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HomeMy WebLinkAbout05/24/2007 Special Council Meeting Minutes MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 PLACE AND DATE Marana Municipal Complex - 2nd Floor Conference Center A. CALL TO ORDER AND ROLL CALL By Mayor Honea at 6:00 p.m. COUNCIL Ed Honea Herb Kai Russell Clanagan Roxanne Ziegler Patti Comerford Tim Escobedo Carol McGorray Mayor Vice Mayor Council Member Council Member Council Member Council Member Council Member Present Present Present Present Present Present Excused STAFF Mike Reuwsaat Gilbert Davidson Jim DeGrood Frank Cassidy Erik Montague Town Manager Deputy Town Manager Assistant Town Manager Town Attorney Finance Director Present Present Present Present Present B. PLEDGE OF ALLEGIANCE AND INVOCATION/MOMENT OF SILENCE Led by Mayor Honea. C. CALL TO THE PUBLIC Mr. Reuwsaat discussed a Foothills Mall annexation meeting, determining that it would not be a good deal for the Town at this time. GENERAL ORDER OF BUSINESS D. DISCUSION/POSSIBLE ACTION 1. Relating to the FY 2008 Budget: Presentation and discussion of the preliminary departmental expenditure allocations/personnel/operating costs (Erik Montague) Mr. Reuwsaat noted that more detail is being provided this year per new budget guidelines. Due to the late delivery of agenda materials, he doesn't expect detailed feedback. Tentative budget adoption and final adoption are scheduled for June. Erik Montague presented a power point with 2008 Budget Preliminary Allocations, the preliminary, FY 2008 Departmental Request Summary Report, and a copy of the proposed final budget. He noted that significant procedural changes were made this year. 1 MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 Council Member Comerford arrived on the dais at 6: 15 p.m.. Mr. Montague noted funding considerations - revenues: Budget policy regarding general fund balance: 25% target of budgeted revenues. Council Member Ziegler asked if there a list of what can be funded with the 25%? Is it the rainy day fund? Mr. Montague responded that the fund balance not a set-aside. Our bond rataing is AA. The recommended practice is to be at 15%. We're at 40%, but we don't expect to stay there. Any portion of fund reserves may be appropriated. Mr. Reuwsaat noted that $2.5 million will be used for CIP projects. Mr. Montague noted with regard to fixed costs that there is a decline in DIFs and permits. Tried to fund employee compensation package. With the ASRS move and health care increase of just over 6%, the Town to absorb those costs. $280K increase for health care. ASRS will increase 1.2% = $200K. Mr. Reuwsaat noted that the police and elected officials are already in that system. Total employee costs will be $580K. Mr. Montague noted a 4% to 9.6% employee contribution increase, i.e. 5.6% increase in salaries to defray as much cost as possible. Merit increase recommended for January 1, 2008 at 2.5%. Not recommending a COLA this year. Overall, there may be a slight net decline in employee salaries. STEP program to be maintained for police. Public Works allocation of $1.3M to CIP projects - capitalized cost of the capital projects. Jump mid-year caused by 3 new CIP positions and a new methodology. Supplemental Summary/ 126 requests; 109 recommended for approval. Mid-year 20 FTE = $IIM (36 reclassification requests; 52 non=-personnel requests. Try to deal with these in the budget process, but we did add the CIP personnel. Mr. Montague presented and Mssrs. Reuwsaat and Davidson and other staff supplied additional information on each of the categories. Mr. Montague referred to the Departmental Request Report, aggregated by department. General governmental goal is to allocate costs to department but there are certain costs that are generic. But most will be allocated out. Example: janitorial services will be allocated. Also, jail. Insurance is a large general governmental cost. Total is $1.1 M increase is due to insurance. Underinsured reserve is added. Vice Mayor Kai asked if we looking to increase deductibles. Mr. Montague responded yes, but this increase adds insurance reserves. And covers unintended consequences. 2 MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 Mr. Reuwsaat cited an example of the 2006 flood where Operations got contingency funding, noting that all contingency requires Council approval. Additional capacity needs to be approved. T. Van Hook noted that FEMA reimbursement lags by several years; many activities can never be recovered. Probably 75% will be reimbursed. Mayor and Council: Supplemental benefits. Town Clerk: CRW license at $8K, but not funded. Town Manager: Reallocations of personnel into existing departments; also, reclassifications. Net cost reduction due to personnel shifts. Includes full cost of benefits. Human Resources: Safety coordinator. Cost of vehicle eliminated. OSHA and risk management person. Discussed last year. Tuition reimbursement: Only half funded through HR, other half to departments. Finance and Accounting: Accounting supervisor, due to growing town needs. Finance plans to analyze work flow; may be internal controls opportunity re flow of cash; improve efficiencies. All of Development Services uses CRW for tracking. This accounting supervisor position will track those costs. Community Development: Reclassification request. New department - some costs are new one-time costs. Added the employee housing programs to this department - out of CIP. One-time affordable housing study. Public Information Officer: New department; newsletter costs reduced. Will be using the local newspaper for quarterly reports. Will only do a direct mailing of the annual report. Want to publish a report card for the public. We need to buy a page to print what we want. Annual statistics and accomplishments will be covered in the annual report. At the Council retreat we will look at these issues - i.e. how does the average citizen feel that we're going? Try to listen/track better. Economic Development: development opportunities. New department; new position to track economIC Development Services: Administrator and Document imaging function. These are general reclassifications, to move people to appropriate positions. Operations and Maintenance: multiple reclassifications and adjustments and equipment necessary for street maintenance. ADOT requires us to pay for 1-10; we use inmates for this. Covers Pinal County line to Orange Grove Road. GD: This covers inmate salaries, supervisors, gas, transportation. 3 MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 Building Services: Inspector certification funding. Used to get promotion upon certification. This will fund the increase due to certifications. Also, outside plan review change of accounting practice. This just tracks something not previously tracked. Planning & Zoning: Consulting moved to engineering, to track it in the right place. Public Works: Change from part to full time. Transfer administration - moved here to help with transportation planning. Lots of transportation and planning needs; this person will track big picture and forward-thinking transportation planning and coordination; deal with P AG/RT A. A stafflevel position. Nobody in particular identified for this position. This is a manager's requested position. Outside training/consulting reduced - vehicle/fleet availability and needs; and reduced outside consulting. G.I.S.: Programmer analyst to develop programs in-house. Aerial imagery perhaps should be a one-time cost. LT.: New position; cost offset by eliminating a consulting contract. Secretary reclassification based on more technical duties. New operating capital; example, kiosk eliminated as not yet needed. Programs analyst needed, so we can have service in-house; reduce reliance on consultants. A lot of it is hardware as well. Involved with county communication process. May save $250K with Motorola upgrade. We're the only fully inter-operable agency in the area. Police Department. Refer to second page. J ail cost. Some went to public safety. Overtime funding - reduced by vacancy savings. Also, got a grant to offset this - shown in a separate fund. Dispatchers removed based on re-prioritizations. Dispatchers not funded because call load still doesn't appear to warrant it. Richard Viduarri: two on duty at all times. Okay with waiting until next year. Tracker needed to identify where calls are coming from. Moving to community policing - this allows proactive coordination of services; targeted officer resources. Mr. Reuwsaat requested the Chief to analyze further and bring it back; prepare a report for Council for next week. Mr. Reuwsaat also noted that we are going through a complete revamp in MPD; we'll present it to Council in a future study session; and introduce it to Council and the public. Courts: Court probation monitor; fees will partly cover. Parks - Administration: Assorted reclassifications. Context of the increases; extreme expansion of summer programs - costs and revenues. $120,000 Parks master plan study request - funded by park impact fee. Parks and Recreation: Programs connected with new Continental Reserve school. Recreation assistant updates to three-quarters time. 4 MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 Mr. Montague noted that special events - about 60% cost recovery expected, so amount adjusted down. Mr. Reuwsaat said he is concerned about adding special events. Don't compromise quality by moving too far too fast. Mr. Montague said that the programs accounted for differently - costs of revenues reflected in the budget now. Special interest classes should basically cover their costs. Travel reimbursement is for personally-used cars. Parks -Seniors: Services not historically charged back. Parks - Therapeutic: Covered by grant. Water Department: Assistant Water Director position is one of new positions. Two positions eliminated. One time pool of resources for emergency repairs. Airport: Maintenance and dues. Mr. Reuwsaat noted that the town is going through lots of changes, but departments are getting more realistic in their requests. Mr. Montague presented the Supplemental Summary: $152 million preliminary budget (up from $128 million last year). Largest increase ($14 million) is in CIP - due to aggressive approach to projects. Adds a $1 million special revenue fund for grants, including unforeseen, to track government funds (restricted funds) separately. General Fund Summary: $7.2 million increase. Ending fund balance $11.4 million (33% - exceeds 25%). Mr. Reuwsaat stated that fund balance should not be used for ongoing expenditures. Can be used for CIP projects. Council Member Clanagan asked to see the decision justifications which Mr. Montague said he would provide. Mr. Montague noted that in the Water Fund there is a slight change; $127,000 ending balance. With respect to the Airport, there is a minor dip based on leasehold costs; looking to . . mcrease ongomg revenues. Mr. Montague summarized and thanked Corrie Gill. He noted that this summary is still preliminary; there is opportunity for feedback and adjustment. 5 MINUTES OF SPECIAL SESSION MEETING MARANA MUNICIPAL COMPLEX DATE: May 24, 2007 Mr. Reuwsaat said that he expects to get the CIP to Council on Tuesday. The process is completely re-vamped. Kudos to senior staff and department heads for culture change in how we do business. E. 2. Meetings Schedule. Proposed water session next Tuesday. Critical information being development by Frank Cassidy with Si Schorr and Michael McNulty. Would like to move it to June 7. Possible Saguaro Springs financing options discussion as either 6/5 regular or special session at 5:30 p.m. May 29 - special session - executive session dealing with water at 6:00 p.m. May 31 - CIP special session. June 5 - 5:30 p.m. special session and 7:00 p.m. regular session. June 7 - 6:00 p.m. special session, then go into executive session. June 12 -7:00 p.m. tentative budget adoption. June 19 - 7:00 p.m. regular meeting June 26 - special meeting; final budget adoption. July - only one proposed regular meeting. F. ADJOURNMENT Upon motion by Council Member Escobedo, seconded by Council Member McGorray, Council voted unanimously to adjourn. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on May 24, 2007. 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