FINANCE COMMITTEE MEETING BUDGET REVIEW SESSION

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1 FINANCE COMMITTEE MEETING BUDGET REVIEW SESSION The Finance Committee of the City of Norfolk, Nebraska met in the City's Conference Room, 309 Madison Avenue, Norfolk, Nebraska, on Wednesday, July 20, 2005, beginning at 8:00 a.m. Mayor Gordon D. Adams called the meeting to order. Roll call found the following Committee members present: Mayor Gordon Adams and Councilpersons Kaspar-Beckman (8:34 a.m.), Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor. Absent: Saunders. Staff members present were City Administrator Mike Nolan, Public Works Director Dennis Smith, City Attorney Clint Schukei, City Clerk Beth Deck, Fire Chief Shane Weidner, Finance officer Randy Gates, Police Chief Bill Mizner, and Transportation, Building & Grounds Director Jim Koch. Lori Pilger, Norfolk Daily News, briefly attended the meeting. Notice of the meeting was given in advance by publication in the Norfolk Daily News, and notice of the meeting was given to the Mayor and all members of the Council prior to the meeting. The Mayor presided and the City Clerk recorded the proceedings. BUDGET REVIEW SESSION Fire Division Fire Chief Shane Weidner provided information to elected officials on the proposed FY Fire Division. Estimated expenditures are: Personnel Costs, $2,453,308; Operating Supplies & Materials, $32,370; Other Operating Costs, $1,300; Utilities & Maintenance, $92,227; Legislative Affairs, $36,239; Administration Overhead, $55,755; Government Subsidies & Transfers, $113,891; and Capital Outlay, $39,900 for a total of $2,824,990. Capital expenditures include bunker gear, $10,000 and concrete replacement, $5,000. Weidner explained Level 4 contains a roof replacement for $90,000; rescue unit, $154,875 and a tanker, $157,500. These items are ready for replacement but will be deferred for one to two years. Weidner stated rescue units have a life cycle of approximately 15 years and the unit is a 1990 model. The fire station roof was replaced in 1985 or 1986 and is starting to leak. Staff requests approval of Level 3 with a workers comp adjustment of $2,982. City Administrator Mike Nolan stated the major improvements may be purchased with a bond issue next year. Councilman Van Dyke moved, seconded by Councilman Leshovsky to approve Level 3 of the FY Fire Division budget with the $2,982 workers comp adjustment as presented. Roll call: Ayes: Council members Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Kaspar-Beckman and Saunders. Motion carried. Region 11 Emergency Management Fire Chief Shane Weidner provided information to elected officials on the proposed FY Region 11 Emergency Management budget. Estimated balance brought forward is $62,739 with revenues from Intergovernmental Revenues, $877,108; Other Interest Income, $2,600; and Non-Revenue Receipts, $37,563 for total funds available of $980,010. Other Intergovernmental funding is shared between Antelope County (20%) for $18,781; Madison County (23%) at $21,599; and Pierce County (17%) at $15,964. The City of Norfolk s share is $37,563 or 40%. Expenditures are: Personnel Costs, $66,652; Operating Supplies & Materials, $2,774; Utilities & Maintenance, $14,056; Legislative Affairs, $2,100; Administration & Overhead, $1,900; and Capital Expenditures, $826,564. Staff requests approval of Level 3 with the workers comp adjustment of $44. Councilman Leshovsky moved, seconded by Councilman Van Dyke to approve Level 3 of the

2 FY Region 11 Emergency Management as presented. Roll call: Ayes: Council members Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Kaspar-Beckman and Saunders. Motion carried. Engineering Division Public Works Director Dennis Smith provided information to elected officials on the proposed FY Engineering Division budget. Estimated expenditures are: Personnel Costs, $386,630; Operating Supplies & Materials, $4,512; Utilities & Maintenance, $10,175; Legislative Affairs, $8,372; Administration & Overhead, $13,978; and Capital Outlay, $14,350. Capital outlay includes a Map 3D program, $3,000, and CAD computer, $2,350. Staff requests approval of the Level 3 Engineering budget with the deletion of the Xerox copy machine for $7,000 and a workers comp adjustment of $236. Smith explained staff proposes a 4-year rotation cycle for computers instead of the current 3-year replacement cycle. However, staff recommends keeping computer replacements in the FY budget for each division to maintain the budget base. Councilman Van Dyke moved, seconded by Councilman Lange to approve Level 3 of the FY Engineering budget with the deletion of the Xerox copy machine for $7,000 and a workers comp adjustment of $236 as discussed. Roll call: Ayes: Council members 911 Fund Police Chief Bill Mizner provided information to elected officials on the proposed FY E911 Fund budget. The 911 Fund receives money generated from a $1.00 per month surcharge on each local exchange access lines that physically terminates within the City of Norfolk s designated E911 telephone service area. Estimated balance brought forward is $27,016 with revenue of $90,100 from taxes and $554 from other interest income. Estimated expenditures are: Utilities & Maintenance, $15,000 and Interfund Transfers, $102,000, which goes towards operation of the E911 Center. Councilman Van Dyke moved, seconded by Councilwoman Kaspar-Beckman to approve the FY E911 Fund budget as presented. Roll call: Ayes: Council members SNARE (Specialized Narcotics Abuse Reduction Effort Fund) Police Chief Bill Mizner provided information to elected officials on the proposed FY SNARE budget. Estimated balance brought forward is $59,383 with revenue of $100,925 from Intergovernmental Revenues for total funds available of $160,308. Mizner estimates receiving only $67,025 from the Nebraska Crime Commission for funding in FY Estimated expenditures are: Personnel costs, $18,503; Other Operating Costs, $13,800; Utilities & Maintenance, $2,500; and Other Administration & Overhead, $67,616 for a total of $102,419. Mizner stated federal funding continues to decrease for SNARE; however, the need for funding continues to rise. SNARE has a workers comp adjustment of $1.00. Councilman Van Dyke moved, seconded by Councilman Brenneman to approve the FY SNARE budget as presented. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Saunders. Motion carried. Police Division Police Chief Bill Mizner provided information to elected officials on the proposed FY Police Division budget. Estimated expenditures are: Personnel Costs, $3,783,687; Operating Supplies & Materials, $84,322; Other Operating Costs, $64,927; Utilities & Maintenance, $95,341; Legislative Affairs, $24,398; Administration & Overhead, $149,626; and Capital Outlay, $74,952. Expenditures include: Medical Sex Assault & Prisoner Exams,

3 $24,000 and City Attorney Fees, $13,000 (Madison County public defender s office fee to help the City Attorney prosecute cases) in Line Item 68. Line Item 84 contains $69,000 for the purchase of three cruisers, $3,954 for light bars with pre-emptive devices (3), and $1,998 for incar video systems (3). The E911 system for $150,000 and an AS400 for $70,200 will be purchased with a bond issue. Staff requests approval of Level 3 with a workers comp adjustment of $2,410 and the addition of bond issuance costs, $2,800; E911 system, $150,000, AS400, $70,200, and Canine unit, $28,500. Councilman Van Dyke moved, seconded by Councilwoman Kaspar-Beckman to approve Level 3 of the FY Police Division budget as presented with a workers comp adjustment of $2,410 and Canine unit, $28,500, and the addition of bond issuance costs, $2,800 and purchasing the E911 system, $150,000, and AS400, $70,200, with bond proceeds. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Park Division Park Superintendent Pat Mrsny provided information to elected officials on the proposed FY Park Division budget. Estimated expenditures include: Personnel Costs, $466,954; Operating Supplies & Materials, $22,725; Other Operating Costs, $5,600; Utilities & Maintenance, $201,608; Legislative Affairs, $4,728; Administration & Overhead, $9,899; and Capital Outlay, $128,300 for a total of $839,814. The Park Division budget contains $10,000 for plumbing & pool repairs and $10,000 for ball field improvements in Line Item 46. Line Item 84 contains $9,500 for front end mowers; $6,500 for a 4-wheel utility vehicle; and $6,300 for 15 picnic tables. Line Item 84 contains $45,000 for park & playground development, $25,000 for ball field lighting upgrade, and $36,000 for entrance signs. Staff requests approval of the Level 3 budget with the deletions of $25,000 for ball field lighting upgrade and a reduction of $23,000 for entrance signs in Line Item 87 and a workers comp adjustment of $361. Councilman Van Dyke would like to add more personnel to the Park Division budget. Van Dyke stated the Park Division continues to get more work with the same amount of staff. City Administrator Mike Nolan stated the Park Division should have additional personnel to handle its load; however, the budget needs to be balanced. Nolan stated current positions that become vacant through attrition won t be filled at this time in any City Department or Division. Councilman Van Dyke moved, seconded by Councilwoman Kaspar-Beckman to approve the Level 3 FY Park Division budget with the deletions of $25,000 for ball field lighting upgrade and a reduction of $23,000 for entrance signs in Line Item 87 and a workers comp adjustment of $361. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Saunders. Motion carried. NPPD 2% Lease Payment Discussion Councilman Fauss questioned whether the property purchased on the floodway would be a good place to locate a water park. Smith stated it wouldn t be a good idea to build on the floodway. Fauss feels it would be good for the current Council to discuss how the NPPD 2% lease payment will be used after the four year time frame established for providing the funding to the YMCA, Norfolk Arts Center, Theatre and Museum. Fauss feels the City Council should adopt a resolution now to be able to use the funds to build a water park if the upcoming bond issue fails or to lessen the property tax burden if the bond issue passes. Councilman Van Dyke said there may be a new Council at that time and the current Council shouldn t make that decision. Mayor Adams agrees with Van Dyke. City Administrator Mike Nolan said the Finance Committee could discuss the issue at the

4 General Fund Revenues meeting next week. The Finance Committee took a five minute break at 9:35 a.m. Auditorium Park Superintendent Pat Mrsny provided information to elected officials on the proposed FY Park Division budget. Estimated expenditures are: Personnel Costs, $60,109; Operating Supplies & Materials, $8,095; Operating Costs, $900; Utilities & Maintenance, $36,582; Legislative Affairs, $600; Administration & Overhead, $800; and Capital Outlay, $2,500. The expenditures include electrical repairs, $1,500; miscellaneous improvements, $5,000; and carpet extractor (cleaner), $2,500. Levels 3 and 4 are the same for the Auditorium budget. Staff requests approval of the budget with a workers comp adjustment of $36. Mrsny stated the electrical system in the Auditorium is very bad. The Auditorium houses the Administration, Engineering, Finance and City Clerk offices. Computer upgrades and the need for more equipment by these offices takes more power which puts a strain on the electrical system. Councilman Van Dyke moved, seconded by Councilwoman Kaspar-Beckman to approve Level 4 of the FY Auditorium budget as presented with the workers comp adjustment of $36. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Councilman Lange stated the Auditorium problem is the use of the building. The building should be used as an auditorium only and not offices for city staff. Lange stated there is a need for a new building for city offices. City Administrator Mike Nolan stated current law allows the use of up to $5 million on a new building when partnering with another entity, such as the Norfolk Public Schools, without a vote of the people. Nolan doesn t know if the Public Schools are interested in partnering on a new building since the schools are currently doing major repairs on the Administration structure. Councilman Van Dyke feels staff should discuss the issue with the Public Schools. If the schools aren t interested in partnering on a building then the adjacent lots east of the City Council Chambers should be used to build a new city office building. Councilman Lange said the City purchased the lots last year to develop into a new building for city offices and the project should proceed. Nolan stated elected officials have recently been criticized for allowing the NPPD 2% lease payment to be given to the four local entities over the next four years. Another factor to consider is the upcoming ballot issue for a new water park. Citizens also approved a school bond issue recently for major renovations. The City also needs to replace a rescue squad and do the drainage project by the ethanol plant. Nolan stated all of these projects impact taxpayers and elected officials need to prioritize issues before proceeding with a new building for city offices. Lange feels City staff should start planning in-house for new office space for City staff. Nolan stated planning for a new building is easy but plans are difficult to implement. Councilwoman Kaspar-Beckman feels City staff needs to start by discussing the issue with the Public Schools to see about any interest in partnering on a building. Councilman Wilson, who is a public school teacher, feels the City should discuss the issue with Norfolk Public Schools staff. Mayor Adams feels the City should check to see if the public schools are serious about partnering on a new Administration building. Street Division

5 Transportation, Building & Grounds Director Jim Koch provided information to elected officials on the proposed FY Street Division budget. Estimated expenditures are: Personnel Costs: $1,250,356; Operating Supplies & Materials, $219,105, Other Operating Costs, $21,300; Utilities & Maintenance, $348,445; Legislative Affairs, $11,854; Administration & Overhead, $11,545; and Capital Outlay, $258,600. Major capital outlay budgeted includes a motor patrol, $125,000; dump truck, $50,000; skid steer, $22,000 and pickup, $21,000. Staff requests approval of the Level 3 budget with the deletions of the motor patrol for $125,000; dump truck, $50,000; and workers comp adjustment, $1,122. Councilman Van Dyke moved, seconded by Councilman Fauss to approve Level 3 of the FY Street Division budget with the deletions of the motor patrol for $125,000; dump truck, $50,000; and workers comp adjustment, $1,122. Roll call: Ayes: Council members CHAF (City Highway Allocation Fund) Public Works Director Dennis Smith provided information to elected officials on the proposed FY CHAF budget. The CHAF budget is funded with receipts from the State of Nebraska gasoline tax and motor vehicle fees. Estimated balance brought forward is $1,514,014 with revenues of $1,725,000 from Intergovernmental Revenues and $38,000 from other interest income. Estimated expenditures are Other Operating Costs, $10,000; Other Administration & Overhead, $90,000; Government Subsidies, $315,000; and Capital Outlay, $2,475,500. Capital outlay projects for FY are: Street maintenance contract work , $550,000; M(146) contribution to Nucor Road relocation, $400,000; M(154) traffic signal at Highway 81 and Monroe, $282,000; M(159) 25th Street, 200 north/south of the bridge, $60,000; M(163) contribution to improvement of Old Highway 8, $58,500; M(168) curb & sidewalk improvements on Norfolk Avenue, $500,000; M(169) Oak and Spruce Avenue Street improvements, $400,000; and Access road for industrial expansion, $225,000. Staff requests approval of the budget with the deletion of $6,400 for interest adjustment and a $315,000 transfer to the General Fund. Smith explained the $60,000 budgeted for the bridge on North 25th Street is engineering costs and construction will not occur in Smith explained staff is looking at a new deck and new approaches for the bridge. Smith said the City made a $58,500 commitment to Stanton County to help with improvements to Highway 8 but those plans may change because of Green Fiber s recent announcement to move the production facility. Councilwoman Kaspar-Beckman moved, seconded by Councilman Fauss to approve the FY CHAF budget as presented with the deletion of $6,400 for interest adjustment and a $315,000 transfer to the General Fund. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Saunders. Motion carried. Vehicle Parking District Public Works Director Dennis Smith provided information to elected officials on the proposed FY Vehicle Parking District budget. Estimated balance brought forward is $216,847 with taxes of $72,250; Rent & Other Income, $14,400; Interest Income, $2,000; Other Interest Income, $4,600; and Non-revenue Receipts, $310,000 for total funds available of $620,097. Staff recommends raising the property taxes by $3,900 to max out the levy rate at the 35 cents/$100 allowed by statutes. Staff also recommends a bond issue for $300,000 to fund a portion of the cost of improvements in Downtown Norfolk. Estimated expenditures include Operating Supplies & Materials, $200; Other Operating Costs, $10,500; Utilities & Maintenance, $24,168; Legislative Affairs, $29,500; Administration & Overhead, $4,975; and Capital Outlay, $540,000. Major expenditures include $25,000 for an advertising campaign; $4,500 for Downtown promotion; (Downtown Norfolk merchants want to start a public relations campaign to promote the downtown are); and $540,000 for the Downtown improvement project. Smith said downtown merchants are discussing the possibility of

6 expanding the Vehicle Parking District to the west. Mayor Adams feels the Downtown Norfolk improvements are necessary. However, Mayor hopes downtown merchants will maintain the area after completion of the renovation project. Adams feels portions of the Downtown area look neglected. Councilman Fauss moved, seconded by Councilwoman Kaspar-Beckman to approve the FY Vehicle Parking District budget as presented. Roll call: Ayes: Council members Councilman Leshovsky moved, seconded by Councilwoman Kaspar-Beckman to adjourn the meeting at 10:27 a.m. Roll call: Ayes: Council members Kaspar-Beckman, Brenneman, Fauss, Lange, Leshovsky, Van Dyke, Wilson and Mayor Adams. Nays: None. Absent: Saunders. Motion carried. Elizabeth A. Deck City Clerk