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HomeMy WebLinkAbout07-11-2017 budget workshop City Council of Peachtree City Budget Workshop Minutes July 11, 2017 6:30 p.m. The Mayor and Council of Peachtree City met in workshop session on Tuesday, July 11, 2017,which was called to order immediately following the Special Called Meeting held prior to the workshop at City Hall. Attending: Mayor Vanessa Fleisch, Council Members Terry Ernst, Mike King, and Phil Prebor. Kim Learnard arrived at 6:37 p.m.,just after the FY 2018 budget workshop began. The purpose of the workshop was to discuss the proposed FY 2018 budget. City Manager Jon Rorie noted this was the second workshop on the proposed budget. The last workshop was a general look at the proposed budget, and there were questions and comments afterwards that would be addressed at this workshop. There would also be additional information regarding the Stormwater Utility, Fire Department ISO and station locations, and the Capital Improvement Program (CIP). Financial Services Director Paul Salvatore said the budget workshop always began with the City's mission statement: The Mayor, Council Members and Employees of the City of Peachtree City recognize that our primary responsibility is to provide high quality services to our residents. We are therefore committed to: • Ensuring residents a safe and healthy environment in which to live, work and enjoy leisure time • Providing consistency in the delivery of municipal services in a fiscally responsible manner • Responding in a courteous, timely, and effective manner to the expressed needs, concerns, and expectations of our residents • Promoting a sense of community through family oriented activities and citizen involvement. The budget was always designed with the City's mission statement in mind, Salvatore said. The City Manager's proposed budget was consistent with the mission statement and the City's budget policy: The City's primary objective is to provide a standard of budgetary performance that both staff and Council have endorsed and to provide budgetary decision making with greater continuity, reinforcing the City's core financial values and preserving them for successive staff and council. • Baseline and Service Level Funding The City's top program priority is to maintain existing service levels in all divisions and departments. A baseline should be set and serve as an agreed upon point of departure for subsequent budget discussions ie: a new facility or service. Any additional services above the baseline shall be fully funded at the time of the adoption of the annual budget and ongoing funding sources shall be clearly identified. Such ongoing funding sources must be either new or increased revenues or clearly identified expense reductions. General Fund Salvatore continued that baseline funding had been maintained in the General Fund, and it would be supplemented with funds from the six-year Special Purpose Local Option Sales Tax (SPLOST) that went into effect on July 1. City Council Minutes July 11, 2017 Page 2 The proposed General Fund revenues for FY 2018 were $34,878,273, which was $1,352,521 more than what was adopted for FY 2017, an increase of 4.03%. Proposed appropriations for FY 2018 were$34,466,930, a difference of$984,721 or 2.94%, over FY 2017. The Cash Reserve increase was estimated at $41 1,343, with a 35% Fund Balance. A 0.25 mil reduction was being recommended for the Maintenance & Operation (M&O) budget for FY 2018 if the tax digest increased by 7% or more. General Fund revenue sources included Ad Valorem Taxes (38.6%0, Local Option Sales Taxes (LOST, 20.8%) Other Taxes (13.6%), Franchise Taxes (7.6%), Other Revenues (11.5%), Fund Balance (-1.2%), Fines & Forfeitures (2.9%), and Licenses & Permits (3.9%). Other Taxes included Title Ad Valorem Tax (TAVT), real estate transfer, recording intangible, alcoholic beverage taxes, occupational taxes, and financial institution taxes. The estimated revenue from Other Taxes for FY 2017 was $843,300, and the actual revenue for FY 2015 was $1,251,965. The TAVT was declining each year, Salvatore said. FY 2018 General Fund expenditures included the "Big 3"-Fire/EMS (21%), Police (19%), and Public Works (16%)-followed by Buildings & Grounds (6%), Recreation &Special Events (7%), Library (3%), Administrative Services (4%), Financial Services/IT (5%), Debt Service (8%), Non-Divisional & Transfers (4%), Planning & Zoning (3%), Building Inspection (2%), and Executive Services (2%). Approximately 70% of the budget was for outright operations, another 8% was capital (debt service), and the remainder was for support services. Salvatore gave an overview of General Fund expenses by category, reminding those at the meeting that the City's job was to provide services. Expenses included Salaries (39%), Defined Benefit Pension (4.5%), Defined Contribution Pension (0.5%), Health & Other Personnel Costs (12%), Proposed New Positions (0.3%), Contractual Services (23%), Operating Supplies (9%), Recreation Programs (1%), Capital Outlay (2%), Debt Service (8%), and Non-Departmental (1%). Most of the General Fund expenditures fell under Police, Fire, and Public Works, Salvatore said. Governments were service driven, and the expenses were for providing services. Staff tried to keep a good mix of the in-house (salaries) and out-sourced services (contractual services), which were constantly evaluated. Salvatore went over the summary highlights of the proposed FY 2018 General Fund operating budget: • Estimated revenues of$34,878,273, or 3.43%increase ($1,353,000) • Appropriations of$34,466,930 or 2.94%increase ($984,000) • Cash Reserve increase of $41 1,343, or 1% • Street and path resurfacing-no change ($1,800,000 @ 3-4 miles and 9 miles of paths, does not include SPLOST funds) • $110,000 increase in Citywide building maintenance expense • Increase in permitting activity (-$200,000) • $146,047 funding for Fayette County Development Authority (FCDA) & $25,000 for Non- Profits (no change-Promise Place & Fayette Senior Services) • Total (net) Personnel Expense increase of $136,787, or 0.69% o $186,000 (1.5%) for merit increases-management discretion o $186,000 (2%) Cost-of-Living Adjustment (COLA) as of January 2018, if approved by City Council based on budgeting targets • Two new positions proposed (not included above): o Engineer-Full Time, $82,511 (all inclusive, $53,000 salary) o Bailiff-Part Time, $14,187 (all inclusive, $9,641 salary) City Council Minutes July 11,2017 Page 3 • Unfunded Positions-Public Services Director, Administrative Service Director, Police Captain, IT System Administrator, Code Enforcement Officer • $7,650 decrease in airport funding (down to $84,150, per agreement) • $426,000 increase in transfer to Capital Projects Fund (CIP) • $254,000 decrease in transfer to Debt Service Fund (two loans paid off) • 0.25 mil reduction in Maintenance & Operation (M&O) millage rate (assuming 7% digest growth) • Disaster Recovery/Business Continuity solution - $96,000 Personnel Rorie discussed the details regarding personnel expenses. Personnel expenses were tracked in a trend line. Over the last six-year period, salaries for full-time employees had increased 4%, an annual average of 0.67%. Health insurance costs had increased 22% (3.67%annually). Costs had gone up more in the private sector, and Rorie attributed that to the City's self-insurance program, which had a stop-gap measure so insurance could take over. The stop-gap kicked in when claims exceeded $90,000. The Defined Benefit Program had an annual 1.33% reduction over the last three years in expenses, which Rorie attributed to the change in replacing some full-time positions with part-time positions, the rise and fall of the stock market, and the change requiring full-time employees to contribute to the Defined Benefit Program. He pointed out that employees had not received a Cost of Living Allowance (COLA) since 2014. There had been some one-time adjustments since that time. The proposed budget included 2% for COLA (actual based on final Consumer Price Index) that would start on January 2018 only if budgeting targets had been met, and Council had approved it. FY 2017 ended September 30, 2017, and staff usually gave an unofficial unaudited review to Council in December. Merit increases were also included in the proposed budget, and those would be given at the discretion of management. Rorie explained that recognizing everyone equally was not merit,and he estimated approximately 20% of the City's employees went above the minimum expectations day in and day out. This did not suggest that 80%were only doing the minimum,and all employees were trying to provide services. Merit increases were needed to recognize top performers. Employees were consistently asked to do more, and Rorie wanted them to value their jobs as a career. It was that little bit extra that made a difference. Rorie said the City had exceptional employees. While the top performers were intrinsically motivated to do their best, not because of the money, they should be recognized. The City had not given merit raises in quite some time; they needed to be in place, but managed appropriately, Rorie said. Rorie referenced the uptick in permitting activity, discussing the request for another full-time engineer. Permits for new residences and residential alterations had increased. New commercial permits had increased a bit. Gerresheimer, Sigvaris, and Hoshizaki, all major employers in the City, had expanded. Land disturbance/engineering permitting had increased dramatically in FY 2017. A new engineer would help with review of the plans submitted and in getting the SPLOST projects ready. Getting the permits processed was not just an issue with the City's outsourced vendor, but also the internal process of running the permits through the staff members that had to sign off on them. Technology would help too, and staff was working on the digital part of the process. Building Repair and Maintenance The total budget for FY 2017 for building repair and maintenance had totaled $324,000 citywide. This had all been designated for systems, such as HVAC maintenance for all the units in the City ($186,000) and$135,0000 for things like fire and security systems, generators, dumpsters,and filters, doors, speakers, and more. City Council Minutes July 11,2017 Page 4 Rorie continued that the City's property schedule had 60 records and was valued at $45 million. There were 40 facilities with roofs, including City Hall, police station, fire stations, restrooms, picnic shelters, etc. Miscellaneous items totaling approximately $1.4 million included bleachers, field lighting, safety netting, fencing, and playground equipment. Very little of the "Facilities Maintenance" funding went to the actual facilities (roofs, sealant, etc.) As a result, the City had to borrow money to fix things, with facilities bonds taken out in 2011 and 2014 to make repairs. Projects in the 2011 Facilities bond totaled $3,121,568. Eighteen of the projects in the 2014 Facilities bond had been completed, and several more were either in progress or slated for FY 2017. The contingency had approximately$157,000 left. In the future, the City had to either bring on more debt or budget in advance for the repairs/upgrades/maintenance. The 2018 budget now had an allocation, which was kept going forward into the next five years, for the Building Maintenance Department. Larger items on the list were included in the CIP. This would let the City pay for ongoing maintenance items as they were needed, rather than incurring additional debt. Infrastructure Maintenance: Bridges, Tunnels, Road Resurfacing, Cart Paths City Engineer Dave Borkowski reported the City's streets were an $83 million asset, including up to 183 center line miles of roadways, and three million square yards of pavement. Those amounts would go up since the West Village roads were only about 20% complete. Borkowski discussed the typical pavement performance curve, saying costs to resurface roads significantly increased as pavement deteriorated. Roads had a life span of approximately 15 years. There was usually a 15% quality drop in the first six years. The biggest drop in quality occurred from six to eight years of age. Conversely,the cheapest maintenance cost per mile was during the first eight years. Keeping good roads at good quality maximized maintenance dollars. The life of roads with a pavement index of 80 or better could be extended three-five years when treated with HA5/Seal Coat. Borkowski reviewed the cost of pavement rehab per mile over time,saying that HA5/Sealcoat was $34,203 per mile on a four-year-old road. Waiting until the road was six years old and applying a two-inch mill/overlay was$157,203 per mile. That same two-inch mill/patch/overlay at eight years was$241,484 per mile;and a 10-inch full depth reclamation (FDR) at nine years would be$307,179. He added that the estimate costs were based on actual bid numbers the City had received recently. Rorie pointed out these cost estimates were based on supply and demand of the vendors and oil prices. The ability to get the projects done was also based on the availability of the vendors, and Rorie questioned what would happen to the price if the vendors had multiple projects. Borkowski said when the demand was up, the price was up. Rorie continued that between the General Fund ($1.8 million) and the SPLOST ($3 - $3.3 million) there would be $5 million annually for road resurfacing. Staff wanted to get the bids out early, so the City would be ready start the projects in March. The good roads needed to be "good" longer, and the longer they delayed, the more it would cost. Fire Department ISO Class 1 -What does good look like? Rorie noted this was a big "thought" issue, and the planning horizon extended five, 10, and 15 years out. The ISO rating was important, but was only one variable, in assessing the Fire Department budget. City Council Minutes July 11,2017 Page 5 Assistant Fire Chief-Operations Kevin Baggett discussed the Insurance Service Office's (ISO) Public Protection Classification (PPC), which ranged from one - 10. Class 1 represented exemplary fire protection, and Class 10 indicated the area's fire-suppression program did not meet ISO's minimum criteria. The City's rating had changed to ISO Class 1 in 2015, and the department continually tried to deliver the best service possible, Baggett said. The PPC rating was based on three categories - Fire Department (50 points) for staffing, training, geographic distribution of fire companies, apparatus and equipment etc.; Water Supply (40 points) for condition and maintenance of hydrants and a careful evaluation of the amount of available water compared with amount needed to suppress fires; and Communications (10 points) for the fire alarm and communication systems, including telephone systems, telephone lines, staffing, and dispatching systems. Insurance companies used the ISO rating in determining rates, Rorie said. Based on an analysis of insurance premiums on the City's average $290,000 average home value done by Fire Chief Joe O'Conor, an estimated $332,280 had been saved on fire insurance premiums by the owners of the 13,845 housing units in the City due to the ISO 1 rating of the Fire Department. The homeowner was responsible for contacting their insurance company. Rorie added that commercial/industrial facilities usually had sprinkler systems, so the ISO rating was not a big factor in their premiums. More Emergency Medical Services (EMS) were delivered in the City than fire services, Baggett continued, which was happening across the country. The breakdown on the types of services included EMS (72%,2784 calls),service calls (10%,399),false alarm/false calls (8%,298),good intent call (5%, 178), hazardous condition/no fire (3%, 122), and actual fires (2%, 73). The City had an aging population, as well as a lot of recreational services, which led to the increase in EMS calls, Baggett said. The average age of a patient was 60. The City had three assisted living facilities, and calls were numerous. Strokes, heart attacks, and trauma required specialized care and were time-sensitive, Baggett pointed out. There was a time factor for fires also, and fires that continued to burn without a sprinkler system or an interface with the Fire Department continued to grow for a set period. Baggett showed a map with the location of the four fire stations in the City that showed the response districts, noting that a large portion of the south end of the City needed better coverage. One of the assisted living facilities was located at the southern edge of the City. The community had an expectation of quick response, and rightfully so, he added. Fifteen firefighters were needed to safely fight a fire. The City had 19 personnel on every shift, every day. Any time a medic truck was out of the City, the force was reduced by two people. The balanced distribution of resources throughout the City allowed for the shortest possible response times, which prevented the loss of life in cardiac arrest and met the community's high expectations. The ability to quickly gather an effective fighting force of 15 firefighters allowed for the simultaneous performance of essential firefighting duties, including search and rescue, extinguishing fire, water supply, and command and safety. Baggett referred to the 2013 Matrix Study that recommended establishment of baseline and benchmark response time objectives as published by the Commission on Fire Accreditation International for suburban communities 90%of the time. The objectives were adopted by Council on December 19, 2013. Benchmarks were those times identified as a high standard and used to plan future efforts. Baselines were the standard that the Department committed to perform at City Council Minutes July 11, 2017 Page 6 and evaluate compliance. As baselines were achieved consistently, the standard would move upwards towards the benchmark goal. Call handling time for processing by the Fayette County 911 Center of an emergency call and the dispatching of fire response units had a baseline of 90 seconds no less than 90% of the time. Turn-out time was the time between dispatch notification and unit response,and the baseline was 90 seconds no less than 90% of the time. Travel time was the time taken from leaving the station to the arrival of the primary company to either a fire suppression or emergency medical incident. The baseline was six and one-half minutes (390 seconds) or less 90% of the time. Baggett noted that Fire Department really only had control over the turn out time. Travel time depended on the distance that had to be covered and getting there safely. Rorie asked if the Department with the four stations was meeting the baseline for travel time. Baggett said they were most of the time, but when a unit had to go outside of its response area because another unit was one a call, the time increased. Every second of delay meant more damage to a person or property. Rorie said the fire department classification and the water supply did not matter if they did not get the call in time. Call handling mattered, Rorie said,adding they needed to work with E911 to get the calls out faster. Baggett continued that, in March, the second or third closest responder had been required to respond to a call because the primary unit was on another call in 15% of the calls for service. Reponses to assisted living facilities accounted for nearly 20% of all calls for service. Turnaround time was the time required to return to the station after a call. A call that required transporting a patient to the Emergency Room at Piedmont Fayette Hospital took from an hour to two hours. Patients arriving via ambulance had to go through the triage system at the Emergency Room and be prioritized as walk-in patients. The process was quicker for patients in critical situations, but "wall time" (the time paramedics spent waiting to turn a patient over to hospital staff) was becoming more common. The City's paramedics had to relay all the information on treatment/procedures before they could return to the station. Trauma and stroke patients and children who had more than a routine illness had to be transported to Atlanta. Baggett noted the City's department also had mutual aid agreements with surrounding entities, and if the City was busy, that entity usually was too. The demand for EMS would continue to grow as the population aged, Baggett reiterated. The risk of fire loss would increase as properties aged, and Baggett said the Fire Department would work on improved prevention and encourage safer construction methods and enforcement of life safety codes. They also inspected businesses to ensure all the safety measures were working and to make them safe. Baggett said they continually monitored the key performance indicators to see when to expand services. It was an expensive process. It took one year to build a fire truck, and building a station was a two-year process. Rorie added that it would take approximately $2.9 million just to build a station and put in the equipment, which would be $350,000 in debt service. Three shifts of four people (12 personnel) were needed, plus uniforms and supplies totaled $1.08 million for a station with fire and EMS personnel. All of the City's medical units were an extension of the Emergency Room, and they operated under a doctor's supervision. They had standards of care and protocols and procedures that had to be followed. Rorie continued that that they also were trying to allocate resources throughout the City, where the growth was occurring, and where the demand for service was, which might not mean four City Council Minutes July 11,2017 Page 7 people at a full fire station. The demand for service was trending nationally and locally to medical stations with ambulance personnel who could also fight fires. Instead of 12 people at one $2 million station, there could be 12 people at two$1 million stations. The decision should be rational and based on the need for service, in addition to the benchmarks that needed to be made. The impact fee for fire protection for each new unit in the West Village (Wilksmoor) was $583.88 per unit. Planning projections were based on when the new station should be built. Rorie said that, currently, the demand on the south end of the City exceeded the demand in the West Village. Staff had to look at impact fees and the increase in property taxes due to the growth to pay the operational expense of a new station. To date, 63 building permits had been issued, with 43 certificates of occupancy (COs) for Cresswind and 18- 19 for Everton in Wilksmoor. There was a site for a station on MacDuff Parkway, and station construction should be considered at 30% build out of the planned 1,329 units for the two subdivisions, Rorie said. The question should not be about the ISO rating, but whether the service delivery strategy adequately met the demand for 72% of the calls,which were medical. The City was adequately funded and adequately distributed for fire stations and fire trucks, Rorie said. There was a CIP plan in place to do that. The demand was on the medical side and how those resources were distributed. The City would be better off with a temporary location for EMS on the south end of the City to see how much more growth there would be in that area. The key was the medical response moving forward. 5-Year Capital Improvement Plan (CIP) Salvatore discussed the effect of the proposed budget on the five-year CIP. The highlights were: • FY 2018 o $341,000 cash funding for infrastructure (citywide facilities & bridges) o $275,000 cash funding for technology infrastructure replacements o $891,750 for vehicle & equipment replacements (5-year financing) • FYs 2019 -2022 o $350,000 per year cash funding for citywide infrastructure (facilities & bridges1 o Additional $250,000 cash funding for All Children's Playground in FY 2020 o Fire Truck, Ambulance, Radios,Self-Contained Breathing Apparatus (SCBA) moved to SPLOST o New West Side Fire Station-Fully operational by FY 2021, -$1 million/year operating expenses o Reduced reliance on debt financing of infrastructure-more pay-as-you-go o Additional millage rate reductions in FYs 2019 & 2020 (0.1 &0.2, respectively) Salvatore said the CIP had a good mix of debt financing and pay-as-you-go, which was a consideration for bond rating agencies. From FY 2020, there was an additional $250,000 cash funding for upgrades at the All Children's Playground in conjunction with the SPLOST project to run a bridge from the park to Drake Field. Salvatore said it was important to maintain the baseline in the budget on big items, such as paving. The new fire station in the West Village was to be fully operational by FY 2021, and the $1.08 million in operating expenses would hit the General Fund. Fleisch asked what the rule was for spending impact fees. Rorie said it was on a first in, first out basis, and by the sixth year, the funds should be encumbered. City Council Minutes July 11,2017 Page 8 Salvatore said there were additional millage rollbacks projected for FY 2019 (0.1 mil) and FY 2020 (0.2 mil). He continued that it was never good to have a big cut in the millage rate at one time. The cuts should be done in small increments and reviewed every year. Salvatore looked at the five-year plan for the CIP budget, noting the program for FY 2018 included cash and financing. Five-year equipment lease/purchasing programs would be used to replace Public Works, Police, and Fire Department staff vehicles, as well as storage/expansion of Police videos and replacement of 15 cardiac monitor lifepaks. Rorie noted that funding for bridge maintenance ($100,000) and facilities improvements ($100,000) was in addition to what was programmed in the General Fund. For the money in the CIP to be spent, special requests had to be submitted. In FYs 2019 - 2022, the funding from citywide infrastructure increased to $350,000 annually. Salvatore noted that there were bond funds left, so only $100,000 was included in the CIP for FY 2018. The bond funds should be gone at the end of that year. Salvatore expected $350,000 to be a realistic amount once the bond funds were gone. One of the issues in the CIP was the replacement of police cars, Rorie said. The replacement cycle needed modification to balance out the purchases. He noted that FY 2018 had nine patrol vehicle replacement, FY 2019 included 12 police vehicle replacements, FY 2020 had six replacements scheduled, nine were scheduled in FY 2021, and 15 were slated in FY 2022. There should not be economic spikes in the budget year after year, Rorie said, and he recommended resetting the CIP to smooth out the spikes. Police Chief Janet Moon discussed the current issues with vehicle replacement in the Police Department,saying the policy for mileage criteria had changed a few years previously increasing from 100,000 to 125,000 miles before a vehicle could be replaced. However, a one-size-fits-all policy did not always work. She noted a recent article in a magazine regarding rotation of police cars that stated the optimal time for replacement was when the total cost averaged over the vehicle's lifetime was at a minimum. Costs included depreciation, operating expenses, maintenance, and downtime. They also had to look at the legal consequences of keeping a vehicle too long. The City would be scrutinized more closely if an older vehicle was involved in a crash during a pursuit. The main concern was the safety of the citizens, as well as the safety of the officers driving the patrol cars. Moon reported she recently spoke to Natalie Sellers with Local Government Risk Management Services,who recommended vehicles be replaced at 100,000 miles. The new Chevrolet Caprices were not holding up as well as the Ford Crown Victorias had. Rorie noted the goals and objectives for FY 2018 also included the following: • Increase Cyber Security Issues/Technology Upgrades o Software o See Click Fix It/Citizen Engagement Tool • Evaluate EMS Stations vs. Fire Stations o Staffing Scenarios o ISO Impacts o Response Time Criteria and 911 Service Delivery • Keep Peachtree City Beautiful (KPTCB) Recycling/Funding Strategies • Reduce turnaround time in the plan review process • Reset the CIP to restructure economic smoothing cycles City Council Minutes July 11,2017 Page 9 The required public hearing on the proposed FY 2018 budget was scheduled for the July 20 City Council meeting, Salvatore said. Additional hearings would be scheduled for the millage rate. Stormwater Utility Fund Stormwater Manager Mike Madison gave an overview of the Stormwater Water Utility Fund Revenues, noting the stormwater funds were not mingled with the City's General Fund. Stormwater revenues: • Stormwater Fee/Charges for Service = $2,321,968 (1.15 mil equivalent) o Special Fund - Funds are not commingled with General Funds and used specifically for utility o Residential billed twice per year to spread annual bill between two equal payments o Revenue demands the same regardless of billing cycle ($150/ year or $75 twice per year) o Commercial billed on a monthly basis o General Fund or Enterprise Fund not affected by • Tax Exempt Properties ■ All properties included Expenses: • Seven Personnel • -$50 Million in identified projects o In-House Projects 111 o Contractual Services Projects • Bond Debt-32%of total budget, Fees set at 115%of Bond debt Bond debt accounted for one-third of the Utility's expenses, Madison said. There was approximately $225,000 difference between revenues and expenditures, which was put into a fund for costly pipe repairs that could not be done in-house. Rorie added the Utility would face more debt without the renewal and extension (R&E) fund. Rorie reiterated that the public hearing on the proposed budget would be held on July 20. When the City received the tax digest from the County Tax Commissioner, they would know if the proposed budget was a good plan, and the millage rate public hearings would be set, Salvatore added. Fleisch opened the floor for comments from the public. Larry Milligan asked if the Fire Department had considered an EMS floater that could answer calls when an EMS crew at a particular station was on another call or out of the jurisdiction. Baggett said the Department did something called "pulling zone," explaining that when the medic and fire trucks from the same station were simultaneously out, another vehicle would answer the call. If a medic truck from another station was not available, all the firefighters were emergency medical technicians (EMTs) and had a supply of equipment on the engines, but did not have all the equipment/training for all the procedures. Fleisch asked if there had been issues with the ambulances being diverted at Piedmont Fayette. Baggett said that, legally, the hospital could only go on diversion for four hours at a time. There were two types of diversions, and Piedmont Fayette had its own policy. The state's EMS policy governed the Department's EMS services. Diversion did not mean they did not go there because they took patients to the closest, most appropriate facility. Piedmont Fayette's status ebbed and flowed. City Council Minutes July 11,2017 Page 10 Fleisch asked Salvatore where the City's debt stood. Salvatore said the City's debt was under$10 million, not including stormwater debt,with about$2.1 million in debt service. All the current debt would be paid off in 2024. Fleisch asked how much debt the City could acquire. Salvatore said the City's debt could be the equivalent of 10%of the tax digest,which was the legal debt margin, or $200 million for General Obligation Bond debt, but that did not include lease/purchase and other types of debt. The City was at a small fraction of its allowed debt, and the debt was relatively short-term. Rorie said they were trying to keep from taking on future debt, but from a debt structure standpoint, the City was in good shape. Ernst suggested that anyone planning to speak at the public hearing limit their speaking time. Rorie suggested something like three minutes, or between three and five minutes, adding he did not want the first person to take up all the allotted time. Rorie said staff would have a plan of action for the public hearing. There being no further business to discuss, the meeting •:'ourned at 8:37 p.m. 2)/Mdf,(, I , . �. Pamela Dufresne, Dep 'y City Clerk Vanessa Fleisch, Mayor