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HomeMy WebLinkAboutMINUTES-1991-01-19-19910 �j 1 1 CITY COUNCIL January 19, 1991 A SPECIAL MEETING of the City Council was held on Saturday, January 19, 1991, at 9:08 A.M. in accordance with the Mayor's call of December 10, 1990 for the purpose of reviewing the proposed 1991-92 City Budget. ROLL CALL - PRESENT: A quorum being present. Alderman Brady Alderman Esch Alderman Washington Alderman Wold Alderman Nelson Alderman Wollin ABSENT: Aldermen Davis, Korshak and Morton TARDY: Aldermen Drummer and Paden Alderman Collens Alderman Rainey Alderman Lanyon Alderman Feldman Alderman Warshaw Alderman Rudy Alderman Juliar Deputy City Clerk Mary Morris announced that, in the absence of Mayor'Barr, nominations for the election of a Mayor Pro Tem were in order and that, in accordance with Council Rule 15.7, Alderman Rainey is next on the list of Aldermen by seniority who have not served as Mayor Pro Tem. Alderman Collens nominated Alderman Rainey. Seconded by Alderman Warshaw. Motion carried. No nays. PRESIDING: Mayor pro tem Rainey Docket 1-lA-91: Proposed 1991-92 Budget - Consideration of the proposed budget for the City of Evanston for the fiscal year 1991-92. A copy of the City Manager's recommended Budget was distributed on December 31, 1990. Budget review sessions have been scheduled for January 12, 19, and 26, 1991 at 9:00 A.M., and a Public Hearing on the Budget is scheduled for February 4, 1991 at 7:30 P.M. Alderman Feldman moved that the Council resolve itself into the Committee of the Whole for the purpose of further discussion of budget priorities. Seconded by Alderman Brady. Motion carried. No nays. The Council so met at 9:13 A.M. Acting City Manager Bruce Zimmerman called Council's attention to the Budget Memoranda that had been distributed to them: Memorandum #6: Multi -family inspections; Memorandum #7: Clerical positions in the housing code compliance program; Memorandum #8: Once -per -month street cleaning; Memorandum #9: Employee Assistance Program; Memorandum #10: Cleaning charges for parking lots and garages; Memorandum #11: Ridgeville Park District Tax Levy; Memorandum #12: Analysis of City staffing and programs; Memorandum #13: Municipal Service Center budget element; Memorandum #14: ALERT Newsletter and Memorandum #15: Hiring freeze. He said that additional memoranda are being prepared in response to questions on Parks, Recreation and Forestry staffing; the impact of changing the Preservation Coordinator from full-time to half-time and that those will be distributed next week. M -2- January 19, 1991 Alderman Washington called Council's attention to the budget memo from the Human Services Committee entitled "Fiscal Year 1991-92 Board and Commission Budget Recommendation." The memo indicated committee review of the budget and a vote of 6-0 to approve the budgets of the Recreation Board, Library Board, Mental Health Board, Arts Council, Ecology Center, Human Relations Commission, Commission on Aging and Farmers Market Commission, as adjusted by the City Manager, and included in the proposed budget. She said the committee recommended that staff work with the Commission on Aging to adjust that budget within the total for priority needs such as printing as identified by the Commission on Aging. Alderman Washington moved Council approval of the Human Services Board and Commission budget for Fiscal 1991-92. Seconded by Alderman Feldman. Motion carried. No nays. Discussion. Alderman Esch questioned the meaning of wage adjustments. Acting Manager Zimmerman clarified that the proposed budget does not include salary adjustments beyond the end of the current fiscal year, March 1, 1991. As in prior years, the City has included a general contingency budget effective March 1, 1991 for any salary and benefit assumptions or levels approved by the .Council effective March 1, 1991. Mr. Zimmerman explained that the adjustments in salaries are corrections of salaries initially submitted by departments when budgets were originally prepared. All salaries are reviewed by the Personnel Department to verify that the pay range and calculations are correct. The wage adjustments represent these corrections. He explained that the budget does not include a cost of living adjustment. Alderman Esch asked if it was possible for someone to receive both a merit increase and a cost of living adjustment. Acting Manager Zimmerman explained that salary schedules are part of the Civil Service Plan and that personnel are given merit increases based upon their performance. Merit raises are not automatic. He indicated it is possible to get a merit adjustment and a cost of living increase. Alderman Feldman asked Acting Manager Zimmerman if the percentage of people who are eligible for merit increases receive them? Is this a de facto raise? Is anybody.ever denied a merit increase? Acting Manager Zimmerman said that some employees are not eligible for merit increases because they are at the top of their pay range and that there are many positions like this. A memo will be prepared on this request. At this time Mayor pro tem Rainey directed the discussion to the budget in general and asked the Administration & Public Works Committee to begin the discussion by placing $75,000 on the board. Alderman Collens moved that $75.206 be placed on the board, a savings resulting from the changes in the refuse and recycling programs and that this amount be deducted from the levy. Seconded by Alderman Paden. Motion carried. No nays. Alderman Collens moved that $12,000 in savings from the Snow Emergency Towing, Program on budget element 925 be put up. Seconded by Alderman Washington. Motion carried. No nays. Alderman Warshaw described the dangers of a hiring freeze. She gave as an example of what would happen if a freeze were in effect now at the Levy Center. The program there would be completely disintegrated because of no Director or person working on programs. She said the impact of a hiring freeze results from arbitrary changes based on who retires or leaves. If cuts are needed, they should be done rationally. Alderman Brady concurred and said that since so many citizens have suggested this approach she asked Acting Manager Zimmerman to review the budget memo describing the impact of a hiring freeze. Acting Manager Zimmerman reviewed three ways a hiring freeze would impact the City from budget memo #15: 1. Positions would be eliminated without regard to program needs and service priorities. In effect, vacancies due to retirements and resignations would play a disproportionate role in setting program priorities and service levels. 2. Some departments would experience a disproportionate impact if they experience a relatively higher percent of vacancies than other departments. A hiring freeze on a City-wide basis could adversely affect departments which have little flexibility to offset the loss of a vacant position, while other departments which may be better able to absorb a loss experience no vacancies. 1 1 1 Li -3- January 19, 1991 )d 3. A plan to eliminate all positions as they become vacant could have a significant impact on the organization and services. To offset the elimination of vacant positions, the City would be required to consolidate positions, reassign tasks or restructure the organization of departments. While some of this could be desirable, there would be many times in which the changes necessary to adjust to the loss of the vacant position would result in inefficiencies and/or service delivery problems which did not exist when the position was filled. The elimination of a vacant position would not automatically produce efficiencies and cost savings. Acting Manager Zimmerman said that an alternative to a hiring freeze would be implementation of an anlysis of staffing levels based on service and program priorities. Personnel cuts could then be implemented in conjunction with service and program reductions approved by the Council. Mr. Zimmerman said that are between 45-50 resignations and retirements each year. Alderman Washington, in reference to the Fleet Services Fund Summary page in the 'proposed budget, questioned chargebacks for maintenance and depreciation. Acting Manager Zimmerman explained how any department with a vehicle has a maintenance and depreciation chargeback which produces revenue for Fleet Services; the inter -fund transfer system and how the fund balances vary from year to year. Alderman Washington also questioned what the training budget was for; questioned services to maintain other equipment; the contingencies budget for 1990-91 and 1991-92 noting that it is zero in the current year and $6,417 in the proposed budget. Acting Manager Zimmerman explained that for 1991-92, contingency is the cost of living adjustment and benefit levels for employees assigned to the Fleet Services element. It is always zero in the current budget and appears only in the proposed budget. Alderman Washington questioned why so much work is contracted out when there are 13 full-time positions. She asked why the City is contracting out so much work when there are so many employees in Fleet Services. Acting Manager Zimmerman noted that the city has over 300 vehicles to maintain and that vehicles that are in accidents or that need specialized work are sent out. Mr. Zimmerman said a budget memo would be prepared to answer Alderman Washington's questions. Alderman Collens referring to Memo #6 - Multi -Family Inspections, invited comments from members of the Planning 6 Development Committee on why the fee for multi -family inspections was abandoned. Noting that it was part of the David M. Griffin Report which made suggestions on what the City needed to do to pay the cost of services provided, she wondered why the suggestion to charge $12 per unit was not recommended since this meant the City could recoup the cost of the program, thereby permitting $163,000 to be taken off the tax levy. Alderman Warshaw stated she was opposed to the charge because it is shifting the burden from the general body to the multi -family owners who are already paying at twice the rate as single family owners. She said it isn't a service people look forward to nor a service they feel they are benefiting from. She said it is a service to the whole population to keep building standards up to code. To impose that burden isn't equitable. It will be passed on to the tenants. Alderman Brady said that discussions were held, prompted by the Griffin Report. She indicated that the committee had agreed there would not be a charge on original inspections, only a charge for reinspections. However, administration of such a program was not,practicable. To her knowledge, she, Alderman Brady is the only person willing to look at an inspection fee on original inspections, which.she believes should not be too high and could be based on the size of the building with a sliding scale. Alderman Drummer said this issue was raised at the CDBG budget hearings. He said that somewhere down the road, the City will have to recoup the cost of this service. He said that many people find a way to take advantage of any system; that we have to recoup at some level either inspections or the cost of going to court. He asked that if the judge rules against the party, does the City collect court costs? Robert Rudd, Director of Housing & Property Services Administration responded that for the most part the City does not recoup court costs in the past. City policy is to gain compliance, use what is collected for demolition or minor repairs. Alderman Drummer said that this is a system where violators never pay a penalty and that at some point, violators have to pay. OZ �v -4- January 19, 1991 Alderman Wold requested a budget memo on the mechanics of the following supposition - if the income tax surcharge were to be extended, how the money could be used directly for tax relief as opposed to being put into the budget. mayor Pro Tem Rainey also asked to include in the memo, the opinion of the City lobbyist on the possibility of the tax being extended. Alderman Paden requested a budget memo on the additional Parking Enforcement Officers that have been hired and what kind of funds they've brought in since that time, and whether the new ones are adding to the City financially or in any other way. Alderman Each said that should the income tax surcharge be extended, she would like see this money applied to the Police and Fire Pension Funds. She said that whether the City gets this money or not an evaluation process should be begun and the process changed to start building the funds up. She said the City owes 26.7 million dollars last year. She said she didn't think the citizens of Evanston understood the legal position the City is in. Alderman Collens addressed Budget memo #14 - the Alert Newsletter. She discussed the value of Alert and said it was an interesting and helpful tool in crime prevention. However, the information on reported crime and statistics is the important part to both citizens and the Police Department. The rest of it is -nice. She suggested that the information could be disseminated in another way, that we're spending a lot of money on four -pages to get that much information out to not that many people. She suggested eliminating Alert from the budget would result in $18,000 in savings to taxpayers. Currently, 14,000 copies are printed for six issues, which are distributed by citizen volunteers who do not cover the city. Highlights is printed on a similar schedule. 30,000 copies are being printed now, distributed by Earn and Learn and mailed thus reach many more homes than Alert. She suggested a one -page insert similar to the one done a few years back on bike safety could be added to Highlights making -possible dissemination of crime prevention messages and other important information. The estimates are: for $6,360 a page can be added to Highlights and still have a $12,281 savings on the General Fund Budget. Next week when CDBG is discussed, Alderman Collens will suggest that $381 1 earmarked for Alert be transferred to other programs. Her numbers are $8,000 for printing, a $5,000 salary savings and $5,641 now budgeted in Information Systems managment account for a new computer system for Alert. That is where she got the 18,641. $6,360 would be added back to increase the Highlights budget giving a net savings of $12,281. She praised the Police Department and Crime Prevention Committee for the publication but saos there is a need to economize in getting out this information. She suggested that members of Administration & Public Works, Residential Crime Prevention Committee and the Police Services Committee get together to figure out what the format should be. Alderman Collens moved to remove $18.641 from Alert budget and add $6360 to Highlights budget. Seconded by Alderman Brady. Discussion. Alderman Brady said that it seems somewhat frightening to think that in every issue of Highlights would contain two pages of crime statistics. She noted that it would seem like there was a stress on overinformation or the Way in which it is put down could be misleading to citizens. She said it is important for this subcommittee to be established to set up a philosophical discussion of how and when this important information is to be transmitted. Alderman Drummer clarified that the publication would still be called Alert and said he supported efforts to condense it and place it inside Highlights for distribution. He said that Alert has provided a comfort level to the community and worked well for the Police Department. Blocks clubs, groups and the Crime Prevention Committee see Alert as providing very necessary information. He pointed out that there were many suggestions made for inclusions and subtractions for Alert and that some of the discussion could be recovered for use by the subcommittee. Voice vote on Alderman Collen's motion. motion carried. No nays. Alderman Brady asked for the Acting manager's help on understanding Page xvii. Her calculations are with a zero percent increase in the General Fund, the City would have to reduce the budget by a little over $700,000. If that were applied to all funds it would be somewhat in excess of one million dollars. Right now our projected budget is based upon 4.7%, probably minus some of the items put up there. To go to zero, we would have to decrease spending by $713,118 in the General Fund alone. She asked him to concur or explain the figures. 61 -5- January 19, 1991 z 3 Acting Manager Zimmerman said Alderman Brady's figures were correct. It would require a $713,118 reduction in General Fund expenditures. If the City were to reduce the total levy for all funds to a no -growth amount, the reduction would be $1,078,000 which would result.iri reductions in Police and Fire Pension funding and debt service funding. Alderman Drummer reminded Acting Manager Zimmerman that he still had not received a memo on the temporary vehicle sticker. Acting Manager responded that the memo was ready in draft form, awaiting a legal opinion, and would be available at the next meeting. Alderman Feldman also reminded Acting Manager Zimmerman of his request for a budget memo on the effect on the City budget of no increase in employees salaries. Mayor Pro Tem Rainey requested a budget memo on any expenditures in the 1991-92 proposed Police Department budget that can be replaced by using some use of the 75 cent surcharge for Enhanced 911 that voters passed in November. Alderman Washington announced that on Monday evening, January 21, there would be a dinner and entertainment for Dr. Martin Luther King, Jr. at Fleetwood/Jourdain, and to call for a reservation. She also announced opening of "A Raisin in the Sun" was that evening at the Fleetwood/Jourdain Theatre. The Council discussed whether or not to meet on Saturday, January 26. Council by voice vote decided to omit the January 26 meeting because there would not be time to get all the budget memos prepared for that meeting. CITIZEN COMMENT: Bernie Schmidt, 2765 Crawford Avenue, said that the City needs to take short term steps that can be implemented for this coming budget year as well as steps for the long term. Referring to a handout entitled "Specific'steps to put Evanston on a diet," he recommended the following for the 91-92 fiscal year: 1. Across the board wage and hiring freeze for all City employees; keep salaries at 1990-91 levels. 2. Approve appropriations for all departments at 1990-91 levels, except those that call for reductions, and approve the lower amount. 3. Put a hold on the new Library Project and the Levy Center relocation. He said he is in favor of a new high tech library and the best for senior citizens, but Evanston citizens don't deserve their financial backs to be broken by expenditures. 4. Put a hold on the sewer program until finances are straightened out. 5.'Hold the line on water rates with no increases for 91-92. He said Evanstonians actually pay higher rates than the cities that we sell water to. 6. Use the funds from the sale of air rights on the Church/Chicago project for tax relief. Some long term steps would be for the new City Manager to propose a complete reoganization of city departments and staff with a free hand to suggest anything he would like . However the plan must contain the following results: a 5% reduction in city employees each year for the next four years; a 57. reduction in total appropriations for the next four fiscal years, but keep all City services to the public intact; privatize or let out for bid as many City services as possible. To get a different view of the reorganization plan, form a commission of Aldermen, businessmen, and citizens with some staff support to propose a similar type of reorganization, then submit both to the City Council to be used for groundwork to streamline the city government. Linda Buch, 1112 Hull Terrace, noted that Alderman had asked for citizen input on the budget and that there had been much more comment than in previous years. She said that with all the citizens and groups that want to comment, one hearing will not allow sufficient time for all the citizens to participate. She requested another hearing be scheduled. She said the multi -family Inspection Program with a charge to the owner was a great idea. She noted that Alderman Warshaw brought up many of the points the Evanston Property Owner's agree with. There are ways to cut the cost of the whole inspection program and she asked City staff to sit down with the Evanston Property Owner's Association which has specific cost savings suggestions. She said an Alderman is needed to ask staff to work with this group. She said the organization's 650 members represent half of the residences in Evanston. She complimented several Aldermen and encouraged them not to be brushed off with requests for information. She said six weeks is not too short a time to do a personnel anaylsis and that it should have been part of the budget proposal. She said that is.what businesses do. She said Alderman Esch's suggestion for a hiring freeze is an excellent suggestion - but the scenario presented by the Acting Manager would not be considered by business. It is not what citizens had in mind. It is part of management's job to look at the issue and redistribute jobs. She said a hiring freeze should not be rejected, but a part of an important process of getting to where we should be. ZZ -6- January 19, 1991 Bea Danielson, 2419 Payne Street, said home prices have fallen and that home buyers are scarce. Delinquent mortgages have risen. She said that some Council members and staff do not understand what is going on in the country. There is talk of helping fund first-time buyers, why doesn't the City help fund present owners instead of driving them out. She asked that residents of Evanston be given a break. She noted salaries of the President, City Manager, Governor and State Treasurer, the budgeted amounts for the City Manager's salary, the Finance Director and the Mayor of Chicago. Timothy Schoolmaster, 1454 Elmwood Avenue, pointed out to Council members on page 514 of the proposed budget - a proposed tax levy for the Police Pension Fund $1,614,629.00. This figure is required by law to be actuarially determined. He said this figure is not actuarially determined. This figure was found by taking last year's figure and increasing it by the finagle factor. He also alleged the previous year's figure was obtained in the same manner. The actuaries figure from the state is $3,156,000 almost twice this amount. He said you pay $8,500 for Hansen to do a similar study. Please take another look at this. For the first time in memory, the tax levy will be less than the annual payments to pensioners. When interest is added on investments, salary contributions (which are owned by the members) we get this figure of $3,747,101. Then go to page xii in white pages, we see $3,747,101 is the appropriation. But only $1,600,000 is from the tax levy. The rest is already owned by the members. Then go to page m20 in the blue pages. We have a $1,996,077 contribution to reserves for future payments, so if you are only going to levy $1,600,000 and you are putting $1,900,000 into the other, we've discovered magic multiplication. Part of the $568,000 are salary contributions. You've already done that in Police payroll. As an advocate and fidicuary of the* fund he asked Council to take another look at this figure. Alderman Collens announced that a Town Forum will be held on January 31 at Chute Middle School at 7:30 P.M. on "What is Public Education Worth?" Mayor pro tem Rainey asked for a budget memo explaining the use of the $1,400,000 in air rights revenue. Alderman Feldman asked for a response regarding any possible inconsistencies in the budget described by Timothy Schoolmaster. Alderman Nelson responded and said the City is in litigation on the matter and that the memo should be delivered as a privileged document. Alderman Collens requested a budget memo comparing the amount Evanston citizens pay for water to citizens in the communities that Evanston sells water to. Alderman Feldman said he had just received a brochure from ETHS announcing a program established between Northwestern University and ETHS called the Enriched Scholarship Program by which Northwestern University encourages people from ETHS to attend. He praised Northwestern University for instituting the program. Acting Manager Zimmerman requested clarification on one question in the proposed budget, a proposal to consolidate supervision in the Parks and Streets Departments. A complicated organizational adjustment, it is based on a resignation and some changes in staffing. He said the City needs to get going on it because of theneed for training. Alderman Nelson moved approval of this change. Seconded by Alderman Warshaw. Alderman Esch asked if services would be reduced. Acting Manager Zimmerman said no service reduction was anticipated. The new supervisory position would oversee the leaf program, snow removal in the winter and some other supervision of Park employees in the spring and summer. Motion carried. No nays. There being no further business, the Council adjourned at 10:25 A.M. MARY P. MORRIS DEPUTY CITY CLERK 19