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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 12/11/2018 (7)City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Meeting Minutes Tuesday, December 11, 2018 12:30 P.M. Workshop Meeting Council Chambers City Council Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner CALL TO ORDER Mayor Weiers called the meeting to order at 12:32 p.m. ROLL CALL Present: Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner Also Present: Kevin Phelps, City Manager Tom Duensing, Assistant City Manager Chris Anaradian, Assistant City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk WORKSHOP SESSION 1. FIVE-YEAR FORECAST OF THE MAJOR FUNDS Presented by: Tom Duensing, Assistant City Manager Vicki Rios, Director, Budget and Finance Amy Lindsay, Budget Administrator Ms. Bower read the item by title. Mr. Duensing said a forecast was a high-level estimate of revenues and expenditures going in and out of major funds. Councilmember Clark asked if the General Fund budget supported any of the Enterprise Funds. Mr. Duensing said there was a maintenance of effort transfer which used to be called the Interfund Loan but was reclassified as a transfer. Ms. Rios explained the forecast methodology including revenue growth, anticipated expenditures, contingency and overall standing. Councilmember Clark said because current service levels would be maintained, did that mean there were no plans for new hires. Ms. Rios said for the forecast had not assumed additional employees. Necessary changes would be made through the budget process and staff would then update the forecast. Councilmember Clark said there was a policy to keep a specific balance in the Enterprise Funds and asked, with a decline, would the balances be maintained. Ms. Rios said the fund balance levels had declined for some departments which meant funds needed to be borrowed. The City would have to be sure rates were reasonable to pay back the debt. City Council Meeting Minutes - December 11, 2018 Page 2 of 7 Councilmember Clark said some projects could also be stretched out so that the fund balance was not impacted. Ms. Rios said that was correct. Councilmember Turner asked for an explanation for the increase to the Contingency Fund. Mr. Duensing said the balance had been reduced from $5 million to $2 million during the economic downturn. The funds were usually used for facility improvements. An increase in spending was forecasted so staff was comfortable increasing the Contingency Fund by $3 million but any change was at Council's discretion. Councilmember Clark asked if the increase could be less than $1 million. Mr. Phelps said the forecast was a model developed by staff. Council would determine the final amount during the budget approval process. Mr. Duensing said there was flexibility, but there were facilities that were in significant need of maintenance and the forecast assumed addressing the needs. Mayor Weiers asked if there was more flexibility with the model versus last year. Mr. Duensing said that was correct. Vice Mayor Tolmachoff asked what the $5 million was based on and if there was a best practice for contingency funding. Mr. Duensing said there was general guidance that was government -specific. Glendale was reliant on sales tax and with the fluctuation of incoming funds, it was a best practice to set aside a contingency. It was determined $3 million was what Glendale could afford. Staff would research the issue and provide information to Council. Councilmember Clark said Council should be informed about available funds to align Council priorities and staff priorities before discussions began. Mr. Phelps said the forecast was a conservative approach for the upcoming budget process. Councilmember Clark wanted staff to inform Council if there were funds available before the funds were allocated going into the budget process. Ms. Rios discussed the General Fund for FY18-19 and the forecast methodology for revenue. Compensation increases for represented staff was pursuant to the Memorandum of Understanding (MOU). The increase for non -represented staff was approximately $850,000. The second half of the Western Area Branch Library costs were approximately $410,000. Ms. Rios said the Public Safety Personnel Retirement System (PSPRS) had changed its estimate for rate of return and added $1.8 million per year through FY 21-22. The forecast assumed the Capital Improvement Program (CIP) would increase by $2 million in FY 21-22 and FY 22-23. There was also an increase to the parks and facilities maintenance budget of $500,000 per year. None of the numbers were final and staff would follow Council's direction during the budget process. Councilmember Aldama asked if the maintenance funding increase was an assumption of what was needed. City Council Meeting Minutes - December 11, 2018 Page 3 of 7 Ms. Rios said it was an assumption based on the expectation the department would present a plan for the funds during the budget process. The following costs were forecast: • an increase in health insurance costs of four to six percent • an anticipated increase of $610,000 to Workers' Compensation premiums • funding for year 2 of $410,000 for replacement of Police in -vehicle computers • a required upgrade of Hexagon software for Police at a cost of $275,000 • ongoing maintenance of the Police CAD/RMS software of $365,000, which was not originally budgeted Councilmember Clark asked if there was a philosophy to reduce costs where possible. Ms. Rios said all departments looked for efficiencies and reductions. Ms. Rios presented the forecast for the Enterprise Funds. Councilmember Turner asked if the maintenance of effort was in the chart. Ms. Rios said it was included and the amounts were: • FY19-20 - $433,000 • FY20-21 - $437,000 • FY21-22 - $445,000 • FY22-23 - $825,000 • FY23-24 - $840,000 Councilmember Turner asked for the maintenance of effort figure for the landfill. Mr. Duensing said when the loan originated, the landfill did not participate so there was no repayment to the landfill fund. Ms. Lindsay presented the financial forecast for the four special revenue funds: Highway User Revenue Fund (HURF); Transportation Sales Tax; Public Safety Sales Tax (PSST) - Police; and PSST - Fire. The funds were legally restricted, and the HURF and Transportation funds were capital intensive. Councilmember Clark asked if any of the HURF funds could be used on road construction projects that had been delayed. Mr. Duensing said the funds could be used and the 10 -year Transportation Plan, which included the HURF and transportation sales taxes, would be reviewed. Councilmember Clark requested that the completion of "scallop" streets be added to the Transportation Plan. Councilmember Malnar asked if the additional State funding for HURF was included in the forecast figures. Ms. Rios said the additional amount was not known at the time of the forecast. Vice Mayor Tolmachoff asked how the new Department of Public Safety (DPS) vehicle fee would affect HURF funds. Brent Stoddard, Public Affairs Director, explained the $32 vehicle registration fee was meant to fully fund DPS. Because a final decision had not been made on how to permanently fund DPS, it was not included in the forecast. City Council Meeting Minutes - December 11, 2018 Page 4 of 7 Councilmember Clark asked if it was correct that the Transportation fund balance would be consumed as part of the 10 -year plan. Mr. Duensing said that was correct if Council authorized it. Councilmember Clark asked if some of the fund balance of $2.7 million for FY19-20, could be used to fund the computer upgrade and CAD/RMS software maintenance. Ms. Rios said it was an option. The depletion of the planned fund balance would happen sooner and recommended the fund balance be used on one-time items, such as the upgrade. Councilmember Clark suggested using the fund balance as it was not required so that General Fund money could be used for other needed items. 2. REVIEW AND DISCUSSION OF SIMPLICITY BUDGET REPORTS Presented by: Tom Duensing, Assistant City Manager Vicki Rios, Director, Budget and Finance Amy Lindsay, Budget Administrator Ms. Bower read the item by title. Ms. Rios provided sample report formats from the City's new financial system, Simplicity, which was implemented on July 1, 2018. Staff was seeking Council feedback and input regarding the report formats, which would be used in the upcoming FY19-20 budget process. Councilmember Aldama asked if there was a process to update the project number. Ms. Rios said budget numbers could change as Council approved a new CIP, but the project number would stay the same for tracking purposes. Councilmember Clark asked if internal charges were broken down a different way. Ms. Rios said the reports could be formatted to show specific charge information. The sample showed a summarized report. Mayor Weiers said the report formats provided transparency so the public could gather information easily. He was pleased with the reports. Councilmember Malnar preferred less color rather than more color. Vice Mayor Tolmachoff asked if the system made the process of assembling the budget books easier or faster. Ms. Lindsay said it could do both, as the information came directly from the system rather than manual entry. It was the first year with the system and staff would do its best to get the information out timely. Ms. Rios anticipated that information would be available much quicker and more efficiently. CITY MANAGER'S REPORT No report CITY ATTORNEY'S REPORT City Council Meeting Minutes - December 11, 2018 Page 5 of 7 No report COUNCIL ITEMS OF SPECIAL INTEREST Councilmember Aldama referenced Councilmember Clark's previous request regarding the City of Scottsdale's bike and scooter ordinance. He asked staff to look at a 90 -day pilot program to study the motorized scooters, similar to what had been done in the City of Peoria. Councilmember Clark supported Councilmember Aldama's request and felt it could be incorporated with her original request. Councilmember Clark asked the City Manager to review the best practices for establishing and managing at -will employees which would include bench marking with other cities. Councilmember Clark requested a review of the shared responsibility for the management of the Glendale Regional Public Safety Training Center (GRPSTC) so that all departments could utilize the building. Councilmember Turner requested a continued effort to sell excess City real estate and that there be a discussion at a future workshop regarding which parcels could be sold and how it could be done. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION A motion was made by Councilmember Bart Turner, seconded by Vice Mayor Lauren Tolmachoff to hold an executive session. AYE: Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh Councilmember Ray Malnar Councilmember Bart Turner Passed EXECUTIVE SESSION Council entered into executive session at 2:11 p.m. for discussion/consultation with the City Attorney and City Manager to receive an update, to consider its position, and to provide instruction/direction to the City Attorney and City Manager regarding Glendale's position in connection with a contract relating to property in the area of 91st Avenue and Glendale Avenue pursuant to A.R.S. §§ 38-431.03 (A)(3)(4). A motion was made by Councilmember Joyce Clark, seconded by Councilmember Ray Malnar to adjourn the executive session. AYE: Mayor Jerry Weiers Vice Mayor Lauren Tolmachoff Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ian Hugh City Council Meeting Minutes - December 11, 2018 Page 6 of 7 Councilmember Ray Malnar Councilmember Bart Turner Passed Mayor Weiers adjourned the executive session at 3:00 p.m. ADJOURNMENT Mayor Weiers adjourned the meeting at 3:00 P.M. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Glendale City Council of Glendale, Arizona, held on the 11th day of December, 2018. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 2nd day of January, 2018. JL oil/K. Bower, MMC, City Clerk City Council Meeting Minutes - December 11, 2018 Page 7 of 7