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CITY COUNCIL OF THE CITY OF NEW CASTLEBUDGET WORKSHOPJUNE 18, 20085 P.M.
Present: Council President
William Blest
Others Present: John F. Klingmeyer,
Mayor
A motion to begin the Budget Workshop was made by Councilperson Churchill and seconded by Councilperson Reese. The meeting began at 5:10 p.m. Roll call was taken.
Wharf Dance – Lula Etherton presented plans for a Wharf Dance on 9/6/08 with a rain date of the following Saturday (9/13/08). Hours will be 7 p.m. to 11 p.m. Proceeds from the Wharf Dance will benefit expansion of the library. She requested that the City sponsor the event to enable it to be covered with insurance coverage. A limit of 250 tickets will be sold. The theme for the event will be “Rhythm on the River.” Food and alcoholic beverages (beer, wine, mixed drinks) will be provided and they plan to use a ticket system and keep mixed drinks to a minimum. They will have people carding at the entrances and are open to not allowing anyone under 21 years of age at the event. Police and emergency personnel are being arranged as well as port-a-potties. Concern was expressed about people without tickets entering the dance. They are going to use either a stamp or wristband to help identify paid participants. The issue of parking was raised but they feel that most participants will be locals and will walk to the event. They have a Clean-Up Committee to handle clean-up matters. They will use monies from the last Wharf Dance that was being saved for park benches that will be used as seed money and reimburse when tickets are sold. They also plan on speaking to the Trustees about a donation. They will have pre-sale of tickets and no advertising will be necessary unless there are tickets left over. A motion was made by Councilperson Churchill for the City to sponsor the “Rhythm on the River” Wharf Dance. Councilperson Reese seconded the motion which was approved by unanimous vote.
Workshop – Ms. Delaney reviewed budget materials distributed to the group. The Mayor’s Office budget requests are being reviewed this evening.
Mayor Klingmeyer noted two items that are not in his budget, but he did want to present to Council for consideration.
The Mayor enlisted Mr. Sarnecki’s assistance in projecting office expenses (phone, office supplies, etc.) for the coming year. An estimated increase of 3% was quoted.
Professional Development – The Mayor feels the Planning Commission should be included in getting professional documents and publications. (They have submitted their budget request.) He would like to budget for this. Budgeted amount is $1,700; no increase is necessary.
Books and Reference Materials – The Mayor would like to secure more publications that will be available to all City employees.
Following the Mayor’s presentation other budget items were reviewed as follows:
Separation Day – This event is a State/City function but mostly financed by the State; the Committee is looking for more outside funding. (Discussion about City services provided during Separation Day and the City’s contribution followed.) Ms. Delaney noted for the record that Mayor Klingmeyer and Mikki Diemidio do a wonderful job with Separation Day.
Community Development – We are a part of this program with the County and the paperwork was late in coming to our office. The Mayor has signed the document
subject to ratification from this Council. We have received approximately $1.4 million over the last four years. The Senior Center, Buttonwood School and individual homeowners have benefited from this program.
Civil Defense -- $500 is budgeted and no increase is necessary. Some of Mr. Lloyd’s items are being handled through the Anti-Terrorist Program.
Revenue – Assessments and delinquent taxes were estimated. More accurate figures will be available next Tuesday (6/24/08). Discussion about property tax transfers and delinquent taxes followed. Building permits are still subject to Jeff Bergstrom. With the new Building Code Tech being added the compliance and collection of permits and business licenses should increase. (Discussion about the the viability of the new building code officer took place.)
Municipal Service Commission (MSC)– Appropriated $400,000 for FY 2207-08. Councilperson Reese noted that he is aware MSC has approved an increase in the City’s appropriation of $50,000, for a total revenue coming to the City in FY 08/09 of $450,000.
Ground Lease – Appropriation of $100,000 is standard.
Trustees Appropriations – They have approved $6,000 for a surveillance camera, $27,000-police vehicle; $45,000-garbage truck lease; employees’ salary benefits & salaries; $20,000-Tree Commission; Trustee Park and Fuel is a pass-through (represents Erv Thatcher & Robert Ford’s salary/benefits/expenses); $85,000-Goodwill for their expansion project. They provided a memo for a three-year appropriation to Goodwill for $100,000 per year. Ms. Delaney has questioned whether the Trustees want the City to issue the check then be reimbursed.
Western Gateway – Ms. Thomas reported that we do have $134,000 for the project. We have the revenue in this budget year, but will not have expenses until the next budget year. She explained how the monies were recorded on the information projected to Council. Mr. Reese inquired about the feasibility of encumbering funds. Mr. Sarnecki expressed concern that the present City accounting package cannot accommodate encumbering, but perhaps Council could vote on a more sophisticated accounting system and have it in place for next year.
Seasonal Patrol – Appropriated $10,000.
Franchise – Ms. Thomas reported that the figure shown is level for what is expected from Comcast and at some point we will start collecting from Verizon, but she does not expect to see a surge in franchise fees because we will be seeing people switching from Comcast.
On another revenue matter, the City will realize an additional $950/month from MetroPCS and Cricket for new ground leases on City property near the MSC Plant adjacent to the AT&T tower. When these two new entities add on to the AT&T tower, the City will also receive a portion of the lease payment to AT&T. That figure is unknown at this time.
Insurance Reimbursement – No figure is needed.
Miscellaneous Income/General Fund – Ms. Delaney detailed these monies with Council.
Special Trash Collection -- $500 will be appropriated at this time. (Discussion followed.)
Zoning – The three-year average is $7,900. It was decided to budget $7,000.
Building Appeals Lien Reimbursement – Appropriated $5,000; we may have the expense one year and realize the revenue another year. There is no net increase in the budget but it covers us either way if we do have activity.
Summer Recreation -- $3,500 has been budgeted. Ms. Delaney detailed the costs of various trips involved with this program. This program is for City children and is subsidized by City taxes. Transportation costs have increased significantly over last year. Councilperson Petty feels the amount should be increased to help offset expenses. Discussion took place about lowering fees or subsidizing in order to help children who do not have the financial means to participate. It was decided to revisit Recreation once the Revenue portion of the budget is reviewed.
Accident Reports – Unchanged.
Municipal Street Aid – Ms. Thomas informed we are hoping to get $120,000 depending on what they do with the State budget.
Community Transportation Funds – Ms. Thomas requested $75,000 through Representative Mulrooney. We received current contributions through Senator Connor and will need to request again next year. The amount each State Representative receives will depend on the State budget.
State Separation Day Grant -- $30,000 has already been approved.
Tree Commission Other Fund -- $100 is fine.
Delaware Solid Waste Reimbursement – We pay $62/ton for tipping fees at the landfill. In August we receive a rebate check from DSWA.
Local Law Enforcement Technology – The same numbers are used on the Revenue side as on the Expense side so if something happens to salary grants we are covered.
Homeland Security Grant/SALLE/DRUG/Police and Highway Safety Grants are all the same. Accreditation is a new grant we are expecting, but details have not been finalized yet.
Job Reimbursement – Will likely be the same amount.
Greenway & Trail Maintenance – It was unclear what this represents; therefore, no funds will be budgeted.
DEMA Security Grant – Ms. Delaney informed we had applied and been approved for $42,000 for security in the Administration and Public Works Buildings. These monies must be used by 8/31/08. They are currently meeting with vendors. Discussion about what the various vendors offer followed.
Planning Grant -- $10,000 represents monies awarded from Livable Delaware and will be used to offset URS planning expenses.
Sponsored Park Donations -- $15,000 was appropriated. The same amount is noted under the Expense side. We received $5,000 from Day Star, $5,000 is pending from Premcor, and they both show $5,000 each for a 2008 appropriation.
Bellanca Airdome Project – No monies have been appropriated. We have $40,000 left from their grant.
Unreserved Fund Balance -- $250,000 has been appropriated. We already have the $134,000 revenue this year to be used for the Western Gateway, but it will not be spent this year. It was suggested that two lines appear; one showing $134,000 as revenue collected in 2008 to be expended in 2009 (Western Gateway) and the other reflecting the true unreserved fund balance.
Review of the Revenue portion of the budget concluded.
Summer Recreation was revisited. Expenses involved were reviewed. Transportation costs were increased to $3,355. Last year’s transportation costs totaled $2,800.
Building Maintenance – Included preventative maintenance contracts for three buildings in this budget. Ms. Delaney has inquired where the dandelion/weed contract is being posted or is already included. Ms. Thomas said the Public Services Building Repairs budget was $14,000 and she has received a note from Mr. Freebery requesting an increase to $35,000. No breakdown was provided; Ms. Thomas will request a breakdown, per Council’s request.
Audit – Ms. Delaney reported they are finishing the final draft of last year’s audit and would like to start this year’s audit in June. Discussion about the fee for the audit followed. Mr. Sarnecki provided an estimated range of $11,000 to $13,000. Council decided to speak to the City Solicitor about guidelines for distribution of the audit. This subject will be added to the agenda for the next budget workshop.
In closing, Ms. Delaney reminded Council that this budget (24 pgs.) is a rough draft only. AFSCME raises of 3.5 percent are included as are promotions and step increases. She used the police department’s base salary and if their contract is not signed by June 30th we will need to use the contingency that is determined. She cautioned about projecting figures for raises. This topic will be revisited during the next budget workshop session.
The tax rate will be known at the next session which will enable Council to determine what changes or cuts might be necessary. Council was asked to review the draft budget and be prepared to discuss it further at the next workshop session.
Councilperson Churchill made a motion to adjourn the budget workshop; Councilperson Petty seconded the motion. The motion was unanimously passed. The meeting was adjourned at 7:05 p.m.
A motion was made, seconded and approved to go into Executive Session.
Respectfully submitted,
Debbie Turner, |
