MEADVILLE CITY COUNCIL Meeting Proposed 2019 Budget November 20, 2018

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1 MEADVILLE CITY COUNCIL Meeting Proposed 2019 Budget November 20, 2018 Call to Order A City Council Meeting on the Proposed 2019 Budget was called to order at 7:09 p.m. by Mayor Stearns. Deputy Mayor Mangilo-Bittner, Councilmembers Sean Donahue, Jim Roha, John Battaglia and Mayor Stearns answered on the call of the roll. Also present were City Manager Andy Walker, Assistant City Manager/Zoning Administrator Gary Johnson, City Solicitor Gary Alizzeo, Finance Director Debbie Oldakowski and Deputy City Clerk Maryann Menanno. Also present were City Treasurer Michelle Sampson and Public Works Director Nathan Zieziula. Discussion Proposed 2019 Budget Treasurer, City Clerk, City Manager Treasurer: City Treasurer Michelle Sampson spoke to review the Treasurer s budget. The Treasurer s Office is responsible for collecting taxes and billing for the City. Two-thirds of the City Treasurer s wages are paid by the County and School District. Per Capita taxes are due by November 30 th after which they will go to Sharp Collections. Local Services Tax is right on budget for this year but may see a loss next year due to the anticipated loss of Ainsworth Pet Nutrition jobs. Additionally, the City could potentially see a loss of $20, in Earned Income Tax for the same reason. Treasurer Sampson comes into the office twice a week to look at reconciliations. Major reconciliations will occur the second week of January. Treasurer Sampson also discussed how the per capita tax assessors jobs may be eliminated because the county is using different, more up-to-date methods of reaching out to people. City Clerk: City Manager Walker noted City Clerk budget has increased over 2018 levels due to staffing realignment with 25% of his salary and 100% of Deputy City Clerk Menanno and Receptionist Ginnie Steiger s salaries are included in this category. All advertising costs are budgeted here. City Manager: City Manager Walker explained that 75% of his salary, 50% of Assistant Manager Johnson s salary and 100% of Executive Assistant Debbie Corll s salary are included in this category. Also included are expenses related to Porter Consulting Engineers and Shade Tree management. $30, has been budgeted for shade tree management because additional resources are needed to remove dead and dying trees. If a storm occurs causing trees or limbs to fall, money for that clean up comes out of Public Works budget. Any psychological exams for police also come from 1

2 the City Manager s budget. Public Works Council, Solicitor, Finance Director Nathan Zieziula spoke on behalf of Public Works budget. Administrative personnel budgeted for include: Cindy Andrews, Chuck Larson, Bennett Gould, Rick Williams, Nathan Zieziula and Jeanne Smith. The department s budget includes revenue/expenses from the General Fund, Liquid Fuels Fund (revenue from PA gas tax) and Stormwater Fund. In 2018, the City under budgeted for contracted services such as snow shoveling and parking lot plowing, so the 2019 budget is more reflective of a realistic cost estimate. Existing Conditions Assessment in the Stormwater Fund includes monies for engineering & video fees associated with a watershed study. City Manager Walker explained that salt and antiskid are purchased via contract through the state and pricing is set for the year. Currently, salt and antiskid supplies are almost to capacity and the City is only looking to purchase for this season again at the end of the year. It was explained to Council that because Liquid Fuels and Stormwater Funds are restricted funds; relevant costs can be allocated to them and they cannot be used to balance the General Fund budget. Director Zieziula has only been on the job for a week and is trying to determine ways to become more efficient given that the department is currently short staffed due to medical leaves. There is a new position budgeted to funded 100% by Stormwater Fund revenue but the position will not be filled until a Collective Bargaining Agreement has been reached and medical leave issues are worked out. Council: Budget consists of benefits, PA State Association of Boroughs membership, training, travel and small projects. The PA State Association of Boroughs membership is $300.00/year compared to $7,000.00/year for membership to the Pennsylvania Municipal League of which the City is no longer a member. Solicitor: All legal fees for outside labor and special projects counsel and Solicitor Alizzeo s retainer fee is charged here. Finance: Personnel budgeted here include Payroll, Finance Director, and Accounts Payable. The savings in personnel over the 2018 budget reflects Tim Groves and Michelle Sampson s retirements. Other expenses include city-wide maintenance of office equipment and software and the audit. Management services were reduced for 2019 since a pension study was not needed. General Gov t/revenues All money coming into General Government comes from General Fund revenues. Annual gifts from Allegheny College and Meadville Medical Center and a PILOT from the Meadville Area Sewer Authority are included here. The City currently does not have a 2

3 PILOT with the Meadville Area Water Authority (MAWA). In 1992, when the Water Authority was sold, an initial lump sum was paid to the City in lieu of an annual payment. Council would like to look into setting up an annual PILOT payment with MAWA and directed the City Manager to meet with MAWA to discuss the matter further in the new year. City Manager Walker pointed out that revenues from cable franchise fee are reduced in 2019 due to a decrease in cable customers. In looking at ways to generate revenue without raising taxes, Council discussed a possible tax on private refuse contractors operating in the City or having the City s refuse contracor (Tri- County) perform commercial pickups. Council remarked on the difficulties of regulating commercial pickup especially concerning biohazard waste, etc. Council also discussed Local Economic Revitalization Tax Assistance (LERTA) and the possibility of revoking it if a project is not completed by a certain date. Special Revenue Funds Council briefly reviewed the following Special Revenue Funds: Balizet Estate: Interest on the fund can be used by the Shade Tree Commission. Fund is at its minimum balance and no expenditures budgeted for Barco Fund: Funds used for City-wide beautification. Kenneth A. Beers: Budgeted for ongoing maintenance of the David Mead replica log cabin. Bulen Band Shell: Fund for general maintenance and improvements to the Diamond Park gazebo and the park itself. Mary DeArment Park: Interest on the fund can be used for the upkeep of DeArment Park. Fund is at its minimum balance and no expenditures are budgeted for Judith P. Eells Fund: Fund for planting in public rights-of-way. Trust generates annual revenue. Shippen Fountain Fund: Fund for general maintenance of the Shippen Fountain in Diamond Park materials and supplies only Memorial Tree Fund: Fund for planting trees.. Because there have not been many donations to this fund, the Shade Tree Commission is planning on doing a marketing campaign. Memorial Day Committee: Fund, mostly donations in and expenses out, for annual Memorial Day observance. 3

4 Kepler Rental Fund: In 2013, the City took title to the downstairs commercial condo unit, where the only source of revenue is rent from the ground floor tenants. Finance Director Oldakowski is the City s representative to the condo association. Condominium fees are expected to increase 4% in 2019, with an expected budget increase of $1, Rate Stabilization Fund: Described as Council s savings account created from the sale of the sewer system to MASA in Principal and interest from the fund has been transferred into the General Fund to balance the budget and limit tax increases. Remaining balance after a proposed transfer of $95,000 in the 2019 preliminary budget is $385, Long Term Capital Reserve: Fund established in 1992 upon the sale of the water system to MAWA in 1992 to fund capital projects budget proposes to transfer $10, into the Capital Account. Council had earmarked $250,000 from this fund to create a Redevelopment Fund to be made available to the Redevelopment Authority for various initiatives. To date, approximately $50,000 has been advanced. Debt Retirement Reserve: Established in 1992 from the sale of the water system. In 1993, the City paid approximately $3 million in debt service. Money received from the Department of Environmental Protection goes into this fund. The 2019 budget City flexes in $275, towards debt service to offset its annual debt payment. Discussion Council was informed that when the former Dick Hose Building was sold to RDA, the City took back a mortgage in the amount of $72,000, the appraised value of the building. RDA leased to Porter Consulting Engineers with an option agreement to purchase the building for $113, Porter Engineering has elected to exercise this option, meaning that the City will receive $72, in early City is currently $215, out of budget. With the elimination of MARC passes for $10, and the sale of the aforementioned building, the City will then be $113, out of balance. To compensate, Council asked City Manager Walker to discuss an annual PILOT payment agreement with MAWA. Until that agreement is worked out, Council is willing to authorize a one-time transfer from the Rate Stabilization Fund to the General Fund in order to balance the budget without raising taxes. Council believes that the County will raise taxes so they are firmly against raising City taxes as well. Councilmember Donahue would 4

5 like to start discussing revenues and expenditures beginning early next year so the City does not run into this problem again. Council also believes discussion needs to begin now concerning 984 Water Street since Ainsworth is vacating in Spring Adjournment With no further business to come before Council, Deputy Mayor Mangilo-Bittner moved to adjourn. Councilmember Roha seconded and the roll call was taken to adjourn at 8:46 p.m. H. LeRoy Stearns, Mayor Andrew J. Walker, City Clerk 5