mr. DePrima (City Manager), Mrs. Mitchell (Finance Director/Treasurer), Mrs. Tieman (Administrative Services Director), and Mrs. Green (City Clerk). It should be noted that most department and division heads were also present during these hearings.
AGENDA ADDITIONS/DELETIONS
Council President Williams advised members that Mr. Galvin has requested the addition of item #1 for May 19, 2004 to consider a Resolution for the Community Development Block Grant (CDBG) 2004 Action Plan.
Mr. Carey moved for approval of the agenda, as amended, seconded by Mr. Hogan and unanimously carried.
Council President Williams read the following statement into the record:
“I am very pleased to open this 2005 budget discussion. This budget has no property tax increase. The General Fund is balanced and includes appropriate operating and capital items necessary to provide excellent City services to our residents, businesses, and organizations.
The General Fund has two new sources of revenue and normal growth of revenues and expenses. This fund will carry a good balance into next year on June 30, 2004 and also has adequate contingency money.
The first new revenue is $800,000, representing a 12% increase in Civil Traffic Penalties. Employment of new technology such as the Webb’s Lane camera light will continue to make Dover a safer place to live while maintaining better control over traffic. The second new revenue is the Court of Chancery fees in the amount of $480,000. These fees are levied when an entity incorporates in Kent County. This revenue stream originated in New Castle County and is applicable to the whole state.
These revenue streams are likely to become recurrent and routine as New Castle County finds alternative revenue sources to replenish their tax base formally provided by land use.
The Waste Water (sewer) Fund is also balanced and has reserve for contingency. In this budget, enough monies are provided for solving the “brown water” problem and other capital and operating items. The declining block water rates have been changed to the flat rate. Our residents will not pay any more because of this change. The large commercial/industrial users will see the increase in their bills.
To recover the “Kent County Sewer Treatment” fee, the City has adjusted the sewer adjustment upward by 25¢ per 1000 gallons. For a home using 4,000 gallons a month, this will result in a $1.00 increase per month or around 3¢ per day. This adjustment will help the City to fix our problems of excess water going into the County system.
The City’s third large fund, the Electric Fund, is also balanced and has no increase in the base rate for our customers. However, the City plans to pass on the power cost increases from Duke Power to our customers. This is a small increase compared to current oil prices being paid by other municipalities that did not negotiate the contract we did seven (7) years ago to control our pricing. This incremental cost will be passed on to our customers as a power cost adjustment. The City anticipates this increase to be $3.82 per month or around 13¢ per day for all our residential customers.
I request the Council members to look at these budgets from concept and policy points of view. We do not need to go into each line item and micromanage these budgets. Let the Department heads manage the lines because they are responsible for the results. They have to make changes “on the spot” to run their departments and we need to trust them to make responsible decisions and changes. In closing, as we are growing, we are in good shape and continue to benefit from good fortune.”
PRESENTATION OF 2005-2009 CAPITAL INVESTMENTS PLAN
Mr. DePrima, City Manager, explained that the Capital Investments Plan (CIP) includes all capital projects whose value is $10,000 or greater. All the projects included in the plan in the first year of the five-year plan have been included in the operating budget. Mr. DePrima gave a presentation of the City of Dover Fiscal Year 2004/2005 Capital Investments Plan (Exhibit #1).
Discussion - Review of 2005 CIP Projects
Although there were several questions by Council, no official action was taken on the CIP; however, it is noted that official action regarding specific projects could occur during the operating budget review.
Mr. Carey moved to recess until 6:00 p.m. tomorrow (May 19, 2004), seconded by Mr. Sadusky and unanimously carried.
Meeting recessed at 7:24 p.m. and reconvened on May 19, 2004 at 6:00 p.m.
CDBG ACTION PLAN AND RESOLUTION
During their Regular Meeting of May 10, 2004, members of City Council approved the Community Development Block Grant (CDBG) Action Plan for 2004 and adopted a Resolution. Mr. Galvin, Director of Planning and Inspections, explained that the comment period for the 2004 Action Plan was from April 16, 2004 through May 16, 2004. In accordance with the requirements contained in Part 91,105 of Title 24 of the Code of Federal Regulations, the City is required to provide citizens not less than 30 days to make any comments on the proposed Action Plan before submission to HUD. Therefore, staff requested that Council reaffirm its acceptance of the Action Plan before submission to HUD.
By motion of Mr. Salters, seconded by Mr. Carey, Council approved the CDBG Action Plan for 2004 and, by a unanimous roll call vote (Mr. Ritter absent), adopted the following Resolution:
WHEREAS, the City of Dover is entitled to $326,000 through the United States Department of Housing and Urban Development's Community Development Block Grant Program; and
WHEREAS, the City of Dover has prepared the 2004 Community Development Block Grant Action Plan, in accordance with United States Department of Housing and Urban Development guidelines, that serves as the primary planning document for identifying and meeting the housing and community development needs for the low and moderate-income residents of Dover; and
WHEREAS, the City of Dover is in favor of utilizing the Community Development Block Grant funds for community development purposes in accordance with the National Community Development objectives of benefitting low and moderate income families, eliminating slums and blight, and meeting other community development objectives; and
WHEREAS, the United States Department of Housing and Urban Development required the City of Dover to submit Consolidated Plan, and an Action Plan for Application for Federal Assistance including the proposed use of funds and including certain certifications and policies to obtain its $326,000 Entitlement and use of $82,043 in program income for eligible activities; and
WHEREAS, the City of Dover has prepared the attached Application for Federal Assistance, and presented it at an advertised public hearing held on April 27, 2004.
NOW, THEREFORE, BE IT RESOLVED THAT THE MAYOR AND COUNCIL OF THE CITY OF DOVER approve the 2004 Community Development Block Grant Action Plan, and application for Federal Assistance included in the Action Plan along with certifications, and policies attached and authorize its forwarding to the United States Department of Urban Development for consideration.
ADOPTED: MAY 19, 2004
PRESENTATION OF 2004/2005 DRAFT BUDGET
Mr. DePrima, City Manager, gave a presentation of the City of Dover 2004/2005 Draft Budget (Exhibit #2).
Review of 2004/2005 Draft Budget
Members of Council reviewed the 2004/2005 draft budget (as on file in the Office of the City Clerk).
General Fund
Mr. DePrima advised members that two (2) additional expense items have been brought to his attention since preparing the budget that he felt should be discussed during the budget hearings on the General Fund, as follows:
1.A request from the Fire Chief for an additional $60,000 in funding. This request is to expedite the payoff of two (2) fire department vehicles so that the company can afford its proposed building expansion. A letter from Chief Bashista was provided to members (Exhibit #3).
2.Consideration of paying for additional ambulance coverage. Mr. DePrima explained that for quite some time, there has been mounting concern that our current contracted minimum coverage of one (1) ambulance is not meeting the needs of the community. As a result of several meetings held to discuss the issues, he requested a cost for adding an additional ambulance for late-night coverage, which is the time when assistance from surrounding companies is least available and, subsequently, response rates are not meeting goals. The proposed cost for extra coverage is between $72,800 and $101,920, depending on whether the City chooses five (5) or seven (7) days of additional coverage per week. A letter from PrimeCare Medical Transport, LLC was provided to members, which included a proposed fee schedule (Exhibit #4).
Mr. DePrima also noted that the proposed business license and permit fee increases were postponed to the May 24, 2004 committee meeting. It was his hope that this proposal would have been considered prior to the budget hearings. As a result, he advised members that the draft budget does not assume these increases; however, he noted that it is estimated that the permit increases would generate $256,680 and business license fee increases would generate $128,544.
The City Assessor submitted a memo providing details regarding a reduction for the proposed consultant services and administrative help that will be required during the reassessment for the 2004-05 Tax Year (Exhibit #5).
Several members questioned if there was adequate staffing for the Assessor’s Office, considering that a reassessment is scheduled for the upcoming year. Elaborating, Mr. Ruane relayed concern regarding the milestones to be reached in terms of the reassessment. He noted that there is a continuation of a dependency on a consultant to perform commercial assessments. Mr. Ruane reminded members that Council recently approved a significant amount for software that was intended to contribute to cost efficiencies and service for this department. In 2002, the reevaluation cost was approximately $42,000, which included salary and benefits in the amount of $12,600 for staff. He suggested that this matter be referred to the Legislative, Finance, and Administration Committee with the understanding that the revised proposed amount provided by the City Assessor in the amount of $88,250 be included for contractual services, with the understanding that the actual use of the monies will be determined once the City Assessor has had the opportunity to develop a plan for the committee’s review and recommendation to Council.
Mr. Ruane moved to refer the budget for the reassessment to the Legislative, Finance, and Administration Committee for their review and recommendation to Council, seconded by Mr. Carey.
Mr. Salters explained that the City Assessor provided an estimate for budget purposes and that the final amount would be presented to the committee for further review and recommendation during the fiscal year. Since this is the process for the majority of these types of budget items, Mr. Salters relayed concern with choosing a specific item and referring it at this time.
The motion to refer the budget for the reassessment to the Legislative, Finance, and Administration Committee for their review and recommendation to Council was carried by a roll call vote of five (5) yes, and four (4) no (Mr. Pitts, Mr. Sadusky, Mr. Hogan, and Mr. Salters).
At the request of Mr. Ritter, Fire Chief Bashista explained that the request for an additional $60,000 would allow for the Robbins Hose Company to complete the renovations to Fire Station #1. In order to accomplish the renovations, the Robbins Hose Company will be assuming a $2.5 million debt. He assured members that the City will not be assisting in these costs. The additional $60,000 will assist Robbins Hose Company in paying off two (2) vehicles that are currently paid for by both the City of Dover and Robbins Hose Company.
Mr. Ritter moved to direct the City Manager to include $60,000 in the Fire Department’s budget, seconded by Mr. Carey and carried by a unanimous roll call vote.
Responding to Mr. Ruane’s concerns regarding the reorganization needs of the Planning and Inspections Department, Mr. DePrima stated that if it is determined that there is a need for additional staffing, it could be accomplished during the mid-year review.
Water/Wastewater Fund
Referring to page 25, Mr. Slavin noted that the Water/Wastewater Contingency Fund must equal two percent (2%) of the current year operating revenues, or $214,005. The current year balance proposed for 2004/05 is $428,010. He stated that as a result of additional information obtained, or from the Water Master Plan, there may be projects identified in fiscal year 2005 related to the brown water problems that were not budgeted. He suggested that since the account has more than what is required, in order to provide a financial means to address brown water issues, that the City earmark half of the balance, in the amount of $214,005, to address brown water issues.
Mr. Slavin moved to earmark funds in the amount of $214,005 within the Water/Wastewater Contingency Fund for brown water issues, seconded by Mr. Ritter and unanimously carried.
Mr. Ritter moved to recess until 6:00 p.m. tomorrow (May 20, 2004), seconded by Mr. Slavin and carried with Mr. Hogan voting no.
Mr. Ruane noted that there was a request from the City Manager for consideration of Ambulance Service that would affect the General Fund and felt that members may have inadvertently skipped consideration and moved onto the Water/Wastewater Fund. He requested that members return to the review of the General Fund for the sole purpose of discussing the request regarding Ambulance Service tomorrow when the meeting reconvenes.
Meeting recessed at 7:53 p.m. and reconvened on May 20, 2004 at 6:00 p.m.
General Fund
Council President Williams reminded members that although they completed the review of the General Fund and Water/Wastewater Fund sections of the 2004/2005 draft budget, if there are no objections, members would honor Mr. Ruane’s request to return to the General Fund for the purpose of discussing additional ambulance coverage as mentioned in a memo from the City Manager dated May 14th.
Mr. Ruane referred to the request submitted by the City Manager (see above) and requested that Mr. DePrima provide members with further details and if there is a recommendation, that he provide the source of funds.
Responding, Mr. DePrima stated that the issue is whether the City of Dover provides enough ambulance coverage. He advised members that the current ambulance contract does not cost the City. In exchange for allowing the ambulance provider all 911 calls in the City, they agreed to provide one (1) ambulance on duty 24-hours per day, 365 days per week. There are times when there is not enough ambulance coverage in the City which requires mutual aid from neighboring ambulance companies, such as Cheswold and Camden. There have been some concerns relayed by the neighboring ambulance companies that they are making too many ambulance calls to assist the City of Dover, which they feel is affecting the quality of service for their areas.
Mr. DePrima stated that the Kent County 911 has provided statistics indicating when the City is not meeting coverage requirements. Through analysis, it appears these times are early morning hours (12:00 midnight to 7:00/8:00 a.m.). A request was made for the City’s current ambulance company to develop estimates on providing additional ambulance for the City of Dover. They advised him that there would be costs involved for adding a second ambulance because they would not be able to recover the costs for the second ambulance. He noted the receipt of the estimates for the second ambulance (see Exhibit #4). Mr. DePrima stated that there have been no further discussions or negotiations regarding the estimates. He also mentioned that there is a separate effort to attempt to find a more centrally located facility, advising members that the current facility is located on Horsepond Road.
Mr. Carey felt that it was evident that the City needs to subsidize the ambulance service for at least the 7-day period and suggested that it be reevaluated in the next 2-3 months to see what, if any, changes should be made.
Mr. DePrima stated that it was hoped that there would have been some decision made regarding the proposed increase in the permit and license fees, which would be a means to fund the ambulance service. Another alternative would be to pay additional monies for some of the other reserves; otherwise, he would be required to review the capital projects that have been included in the budget.
Mr. Carey moved to support the 7-day per week, one (1) shift ambulance service, stipulating that the City Manager is able to acquire the necessary funding in the amount of $101,000. The motion was seconded by Mr. Slavin.
Responding to Mr. Ruane, Mr. DePrima indicated that annual reports are provided to the City; however, he felt confident that the City would be permitted to review the records of the ambulance company if requested.
For clarification, Mr. Hogan questioned if the motion indicated Council’s support for the ambulance service, as stated, and that the City Manager is to investigate possible funding and negotiate for a better price. If the City Manager is not able to acquire the necessary funding or is not able to negotiate a better price, the matter would be brought back to Council for further review.
With the concurrence of the motion maker, Council President Williams confirmed the statements made by Mr. Hogan.
The motion to support the 7-day per week, one (1) shift ambulance service, stipulating that if the City Manager is not able to negotiate a better price or acquire the necessary funding, the matter will be brought back to Council for further review was carried by a unanimous roll call vote.
Electric Fund
There were no motions made with regards to the Electric Fund Budget.
Special Funds
There were no motions made to the Special Funds Budget.
As a new member of Council, Mr. Slavin relayed appreciation to the budget team, as well as department and division heads, for presenting a budget that is very understandable.
Pay-for-Performance (P.F.P.) Salary Calculations (Non-Bargaining Employees)
Mr. DePrima provided a presentation on Pay-for-Performance (Exhibit #6), explaining that P.F.P. is a system for awarding pay increases to non-bargaining employees. It was noted that the amounts depicted on the P.F.P. salary calculations worksheet has been included in the draft budget.
Mr. Ruane reiterated that the P.F.P. salary calculations, as noted on the worksheet, includes an equity adjustment for last year; therefore, next year’s proposed worksheet should be adjusted accordingly. He commended members for adopting the P.F.P. system, feeling that it is one of the best actions taken. The City no longer simply gives an automatic salary adjustment for the non-bargaining employees, they are compensated an amount that is merited by their performance.
Mr. Carey moved for adjournment, seconded by Mr. Salters and unanimously carried.
City Clerk’s Office Note: Approval of the budget requires the adoption of budget ordinances. The ordinances have been prepared in accordance with the draft budget presented to Council with changes made in accordance with these budget workshop sessions. A Public Hearing on the Draft Budget and First Reading of the proposed ordinances will take place during the Regular Council Meeting of June 14, 2004 at 7:30 p.m. Adoption of the Budget will occur during the Final Reading of the ordinances which will be scheduled for June 28, 2004.
Meeting Adjourned at 7:20 P.M.
JANICE C. GREEN
CITY CLERK
All orders, ordinances, and resolutions adopted by City Council during their Regular Meeting of May 18-20, 2004, are hereby approved.
STEPHEN R. SPEED
MAYOR
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S:ClerksOfficeAgendas&MinutesCouncil-Minutes2004Budget Hearings 2004.wpd
Exhibits Attached to Original Minutes and File Copy
Exhibit #1 - Presentation - 2004/2005 Capital Investment Plan
Exhibit #2 - Presentation - 2004/2005 Draft Budget
Exhibit #3 - Letter from Fire Chief Bashista
Exhibit #4 - Letter from PrimeCare Medical Transport LLC
Exhibit #5 - Memo from City Assessor Cooper
Exhibit #6 - Presentation - Pay-for-Performance