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HomeMy WebLinkAbout1998-06-18 Minutes, City Commission MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA June 18, 1998 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room, Bozeman Professional Building, Thursday, June 18, 1998, at 6:30 p.m. Present were Mayor Stiff, Commissioner Smiley, Commissioner Rudberg, Commissioner Frost, Commissioner Youngman, City Manager Johnson, Assistant City Manager Brey, Administrative Services Director Gamradt and Clerk of the Commission Sullivan. Signing of Notice of SDecial Meetina Each Commissioner, in turn, signed the Notice of Special Meeting. Work Session ~ Review of City Manager's Budget Recommendations for FY1998-99 This is the sixth in a series of work sessions on the City Manager's budget . recommendations for Fiscal Year 1998~ 1999. The Commission continued its review of the individual budget units, as follows. Finance. Administrative Services Director Miral Gamradt briefly highlighted this budget, as contained on Pages C~ 18 through C-21. He noted that five of the existing personal computers do not have the ability to connect to the mainframe computer and will be replaced under this budget. Also included in this budget are monies for a total revamping of the furniture and work stations in the front office. Monies for the acquisition of a software package for the mainframe computer that was deleted last year, monies for technology and monies for contingencies have also been budgeted. He stressed that the technological needs of the various departments cannot always be anticipated at the beginning of a fiscal year, and these monies can be used to meet those needs. . The Administrative Services Director suggested that some of the monies for technologies could be used to purchase computers to be placed in each individual Commissioner's home and connected to the City's E-mail system. He stated that this system could then be used to disseminate equal information to the Commissioners. He recognized the City Manager's success in getting a good E-mail system installed in the City, noting that at the 06-18-98 Special ---- -- --.----- - 2 - present time, 70 users are on the system, and 55 of those have Internet access. He stated that 320 internal E-mail messages and 58 external E-mail messages are being processed daily, resulting in increased efficiencies. Assistant City Manager Ron Brey stressed that this new technology has given him the e capability to do research from his desk, instead of traveling to other locations or calling people and then waiting a week to receive information in the mail. The Administrative Services Director reviewed the performance measures in this budget unit, noting that he asked each of his employees to develop one performance measure. He stated that the City has received the Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officer's Association for several years. He then distributed a copy of the checklist for determining if a budget qualifies for the award and a listing of the cities in Montana which have received one or both of those awards. He noted that Bozeman and Billings are the only two cities in the state to receive both awards, Great Falls has received one of the awards, and no counties or school districts have received either award. . Administrative Services Director Gamradt turned his attention to the unfunded issues, noting he knew going into this process that no additional staff would be favorably considered. He stated, however, that he would like to add a computer software analyst, to complement and assist the PC Support person. He noted that the data processing department currently consists of a programmer for the mainframe system, one PC support person and one data entry person. Commissioner Youngman noted that Gallatin County has approximately the same number of computers as the City, and has seven employees in its data processing department. Responding to Commissioner Frost, the Administrative Services Director stated that Dennis Cruise, the City's PC support person, is very good with the hardware, but has more limited interest and knowledge of the software. He further noted that with more than seventy personal computers in the system and with needs like those identified during the Library's . presentation, Dennis is already stretched thin. G.I.S. City Manager Clark Johnson briefly highlighted this budget unit, as found on Pages C-68 and C-69. He noted that this budget is designed to begin the program and is based on the County's start-up budget for its operation. He then indicated that he anticipates the 06-18-98 Special - 3 - City's GIS employee will work closely with the County's GIS employee, particularly in areas that overlap. Lighting. Administrative Services Director Gamradt characterized this as a pass-through account. He stated the City pays the electrical costs for the lighting districts throughout the . year and then bills those costs back to the property owners in those districts. ADA. Assistant City Manager Brey highlighted this budget unit, as contained on Pages 0-60 and 0-61. He stated that all ADA-related items were to be funded through this budget unit when it was originally established, but it has been revised to now include only free. standing ADA compliance items not directly tied to another project. He then reviewed the items included in this budget unit, which include curb ramps, the parking lot and automatic doors at the Professional Building and a portable aquatic lift at the Bogert Pool. He noted that the items listed under FY98 Accomplishments will actually be concluded during the upcoming fiscal year. G.O. Bonds and SID Bonds. Administrative Services Director Gamradt briefly highlighted these two debt service budget units, as found on Pages E-2 through E-5. He noted the Library . G.O. bonds will be paid off in January 2000. He then noted that the graph on Page E-5 reveals the outstanding balance on SID bonds has declined from over $10 million in 1982 to less than $2 million today, largely due to the pay-off of the Valley Unit Subdivision SID bonds and a more restrictive policy. Responding to Commissioner Youngman, the Administrative Services Director stated that the decreased balance in outstanding SID bonds does not affect the City's bonding capacity. Purchasing. The Administrative Services Director stated this internal services department has one employee, who is responsible for operating the warehouse. He then noted that much of the purchasing function has been decentralized, with each department making its own purchases. . The Administrative Services Director noted that in some cities, such as Great Falls, the Finance Department is operated as an internal services fund, with its costs being assessed to the other departments. He recognized that this approach allows for a more accurate portrayal of the actual cost of each program. 06-18-98 Special -. ---- - --...---.. --.----- - 4 - Self-Insurance. Administrative Services Director Gamradt briefly highlighted this budget unit, as contained on Pages H~ 10 and H-11. He stated that every budget unit is assessed $355 per month for all employees on the City's health insurance program, and the monies are accumulated in this budget unit and then used to pay claims. He noted that the City has a . limited exposure of $75,000 per claim and, because of the City's favorable experience, the premium has not been increased this year. He characterized this self-insurance program as a good step for the City. CPC Fund. This budget unit, as contained on Pages 1-2 and 1-3, reflects a transfer of interest income from this fund to the General Fund to support the cemetery operations. The Administrative Services Director noted that this nonexpendable trust fund is steadily growing at an approximate rate of $2,000 annually, and its interest income will never be adequate to sustain maintenance of the cemetery. Responding to Commissioner Youngman, the Administrative Services Director stated that plot sales are projected to generate $60,000 to $70,000 annually and the interest income on the CPC Fund is projected at $35,000. The Cemetery budget is $325,000, leaving over . $200,000 in General Fund subsidy for this program. Responding to Commissioner Youngman, the City Manager stated that charges at the cemetery are comparable to those for other cemeteries in Montana. He noted that, because of the manner in which administrative costs are charged against the department, the budget for this operation is higher than in comparable communities. He then indicated that this budget unit is being carefully reviewed in an effort to determine if any adjustments are needed. Parkland Trust. This budget unit, as contained on Pages 1-4 and 1-5, shows that this fund has a balance of $67,000 and no anticipated expenditures this year. Assistant City Manager Brey noted that this fund had a balance of approximately $100,000 for several years, until 1994, when $50,000 was contributed toward the purchase of Burke Park. He cautioned that this fund grows slowly because the City seldom accepts . cash-in-lieu of parkland dedication. He recognized that this is a restricted fund, but he noted it is nice to have the monies available when they are needed for the acquisition of parkland. City Manager. City Manager Johnson briefly highlighted this budget unit, as contained on Pages C-6 through C-9. He stated the FTEs are slightly lower because a portion of Neighborhood Coordinator/Grantsperson Goehrung's time has been transferred to the Building 06-18-98 Special --.-..--.- - - 5 - Maintenance budget unit. He stated the operating budget has been increased in anticipation of covering costs associated with the legislative session, $8,000 has been budgeted for labor contract negotiations, and $35,000 has been budgeted for a classification study. He recognized that the City had a classification study completed several years ago; however, he . expressed concern that it has been revised several times and has become pOlluted in the process. He then stressed that no salary study is to be undertaken at this time, rather, a consultant is to be retained to complete a new classification study only. He noted that $10,000 has also been budgeted for office furniture for the administrative offices; and $31,200 has been budgeted for a vehicle to be used by City administration and anyone who needs to travel out of town, rather than paying mileage for personal vehicles. The City Manager stated he has revised the budget unit description and the major objectives to reflect support of the overarching goals. He noted that under accomplishments in the next budget, he plans to address the overarching goals as well. He then indicated that the performance measures have been written in a qualitative manner. Responding to Mayor Stiff, the City Manager noted that he had requested, and received, . an additional $5,000 last year to fund bringing trainers to Bozeman, and this year he is requesting that $15,000 be budgeted for that purpose. He recognized that the travel and training budgets for the other departments have been kept at the same level or lower than last year, but he feels that using his budget to bring trainers to Bozeman will be of greater benefit to the organization than sending individuals away to training sessions. Responding to Commissioner Youngman, the City Manager stated that bringing good quality training to Bozeman is expensive, and staff members should be able to accommodate the resulting amount of training time in their schedules. He also indicated that if an employee needs training to retain licensing or certification and there is not sufficient travel money in that budget unit, monies can be transferred from this line item to cover those costs. Responding to Mayor Stiff, the City Manager noted that 18 employees attended the . sessions by Mr. Starnes. He stated that, depending on the topics and possible restrictions on class sizes, he anticipates that 30 employees will be consistently reached with future training sessions. He also suggested that if the sessions have no size limitation, it may be possible to open them up to other communities or organizations, for a fee. He then recognized that the 06-18-98 Special -- _.~. .-. ---- --- -. .. - 6 - City has many excellent technicians; however, some of those technicians have been moved into administrative roles without receiving the needed training to develop their management skills. Commissioner Smiley suggested that training via satellite might be a viable alternative, noting that funding for that option might be considered in the upcoming capital improvement . program. City Manager Johnson noted that review of the individual budget units is complete. He then stated that some of the items which have been previously identified by the Commission have not been funded in this budget, including cable television franchising and water conservation. He suggested that if the Commissioners wish, they may add approximately $6,000 to the budget to fund the first phase of negotiating a cable television franchise agreement and could reappropriate the $5,000 appropriated this year for water conservation activities. Mayor Stiff stated that, throughout the budgeting process, the City has been attempting to deal with the problems of joint venturing, and characterized the library as a "lousy joint venture". He then stressed the importance of considering the City's position when proceeding . with this budget and identifying those areas where "the bleeding can be stopped". He recognized that, while this is a tough budgeting session, future years will be even tougher, and every effort must be made to make the necessary changes now. City Manager Johnson noted the County's reserve is currently at 35 percent. Responding to Mayor Stiff, Administrative Services Director Gamradt stated that the County contributes $266,950 to the Library, while the City pays $500,000 plus the general obligation bonds to construct the facility. Mayor Stiff then stated his general support for the budget as submitted by the City Manager, stating he feels few changes are needed. The City Manager distributed a list of questions and comments on the budget as submitted by Commissioner Frost. Responding to the City Manager, Commissioner Frost . indicated that the responses to the questions in this list will impact how he views some of the issues and requests submitted by the various department heads. Administrative Services Director Gamradt recognized that only $113,509 in new taxes will be generated as a result of last year's growth. He further recognized that this budget includes a proposal to spend $718,072 in reserves. He stressed, however, that these monies 06-18-98 Special --. ----------- - 7 - are to be expended on capital items and not on salaries and on-going expenses. He acknowledged that this type of spending cannot continue into future years, but he recognizes the importance of spending monies on capital items this fiscal year. Commissioner Frost stated one of his concerns is that the fire crews are running short . 66 percent of the time, thus limiting their ability to respond to emergencies. Mayor Stiff suggested that the mutual aid agreement with surrounding fire departments helps to minimize those impacts and allows for adequate emergency services. Commissioner Frost stated that, while he initially planned to argue against the expenditure of reserves to fund capital improvement items because it is deficit spending, he recognizes the need and is willing to support the expenditure as long as staff can assure him it will not negatively impact the City's financial position. He then stated that other large capital items loom on the horizon, and funding of those items in future years may also be extremely difficult because the reserves will be too low to use. City Manager Johnson stated that he, too, would be concerned about spending reserves except that, in this instance, the monies are being invested in the City's infrastructure. He then . noted that if the monies are not available, the capital improvement program budget can be adjusted to minimize the amount of monies expended on capital items in a given fiscal year. Commissioner Smiley stressed the importance of developing other sources of sustainable income and minimizing the City's reliance on property taxes. Under the Park Department issues identified by Commissioner Frost, Mayor Stiff noted the County is accepting cash~in-lieu of parkland dedications for agricultural lands while the city is providing the parks and recreational facilities for both city and county residents. He then indicated that he does support the creation of a park maintenance district, but stressed that those revenues should not be used to create a greater ability to spend in the General Fund. Commissioner Youngman noted that the City continues to accept parkland dedications in conjunction with new developments but is unable to develop or maintain those areas. She . then suggested the possible creation of a park district that follows the boundary of another existing district and includes a portion of the county. In response to Commissioner Frost's questions about the tree maintenance district, City Manager Johnson stated that the Forestry Division request is for the creation of a ten-month employee in addition to current staffing levels. 06~ 18-98 Special --- ----- ..--..-.-- .-- - - - 8 - Under water operations issues, the City Manager reminded the Commission that the third quarter budget amendments included $65,000 to begin an automated water meter reading system; however, those monies will not be expended by the end of this fiscal year and need to be rebudgeted. He then indicated that Montana Power Company is beginning to implement . this type of system for its electric and gas meters. project, when Administrative Services Director Gamradt stated that this entire completed, is projected to cost close to $1 million because every water meter in the community must be changed out, and those meters cost $90 to $100 each. He then indicated that this program will take several years to fully implement. Commissioner Rudberg and Mayor Stiff indicated they have no proposed additions to the budget. Commissioner Smiley indicated an interest in doing something about cable television franchising. Commissioner Youngman expressed an interest in rebudgeting monies for water conservation. She also expressed an interest in addressing the Library's request for a computer . technician, possibly through negotiating with the County to use one of their data processing people to respond to calls. She then indicated that she shares Commissioner Rudberg's concerns about the DARE program and whether it is cost effective, particularly since it is now fully funded on a local basis rather than through a grant. City Manager Johnson stated that this year's budget process was different from past years. He noted that the department heads met with Administrative Services Director Gamradt, who operated within established guidelines and parameters, and the department heads then had the ability to appeal those decisions. He noted that in no instance did he overturn the Director's decisions. The Commissioners concluded this work session, recognizing that at Monday's work session, they will identify any changes to the City Manager's recommendations in preparation . for the public hearing on June 29. Adiournment - 9:30 D.m. There being no further business to come before the Commission at this time, Mayor Stiff adjourned the meeting. 06-18-98 Special ----- --.----.. - 9 - e?~?? ~ ALF M. STIFF, Mayor ATTEST: · vol: y ~-4,~ ROBIN L. SULLIVAN Clerk of the Commission . . 06-18-98 Special