COUNCIL BUDGET HEARINGS
Members of Council met in budget hearings on May 19, 1998 at 7:00 p.m. Members of Council present were Council President Christiansen, Mr. Lambert, Mr. Pitts, Mr. Leary, Mr. Truitt, Mrs. Malone, Mr. Salters and Mr. Weller. Mr. Carey was absent. Mr. Merritt (Civilian Member of the Legislative and Finance Committee), Mr. Farling (Civilian Member of the Utility Committee) and Mayor Hutchison were also present.
Council staff members present were Police Chief Faulkner, Mr. O'Connor, Fire Chief Carey and Mrs. Green. The Finance Director/Treasurer, Mr. Karia, and Administrative Services Director, Mrs. Tieman, were also present.
Mr. Salters moved for approval of the agenda, seconded by Mr. Leary and unanimously carried.
Mr. Salters, Chairman of the Legislative and Finance Committee, read the following into the record:
“Good Evening Ladies and Gentlemen:
It is a privilege for me to announce to you tonight, that the state of the budget and financial affairs of the City of Dover are good. If by chance we were able to persuade Governor Carper and the General Assembly that we are in need of funds for operations, I believe we could say that the State of The Budget would be, and I quote, "Super Fine!!!"
The many long hours of preparation and review of the thousands of line items which are included in the 1998-99 Budget by the City Manager, Administrative Services Department, Treasurer's Office, Department Supervisors, and employees has certainly paid off in a well prepared and efficiently submitted document. This budget document was submitted to Members of Council as scheduled and has been thoroughly reviewed by each Council Member. Questions or concerns have been brought to the attention of the City Manager and City Treasurer where necessary. All questions which have been voiced by Council Members, have been answered and clarified by the City Manager and the City Treasurer during the last thirty days.
The team of highly qualified and dedicated professionals, who have been hired by this Council to supervise the fiscal operations of this City are doing an excellent job and are to be commended for their dedication and professionalism.
The FY 1998-99 Budget is well balanced and shows a carry over balance of more than $4,000,000. However, much needed capital of $1,200,000 is needed to carry us over into FY 1999-2000. It is anticipated that belt tightening by all departments and close scrutiny of all expenditures will result in additional carry over funds for FY 1999-2000. The aggressive management style of our City Manager and the questioning quill of the City Treasurer will insure that every effort is made and that every City employee is aware of the need to spend wisely and conserve the funds which are generated by our City in order for us to have the necessary carry over funds. It pays to have a nice carry over balance - this helps to keep the dreaded "T" word out of our vocabulary!
The FY 1998-98 Budget is broken down into three major funds which are the: General Fund at $15.6 Million; Water /Sewer Fund at $8.7 Million; and Electric Fund at $47.6 Million. The total budget is $71.9 Million.
As you all know, by law, we are unable to exceed the budget amount for revenues and expenditures. Our position is sound. Our Council has worked cooperatively with staff and we are confident that the 1998-99 Budget will keep us solvent and in the best financial health.
The budget is a continuing process and during the fiscal year three or four revisions and adjustments are made to keep us ahead of any possible pitfalls.
I am happy to announce that the budget for FY 1998-99 which begins July 1, 1998 has: no property tax increase; no other tax increases; no other fee increase; no water rate increase; no wastewater rate increase; and no electric rate increase.
Even though we are healthy and enjoying the good times, we realize that good times do not always last; therefore, I am requesting that the City Manager, Treasurer, staff, and employees investigate ways by which we may increase revenues without burdening our citizens and find ways to reduce expenditures without compromising services. I have thoroughly reviewed the Budget and see no fat which can be trimmed. I highly recommend approval of this document.
Thank you Mr. Mayor, Mr. President, and thanks to each of my fellow Council Members and especially the members of the Legislative and Finance Committee, including Mr. Robert Merritt, for keeping watch over the financial affairs of this City; not only during the budget meetings, but throughout the year and each day of the year. Thanks also to our City Manager for his outstanding leadership and to the City Treasurer for his vigilance. Thanks to all who prepared this budget and to all who help keep Dover moving in the right direction as we serve our City.
The floor is now open for your comments or concerns pertaining to the Budget Review for FY 1998-99.”
Mr. O’Connor indicated that the City of Dover’s 1998/99 Operating Budget incorporates staff’s commitment to efficiently delivering basic municipal services and to maintain and enhance our customers’ quality of life; City Council’s priorities; and sustaining the financial health of the City as an entity.
Responding to Mayor Hutchison, Mr. Karia stated that although the carry forward balances for next year are conservative amounts, he relayed concern and stressed the necessity of staff taking precautions throughout the year by making only those purchases that are absolutely necessary.
In response to Mayor Hutchison’s question regarding the 50¢ revenue from Kent County in conjunction with the 911 Enhancement Program, Mr. Karia stated that negotiations are complete and that the City will begin receiving these funds. The City will be receiving approximately $24,000 for the remainder of fiscal year 1997/98 and $74,000 each year thereafter from Kent County.
Mr. Leary reiterated that the 3½¢ property tax increase, authorized through the Referendum for the Police Station Expansion, is still not included in the budget and commended staff for the ability to keep the increase out of the budget.
Mr. Lambert relayed concern regarding the proposed carry forward balances for next year, feeling that these amounts projected are extremely low for all funds. Although an item may be budgeted for purchasing, changes could occur during the year so that the need to purchase an item is not necessary. He suggested that before making purchases, staff and members of Council reconsider
the necessity of each purchase.
Mr. O’Connor explained that the carry forward balance can be increased not only by watching expenditures but also considering options and alternatives to generate new revenues by utilizing City assets such as the leasing of rights-of-ways.
Mr. Leary moved to recommend acceptance of the 1998/99 Budget as presented and to recommend that the tax rate remain at its current level of $.685 per one hundred dollars of assessed value. The motion was seconded by Council President Christiansen.
Fire Chief Carey distributed information regarding an overview of the Robbins Hose Company’s Apparatus, prepared by the Capital Improvement Committee. It was noted that each fire apparatus is projected to be refurbished or replaced. The information provided the projected year and estimated costs for refurbishing or replacing equipment. It was also stated that a third fire station for the east side of Dover should be considered between year 2005 and year 2010 based on need and growth.
After discussing this matter at length, members agreed that the City’s CIP should include any capital improvements of the Robbins Hose Company for consideration by Council.
On a call for the question by Mr. Leary, the motion was unanimously carried (Attachment #1). (It is noted that acceptance of the 1998/99 Budget requires approval of budget ordinances. A First Reading of the budget ordinances will take place during the Council Meeting of June 8, 1998 and the Final Reading will occur during the Council Meeting of June 22, 1998). Council President Christiansen announced that the budget hearing tentatively scheduled for May 20, 1998 is not necessary and will be canceled.
Mr. Leary moved for adjournment, seconded by Mr. Weller and unanimously carried.
Meeting Adjourned at 7:42 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/jg