08/19/2008 MinutesCITY OF GRAND ISLAND, NEBRASKA.
MINUTES OF CITY COUNCIL BUDGET MEETING
August 19, 2008
Pursuant to due call and notice thereof, a Regular Meeting of the City Council of the City of
Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 140 East First
Street, on August 19, 2008. Notice of the meeting was given in The Grand Island Independent
on August 1 ~, 2008.
Council President Mitch Nickerson called the meeting to order at 7:00 p.m. The following City
Council members were present: Councilmember's Brown, Haase, Nickerson, Gericke, Carney,
Gilbert, Ramsey, Niemann, and Meyer. Mayor Hornady and Councilmember Zapata were
absent. The following City Officials were present: City Administrator Jeff Pederson, City Clerk
RaNae Edwards, Finance Director David Springer, City Attorney Dale Shotkoski, and Public
Works Director Steve Riehle.
INVOCATION was given by Reverend Nancy Lambert, Trinity United Methodist Church, 511
North Elm Street followed by the PLEDGE OF ALLEGIANCE.
RESOLUTIONS:
#2008-217 -Consideration of Approving Contract with IBEW. Brenda Sutherland, Human
Resources Director reported that city administration had negotiated a labor agreement with
IBEW utilities department and finance department that would run from October 1, 2008 through
September 30, 2011. Ms. Sutherland explained the increases in the contract.
Questioned was if there would be an increase in electrical rates if this contract was approved.
Gary Mader, Utilities Director stated this would not increase the electrical rates.
Motion by Meyer, second by Brown to approve Resolution #2008-217. Upon roll call vote, all
voted aye. Motion adopted.
Council President Nickerson and IBEW representatives Mike Semm and Dan Quick signed the
contract.
ORDINANCES:
Councilmember Gilbert moved "that the statutory rules requiring ordinances to be read by title
on three different days be suspended and that ordinances numbered:
#9178 -Sale of Lot 8, Platte Valley Industrial Park Third Subdivision
#9 i 79 -Consideration of Approving Salary Ordinance
be considered for passage on the same day upon reading by number only and that the City Clerk
be permitted to call out the number of these ordinances on first reading and then upon final
passage and call for a roll call vote on each reading and then upon final passage."
Councilmember Haase second the motion. Upon roll call vote, all voted aye. Motion adopted.
Page 2, City Council Budget Meetuig, August 19 & 20, 2008
#9178 -Sale of Lot 8, Platte Valley Industrial Park Third Subdivision
Gary Mader, Utilities Department Director reported Ordinance #9178 would allow for the sale of
Lot 8, Platte Valley Industrial Park Third Subdivision to the Grand Island Economic
Development Corporation in the amount of $125,820.00.
Motion by Meyer, second by Ramsey to approve Ordinances #9178.
City Clerk: Ordinance #9178 on first reading. All those in favor of the passage of this ordinance
on first reading, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted.
Council member Zapata was present at 7:20 p.m.
City Clerk: Ordinance #9178 on final passage. All those in favor of the passage of this ordinance
on final passage, answer roll call vote. Upon roll call vote, all voted aye. Motion adopted.
Council President Nickerson: By reason of the roll call votes on first reading and then upon final
passage, Ordinance #9178 is declared to be lawfully adopted upon publication as required by
law.
#9179 -Consideration of Approving Salary Ordinance
Brenda Sutherland, Human Resources Director reported Ordinance #9179 was the annual salary
ordinance for all city employees for fiscal year beginning October 1, 2008. Many of the wages
reflected labor agreements approved previously by the City Council. It was recommended a
3.75% increase to non-union employees and a. 4.75% increase for department directors. Ms.
Sutherland explained the changes in wages for the union contracts.
Motion by Meyer, second by Ramsey to approve Ordinance #9179.
Discussion was held on the 4.75% increase for Department Directors
Motion by Meyer, second by Carney to amend Ordinance #9179 to decrease the Department
Directors salaries from 4.75% to 3.75%. Upon roll call vote, Councilmember'sMeyer, Niemann,
Ramsey, Gilbert, Carney, Gericke, Nickerson, Haase, and Brown voted aye. Councilmember
Zapata voted no. Motion adopted.
Discussion was held on the Finance Secretary salary. Finance Director David Springer stated this
position was non-union and this was an adjustment for the extra work performed in this position.
Motion by Gericke, second by Meyer to adjust the Finance secretary to the same as all other non-
union secretaries. Upon roll call vote, all voted aye. Motion adopted.
Discussion was held on non-union salaries and how much of a savings would be realized if the
salaries were at 3% instead of the proposed 3.75%. Finance Director David Springer stated he
did not have that information, but could get it for council.
Page 3, City Council Budget Meeting, August 19 & 20, 2008
Motion by Gilbert, second by Carney to postpone Ordinance #9179 to the August 20, 2008
meeting. Upon roll call vote, Councilmember's Ramsey, Gilbert, Carney, Zapata, Haase and
Brown voted aye. Councilmember's Meyer, Niemann, Gericke and Nickerson voted no. Motion
adopted.
Review of Proposed FY 2008!2009 City Sin lg a Budget. Jeff Pederson, City Administrator
presented a brief summary of the city budget including the General Fund, cash balances, and
addendums. Mr. Pederson presented the following Key Fiscal Issues:
• Sales tax revenue growth not sufficient to fund operational increases of the General Fund
• Property tax funding a declining percentage of General Fund operations
• Depletion of General Fund Reserves no longer possible at previous years levels New
expanded revenue sources necessary to "bridge" time until sales tax debt obligations are
paid
• Need to begin to draw down excess monies from Firefighters unallocated fund as a means
to deal with revenue needs of the General Fund
• Property Tax levy needs to begin gradual upward adjustment to assume a greater role in
the General Fund Revenue
• A plan for funding capital projects in the General Fund needs to be identified to include
an increased role for debt financing
The following Major Steps Proposed to Address Issues were presented:
• Increase in property tax mill levy from .238319 to .250000
• Sell General obligation bond of $2 million to provide revenue for public works projects
• Expense several years of City firefighter retirement match against unallocated fund
• Consider only "critical" additions to workforce
• Funding for only the highest priority capital projects
David Springer, Finance Director explained changes to the Proposed Budget book. (See
attached} In addition to these changes were $50,000 reduction in Fire expenses, $450,000
reduction in Public Works paving projects, and the deletion of all the capital items in Emergency
Management due to the County's lack of funding. Mr. Springer stated the city was in good shape
financially.
The council reviewed each department's budget. Discussions were held regarding travel and
training, overtime, and inst>rance.
Motion by Gilbert, second by Gericke to fix the time to which to adjourn to Wednesday, August
20, 2008 at 7:00 p.m. Upon roll call vote, all voted aye. Motion adopted.
ADJOL~IZNMENT: The meeting was adjourned at 9:25 p.m.
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Page 4, City Council Budget Meeting, August. l9 ~ 20, 2008
Cit~Council Budget Meeting -Cont.
AUQtlst 202008
Pursuant to due call and notice thereof, a Regular Meeting of the City Council of the City of
Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First
Street, on August 20, 2008. Notice of the meeting was given in The Grand Island Independent
on August 13, 2008.
Council President Mitch Nickerson called the meeting to order at 7:00 p.m. The following City
Council members were present: Councilmember's Brown, Haase, Zapata, Nickerson, Gericke,
Carney, Gilbert, Ramsey, Niemann, and Meyer. Mayor Hornady was absent. The following City
Officials were present: City Administrator Jeff Pederson, City Clerk RaNae Edwards, Finance
Director David Springer, City Attorney Dale Shotkoski, and Public Works Director Steve Riehle.
The PLEDGE OF ALLEGIANCE was said followed by rail call.
Finance Director David Springer commented on the time-line for completing the budget.
The City Council resumed review of the 2008/2009 proposed budget.
Discussion was held concerning monies budgeted to clean out ditches, culverts, and detention
cells in the Public Works Department. Steve Riehle, Public Works Director stated there were
monies budgeted. Mr. Riehle commented on Stolley Park drainage. Explained was the increase
in the Curbs, Gutters & Sidewalks line item. This was because of Federal regulations.
Steve Paustian, Parks and Recreation Director answered several question concerning the
Heartland Public Shooting Park's budget. Also discussed were capital projects. Mr. Paustian
updated the Council on problems with the Lincoln pool.
Council reviewed the five year capital projects. Discussed were HikelBiker Trails,
Soccer/baseball field development at the veterans Home, Aquatic Development, Grade
Separation at BroadwelUUPRR, and South Locust; I-80 to Hwy 34.
Steve Riehle, Public Works Director explained federal matching funds and what they could be
used for. Discussion was held regarding way-side horns and closing intersections. Chad Nabity,
Regional Planning Director commented that the $150,000 budgeted for way-side horns were for
four crossings and this would be matched with CRA funds.
Steve Paustian, Parks and Recreation Director commented on the Racquet Center. Currently it
was being leased.
Discussion was held regarding the funding of the Hartland Public Shooting Park.
Motion by Gilbert, second Meyer to delete the $150,000 for the CAPP Land Develop-Heartland
Public Shooting Park under the 404 Fund Capital Projects. Upon roll call vote, Councilmember's
Brown, Haase, Zapata, Nickerson, Carney, Gilbert, Ramsey, Niemann and Meyer voted aye.
Councilmember Gericke voted no. Motion adopted.
Page 5, City Council Budget Meeting, August 19 & 20, 2008
Discussion was held on budgeted Misc. Safety Enhancements-RR Study in the amount of
$150,000.
Motion by Meyer, second by Niemann to decrease the 400 Fund Capital Project Misc. Safety
Enhancements-RR Study from $150,000 to $25,000. Upon roll call, Councilmember's Brown,
Zapata, Nickerson, Gericke, Carney, Gilbert, Ramsey, Niemann and Meyer voted aye.
Councilmember Haase voted no. Motion adopted.
Discussion was held on the budgeted purchase of a bob-cat far the Heartland Public Shooting
Park.
Brenda Sutherland, Human Resources Director commented that a decrease of non-union salaries
to 3% would be a savings of $57,608. If Department Director's were included it would be a
savings of $67,973. There would be a savings of $20,000 if the Travel and Training were
reduced 10%.
David Springer, Finance Director explained the Fire & Police Pension fund. A lengthy
discussion followed.
Steve Riehle, Public Works Director answered questions concerning increased sewer system pipe
in the Stolley Park area. Jeff Pederson, City Administrator commented on the 400 Capital
Improvements Fund. Steve Paustian, Parks and Recreation Director commented on the salary
ordinance.
#9179 -Consideration of Approving Salary Ordinance
Motion by Gilbert, second by Haase to amend Salary Ordinance #9179 to decrease the non-union
salaries to 3% with the exception of Division Chiefs of the Fire Department, Wastewater
Superintendent and Library Pages.
Motion by Meyer, second by Carney to call the question. Upon roll call vote, Councilmember's
Meyer, Ramsey, Gilbert, Carney, Nickerson, Zapata, and Haase voted aye. Councilmember's
Niemann, Gericke and Brown voted no. Motion adopted.
Upon roll call vote on amendment to Salary Ordinance #9170 to decrease the non-union salaries
to 3% with the exception of Division Chiefs of the Fire Department, Wastewater Superintendnet
and Library Pages, Councilmember's Ramsey, Gilbert and Haase voted aye. Councilmember's
Meyer, Niemann, Carney, Gericke, Nickerson, Zapata, and Brown voted no. Motion failed.
City Clerk: Ordinances #9179 on first reading. All those in favor of the passage of this
ordinance on first reading, answer roll call vote. Upon roll call vote, Councilmember's Meyer,
Niemann, Carney, Gericke, Nickerson, Zapata, and Brown voted aye. Councilmember's Ramsey,
Gilbert and Haase vote no. Motion adopted.
City Clerk: Ordinance #9179 on final passage. All those in favor of the passage of this ordinance
on final passage, answer roll call vote. Upon roll call vote, Councilmember's Meyer, Niemann,
Carney, Gericke, Nickerson, Zapata, and Brown voted aye. Councilmember's Ramsey, Gilbert
and Haase vote no. Motion adopted.
Page 6, City Council Budget Meeting, August 19 & 20, 2008
Council President Nickerson: By reason of the roll call votes on first reading and then upon final
passage, Ordinance #9179 is declared to be lawfully adopted upon publication as required by
law.
Council recessed at 9:45 p.m. and reconvened at 10:00 p.m.
Discussion was held on the Enterprise Funds. Gary Mader, Utilities Department Director and
Steve Riehle, Public Works Director commented on rate increases.
Motion by Carney, second by Gericke to restore $14,000 in the Legislative budget under Travel
and Training. Upon roll call vote, Councilmember's Ramsey, Gilbert, Carney, Gericke,
Nickerson and Brown voted aye. Councilmember's Meyer, Niemann, Zapata and Haase voted
no. Motion adopted.
Motion by Carney, second by Meyer to hold the Mill Levy at .25 as presented in the proposed
budget.
Motion by Gericke, second by Nickerson to amend the Mill Levy to .27. Upon roll call vote,
Councilmember's Gericke, Nickerson and Zapata voted aye. Councilmember's Meyer, Niemann,
Ramsey, Gilbert, Carney, Haase and Brown voted no. Motion failed.
Roll call upon the main motion to hold the Mill Levy at .25, Councilmember's Brown, Haase,
Zapata, Gericke, Carney, Gilbert, Ramsey, Niemann and Meyer voted aye. Councilmember
Nickerson voted no. Motion adopted.
Discussion was held concerning bonding capital projects. City Administrator Jeff Pederson
stated the City would have to eventually bond capital projects in the future.
Motion by Gilbert, second by Haase to not include $2 million bonding for the Capital Projects in
the 2008/2009 budget. Upon roll call vote, Councilmember's Niemann, Ramsey, Gilbert, Carney
and Haase voted aye. Councilmember'sheyer, Gericke, Nickerson, Zapata and Brown voted no.
Motion failed.
Motion by Meyer, second by Brown to approve $2 million bonding for Capital Projects in the
200812009 budget. Upon roll call vote, Councilmember'sheyer, Gericke, Nickerson, Zapata and
Brown voted aye. Councilmember's Niemann, Ramsey, Gilbert, Carney and Haase voted no.
Motion failed.
Motion by Meyer, second by Ramsey to approve the requests made by Mayor Hornady and the
changes as presented in the addendum on Tuesday, August 19, 2008 with the exception of the
change to Travel and Training in the Legislative budget. Upon roll call vote, Councilmember's
Meyer, Ramsey, Gilbert, Carney, Gericke, Nickerson, Zapata, and Brown voted aye.
Councilmember's Niemann and Haase voted no. Motion adopted.
Discussion was held regarding traffic signals at the Library. Steve Fosselman, Library Director
requested $70,000 to be included in the 2008/2009 budget to complete this project.
Page 7, City Council Budget Meeting, August 19 & 20, 2008
Discussion was held regarding increasing the storm management system pipe from 24" to 36"
along Stoney Park Road. Steve Riehle, Public Works Director commented that the engineering
study in an amount of $50,000 was currently in the budget, but the construction in an amount of
$250,000 was not included in the 2008/2009 budget.
Motion by Gilbert, second by Brown to approve the increase of the storm management system
from 24" to 36" on Stoney Park Road not to exceed $250,000.
Motion by Carney, second by Meyer to postpone this item until Tuesday, August 26, 2008. Upon
roll call vote, all voted aye. Motion adopted.
David Springer, Finance Director stated that if the Council was going to take action on the State
Fair it would have to be done by the September 9, 2008 Council meeting.
ADJOURNMENT: The meeting was adjourned at 11:05 p.m.
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RaNae Edwards
City Clerk
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