04/17/2008 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL SPECIAL STUDY SESSION
GOALS & BUDGET RETREAT)
April 17, 2008
Pursuant to due call and notice thereof, a Study Session (Retreat} of the City Council of the City
of Grand Island, Nebraska was conducted at the Edith Abbot Memorial Library, 211 North
Washington Street on April 17, 2008. Notice of the meeting was given in the Grand Island
Independent on April 9, 2008.
Mayor Margaret Hornady called the meeting to order at 5:00 p.m. The following members were
present: Councilmember's Nickerson, Brown, Gilbert, Haase, Meyer, Niemann, Ramsey,
Carney, and Zapata. Councilmember Gericke was absent. The following City Officials were
present: City Administrator Jeff Pederson, City Clerk RaNae Edwards, and Assistant to the City
Administrator Paul Briseno.
INTRODUCTI4N•
City Administrator Jeff Pederson thanked the Mayor and council for attending.
2407-2008 GOALS AND UPDATE:
Assistant to the City Administrator Paul Briseno updated the Mayor and Council on the 2007-
21108 -City Council Goals.
Public Safetx:
• Completed construction on Fire Station #1
• Completed construction on Police/Sheriff Law Enforcement Center
• Emergency Communication censer in progress
Infrastructure:
• Railroad Corridor Study
Government Efficiencv:
• Inter local partnerships were taking place with Public Vliorks and Building Departments
• City Code review and updates -Building and Public Works would be coming forward
4uality of Life:
• Library expansion completed
Start construction of Aerated Static Pile facility needs to come off
Public Health:
• Smoking Ban to take effect .June 1, 2008
Page 2, City Council Special Study Session (Goals & Budget Retreat), April 17, 2008
Discussion was held on the Island Oasis children's play area. Steve Paustian, Parks & Recreation
Director commented this was ready to go pending funding. Emergency Communication Center
(ECC) was discussed with funding provided through a County grant. Cell phone 50 cent funding
was mentioned with an explanation from Jon Rosenlund regarding how the ECC budget worked.
David Springer explained the landline and cell phone revenues and General fund and E-911
fiords. E-911 surcharge was collected by the state.
BUDGET OVERVIEW:
David Springer presented the sales tax and property tax analysis with regards to the 1/2% sales
tax initiative. The additional property tax relief equaled a property tax revenue loss in the amount
of $2,369,333. Expenditures were not keeping up with revenues. Several union contracts were in
the process of negotiations. 3% to 3'/z% increase in personnel costs in the General Fund was
expected for 2008-2009. 70% of the general fund was for personnel costs. Capital projects were
presented and discussed.
The following overview of the budget was presented:
• Revenues not keeping up with personnel costs, let alone other operating.
• Property Tax and Sales Tax Analysis.
• Estimated sales tax growth and a return to _25 property levy only generated abot $675k,
while personnel costs increased nearly $800,
• Nearly ?0% of General Fund operating was personnel. Any new FTEs requested would
need persuasive justifications,
• Capital Projects fund had $14.8 million penciled in for 2009 & $11.7 million for 2010, as
detailed on pages 212-214 of the Budget Book. These would have to be pared at least in
half, even with state/federal contributions.
• Would need to transfer over a million from Police/Fire backstop reserves.
• Need direction on outside .agencies.. Humane Society handled with RFP.
• Goal of case reserves in the $5-6 million range.
• Ongoing annual commitments:
- Economic Development Corporation; $750,000
- Library bonds; $830,000; 2016
- Event Center bonds; $570,000; 2025
- Law Enforcement Center bonds; $855,000; 2018
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Page 3, City Council Special Study Session (Goals & Budget Retreat), April 17, 2008
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Page 4, City Council Special Study Session (Goals & Budget Retreat), April 17, 2448
The City has issued a Request for Proposals for Humane Society services. Discussion was held
concerning a fiiture study session, criteria, and a phasing out for supporting these agencies.
Councilmember Nickerson recommended a committee be appointed to review the criteria for
outside agencies. Councilmember Carney suggested we find out what the value was to the city
from each agency. Mayor Hornady suggested this be the last year to fund these agencies.
Councilmember Gericke was present at 6:20 p.m.
TIMETABLE AND BUDGET PROCESS:
Finance Director David Springer presented the following overview of the budget timeline:
• Concentration heavily on the General Fund which operates the City's functions.
Enterprise Funds function as business entities, receive no tax monies. Any rate changes
must be approved by council.
• Departments submit 2008 projections and new budget request mid-May.
• Departmental conferences with City Administrator/Finance Director, end of May.
• Council involvement and various actions, June into September.
Councilmember Carney was absent at 7:10 p.m.
STATE FAIR PRESENTATION:
Don Dunn, Chairman of the Board of the Grand Island Area Chamber of Commerce presented a
PowerPoint on the State Fair moving to Grand Island. Economic impact, increased city sales tax
revenues, enhanced utilization of the Heartland Events Center, showcase importance of Nebraska
agriculture were a few to the reasons to have the State Fair come to Grand Island. The process of
bringing the State Fair to Grand Island was presented.
Mr. Dunn explained the following Financial Contributions:
Total Improvements = $42 million
Outside Funding = $33.5 million
Community Funding = $8.5 million
The following Community's Funding Opportunities were presented:
• PublicfPrivate Partnerships
• Support from corporations, individuals, local and state-wide foundations
• Potential revenue stream from public sources
* City occupation tax expansion paid by non-residents
* Hall County Agricultural Society
* Economic Development and/or CRA funds, County keno proceeds
The following were proposed City Involvement opportunities:
• North/South Road to provide for improved transportation convenience, pedestrian safety
and emergency responder accessibility
• Infrastructure (parking lot, lighting, recreation, paving, drainage, relocation/extension of
utilities)
Page 5, City Council Special Study Session (Goals & Budget Retreat), April 17, 2008
• 10% match of State Lottery Proceeds to State Fair
Cindy Johnson and Jay Vavricek were present to answer questions. Discussion was held
regarding the $8.5 million funding. Any improvements made by the City within the Fonner Park
area goes towards the $8.5 million, such as dedicated streets, water/sewer lines, electrical lines,
engineering costs, etc. The impact of the State Fair on the City of Lincoln was $27 million gross.
Funding sources were reviewed such as Keno, CRA, EDC - LB 840 funds and bonding up to $5
million without going to a vote of the people. Possible joint bonding with the City and County
was mentioned. Other sources were mentioned such as Community Development Block Grants,
turn back tax, publiclprivate donations, corporations, hoteUmotel occupation tax, etc.
Jay Vavricek commented on the increased activity to the City of Grand Island to get the State
Fair here through new jobs, construction, etc. He stressed it would take the whole community
working together to make this work.
Mr. Dunn stated LB 1116 would to be signed by Governor Heinemann at Fonner Park tomorrow
morning to move the State Fair to Grand Island. The bill included a provision to have a
representative from Grand Island an the State Fair board. Discussion was held on who would
-own the buildings on the sight. Mr. Dunn stated the State Fair would not own the buildings.
Further discussion would need to be held, but would be owned by the community of Grand
Island. The next step for the City would be to create a committee including City, County, CRA,
Chamber, etc. representatives to discuss financing issues.
2008-2009 GOALS DEVELOPMENT:
City Administrator Jeff Pederson commented on the reformation and adoption of a new set of
goals. Mentioned were goal statements to drive the objectives.
Mayor Hornady thanked everyone in attendance.
ADJOUF1~111~IENT: The meeting was adjourned at 9:00 p.m.
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RaNae Edwards
City Clerk
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