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Minutes 2017-09-12 Work Session 1 PRATTVILLE CITY COUNCIL BUDGET WORK SESSION MINUTES SEPTEMBER 12, 2017 5:30 P.M. The Prattville City Council held a work session on Wednesday, September 12, 2017, at 5:30 p.m. in the Council Chambers at City Hall. The meeting was called to order by Council President Striplin and all Councilors were recorded as being present. The purpose of the work session was to discuss the proposed FY2017-2018 budget. Mayor Bill Gillespie and the Mayor’s Executive Assistant Lisa Byrd were recorded as being present, as well as the following department heads: Court Magistrate Charlotte Adair, City Engineer Robby Anderson, Fire Chief Terry Brown, Parks and Recreation Director Kellie Cook, City Clerk Cathy Dickerson, City Planner Joel Duke, I T Director Jose Figueroa, Public Works Director Dale Gandy, Finance Director Daniel Oakley, Police Chief Mark Thompson, and Human Resources Director Lisa Thrash. The following were also present: Assistant Police Chief Diane Thomas, Captain Pat Kowalczyk, and Municipal Judge Louis Colley. Visitors included Jon Lee Finnegan and Dr. Jerry Cimis. Council President Striplin opened with the following statement: Welcome to the Council’s Work Session on our proposed 2017-2018 budget. The proposed budget was posted on the City’s website on Monday. I express appreciation to all department heads and their personnel involved in helping the Council prepare for this meeting. Department heads were asked to provide their written comments to the Council concerning their respective department budget. Appreciation is also expressed to the Mayor and to Mr. Oakley, our Finance Director. They have done a tremendous job in drafting this budget within the constraints they had. Sometimes when we are told no, we fail to appreciate the impact of the decision on the entire family or business organization. While we might not like nor agree with the explanation, rational of the decision maker is offered. Three things you should know: 1. As in years past, this budget is balanced. Due to numerous requests the proposed budget reserve is very tight. In fairness to recommend an increase in one work area, you will also need to recommend the off-setting work area to be decreased. 2. As in prior years, some accumulated reserve funds will be spent on their intended purpose. 2 3. Virtually every department is dependent on the general fund for some level of support and the general fund depends on sales tax collections for a high percentage of its revenue. As sales tax revenue decreases due to on-line sales, you should expect your budget in future years to be reflective of that lost revenue. The Interim Report on Budget Reform, prepared by Joint Task Force on Budget Reform, which State Senator Chambliss co-chairs, reports: State sales tax revenue, as a percentage of total revenue, has been on the decline. In the 1960s, sales tax revenue collections represented 37% of the total revenue collected. Currently, sales tax revenue collections represent 2% of the total revenue collected. Effectively, during that time period, that is a 40% reduction. The cover story of the September/October issue of the Alabama Municipal Journal is “How Is the Digital Economy Impacting Your Municipal General Fund Revenues?” The League appointed a task force, with Tuscaloosa Mayor Walt Maddox as Chairman. Mayor Maddox said, “For the City of Tuscaloosa, 68% of our general fund is derived from gross sales, and we estimate we are losing $7 million annually in on-line sales. In reality, this problem goes a bit deeper, when you realize that business license fees are based upon local gross sales. As you can see, Prattville is not the only city experiencing reduced general fund revenue due to internet sales. “Shop Prattville First” is no longer considered just a seasonal Chamber of Commerce campaign slogan; it is potentially a solution to part of Prattville’s future budget challenges. The Council discussed the proposed budget by department. The following budget items were specifically discussed: • Human Resources Department o Drug Testing. • Information Technology Department o Pagers/Cell Phones. • Urban Management Department o Capital Outlay/Vehicle Rotation Plan. o Reduction in Salaries and Wages due to moving to expenses to Public Works Department budget as a result of reorganization due to storm water needs. • Vehicle Maintenance Department o Reduction in Operations due to moving Education, Lodging, Meals and Travel to the Public Works Department budget. • Public Works Department o Increase in budget due to implementation of Storm Water Program. The Assistant Public Works Director/Storm Water Coordinator is Jonathan Larkin. 3 o Salaries and Wages increased as a result of reorganization of departments. • Police Department o Requested increase of 2 new officers. o Currently at 81 officers, request total of 83 officers. • Fire Department o Level funding of firefighters. o Currently at 86, which includes 9 civilians. • Parks & Recreation Department o Propose fencing to fence splashpad and pool into one unit and charge admission. Lifeguards will be able to maintain and oversee splashpad as well as pool. o Swing set for Tom Miller Park in budget? o Do fees from softball and soccer offset costs? o Budget will include cost breakdown by park/facility, including electrical, water, and gas expenses. o Opportunity to upgrade pool? o Research lighting path alternatives to assist with cost of electricity, especially at Jasmine Trail Park. o Vandalism budget for parks/facilities – accounts for material costs, does not include City labor costs. o Program Director brings a new program/workshop/class to the table each quarter. Currently considering flag football program. • Performing and Creative Arts Department o Addition of part-time Program Assistant to reduce overtime hours. • Community Initiatives o 911 costs are budgeted in the Police and Fire Departments by percentage o Autauga-Prattville Public Library has level funding, but the City has budgeted for a new roof and for additional maintenance costs. • Improvements to the Highway 31 Corridor • Fairview improvements, including turn lanes ADJOURN: There being no further business to come before the Council, the meeting adjourned at 6:15 p.m. APPROVED: ___________________________ Cathy Dickerson City Clerk ___________________________ Albert Striplin, President Prattville City Council