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HomeMy WebLinkAbout2001.0626.TCSBM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL BUDGET MEETING klikerH FOUNTAIN HILLS TOWN COUNCIL June 26,2001 Mayor Morgan called the special session of the Town Council to order at 6:30 p.m. Following the pledge to the flag and a moment of silence roll call was taken. ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Sharon Morgan and Councilmembers, Sharon Hutcheson, John McNeill, and Susan Ralphe. Vice Mayor Wyman and Councilmembers Kavanagh and Fraverd were absent. Also present were Town Manager Paul Nordin, Director of Administration/Town Clerk Cassie B. Hansen, Town Engineer/Director of Public Works Randy Harrel, Assistant Director of Public Works Tom Ward, Assistant Director of Parks and Recreation Bryan Hughes, Community Development Director Jeff Valder,and Town Attorney Bill Farrell. AGENDA ITEM#1. REVIEW AND CONSIDERATION OF THE PROPOSED BUDGET FOR THE TOWN OF FOUNTAIN HILLS FOR THE 2001-2002 FISCAL YEAR. ALL ASPECTS OF REVENUES AND EXPENDITURES WILL BE DISCUSSED AND CONSIDERED. AS PART OF THE BUDGET CONSIDERATION, THE BENEFITS COMMITTEE WILL PRESENT CHANGES TO THE TOWN'S BENEFIT PACKAGE INCLUDING DEFINITION OF RETIREMENT, PAYOUT OF SICK LEAVE, PERSONAL DAYS,AND ADDITIONS TO DEFINITION OF IMMEDIATE FAMILY MEMBERS. Mr. Nordin gave an overview of the fiscal picture for the next year. He pointed out that Fountain Hills had a simple budget compared to other municipalities. He described the budget as having a General Fund; Street Fund, as required by law;a Grant Fund; and a Bond Fund. He reviewed the major new items found in this budget: Fountain Park Construction $1,000,000 McDowell Mountain Preservation Bond Issue(MPC)payment $ 725,000 Senior Center Construction $ 415,000 Community Center(includes bond repayment-$392,000) $ 744,000 Community Center Construction $ 670,000 BNY/Merrill Lynch Litigation $ 230,000 TOTAL $3,784,000 Mr. Nordin described the major new revenues proposed for the 2001-2001 budget. State Shared Revenue Increases State Sales Tax $ 330,000 State Income Tax 430,000 VLT 90,000 HURF 210.000 $1,060,000 Sales Tax Increase(.04%total) $1,125,000 Total $2,185,000 Development Fees Law Enforcement $ 18,500 Streets 250,005 Parks 514,150 Open Space 572,390 General Government 272,030 $1,627,135 Mr. Nordin noted that the State Shared Revenue income, combined with the anticipated sales tax revenue of approximately $2.1 million would fall short when compared to the expenditures of$3.7 million. He explained that he was not recommending that the development fees be included for anything except contingency, as he wanted this for a cushion. He recommended that this year the Town not put any of this money into any specific projects right now. He wanted to wait to see how the receipts came in and then the Council could deal with those funds during the budget year. Mr. Nordin pointed out that because he had not budgeted to use the development fee revenue funds (approximately $1.6 million) for any expenditure other than contingency and when added to the total revenue of approximately $2.1 million, this is what he meant by this year having a tight budget. With the total proposed expenditure at approximately $3.7 million the combination of revenues would make it very close. To pay for the major new items he had identified additional revenue to compensate at least part of the costs. He would have to limit the increases within the balance of the budget in conjunction with using some of the Town's reserves. Mr. Nordin displayed and reviewed the General Fund Summary sheet. He said he had under estimated the sales tax and building permit fees as a hedge against the day when the Town would not receive the funds. Under expenditures he focused attention on the line item"undesignated" in the amount of$1.7 million. He proposed this would be the money left over in this proposed budget. He pointed out that was also cushion against revenues not coming in as anticipated. Mr. Nordin proceeded with the budget presentation. He stated that the first item to be considered was under the Personnel and Related Issue. He was recommending a dollar amount to be allocated for merit increases. He was not asking for any cost of living adjustment, only for merit monies in the amount of$154,600. Councilwoman Hutcheson MOVED to approve the EMPLOYEE MERIT MONIES in the amount of $154,600 and Councilwoman Ralphe SECONDED the motion,which CARRIED unanimously. Mr. Nordin called on Employee Benefits Committee Chairman Ron Lemon to present the committee's recommendations. He confirmed that he was not asking for any action tonight on this item but only input or suggestions from the Council relative to the presentation. Depending upon their input, he would prepare a final action item for Council consideration at the July 5th, 2001, meeting. (its", Chairman Lemon reviewed the proposed changes for the employees' benefits package. The list included: establishing a definition of retirement; establishing a pay out option of sick leave at the end of a calendar year at the rate of 70% for hours over 720 up to the maximum allowed (960 hours)/pay out of any accumulated sick leave at retirement(as defined)at the rate of 70%; three(3)personal days exchanged for sick days accumulated, which would not carry over from year to year; and the addition of grandparents to the list of"immediate family members". The Council agreed that "grandchildren" should also be added to the definition of "immediate family members". They asked Mr. Nordin to prepare a cost analysis based upon current employees at different percentages with regard to the pay out of sick time. Councilmember Hutcheson was concerned with the pay out of the total 960 hours at retirement. She asked to see more information on this option. Mayor Morgan suggested that the 960 hours might be paid out over a period of time rather than one lump sum. Mr. Nordin explained that the Benefits Committee had been trying to reward those who did not use their sick leave. They saw it as an incentive for employees to be well instead of sick. Mayor Morgan asked if the employee would be paid out at their current rate when retiring or an average. Mr. Nordin clarified, as written, it would be paid out at whatever their current rate was when they retired. Councilman McNeill suggested looking at an alternative rate of 50%. Mr. Nordin called upon Information Technology Administrator Peter Putterman to present the INFORMATION TECHNOLOGY BUDGET. Mr. Putterman explained that this budget was put together from requests by the individual departments. He noted that he and his staff were responsible for the communications, network, and web technology at the Town. Mayor Morgan MOVED to approve the INFORMATION TECHNOLOGY BUDGET in the amount of$301,190 and Councilwoman Hutcheson SECONDED the motion. L Town Council Minutes Special Budget Session 6/26/01 Page 2 of 12 Councilman McNeill asked for clarification on why there was an increase in professional/outside service fees. Mr. Putterman explained that $20,000 would be used for Engineering Department to combine existing data (cad data and miscellaneous databases)into a GIS system. He reviewed that the Marshals Department was asking for new software in their budget but their existing data would need to be converted to the new software format. The estimated conversion cost was approximately $10,000. Mr. Putterman also stated that he had allowed $7,500 for communications due to changes being made to the telephone system. There were also some one time annual expenses for the Community Center connections, which accounted for the increase in that line item. Councilman McNeill asked if there would be any opportunities in the future to work with other governmental agencies to achieve some communication cost savings. Mr. Putterman responded he had been talking with a member of the school board and confirmed that there was a future possibility of sharing fat pipes to provide Internet connectivity and local infrastructure issues. He said that a company had been identified for who could make a presentation to the Council on the benefits of sharing and the projections for cost savings. He stated he would be bringing such a request forward in the future. Mr. Putterman responded to a written question posed by Vice Mayor Wyman regarding the increase in office supplies line item. Mr. Putterman stated that several years ago the Town had made plans to put an emergency generator in Building B, but due to the Y2K issue it had been bumped into this year. He explained that when the generator was moved, the network room would be relocated to this building and the additional monies would be for flooring, cable racks and things needed for the new network room. He pointed out that once the money was expended it would not be a reoccurring expense. Councilwoman Hutcheson commented that this was one of the departments whose projected expenditures in this year's budget was less than last year's expenditures. The motion CARRIED unanimously. crie Mr. Nordin reviewed the ADMINISTRATION BUDGET. He called two changes to the Council's attention, one addition and one deletion. In the current fiscal budget under capital costs staff had budgeted to complete the emergency generator project, which was currently under way. However, the installation was not expected to be complete during this current fiscal year as planned. Staff expected to complete$26,500 of work on that project in the next 2001/02 fiscal year. He requested an increase in this budget by that figure. He stated that he would increase the carry forward from this fiscal year by this amount. Mr. Nordin requested the deletion of the request for an additional '/ time position, which would have brought the current part-time position up to a full-time position in accounting. Administration was requesting deletion as one of the accountants had recently resigned. Administration determined the addition of the'A time increase to a full-time position was not needed. He requested that the motion include both of these items. Mr. Nordin noted the variety of components contained in this budget and highlighted those areas containing increases. He pointed out a new line item for a new program called Transfare, in the amount of $20,000. This program would allow some taxi service to be subsidized. He noted that it would be difficult to gauge how much usage it would have. If the Council agreed with the concept, he recommended approval of this amount. Staff would monitor the usage to see if the $20,000 was enough during the fiscal year. If not, he would come back to the Council with an additional funding request. Another new item was the Mayors Council for Business Growth in the amount of$282,000. Staff was requesting that the Council approve some funding although he noted that the amount was a guess estimate in terms of the amount of money. As this group has not had the opportunity to meet and/or to propose a specific budget so it was his judgment as to what they might need. There had been talk of an additional position. This line item would give them the opportunity to consider what monies they might expend and programs they might want to consider implementing. They could then come back to the Council with specific proposals if those plans were to exceed the specific amount requested. He referred to a discussion held earlier with Councilwoman Ralphe about an additional break out on this line item. He would not have a problem with the proposal. The MMPC was asking for$24,500. Although the MMPC had not used that much in the past, Chairman Roy Kinsey had assured him that they would make a concerted effort to utilize those funds if they were to be allocated to them. Town Council Minutes Special Budget Session 6/26/01 Page 3 of 12 Mr. Nordin stated that money had been budgeted to revitalize the drug treatment program and staff felt that program was worth some resource allotment also. The proposed capital outlay included parking canopies for Building B, repair work to Building A, C,the old library and the theater. Mayor Morgan indicated an implied conflict of interest due to the Chamber line item. Mr. Nordin recommended, with the Town Attorney's concurrence, that the Chamber of Commerce line item be considered separately, allowing Mayor Morgan to vote on the balance of this budget. The Town Attorney confirmed that the quorum would be lost if the Mayor left the dais. Mr. Nordin stated that line item would be carried forward to the following evening's meeting. He explained that the motion would have to exclude this line item from the budget. Mayor Morgan noted that there should be five councilmembers at the next meeting with the return of Councilman Kavanagh. Mayor Morgan MOVED to approve the ADMINISTRATION BUDGET excluding the Chamber of Commerce line item and but including the two changes as previously presented and Councilwoman Hutcheson SECONDED the motion. Councilman McNeill noted the accomplishment of identifying/recovering more than $114,591 in sales tax revenues and encouraged staff to continue to expand efforts in that regard. Mayor Morgan pointed to the fact that the Town Attorney's hourly rates were extremely conservative. She felt that his hourly should be approved without any changes. Councilwoman Ralphe focused on the Transfare program. She described this program as a subsidized taxi service for the seniors and disabled citizens in the community. She expressed her thanks to Director Hansen for all her legwork and for putting this program together. Councilman McNeill thought it was an interesting proposal. Mayor Morgan pointed out that on page 7-25 "Mayor's Council for Business Growth" should be labeled "Mayor's Downtown Partnership Committee". Mr. Nordin covered that the Town Accountant was separately keeping track of the .01% of one percent money. The amount of money that was accumulated in that account, if included with the amount money anticipated accumulating in that account, assuming nothing was spent this next fiscal year, that amount of money was more than what was being proposed in the budget. Just because he was proposing to spend less did not mean that any of that revenue in that specific account would go away. Mayor Morgan stated that the anticipated amount to be collected would more than adequately take care of the projected expenses. Mr. Nordin agreed that was a correct statement. Councilwoman Ralphe addressed the conversations held earlier with Mr. Nordin regarding the Mayor's Downtown Partnership. As good stewards of the public's money, she wanted to see that the Council spent this .01 percent strictly for downtown development. Speaking as a member of the Mayor's Downtown Partnership Committee, she acknowledged that they had preliminary work to do before delineating all of the strategies that would come out of the consultant's report and the budgeting. She felt it was difficult to label some of these items strictly for downtown development at this time. She stated that she had revised this item by limiting it to just the first paragraph. That action would leave it wide open for the committee to determine what it wanted to spend money on. Then the committee could come to the council and recommend the expenditures they felt necessary. Councilwoman Ralphe stated that there were four very appropriate Town expenditures primarily in the category of Tourism. She proposed pulling these four different expenditures and putting them into another category, perhaps to be labeled Tourism. Mayor Morgan felt it was good to break them out but she did not know if they should be left under strictly Tourism. She saw items in this area that might come under the new Community Center (Mr. Willers) i.e. convention procurement and that wasn't really tourism. She suggested expanding the title to Tourism/Marketing. Mayor Morgan said it had always been her desire to have the Tourism Council from the Chamber work with Mr. Willers and the Town in a combined effort to promote Fountain Hills. Mr. Nordin said that was not a problem from the view of the staff. Councilman McNeill was confused as to where the funding would come from. He had in mind to use the sales tax monies for capital expenditures and infrastructure, which would bump up against that limited amount of $280,000 a year very quickly. He questioned the other programs included other than the Scottsdale Town Council Minutes Special Budget Session 6/26/01 Page 4 of 12 Convention and Visitor Bureau program in the amount of$30,000, as he did not know anything about them. Mr. Nordin explained this was looking forward to possibilities and acknowledged that he did not know yet exactly how the .01 of percent monies would be spent. He agreed with the concept of splitting these items out. The items under the new line item(Tourism/Marketing) would not necessarily fit within the definition of downtown development as we had intended that .01 to be spent. He felt that began to give some definition to what had been loosely defined up until now. If the Council agreed to what Councilwoman Ralphe proposed, $282,000 for the Mayor's Downtown Partnership Committee and include the new line item $133,243 for Special Programs — Tourism/Marketing, that did not mean that $282,000 would be expended. The Council would determine how those funds were to be expended once the Committee had developed their plan and presented it. This would allow staff to easily see how much revenue would be accumulated as the Mayor's Committee also considered what could be done with those funds. Just because it was designated in a contract oral line item in the budget did not limit the Mayor and this council from sometime during the fiscal year changing the designation to a capital item if so desired. It also did not permit, because of the way the budgeting was done, to add all of the money from the revenue that was available in the .01%. He assured the Council that there was flexibility in the budgeting process even if they adopted the changes proposed by Councilwoman Ralphe. Those changes could be made according to those decisions during the year. Mayor Morgan suggested that under this new line item Tourism/Marketing be adjusted to $100,000 because of the grants and other funding mechanisms available with which to work. She felt that was more than adequate for the first year. Administration Director Hansen pointed out that the $11,243 was for a grant that had already been received so that was already covered for this fiscal year. The $37,000 amount was an amount proposed from the Tourism Council through the Chamber of Commerce. The remaining $55,000 was basically a number that was pulled out of the air as a carry over from the Mayor's Council for Business Growth, which was an amount that had been allowed annually for programs that the Council might want to do throughout the year. As in the past, if a proposal came forward, it would be presented to the Council so that they could see what the money was going to be expended at that time and get their approval. Mayor Morgan pointed out that money had been included in this figure for the grand opening of the Community Center. Director Hansen confirmed that it would not hurt to reduce the amount to the $100,000 amount. • Councilwoman Ralphe AMENDED the motion to budget $282,200 for the Mayor's Downtown Partnership Committee line item and include a separate new line item (Tourism/Marketing) in the amount of $100,000 and Councilwoman Hutcheson SECONDED the amendment. Councilman McNeill felt that this was a lot of new money that was being put into advertising. He asked that it be monitored to assure that the Town was getting good value for the money. Mr. Nordin stated that the Council would receive progress reports during the fiscal year. Councilwoman Ralphe agreed that fiscal reports during the year were a good idea. She asked if reports could be made soon as to what the programs entailed. She pointed out that nothing in any detail had been brought to the Council about these programs and she felt it would be interesting to hear about them from their beginning. Mayor Morgan said she would put some people in contact with Mr. Willers and they could begin to work on that presentation. She noted that it would be a while yet before the actual Downtown Partnership would have a report as they were just beginning to go through the process. Mayor Morgan called for the vote. The amendment CARRIED unanimously. Councilman McNeill commented on an increase requested by the Boys and Girls Club. He stated he was supportive of this item. Mayor Morgan presented Rich Shultz of the Boys and Girls Club with a check from the Jazz Festival promoter. Mr. Shultz thanked the Council and Town for their support. Councilman McNeill questioned the need of a Town Page under the Advertising line item. Director Hansen explained that Town related items would appear on one page rather than having various articles scattered Town Council Minutes Special Budget Session 6/26/01 Page 5 of 12 throughout the newspaper. She pointed out the fact that many of the communities had such pages as a source of information and staff had been looking at this option over the last few months. She agreed that it was not a need and had been merely a suggestion at the discretion of the Council. Councilwoman Hutcheson said all those things were in the newspaper but just scattered around. She asked why the Town would pay for this public notification all on one page when the paper carried these articles as news now. Director Hansen responded that the Town could have some control over the layout and that would be the only difference. Mayor Morgan asked if it would cut down on phone calls. Mr. Nordin said there were no guarantees. Councilman McNeill said he did not think it was a bad idea but with a tight budget year it was an item that could be deleted. He felt it could be looked at again next year. Mayor Morgan asked how many citizens read the Compass and she questioned if that should be discontinued and have a town page in the paper instead. Councilman McNeill AMENDED the motion to remove the expenditure under the line item Advertising for a Town Page in the amount of $12,000 and Councilwoman Hutcheson SECONDED the amendment, which CARRIED unanimously. Councilman McNeill noted the increase in cost of employee benefits in general. He asked that staff look at the overall employee benefits package to see if there were some options that might be more cost effective for the Town. Mr. Nordin said staff would look at that issue. Councilwoman Hutcheson MOVED to approve the ADMINISTRATION BUDGET as presented and amended and Councilwoman Ralphe SECONDED the amendment,which CARRIED unanimously. Mr. Nordin reviewed and explained the COMMUNITY CENTER BUDGET. Estimated costs of operation had been included as well as staffing expenses. He noted that the $392,000 number was a payment for which the Town had budgeted and had planned to expend but it was not a$4.6 million principal as$2.1 million of that the Town did not have. That was where the Town's budget took the second hit. He recommended approval of the budget as presented. w Councilman McNeill MOVED to approve the COMMUNITY CENTER BUDGET in the amount of $744,558 and Councilwoman Ralphe SECONDED the motion. Mr. Nordin noted that Mr. Willers and the Chairman of the Community Advisory Commission would be making an information presentation at the July 5th Council meeting along with a rate schedule for the community center. Mayor Morgan questioned if there was an overlap in the job descriptions. Mr. Willers agreed there was a tremendous amount of overlapping in this type of operation. There would be parallels and similarities and cooperation among staff, as they would be dealing with the same clients to ensure that events went as smooth as possible,the information was coordinated, and that the client left satisfied. Mr. Nordin noted that on the general fund summary sheet, a $670,000 expenditure for the completion of the construction of the Community Center had been included. He asked that the Council's motion include approval of the site package work for the Community Center as well. Mayor Morgan AMENDED the motion to include the $670,000 expenditure as presented and Councilwoman Hutcheson SECONDED the amendment. The motion including the amendment CARRIED unanimously. Mr. Nordin reviewed the budget for the existing COMMUNITY CENTER (Saguaro facility). He explained the amount budgeted was based upon the amount of money that would be needed to operate the existing center between now and October 30,2001. He recommended approval. Mr. Nordin pointed out that it had not yet been determined as to what the site would be used for. Director Hansen noted the budget was for four months except for the utilities and ongoing maintenance, which had been planned for the entire year. L Town Council Minutes Special Budget Session 6/26/0I Page 6 of 12 Councilwoman Hutcheson MOVED to approve the COMMUNITY CENTER BUDGET (Saguaro facility) in the amount of$27,100 and Councilman McNeill SECONDED the motion. err► Councilwoman Hutcheson asked what the timeframe was to decide what would be done with this facility. Director Hansen responded perhaps within the next three months. The motion CARRIED unanimously. Mr. Nordin reviewed the budget for the LIBRARY/MUSEUM. He noted that there were two separate items under this tab, which required Council approval. Mayor Morgan asked if these O/M figures included the museum as she thought the County was taking care of the Library costs. Director Hansen clarified that this budget took care of the maintenance of the museum side and did not include any personnel. Councilman McNeill MOVED to approve $70,000 FOR THE OPERATION AND MAINTENANCE FOR THE LIBRARY/MUSEUM and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. Mr. Nordin stated that the next portion of this item was for the capital money to finish the construction on the library and the museum. He focused the council's attention on page 10-5. He pointed out that the Town had agreed to pay $210,000 to the museum for their operation. He felt this could be an appropriate legal expenditure under the bond proceeds for that building. He stated that amount of money might be left over from the bond proceeds. Mr. Nordin recommended approval. Councilman McNeill MOVED to approve the total expenditure in the amount of$1,422,500 FOR THE CAPITAL PROJECTS OF THE LIBRARY/MUSEUM and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. L Mr. Nordin reviewed the budget for the KIWANIS BUILDING/SENIOR CENTER. He pointed out that the possibility of new construction instead of remodeling as an option. If the Council desired, staff had no problem with adding some additional funds to build a new facility. He encouraged the council to approve at a minimum $415,000 for the renovation of the current building. Councilwoman Hutcheson MOVED to approve AT A MINIMUM $415,000 FOR THE KIWANIS BUILDING/SENIOR CENTER BUDGET and Councilman McNeill SECONDED the motion. Councilwoman Hutcheson said the senior center was used by a lot of people in Town. When she looked at these figures and knew the problems with the renovation of an old building. She felt that good money might be spent after bad. She said in earlier discussions with Mr. Nordin, he had suggested the possibility that the cost of constructing a new building might be brought down to around $500,000. She was very interested in this and wanted to see more on that. Mayor Morgan indicated that she would prefer to build a new building. Mr. Nordin said he could have the architect prepare two plans with one costing $500,000 and the other $600,000 for comparison purposes, which could be presented to the senior group and the Council for consideration. Councilman McNeill expressed concern that the square footage on the new building was less than what it would be from the remodel. He wanted to know if the seniors would be getting the space that was needed or would it be better to remodel for the larger facility. Mr. Nordin shared a point made by Director Valder. The development fee money had been budgeted as contingency. If the money was received, especially the general government money, those funds could be directed to this project. Mr. Nordin agreed that could be done. Director Hansen said there was a good possibility that this project would extend into the following fiscal year. Since all of their activities could be housed in the space being vacated by the Library in Building C, this project would not have to be rushed, which might allow the expenditure to be spread over a two year time period. L Town Council Minutes Special Budget Session 6/26/01 Page 7 of 12 John O'Flynn,E. Sullivan He stated that the seniors would prefer a new building, if funds were available, as the difference in the square footage would be in space utilization. The Board had voted unanimously to build new. Peg Tibbetts, Sunflower She was in favor of a new building. She suggested a fundraising idea. When the old portion of the building, which had been the fire station, was demolished some of the wood could be split up and sold. Mr. Nordin recommended that if the Council so desired a new building that the amount be increased from$415,000 to$500,00 with direction to investigate a new building concept. Mayor Morgan AMENDED the motion to INCREASE THE AMOUNT TO $500,000 FOR THE CONSTRUCTION OF A NEW KIWANIS BUILDING/SENIOR CENTER and Councilwoman Hutcheson SECONDED the amendment, which CARRIED unanimously. The motion including the amendment CARRIED unanimously. Mr. Nordin reviewed the budget.for the MAYOR AND TOWN COUNCIL. He noted there were increases in the budget, which were primarily for the costs of elections, sister city expenses, and additional monies for token gifts for dignitaries. Councilwoman Ralphe MOVED to APPROVE THE AMOUNT $104,600 FOR THE MAYOR AND TOWN COUNCIL BUDGET and Councilwoman Hutcheson SECONDED the amendment. Mayor Morgan commented that the increase in the advertising portion was for token gifts for visitors from overseas. She explained that this would allow the Town to present a higher quality gift. She realized that it might take longer to acquire the second sister city. She requested that the Town sponsor a portion of the cost of sending Fountain Hills students to Kasterlee, with the students responsible for raising the balance of the cost. Mayor Morgan wanted to foster youth participation. Mayor Morgan confirmed that the Town had not sent any students to Kasterlee under Nor this program. Councilman McNeill asked if the $5,000 to host the statewide Sister City meeting in Fountain Hills was a one-time expense. Mayor Morgan confirmed that Fountain Hills had been asked to host this weekend event in April. She pointed out that Fountain Hills finally had a place to hold such an event with the new Community Center. She also noted that this was a small convention and that the Town had enough hotel rooms that could house those attending. Councilman McNeill posed the question, did Fountain Hills really need a second sister city. He suggested that a different continent should be looked at if the second sister city was pursued. The motion CARRIED unanimously. Mayor Morgan called for a five-minute break and recessed the meeting at 8:35 p.m. reconvening at 8:41 p.m. Mr. Nordin reviewed the budget for the MAGISTRATE COURT. Mr. Nordin commented that this budget was similar to last year's. Councilman McNeill MOVED to APPROVE THE MAGISTRATE COURT BUDGET IN THE AMOUNT $330,650 and Councilwoman Hutcheson SECONDED the amendment, which CARRIED unanimously. Mr. Nordin reviewed the budget for BUILDING SAFETY. He stated that this budget was again very similar to last year's. L Town Council Minutes Special Budget Session 6/26/01 Page 8 of 12 Councilwoman Ralphe MOVED to APPROVE THE BUILDING SAFETY BUDGET IN THE AMOUNT $609,050 and Councilman McNeill SECONDED the amendment. Mayor Morgan inquired if the amount budgeted for professional fees was adequate to carry the mountain project through the review process and to keep it moving on the time schedule. Director Valder responded no, these professional fees would be spent on outside permit review for a building permit. He explained that what the Mayor was asking about had been provided for under the professional fees in the Community Development Department budget. Councilwoman Hutcheson commented that this budget was lower than last year's budget. Councilman McNeill asked for clarification that all of the funding needed for outside assistance to review the mountain subdivisions or other major projects would be covered under the next section, Community Development. Mr. Nordin responded that some of the fees would be covered under the Engineering Department budget as well. Councilman McNeill expressed concern that the Town staff had enough help to thoroughly review the issues that needed to be addressed in addition to meeting the time schedule. Mr. Nordin agreed that Councilman McNeill was correct but permanent town staff would be depended upon in conducting those reviews also. He said that explained why the council would not see the total cost of those reviews reflected in the professional service line item. He mentioned that because staff had gone over several of the mountain plats, staff had a very good background and would be able to address these issues most effectively. The motion CARRIED unanimously. Mr. Nordin reviewed the budget for COMMUNITY DEVELOPMENT. This budget was again similar to the previous year. He concluded the largest additional item was a new $23,000 expenditure for a new vehicle that would replace the 1991 Corsica. He recommended approval. Councilwoman Ralphe MOVED to APPROVE THE COMMUNITY DEVELOPMENT BUDGET IN THE L. AMOUNT$406,080 and Councilwoman Hutcheson SECONDED the amendment. Councilman McNeill asked if $70,000 wouldn't be a better figure to budget for under the Professional Fees line item as some of the same issues were being faced in the coming year. He noted that it wouldn't all have to be spent. Director Valder replied that last year staff knew how much it would cost to hire a consultant for the development fees study. He noted that he had requested an additional planner because there was a state mandated general plan update that required a public vote by the end of the calendar year 2002. He explained that he would need to assign one of the senior planners to that project as well as continue with the state issues. He pointed out that it was a full time job. He stated that with the permit load, reducing the $25,000 would be used for any outside assistance Town staff needed to update the general plan or consider state land acquisition efforts. He was confident that staff could take care of everything with the additional planner in lieu of hiring a consultant from the outside. He stated that his department would have a continual need for that extra staff member but as things slow down, staff would be reduced through attrition as recently demonstrated in the Building Safety Department by the one position. Mr. Nordin assured Councilman McNeill that the money for the additional outside professional staffing that might be necessary throughout the fiscal year was included. He stated that staff recognized the need and the desire to move forward on the mountain plats. He assured the Council that if for some reason staff saw that this budgeted amount was not sufficient, staff would not think they were limited. He noted that he could expend an additional amount within his authority,but he would take care of it. The motion CARRIED unanimously. Mr. Nordin suggested that because Councilman Kavanagh had expressed his desire to be present for the Parks and Recreation's budgets that the various park budgets be skipped tonight and considered at tomorrow night's meeting. He proposed that if the Council desired, they could move onto the other remaining departments after considering the Marshals Department budget: Engineering. Public Works, and Streets. Town Council Minutes Special Budget Session 6/26/01 Page 9 of 12 Mr. Nordin reviewed the MARSHALS DEPARTMENT BUDGET. He noted the increase in the salaries and benefits line items. He explained this increase was not due to any request to increase staffing, but because of grants were ending leaving the Town to pick up the slack for grants received in the past. Mr. Nordin requested an increase in the amount for the sheriffs contract, which would add another detective. He noted that radios had been budgeted for the amount of$32,000 and they would find a similar budgetary item in the Street budget. He stated that staff was present who could address this radio issue if the Council desired. He recommended approval. Councilwoman Hutcheson MOVED to APPROVE THE MARSHALS DEPARTMENT BUDGET IN THE AMOUNT$2,676,390 and Councilman McNeill SECONDED the amendment. Councilwoman Ralphe suggested that if the Town were to establish their own police department this year, it would cost about $500,000. She said Mr. Nordin had pointed out that there was now a capital reserve for police of $250,000 but there were also undesignated reserves that could be tapped. She questioned if the Council wanted to budget for the additional $250,000 needed specifically in order to add to the capital reserve. Councilwoman Hutcheson asked Mr. Nordin why the Council would do that. Mr. Nordin said the he was comfortable that he would have another $250,000 to add to the existing funds to bring it up to the $500,000 if needed. Councilwoman Hutcheson asked if the radios would be compatible with the County. Director Gendler said yes. The motion CARRIED unanimously. The Council agreed to continue with the budget review of Engineer, Public Works and Streets. Mr. Nordin reviewed the budget for the ENGINEERING DEPARTMENT. He pointed out in the salary and benefit line items, there were some vacancy savings. He proposed that approximately $70,000 in Contractual Services was a major portion, which could be used for the review of the mountain plats. The balance of the budget was similar to last year's. Engineering was recommending a $22,000 expenditure for a bi-fuel '/2 ton pickup truck. He noted that the vehicle had been budgeted for in this fiscal year, but it had been back ordered so this was an effort to again tkifor budget for a vehicle that staff had hoped to get this fiscal year but did not. Councilwoman Hutcheson MOVED to APPROVE THE ENGINEERING DEPARTMENT BUDGET IN THE AMOUNT$866,930 and Councilwoman Ralphe SECONDED the amendment. Councilwoman Hutcheson said she was happy that the Town was making progress in this direction and she again pointed to the fact that this budget was less than last year's. Councilman McNeill asked what the second fuel was. Assistant Public Works Director Ward confirmed they were working with Southwest Gas to get the line around Panorama so that a line could be established at the Street Department yard. He said it would be compressed natural gas. Councilman McNeill again asked if there was enough in the budget to cover the major subdivision review that would be needed. Town Engineer Harrel said that Mr. Nordin had indicated that if staff was unable to handle the workload in house, that outside consultants could be used as needed. He noted that they might be back before the Council if their department needed to come back for supplemental appropriations. The motion CARRIED unanimously. Mr. Nordin reviewed the PUBLIC WORKS DEPARTMENT BUDGET. He observed that the Town was taking on more of the responsibility for the median maintenance so there was an increase in that line item. He said the $160,000 for wash maintenance was staffs best estimate. He did not know if he agreed with the Fire District Board that this amount was not enough. He proposed that the Town use this money first and assess the need to come back to the Council with a request for additional funding. L Town Council Minutes Special Budget Session 6/26/01 Page 10 of 12 Councilwoman Hutcheson MOVED to APPROVE THE PUBLIC WORKS DEPARTMENT BUDGET IN THE AMOUNT$680,010 and Councilwoman Ralphe SECONDED the amendment. L. Councilman McNeill reminded Mr. Nordin that one of the suggestions made during the discussion of the wash policy had been to possibly use the Sheriffs work crews to supplement the Town's efforts. He felt that was a good possibility for a low cost work force to complete this activity. Mr. Nordin said that could work to the Town's advantage. Councilwoman Hutcheson asked if they could also be used for the median landscape maintenance. Mr. Nordin said it was a possibility. Mayor Morgan expressed concern that the public might be caught unaware when they saw the chain gang in the median. She did not want to put more pressure on the sheriffs department and the marshals by creating a possibility for accidents. She felt that might have to be publicized heavily before it happened as it might startle some of the citizens. Mr. Nordin said he was sure Commander Sheridan would be very cooperative. Councilwoman Ralphe questioned using chain gangs in the washes. She concluded that they would need to be reliable workers who were able and willing to differentiate one plant from another. Mayor Morgan agreed that knowledgeable supervision would be required. The motion CARRIED unanimously. Mr. Nordin reviewed the budget for the STREET DEPARTMENT. Mr. Nordin displayed the Street Revenue pie chart. He explained that that this was a separate fund that must be accounted for according to state law in a fashion that was separate from the General Fund. The source of the street fund was the highway user revenue fund, which had an increase of about $200,000 because of the state shared revenues due to the population growth. While the Town could not use street fund money for general fund purposes, it was legal to transfer general fund money into the street fund. He noted that he was suggesting $550,000 be budgeted. There were other minor sources of money coming into the Street Fund, the largest being the Lottery funds (LTAF). Town Accounting Supervisor Julie Ghetti confirmed that there weren't any additional personnel increases. The additional monies in the salaries and benefits were reflective of full-time positions as opposed to last year when there was a new position that wasn't filled until L. later in the year. This budget reflects a full year of full-time positions. She pointed out$28,000 had been included for overtime for emergency street needs. Mr. Nordin noted a significant budgetary decrease in the Major Road Improvements, reduced to $660,000 from an approved amount of last year, $1.9 million. He explained that the engineering staff, who were also responsible for the public works projects, had been challenged in the past to complete work that had been assigned to them. His strategy was to cut back on major road improvements this coming fiscal year and allow the Engineering Department the ability to focus and finish all of the projects assigned. If during the fiscal year the Engineering Department finished these projects and expended the $660,000, he had offered them the possibility, and was suggesting to the Council,that they could propose another project with the idea it could be considered for approval during the coming fiscal year. He felt that was a more prudent plan than approving a larger amount as done last year and finding that it was not expended. He wanted to allow the engineering staff to do what they could accomplish and not over burden them during the fiscal year. Mr. Nordin confirmed that they did work a lot of overtime and this year he wanted to take this approach. Councilwoman Hutcheson MOVED to APPROVE THE STREET DEPARTMENT BUDGET IN THE AMOUNT$1,968,395 and Councilwoman Ralphe SECONDED the amendment, which CARRIED unanimously. AGENDA ITEM#2. CALL TO THE PUBLIC. No one came forward. AGENDA ITEM#3. ADJOURNMENT. Councilman McNeill MOVED to adjourn and Councilwoman Ralphe SECONDED the motion, which CARRIED unanimously. Mayor Morgan adjourned the meeting at 9:30 p.m. Town Council Minutes Special Budget Session 6/26/01 Page 11 of 12 TOWN OF FOUNTAIN HILLS Low B : aron Morgan,Mayor ATTEST: (. ^A.- Cassie B. Hansen, Director of Administration/Town Clerk PREPARED BY: .4.„)., r ? ' `L/C-- 'L.J Bev Bender,Executive Assistant CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special Meeting held by the Town Council of Fountain Hills on the 26th day of June 2001. I further certify that the meeting was duly called and that a quorum was present. DATED this 2nd day of August 2001. CA-44-4—t. X� titer' Cassie B. Hansen, Director of Administration/Town Clerk Low Town Council Minutes Special Budget Session 6/26/01 Page 12 of 12