08-18-2009 City Council Regular Meeting PacketCity of Grand Island
Tuesday, August 18, 2009
Council Session Packet
City Council:Mayor:
Margaret Hornady
City Administrator:
Jeff Pederson
City Clerk:
RaNae Edwards
T
u
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Scott Dugan
John Gericke
Peg Gilbert
Chuck Haase
Robert Meyer
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Jose Zapata
Call to OrderCity of Grand Island City Council
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.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item E1
Public Hearing on Proposed FY 2009-2010 City Single Budget
Tuesday, August 18, 2009
Council Session
City of Grand Island
Staff Contact: Mary Lou Brown
City of Grand Island City Council
Council Agenda Memo
From: Mary Lou Brown, Finance Director
Meeting: August 18, 2009
Subject: Public Hearing for FY 2009-2010 Single City Budget
Item #’s: E-1
Presenter(s): Mary Lou Brown, Finance Director
Background
The budget process for the City of Grand Island begins in April with internal budget
compilation and culminates with the submittal of the final budget to the State Auditor in
September. Following are accomplishments that have occurred:
· Departments reviewed their current budgets and submitted 2009-2010 budget
requests.
· Outside Agencies were contacted to submit their budget requests for next year.
· Requests were reviewed with each department by City Administration.
· 2009-2010 preliminary budget was adjusted to promote efficiencies and
effectiveness.
· Individual Board review and approval took place for CRA and Solid Waste Agency.
· On June 16th, the City Council conducted a Study Session to review the proposed
FTE requests, funding of Outside Agencies and Fee Schedule changes. These were
approved on June 23rd.
· On July 14 th, the City Council conducted a public hearing and approved the Solid
Waste Agency Budget.
Discussion
At the August 11th council meeting, the City Council is asked to conduct a public hearing
on the proposed budget to allow for public input. The public hearing will be followed up
by a Special Budget meeting on August 18th and 19th and additionally August 20th, if
needed, where council will be able to ask questions and respond to information
concerning the proposed budget and public input. At the August 18th meeting, the
Council will be asked to make determination on the budget or set further meetings to
move toward determination.
Future steps concerning the budget include:
August 18, 2009 Special Budget meeting.
August 19, 2009 Special Budget meeting, if needed.
August 20, 2009 Special Budget meeting, if needed. County certifies taxable values.
August 25, 2009 Adopt budget and approve lid limit increase.
Council approves BID budgets and assessments and sets date for
Board of Equalization.
September 8, 2009 Public hearing on General Property, Parking District #2, and CRA
tax requests.
Establish Parking District #1 occupation tax request.
Establish property tax requests for General Property, Parking
District #2 and CRA.
Public hearing and amendment to current year budget, if needed.
September 21, 2009 Submit Budget to State Auditor.
September 23, 2009 Board of Equalization for BIDs and ordinance for assessments.
Recommendation
The Council is asked to conduct the public hearing and take information from the
citizens. After conducting the hearing, it is recommended that the City Council take the
information under advisement for further discussion at the August 18th Special Budget
Session
The budget transmittal letter, a “Budget in Brief”, and a draft document of the budget
were provided to Council in mid-July. If any further information is needed, please contact
City Administration.
Item E2
Public Hearing on Community Redevelopment Authority (CRA)
Budget
Tuesday, August 18, 2009
Council Session
City of Grand Island
Staff Contact: Chad Nabity
City of Grand Island City Council
Council Agenda Memo
From: Chad Nabity, CRA Director
Meeting: August 18, 2009
Subject: Community Redevelopment Authority (CRA) Budget
Item #’s: E-2
Presenter(s): Chad Nabity, CRA Director
COMMUNITY REDEVELOPMENT AUTHORITY
2009-2010 ANNUAL BUDGET
It is my privilege to present to you the budget for the Community Redevelopment
Authority for 2009-2010. This plan and budget continues the high-quality services that
have enabled the CRA to partner with the City of Grand Island, private developers and
bus inesses, and with property owners in the blighted and substandard areas to make
Grand Island vibrant, clean, safe, and attractive.
The CRA budget for 2009-2010 is offered to you with a review of the responsibilities of
the CRA. Those responsibilities and abilities are outlined in State Statutes and are
summarized, in part, as follows:
The creation of Redevelopment Authorities was authorized by the Nebraska Legislature
in order to provide communities with the ability to address certain areas of a city in need
of improvement and development. Powers granted to Community Redevelopment
Authorities are outlined in Chapter l8 of the Statutes and include the ability to expend
funds to acquire substandard or blighted areas, make public improvements, and assist
with development and redevelopment projects in specified areas. The Authority has
virtually the same powers as any political subdivision, including borrowing money,
issuing bonds, undertaking surveys and appraisals and asking for a levy of taxes.
A five-member board, appointed by the Mayor with the approval of the City Council,
governs the CRA. The CRA is administered by a Director and devotes the overwhelming
share of its resources to highly visible and effective programs. The CRA funds its
programs primarily through assessments on taxable properties within the Grand Island
city limits.
BLIGHTED AND SUBSTANDARD AREAS
There are Seven (7) designated Blighted and Substandard Areas within the Grand Island
City Limits (see attached map). The City Of Grand Island has the authority to designate
up to 35% of the community a blighted and substandard. At present 16.66% of the City
has been designated blighted and substandard.
CRA MISSION
The CRA’s mission is to reduce, slow or eliminate blighting influences on property in
those areas that have been designated as blighted and substandard. They do this by
encouraging new investment and improved infrastructure in older areas of the community
through the use of tax increment financing. They also take an active role in purchasing
and demolishing properties that need to be cleared. This property is then made available
for redevelopment.
FISCAL RESOURCES
General Revenues For 2009-2010,
The CRA is requesting property tax revenues of $425,000 down from $475,000 in 2008-
09 and down from $500,000 in 2007-2008. Historically, the levies and tax askings have
been:
2008-
2009
2007-2008 2006-
2007
2005-
2006
2004-
2005
2003-
2004
2002-
2003
$0.020790 $0.0225655 $0.022824 $0.023625 $0.024287 $0.025325 $0.024721
$475,000 $500,000 $477,204 $456,540 $457,391 $402,431 $388,713
At the July 21, 2009 meeting, the Community Redevelopment Authority approved the
proposed budget establishing a preliminary request of $0.01950 for each hundred dollars
of valuation for an anticipated $425,000 based on an estimated taxable valuation of
$2,330,443,511.
Program Funding
The Community Redevelopment Authority has the ability to assist private developers and
governmental entities with the commercial, residential or mixed-use redevelopment
projects throughout the City. Specific detail on projects is as follows:
· Purchase of Dilapidated Properties/Infrastructure. The 2008-2009 budget includes
$100,000 for the acquisition of substandard properties in the blighted and substandard
areas and for the provision of infrastructure. The Authority will consider any property
within a designated area.
· Facade Development $150,000 has been budgeted for the façade development
program, including grants and interest buy down these projects are unidentified at this
time. This program has been used extensively in the Downtown area but is available
to all blighted and substandard areas.
· Train Horns: A total amount of $240,000 has been reserved for participation in the
way side horn project in Downtown Grand Island. This project is a joint project
funded by the City and the CRA through an interlocal agreement. Final approvals
from the rail road are moving forward and we anticipate that CRA will make the
payment on the full project during the 2009-2010 fiscal year. This will be a
reimbursement to the City.
· Other Projects: $800,000 has been reserved for other projects in the blights and
substandard areas. This funding can be assigned to specific projects including but not
limited to infrastructure improvements in the blighted and substandard areas that
would support larger redevelopment plans. The authority is specifically looking at
financing “Bucket TIF” projects in residential neighborhoods that have already been
declared blighted and substandard. This process will allow the CRA to help make
significant improvements in the quality of housing available in these neighborhoods.
The CRA has used this funding item in the past to fund additional façade
improvement projects and to make grants to fund specific projects for the: Business
Improvement District, the Grand Parks Department, Fonner Park, The Central
Nebraska Humane Society, St. Stephens, Habitat for Humanity and other community
groups for specific projects that meet the mission of the CRA.
CONCLUSION
A continued aggressive approach toward redevelopment will be the focus for the CRA in
2009-2010. The investments this community has made in housing, redevelopment
efforts, infrastructure and economic development, bode well for the future of the
community.
Given the current climate regarding taxes, development and redevelopment, the CRA is
requesting a less revenue during the upcoming year. The CRA expects to spend a
significant portion of their unspent funds during the coming year. It is hoped that they
will be able to do this in a manner that will enable them to recapture those dollars at a
later date.
2007 2008 2009 2009 2010
Actual Actual Budget Projected Budget
CONSOLIDATED
Beginning Cash 1,309,485 952,497 1,236,622 892,522 1,035,860
REVENUE:
Property Taxes 699,422 750,800 697,796 717,783 667,783
Loan Proceeds -
Interest Income 45,272 41,968 10,000 15,579 8,000
Land Sales 14,837 15,152 50,000 47,335 50,000
Other Revenue 6,506 - - 16,054 -
TOTAL REVENUE 766,037 807,920 757,796 796,751 725,783
TOTAL RESOURCES 2,075,522 1,760,417 1,994,418 1,689,273 1,761,643
EXPENSES
Auditing & Accounting 4,900 5,000 8,000 6,500 7,500
Legal Services 5,500 2,143 10,000 6,000 10,000
Consulting Services 999 - 10,000 - 10,000
Contract Services 48,430 34,362 40,000 35,000 40,000
Printing & Binding - 568 1,000 - 1,000
Other Professional Services 3,429 4,112 6,000 3,000 5,000
General Liability Insurance - - 250 250 250
Postage 142 250 200 200
Legal Notices 303 828 800 800 800
Licenses & Fees - - - - -
Travel & Training 70 - 1,500 - 1,000
Other Expenditures 14 - 500 250 500
Office Supplies 32 105 500 150 500
Supplies - - 300 300 300
Land 15,137 33,090 100,000 129 100,000
Façade Improvement 127,300 207,871 200,000 155,551 150,000
South Locust - - - - -
Other Projects 706,680 - 500,000 15,000 800,000
Property Taxes BID Fees - -
2nd Street BID 150,000 -
Outstanding Façade Improvement Grants - 132,250
Railroad Horns - 240,000
Other Committed Projects 37,500 17,700
Property Management - -
Bond Principal 112,739 142,543 128,002 161,611 161,611
Bond Interest 97,492 93,031 94,794 81,172 81,172
TOTAL EXPENSES 1,123,025 523,795 1,101,896 653,413 1,759,783
INCREASE(DECREASE) IN CASH (356,988) 284,125 (344,100) 143,338 (1,034,000)
ENDING CASH 952,497 1,236,622 892,522 1,035,860 1,860
LESS COMMITMENTS - - - -
AVAILABLE CASH 952,497 1,236,622 892,522 1,035,860 1,860
CHECKING 481,867 786,622 442,522 130,860 (298,140)
INVESTMENTS 470,630 450,000 450,000 905,000 300,000
Total Cash 952,497 1,236,622 892,522 1,035,860 1,860
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2009 - 2010 BUDGET
2007 2008 2009 2009 2010
Actual Actual Budget Projected Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2009 - 2010 BUDGET
CRA
GENERAL OPERATIONS:
Property Taxes 491,210 493,602 475,000 475,000 425,000
Interest Income 44,921 41,561 10,000 15,000 8,000
Land Sales 14,837 - 50,000 47,335 50,000
Other Revenue 4,251 1,300 - 7,077
TOTAL 555,219 536,463 535,000 544,412 483,000
GILI TRUST
Property Taxes 64,571 66,410 65,780 65,780 65,780
Interest Income - -
Other Revenue 324 1,108 - 277
TOTAL 64,895 67,518 65,780 66,057 65,780
CHERRY PARK LTD II
Property Taxes 61,006 62,743 59,180 59,180 59,180
Interest Income 237 251 - 349 -
Other Revenue 68 -
TOTAL 61,311 62,994 59,180 59,529 59,180
GENTLE DENTAL
Property Taxes 3,251 3,497 4,202 4,202 4,202
Interest Income 4 3 - 1 -
Other Revenue 846 947 - 702
TOTAL 4,101 4,447 4,202 4,905 4,202
PROCON TIF
Property Taxes 17,631 18,138 19,162 19,162 19,162
Interest Income 27 53 - 36
Other Revenue 931 972 -
TOTAL 18,589 19,163 19,162 19,198 19,162
BRUNS PET GROOMING
Property Taxes - 9,536 4,986 4,986
GIRAD VET CLINIC
Property Taxes - 3,242 4,940 4,940
GEDDES ST APTS - PROCON 1,195 1,195
SOUTHEAST CROSSINGS 8,866 8,866
WALNUT HOUSING PROJECT
Property Taxes 61,753 93,632 74,472 74,472 74,472
Interest Income 83 100 - 193
Other Revenue 86 10,825 - 7,998
TOTAL 61,922 104,557 74,472 82,663 74,472
TOTAL REVENUE 766,037 807,920 757,796 796,751 725,783
2007 2008 2009 2009 2010
Actual Actual Budget Projected Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2009 - 2010 BUDGET
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting 4,900 5,000 8,000 6,500 7,500
Legal Services 5,500 2,143 10,000 6,000 10,000
Consulting Services 999 0 10,000 - 10,000
Contract Services 48,430 34,362 40,000 35,000 40,000
Printing & Binding - 568 1,000 - 1,000
Other Professional Services 3,429 4,112 6,000 3,000 5,000
General Liability Insurance - 0 250 250 250
Postsge 142 250 200 200
Legal Notices 303 828 800 800 800
Licenses & Fees 0
Travel & Training 70 0 1,500 - 1,000
Other Expenditures - 0 500 250 500
Office Supplies 32 105 500 150 500
Supplies - 0 300 300 300
Land 15,137 33,090 100,000 129 100,000
PROJECTS
Façade Improvement 127,300 207,871 200,000 155,551 150,000
South Locust - 0 - - -
2nd Street BID 0 150,000 -
Outstanding Façade Improvement Grants 0 - 132,250
Railroad Horns 0 - 240,000
Other Committed Projects 0 37,500 17,700
Other Projects 706,680 0 500,000 15,000 800,000
Property Taxes BID Fees 0 - -
Property Management 0 - -
TOTAL CRA OPERATING EXPENSES 912,780 288,221 879,100 410,630 1,517,000
GILI TRUST
Bond Principal 43,604 47,158 51,001 51,001 51,001
Bond Interest 22,176 18,622 14,779 14,779 14,779
Other Expenditures 4
TOTAL GILI EXPENSES 65,784 65,780 65,780 65,780 65,780
CHERRY PARK LTD II
Bond Principal 34,131 36,824 39,729 39,729 39,729
Bond Interest 25,049 22,356 19,451 19,451 19,451
TOTAL CHERRY PARK EXPENSES 59,180 59,180 59,180 59,180 59,180
GENTLE DENTAL
Bond Principal 1,949 2,127 2,276 2,276 2,276
Bond Interest 2,253 2,075 1,926 1,926 1,926
TOTAL GENTLE DENTAL 4,202 4,202 4,202 4,202 4,202
BRUNS PET GROOMING 9,536 4,986 4,986
GIRARD VET CLINIC 3,242 4,940 4,940
PROCON TIF
Bond Principal 8,333 10,601 9,467 9,467 9,467
Bond Interest 10,829 8,561 9,695 9,695 9,695
TOTAL PROCON TIF 19,162 19,162 19,162 19,162 19,162
GEDDESST APTS - PROCON 1,195 1,195
SOUTHEAST CROSSINGS 8,866 8,866
WALNUT HOUSING PROJECT
2007 2008 2009 2009 2010
Actual Actual Budget Projected Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2009 - 2010 BUDGET
Other Expenditures 10
Bond Principal 24,722 33,055 39,151 39,151 39,151
Bond Interest 37,185 41,417 35,321 35,321 35,321
TOTAL WALNUT HOUSING PROJECT 61,917 74,472 74,472 74,472 74,472
TOTAL EXPENSES 1,123,025 523,795 1,101,896 653,413 1,759,783
Item X1
Review of Proposed FY 2009/2010 City Single Budget
Tuesday, August 18, 2009
Council Session
City of Grand Island
Staff Contact: Jeff Pederson
City of Grand Island City Council
July 17, 2009
Honorable Mayor and City Council
Submitted for your consideration is the proposed budget of revenues and
expenditures for the City of Grand Island for the fiscal year of 2009-2010.
Following the adoption in September of the 2008-2009 Budget, a project was
initiated that had the goal of producing information that illustrates pertinent trends in City
finance that would be useful in formulating future budgets and fiscal policies. In
December, the City Council was presented with the Fina ncial Trend Monitoring System.
That presentation highlighted several major fiscal/financial trends that had developed
over the previous ten years, including gradual declines in recent years in the unrestricted
General Fund balance as well as in annual revenue of the General Fund that is available
for financing of capital projects. Additionally, the trend analysis illustrated the fact that
sales tax revenue has not been sufficient to fund inflationary growth in General Fund
spending after meeting the mandated commitments for project funding as well as
replacement of revenues formerly generated by property taxes. Several key indicators
also pointed to the fact that current programs in the General Fund could not be sustained
with existing revenue levels, and that debt financing would be required to sustain a
responsible level of capital improvement projects for facilities that are associated with
General Fund programs.
Grand Island is a growing community, and City government becomes impacted in
many ways as the physical size of the City grows and increased population puts more
demand upon services. The City is fortunate to have a highly competent team of
management professionals, and a workforce that is dedicated to quality service delivery.
With a number of public facility construction and expansion projects completed over the
past few years, City facilities are generally in good shape. The need to construct a new
Fleet Services Facility persists, and the site that the City formerly purchased for a
prospective State Fire Training Center will now be evaluated for suitability for Fleet
Services. Although funding for reconstruction of Lincoln Park Pool is not in the proposed
budget, that project will be discussed with consideration to the information that was
brought forward at a July 21 City Council Study Session.
While Grand Island has been less impacted by the economic downturn than most
cities in the nation, projected sales tax revenue for the current fiscal year will be down by
approximately $125,000, or less tha n 1%. This occurrence, while not insignificant, adds
to a challenge that already existed with respect to available revenue for the General Fund
and for the Capital Improvements Fund. The projected flattening of sales tax revenue
triggered several administrative constraints on spending for the year, including
Office of City Administrator
Working Together for a
Better Tomorrow. Today.
restrictions on travel, a wait period of hiring of open positions, and a requirement for
strict adherence to line-item limits to spending.
A Budget Focus Retreat for Department Directors was held on March 25, during
which the financial picture for the budget preparation was analyzed. Subsequent to that
Retreat, Department Directors were required to undertake two rounds of review of
current-year appropriations in order to identify opportunities to make reductions. These
efforts resulted in a cumulative total of $1,190,000 in reduction to current year spending.
An additional measure taken during this period was a complete review of cost allocation
from General Fund support departments to all of the City utility operations.
This proposed Budget will retain existing program and service levels while
limiting funding for personnel additions to only those deemed to be critical.
Commensurate with that, the sole personnel addition proposed for General Fund funding
is one dispatcher in the Communications Department. Both the Police and Fire
Departments were authorized to submit application for grant-funding for additional
personnel which includes up to four Police Officers and six Firefighters. Successful grant
funding for any of these positions will obligate the City to fully fund the position(s) for a
minimum of one-year after grant funding runs out. Funding for Capital Improvements is
relatively modest and a number of projects have been deferred for future funding
consideration.
Two measures are proposed to be taken that will provide revenue to the General
Fund sufficient to maintain cash reserves near the level of $4.2 million, which represents
approximately 12.5% of the annual General Fund operating budget. An increase in
property tax of $813,371 is included, which would require a mill-levy adjustment from
25 cents to 28 cents. Additionally, this Budget includes a General Obligation Bond sale
of $2 million to provide approximately 46% of the revenue necessary to fund the
proposed Capital Improvement Program. It is anticipated that the City will need to look
more to debt financing for capital improvements in upcoming years in order to
accomplish necessary infrastructure, public works, and recreational facilities
maintenance, replacement, and expansion. Similarly, the property tax mill levy will need
to be closely reviewed annually as a means to generate a greater portion of the revenue
necessary to meet annual operational cost increases and maintain the General Fund cash
reserve at an acceptable level.
The Electric, Water, and Waste-Water utilities will each undertake significant
facilities and systems upgrades in 2009-2010. The Electric Utility plans several system
improvements including $2.7m in distribution improvements and $4m for substation
upgrades. Together with significant upgrades to the Platte Generating Station, the
municipal electric utility continues to reinvest in its ability to continue to provide an
abundant supply of reliable energy to the community.
The City Council has given preliminary approval to a new capital improvements
plan for the wastewater utility that will reinvest approximately $50m into the combined
collection/treatment system over the next 5-7 years. Work on a new two-stage anaerobic
digester system will begin in this budget year, and is expected to be completed the
following budget year. Funding of $375,000 is included as City contribution to continued
work on the Northwest Drainage Project, which is amongst a total of $1.4m proposed to
be spent on drainage projects in the new budget year.
Two capital projects related to the location of the Nebraska State Fair to Grand
Island are included in the proposed budget. The amount of $200,000 is earmarked for
construction of strategic turning lanes on portions of Stolley Park Road between South
Locust and Stuhr Road. Additionally, $1.3m is budgeted for Phase 1 of the Veterans
Athletic Complex which is being constructed to replace athletic facilities lost at Fonner
Park due to requirements for vehicle parking. Monies for this project will be repaid to the
General Fund through annual proceeds from the Food/Beverage occupation tax.
Fiscal Summary
The total 2009-10 budget is projected to be $159,684,400. This is $13,037,330 or 8.9%
more than the $146,647,070 in the 2008-9 budget. Following is a summary of the
appropriations for each of the fund groups contained in the 2009-10 Budget:
General Fund $37,920,369
Permanent Funds $0
Special Revenue Funds $7,349,147
Debt Service Fund $1,668,846
Capital Projects Fund $4,623,500
Special Assessments Fund $0
Enterprise Funds $95,132,770
Internal Service Fund $9,700,700
Agency Fund $1,038,500
Trust Fund $2,250,568
Property Taxes
The proposed property tax requirement for the 2009-10 budget year is $6,525,242 or
14.42% more than the 2008-09 requirement of $5,711,871 The City of Grand Island
va luation for 2009 is estimated at $2,220,443,511; therefore, the property tax levy for the
2009-10 budget year is $.28 per $100 of valuation, which is an increase of 12% from
2008-09.
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 2009-10 budget.
There are adjustments to fees planned to offset increased cost of operation, regulation,
and demand regarding the building, administration, ambulance, humane society, shooting
park, cemetery, aquatics, planning, wastewater, water and electric 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 2009-10 budget:
Non-union employees 4.5% (3-year survey underway)
IBEW-Utilities-Finance 3.75%
IBEW-Wastewater 3.5%
FOP 3.75%
AFSCME 4.0%
IAFF 3.5%
Benefits
The administration of the city’s health insurance was moved to Mutual of Omaha, now
Coventry, three years ago, which held our costs in check. Favorable claims experience
over the past two years, combined with a soft market, created a very favorable climate for
seeking proposals for a new Third Party Administrator and Reinsurance Underwriter. The
Employee Insurance Committee is presently formulating a recommendation for new
contracts that is expected to result in no cost increase to the City for employee
health/dental insurance for the next budget year.
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 balance over the last decade. However, the increase in revenue
sources has not kept up with rising personnel and operating costs, thus a further hike in
the property tax levy may be necessary to maintain appropriate contingency levels. The
2009-10 Budget again includes $44,543,027 in cash balance in all funds and $4, 262,782
in the General Fund. The budgeted cash balance in 2008-09 was $43,350,609 for all
funds and $6,284,777 for the General Fund only. As stated earlier, this amount falls
within the mid-range of the “best practices” recommendation of 10-15%.
½ % Sales Tax
On May 11th, 2004 the voters passed a ½ % city sales tax that was to be used for property
tax relief and to build capital improvements. This year it is projected that we will collect
$4.5m from this sales tax. About $2.3m will be placed in the General Fund to offset
property taxes. The remaining $2.2m will be used to pay a portion of the debt costs for
the following projects:
· Debt Service Library $ 835,000
· Debt Service Law Enforcement Center $ 853,008
· Heartland Events Center $ 572,000
Notable Projects/Expenditures
Following is a list of notable projects/expenditures that have been included in the 2009-
10 Budget:
General Fund
· $750,000 is included to fund economic development activities as determined by
the city’s LB 840 plan.
· Lease payments for the Heartland Events Center are included in the amount of
$572,000
· $835,000 is included to fund the lease payments for the Library expansion project.
· $450,000 is budgeted in the Street Department for repair of concrete streets
· $120,000 is included in the Police Department budget to continue to contract with
Hall County for use of the computerized law enforcement management system.
· The Street Department budget includes a replacement Street Sweeper for
$168,000, an Aerial Lift Truck for $125,000, and a Dump Truck for $84,950.
Equipment Replacement Fund
$180,000 is budgeted to replace an ambulance that was totaled in an accident.
Capital Improvement Fund
· There is $200,000 for Stolley Park Rd turn lanes
· The city’s contribution to the Moore’s Creek flood control project is included for
$250,000
· There is $300,000 for annual paving projects.
· Hike/bike trails are budgeted for $500,000, only if grant monies are obtained.
· $375,000 is allocated for continued support of the Northwest Drainage Project
· The CCC to Wood River drainage project is budgeted for $282,500
· $150,000 is budgeted to update the City’s Comprehensive Drainage Plan
Enterprise Funds
· The Solid Waste Department is including a wheel loader $230,000, semi-tractor
$110,000, transfer trailer $80,000, truck maintenance building $80,000, excavator
$90,000 and re-permitting $135,000.
· There are projects to keep up with growth in the Electric Department including
$1,200,000 in materials to expand the overhead distribution system; $1,500,000 in
materials to expand the underground distribution system to meet continued city
growth and expansion; and $4,000,000 to pay for additional distribution
substations.
· The Water Department includes $550,000 for U.P. main line and Airport water
main replacement and $250,000 for new water main districts.
· The Water Department is also planning for trunk line expansions of $650,000
Engleman and $275,000 for Painting of Burdick in and out.
· The Sewer Department plans to precede with aerobic digester improvements for
$7,850,000 next year, build a concrete paving to storage facility $45,000,
machinery and equipment $207,650, Pickup $32,000, lift station #7 improvements
$150,000, sewer rehabilitation of St. Patrick Avenue $350,000, future sewer
districts $250,000, upgrade SCADA system $609,000, install new mechanism
primaries $1,050,000 and Hydrogen Sulfide controls $250,000.
· The Golf Course plans to purchase $48,000 in airifiers and a Seeder for $13,000.
Acknowledgments
As expected, the City of Grand Island Budget can not be balanced without an
increase in property taxes to maintain the current program of services to the citizens. We
commend the Department Directors who oversee General Fund Departments for their
diligence in identifying cost-cutting opportunities where they existed. We do believe that
present staffing levels are appropriate to the demands for service that the City is presently
fulfilling.
Future decisions to eliminate or reduce programs may produce opportunities to
lower costs associated with staffing. The City has embarked upon a substantive process
of “Prioritization” that will assist in determining the present and future value of City
programs for consideration for future budgetary allocation.
We would like to thank everyone who contributed to the many difficult decisions
that went in to this Proposed Budget. Several individuals played key roles in the process
of information generation, budget formatting, and data-entry. In particular we recognize
the efforts of Paul Briseno, Jaye Monter, and Yolanda Rayburn.
Finally, we would like to thank the City Council for its policy direction and support.
We look forward to working together for another successful year on behalf of the citizens
of Grand Island.
Respectfully Submitted,
Jeff Pederson, City Administrator
David Springer, Finance Director