Council Budget and Finance

Summary

Meeting Overview

The Budget & Finance Committee met on March 19, 2013, at 1:00 p.m., with Ellinger presiding. The committee addressed five agenda items during the session, including approval of the Committee Meeting Summary and a motion to temporarily suspend fire equipment from service through brownouts. One motion was voted on during the meeting. The committee heard 13 public comments and received an informational presentation on the Monthly Financial Report. Two items—the Fund Balance Discussion and Items Referred to Committee—were deferred for future consideration.

Attendance

Present: Ellinger, Stinnett, Gorton, Kay, Ford, Beard, Farmer, Scutchfield, Mossotti, Henson, O'Mara, Lueker, Barberie, Lane, Mayor Gray, Chief Jackson, Assistant Chief Hoskins, Chief Kiltner, Dr. Kay, and Dr. K.

Absent: Myers

Late: None

Votes and Decisions

Firefighter Recruitment and Overtime Funding 1:41:56

Council Member Massadi moved to approve $637,530 in overtime and $42,000 in staffing for two firefighter recruit classes to eliminate fire station brownouts by November 2013. The motion passed by voice vote with all council members voting in favor.

The following council members voted for the motion: - Council Member Massadi - Council Member Ford - Council Member Rosati - Council Member Gorton - Council Member Kay - Council Member Beard - Council Member Farmer - Council Member Scutchfield - Council Member Mossotti - Council Member Henson - Vice Chair Stinnett - Chair Ellinger

No council members voted against the motion, and there were no abstentions.

Conditions and Next Steps

The approval included the following conditions: - A budget amendment will be submitted for second reading on April 11, 2013 - The hiring process will proceed immediately, with a list of 60–71 candidates to be provided on Thursday

Budget and Financial Actions

The meeting included several appropriations and fund transfers totaling approximately $4.7 million for fire department operations and urban services.

Fire Department Appropriations

The Fire Department received three separate appropriations:

• Overtime pay: $637,530 appropriated to eliminate brownouts in fire department staffing
• Safer Grant staffing: $42,000 appropriated for staffing 35 firefighter recruits funded by the Safer Grant
• Fiscal year 2014 recruits: $1.5 million appropriated for funding 30 new firefighter recruits in fiscal year 2014

Fund Transfer

A $2.5 million amendment was approved to transfer funds from the General Fund to the Urban Services Fund.

Public Comment

1:09

Thirteen members of the public spoke during the comment period, with all remarks focused on the Homelessness Commission Report.

In Support of the Report

Ten speakers expressed support for the Commission's recommendations:

• Harry Richart spoke in favor of the report, supporting its recommendations for funding and implementation.
• Mark Davis emphasized the need for a comprehensive funding approach to address homelessness.
• Adam Jones advocated for funding the Commission's recommendations to improve housing and support services.
• Kate Savage highlighted the plan's potential to reduce homelessness through targeted interventions.
• Laura Babbage stressed the importance of immediate action to address the city's homelessness crisis.
• Rachel Childress called for a sustainable funding model to support housing initiatives.
• Jenny Puccini emphasized the plan's role in creating long-term solutions for homelessness.
• Mike Scanlon urged the council to act on the recommendations to improve community well-being.
• Janice James called for increased investment in affordable housing and prevention programs.
• Mary Heath highlighted the need for coordinated efforts to reduce homelessness.

In Opposition to the Report

Three speakers opposed the funding proposal:

• Ike Lawrence argued the recommended funding option was not fiscally responsible.
• John Kemper expressed concern about budgetary impacts of the proposal.
• Darlene Thomas stated the funding approach would strain city resources.

Contested Items

The March 19, 2013 meeting included two significant areas of disagreement among council members.

Fund Balance Allocation

Council members debated how to allocate $2 million in available funds, with a central dispute over whether the money should be directed toward an economic development fund or other priorities. The discussion reflected deeper concerns about equity and effectiveness. Some council members questioned whether an economic development fund would benefit the most vulnerable populations, raising concerns that the allocation might not address the needs of those most in need of support. This disagreement resulted in a split vote, indicating that council members were divided on the appropriate use of these funds.

Fire Brownouts

A heated discussion emerged regarding fire station brownouts that had persisted since 2008. Council members expressed frustration over the prolonged duration of these service reductions and raised concerns about the impact on public safety. The discussion also touched on accountability issues related to the extended brownout period. Council members emphasized the urgency of implementing a hiring plan to address the staffing shortages that had necessitated the brownouts, indicating that there was consensus on the need for action, though the discussion itself was contentious in tone.

Committee Meeting Summary

The January 29, 2013 Committee Summary was presented for approval 0:00. Key speakers on this item included Ellinger, Henson, and Beard.

The summary was approved unanimously by voice vote.

Monthly Financial Report

Bill O'Mara and Melissa Lueker presented the February 2013 financial report to the board. 0:00

Key Findings

The report highlighted significant revenue and expense variances for the period:

• General Fund revenue showed a $1.6 million shortfall
• Favorable expense variances totaled $5 million year-to-date
• Forecasting indicated a potential $6.4 million revenue shortfall by June 30, 2013

Outcome

This item was presented for informational purposes only, with no formal action required.

Fund Balance Discussion

The committee engaged in a detailed discussion of the fund balance structure, examining unrestricted, assigned, and unassigned balances. 20:56

Key Presenters and Participants

The discussion involved Farmer, O'Mara, Mayor Gray, Stinnett, Ford, Gorton, and Akers.

Topics Reviewed

The committee reviewed the $3.3 million unassigned fund balance and examined proposed reallocations across three areas:

• Economic development: $2 million
• Grant match: $1.34 million
• Fire overtime: $640,000

Outcome

The discussion was deferred, with a follow-up workshop proposed for April 2013 to allow for further review and deliberation on the fund balance structure and proposed reallocations.

Temporarily Suspending Fire Equipment from Service (Brownouts)

The Fire Department presented an accelerated hiring plan designed to eliminate brownouts by November 2013. 1:36:40

Plan Overview

The department's proposal included two recruit classes and $1.08 million in overtime costs to address the temporary suspension of fire equipment from service.

Key Participants

Chief Jackson and Assistant Chief Hoskins presented the plan, while Council Members Massadi, Ford, and Gorton participated in the discussion.

Action Taken

A motion to approve funding passed unanimously. The approved allocation included: - $637,530 in overtime - $42,000 in staffing

Outcome

The proposal was approved.

Items Referred to Committee

1:47:21

Several items were referred to the committee for future review and consideration. The items discussed included:

• Affordable Housing Trust Fund
• Homelessness Commission
• Financial Efficiency Ordinance
• Franchise fee discussions

Key speakers Ellinger and Schoeniger participated in the discussion of these referred items. The committee agreed to retain these matters for ongoing review rather than resolving them immediately.

Outcome: The items were deferred for future committee consideration.