Loading...
PH Minutes 2011-09-12PRATTVILLE CITY COUNCIL PUBLIC HEARING MINUTES MONDAY, SEPTEMBER 12, 2011 6:00 P.M. CALL TO ORDER: The Prattville City Council met in public hearing on Monday, September 12, 2011 at 6:00 p.m. in the Council Chambers at City Hall. Council President Mike Renegar called the meeting to order. Roll was called and Councilmen Argo, Miller, Boles and Fank were recorded as being absent. Council President Renegar announced that Councilmen Argo and Fank are on their way from out of town, Councilman Boles had a family emergency and Councilman Miller is representing the State of Alabama at a Public Health Conference in Washington, DC. President Renegar stated that the time limit would be five minutes per participant. Council President Pro Tempore Fank arrived at 6:06 p.m. AGENDA TO RECEIVE PUBLIC COMMENT ON THE PROPOSED FISCAL YEAR 2012 BUDGET. Ms. Jon Lee Finnegan, 211 Deer Trace, Prattville, AL, had a number of questions, as follows: Page 1, Corrections Fund of $60,000.00 and the County Ambulance contract for $250,000.00; there was no funding for this in 2010, and wants to know what this is for. Page 2, Park Income, Youth, was $58,000.00 less than the 2010 budget and the Leisure Services budget was increased $6,000.00; Adult Park Income was $10,000.00 less than in 2010, but $500.00 increase in Leisure Services. Page 3, Miscellaneous Income $197,727.00 less than 2010, why? What is OFS? The lease proceeds are $205,000.00 less, why? Executive salaries and wages are $20,700.00 more than in 2010; fuel and oil is $12,000.00; insurance is $15, 400.oo more, why? Legislative: Education is $4,000.00 more; lodging and meals is $9,000.00, while there was none in the 2010 budget. Travel was $6,000.00 more. The last work session stated meals and travel is $6,000.00 but has been changed to $7,000.00. Finance: Trustee Fee Debt Service is $10,750.00 more; what is that? Interim Finance Director, Doug Moseley, stated that it is the fee paid to Regions Bank for bonds that they hold for the City. Audit Sales Tax: $5,000.00 more; Legislative Services $7,500.00 more; Miscellaneous Contract Services $40,000.00 in Work Session budget, and has been changed to $12,000.00. Page 7, City Clerk: Advertising: $3,000.00 more; Insurance has increased $13,000.00. Human Resources: Insurance is $16,500.00 less; Education: $600.00 more; Meals & Lodging $450.00 more; lodging, training & travel $5,000.00, while there was none in 2010. Judicial: Hospital Insurance is $19,375.00 more; Meals, lodging, training & travel was $4,300.00, while there was none in the 2010 budget; Miscellaneous Contract was $23,500.00 less. Information Technology: Total Personnel cost through Workman’s Comp is $85,000.00 less in Work Session budget compared to the current proposed budget; Telephone BellSouth was $192,000.00 in the 2010 budget, and is now $0; Telephone is $261,300.00 but there is no telephone listed in the 2010 budget, showing a $69,300.00 increase. Equipment Maintenance is $30,840.00 more and the Capital Outlay of $20,000.00 in the Work Session budget is not in the IT budget. Pages 11 and 12: Vehicle Maintenance, Parts and Stock are $340,000.00 less and Capital Outlay of $22,000.00 is not in this budget. Page 13: Debt Service: Contractual Agreements: In the Work Session budget it was listed as $85,000.00 and is now $955,000.00. Engineering: How many employees were incorporated into this Department to result in an increase of $218,000.00; Storm Water is $140,000.00 more; Engineering Drafting is $22,500.00. Page 15: Planning & Development: Street and Lights $59,000.00 more; Miscellaneous Contracts is $475,000.00 more. Police Wages: $178,356.00 more than 2010, but is $72,033.00 less than the Work Session budget; Workman’s Comp is $22,000.00 less than the Work Session; Fuel & Oil is $45,000.00 more; Uniforms $10; Hazardous Cleanup was not in the 2010 budget; Equipment Maintenance is $35,000.00 more. Fire: Wages increased $20,580.00; Retirement is $30,000.00 less than the Work Session. Annual Physicals are $18,000.00 more; can the CareHere clinic be used for that? Page 23: Performing and Creative Arts: $10,000.00 for fireworks, under the impression that was budget neutral. City Services: $25,000.00 more for the E-911 and the Library. E-911 Board voted to increase fees for residents and businesses. Community Initiatives: The Alabama League of Municipalities is $6,000.00 more; the Airport is $10,000.00 more; the Autauga Emergency Management is $25,000.00 more; the LPGA is $240,000.00, are we paying in arrears? Where are the in-kind services listed? The Billboard contract of $44,000.00 per year, is $10,000.00 the last payment? Electricity: Finance is $20,000.00 more; Planning is $500.00 more; Urban Management is $36,000.00 more; Police Department is $1,500.00 more; the Fire Department is $10,000.00 more; and Leisure Services is $80,000.00 more. Council President Renegar commended Ms. Finnegan for the time spent combing through the budget and asked her to type her questions and submit them to the City Clerk in order to get her questions answered. Mr. Jerry Cimis, 141 N. Chestnut Street, Prattville, AL, the gas tax revenue is listed as $900,000.00, with a $.04, $.05 and $.07 gas tax which are usually restricted to roads and road maintenance. Also, since the City owns the Prattville AG Food Store, where is the rental income? The Planning Department: Dilapidated Houses is listed as $15,000.00; where is the income from the assessments placed on the property? Weeded lots: $10,000.00 is listed, where is the income from the assessments placed on the property? Planning: $1,500.oo for Education needs to be increased for training Planning and Zoning Board members. Legal: $2,500.00 needs to be increased for pending and upcoming legal cases. Community Initiatives: there are a number of non-profits listed, where is the income from rental listed? Mr. Cimis stated that he would send his list of questions for a response. Ophie Hardin, 514 Weatherby Trail, Prattville, AL, thanked the Mayor for posting the proposed budget on the City’s website. Ms. Hardin questioned the liability insurance cost of $656,400.00 and legal services, have RFP’s been sent and when? How many respondents were there and when will we repeat the process? Ms. Hardin asked if there could be a moratorium for education, lodging, meals, travel, training and development so that any training related expense would have to be approved by the City Council. Mayor Gillespie responded by saying that just because that funding is in the budget, doesn’t mean that it will be spent. For example, the $10,000.00 for fireworks that was budgeted last year was not spent, it was paid through donations. Ms. Hardin expressed her appreciation to the Council for their efforts in getting the city out of the current financial difficulty. Mr. Carl Viars, 139 Till Street, Prattville, AL, asked about the $150,000.00 allocation to the Chamber of Commerce, what does allocation mean? Council President Renegar stated that it is funding that has been allocated for a contract for services or services rendered, doesn’t necessarily mean that it will be spent. Clark McLean, 1770 Tara Drive, Prattville, AL, had several questions, as follows: Executive: nothing listed for contingencies or capital outlay, are there any plans for any reserve funds? Mayor Gillespie stated that Enterprise funds could be used to make those departments more accountable and easier to show how the funds are being spent. The City is trying to get the Accounts Payable paid down. Mr. McLean addressed Sanitation: Salaries and Wages is listed at $829,000.00 and insurance is listed at $228,000.00; why is it so much more than other Departments? Wastewater: Capital Outlay: $130,000.00 listed, should be more. Sales tax & Lodging tax: who accounts for all of the tax rebates? Who is monitoring this? Mayor Gillespie reported that the city is still waiting on the completion of two studies for Wastewater, there is further reorganization to be done, and it is possible that residential fees will decrease, but business fees will likely increase. Council President Renegar stated that the taxes are paid to the city, and then the city pays the rebates to the appropriate agency. Interim Finance Director, Doug Moseley, reported that the city is on track, the taxes come in one month and the city pays the rebate the following month. Council President Renegar stated that the city is concerned with paying off each of the obligations. The city is kept informed on a monthly basis of the financial situation. Council President Pro Tempore Fank stated that the city is briefed monthly at the second council meeting of the month by the Finance Director. Mr. McLean questioned the following: Planning & Development: Miscellaneous Contract Services: $715,000.00, what is this for? Fire: Training & Development: $30,500.00, don’t we do our own training? E-911: $75,000.00 budgeted; asked to look closely since their fees are going up. Prattville Airport: is not a commercial facility, should be privately funded. LPGA: $240,000.00 budgeted, expressed his concern that this is unnecessary. Fire Chief Brown explained that Regional Training is done here; however, there is a requirement of 240 hours per Firefighter per year and also EMS training to maintain their credentials. Training has already started and there will likely be a $30,000.00 surplus in this budget. Mr. Lonnie Brand, 258 Teri Lane, Prattville, AL, asked if the council has discussed Councilman Argo’s comments during the February meeting regarding that there is no legal requirement for the city to have a budget. Why do we need a budget? Council President Renegar suggested that a defined budget is needed to monitor revenues and expenses. Councilman Striplin stated that while the city may not be required to have a budget, there’s also not a law prohibiting the city from having a budget. He further stated that there is a need for cash flow statements, and Interim Finance Director, Doug Moseley, is working towards that. Mr. Brand asked about the bridge loan for $1.5 million, and when is the next bond payment due. Mayor Gillespie responded by saying that it is for the $3.1 million bond payment due in November, but hopefully it will be less than that. He further commended the Fire Department for transferring a vehicle to the Police Department. Mr. Brand expressed his concern with the current budget taking six months to get adopted and asked if the budget will be voted on at the next meeting. Council President Renegar stated that there are still several concerns with the proposed budget and it may not be adopted at the next meeting. Mr. Brand further expressed his concern with the previous budget; whether the council had read the budget, and hopes that they are being more thorough with this budget. The Mayor proposed an earlier budget with a five year plan to include a $.01 tax increase for two years and then reducing it to ½ cent for three years. The current budget proposes extending the $.01 increase through September, 2012. Is it possible for a $.01 tax increase to be adopted every year? Council President Renegar stated that he does not support a yearly extension and wants to see the tax increase end. The Mayor is requesting the extension in hopes that the economy will recover in that timeframe. Mayor Gillespie stated that it was never intention to raise taxes, but it is needed for five additional months. Mr. Brand stated that comments on the city’s facebook page by Mr. Troy Hagan asked what are all the bond payments he keeps hearing about and what are the payments for. The response by the city on facebook encouraged him to attend this Public Hearing to ask the question so it could be answered publicly and be recorded on video. He has been told that the debt is for a shopping complex that didn’t develop as planned and didn’t produce the revenue expected. He further asked about Mayor Gillespie’s comments that the budget that has been presented is not his preferred layout; are there other options for a budget? Council President Renegar responded by saying that he or Mr. Moseley would prepare a list of the debt service and provide to him. An investment was made for economic development, and unfortunately the economy tanked and didn’t provide the tax revenue the city anticipated. Hopefully, since the shopping center has been acquired by a different entity, the shops will become occupied and we can dig out within the next 12 – 24 months. Mayor Gillespie reported that he is working with Mr. Moseley to keep the city website updated with financial information. He further stated that the budget isn’t his preferred format, and that Councilman Striplin has been looking at other city budgets. Councilman Wood stated that Mr. Argo’s comments regarding the legal requirements for a budget that Mr. Argo was possibly stating his own opinion. Jon Lee Finnegan returned to the podium to ask if the proposed $.01 tax increase through September, 2012, will be extended. Council President Renegar stated that the current legislation dictates that the increase expire April 30, 2012. However, the Mayor is asking the council to consider extending it through September, 2012. Ms. Finnegan asked about the Sanitation Enterprise Fund, while she understands the need for Wastewater, what if money keeps coming in for Sanitation, will the fee be reduced? Mayor Gillespie responded that the Enterprise Fund will hold the city more accountable for dollars spent. The fees could be reduced when the trucks and equipment are in much better shape. Mr. Carl Hawthorne, 704 Emerald Drive, Prattville, AL, expressed his dissatisfaction with council members not being present at recent meetings and stated that if it is not important for them to be here that maybe they should find something else to do. He asked if the public is going to get an opportunity to hear from each of the council members individually on their opinion of the tax increase extension the proposed layoffs. He has heard that the city may be closing a fire station, some want to lay off 30 employees, some want to lay off 15 and some don’t want to lay off anyone. While he understands that some drastic measures may have to be taken, the tax increase was needed. He asked if a budget will be adopted by October 1st. He wants the city to adopt a budget and move on. ADJOURN: There being no further business to come before the council, the public hearing was adjourned at 7:08 p.m. APPROVED: ___________________________ Stephanie J. Southerland City Clerk ___________________________ Michael E. Renegar, President Prattville City Council