SPECIAL COUNCIL MEETING
A Special Council Meeting was held on June 30, 2003 at 5:00 p.m. with Council President McGlumphy presiding. Members of Council present were Mr. Carey, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. Ritter, Mr. Speed, Mr. Salters, and Mr. Ruane.
Council staff members present were Mrs. Mitchell, Mrs. Tieman (Administrative Services Director), Mr. DePrima, Chief Bashista, and Mrs. McDowell.
The invocation was given by Mr. Salters, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Carey moved for approval of the agenda, seconded by Mr. Speed and unanimously carried.
ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF MAY 28, 2003 (RECONVENED) - BUDGET HEARINGS
The Minutes of the Special Council Meeting of May 28, 2003 (Reconvened) - Budget Hearings were unanimously approved by motion of Mr. Carey, seconded by Mr. Speed and bore the written approval of Mayor Hutchison.
FIRST READING - BUDGET ORDINANCES - PROPOSED 2003/2004
Mr. Salters moved to waive the reading of the proposed ordinances before Council, seconded by Mr. Carey and unanimously carried. Council President McGlumphy reminded the public that copies of the proposed ordinances are available at the entrance of the Council Chambers or can be obtained from the City Clerk's Office. Final action by Council on the proposed ordinances will take place during the Council Meeting of July 14, 2003.
Mr. Carey moved for acknowledgment of the First Reading of the following proposed ordinances by title only, seconded by Mr. Salters and unanimously carried:
Budget Ordinances - Proposed 2003/2004
A. General Fund - Cash Receipts and Budget
B. Contingency Fund - Cash Receipts/Revenue and Budget
C. Municipal Street Aid Fund - Cash Receipts/Revenue and Budget
D. Community Development Fund - Cash Receipts/Revenue and Budget
E. Weed and Seed Fund - Cash Receipts/Revenue and Budget
F. Delaware Prevention Network - Cash Receipts/Revenue and Budget
G. Intergovernmental Service Fund - Cash Receipts/Revenue and Budget
H. Water/Wastewater Fund - Revenue and Budget
I. Water/Wastewater Improvement/Extension Fund - Cash Receipts/Revenue and Budget
J. Water/Wastewater Capital Asset Reserve Fund - Cash Receipts/Revenue and Budget
K. Water/Wastewater Contingency Fund - Cash Receipts/Revenue and Budget
L. Electric Revenue Fund - Revenue and Budget
Budget Ordinances - Proposed 2003/2004 (Continued)
M. Electric Utility Improvement and Extension Fund - Cash Receipts/Revenue and Budget
N. Electric Utility Depreciation Reserve - Sources and Uses of Funds
O. Electric Utility Contingency Fund - Cash Receipts/Revenue and Budget
P. Electric Utility Future Capacity (Restricted) Fund - Sources and Uses
Q. Electric Utility Insurance Stabilization Fund - Sources and Uses
R. Workers Compensation Fund - Cash Receipts/Revenue and Budget
S. Transportation Enhancement Grant Fund - Cash Receipts/Revenue and Budget
T. Community Transportation Improvement Fund - Cash Receipts/Revenue and Budget
Mrs. Mitchell provided members with information regarding three (3) additional proposed revisions that she would like to make, if Council concurred, as follows:
► Transfer $1,600,000 (Bond Issue Proceeds) to FY 2003/04 and revise the budget balances as necessary for the same amount in FY 2003.
Mrs. Mitchell explained that since the bond refinancing is not yet complete, those funds will not be available until FY 2003/04. She noted that $1,000,000 would be allocated for Wastewater and $600,000 would be allocated for Water.
► Transfer $2,700,000 (Electrical Engineering) to FY 2003/04 and change the budget balances as necessary for the same amount in FY 2003.
Mrs. Mitchell stated that, due to changes recommended by the attorney to the Black and Veatch Contract, the payment would be made in FY 2004. Only the $300,000 due upon signing the contract would be paid in FY 2003. The land acquisition and remainder of the project would be paid in FY 2004.
► Transfer $105,000 (Community Transportation Fund) to FY 2003/04 and change the budget balances as necessary for the same amount for FY 2003.
Mrs. Mitchell stated that this transfer represents monies remaining in the Street Department budget in FY 2003 that will transfer to the Community Transportation Improvement Fund as a continuation of the Street Improvement Program (Suburban Street Aid Fund - State Legislators).
Mr. Speed recommended eliminating the increase in the Power Cost Adjustment (PCA) for FY 2003/04 and reducing the carry-forward balance in the Electric Fund by the amount that would make it equal to the five percent (5%) requirement. He noted that these actions would balance the Electric Fund budget.
Responding to Mr. Ruane, Mrs. Tieman stated that Mr. Speed’s proposed action would have no effect on the Rate Study. Mrs. Mitchell stated that the action would have no net effect, it would serve to make the transfers more apparent.
Council President McGlumphy asked what the savings would be to the customers if the City did not pass on the PCA. Mr. DePrima stated the total savings to all customers would be approximately $2.2 million. Mr. Ruane noted that the projected expense was listed at $3,207,474 and requested Mrs. Mitchell to provide the revised figure. Mrs. Mitchell stated that it would be $1,004,069 or a reduction of $2,203,405. Mr. Ruane noted that the expected revenue would also be decreased by that amount if the PCA were not passed on to the customer. Mrs. Mitchell stated that it would be necessary for Mr. Blakeman to review all figures for the accuracy of the projections. Mr. Speed stated that it was not likely; however, if the figures were inaccurate, a PCA could be passed on. Mr. DePrima cautioned members that next year another cost increase would be added to this year’s cost increase. He noted that if there is not a similar Duke rebate and a similar carry forward balance, the City would not be in the position to absorb next year’s increase, as well as make up for this year’s increase. Mr. Ruane stated that the Rate Study was based on a PCA revenue stream of $3.2 million this year, then $4.9 million, $6.8 million, and $8.9 million in each successive year. He reminded members that the City has signed on to meeting these expenses and there is no alternative until the Duke contract expires in 2007. Mr. Speed clarified that the Duke rebate would remain in the Improvement and Extension Fund for Capital Projects and would not be used to cover operating expenses.
Mr. Speed moved to direct the City Manager to eliminate the Power Cost Adjustment increase that is currently budgeted for FY 2003/04, and to balance the budget using the excess carry forward balance and any other expenses that he would deem appropriate. The motion was seconded by Mr. Ritter and carried by a roll call vote of seven (7) yes, two (2) no (Mr. Carey and Mr. Ruane).
Mr. Speed moved to reduce the amount of the transfer from the Electric Fund to the Improvement and Extension Fund from $2.66 million to $1.63 million, seconded by Mr. Ritter and carried by a unanimous roll call vote.
Mr. Ruane, referring to the Revisions to Balance the General Fund with no Increased Fees that was previously accepted by Council, noted that everyone’s budget was affected except the Mayor’s. Looking at the history of the Mayor’s Office, Mr. Ruane noted that Section 2-70 of the Dover Code states that “The mayor shall receive an annual salary of forty-five thousand dollars ($45,000.00), effective May 11, 1998. In addition, the mayor shall receive an expense allotment of up to five thousand dollars ($5,000.00), to be included in the city's annual budget, for miscellaneous expenses, to be reimbursed upon submission of receipts or proper documentation. Expenses in excess of this amount shall only be permitted by council approval. The mayor shall be entitled to all benefits customary to an employee of the city with the exception of pension benefits and sick and vacation leave”. Mr. Ruane noted that in 1998, prior to the notion of a full time Mayor, there is a budget figure of $24,000. Between 1998 and this year, that figure goes from $24,000 to $80,000, or an increase of 328%. After a lengthy discussion among members regarding expenses incurred by the Mayor, Mr. Salters suggested that it would be more appropriate to schedule a meeting at a time when the Mayor could be present to defend his budget.
Mr. Speed moved that the Finance Director’s recommendations be incorporated in the budget, seconded by Mr. Salters and carried by a roll call vote of eight (8) yes, one (1) no (Mr. Ritter).
Mr. Salters moved to approve the First Reading of the budget ordinance, seconded by Mr. Carey and carried by a roll call vote of seven (7) yes, two (2) no (Mr. Ritter and Mr. Ruane).
COUNCIL MEMBERS COMMENTS
Council President McGlumphy thanked Chief Bashista and the McKee Run personnel for their professional handling of the recent fire on the power plant roof. Chief Bashista briefly updated members on the fire and informed them that the Fire Marshal believes the fire may have been started by an overheated beam.
Mr. Speed moved to adjourn, seconded by Mr. Salters and unanimously carried.
Meeting adjourned at 6:28 P.M.
TRACI A. McDOWELL
ASSISTANT CITY CLERK
All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of June 30, 2003, are hereby approved.
JAMES L. HUTCHISON
MAYOR
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