06/21/2016 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
June 21, 2016
Pursuant to due call and notice thereof, a Study Session 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
June 21, 2016. Notice of the meeting was given in the Grand Island Independent on June 15,
2016.
Mayor Jeremy L. Jensen called the meeting to order at 7:00 p.m. The following Councilmembers
were present: Mitch Nickerson, Mark Stelk, Chuck Haase, Linna Dee Donaldson, Vaughn
Minton, Roger Steele, and Mike Paulick. Councilmembers Jeremy Jones, Julie Hehnke and
Michelle Fitzke were absent. The following City Officials were present: City Administrator
Marlan Ferguson, City Clerk RaNae Edwards, Finance Director Renae Griffiths, City Attorney
Jerry Janulewicz, and Public Works Director John Collins.
Mayor Jensen introduced Community Youth Council member Rebecca Peterson.
INVOCATION was given by Community Youth Council member Rebecca Peterson followed by
the PLEDGE OF ALLEGIANCE.
SPECIAL ITEMS:
Discussion of General Fund FY17 Budget. City Administrator Marlan Ferguson stated there was
a lot of information sent out and tonight we would cover the General Fund. The 400 Fund and
Gas Fund would also be reviewed. Projections for the next five years were not looking good.
Staff and the sub-committee had spent time working on the budget. The 2017 Budget included
no new FTE's or operating increases. The goal was to increase revenues and decrease expenses.
Mayor Jensen thanked the Department Directors for being at the meeting and the work they had
done. He challenged everyone to look at the economics of the City and not the politics.
Finance Director Renae Griffiths reviewed the highlights of the General Fund. Projections were
listed at 2% increase in revenues and personnel increase of 5%z%. Mentioned was a deficit of 4
million dollars. Expenditures were growing at a faster rate than revenues. The state fair building
would be paid off this year with no payment in the 2017 budget. Non Department Revenue was
reviewed with sales tax being the largest revenue followed by property tax. The Public Works
Street and Transportation Fund would be moved from the General Fund to the Gas Tax Fund.
Total estimated revenues in the Gas Tax Fund were $10,774.939. Road projects would be paid
for by gas tax money.
Briefly mentioned were the 400 Capital Improvement projects. General fund capital included the
training tower for the Fire Department. Ms. Griffiths suggested increasing revenue by $1.5
million through tax changes (new or existing) and changes to the Enterprise Fund fees. Expenses
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of $1.5 million impact included wages comparison delay -$200,000; benefit cost changes -
$230,000; and General Fund expense reductions -$1,070,000.
Discussion was held regarding bonding or borrowing money for the ambulance and fire truck
which had been encumbered but not paid for yet. Assistant Finance Director Billy Clingman
stated this was budgeted in the 2016 budget.
Mayor Jensen stated we relied heavily on sales tax and it was trending lower than last year. He
did not want to see a tax levy increase this year. Ms. Griffiths commented on cost savings by
departments not spending their budget and/or not filling vacant personnel positions. Future
projects and their impacts on future budgets were mentioned. The Street Fund was being
supported by property tax.
Mr. Ferguson stated yesterday they found out that we would lose $160,000 from state aid for
2017. The lower the t�es the less state aid we would receive. Councilmember Minton stated we
needed to be cautious of cutting services because someone else would need to pick those services
up. It was mentioned we needed to see what a property tax increase would bring in. Public
Works Director John Collins commented on Highway 281 and Highway 30 projects which were
joint efforts with the State of Nebraska. Highway 281 was a maintenance project in which the
City would pay for hal£ Highway 30 was a realignment project in the amount of $26 million.
Councilmember Paulick commented on the following five solutions: 1) freeze hiring; 2) cut
departments in General Fund; 3) raise property tax 3%2%; 4) cut staff/services; and 5) 1/2 cent
sales tax. Councilmember Nickerson stated we needed to look at raising property taxes to make
an impact on the programs we wanted/needed and future budgets. The amount of cash reserves
was mentioned along with long term needs for Capital projects. He stated the decisions we made
this year would affect the next four year budgets. Ms. Griffiths stated the biggest impact to the
General Fund budget would be hiring freezes and not replacing vacant positions.
Mayor Jensen commented on the mill levy which tied into the valuation. Increasing the mill levy
to the max would bring in $4 million. He stated consumption tax was the way to go. Discussion
was held concerning the amount we should have in cash reserves and sustainable revenues.
Councilmember ponaldson wanted to see the following: 1) increase of 1/2 cent sales tax; 2)
increase of property tax; 3) attrition and staff; 4) outsourcing mowing; and 5) change benefit cost
to staf£ Mr. Clingman stated the 1/2 cent sales tax increase would not go to the General Fund but
to Capital projects.
Councilmember Haase commented on the reserve balance which had to be between 0% and 50%
which affected the interest rate on bonding. He commented on the challenges of this budget and
had confidence in the Administration and staff to bring forward the options that needed to be
considered.
Ms. Griffiths stated the next budget session would be July 19, 2016. Mr. Ferguson stated they
would be looking closely at each department's budget, personnel expenses and costs, insurance
claims, health insurance, travel and training costs, outsourcing, etc. He mentioned the Food and
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Beverage Tax would bring in money for specific projects which would help, but also would
create more costs.
Mayor Jensen stated we were not a City that was standing still; we were growing and the
importance of bringing people to the City to spend their money. Mentioned was the I-80
expansion. He stated he didn't want this to cast a negative light on Tax Increment Financing as
those projects would bring positive tax revenue in the future. Annexation was also mentioned to
increase the tax base.
ADJOURNMENT: The meeting was adjourned at 8:09 p.m.
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RaNae Edwards
City Clerk