COUNCIL RETREAT
The Council Retreat was held on January 30, 2009 at 9:01 a.m. with Council President Hogan presiding. Council members present were Mrs. Russell, Mr. McGlumphy, Mr. Slavin (departed at 2:20 p.m.), Mr. McGiffin (arrived at 9:10 a.m.), Mrs. Williams (departed at 11:30 a.m.), Mr. Salters, and Mr. Ruane. Mr. Leary was absent.
Council staff members present were Mr. DePrima, Mrs. Mitchell, Mrs. Townshend, Mrs. Tieman, Mrs. Clendaniel, Mrs. McDowell, and Mayor Carey.
AGENDA ADDITIONS/DELETIONS
Mr. McGlumpy moved for approval of the agenda, seconded by Mr. Slavin and unanimously carried.
INTRODUCTION
Mr. Deprima, City Manager, introduced Mr. Dave Hugg, Smyrna Town Manager, and advised members that he would serve as facilitator for the Retreat.
Members discussed the current economic conditions and agreed that the budget, and the implication of the budgetary constraints, should be the primary focus of the Retreat.
WHY ARE WE HERE?
Mr. DePrima explained that the prioritization process will provide staff direction for development of next year’s budget, guide the City Clerk in drafting the strategic objectives for Council, and guide other departments in the development of their strategic objectives. Mr. DePrima explained that they would:
• Validate Vision, Critical Success and Mission.
• Review progress since the last retreat.
• Validate current and pending initiatives.
• Express and prioritize new ideas and initiatives.
• Discuss budgetary goals.
WHERE HAVE WE BEEN? - IDEAS MADE REAL
Ideas from the recent past that became reality.
• Centralized Customer Relations Tracking
• Revenue Forecasting Model
• Water Impact Fees
• Blue Light Safety Program
• Regularly scheduled (focused) Council Workshops
• Economic Development Office
ARE THESE STILL VALID?
Vision
The City of Dover is a place where people want to live! Through the team effort of its elected officials, employees, and citizens, Dover is a clean and safe community with a future of balanced growth and opportunity where all citizens are heard, enjoy a high quality of life, and diversity is valued.
Critical Success Factors
With these, we can achieve our Vision
• Customer Satisfaction and Effective Community Communication
• Employee Satisfaction and Effective Employee Communication
• Cost and Revenue Efficiency
• Improve Downtown and Surrounding Neighborhoods
• Citywide Safety
• Economic Development and Job Growth
Mission Statement
It shall be the mission of the City of Dover to advance the following policies and projects however and whenever possible:
Qualityof Life
• Establish a Regional Library in Dover.
• Promote Homeownership and Affordable Housing.
• Strengthen Property Maintenance and Enforcement.
• Support the Building of an Inner City Cultural Center.
• Implementing the Comprehensive Plan (new)
Responding to Mrs. Russell, Mr. DePrima stated that, given the current economy and the fact that the State’s budget did not appear to include funding for the library, it may be stalled. He stated that they could move forward with the funding that they have and hope that the State can contribute financially. Mrs. Williams noted that the State is in a better position than the City to recover economically due to their sports gambling revenue stream.
Mr. Ruane stated that the architect and committee are very well aware of the financial situation and the cost increase of 8% each year the project is delayed. He noted that they have State support (epilogue) that allows the City to be reimbursed by the State for costs incurred by the library. Mr. Ruane noted that they have the support of the community and the committee is working on a plan for funding and phasing the project. He stated that the size of the proposed library has been reduced from 52,000 feet to 48,000.
Mr. Slavin reminded members that the project was initially $6M over the anticipated amount and it was anticipated that $3M would be raised in the private sector. Responding to Mr. Slavin, Mr. Ruane stated that he still believes it is possible to build the library.
Mr. Ruane suggested changing the wording from “create” to “implement”, as indicated below in italics.
Infrastructure
• Maintain and Improve the City’s Infrastructure and Implement Brown Water Solutions.
• Implement a Plan to Secure Electric Generation for the next 20 years.
Economic Development
• Develop an Economic Development Strategy.
Mr. DePrima provided updates on the following:
Moving Forward
Current and Pending Initiatives
1. Create Economic Development Office (completed)
2. Implement the Downtown Partnership (completed)
3. Evaluation of PFP System
4. Implementation of Facility Space Plan
5. Cool Cities Initiatives
6. Brown Water Solutions
7. Reducing Cost of Medical & Retirement Benefits
8. Future Generating Capacity. Dover Energy 2030
9. Reducing inflow & infiltration
10. Silver Lake Management
11. Comprehensive Plan Update
12. New Library Project
13. E-government. More online services
14. “Pay as You Throw” Study for Trash Removal
15. Waste Water System Plan
16. Re-Assessment (revenue neutral - will publish new tax rate) (new)
17. Internal Control/Risk Assessment (new)
Mr. Ruane suggested that there be a very specific plan for revising the benefits package. He noted that the cost of paying Medicare Part B is $4M and it is a benefit that is not provided by many other employers.
Mr. Ruane reminded members that work on reducing the Inflow & Infiltration was delayed due to the cost of the project. He noted that the City pays approximately $1M to Kent County for Inflow & Infiltration, therefore, correcting the problem would be very beneficial financially to the City.
Mr. McGlumphy requested the City Manager to prepare a list of all projects that have been delayed or deferred as a result of the fiscal situation.
REMEMBER LAST YEAR? - TOP 5 RECOMMENDATIONS FROM 2008
Mr. DePrima reviewed the top recommendations of 2008 and what results, if any, have occurred as follows:
Votes Recommendations
8 Library Project (need funding).
7 New Vision for Planning/Permits (more efficient process).
6 Strategy to address Affordable Housing in Comprehensive Plan.
5 Review City funding of non-profit organizations.
5 Tax Office certification by IAAO.
4 Historic Preservation Initiatives - improve public relations, funding, incentives, transform from “restructure” to “opportunity”.
4 Focus, strengthen and support of cultural awareness.
Mrs. Townshend, Director of Planning and Inspections, advised members that Mr. Bill Neaton, Economic Development Director, has begun interviewing internal staff to begin to develop recommendations for streamlining the planning/permitting process. The next step will be to interview contractors, engineers, and developers to obtain their input.
Mrs. Townshend stated that they are evaluating residential zones to determine how they can promote diversity in housing within all of the zones by allowing more permitted housing types while maintaining the underlying densities.
Regarding focusing on cultural awareness, Mrs. Townshend stated that the committee that organized the Holiday Parade made a concerted effort to include all of the merchants on Loockerman Street and the activities extended to the Duncan Center.
2008 CITIZEN SURVEY RESULTS
Mr. DePrima reviewed the 2008 Citizen Survey Results which scored below 50, meaning they were ranked as poor or fair.
Core City Services Major Problem Areas
1. Planning & Zoning 1. Property Crimes
2. Drinking Water 2. Crime Prevention
3. City Parks 3. Safety Downtown – After Dark
4. Library
5. Recreation Facilities
6. Services to Youth
Quality of Life Issues
A lack of . .
1. Recreational Opportunities
2. Cultural Opportunities
Meeting recessed at 10:07 a.m. and reconvened at 10:28 a.m.
Mr. Hugg briefly discussed an article written by college professors entitled Navigating Through These Hard Economic Times - which advises that reaction should be to:
• Maintain Spending/Use Reserves
• Support Capital Projects that Improve Bottom Line
• Avoid Across the Board Cuts/Be Selective
• Avoid Eliminating ALL Vacant Positions
• Encourage Creativity/”Don’t Just Weather the Storm”
• Involve Citizens
WHAT ARE OUR PRIORITIES?
Members brainstormed to encourage idea fluency and to identify opportunities to improve the City.
Afterwards, each member was given the opportunity to speak on those matters that they felt should receive Council’s support. Members were given six (6) votes each to select their priorities. The results of this exercise are reflected on Exhibit #1.
Responding to Mr. Hugg, members stated that their top priority, given the “gray skies” environment, were as follows:
• Mrs. Russell - Safe/Affordable/Clean Housing and Jobs to increase self esteem of citizens
• Mr. McGlumphy - TERP - Taxpayer Economic Relief Plan - Evaluate Cost of Rate Increase, Reserve Funds, Carry-forward Funds - Minimize Impact on Residents.
• Mr. Ruane - To let people know that the City has to tighten its belt but will remain competent, transparent, and lines of communication will remain open.
• Mr. Hogan - Working with staff to provide a balanced, reasonable budget for the next year that minimizes pain to the citizens and staff yet provides a good, solid government.
• Mr. McGiffin - Develop a plan to address the various unfunded liabilities.
• Mayor Carey - Prioritize revenues and expenses to develop a balanced budget.
• Mr. Slavin - That Council understands that deferring maintenance on the infrastructure is a very highly risky thing to do. Don’t defer.
• Mr. Salters - To inform citizens of the availability of services and programs - transparency of government.
Mr. Ruane moved that, rather than voting on the list of priorities now, staff consolidate the list and provide it to members at a later date in a more descriptive format. The motion was seconded by Mr. McGlumphy and failed by a vote of two (2) yes and five no (Russell, Slavin, McGiffin, Salters, and Hogan) (Mr. Leary and Mrs. Williams absent).
Members recessed for lunch at 12:04 p.m. and reconvened at 1:10 p.m.
Responding to earlier questions, Mr. Ruane reviewed the current library funding as follows: $3.8M ($3.7M plus interest), 2007 State allocation - $783,000, 2008 State allocation - $0, 2009 State allocation - $348,000 + $4M. The total amount available to spend now is $5,131,000. Mr. Ruane advised members that legislative action would be required to eliminate this amount. He noted that, this year, the State Division of Libraries has requested $3.7M to make up the difference. Mr. Ruane advised members that the total library funding, in hand, is $8.9M and the last estimated cost was $22M for a 46,000 square foot facility (keeping in mind that the estimate has built in escalation factors).
Mr. Ruane suggested that a new financial plan be brought forward for consideration which would included other opportunities or strategies such as the City doing its own bond bill, with the understanding that we will be reimbursed, and consideration of charging County residents to use the library to pay for debt service so that it is not paid from City of Dover taxes. Mr. Slavin suggested that they may want to take the issue to referendum.
WHERE DO WE START? - THE NEXT BUDGET - WHAT DO WE WANT TO CONSIDER?
Mr. DePrima, City Manager, and Mrs. Mitchell, Controller/Treasurer, reminded members of the following budget considerations:
• There has been a gap between the Kent County Treatment Fee revenues and expenses resulting in a $1M deficit. As a result of recent dry weather, the Inflow & Infiltration (I&I) expense has decreased and the deficit has been reduced to $.5M. Several years ago, an increase in the sewer rate was instituted to buy down the deficit. The City Engineer has a plan to correct the I&I problem which includes replacement and relining of the pipes; however, it has been deferred due to budgetary constraints. Every year our clean rain water is sent to Kent County for treatment results in considerable annual expenses to the City. The Public Utilities Department has applied for stimulus funds for water and wastewater projects.
• Do we want to consider expanding the use of CDBG funds to include rental “rehabs” in order to provide safe, affordable, clean housing?
• Do we want to consider raising taxes, fees, and rates? Restructuring or developing alternative revenues? Spending down Reserves?
Mr. Slavin requested staff to take a very careful look at the revised revenues for FY2009 versus what they are going to be in FY2010. If there is a gap, what is it? He noted that the FY2010 Budget includes all of the automatic increases that have to be addressed, the one-time fixes that were needed for the FY2009 budget, health insurance costs, contract increases, etc. Mr. Slavin stated that this information would put them in a better position to decide whether to add or eliminate services. He also requested that, in the future, the budget information be provided earlier in the process.
Mr. Hogan suggested that they start considering budget predictions sooner. He noted that he is reluctant, in this economy, to talk about tax increases.
Mrs. Mitchell advised members that they have adopted a financial forecast for electric rates to be sure that they are covering the cost of service and they try to do the same with water/sewer. She suggested that this be applied to all of the funds to determine if the cost of general fund services are being covered. Mr. Hugg advised members that the Town of Smyrna has built in rate/fee escalators that are tied to the Consumer Price Index (CPI).
Responding to Mrs. Tieman, members provided their opinions regarding the budget and budget amendment process.
Mr. Ruane moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 2:24 P.M.
Respectfully submitted,
Kenneth L. Hogan
Council President
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Exhibits
Exhibit #1 - Retreat Prioritization List