HomeMy WebLinkAbout1998.0610.TCSM.Minutes TOWN OF FOUNTAIN HILLS
MINUTES OF THE SPECIAL BUDGET MEETING OF THE
FOUNTAIN HILLS TOWN COUNCIL
JUNE 10, 1998
A public meeting of the Fountain Hills Town Council was convened and called to order by Mayor
Morgan at 6:30 P.M., Wednesday, June 10, 1998, in the Fountain Hills Town Hall Council Chambers,
located at 16836 E. Palisades Blvd.,Building B, Fountain Hills,Arizona.
ROLL CALL—Mayor Morgan led the Pledge to the flag and Councilman Poma gave the invocation.
Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon
Morgan,Vice Mayor Al Poma and Councilmembers John Wyman, Sharon Hutcheson, Sid Apps (6:33),
Marianne Wiggishoff, and Penfield Mower. Also present were Town Manager Paul Nordin, Town
Attorney Bill Farrell, Town Engineer Randy Harrel, Marshal Steve Gendler, and Town Clerk Cassie
Hansen.
AGENDA ITEM #2 - REVIEW AND CONSIDERATION OF THE PROPOSED BUDGET FOR
THE TOWN OF FOUNTAIN HILLS FOR THE 98/99 FISCAL YEAR. ALL ASPECTS OF
REVENUES AND EXPENDITURES WILL BE DISCUSSED AND CONSIDERED.
Town Manager Paul Nordin reviewed the timetable for the budget process leading up to the final adoption
of the '98-99 budget. He displayed the state-required expenditure limitation analysis, which he stated
conformed to the existing and proposed funds for the next fiscal year.
Budget Summary Sheets
Mr. Nordin reviewed the General Fund Revenue and Expenditure summary sheets comparing the different
departments of the Town's government. Councilman Wyman pointed out that 34% of the revenues
collected were from building permits. Councilman Apps asked if sales tax revenues would offset a decrease
in building fees. Mr. Nordin said the sales tax revenues would increase from retail sales as the population
increases and said he expected state shared revenues to increase as well. Councilman Wyman expressed
concern over the 25% increase in wages and related costs as compared to a 6.4% increase in revenues.
Personnel and Related Issues
Mr. Nordin stated the merit money request of 5% of the total budgeted salaries for the fiscal year was the
same amount as had been requested in the last 5-6 years. Councilman Mower MOVED to approve for
discussion purposes. Vice Mayor Poma SECONDED the motion. Councilman Apps asked how many
SEAL awards and superior performance awards were given out over the last year. Mr. Nordin stated he
would provide this information. The motion CARRIED unanimously.
Information Technology
All expenditures related to computer technology for all departments was included in this section.
Councilman Wyman MOVED to approve for discussion purposes. Vice Mayor Poma SECONDED the
motion. Mr. Nordin stated the network related expenses provided for significantly more capacity to the
present network. A major expenditure for enhanced lighting in the Council Chambers for better video
production,an automated light dimming feature and an electronic voting system were proposed.Vice Mayor
Poma said the$33,000 expenditure for lighting improvements should not be included until negotiations for a
new rental contract were completed. Peter Putterman estimated that $12,000 was the figure for lighting
enhancements and could be used in any future facility the Town occupied. The video lighting was $7500.
Councilman Wyman questioned the need for an electronic voting system. Councilman Wiggishoff agreed
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‘iier and MOVED to amend the Information Technology budget by deleting $14,000 for an electronic voting
system from this budget. Councilman Wyman SECONDED the amendment, which CARRIED
unanimously.
Mr. Putterman reviewed the remainder of the requests for Information Technology. Councilman Wyman
said a 7% increase in expenditures was reasonable and he would support it. Councilwoman Wiggishoff
asked if four notebook computers ($2500 each) for the Building Department were necessary and said she
was concerned about the security of the computers. Mr. Putterman stated notebook computers were needed
to allow inspectors to keep more accurate records of inspections for tracking purposes. Councilman Apps
MOVED to amend the motion to approve $7500 for notebook computers. Councilwoman Wiggishoff
SECONDED the amendment, which CARRIED with a 6-1 vote. Councilman Mower cast the nay vote.
Councilman Apps MOVED to amend the Network Related Expenses from$74,700 to $60,000. There was
no second to the motion—the motion DIED. Councilman Apps asked about the item for $8,000 entitled
System Support. Mr. Putterman said software for each department to design and create resource pages for
the website was included under System Support.
Vice Mayor Poma asked about the $1500 expenditure for a telephone system at the Street Yard. Mr.
Putterman explained that the expenditure would enable phone connections with an intercom system.
Councilman Apps asked about the costs associated with videotaping Council meetings. Mr. Putterman said
the current vendor charges $295 per meeting and was providing unsatisfactory service. He planned to bid
this service out and estimated a$500 per meeting expense.
Councilman Mower called for the question. The motion to approve the Information Technology budget as
amended CARRIED with a 5-2 vote. Vice Mayor Poma and Councilman Apps cast the nay votes.
Councilman Apps expressed concern that he had not been able to ask questions regarding the remainder of
this budget. Councilwoman Wiggishoff MOVED to reconsider the Information Technology budget as
amended. Vice Mayor Poma SECONDED the motion, which CARRIED with a 6-1 vote. Councilman
Wyman cast the nay vote. The Council resumed their questions with the Information Technology budget.
There were no additional questions concerning the Administration, Building Safety, and Community
Development departments.
Councilman Apps asked about the Traffic Modeling(EEME-2) request($6,000) in the Engineering section.
Town Engineer Randy Harrel said this equipment would assist in determining future traffic needs of the
Town.
Vice Mayor Poma MOVED to approve the Information Technology budget as amended. Councilman
Mower SECONDED the motion,which CARRIED unanimously.
Community Center
Mr. Nordin stated expenditures were requested for the existing Community Center in the amount of
$60,800. Councilwoman Wiggishoff MOVED to approve for discussion. Councilman Mower
SECONDED the motion, which CARRIED unanimously. There were no questions. Councilman Wyman
MOVED to approve the Community Center budget. Councilman Apps SECONDED the motion, which
CARRIED unanimously.
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Community Center Construction
Mr. Nordin stated the Municipal Property Corporation budget (Capital Outlay-Building Construction) was
included in the Community Center Construction budget. Councilman Mower MOVED to approve for
discussion. Councilman Wyman SECONDED the motion.
Councilwoman Wiggishoff said she preferred a $1.5 million to $2 million down payment included in the
budget for the Community Center project rather than the $1 million figure. She suggested that by doing so
the Council reduce the interest costs significantly. She said she thought that at least$500,000 in budget cuts
could go toward the Community Center project this year. Councilwoman Hutcheson suggested rather than
creating a specific department, a team approach be used to oversee this project along with the Community
Center Advisory Commission's chairperson until a permanent department could be developed. Vice Mayor
Poma said he preferred to submit this project to the voters for approval. Mr. Nordin stated that if the
Council desired to choose either the cash payment option or general obligation bonds option, a public vote
would be required. If the municipal property corporation was selected as the method for financing the
project,no voter input would be allowed. Councilwoman Wiggishoff outlined the history of the project and
stated that the public had significantly participated in the project making their opinions known for some time
and a public vote wasn't necessary. She supported the municipal property corporation option to finance a
portion of the building with no additional property tax increase or sales tax increase. Mr. Nordin reviewed
the pros and cons of the financing methods for the Council. He asked the Council for direction to enable
him to begin the finalization of the document process.
Councilman Mower rescinded his motion, and Councilwoman Wyman rescinded his second. Councilman
Mower then MOVED to approve the municipal property corporation. Councilwoman Wiggishoff
SECONDED the motion. Councilman Apps stated he wanted the citizens to have a better opportunity for
input into this project. The motion CARRIED with a 5-2 roll call vote. Vice Mayor Poma and
Councilman Apps cast the nay votes.
Councilwoman Wiggishoff asked for clarification as to how to proceed with increasing the down payment
under the capital outlay line item. Mr. Nordin suggested an amendment be made that any reductions to the
budget be transferred to the line item for the cash down payment.
Councilwoman Wiggishoff MOVED to amend the motion to incorporate any monetary reductions that
would be made in the proposed budget into the line item that would provide for the cash down payment for
the Community Center rather than the capital reserves. Councilman Mower SECONDED the amendment,
which CARRIED with a 5-2 vote. Councilman Apps and Vice Mayor Poma cast the nay votes.
Councilman Mower MOVED to approve the Community Center Construction budget as amended.
Councilman Apps SECONDED the motion, which CARRIED with a 5-2 roll call vote. Councilman Apps
and Vice Mayor Poma cast the nay votes.
Mayor and Council
Mr. Nordin reviewed the line items in the Mayor and Council budget. Town Clerk Cassie Hansen pointed
out that the Capital Outlay-Improvements line item ($5,000) was for the dimmer lighting capabilities
discussed earlier. Councilwoman Wiggishoff MOVED to approve for discussion. Councilman Apps
SECONDED the motion, which CARRIED unanimously.
Magistrate Court
Mr.Nordin stated that other than the recently approved salary increase for the Judge, the Court's budget was
very similar to last year's requests. He added that a request for a new copy machine for the Court in the
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amount of$6000.was included under the Capital Outlay line item. Councilwoman Wiggishoff MOVED to
approve for discussion. Councilman Mower SECONDED the motion, which CARRIED unanimously.
Administration
Mr. Nordin pointed out three areas of increases for the Council to consider. He stated one of them was in
the personnel section where a half-time receptionist and two part-time janitors were requested. The second
item was the difference between the Special Programs and the Community Benefit Programs. He stated that
last year the Council had discussed the possibility of using the LTAF method for distribution of monies for
the Community Benefit Programs. He said the Council could discuss each individual request for Special
programs and then use the methods used by the LTAF Committee to apply a total amount to all those
requesting funds under the Community Benefit Programs. He said the third item to consider was under the
capital improvements under Capital Expenditures which included recommendations for moving offices into
Building "A" including renovation of existing offices in Building "C". Additional improvements to
Building "B" for an emergency control center and a control access system for Building "C" were also
included in the Capital Expenditure requests.
Councilman Mower MOVED to approve for discussion. Councilman Apps SECONDED the motion.
Community Benefit Programs-Councilman Mower MOVED to reduce the amount for Community Benefit
Programs from$152,555 to $80,000 and proceed with the LTAF committee method in determination of the
distribution of those funds. Councilwoman Wiggishoff SECONDED the motion, which FAILED with a 4-
3 roll call vote. Councilwoman Hutcheson, Wiggishoff and Mower cast the aye votes. Councilman Apps
MOVED to set the amount for Community Benefits Programs at $152,555 as budgeted. There was no
second to the motion—the motion DIED. Vice Mayor Poma MOVED to appropriate $115,000 for the
Community Benefits Programs. Councilman Apps SECONDED the motion, which CARRIED with a 4-3
roll call vote. Councilman Mower,Councilwomen Hutcheson and Wiggishoff cast the nay votes.
Special Programs—Chamber of Commerce — Councilman Mower asked about the Chamber's out of state
advertising expenses. Michael Bush said the results of advertising, especially out of state advertising, were
not always readily determinable. Councilwoman Wiggishoff suggested the Council consider funding the
Thanksgiving Parade and Holiday Events requests for the Chamber and increasing the budget for the
Mayor's Council for Economic Development rather than to subsidize the Chamber's advertising expenses.
She suggested postponing the production of a town video until such time as the parks were nearer
completion and the Community Center started. Councilwoman Wiggishoff then MOVED to reduce the
budget allotment for the Chamber of Commerce to $5,300. Councilman Mower SECONDED the motion,
which CARRIED with a 5-2 roll call vote. Councilman Apps and Vice Mayor Poma cast the nay votes.
Special Programs-Mayor's Council for Business Growth—Councilwoman Wiggishoff MOVED to increase
the budget from$25,000 to$30,000. Councilman Mower SECONDED the motion,which FAILED with a
5-2 roll call vote. Councilman Mower and Councilwoman Wiggishoff cast the aye votes.
Special Programs-McDowell Mountain Preservation — Councilman Wyman MOVED to open for
discussion. Councilman Apps SECONDED the motion. Councilman Wyman questioned the expenditure
requests for the budget. Mr. Nordin stated he had not made any revisions to the budget requests for the
McDowell Mountain Preservation Commission because it was a Council-appointed subcommittee.
Councilwoman Wiggishoff asked about the proposed video productions but no one was present to provide
information about them. Councilman Wyman MOVED to table discussion until the next budget meeting.
Councilman Apps SECONDED the motion,which CARRIED unanimously.
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Capital Expenditures-Furniture/Equipment — Councilwoman Wiggishoff questioned the need for two copy
machines and suggested approval be given only to replace the existing copy machine. Town Clerk Cassie
Hansen explained that if the expansion into Building"A" was approved, the Parks &Recreation Department
would need their own copy machine due to their high usage of the existing machine. After discussion,
Councilwoman Wiggishoff MOVED to postpone the $64,000 expenditure item for an access control,
security card system until the next fiscal year. Vice Mayor Poma SECONDED the motion. In response to
questions from Councilwoman Hutcheson, Peter Putterman explained how the access control system would
function. The motion FAILED with a 5-2 vote. Councilwoman Wiggishoff and Vice Mayor Poma cast the
aye votes.
Capital Outlay—Improvements-Town Hall—Councilwoman Wiggishoff suggested no action be taken with
moving the Parks & Recreation Department to Building "A" until the year 2000. Councilwoman
Wiggishoff MOVED to delay the request to acquire 1800 square feet of space in Building"A"and consider
space expansions in the next fiscal year. Councilwoman Hutcheson SECONDED the motion.
Councilwoman Wiggishoff asked how much money would be saved by not renting Building "A". Clerk
Hansen answered that approximately $14,000 would be the rental fee for that area. Councilman Apps
suggested the Town receive consideration for their improvements in the form of free rent. Ms. Hansen said
MCO had agreed to contribute towards expenses of the exterior doors and the air conditioning duct
work/repair expenses. She predicted that if the landlord was asked to subsidize tenant improvements that
the rental fee might be affected. Councilman Wyman questioned the placement of the 31/2 additional staff
members for Parks & Recreation if the plan was not approved. Vice Mayor Poma said he thought the
Council should wait until negotiations began for a future lease, purchase or construction of a new town hall
was established. Vice Mayor Poma suggested the costs be cut. Councilman Apps suggested a figure of half
of the anticipated costs would be acceptable. The motion CARRIED with a 4-3 roll call vote.
Councilmen Apps and Mower and Mayor Morgan cast the nay votes.
Councilwoman Wiggishoff asked for clarification regarding the second copier expense. Ms. Hansen said
that $51,000 was proposed for a new copy machine and was now not needed due to the denial of the
improvements for Building "A". Councilwoman Wiggishoff asked for clarification of a health care
consultant in the amount of$5000. Mr. Nordin explained he preferred to hire a consultant to assist in health
care benefits rather than using a broker as had been done in the past. Councilman Apps supported Mr.
Nordin's request.
Ms. Hansen informed the Council that the second fax machine, planned for Building "A", was requested in
the amount of$2500 and could be added to the amounts for credit to the Community Center.
Vice Mayor Poma MOVED to approve the Administration budget as amended. Councilman Mower
SECONDED the motion,which CARRIED unanimously with a roll call vote.
Building Safety
Mr. Nordin stated two additional items were noteworthy in this budget. An adjustment to the Wages line
item to reflect the increased amount of overtime was included in the new request. Also the request to
increase a half-time employee to a full time status was included. Councilwoman Wiggishoff MOVED to
approve for discussion. Councilman Apps SECONDED the motion. Vice Mayor Poma objected to the
amount of the outside contract services appropriated in the budget. Mr. Nordin stated outside services were
needed especially for commercial developments. The motion CARRIED unanimously.
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Community Development
Mr. Nordin stated there were no requests for additional employees and that he supported the budget for this
department. Councilman Mower MOVED to approve for discussion. Councilman Wyman SECONDED
the motion, which CARRIED unanimously.
AGENDA ITEM#3- CALL TO THE PUBLIC.
AGENDA ITEM#4-ADJOURNMENT.
Vice Mayor Poma MOVED to adjourn the meeting. Councilman Apps SECONDED the motion,
which CARRIED unanimously. Mayor Morgan adjourned the meeting at 10:25 p.m.
TOWN OF 0 NTAIN HILLS
By: .Q1e7
Sharon Morgan,Mayor
A 1'l EST: 4j1A.4 )1^AA---1
Cassie B. Hansen,Town Clerk
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PREPARED BY: , ' � � ��
Linda D.Lemmen,Executive Assistant
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special
Budget Meeting held by the Town Council of Fountain Hills on the 10th day of June, 1998. I
further certify that the meeting was duly called and that a quorum was present.
DATED this 2nd day of July, 1998.
Cassie B. Hansen,Town Clerk
Town Council Budget Meeting 6/10/98
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