COUNCIL BUDGET HEARINGS
Members of Council met in budget hearings on May 10, 1994 at 7:00 p.m. Members of Council present were Council President Christiansen, Mr. Salters, Mr. Tudor, Mr. Lambert, Mr. Leary, Mr. Weyandt, Mr. Pitts, Mrs. Malone, Mr. Hare and Mayor Hutchison.
Mr. Salters, Chairman of the Legislative and Finance Committee, explained that the proposed budgets were distributed to members of Council on December 9, 1993 and that members of Council have spent a great deal of time reviewing departmental budget requests with department heads, the City Manager and Finance Director.
Mr. Salters requested that Mr. O'Connor give a brief overview of the proposed budget. Mr. O'Connor stated that the proposed budget totals $68.6 million in expenditures. Of this amount, approximately $7.2 million is projected for capital expenditures. The budget revenues reflect a modest improvement in the economy and growth in Dover. The budget expenditures were prepared and reviewed from a conservative approach and sources of revenue were estimated at realistic levels.
The following goals were set and accomplished for developing the proposed budget as follows:
-- No tax rate increase
-- No rate increase for water/wastewater
-- Realize better returns from the utilities
-- No electric rate increase
-- Maintain existing services
The General Fund budget includes: 1) Operation of Fire Station #2; 2) Continued implementation of the Information Systems Strategic Plan. Projects for 1994/95 include a Human Resources/Payroll system, a personal computer network and a software design tool; 3) Comprehensive Plan expenditures to include an additional staff person and equipment in the Planning Division; 4) The debt service for the Police Station will be included in next year's budget, depending on the timing and the structure of the bond issue; and 5) A $.25 increase in Senior Surrey Fees.
The Water/Wastewater Fund budget includes: 1) A new water treatment plant scheduled to come on line in July 1994; 2) the North Loop Water Main; 3) The Mudstone Branch Sewer System project; and 4) A meter change-out program.
The Electric Fund budget includes: 1) McKee Run NOx Regulation Compliance Program; and 2) scheduled overhaul of Unit #3, #1 fuel oil tank replacement and repair of #2 fuel oil tank.
Mr. Weyandt stated that he has reviewed the budget, along with the Finance Director and City Manager, in detail and feels that it is a very good budget. He referred to the additional employee planned in the Planning Office, stating that this employee is being hired specifically to assist in updating the Comprehensive Plan. Performing this project in-house will save a significant amount of money. This position will be eliminated upon completion of the Plan update.
Mr. Christiansen suggested that the City share the County's resources since they are also planning to update their Comprehensive Plan.
Mr. Don Kingsley and Mr. Drexel Ball, representing the Dover Arts Council, addressed Council relative to the City's contribution to the Arts Council. Mr. Kingsley pointed out that a reduction of $4,763 is proposed for the Arts Council from the City. He elaborated upon the need for the funds, stating that they are working diligently to become self-sufficient. However, in order to continue with their efforts, they desperately need the additional funds.
Members of Council discussed the proposal to contribute $3,000 to the State of Delaware Arts Stabilization Fund with many feeling that this money would better benefit the citizens of Dover if directed to our local Arts Council. It was agreed that this money will be transferred to the Dover Arts Council. In addition, Arts Council members will attempt to lower proposed expenditures.
Mr. Jim Carr, Acting President of FACT, addressed members of Council on the proposed budget. Mr. Carr expressed his disappointment with members of Council for not reviewing the proposed budget in more detail. Mr. Carr suggested that a tremendous savings could be seen if the City offered only essential services rather than so many fringe services that contribute to the indebtedness of the taxpayers. He related specifically to such services as the Senior Surrey, which he feels is a duplicated service, and the many flower beds in the City, which is very costly to the citizens. Although he did not suggest that all flower beds be eliminated, he suggested that the number be decreased significantly. Mr. Carr referred to the Parks and Recreation Department programs, stating that many of their programs are also offered by the County, with the taxpayers expected to pay for both. On behalf of FACT, he offered the following suggestions:
1. Revise the budget to substantially decrease expenditures
2. Repeal last year's tax increase
3. Absorb the cost of the Police Station expansion with funds from within the operating budget -- they favor providing relief to the Police Department and will support a referendum to sell bonds but cannot support financing the construction and renovations through additional taxes over and above what is being collected
Responding to questions relative to the proposed carry-forward balance, Mr. O'Connor explained that it is an unaudited projection. He reminded Council that the carry-forward balance is only a projection and the true balance can be affected by many things.
After much discussion, Mr. Weyandt moved for acceptance of the proposed 1994/95 budget as proposed by City staff. The motion was seconded by Mr. Leary and unanimously carried.
Mayor Hutchison relayed appreciation to City staff and City Council in their diligent work on the proposed budget. He reminded Council that a public hearing is scheduled for May 23, 1994 for the Electric Fund Budget. A first reading of the proposed budget ordinances will take place during the Council Meeting of May 23, 1994 and the final reading will occur during the Council Meeting of June 13, 1994.
Meeting Adjourned at 9:05 P.M.
Respectfully submitted,
Robin R. Christiansen
Council President
RRC/DJB