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HomeMy WebLinkAbout1984-08-06 spec 288 MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA August 9, 1984 *********************** The Commission of the City of Bozeman met in a special session in the Commission Room, I Municipal Building, August 9, 1984, at 3:00 p.m. Present were Mayor Weaver, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki, Assistant City Manager Barrick, City Attorney Crumbaker-smith 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 Mathre, seconded by Commissioner Vant Hull, that the Commission 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 Mathre, Commissioner Vant Hull, Commissioner Anderson and Commissioner Jordan; those voting No being Mayor Weaver. Work Session - FY1985 Budget Mayor Weaver stated the purpose of this special Commission meeting is to continue review of the City Manager's recommendations for the budget for Fiscal Year 1984-85. City Manager Wysocki presented to the Commission a memo from Assistant City Manager Barrick regarding the $35,000 contribution from the School District for the Swim Center. He noted the monies for Fiscal Year 1984 were collected prior to June 30, 1984; and are reflected through the deposits made by the Swim Center. He noted in the future, all billings and collections will I be completed through the Department of Finance rather than through individual departments. The City Manager then presented to the Commission a set of revised supplementary sheets, reflecting the final mill value rather than the preliminary mill value. The City Manager also noted the County's contribution for the library will be slightly higher than anticipated; and that increase can be acknowledged through a budget amendment after the Appropriation Ordinance is adopted, since the monies to be received are earmarked for a specific activity. The Commission then continued reviewing the City Manager's recommendations for the budget, as they had in the previous session. Mayor Weaver asked how confident the staff is in the State-shared revenues as listed. Director of Finance Swan stated she has been conservative in estimating the amounts of revenue to be received from each of the State-shared revenue sources; and indicated she has received documentation on the amounts to be received from some of those sources. She noted the block grant monies will be distributed on June 30, 1985; and the amount to be received is based on the barrel price for oi I. She indicated she has based the estimated revenue on the actual amount received last year, which is the worst case estimate submitted by the State. Commissioner Vant Hull asked about the revenues from corporate license fees. The Director of Finance indicated that those revenues are now being split from the property taxes in the County's distribution sheet. She noted this source of revenue has been listed under the property taxes, but since it is being listed separately through the County's accounting system, it is best to recognize it as a separate revenue in the City's system. Commissioner Anderson asked if the business license fees are being reviewed and possibly I revised. Assistant City Manager Barrick stated the staff is currently reviewing the Business License Ordinance and will submit a proposed ordinance to be considered and possibly acted on prior to December 1, 1984. Director of Finance Swan stated the revenue estimates are based on the existing business license fees. 08-06-84 Special Meeting 289 Mayor Weaver asked if the $35,000 in School District contributions to the Swim Center, which is included in the $112,000 in revenues from the Swim Center, has affected the revenue estimate for Fiscal Year 1984-85. The Director of Finance indicated the staff did not realize the $35,000 was included in the $112,000 when preparing the revenue estimate. She noted it could have an effect on the amount of revenues received. I Assistant City Manager Barrick noted the amount contributed by the School District can be renegotiated for the new Fiscal Year. Commissioner Vant Hull asked if the cemetery fees will be increased during the coming fiscal year. Director of Finance Swan stated the Commission should consider increasing the cemetery fees. She then stated accounting standards provide that revenue estimates must be based on existing fees; and noted the projected revenues cannot be increased based on potential fee increases to be established by the Commission. Commissioner Jordan stated he feels the revenues received from animal permits could be dramatically increased if all dogs within the city limits were licensed. Commissioner Vant Hull noted that several years ago, college students went door to door in the city; and the monies received from the sale of additional dog I icenses more than covered the expenses incurred. She suggested that possibly the same action could be taken next summer to remind residents that all dogs are to be licensed. Commissioner Vant Hull then stated the original intention was that sludge injection would help pay for the large truck needed for this activity. She suggested that implementation of a fee be considered. City Manager Wysocki stated the County Extension Agent is currently compiling information on the crop yields from those fields in which sludge injection is utilized. He stated when additional information is available and the number of people interested in this service increases, the City may wish to consider implementing a fee. The City Manager then noted any revenues I from this source will be placed in the enterprise fund. Commissioner Vant Hull then noted the revenues from the sprinkling districts is lower than estimated. Director of Finance Swan stated the charge for each sprinkling district is to be based on actual costs; and that charge was not changed for several years. She noted this past year, the time sheets reflect that City crews did not spend as much time in the sprinkling districts as they had in the past, so the amounts assessed were much lower than the previous years. Commissioner Mathre asked why the investment income estimate is lower than last year's income. The Director of Finance stated the interest earnings from the Cemetery Perpetual Care fund have been separated from the investment income this year, to more accurately reflect the actual sources of income. She noted that combining the two will provide a figure for comparison with last year's investment income. City Manager Wysocki noted the State Statute requires that one mill be appropriated for the Local Government Study Commission; and the proposed budget is based on last year's mill value. He stated that budget unit must be adjusted to reflect the actual mill value. Commissioner Mathre noted the amount listed under the Water Enterprise Fund is double last year's budget. The Director of Finance stated debt service is included this year for the first time. She noted the debt service in the Water Fund is slightly less than the operations budget. Commissioner Anderson asked how long it will take the Water Fund to pay back the antici- I pated $224,000 loan from the General Fund - Undesignated Reserve. Director of Finance Swan stated it ~ill probably be three years, depending upon how much the PSC allows for retirement of the loan during its review of the water rate structure. Commissioner Mathre noted the anticipated loan to the Water Fund will decrease the Un- designated Reserve substantially. Mayor Weaver asked if the anticipated revenues reflect a worst case estimate. The Director of Finance stated the estimate is based on six months at the current rates and six months at an 18 percent increase. 08-06-84 Special Meeting 2~U Commissioner Vant Hull asked if the City Commission should implement a 12 percent increase as soon as possible to alleviate some of the financial strain on the Undesignated Reserve. City Manager Wysocki stated the Commission must consider the political aspects of two water rate increases in the same fiscal year. He then noted the sewer rates should be increased approximately 11 i percent and the garbage rates increased 7 to 8 percent. He noted the water rates will require the largest increase, probably 50 percent total increase. Mayor Weaver stated his main concern is the potential impact on the Undesignated Reserve. I Commissioner Jordan asked if implementation of a 12 percent increase by the Commission would jeopardize the needed water rate increase before the Public Service Commission. The City Manager stated the figures in the water rate study just completed can be easily revised if a rate increase is implemented prior to filing before the PSC. He then noted the water rate increase previously approved by the PSC provided for a third increase after the water treatment plant began operation; and that increase has not been implemented. He noted the in- crease would provide a $69,800 increase in revenues; and the City staff feels it would better to request an increase which would cover the actual expenses rather than implementing an increase which would not meet the costs incurred. Mayor Weaver asked if future capital outlays are included in the anticipated water rate increase. City Manager Wysocki stated capital outlay is included. He noted the most important item the water rate increase will accomplish is placing the City back in compliance with the bonding requirements, which provide that 1.25 times the amount needed for debt service will be set aside. Commissioner Vant Hull asked if monies have been included in the budget for breaching of Mystic Lake Dam. The City Manager indicated monies are not included. He noted the City staff does not know how much the City will be required to pay for the breaching. He reminded the Commission that the City has only half ownership in the Association and is not in a financial position to bear all of the costs of the breaching, with a payback to be made by other Association members. Commissioner Mathre asked how many new employees have been added with the opening of I the Water Treatment Plant. City Manager Wysocki stated there are three operators at the Water Treatment Plant. He noted a fourth operator was added last week with the explicit statement that the position will be eliminated if the plant begins to operate on automatic as originally planned. He noted that before the plant was completed, the consultants indicated that 1 i plant operators would be needed to maintain the plant. Commissioner Mathre noted the salaries in the Water and Sewer Funds is significantly in- creased from last year's budget. The City Manager stated the addition of three persons to operate the Water Treatment Plant is reflected in the Water Fund. Director of Finance Swan stated unanticipated overtime at the Waste Water Treatment Plant, especially for sludge injection, has resulted in ,substantial overtime costs. She also indicated one new person was added at the Waste Water Treatment Plant during the past fiscal year. City Manager Wysocki then reviewed the proposed uses of Federal Revenue Sharing Funds in the Fiscal Year 1985 budget. He indicated that his recommendation provides that $83,125 be utilized to support the police and fire division salaries, $13,875 be utilized for minor capital items in the General Fund, and $204,581 be set aside for the Capital Improvement Program for the period October 1, 1984 through June 30, 1985. Mayor Weaver noted the Commission had made a commitment to utilize Revenue Sharing monies for the CI P, rather than in the operations budget. He noted the City Manager's recommendation is to utilize $100,000 to increase the public safety activities of the City and minor capital I purchases. The City Manager noted that $95,000 in Revenue Sharing Funds was utilized in the Fiscal Year 1983-84 budget to support police and fire salaries; and $86,000 is proposed for Fiscal Year 1984-85. He noted the amount of monies being utilized from Federal Revenue Sharing Fund monies to support the General Fund operating budget has been decreasing over the past few fiscal years. The Commissioners concurred that they would like to see less Revenue Sharing monies utilized in the operations budget. Commissioner Anderson then suggested that $200,000 be set 08-06-84 Special Meeting 281 ~. aside. Mayor Weaver concurred, noting the $200,000 could be earmarked for long-term capital projects; and could serve to support the General Fund - Undesignated Reserve during the upcoming fiscal year if needed. Director of Finance Swan reminded the Commission that all Federal Revenue Sharing Fund monies must be appropriated within three years of receipt. B rea k - 4: 00 to 4: lOp. m . I Mayor Weaver declared a break at 4:00 p.m., to reconvene at 4:10 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Work Session (continued) - FY1985 Budget Mayor Weaver noted that Page No. lOin the City Manager's recommendations reveals the amount of monies involved in the various budget amendments approved during the past fiscal year. He stated the Commission must consider re-appropriating monies within the bud~et during the upcoming fiscal year, rather than utilizing Undesignated Reserves. He noted the City does not have an adequate amount of monies in the Reserve, which it did last year. The Mayor also noted that budget amendments increase the base for a department1s budget, which circumvents the legis- lative intent. Commissioner Anderson asked if promotions and increases in pay have been anticipated. The City Manager stated it is difficult to anticipate retirements and promotions. He then indicated the State Statutes prohibit budgeting for retirement pay-offs during the upcoming fiscal year. City Manager Wysocki then reviewed the mill levies for the past five fiscal years and the proposed mill levy for the upcoming fiscal year. He noted if the Commission adopts the proposed option for funding, the mill levy will increase from 109.00 to 112.72 mills for Fiscal Year 1984-85, utilize $100,000 in Revenue Sharing monies, $334,000 in Gas Tax Apportionment monies and $114,006 in carry-over funds from Fiscal Year 1983-84. The Commissioners reviewed some of the options for funding of the proposed budget, suggest- I ing possible variations. Mayor Weaver noted the proposed budget does not provide any slack for increasing the mill levy. He stated if the Commission wishes to increase the Undesignated Reserve or revise any other item, it must change the amounts proposed by the City Manager for the various budget units. Mayor Weaver once again expressed a desire to set aside $100,000 in a long-range capital improvement fund, which could be utilized to subsidize the Undesignated Reserve if necessary and which could be reallocated if necessary. The Mayor stated he would like to see Gas Tax Appor- tionment monies designated for this purpose, rather than Revenue Sharing monies. Commissioner Anderson suggested that all capital projects which are not immediately necessary be deferred for one or two years. She noted items which could have an adverse effect on the employees' safety or are not economically sensible, such as new police cars, should be funded during the upcoming year. The Commissioner then asked about the possibility of appro- priating Revenue Sharing Fund monies to subsidize the Water Fund. City Manager Wysocki stated Revenue Sharing Funds should not be utilized to subsidize a fund which is supported by user fees rather than property taxes. Mayor Weaver noted that in past years, the Commission has indicated its commitment to utilize external funding sources, such as Revenue Sharing Fund and Gas Tax Apportionment monies, for capital improvements. He stated the Commission is now concerned about the low Undesignated Reserve balance and must determine how to appropriate those external funding monies. The Mayor stated he does not feel the monies should be utilized in any manner which will subsidize the tax base. I City Manager Wysocki suggested that the Commission utilize Revenue Sharing Fund monies for purchase of items only, rather than funding of construction projects. He noted the Davis- Bacon Act must be observed when utilizing Revenue Sharing Fund monies, which can result in an accounting and auditing nightmare. Commissioner Jordan asked about the proposed $223,000 transfer from the Undesignated Reserve to the Water Enterprise Fund. Director of Finance Swan stated the loan is to be utilized to meet the proposed expen- ditures. She noted the projected water rates are based on a specific level of operations; and 08-06-84 Special Meeting 292 when the water rates are adopted, sufficient revenues will be generated to cover the expendi- tures. The Director of Finance stated payback of the loan is contingent upon the timing of the water rate increase and PSC stipulations. She noted the sooner the increased rates are imple- mented, the smaller the loan from the Undesignated Reserve. Director of Finance Swan then suggested that the Commission take formal action to make the loan from the General Fund - Undesignated Reserve to the Water Enterprise Fund and establish the payback at the going interest rate. I Mayor Weaver asked why the Gas Tax Apportionment is listed separately from the Street Division. Director of Finance Swan indicated that State reporting requirements provide that Gas Tax monies must be appropriated separately. She also noted that documentation must be provided for every dollar spent from that fund. Mayor Weaver asked what the costs will be for the new reference librarian and two patrol- men. Director of Finance Swan stated the amount budgeted for the reference I ibrarian is $16,995; and $16,600 is budgeted for each police officer. City Manager Wysocki stated the salaries listed under the Library must be reduced by $4,300 due to an error during preparation of his recommendation. The Commission then reviewed each budget unit separately, as follows. A- 1 City Commission. Commissioner Vant Hull asked if the amount for dues for the National League of Cities could be reduced by decreasing the number of Nation's Cities Weekly which are received. The Commission instructed the Clerk of the Commission to research this item. A- 2 Clerk of the Commission. Commissioner Mathre asked what is included under Contracted Services. The City Manager indicated the courier services are included in the Contracted Services for those budget units which utilize the service. I Commissioner Jordan asked what is included under Rents and Leases. The City Manager stated the Displaywriter is covered under that line item. A- 3 Elections. The Commissioners questioned what elections are anticipated during the up- coming fiscal year. City Manager Wysocki stated the Local Government Study Commis- sioners are to be elected in November. Also, there is a possibility of elections for a special mill levy, depending upon the final budget adopted by the Commission; and if the Local Government Study Commission completes its review, an election on those results may be forthcoming during this fiscal year. The Commissioners concurred that the election on the form of government will not be completed during this fiscal year and removed $5,000 from the budget unit. A- 4 City Manager's Office. No questions. A- 5 Director of Public Works. No questions. A- 6 Director of Public Safety. No questions. A- 7 City Attorney. The Commissioners questioned the increased amount listed under Contracted Services. City Attorney Crumbaker-Smith stated $12,000 is for Karl Seel, acting as the City Prosecutor; $18,400 to cover Bob Planalp's services; and $4,000 for Westlaw computer law research. A- 8 Litigation. No questions. I A- 9 Financial Administration. No questions. A-l0 Engineering. The Commissioners questioned the increased amount in the Travel and Schools. City Manager Wysocki stated the Engineering Officer is spending more time inter- acting with the public than the previous City Engineer. He also noted the Engineering Officer has been spending quite a bit of time at the Water Treatment Plant during construction and will probably continue to travel to the Plant on a regular basis. 08-06-84 Special Meeting 293 Mayor Weaver suggested that those costs be captured and charged against the various enterprise funds. The Commissioners then questioned the amount listed under Machinery and Equip- ment. The City Manager stated purchase of two traffic counters and a file cabinet are included. I A-ll City Court. Commissioner Mathre asked about the amount listed under Contracted Services. The City Manager stated court-appointed counsel is being requested more and more often; and the City must provide that counsel if the person is indigent. B rea k - 5: 20 to 5: 25 p. m . Mayor Weaver declared a break at 5:20 p.m., to reconvene at 5:25 p.m., in accor- dance with Commission policy established at their regular meeting of March 14, 1983. Work Session (continued) - FY1985 Budget The Commissioners continued working on the individual budget units as follows. A-11 City Court (continued). Commissioner Anderson asked what is included in Machinery and Equipment. The City Manager stated a computer terminal, file cabinet and calculator are included. Commissioner Mathre asked about the Travel and Schools. City Manager Wysocki stated the Judge had planned to attend a conference during the past fiscal year but did not. He indicated the monies have been rebudgeted for FY1985. Commissioner Vant Hull asked what is included in Other. The City Manager in- dicated jury and witness fees are listed in that category. A-12 Pol ice Division. Commissioner Anderson asked why the amount in Contracted Services has increased. I The City Manager stated the teletype costs have increased, as well as the amount con- tributed to the Humane Society. Commissioner Mathre asked if the Travel and Schools budget includes monies for training the proposed new officers. The City Manager indicated it does. He noted one police officer has recently retired; and two additional patrolmen have been included in the budget recommendations. Commissioner Anderson stated she is concerned about adding two patrolmen with the concerns about the Undesignated Reserve. She suggested that one patrolman be added at this time, with another being added next fiscal year. City Manager Wysocki stated the Police Division does not have sufficient officers on the street at times. He requested that if the Commission eliminates one of the proposed police officers, they authorize him to pursue the possibility of establishing a part-paid reserve of up to five individuals for the Police Division. The City Manager also noted the officers must appear in City Court during trials, and they are often required to work a full shift at the regular time. He indicated that can cause some concern, especially if the officer has had little or no rest. Mayor Weaver also expressed concern about adding two officers in the City's current fiscal situation. Commissioner Anderson stated she would like to know how much of the police officers' time is spent in Court, especially with DU I tickets, and how much time is worked in addition to regular shifts. I The Commissioners then took a straw vote on eliminating one additional police officer position, but it did not receive a majority of the votes because two Commis- sioners requested additional information on the entire budget. A-13 Fire Division. City Manager Wysocki requested that the Machinery and Equipment line item be increased by $1,300, to $2,300, to cover costs of replacing the furniture in Fire Station No.2. He then suggested that the Commission consider a five-year lease 08-06-84 Special Meeting 294 option on a lOS-foot ladder truck. He stated that item will be considered under the Capital Improvement Program. . A-14 Building Inspection. Mayor Weaver asked about the amount listed under Contracted Services. The City' Manager stated a half-time contracted building inspector will be retained to monitor the construction of the new hospital. He also stated the individual will be reimbursed for his mileage under the Travel and Schools line item. He noted the permit fees paid by the hospital should cover the costs of retaining this person. I A-15 Streets. No questions. A-16 Gas Tax Apportionment. City Manager Wysocki stated the $33,000 in Other is to cover the City's first payment for construction of the realigned Highland Boulevard. Mayor Weaver once again indicated he would like to place $100,000 from this budget unit into a long-term transportation capital improvement program. He also noted the Gas Tax will be under scrutiny in the next Legislative Session, and the City should be in a strong financial position if possible prior to that time. Commissioner Vant Hull stated the City needs to utilize these funds to maintain existing streets; and the State should realize that fact. Commissioner Mathre reminded the Commissioners that the use of these funds is restricted by State regulations. A-17 City Hall Complex. Commissioner Vant Hull asked about the increases in the Repairs and Maintenance of Equipment and Buildings. The City Manager indicated the costs were split between this budget unit and Police and Fire in the past. He noted since the City Hall and Police/Fire Building form the City Hall Complex, all costs have been accumulated into this budget unit. Mayor Weaver stated the Commission should set a time for completion of this review of the I City Manager's recommendations. Following a brief discussion, the Commission set 3:00 p.m. on Monday, August 13, 1984 for a work session on the proposed budget for Fiscal Year 1985. Adjournment - 6:00 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. KENNETH L. WEAVER. Mayor ATTEST: Clerk of the Commission I . 08-06-84 Special Meeting