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HomeMy WebLinkAbout1986-07-22 315 MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA July 22, 1986 ************************ The Commission of the City of Bozeman met in a special session in the Conference Room, Municipal Building, July 22, 1986, at 9: 30 a.m. Present were Mayor Mathre, Commissioner Jordan, I Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, Assistant City Manager Barrick and Clerk of the Commission Sullivan. Signing of the Notice of the Special Meeting The Mayor requested that each of the Commissioners sign the Notice of Special Commission Meeting. Each Commissioner in turn signed the Notice. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Commis- sion waive the Commissioners' salaries for this meeting as established in Ordinance No. 1137. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Martel, Commissioner Stiff, Commissioner Jordan and Mayor Mathre; those voting No, none. Work Session - FY 1987 Budget Mayor Mathre stated the purpose of this special Commission meeting is to review the City Manager's recommendations for the budget for Fiscal Year 1986-87. The Commission continued to review the City Manager's recommendations for the budget, as follows. City Manager Wysocki reviewed some of the key elements covered in the third page of his letter of transmittal. He noted the proposed budget is based on an estimated mill valuation of $23,269, which is 3+ percent higher than last year's actual valuation. He then noted that the base budget is almost one mill lower than last year's, but the 6.45 mills for the fire truck I and 14.55 mills for the Valley Unit Corporation delinquencies on SI D assessments have caused a substantial increase in the proposed mill levy. The City Manager then noted that the proposed 19.55-mill levy for the SID Revolving Fund is lower than the originally projected 22.76 mills, which was submitted to the Commission about a month ago. The Commission then proceeded to review the various summary pages contained in the City Manager's recommendation, covering Pages 4 through 24. City Manager Wysocki reminded the Commissioners that items listed under IICapital" on Page 4 are those which cost between $250 and $1,000. Any items costing more than $1,000 are placed in the Capital Improvement Program, which will be considered after the operations budget has been completed. He then noted that the budget unit for "Light Maintenance" has no monies appropriated; however, that unit has been split and is contained under the various buildings which are covered by the contracted service. Commissioner Vant Hull noted the City's contribution for the police and firefighters' retirements is substantially higher than for the remaining employees and suggested the City may wish to lobby for State funding assistance for those State-mandated costs. The City Manager reminded her that the percentage the City pays into those retirements is almost equal to that paid into the PERS program and Social Security for the other employees, noting that pol ice and fire personnel are not under the Social Security system. Director of Finance Gamradt stated that the City is attempting to maintain a 30 percent I fund balance in the special revenue funds, to cover costs incurred from July through December of each year. He also noted that allowing that balance to float up and down slightly helps to maintain a more even mi II levy requirement for those funds. The Director of Finance then indicated that the amounts contained in the reserve line item in the Sewer and Garbage Funds represent a positive cash flow, which provides funding for a portion of the depreciation costs incurred each year. He then noted that the Water Fund has not received the anticipated revenues since the rate increase went into effect, partially because of the wet weather and partially due to conservation measures instituted by individuals because of the increased costs. 07-22-86 31G Director of Finance Camradt indicated that the user rates for the enterprise funds should generate adequate monies to cover operations costs as well as the costs of assets currently being used. He stated with the new water rates, the current customers are paying the costs of the assets as well as the operations. However, the sewer rates cover only the operations and a small portion of the depreciation; therefore, the customers are not payi ng for current or future assets. He noted the City is considering the possibility of major maintenance at the Waste Water Treatment Plant; and it will be necessary to increase the rates to cover the I costs which will be incurred. The City Manager then began review of Page 6, noting that the proposed All-Purpose General Fund mill levy will generate 105 percent of last year's property tax revenues. He noted the approach he has utilized during this and previous budgeting periods is conservative, but very defensible. He indicated that new annexations, valuations from new construction could possibly be considered separately when following the formula, but that approach is not necessary to generate adequate funding for the proposed budget. Commissioner Vant Hull noted the projected revenue from the County for library support is lower than what was received last year. She then suggested that the Commission write a letter to the County requesting additional support for the library as well as support for the recreation program. The Commission concurred that a letter should be prepared by Mayor Mathre and Commissioner Stiff to the County soliciting additional funding. Commissioner Vant Hull once again expressed concern about the proposed decrease in animal control, indicating that she feels the licensing of dogs should be carefully reviewed. She further noted concern that the citations are dismissed or the fines suspended, stating she would like to receive reports showing the number of tickets dismissed and the total amount of fi nes . Commissioner Martel asked how the anticipated revenues from court fines and forfeitures were determined, expressing concern that the City Judge does not provide any information to the Commission, even for purposes of maintaining any form of communication. Commissioner Jordan stated the Judge has indicated a willingness to meet with the Com- I mission in open session to discuss various items on a rather regular basis. City Manager Wysocki noted that all of the anticipated Gas Tax Apportionment monies have been included in the operations budget this year, rather than setting aside any monies in the C I P for long-term road improvements. He indicated that the amount of monies currently in the CIP is small for doing any roadway construction, but it could be used for possible acquisition of key portions of right-of-way. Commissioner Martel noted that the amount of revenues projected for snow removal is $5,000, while the anticipated expenditures are over $10,000. Director of Finance Gamradt stated that the snow removal program costs the City money. He noted that the City hires individuals to canvass the community to enforce the ordinance. He indicated that when the City does have a contractor complete the work and bills the property owner, the only portion the City retains is the $20.00 penalty; and the remainder is paid to the contractor for his work. Commissioner Vant Hull expressed concern about the manner in which the ordinance is enforced, indicating that she feels it should enforced on a complaint basis only. The City Manager indicated that the ordinance must be enforced the same for everyone. Mayor Mathre noted that no carry-over from Fiscal Year 1985-86 is projected as a revenue. The Director of Finance indicated there will be a carry-over; however, those monies are not used to balance the proposed budget. The Director of Finance stated that the Intergovernmental Supply and the Inter- governmental Vehicle Maintenance budget units are supported by charges to other departments. I He noted that the purpose of those functions is solely to provide service to other departments within the organization, not to outside sources. He noted that the amount budgeted for Supply this year is lower than last year, because it includes only those items which are carried in inventory, not special purchases like the new fire truck. Commissioner Jordan asked if the figures listed for the City-County Planning Board are those prepared by the City Manager or those submitted by the Planning Board. The City Manager indicated those are his figures. 07-22-86 31l The Commission then reviewed the anticipated revenues for the three enterprise funds. Commissioner Jordan stated support for increasing the fees, particularly for the sewer and garbage services, as soon as possible to cover costs of the capital programs for both funds. City Manager Wysocki briefly reviewed the tabulation of Revenue Sharing monies available for this year's budgeting, as shown on Page 11. He noted that last year's projections included only two quarters because continuation of the program was so tenuous, indicating that the last I two quarters from last fiscal year have been listed as unanticipated revenues in this tabulation. He then indicated that continuation of the Revenue Sharing program is still up in the air, al- though the City is assured it will receive allocations in July 1986 and October 1986; therefore, they are the only two quarters listed. He noted if the program is continued, the monies re- ceived in January 1987 and April 1987 will be listed as unanticipated revenues during next year's budgeting process. The City Manager then indicated he has recommended that $75,000 in Revenue Sharing monies be utilized to cover a portion of the police salaries, with the re- maining monies to be utilized in the Capital Improvement Program, which will be considered following this budgeting process. The City Manager then reminded the Commission that they will be conducting the required public hearings for Revenue Sharing Fund monies at the same time they conduct the regular budget hearings. The City Manager noted that Page 12 contains a summary by category of the General Fund portion of the proposed budget, as well as a comparison of this proposed budget with last year's amended budget. He noted that this year's budget reflects a 3.398 percent decrease from last year's budget in the General Fund. He then reviewed the various breakdowns on the proposed mill levy and comparisons with previous years, as contained in Pages 13 through 15 and Page 17. The Commission briefly reviewed the options listed on Page 16. The City Manager in- dicated his recommendation does not include the requests submitted by the Library Board of Trustees or the City-County Planning Board. He noted that those requests do include some salary adjustments; and if those adjustments are made, it could result in major impacts on other I portions of the budget due to negotiation processes. He indicated the budget does not reflect any salary changes per Commission direction but does allow for longevity progressions and promotions as a result of changes in duties. City Manager Wysocki indicated that Pages 18 through 20 provide a summary of anticipated expenditures, grouped by fund; and Pages 21 through 23 are a summary of anticipated expendi- tures by major classification, including the percentage of the budget which they represent. He noted that the Department of Public Service comprises nearly one-half of the total budget. The City Manager then stated that Pages 24 through 32 provide detailed listings of the estimated revenues and expenditures for the various Special Revenue Funds. Commissioner Jordan asked if monies have been budgeted for anticipated retirements. City Manager Wysocki indicated they were budgeted originally but were immediately eliminated in an attempt to balance the budget. He noted positions will remain vacant until the payoffs have been covered in an attempt to stay within the budget. Commissioner Jordan noted it may be possible to leave positions vacant for a period of time when it is not really busy; but he ex- pressed concern about leaving positions open when it is busy. Director of Finance Gamradt indicated that there are designated reserves in the General Fund, in the amount of $295,000, to cover the City's liability for accumulated vacation and sick leave. He noted that amount is adjusted annually in December of each year; but use of those reserves would result in a need to replace them the following fiscal year. Mayor Mathre reminded the Commissioners that the next work session on the proposed budget has been set for 9:00 a.m. on Saturday, July 26. I Adjournment - 12: 00 noon There being no further business to come before the Commission at this time, it was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. 07-22-86 318 JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission I I . i I