07-19-2005 City Council Study Session PacketCity of Grand Island
Tuesday, July 19, 2005
Study Session Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Gary Greer
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Carole Cornelius
Peg Gilbert
Joyce Haase
Margaret Hornady
Robert Meyer
Mitchell Nickerson
Don Pauly
Jackie Pielstick
Scott Walker
Fred Whitesides
City of Grand Island City Council
Call to Order
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
Invocation - Pastor Mike Reiners, Peace Lutheran Church, 4018 Zola Lane
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
City of Grand Island City Council
Item -1
Review of 2005-2006 Fee Schedule
Tuesday, July 19, 2005
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council
Council Agenda Memo
From: David Springer, Finance Director
Meeting: July 19, 2005
Subject: Review 2005-2006 Fee Schedule
Review FTE Requests
Review Funding for Outside Agencies
Item #’s: No. 1, 2, and 3
Presenter(s): David Springer, Finance Director
Background
There has already been a great deal of work expended on the City budget preparation
prior to reaching this first introduction to the Council. We began in March with goals
established at the Council Retreat. Department Directors submitted their budgets in
detail in May for review by City Administration. The many capital projects in our plans
and the upward push of operating expenses make efficiencies and conservation of
resources more important than ever before. To date, the budget process has entailed:
* Departments reviewed their current year expenditures and submitted their
2005-2006 budget requests.
* Outside Agencies were contacted to submit their requests for next year.
* Requests were reviewed with each department by City Administration.
* A reduction of 3% from this year’s spending projections was asked by City
Administration, resulting in over a half million in cuts for fiscal 2004-2005.
* Budgets for next year were adjusted to promote efficiencies and capital projects
were pared down to only those committed for to reach a manageable level of
appropriations.
* The Business Improvement Districts, CRA and Solid Waste Agency boards
approved their budgets for review by Council.
* The Finance Department has computed and compiled all information to complete
the budget.
Discussion
The July 19th meeting commences the first steps in approving the City’s 2005-06 budget.
This evening, our intent is to review the following information which is attached:
· User fee schedule.
· Personnel FTE (Full Time Equivalent) request schedule.
· Outside Agency requests.
The Council is asked to review each of these and ask any questions that will clarify the
information. Outside Agencies have been notified of this meeting but no presentation
has been requested, as their submittals are fairly detailed. City Administration
recommendations for funding are included for guidance.
As a precursor to the entire city budget, the City Administrator’s Budget Transmittal
Letter is included. This should allow for a comprehensive view of the upcoming budget
and provide indications of the budget direction.
Recommendation
City Administration recommends that the City Council review all information and
discuss related issues to allow for later determination at the July 26, regular Council
Meeting. Any recommended adjustments should be indicated for preparation of the final
budget.
Honorable Mayor and City Council,
July 5, 2005
The City of Grand Island Management Team is honored to present the 2005-06 budget.
This year’s budget has been very difficult due to the demands associated with a growing,
changing community. There are many exciting projects going on that the City of Grand
Island is financially supporting. Projects such as the Heartland Events Center, Economic
Development program, South Locust Interstate Connection project and Heartland Public
Shooting Park are examples of community investments that will provide long term
prosperity for all citizens and businesses.
Growing communities create special challenges for municipal governments. To create a
successful budget there is a great need to focus and prioritize on goals and objectives. In
times of prosperity many opportunities can emerge. City government must sort out all of
the new opportunities, choose which provide the best return on investment and balance
them with existing initiatives. In preparing the budget City Administration has attempted
to accomplish a conservative fiscal plan that will increase efficiency and effectiveness
across the board.
2005-06 will be a year which will see the implementation of ongoing projects that have
been planned for the community. Construction of Fire Station #1, the Public Safety
Center and expansion of the Library are emphasized as the top priorities. Additionally,
the continued development of the Heartland Public Shooting Park, L.E. Ray Lake,
Stolley Park Arboretum, Hike/ Bike Trail expansion, Locust Street Interstate Connection,
Household Hazardous Waste Facility and National Guard Helicopter Facility will
continue as priorities.
The most significant new initiative in the budget regards the development of a
comprehensive storm water program. This is, in part, response to regulatory
requirements and efforts to react to deficiencies identified during the May 11, 2005 flood.
The City has programmed funds to hire a storm water technician, prepare a storm water
master plan and to complete projects to mitigate storm water problems. Additionally, the
Prairie/Silver/Moore’s Creek Flood Control project will be continued with the Central
Platte Natural Resources District, Hall County and Merrick County.
Overall, it appears that the financial health of Grand Island will be strong for the next
year. Focusing on current projects and prioritizing spending in this year’s budget has
allowed the city to hold the line on the tax rate while still responding to growth. Moving
forward, it will be critical to allocate resources in the most efficient and effective way to
assure continued financial health.
Following are summary sections geared to provide an understanding of the priorities of
the budget along with highlights of the fiscal plan.
Fiscal Summary
The total 2005-06 budget is projected to be $125,462,850. This is $7,201,376 or 6.1%
more than was proposed ($118,261,474) in the 2004-05 budget. Following is a summary
of the budget for each of the fund groups contained in the 2004-05:
General Fund $ 32,341,346
Permanent Funds $ 0
Special Revenue Funds $ 3,921,977
Debt Service Fund $ 1,499,089
Capital Projects Fund $ 14,002,753
Special Assessments Fund $ 0
Enterprise Funds $ 61,480,448
Internal Service Fund $ 9,745,942
Agency Fund $ 562,800
Trust Fund $ 1,908,495
Property Taxes
The proposed property tax requirement for the 2005-06 budget year is $5,070,000 or
7.7 % more than the 2004-05 requirement of $4,708,194. The City of Grand Island
tentative certified valuation for 2005 is $2,028,000,000; therefore, the property tax levy
for the 2005-06 budget year is $.25 per $100 of valuation. The property tax levy is
proposed to be the same as it was in 2004-05.
User Fees
A great deal of scrutiny has taken place on User Fees to assure proper revenue for the
Departments that collect fees for their services. In reviewing the various fee based
departments some deficiencies were identified and are addressed in the 2005-06 budget.
There are adjustments to fees planned to offset increased cost of operation, regulation,
and demand regarding the golf course, police, ambulance, cemetery, aquatics, planning,
wastewater, and utility service activities.
Compensation, Benefits, and Staffing
Compensation
In order to keep salaries competitive, comparable and in accordance with agreed upon
contracts the following salary adjustments are included in the 2005-06 budget:
Non-union employees 3 %
IBEW 3 %
FOP 4.7 %
AFSCME 2.5 - 3% approximately
IAFF 4.5% approximately
Benefits
There is one notable change in benefits for Non-union city employees and several
measures are being taken to react to rising health insurance costs for all employees.
· The budget includes an increase in the contribution to the Non-union employee’s
HRA/VEBA account from $17 per pay period to $20 per pay period.
· The following changes to the City Health Insurance Plan are proposed:
The total premium is being increased by 7%.
Employees are being asked to pay a higher percentage of the premium cost for
health insurance. Proposed is increasing the amount the employee pays from
8% for single coverage and 12% for all other levels of coverage to 10% for
single coverage and 13% for all other levels of coverage.
Deductibles are being proposed to increase from150/300 to 200/400 and the
maximum out-of-pocket is proposed to increase from 800/1600 to 1000/2000.
The chiropractic limit is proposed to increase from $500 per year to $750 per
year and sets the office copay at $25.
A lifetime limit is proposed on bariatric (gastric bypass) surgery to $10,000.
In order to streamline the process for appeals the insurance company will
assume the duties of claim fiduciary.
Staffing
It was the attempt of City Administration to only allow changes in personnel when they
were overwhelmingly justified, responded to Federal/State mandates, enhanced efficiency
or were connected to a revenue stream. After reviewing all positions of the City there will
be a 4.695 increase in FTE’s for the 2005-06 budget year. Following are the key position
changes included in the 2005-06 budget by department:
Finance/ IT Department
A reduction of one position (Accounting Clerk) is proposed in the Finance Department
due to efficiencies associated with the implementation of the Cities computer system.
Building Inspection Department
One (1) Plans Examiner is included in the Building Department to keep up with the
extensive work load and to provide better service to developers/contractors. Revenue
from building permits is projected to far exceed the cost for this position.
Parks & Recreation Department
One (1) part-time position is included to assist at the Heartland Shooting Park. This
position will help with administrative functions, customer support and event
coordination. Revenues from the Shooting Park are projected to pay for this position.
Sewer Department
Two (2) Maintenance Workers and 1.195 seasonal workers are included in the Sewer
Department to meet the demands of new processes at the treatment plant which will
create greater efficiency, effectiveness and fewer odors. These positions will also allow
for more hours being spent on sewer maintenance. Sewer revenues are proposed to cover
the costs of the new positions.
Public Works Department
One (1) Storm Water Technician is proposed in the Public Works Department to respond
to new storm water regulations promulgated by the State and Federal Government and to
assist in the improved management of the storm water system.
Cash Balance
It is extremely important to maintain cash balances in the City Budget to assure cash flow
strength, promote prudent spending and to have adequate reserves in case of an
emergency. Grand Island’s conservative approach to budgeting and spending has allowed
for proper levels of cash bala nce over the last decade. The 2005-06 budget again includes
$30,245,913 in cash balance in all funds and $5,385,607 in the general fund. The
budgeted cash balance in 2004-05 was $32,466,256 for all funds and $6,021,086 for the
General Fund. Strong economic conditions and conservative spending should allow the
City to maintain an appropriate level of contingency.
Notable Projects/Expenditures
Following is a list of Notable Projects/Expenditures tha t have been included in the 2005-
06 budget:
General Fund
· $750,000 is included to fund economic development activities as determined by
the Cities LB 840 plan.
· Bond payments for the Heartland Events Center are included in the amount of
$587,000.
· $829,572 is included to fund the lease payments for the Library expansion project
· 1 unmarked ($18,000) and six marked ($150,000) police vehicles along with 2
police motorcycles ($31,000) are included to replace aging units.
· $180,513 is included in the Police Department budget to continue to contract with
the County for use of the computerized law enforcement management system.
· A maintenance building ($18,000) and a lawn tractor ($17,000) included for the
City Hall Maintenance division.
· Replacement of two fire station roofs ($46,000) and one ambulance ($165,000) is
included in the Fire/Ambulance Services budget.
· A replacement vehicle ($16,500) is included in the Engineering budget.
· The Street Department budget includes a replacement front-end loader ($98,000),
two pickup trucks ($28,000); a 10 cubic yard dump truck ($64,600); and a flat bed
truck with spreader box ($55,300).
· The Library will continue the automation system enhancement program for
$35,000.
· The Building Inspection department will replace a vehicle for $18,000.
· The Parks Department plans to purchase playground equipment ($25,000) and
replace two pickups ($34,000).
· The Cemetery will replace a mower for $20,000.
· The Heartland Shooting Park budget includes $25,000 for a 4-wheel drive pickup.
Capital Improvement Fund
· $4,098,853 is included in this year’s budget for the initial construction costs for
the Public Safety Center.
· The total cost for the construction of Fire Station #1 ($2,000,000) and the land
cost for the Fire Training Facility ($573,900) is included.
· The Street Department is budgeting for concrete ditch lining projects ($50,000);
major drainage projects ($150,000), and the Capital Avenue project ($2,570,000)
of which $1,616,250 is reimbursable.
· A traffic signal near the Public Safety Facility is planned for $180,000.
· There are several street related projects in the budget. They include; South Locust
bridges 4125R, $1,095,000; 4120R, $1,060,000; engineering and annual paving
projects, $500,000. $50,000 is included for annual sidewalk projects.
· The continued funding of the CAAP land development project is included for
$250,000; $525,000, including $400,000 from the State of Nebraska, for
Hike/Bike trails, $50,000 for the Stolley Park Arboretum, and $50,000 to update
L. E. Ray Lake property.
Enterprise Funds
· The Solid Waste Department is including a wheel loader ($230,000); compost
turner ($25,000); transfer trailer ($70,000); semi-trailer ($85,000) and a 4 X 4
pickup ($30,000).
· The Electric Department will upgrade the 115 kV transmission line to
accommodate the CXT plant expansion ($700,000); replace a pickup at Burdick
Station ($20,000); two bucket trucks ($350,000); overhaul the coal
dozer/locomotive along with a front-end loader ($125,000).
· Transformer installation for substations E (north of the Swift facility) and F (north
of Menard’s) are planned for a cost of $1,300,000.
· The water department includes $52,150 for cost sharing for a well field
hydrologic study; $30,000 for a used 10 yard dump truck; and $370,000 to extend
a water main from Skypark Road to the new National Guard Helicopter facility.
· The Sewer Department plans to purchase a loader, ($324,000); building additions
for buildings 6 & 2 ($330,000); a compost spreader ($35,000); two replacement
pickups ($60,000) and a dump box for a truck ($35,000).
Special Revenue Funds
· The Enhanced 911 Communications department budget includes $140,000 for a
new telephone system to replace the current outdated equipment.
Acknowledgments
A great deal of time and hard work has gone into the construction of the 2005-06
budget. Special thanks go to David Springer, Finance Director for his undying effort
to present a professional budget. Jaye Monter, Senior Accountant and Yolanda
Rayburn, Senior Accounting Clerk were very dedicated in their efforts to assist Mr.
Springer. Paul Briseno, Assistant to the City Administrator served as an outstanding
budget analyst. The City Directors should also be complimented for their hard work,
conservative and pragmatic approach to creating their budgets. Although the
challenges were great to bring in an effective and efficient budget the Directors
focused their efforts and were committed to the fiscal goals of the City.
Finally, City Administration would like to thank the Mayor and City Council for their
policy direction and support. We look forward to working together for another
successful year on behalf of the Citizens of Grand Island.
Respectfully Submitted,
City of Grand Island
Gary D. Greer
City Administrator
Item -2
Review of FTE's
Tuesday, July 19, 2005
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council
SUMMARY OF REQUESTED FTE'S, FISCAL YEAR 2005-2006
( Five Year Financial Impact )
Requested 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Dept No.Department Name FTE Estimate Estimate Estimate Estimate Estimate
GENERAL GOVERNMENT
114 FINANCE
Less: Accounting Clerk (1.00) (42,203)(43,469) (44,773) (46,116) (47,500)
PUBLIC SAFETY
220 BUILDING INSPECTION
Plans Examiner 1.000 54,568 56,205 57,891 59,628 61,417
PUBLIC WORKS
133 ENGINEERING
Senior Engineering Technician 1.000 53,976 55,595 57,263 58,981 60,750
COMMUNITY ENVIRONMENT & LEISURE
448 Heartland Shooting Range
Seasonial Parks Worker 0.500 10,964 11,293 11,632 11,981 12,340
PROPERTY TAX REQUIREMENT
GENERAL GOVERNMENT (1.00) (42,203)(43,469)(44,773)(46,116)(47,500)
PUBLIC SAFETY 1.000 54,568 56,205 57,891 59,628 61,417
PUBLIC WORKS 1.000 53,976 55,595 57,263 58,981 60,750
COMMUNITY ENVIRONMENT & LEISURE0.500 10,964 11,293 11,632 11,981 12,340
GENERAL FUND PROPERTY TAX REQUIREMENT1.500 77,305 79,624 82,013 84,473 87,007
============================================================
ENTERPRISE FUND
300 SEWER UTILITY
Maintenance Worker I 1.000 43,607 45,787 48,077 50,481 53,005
Maintenance Worker II 1.000 46,076 48,380 50,799 53,339 56,006
Seasonal Workers 1.195 25,130 26,387 27,706 29,091 30,546
TOTAL SEWER UTILITY 3.195 114,813 120,554 126,581 132,910 139,556
TOTAL ENTERPRISE FUNDS 3.195 114,813 120,554 126,581 132,910 139,556
TOTAL CITY 4.695 192,118 200,178 208,594 217,384 226,563
Item -3
Review of Funding for Outside Agencies
Tuesday, July 19, 2005
Study Session
City of Grand Island
Staff Contact: David Springer
City of Grand Island City Council
CHARITABLE AGENCIES
2003 2004 2005 2006 STAFF 2006
ORGANIZATION FUNDED FUNDED FUNDED REQUEST RECOMMEND BUDGET
Comm. Humanitarian Res. Cent.(Hope Harbor)4,500$ 4,500$ 4,500$ 15,000$ 4,500$
Convention and Visitors Bureau 10,000$ 10,000$ 10,000$ 20,000$ 10,000$
Council for International Visitors 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Crisis Center 10,200$ 12,000$ 12,000$ 13,000$ 12,000$
Family Violence Coalition of Central NE 10,000$ -$ -$ -$
G. I. Dive and Rescue Team - Trailer 9,772$ 2,500$ -$ 2,940$ -$
Retired and Senior Volunteer Program 10,000$ 10,000$ 10,000$ 10,000$ 10,000$
Senior Citizens Industries, Inc.15,000$ 15,000$ 15,000$ 15,000$ 15,000$
Multicultural Coalition 10,000$ 10,000$ 10,000$
Fishing Derby 2,000$ 2,000$ 2,000$ 2,000$ 2,000$
Kaufman-Cummings Park 10,000$ -$
Grand Theatre Foundation, Inc.10,000$ -$
Totals 72,472$ 57,000$ 64,500$ 108,940$ 64,500$ -$
AGENCIES WITH WORKING RELATIONSHIPS WITH CITY DEPARTMENTS
2003 2004 2005 2006 STAFF 2006
ORGANIZATION FUNDED FUNDED FUNDED REQUEST RECOMMEND BUDGET
Central Nebraska Humane Society 150,000$ 150,000$ 157,500$ 162,000$ 157,500$
Central Nebraska Health Department 374,440$ 135,000$ 135,000$ 135,000$ 135,000$
Clean Community Systems 18,000$ 20,000$ 20,000$ 20,000$ 20,000$
Totals 542,440$ 305,000$ 312,500$ 317,000$ 312,500$ -$
TOTAL OUTSIDE AGENCIES 614,912$ 362,000$ 377,000$ 425,940$ 377,000$ -$