HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/25/2008 PLEASE NOTE: Since the Glendale City Council does not take formal action at
the Workshops, Workshop minutes are not approved by the City Council.
MINUTES
CITY OF GLENDALE
CITY COUNCIL BUDGET WORKSHOP
MARCH 25, 2008
1:30 P.M.
PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Manuel D. Martinez, and
Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet,
Yvonne J. Knaack, and H. Phillip Lieberman
ALSO PRESENT: Ed Beasley, City Manager; Pam Kavanaugh, Assistant City
Manager; Craig Tindall, City Attorney; and Pamela Hanna, City
Clerk
1. FISCAL YEAR 2008-09 BUDGET- 1ST WORKSHOP
CITY STAFF PRESENTING THIS ITEM: Mr. Horatio Skeete, Deputy City Manager for
Administrative Services, and Ms. Sherry M. Schurhammer, Management & Budget
Director
This is a request for the City Council to review the recommended General Fund (GF)
operating budget explained in the City Manager's memo included in the budget
workbook containing the City Manager's recommended budget for Fiscal Year (FY)
2008-09.
This is also a request to review the recommended FY 2008-09 GF supplemental
requests for the following departments, work groups, and areas:
o Administrative Services Group
o Appointed and Elected Officials Group
o Community Development Group
o Community Services Group
o Facilities and Financial Management Group
o Internal Services Group
o Public Safety Group and
o Public Works Group
This is also a request to review the recommended FY 2008-09 supplemental requests
for the GO! Transportation Fund.
This item incorporates the Council's strategic goals and key objectives, while ensuring
the city's financial stability by presenting realistic analyses about the provision of city
services and future revenue expectations.
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The recommended operating and capital budgets address the Council's strategic goals
and key objectives with public safety for our residents and visitors and downtown
redevelopment as the highest priorities. Other Council priorities that provide benefit to
the community also are addressed.
The recommended budget is being presented for review and evaluation. It is financially
balanced as required by Arizona state law and is fiscally responsible. It includes the
required contingency amount to provide the Council with flexibility to address
unexpected issues that might arise during the course of FY 2008-09.
The total amount of additional GF ongoinq capacity available for FY 2008-09
supplemental requests, after accounting for changes in the base and transfer budgets,
is approximately $3.4 million, with $11.2M available for one-time items, as shown in the
following table.
F,==.= '01 Ongoing One-Time
General Fund Revenue $184,998,463
General Fund Base Budget $164,151,378
Non Salary Budget Reduction — 4.5%
(excludes Police, Fire, Homeland Security) ($1,131,228)
General Fund Transfers $18,587,390 $4,406,027
Total General Fund Base Budget &
Transfers $181,607,540 $4,406,027
p)} :r d Y _
Funds Available for Supplementals $3,390,923 $11,198,821
GF priority supplemental requests for ongoing funds total $3.5M and the one-time GF
priority supplementals total $3.9M, as shown in the following table.
� _ -_v Ongoing One-Time
Funds Available for GF Supplementals $3,390,923 $11,198,821
Total Compensation $1,808,715 $1,831 ,932
Retirement Increases $1,717,606
Electricity/Utilities/Natural Gas $1,000,000
Vehicle Replacement Contributions ($566,810) $566,810
Technology Replacement Contributions ($507,223) $507,223
Total Priority Supplementals $2,452,288 $3,905,965
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Remaining Funds Available for
General Fund Supplementals $938,635 $7,292,856
As a result of the ongoing and one-time priority GF supplementals, as well as the
change to ongoing GF contributions for the replacement funds, there is $938,635 in
ongoing funds available for departmental GF supplementals and $7.3M available in
one-time funds.
A summary listing and the corresponding detail for the respective GF departmental
supplementals are found in the tab labeled 'GF Supps' of the budget workbook.
The following chart summarizes the recommended allocation of the $938,635 in
ongoing funds and $7.3M available in one-time funds for other GF supplemental
requests. The chart reflects only the GF supplemental requests.
22:41 - ! Ongoing One-Time
Remaining Funds Available for
$938,635 $7,292,856
General Fund Supplementals
Redevelopment Planning & Program $100,000 $120,000
Police Department $880,000
Fire Department $65,273 $225,000
Homeland Security $73,012 $14,000
PAYGO Capital $2,029,793
Administrative Services Group $118,656
Appointed & Elected Officials Group $114,993 $1,016,983
Community Development Group $971 ,621
Community Services Group $257,278 $780,788
Facilities & Financial Management $305,896
Group
Internal Services Group $241,906 $255,104
Public Works Group $74,759 $552,576
Total Departmental GF
$927,221 $7,270,417
Supplementals
Remaining GF Monies Available $11,414 $22,439
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Public Safety Sales Tax Funds' Supplementals.
A summary and the corresponding detail for the respective public safety sales tax funds
are found in the tabs labeled 'Police Sales Tax' and 'Fire Sales Tax' of the budget
workbook. Also included in each section is a one-page fund balance analysis for the next
five years that summarizes the anticipated revenue, expenses, and additional funding
available for supplementals each FY.
The supplemental requests for the public safety sales tax funds reflect the continued
implementation of the Police staffing study and the Fire needs assessment report. As
discussed during the budget workshops in spring 2007, the recommendations of the
Police and Fire Department studies will be implemented over a 3-5 year period. FY 2008-
09 will represent the second year of this phased implementation approach.
For the Police Department, 41 additional FTEs are recommended as part of the
supplemental requests for the police sales tax fund. Some of the additional positions
requested include 16 officers, two motor officers, six detectives, two accident investigators
and a victim's assistance caseworker.
Other supplemental requests for the Police Department include additional funds for officer
equipment and supplies, prisoner maintenance, and vehicle maintenance.
For the Fire Department, 11 additional FTEs are recommended as part of the
supplemental requests for the fire sales tax fund. Some of the additional positions
requested include four firefighters, a fire protection engineer, a community services
education captain, an emergency medical services captain and a health/safety division
chief.
Other supplemental requests for the Fire Department include additional funds for
paramedic training, overtime for two medic units, professional standards training and
development and computer aided dispatch services.
The Budget Workbook containing the City Manager's recommended budget for FY
2008-09 was delivered to the Mayor and Council on Friday, March 14, 2007.
Glendale's budget is an important financial, planning and public communication tool. It
gives residents and businesses a clear and concrete view of the city's direction for
public services, operations and capital facilities and equipment. It also provides the
community with a better understanding of the city's ongoing needs for stable revenue
sources to fund public services, ongoing operations and capital facilities and
equipment.
The budget provides Council, residents and businesses with a means to evaluate the
city's financial stability.
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All budget workshops are open to the public and are posted publicly per state
requirements.
Future budget workshops are scheduled as follows:
o April 1, 1:30 p.m. — 5:00 p.m.
o April 15, 8:30 a.m. — 12 p.m.
o April 22 1:30 p.m. — 5:00 p.m.
If additional time is needed for budget workshop discussion, a tentative budget
workshop is scheduled for April 29, 1:30 p.m. — 5:00 p.m.
Today's workshop is for information only. Decisions on the proposed budget will not be
requested until the final balancing workshop, scheduled for April 22, 2008.
Mr. Beasley introduced the first of the scheduled budget workshops. He said the staff
had prepared a recommended budget that is being presented for Council's review and
evaluation. He said it was financially balanced, is fiscally responsible and represents a
good financial position for the city. He added that the recommended budget is based
on a conservative approach given the economic climate in the United States. He said
the recommended general fund operating budget reflects a 4.5% base budget reduction
for all General Fund (GF) departments with the exception of the Police, Fire, and
Homeland Security Departments. He said no decisions were required until the final
budget workshop in April.
Ms. Schurhammer stated the GF revenue projection for next fiscal year is reasonable
and conservative as it reflects information that experts on the Arizona economy have
provided in recent economic reports. The consensus among the experts is that the
state is expected to experience very modest growth in population, personal income, and
job creation over the next 12 to 18 months. The $185M revenue figure for the GF is
about 2.3% or about $4.1 M more than the revenue expected to be collected by the end
of the this fiscal year. She said the 2.3% growth was very modest given that the
average annual growth rate in GF ongoing revenue has been 8.5% over the last several
years.
The ongoing expenses figure of $181 .6M accounts for the 4.5% reduction in the base
budgets for all GF departments with the exception of the Police, Fire and the Homeland
Security Departments. She said once the on-going expenses were accounted for,
$3.4M in additional GF ongoing capacity is available to address supplemental requests
for next fiscal year. The ongoing priority supplementals total $2.5 million, which means
approximately $939,000 is available for other ongoing supplemental requests.
Mr. Skeete reviewed the following and stated there will be an opportunity to discuss
each item in more detail as they review the rest of the presentation.
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Ongoing Surplus $939K
• Public Safety ($138K)
• Re-Dev Planning ($100K)
• CIP O&M ($257K)
• CAP Office O&M ($118K)
• Add', Council Goals ($315K)
Net Ongoing Surplus $11K
One-Time Surplus $7.3M
• Public Safety ($1.1M)
• Re-Dev Planning ($120K)
• PAYGO ($2.OM)
• Add'I Council Goals4.OM
Net One-Time Surplus 84K
Councilmember Lieberman asked for clarification on the net one-time surplus. Ms.
Schurhammer said the previous figure of $22K had increased to $84K because two
supplementals were retracted -- $50K from the Mayors Office and $12K from the City
Council office.
Mayor Scruggs explained that the $50K supplemental referenced as coming from the
Mayor's Office was related to the Arizona Centennial project which was somehow
placed there because a staff member in her office was to be the lead manager on the
project. She also wanted to clarify the $4.0 million labeled as "Additional Council
Goals." She said the supplementals in that category were not requested by City
Council, but rather were a recommendation by the city manager of how to use the
surplus for each strategic goal and objective adopted by the city. Mr. Skeete stated she
was correct. He added that the $4 million was the city's departments coming together
and providing their best guess as to how to address the Council's goals and objectives.
Mayor Scruggs reiterated that the $4 million was staff's recommendation after hearing
from all the departments about their needs, rather than the Council asking for services
totaling $4 million. Mr. Skeete stated she was correct. He stated that the departments
responded by submitting supplementals to reflect the goals and objectives reflecting
direction of the strategic planning meetings. Mayor Scruggs stated she personally
would like the title changed to reflect the needs of the departments, rather than implying
the Council was asking for the services totaling $4 million.
Ms. Schurhammer said one feature of the recommended priority supplementals is the
shift of approximately $1.1 million in GF ongoing contributions for the vehicle
replacement and technology replacement funds to the one-time side. She said the
funds have sufficient balances to sustain their financial stability over next fiscal year to
accommodate this one-year change in GF contribution levels. She said the plan is to
have the GF return to the 100% contribution level in FY2009-10. She said the
supplemental for electricity, natural gas and other utilities totals $1M in one-time funds.
One-time funds were recommended for FY2008-09 because the full year impact of the
rate increases was not known at this time. She said this item would return as an
ongoing supplemental request for FY2009-10 after more complete information would be
available.
Ms. Schurhammer discussed the supplemental request related to redevelopment
planning & programming. She said Council had identified a need to develop a citywide
redevelopment plan during its fall 2007 retreat. She stated a supplemental was
prepared in response to that issue. She explained initial program startup costs included
1 staff person, $100K in ongoing funds and $120K in one-time funds.
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Councilmember Clark asked about the duties of the staff person to be assigned to the
program. Mr. Beasley said Mr. Bowers had indicated the need for a point person to
commence the development of a redevelopment plan. He said the lead person would
only work on the redevelopment plan. Councilmember Clark said Mr. Bowers had
indicated planning would not begin until 2009. Mr. Beasley said she was correct,
however it might take a few months to hire a lead consultant by September and that
person would start work on the project by the beginning of the year.
Ms. Julie Frisoni, Assistant Deputy City Manager, said the idea was to hire an individual
who would start this fall and be the point person to work with the city completely through
the process. She said it was in the city's best interest to have this person on board
from the start of the process. The goal of this individual would be to focus solely on the
Glendale Corridor area as designated by the Council.
Ms. Schurhammer then introduced several slides that summarized the GF
supplemental requests by administrative group.
Administrative Services:
• Finance: $25K One-Time
Appointed & Elected Officials:
• Attorney: $115K Ongoing, $589K One-Time
• Clerk: $30K One-Time
• Court: $314K One-Time
• Mayor/Council Office: $22K One-Time
Community Development:
• Building Safety: $972K One-Time
Community Services:
• Library: $71 K One-Time
• N'Hood Grants: $600K One-Time
• Parks & Rec: $257K Ongoing, $110K One-Time
Facilities & Financial Mgmt:
• Econ Dev: $156K One-Time
• Visual Imp Program: $150K One-Time
Internal Services:
• CM Office: $124K Ongoing, $2K One-Time
• CAP Office: $118K Ongoing
• Intergovt. Programs: $253K One-Time
Public Safety:
• Fire: $65K Ongoing, $225K One-Time
• Police: $880K One-Time
• EOC: $73K Ongoing, $14K One-Time
Public Works:
• Engineering: $60K Ongoing, $324K One-Time
• Field Ops: $15K Ongoing, $160K One-Time
• Transportation: $69K One-Time
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Ms. Schurhammer said the ongoing request for Parks and Recreation is related to
capital projects that had come on line in the current fiscal year. She said one-time
funds were approved in October 2007 when Council adopted the second budget. The
costs are really ongoing in nature, which explains why this request is being
recommended for ongoing funding.
Mayor Scruggs asked if the figure of $253K for the Intergovernmental Programs
reflected the cost for consultants hired for specific projects and purposes in addition to
city staff. Mr. Beasley stated she was correct.
Mayor Scruggs asked why the operating and maintenance expenses for the Bank of
America building were slated for one-time funds only while the operating expenses for
the Promenade at Palmaire were split between one-time and ongoing funds. Ms.
Schurhammer said an ongoing base budget already exists for the B of A building in the
Engineering Department's operating budget. The supplemental request is for additional
resources. She said the ongoing amount for the Promenade at Palmaire parking facility
was only for the retail space, not the parking garage itself. She said there was some
uncertainty about the ongoing operating costs for the retail space so funding for
FY2008-09 was split between ongoing and one-time until more complete information is
available.
Mayor Scruggs asked about the timing of the last payment for the B of A building. Ms.
Schurhammer said the last debt service payment for the building is scheduled to occur
in FY2008-09.
Councilmember Clark asked a question regarding pay raises for temporary employees.
Ms. Schurhammer said the supplemental addressing this issue would be discussed in
more detail during the total compensation presentation on April 22. She added that the
pay increases applied to temporary workers for Parks and Recreation, the Library, and
the Civic Center.
Councilmember Goulet asked about the request for an assistant city prosecutor
dedicated to code enforcement cases. Mr. Tindall, Glendale's City Attorney said the
Prosecutor's Office had experienced an increase in code enforcement cases and is
working to move those cases forward. He said there was really no expectation that the
caseload would double each year. He noted that the new software for case
management would facilitate the transfer of data from the police department that would
flow internally through the court system, thus eliminating duplication of manual data
entry.
Councilmember Clark asked for clarification on a part-time position for the city clerk.
She asked why this part-time position was so critical it needed to be funded at this time.
Ms. Hanna said the request was made because of an increase in the work load in the
office, as well as a decrease in funding for two part-time personnel. She added she
realizes the budget is very tight, however, she was only asking for one part-time person
to replace two part-time personnel.
Councilmember Clark commented on the request for $880K for prisoner maintenance
at the Maricopa County jail system. Chief Conrad, the Police Chief, said there were
several issues driving this request. He said Glendale experienced two price increases,
one for daily housing costs and one related to booking fees. In addition, the number of
arrests made by Glendale officers had increased as more officers were put on the
street. He said arrests were up 25% over the last two years. Councilmember Clark
asked if everyone arrested went through the city's jail or were sent to the county's jail.
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Chief Conrad stated all arrested individuals were booked through the city's jail;
however, the majority of the time spent in jail is at the county jail. Councilmember Clark
asked about the percentage of arrested individuals who are sent to the county's jail.
Chief Conrad said approximately 45% of arrested individuals in the past year were sent
to the county's jail.
Chief Conrad said a third reason behind the cost increase for prisoner maintenance is
related to changes in state laws, particularly those concerning driving under the
influence (DUI) He said judges were mandated to order longer sentences for people
convicted of DUI. Councilmember Clark commented that none of these reasons were
going to go away anytime soon, so she inquired why this item was recommended for
one-time funds. Chief Conrad stated one-time funds are recommended because the
amount of ongoing funds available was limited.
Mayor Scruggs commented that the public often requested more police presence in the
community with more enforcement of the laws. She said the citizens voted for approval
of the public safety sales tax rate adjustment to help accomplish that objective.
However, the public might be surprised at the additional costs that go along with having
more police presence and enforcement of the laws. Additionally, the public also
requested longer, stricter sentencing for DUI enforcement which drives the operating
budget higher. She said the public also requested the city cut expenses, therefore, the
direction given was always a competing direction by the public as a whole. She said
the prisoner maintenance issue was typically not seen by the public as having the
potential to increase taxes. She noted that understanding these types of scenarios, the
public might have a clearer understanding of why sometimes budgets cannot be cut as
easily as it might appear on the outside. She stated this was a very important issue to
be addressed further.
Vice Mayor Martinez commented that this increase also translates into needing
additional jail space. He asked if the state had or was shipping inmates out to other
states because of the need for jail space. Chief Conrad said he did not know the
answer to that question.
Councilmember Clark asked about the request for $175K to address the costs of bus
stop maintenance. Mr. Mehta, Transportation Director, said City Council recently
approved an increase in the spending authority for the contract for bus stop
maintenance. He said this request is for one-time funds because the amount of
ongoing funds available was limited.
Councilmember Clark asked Mr. Mehta how many bus shelters were currently in the
city. Mr. Mehta stated they had 153 shelters and 461 bus stops throughout the City of
Glendale. He said the 153 shelters had a bench and a trash can. Councilmember
Clark asked how many stops had benches but no shelters. Mr. Mehta stated there
were approximately 44 stops with benches but no shelters, so it would be approximately
197 bus stops throughout the city with benches. Councilmember Clark asked if 225 out
of 461 had waste receptacles. Mr. Mehta stated she was correct. Councilmember
Clark asked how many bus stops had only a post stating it was a bus stop. The answer
was 236 bus stops having nothing but a sign. Councilmember Clark stated it was very
disconcerting for the City of Glendale to offer a bus stop with only a pole in the ground
as a designated bus stop.
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Councilmember Clark asked if there was a plan to deal with the 236 bus stops with only
a sign. Mr. Mehta said the GO Transportation capital project included projects that
would address new and existing bus stops and shelters. Councilmember Clark asked
whether a certain percentage of funds were dedicated to bus stops or bus stop shelter
maintenance when the issue was presented to the voters. She asked how the budget
was set up to deal with this issue. Mr. Mehta stated he did not have the break down;
however, he would have it ready for next week's meeting.
Councilmember Frate asked Mr. Mehta for a complete cost of the amenities needed to
complete a bus shelter. Mr. Mehta said the total cost, with installation, was in the
$10,000 range. He added there was also the additional cost of sidewalk preparation
and utility relocation. Councilmember Frate commented he had been aware the cost
was not as minimal as one would think.
Councilmember Clark asked about the operation and maintenance costs for GO
transportation projects. Mr. Mehta said the operation and maintenance costs for GO
capital projects were in the base budget for the GO operating program.
Mayor Scruggs inquired about the 63rd Avenue Bike and Pedestrian Project as well as
other supplemental requests for GO funds related to new capital projects coming on
line. Mr. Mehta stated those were CIP projects approved by Council last year; however,
the O&M component would not become effective until the project is completed.
Therefore, it was not shown in the budget for next fiscal year. Mayor Scruggs inquired
if the 63rd Avenue Bridge had been delayed beyond the FY2008-09 budget year. Mr.
Mehta stated she was correct. He added the supplemental request for the operation
and maintenance of the bridge would come forward for the year in which the facility is
expected to open.
Vice Mayor Martinez discussed the ADOT project and said his understanding was that
the entire funding for the project had been identified. Mr. Mehta said he was correct.
Vice Mayor Martinez asked if ADOT was going out for contract bids. Mr. Mehta stated
he did not know, however, it being a CIP item, staff can bring it back with additional
information for next week's meeting.
Mayor Scruggs commented on the bus shelter issue. She said there was some money
in the Proposition 400 countywide transportation tax for bus stop improvements. She
explained that at the last Regional Public Transportation Authority (RPTA) board
meeting, one of the members requested the elimination of funding for bus shelters and
instead shifting the money to fixed routes because of concerns about decreased
revenues. She said there was some concern RPTA would not be able to fund all transit
services.
Councilmember Clark asked why the city should encourage people to use alternative
methods of transportation, and then make it uncomfortable for them to use it. She
related a story about her witnessing people sitting on overturned shopping carts at bus
stops. She said if the city wants to encourage ridership, it was essential the city provide
benches and shade.
Mayor Scruggs stated she believes this discussion would also be had by the Valley
Metro Board. She added she agreed with Councilmember Clark's comments.
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Ms. Schurhammer said the April 1 workshop will address the supplemental requests for
the public safety sales tax funds, as well as the entire capital improvement plan. She
said the April 15 workshop will address the capital and operating budgets for the
enterprise funds, which includes the water, sewer, sanitation, and landfill programs.
ADJOURNMENT
The meeting was adjourned at 3:00 p.m.
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