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<br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE CHARLOTTESVILLE CITY COUNCIL WILL BE <br />HELD ON Wednesday, April 4, 2007 AT 5:00 p.m. IN THE Basement Conference <br />Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br /> Budget Work Session <br /> <br />BY ORDER OF THE MAYOR BY Jeanne Cox <br /> <br />BASEMENT CONFERENCE ROOM – April 4, 2007 <br /> <br /> Council met in special session on this date with the following members present: <br />Dr. Brown, Ms. Hamilton, Mr. Lynch, Mr. Norris, Mr. Taliaferro. <br /> <br /> Mr. O’Connell reviewed the following budget policy guidelines: transfer at least <br />3% of general fund operating expenditures to the capital improvement fund (maximum <br />reduction of $500,000) and do not replace ongoing revenues/expenditures with one-time <br />revenue/expenditures. Mr. O’Connell said that one cent on the real estate tax rate equals <br />$500,000. Mr. O’Connell reviewed the following staff recommendations to achieve an <br />additional two-cent reduction in the tax rate: reduce the Strategic Initiatives in the CIP <br />by $500,000; reduce landfill remediation by $300,000; reduce credit car transaction fees <br />funds by $100,000; and reduce the reserve for the City’s share of County transit <br />expansion by $100,000. Ms. O’Connell said it is thought that carryover funds from this <br />year can cover the landfill remediation, the credit card transactions fees funds will <br />continue to cover small charges, and the County transit route funding will likely only be <br />for a partial year. <br /> <br /> Mr. Lynch noted that the motion that was made and seconded was for a three-cent <br />reduction in the tax rate. <br /> <br /> Dr. Brown asked for an explanation of how the Strategic Initiative funds can be <br />reduced and not violate the policy to not fund ongoing expenses with one-time money. <br /> <br /> Mr. O’Connell said that the proposal is to use these funds for the $400,000 for <br />ADA improvements and $100,000 for emergency drainage projects as these projects are <br />one year only projects and would not require ongoing funding. <br /> <br /> Mr. O’Connell said that the County transit expansion is the only one with future <br />implications. <br /> <br /> Mr. Lynch said another possibility is that the City will receive additional funds <br />from the State transportation bill that could be used for transit. <br /> <br /> Dr. Brown said he thinks the proposal about the credit card transaction fee is a <br />good one as a lot of people get perks from using their credit cards for large items. <br /> <br /> Mr. Lynch said he thinks there is at least another two to three cents to cut. He <br />suggested looking at reducing employee salaries as they have been up 3 to 4% each year <br />plus market rate adjustments. He said the salary proposal with other adjustments really <br />amounts to a 5.5% increase. <br /> <br /> Responding to a question from Dr. Brown, Mr. O’Connell said there are three <br />parts to the pay proposal: $200,000 to deal with pay compression in the Police and Fire <br />Departments; $250,000 for particular positions where the City has had trouble recruiting; <br />and a 4% across the board increase for all employees. He said the average increase for <br />employees will be 4%. He said the entire amount is equal to 5.5% of payroll. He noted <br />that School employees will receive a 5.77% increase. He said he thinks it would be hard <br />to argue that City employees should not get a 4% increase. He said that Albemarle <br />County employees will receive a 4% average salary increase plus 3% adjustments to pay <br /> <br />