CITY COUNCIL BUDGET ADVANCE
TUESDAY, APRIL 21, 2015 - WEDNESDAY, APRIL 22, 2015 CITY COUNCIL CONFERENCE ROOM 211 WEST ASPEN AVENUE 12:00 P.M.
MINUTES
|
|||||||
1. | Call to Order |
||||||||||
Mayor Nabours called the City Council Budget Advance of April 21, 2015, to order at 12:00 p.m. | |||||||||||
2. | Roll Call
Others present: Interim City Manager Jeff Meilbeck and City Attorney Michelle D'Andrea |
||||||||||
3. | FY16 Budget Hearings - City Council Advance | ||||||||||
Mr. Meilbeck stated that a budget of $163 million is a considerable amount of money to be entrusted with; he thanked staff for their hard work in getting the budget to where it is today. He stated that not everything was funded and there are some new investments because of additional resources. The presentations will focus on those elements as well as what is being done with the existing budget. He presented a Prezi presentation to Council that covered the following: FISCAL MOUNT FLAGSTAFF FY 2016 AND BEYOND WHERE DO WE WANT TO BE TANGIBLE OBJECTIVES – WHAT WE DO HOW DO WE GET THERE? WHAT DO WE AVOID? SAFETY FIRST GENERAL FUND CLOSE THE GAP WHERE ARE WE NOW? BASECAMP MISSION AND VISION STATEMENT Revenue Director Andy Wagemaker continued the presentation. WHERE ARE WE NOW - SALES TAX REVENUES Mayor Nabours clarified that the City has a total of $500,000 more than what was anticipated in February and that there may be another $150,000 that is not included in the presented budget package. Mr. Wagemaker stated that in addition to staff budgeting conservatively it is an indication of current growth; the possible $150,000 will not be included in the budget until all the numbers are solidified and confirmed. WHERE ARE WE NOW - STATE SHARED REVENUES WHERE ARE WE NOW - BBB AND HURF REVENUES Finance Director Rick Tadder continued the Presentation. WHERE ARE WE NOW? Mayor Nabours asked where the yearend savings came from. Mr. Tadder explained that there were a few contracts that were not going to spend all of the allocated money and they were able to be applied back to the General Fund. WHERE ARE WE NOW – DEPARTMENT REQUESTS WHERE ARE WE NOW – GENERAL FUND AFTER BUDGET TEAM REVIEW BASECAMP Management Services Director Barbara Goodrich continued the presentation. FUND OVERVIEWS: GOVERNMENTAL BUDGETING “THE COLOR OF MONEY” “THE COLOR OF MONEY” – BUDGETING “THE COLOR OF MONEY” – BUDGET PROCESS “THE COLOR OF MONEY” – FISCAL POLICIES “THE COLOR OF MONEY” – FUND ACCOUNTING “THE COLOR OF MONEY” – CITY BUDGET BY FUND - $163.7 M “THE COLOR OF MONEY” – ENTERPRISE FUNDS “THE COLOR OF MONEY” – CAPITAL PROJECT FUNDS “THE COLOR OF MONEY” – DEBT SERVICE FUNDS - $8.0 MILLION “THE COLOR OF MONEY” – SPECIAL REVENUE FUNDS “THE COLOR OF MONEY” – THE GENERAL FUND “THE COLOR OF MONEY” – THE GENERAL FUND – REVENUES “THE COLOR OF MONEY” – GENERAL FUND – EXPENSES Mr. Meilbeck continued the presentation. HOW DO WE GET THERE? NEW 1X INVESTMENTS IN PROPOSED FY16 BUDGET GENERAL FUND NEW ONGOING INVESTMENTS IN PROPOSED FY16 BUDGET GENERAL FUND REVENUE OPPORTUNITIES AND PRIORITIES Assistant to the City Manager Stephanie Smith continued the presentation. OTHER REVENUE OPPORTUNITIES (YELLOW CARDS) AND UNFUNDED BUDGET
PRIORITIES (BLUE CARDS)
Mayor Nabours asked if the presented revenues had been incorporated into the budget. Ms. Smith explained that the potential revenues are not built into the recommended City Manager budget and that the idea is for Council to direct where those funds should be applied. Vice Mayor Barotz asked if the wastewater tax is part of an enterprise fund. Ms. Smith stated that it is part of the general fund. She also clarified that the housing fund total is $734,000. SOME GOOD…NEWS Mr. Meilbeck stated that there are 11 goals that have been identified by the Council, each presentation by the department directors will touch on each of these goals and how their programs work in line with achieving them. A break was held from 1:20 p.m. through 1:33 p.m. Mr. Meilbeck explained that one of the things that have been added to the budget advance this year is to take a brief moment after each break to talk about a success. He introduced Interim Economic Vitality Director Heidi Hansen who provided a presentation that covered the following. SUCCESS STORY #1: CVB LEADWORKER AND COOL ZONE Human Resources Director Shannon Anderson along with EAC representatives Amelia Mason and Jennilyn Watson continued the budget advance presentation. GOAL #1 – EMPLOYEE INVESTMENTS ATTRACTION AND RETENTION GOAL #1 – INVEST IN OUR EMPLOYEES AND IMPLEMENT RETENTION AND ATTRACTION
STRATEGIES
BENEFITSCouncilmember Putzova asked what the changes to benefits have been over the last few years. Ms. Anderson stated that for the last few years there have been little to no change in the premium to employees because NAPEBT has been using its reserves to offset the increases. Vice Mayor Barotz stated that she has heard about the effort to provide a health clinic to employees and asked if emergency costs would apply to that service. Ms. Anderson explained that the healthcare clinic will be similar to an urgent care but without an x-ray machine. There will be no co-pay to utilize the clinic unless the employee uses the high deductible health plan. Ms. Mason continued the presentation. UNFUNDED BUDGET REQUESTS Mayor Nabours asked if the Police Department pay increase includes Dispatchers. Ms. Anderson stated that Dispatchers are included in the overall 2% increase but are not included as part of the Police Department market based pay increase. Mayor Nabours asked why shift differential funding is only one time. Ms. Anderson stated that the intent is to test it out to see if it is successful; if so staff will look to fund it ongoing next fiscal year. Mayor Nabours asked what the snow operation stipend is. Ms. Anderson stated that Coconino County and ADOT pay higher rates of pay for snow removal operations; this stipend would allow the City to be more competitive in this area in attracting operators. Councilmember Putzova stated that she would like to see the Dispatcher shift differential pay as an ongoing expense and if it is not successful adjustments can be made. Mr. Meilbeck stated that it is fair to say that pulling the funding next year would be difficult even knowing that the first year is a trial run. Mr. Meilbeck stated that the EAC is very engaged in the budget process and he thanked them for their involvement and hard work. Utilities Director Brad Hill continued the presentation. GOAL #2 – ENSURE LONG TERM WATER SUPPLY GOAL #2: ENSURE FLAGSTAFF HAS A LONG-TERM WATER SUPPLY FOR CURRENT AND
FUTURE NEEDS
Vice Mayor Barotz asked if staff is actively monitoring water usage for the ongoing water conservation efforts. Mr. Hill explained that staff bike and walk around town monitoring the usage; they use door hangers and talk to people about water conservation and the appropriate times to water their yards. Vice Mayor Barotz asked how success of the program is measured. Mr. Hill stated that it is not from a water use perspective but rather how much staff is engaging people that are not aware of the regulations contained in the City Code. Councilmember Oravits asked if the staff members have ticket writing authority to which Mr. Hill answered no; they are just able to provide education. Councilmember Brewster asked for Mr. Hill to explain the collaboration with SRP. Mr. Hill stated that SRP is working with NAU to do two watersheds and the technology will be put into City’s watershed. Vice Mayor Barotz asked for clarification on expanding the use of reclaimed water. Mr. Hill explained that there is a waiting list of businesses that want reclaimed water; the supply side is finishing the pump and lift stations that will allow additional supply that will feed some of that demand. Public Works Director Erik Solberg continued the presentation. GOAL #3 – FACILITIES AND INFRASTRUCTURE GOAL #3 – PROVIDE SUSTAINABLE AND EQUITABLE PUBLIC FACILITIES, SERVICES,
AND INFRASTRUCTURE SYSTEMS IN AN EFFICIENT AND EFFECTIVE MANNER
TO SERVE ALL POPULATION AREAS AND DEMOGRAPHICS Deputy Housing Director Sarah Darr continued the presentation. GOAL #4 – AFFORDABLE HOUSING GOAL #4: EXPLORE AND ADOPT POLICIES TO LOWER THE COSTS ASSOCIATED WITH
HOUSING TO THE END USER
Vice Mayor Barotz asked if there are any new Section 8 units planned for construction. Ms. Darr stated that no new ones are planned. Councilmember Overton asked for a description of the average Section 8 program. Ms. Darr explained that it is a voucher with a defined amount. The voucher covers the difference between one third of the renter’s income and the fair market rate of rent. Also included are water and electricity costs. Mayor Nabours asked about the incentive policy for affordable housing. Ms. Darr stated that in 2009 the Council adopted the affordable housing policy that covers part of the building fees and/or permit fees based on the affordability of the units within a development. There are certain incentives for parking, density, and other attributes. It has been set up in a way that developers can pick and choose which options work best for their project. The number and types of incentives that are available are based on the number of affordable units included in the project. Police Chief Treadway and Deputy City Attorney Sterling Solomon continued the presentation. GOAL #5 - PUBLIC SAFETY STAFFING GOAL #5: DEVELOP AND IMPLEMENT GUIDING PRINCIPLES THAT ADDRESS PUBLIC
SAFETY SERVICE LEVELS THROUGH APPROPRIATE STAFFING LEVELS
Flagstaff Metropolitan Planning Organization Manager Dave Wessell continued the presentation. GOAL #6 – RELIEVE TRAFFIC CONGESTION GOAL #6 – RELIEVE TRAFFIC CONGESTION THROUGHOUT FLAGSTAFF Vice Mayor Barotz asked if the research for parking is intended to be citywide or for southside and downtown. Mr. Wessell stated that the intent is to partner with the student housing focus group and then push things out further from there. Councilmember Overton stressed the importance of attempting to get ADOT to the table to work with the student housing projects. Their participation is important and their feedback is vital; being a good partner and encouraging them to participate is a role the City should assume. Mr. Meilbeck continued the presentation. TRANSPORTATION PROJECTS COST OF SOLUTION REVENUE OPTIONS BENEFITS CONGESTION RELIEF SOLUTION Councilmember Brewster asked if an alternative has been set into place should the initiative fail. Mr. Meilbeck stated that the timeline does not include a failure, if it does not succeed it would have to go again in 2021 at a general election. Vice Mayor Barotz stated that this is the first time that the Council has seen the idea and she asked if it could be a work session item to discuss further; the more that is documented now the better. Mr. Meilbeck stated that a work session can certainly be arranged; the point of the presented solution is to show how a major project could be laid out over time. Mayor Nabours stated that he would like to see more focus on the Lone Tree area and the extension of John Wesley Powell. It will be important to identify how Juniper Point will impact the area as well. A break was held from 3:07 p.m. through 3:19 p.m. Fire Chief Mark Gaillard provided a success story on the CART program. CART is an alternative response to Flagstaff’s high incidence of non-emergency and public intoxicant calls for service. The smaller unit is staffed by part-time civilian members of the Fire Department who are trained as EMTs to provide basic life support. The objectives are to slow rising pension costs, find an alternative response model for public intoxicants, to lessen responses of larger emergency response trucks to non emergencies and connect clients to services. The greatest success is the partnerships that have been garnered with the Police Department, Guardian Medical Transport, Northern Arizona University, Catholic Charities, The Guidance Center, and Northern Arizona Regional Behavioral Health Authority. Vice Mayor Barotz asked the definition of non-emergency. Chief Gaillard stated that it is determined through the emergency dispatch protocol. The dispatchers go through a series of questions to determine if an incident is non-emergency and is not anticipating a medical transport. Vice Mayor Barotz asked if an intoxicant call could possibly be an emergency based on the status of the intoxicant. Chief Gaillard responded that it is always possible and the emergency medical personnel on staff are available to address those situations as needed. He added that when a non-emergency call turns emergency the crew can initiate care right there. Councilmember Putzova stated that 110 contacts in five months does not seem like a lot, she asked how many emergency contacts are made during that same time. Chief Gaillard stated that he does not have that information on hand but last year the department just approached 12,000 calls for service; depending on classification 70 or 80 percent of those calls are medical response and of that the estimate is that CART response can represent up to 20%. The idea is to keep the larger apparatus available for emergencies and the smaller vehicles can be used for CART response. Councilmember Brewster asked if the alternative vehicles are at all the stations or just high call areas. Chief Gaillard stated that there is only one CART vehicle operating out of the Ponderosa station. It is a 40 hour a week operation that runs five days per week. Chief Gaillard added that another tool available through the CART program are vouchers that allow people access to taxis, shelters, the Alcohol Stabilization Unit, etc. This is a tool that the City did not have before the CART program and staff is pleased that they have been able to reduce the impact for ambulance service. Mayor Nabours thanked the Chief for the department’s work with the CART program and noted that three years ago there was a work session on this issue and alternatives to dispatching a full service crew to these smaller non-emergency issues. It is great to see a program put into place that addresses the issue. Councilmember Putzova requested additional information with regard to the cost for calls using the CART program in comparison to calls for service with other equipment; she would like to understand the cost savings that is being realized with the program. Deputy City Manager Josh Copley continued the presentation. GOAL #7 – REGIONAL PLAN IMPLEMENTATION GOAL #7 – ADDRESS KEY INSSUES AND PROCESSES RELATED TO THE
IMPLEMENTATION OF THE REGIONAL PLAN
Assistant to the City Manager for Communication Kimberly Ott and IT Director Ladd Vagen continued the presentation. GOAL #8 – IMPROVED COMMUNICATION AND OUTREACH GOAL #8 – IMPROVE EFFECTIVENESS OF NOTIFICATION, COMMUNICATION, AND
ENGAGEMENT WITH RESIDENTS, NEIGHBORHOODS AND BUSINESSES
AND ABOUT CITY SERVICES, PROGRAMS, POLICIES, PROJECTS AND DEVELOPMENTS
Interim Economic Vitality Director Heidi Hansen continued the presentation:
GOAL #9 – ECONOMIC DEVELOPMENT AND PARTNER COMMITMENTS GOAL #9 – FOSTER RELATIONSHIPS AND MAINTAIN ECONOMIC DEVELOPMENT
COMMITMENT TO PARTNERS
Vice Mayor Barotz asked for further explanation on the need to have a Business Attraction Manager given the City’s involvement in ECONA. Ms. Hansen stated that she is not discounting the relationship with ECONA but they are more of a collaborative for all of northern Arizona. Staff feels the need to be focusing on Flagstaff individually and having someone dedicated to finding businesses for the City.
Councilmember Putzova stated that the types of businesses that were mentioned in the presentation are all retail. When people think about business attraction they think about different types of businesses. She asked how staff is introducing other businesses and what is done to reduce competition with existing businesses. Ms. Hansen stated that staff is looking at attracting all businesses and they are looking heavily at biosciences and medical devices. Flagstaff needs short and long term business and that is what this position will be focused on. Councilmember Overton asked why the City cannot ask ECONA to look more locally; he is concerned that there will be a perception of the City going at attraction alone and losing the collaboration that is found with ECONA. Ms. Hansen stated that ECONA only has two staff members so they are limited as well. Simply put, more bodies are needed to do a better job of what is already being done. If the City does not have the bodies to produce the revenue it will remain stagnant. Ms. Watson added that ECONA is supportive of the City getting more capacity; there are things that the City can lose potential for without a dedicated person to go get it. GOAL #10 – DECREASE THE NUMBER OF WORKING POOR Councilmember Putzova expressed disappointment on how this portion of the presentation was done. She stated that it is ok to acknowledge that there is a goal that staff is not making progress on. There are people who are struggling to meet basic human needs; the intention was good but it is ok to say that the City needs to do better in this area. Ms. Hansen stated that what was presented was not everything that the City is doing however, staff missed the mark on this one and that has been noted. Chief Gaillard continued the presentation: GOAL #11 - PREPARE FOR EXTREME WINTER EVENTS GOAL #11 – ENSURE THAT WE ARE AS PREPARED AS POSSIBLE FOR EXTREME
WEATHER EVENTS
Mayor Nabours asked if the Regional Training Coordinator position will be funded in part by the other agencies that are participating. Chief Gaillard stated that there a number of agencies that are coordinating efforts to fund the position. The City Council offered thanks to Mr. Meilbeck and City staff for preparing the budget presentations. It has been an excellent way to educate the Council with just the right amount of detail. Mr. Meilbeck stated that it was a team effort and everyone in the room has been involved in the preparation. Councilmember Overton suggested adding a blue item to the list that would allow room for negotiation on the City Manager salary. There will likely be some back and forth on salary and he would like to avoid an awkward position of the City not being able to attract the right candidate due to lack of funding. |
|||||||||||
4. | Recess |
||||||||||
The April 21, 2015, portion of the City Council Budget Advance recessed at 4:56 p.m. | |||||||||||
5. | Reconvene |
||||||||||
Mayor Nabours reconvened the City Council Budget Advance at 8:03 a.m. on April 22, 2015.
|
|||||||||||
6. | Roll Call
Others present: Interim City Manager Jeff Meilbeck and City Attorney Michelle D'Andrea. |
||||||||||
7. | FY16 Budget Hearings - City Council Advance | ||||||||||
Mayor Nabours recognized Finance Director Rick Tadder for his 20 years of service to the City of Flagstaff.
Mr. Meilbeck provided a PowerPoint presentation that covered the following: STRATEGIES FOR OVERALL STABILIZATION AND GROWING OUR ECONOMY Capital Improvements Engineer Bret Peterson continued the presentation. CAPITAL IMPROVEMENT PROGRAM FY 2016 CAPITAL BUDGET FY17-FY20 CAPITAL PROGRAM GENERAL GOVERNMENT – FY2016 BUDGET GENERAL GOVERNMENT – FIVE YEAR CAPITAL PROGRAM STREETS & TRANSPORTATION – FY2016 BUDGET STREETS & TRANSPORTATION – FIVE YEAR CAPITAL PROGRAM Mayor Nabours asked about the Fourth Street intersection reconstruction and its relation to Canyon Del Rio. Mr. Peterson explained that $3.2 million is a contribution to Canyon Del Rio for that project. BBB FUNDS – FY16 BUDGET Councilmember Overton asked if the work on the train station platform will bring it into ADA compliance for passengers. Mr. Peterson stated that there is some debate about how the platform needs to be raised or if there are other ways to mitigate the deficiency. Community Investment and Redevelopment Manager Karl Eberhard added that the concept is that the platform becomes accessible but staff is struggling to find an alternative method to the platform. Councilmember Overton stated that it is a large concern of many in the public and it could be a positive change for those who use the train. He urged staff to continue to work towards a solution; he stated that he would take ADA compliance over historical value. BBB FUNDS – FIVE YEAR CAPITAL PROGRAM FUTS – FY2016 BUDGET FUTS – FIVE YEAR CAPITAL PROGRAM WATER, WASTEWATER & RECLAIMED – FY16 BUDGET Mayor Nabours asked if the capital improvement requests that are being asked for require a utility rate change. Utilities Director Brad Hill explained that what is before the Council now are projects that can be done within the City’s existing rates. Over the last several years outside consultants have been brought in to determine and prioritize what things need to be done and when. That information is then presented to the Water Commission for their approval prior to it coming before Council. Councilmember Oravits asked if the meter replacement proposal is all meter replacements or just a portion. Mr. Hill explained that the request includes getting the older radios to the existing standard. In some cases meters have to be replaced, as of right now there are approximately 3500 old meters remaining. WATER, WASTEWATER & RECLAIMED – FIVE YEAR CAPITAL PROGRAM AIRPORT – FY2016 BUDGET AIRPORT – FIVE YEAR CAPITAL PROGRAM Mayor Nabours asked about the $600,000 Master Plan update. Airport Manager Barney Helmick stated that $600,000 is what has been advised as the average for this type of project; it takes about 24 months to complete the project in addition to doing a GIS update as part of the project. Mayor Nabours asked if the update will be paid for with general funds. Mr. Helmick explained that the project will be 91.6% grant funded and the remainder will be split between the City and the FAA. Vice Mayor Barotz asked for the objective of the GIS update. Mr. Helmick explained that the GIS update will assist staff in identifying the airport property geographically; it will give the ability to pinpoint specifically with geographical points any changes in the Airport and will expedite getting information to the FAA. Public Works Project Manager Matt Morales continued the presentation. SOLID WASTE – FY2016 BUDGET SOLID WASTE – FIVE YEAR CAPITAL PROGRAM Mr. Peterson continued the presentation. STORMWATER – FY2016 BUDGET STORMWATER – FIVE YEAR CAPITAL FY2016 – 2025 UN-FUNDED CAPITAL A break was held from 9:21 a.m. through 9:41 a.m. Risk Manager Dean Coughenour addressed Council with a presentation on a success story. SUCCESS STORE #4: DECREASE IN EMPLOYEE INJURIES AND SERIOUS INJURIES Assistant to the City Manager for Real Estate David McIntire continued the presentation. REAL ESTATE UPDATE After discussion regarding the possible new revenue opportunities and the other unfunded budget priorities the Council agreed to the following:
Ongoing revenue in the amount of $133,000 generated from an increase in cemetery fees and the revised revenue projections and onetime revenue in the amount of $250,000 from the revised revenue projections.
Ongoing expenses would include Heart Monitors in the amount of $40,000 per year, a $1 salary increase for Dispatchers, and a $32,000 salary contingency for the incoming City Manager. Onetime expenses would included two years of Paramedic Assignment pay and $50,000 to Dispatcher retention and attraction strategies. A break was held from 11:27 a.m. through 11:55 a.m. Community Development Director Mark Landsiedel addressed Council with a presentation on a success story. SUCCESS STORY #3 – BUILDING PLAN REVIEW Mr. Meilbeck thanked the budget team for all of the time and effort put into making the advance a success. Mayor Nabours pointed out that a Council goal is to raise people out of poverty and one of the things that he thought would fit within that category would be the hiring of the Business Attraction Manager. In speaking with Rich Bowen at ECONA he understands that there are a lot of things going on and there are some strong possibilities of getting some high paying businesses into town. ECONA can use all the help they can get in attracting business to Flagstaff and the more good employers there are in town then the more high paying jobs there are available. Councilmember Overton stated that this budget was presented at a much higher level than in the past and he feels that the result will be a good work program. He would like to make sure that there is some room in the Council schedule to allow demonstration of work programs. Because Council did not go into the level of detail as before he wants to make sure that the impacts to the work programs are not forgotten and Council needs to be aware of what goes into how the goals are met. He feels that the process is a good strategy but wants to make sure Council also gets connection with the organization work plan. Mr. Meilbeck agreed and stated that the leadership team has talked about an approach throughout the year that keeps Council connected to the organization with frequent reports. It is an ongoing process and staff will continue to fine tune. Mr. Meilbeck stated that the budget discussion is completed but would like to have a conversation with Council to discuss possible approaches to some of the City problems related to economic development. Ms. Goodrich stated that during the December and August retreats staff often gets requests that outpace the current resources. She would like to discuss how the City can grow itself out of the financial situation and what that looks like to the Council; specifically, what tools the Council like to use and what success looks like. Mayor Nabours stated that he hopes to see Flagstaff get a reputation for being a niche community for something like the biomedical or medical products industry so that people and businesses in that industry want to be in Flagstaff because that is where the others in the industry are. Those are generally well paid jobs that are clean and not very demanding of the City. Councilmember Brewster stated that there is a lot of focus on ECONA right now and their attempts to draw businesses with high paying positions; biosciences is that market. There are a lot of spin offs from biosciences that can work in as well; it is encouraging to know that there are things in the pipeline now at various stages of development. It is important to preplan to address traffic and negative consequences of growth. Mayor Nabours added that he was encouraged by Mr. Meilbeck’s comments about looking at the overall transportation plan; it is one of Council’s goals and one that has been put off way too long. Councilmember Overton stated that he feels that the City has done a pretty good job. The City has become more diversified and there are valuable resources that have been developed. A 2-3% growth rate is great but the challenge is that the City has done things above and beyond the core services and keeping those efforts moving forward may prove difficult. There is still the missing link for existing employers and micro-businesses in Flagstaff. He would like to see an effort to go back to the micro-businesses and check in on if they are getting all the resources they need to be successful in Flagstaff. How the City supports its existing businesses should be a bigger effort. It is important to continue to leverage grant opportunities for the community. He would like to continue looking at the positives such as water resources and forest management. |
|||||||||||
8. | Adjournment | ||||||||||
The City Council Budget Advance of April 22, 2015, adjourned at 12:24 p.m. |
|||||||||||
|