A bit of a preview of issues to come, some revealing of some issues that won’t ever get talked about at the council . . . .
Mayor, Bruer, Verveer, Rhodes-Conway, Clear, Clausius present, Sanborn absent.
I’m using my “week ahead” titles as a base for this post so I don’t need to re-look up the links. The agenda is here for the rest of the links.
PUBLIC COMMENT
One person, Steve Schooler from Porchlight on 7 & 8, they decide to wait until that item comes up.
PERSONNEL ISSUES
– More advancements for some staff in some departments. See items 1 – 4. [this process seems so totally random]
#1 – Clerical Position in IT Department – Alder Rhodes-Conway asks why this is the second reclassification of this position in 2 years (i.e. 2nd raise in two years). Staff starts to justify, Rhodes-Conway explains the question is more systemic. Asks how often positions are reclassified, staff explains its whenever the supervisor brings it up or the position is vacant. Rhodes-Conway asks if there is a less haphazard way to do this and about training. Staff says that they have training as part of the supervisor’s orientation and that with 2700 positions this is the only way to do this. [This is just crap. Some supervisors have been with the city for what seems like forever and there is no on-going training. So, some of them have probably never gotten any formal training and as a result, some departments get lots of reclasses, some get none. And I’m not sure that it’s only because of the supervisor and if they bring the issues up. There needs to be a better way to evaluate some of these positions! Just my two cents after having served for nearly a year on a committee that was looking at the personnel issues.]
#2 – GIS Specialist in Planning – Rhodes-Conway notes that there are multiple GIS Speciailists in many departments and asks how they work together. Apparently, according to staff, “they talk”. Staff explains that they could look at having one title across departments but that would take a study and they could do it. [But I didn’t get the impression that they would.] Rhodes-Conway suggests to Mayor and Department Heads that they try to look for synergies.
#3 & 4 – Combining the Warner Parks Facility Manager with the Pool Manager. Rhodes-Conway asks why? HR Staff say that Warner Park is busy in winter, pool is busy in summer. Kevin Briske from Parks was asked to join conversation – he reiterates and says the staff in the position did double duty last summer and it worked. Rhodes-Conway asked how they determined that winter was busy season at Warner. He says numbers of people using facility – more basketball leagues? That the Warner Park staff is experienced and can handle it and have extra staff in the summer due to MSCR. They keep talking about “levels of efficiency” as if those are the magic words people want to hear.
Rhodes-Conway says that this is the wrong direction to head for the Pool Manager only to work during the summer. Says the Warner Park Director needs to be more focused on Warner Park and that this will hurt the functioning of the Center. She is voting no.
Clear asks about the pool operations. Again “level of efficiencies” buzzwords tossed around. Staff says 2 of 4 Aquatic Supervisors returning from last year, that Brad (Weisinger, the Warner Park Facilities Manager) has experience and training from last year.
Mayor jumps in, defends his guy, says Kevin is good at finds “efficiencies”. Says the Council took the position that the Pool had to break even and this is one way to do it. And that they will try this and “figure out how it works” this year.
Kevin jumps back in and says that there are additional full time staff that will support the pool facilities manager.
Verveer asks the Mayor how the current budget picture works with the reclassifications – does the Mayor just approve them all?
Mayor says that he just approves them all. Says this has nothing to do with the hiring freezes, that HR staff does their job and if the person deserves the raise based on the merits, then its only fair since they are doing the work. [Right, so the people suffering by doing two and three jobs while the positions are frozen – it wouldn’t be “fair” to give them additional compensation???? Better rethink that answer Mayor.]
1 & 2 pass unanimously.
3 & 4 Rhodes-Conway votes no.
– Al Schumacher, Streets Superintendent gets rewarded with additional duties and additional pay – twice as much as Larry Nelson got paid to do the same job.
#5 – Giving Al Schumacher additional position that Larry Nelson used to have as the Public Works coordinator. Mayor asks if they want to “grill” Schumacher, “in fact encourages it.” [Supposed to be a joke.]
Clear asks why Al, is he the senior manager? Al Schumacher says Vandenbrook is more senior of the managers, but that he has been with the City the longers (32 years). Says he’s not sure why he was chosen.
Mayor says it was a hard choice, lots of good managers, thinks Schumacher did a good job with streets with the last two years with the snow. Says he’s the best choice among the good choices. Someone [Rhodes-Conway or Clear] asked about the extra money. Mayor explains that Larry Nelson got paid more because he was at the top of the scale and that Schumacher gets paid less as a base and so he’s getting more money for these additional duties.
Rhodes-Conway says that seems odd to base it on the base pay of the employee, not the job duties involved.
Mayor says Larry Nelson was under-compensated when he did the work. Says the base salary issue just bolsters his argument. Then lots of jokes start . . . blah, blah, blah, Vince Lombardi, football jokes, broken leg, hurry up approve before he changes his mind, blah, blah, blah.
Approved unanimously
– Reappointing Brad Murphy as Director of the Planning Unit.
#5 Passes unanimously with I think some side comments about how great of a job Brad does, but it was hard to hear.
PORCHLIGHT PROPERTIES
– Funding for Porchlight to purchase a house on the 300 block E Mifflin (right across the street from my house) and 500 block E Johnson St. (Funny, not a peep from our neighborhood, unlike Alder Kerr’s neighborhood.)
Rhodes-Conway asks for a brief explanation.
Steve Schooler from Porchlight explains that they owned a building on Henry St. for about 20 years, developer wants to demolish, they are making money on the deal, city shares in that appreciation and they wanted to find way to expand their program. They are going from 7 to 16 units. This is the same as they tried to do on Vilas Ave. He said they have $70,000 for rehab of the properties including some energy efficiency.
Bill Clingan also notes that the city has $400,000 in these properties and they were getting foreclosed on and if this didn’t happen that money would have to be paid back to the federal government. So, this is a good deal for the city.
Rhodes-Conway asks about energy efficiency and if a revolving loan fund to make energy efficiency improvements would help.
Schooler says that it might, but that the energy savings are really needed for the programs and if there were additional debt service that would make it difficult.
Clingan explains some properties need alot of rehab.
Schooler says that there were some energy efficiencies put into the building last time, that Project Home helped with some furnaces. Schooler reiterates that energy savings really need to go to the programs.
MOVIN‘ OUT
#9 – Movin‘ Out funding. No comment, passes unanimously.
LAW ENFORCEMENT MONEY
– How Dane County will spend nearly $1M in law enforcement stimulus funds. (Do you remember seeing a public hearing on this? I don’t.)
#10 – Rhodes-Conway asks about Drug Court, how is it working, how funded, how can we expand.
Police staff explain that Drug Courts were funded by Weed and Seed money, now this money and they are working with Community Services staff to figure out how to fund them. They say that this is one year money, essentially.
Rhodes-Conway expresses concern about on-going funding in the future and the expectation that the taxpayers continue to fund programs originally funded by grants.
Police staff say that they have told staff that this is one-time money and they are aware.
Claussius asks about traffic enforcement and if the stimulus money could be used for that? Staff says that JAG money is for one-time costs, likely items, not staff. She says they try to get traffic grants from the state to fund those activities
Verveer asks about DAIS money for Domestic Abuse and what that money will go for.
Police staff says they are expanding hours of existing staff.
Verveer asks about the Grant Assistance program.
Verveer compliments Terri Genin on her work over the years and say she deserves the additional help.
Passes unanimously.
METRO CAPITAL MONEY
11 & 12 – Capital Grant for busses. Passes unanimously without comment.
MONONA TERRACE ROOFTOP CAFE
#13 – Monona Terrace Rooftop Kiosk Project – increase $100,000 in Capital Budget.
Rhodes-Conway says first heard about it, please explain.
McMasters explains this is a permanent rooftop cafe. Open and operating at the moment. Had two donations – one from catering company, Monona Terrace Community Programs Inc, donated money – but after Capital Budget was approved. The project is already done.
Rhodes-Conway asks/goes back and forth with staff, if the project is complete, money donated to cover costs. Costs did exceed what was in the budget, so fundraised more money. The over run is covered by donations.
Clausius asks when it is open. Grand opening coming up in a week, hours are Tues – Sat 11 am – 8 pm. Say that so far so good with limited advertising.
VETERAN’S PARK
#14 Plaza and Purgola for Veteran’s Park – more dumb jokes . . . passes unanimously.
FIREWORKS
– Agreement for Elver Park fireworks.
#15 – Verveer asks how much money saved by moving from July 3rd to the 4th – someone off camera talking – was $50,000 now $18,500.
Bruer tries to make more jokes, they fall flat.
FIBER OPTICS FOR BOARD OF REGENTS
#16 – Board of Regents fiber options.
Rhodes-Conway asks if we maintain, and staff say city is getting $40,000 of work on Park St. and Rimrock.
Bruer with another joke that falls flat.
STORMWATER UTILITY BUDGET
#17 – Substitute Stormwater Utility Operating Budget – more jokes . . . much off camera so hard to hear.
REPORTS ON FINANCIAL STATUS OF THE CITY
– How’d the city do financially in 2008? $3.2M saved – remember those amendments I tried to make for where we underspend? Well, we’re pretty good at it, so all the handwringing we do is often for naught.
#18 – 2008 preliminary operating budget results. Still working on audited statements. They got it by email mid-May. Report in packet. Says numbers for budget are the amended budget.
Revenue – more in PILOT from Water Utility, State Highway aids was half million more than expected. Licenses and permits, permits under by $1.4M. Charges for services, Ambulance fees were up by $500,000 due to increased collection efforts. Investment income will be talked about more in a moment, $2M below what was budgeted. From $6M to $4M, due to interest rates allowed in the market. More revenue in TIF district, some of the money budgeted wasn’t spent, so our return was $2M more than anticipated in the budget. So, under by $139,000 in the end because of offsets by PILOT, State Highway aids, ambulance fees and TIF.
Expenses – All departments within their budgets except City Attorney and Human Resources. Year end resolution we took money from their benefits, they had taken money and it was the fault of the estimates, so it was no fault of their own. Streets was the third department over. Kept snowing through end of December, didn’t predict how much more it would cost. More jokes off camera. No blame to department head . . . more jokes. Says miscellaneous category of unallocated employee benefits. Significant under run and in the end, we had $3.24 under budget.
Nothing pointed out on balance sheet.
Brasser talks about the charts. Historical variance from originally adopted budget. Says we should ask how good the original budget is. It shows that historically we have had positive variances with a few exceptions. Its usually 1 – 4%, some over 5%. Generally speaking it is due to the weather. So in 2008 it was 1% or $3.1M which goes into the fund balance that can be applied to next year’s budget. Fund balance remains stable from one year to the next. Coming out of a year like last year, we can feel very fortunate with the snow and the economy.
Finaly chart is general fund balance as % of operating budget. Says unreserved, undesignated (amount available for emergencies). Target is 15%, we’re at 13.1%, so we’re slightly below the target but in good shape since we were predicting to be at 12%.
There will be a big report coming out soon.
Bruer asks something, can’t hear him. I think he’s asking to get the info to the rest of the council members. Bruer asks about self-insurance funds. Brasser says two fund, general insurance and worker’s comp. Says the first is improving, the second we often have to add money at the end of the year. Made progress, but still a deficit and we would like to shore that up if additional general fund balance.
Bruer asks about Room Tax – Brasser says didn’t bring details. Each quarter we have a report. Says 1st quarter down 12.7% for first quarter, first time in years he’s seen that. We saw something similar after 911, but that was a one time drop in travel. Room Tax has a fund balance, if the room tax stays at this lower level into the future, that would be a problem, but we need another quarter of data. So offers to come back with a report.
Bruer asks about Building Permits, says drifting into next item so they move on . . .
– And how bad is 2009? (Hint, $3M bad. Less in revenues and some over expenditures – take a peek to see where.)
Brasser says don’t have all the data, but this is where they try to id potential problems. Building permits are down, based on collections of first few months, could be short by $700,000 no real pattern here so hard to project. Fines and forfeitures seem to be up, increase of $300,000 expected. Investment income went from $6 to $4M and we budgeted $4.75M and based on first quarter, it could be more like $2M. So, $2.75M drop. Drop in interest rates is the issue again. Treasurer will talk about more in a moment. More jokes by Clear . . . State recycling aid is $111,000 less than budgeted. Closing of TIF districts last year had another $508,000.
On expense side, no police overtime additions needed, Clerks office has savings in elections costs $95,000, City Channel peg fees are not coming in at the level we were hoping. Not sure why, but that market is changing. Cable revenues are falling. Predicting they could be over budget (expenses) by about $30,000 (normally wouldn’t report that small number, but there is an underlying structural problem).
Clear asks when peg fees go away. Mayor says 2011.
Streets division, not snow, but sale of recyclable materials collected. With downturn in the economy, we got less money for the sale of recyclable materials. $1.25M loss for the city. Also, new state budget increased tipping fees. There is $115,000 more at the moment. Might be further update on that. Community Services, daycare assistance, if they project the commitments to date, they are over by $200,000. Director and staff are reviewing and trying to rectify. Contingent reserve. $1.2M and some has been spent and have $942,000 left to pay for these shortfalls.
Points to spreadsheet, net $3.3M, interest income on revenue and loss in recycling payments are the two major driving factors.
He notes a few other fund areas. Room tax fund, 1st quarter well below what was anticipated. Could also impact the general fund. Golf enterprise fund has been experiencing loss for the last couple years and expecting another loss this year. Parks staff working on it, but year to date we need to track this. Used to make money, market has changed. More jokes by mayor, rounds are up, rain is the big wild card says the Mayor. Charging sales tax now, used to eat it. Clear pointing out the obvious, more jokes. Parks took out positions and changed them to hourly positions. [Ugh, a big trend in that department]
Mayor thanks people, says that 2010 budget starts out $3M in hole, but state news is bad by $1M and worse news on tipping fees. So, its a tough picture for 2010. [FEAR, FEAR, FEAR!!!!]
Clear asks about the $6M swing, $3M positive in 2008 and $3M hole in 2009. Dean says yes, but only if this is the final result, but in 2008 almost every budget under by a bit and we can probably look at the historical chart to show that we have had a positive variance and so we can still expect to find those savings and Clear notes that we also have the hiring freeze. Brasser says its not the expense side that is the worry, its the expense side. Clear points out the revenue is largely out of our control. More jokes by Clear . . .
#20 Treasurer’s quarterly briefing on investments. Hands out updates.
Already heard the general themes. We can’t control some of these items. Mayor and others are talking as Gawenda is trying to explain and its very distracting. He says he has a few points. Level of return that we get and the rates we earn are volatile. in 7 years he was county treasurer, sometimes rejoiced, sometimes shortfall. He says our benchmark is 90 day treasury bills according to policy, but more practical benchmark is state local government investment pool. Smaller communities use that, so as a practical matter, we should do better. He has a chart that shows city v state. For the last couple years we have done better. Last half of 05 and 06 we lagged the state investment pool. Currently earning twice that amount. When look at monthly comparison, including the school district investments (which we also invest), says its the same rollercoaster, as months go on, reserves drop, so money we earn drops. Explains cash flow of taxes in first of the year and in the bump in August with second payments. Again compares to state investment pool, we’re 1% higher for May. We’re getting 3 times more. Trying to show the glass is half full. Thinks we might see higher rates at end of the year, but that won’t be when we have the cash. 3 months ago he had a 24 page report, now has 6 charts. Talks about 3 buckets of money – cash equivalence (money spending soon, keep it liquid) so lowest return, certificates of deposit we can earn more but not as liquid. Highest return on last second. [His phone keeps going off]. Return on each of the buckets has dropped. Final page, he explains he has done two things to improve returns. May shows cash equivalents lower, cuz trying to push more money into cd’s and bonds to get more return. Good as long as keep enough money in cash reserves. Says seen rates gradually increase, report to comptroller looks at average daily balance. Earning more at the end of May so seeing improvement. Market is seeing potential for economic recovery. 2nd derivative recovery, things are still getting bad, but at a slower rate. Recession may end 2nd half of the year.
Mayor asks about recession and unemployment rates. Says the unemployment rates in WI will start to see pick up in 3rd quarter 2010. Says people hiring have to be convinced things are getting better before they start hiring. So, that will lag a bit before there is a confidence to hire people.
Clear asks how county compares to city. Says that talks to county frequently, we are outperforming them. We have more dollars to work with and county treasurer is newer and more cautious in moving money.
#21 – The annual scareing of the alders, with the briefing on how bad the state budget is. No materials available.
Memo not in the packets [The Mayor’s office is the rock star in this department!]. Says bottom line impact is less $900,000 but early in process, both houses and governor vetoes may still impact. Levy limit largely did not change. Levy growth 3- 8%, gravitating around 6%. Payments for municipal services, police fire and garbage for state facilities, 1% cut in the program, about $90,000. Administration will stay at DOA in part due to our. Expenditure restraint program will be adjusted for loss in payments for municipal services. We get 80 cents for every $1 of expense. That short fall will be exempt from the calculations this year. Share revenue, governor recommended 1% and it became 3.5%. We were going to lose $325,000, but we can expect 1.1M and there were changes to the formula, so that is the best guess. RTA language remained in tact, change in board membership and opt out for DeForest possible. Transit aids, 2 -3% increase. Highway aids 1% cut turned into 2- 3% increase. Computer aids the same. Tipping fees is bad news. $5.90 to $13.00 per ton. So increase of $160,000 this year and $400,000 next year. Mayor clarifies that the $400,000 is over 2008.
– Update on stimulus money. You have the info, updated at every meeting. Some new JAG money $110,000. Water utility projects not funded. But they would have been loans, not grants. We are a solar city and we might be able to get some money there. So chances are good there. Early July groundbreaking for first stimulus money streets project. Mayor will blog further updates today on trip to Washington.
Clear asks about local share of projects that are new expenses due to the stimulus money. Brasser sees that you might see more next year, beyond the planning money for upcoming projects.
Meeting adjourned.
