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HomeMy WebLinkAbout1998-06-02 Minutes, City Commission - u_____ --------...-.-.- MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA June 2, 1998 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room, Bozeman Professional Building, June 2, 1998, at 5:00 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. Sianing of Notice of 5Decial Meeting Each Commissioner, in turn, signed the Notice of Special Meeting. Work Session - Review of City Manaaer's Budget Recommendations for FY1998-99 This is the first in a series of work sessions on the City Manager's budget . recommendations for Fiscal Year 1998-1999. City Manager Johnson began by reviewing the process for developing the City Manager's budget recommendations for Fiscal Year 1998-1999, through the use of a power point presentation. He reminded the Commission that this year, staff took the first steps toward changing how the budget is prepared and viewed, converting toward an outcome based document. He noted that this process will optimistically take three years, and probably closer to five years in reality. He indicated that with this change comes more accountability, both to the Commission and to the citizens of the community. The City Manager characterized the budget as a written financial plan, in which the anticipated revenues and expenditures are projected, and it can be amended to accommodate unanticipated revenues and expenditures through the budget amendment process. . City Manager Johnson stated that during this past year, an intern has looked at the possibility of privatizing some of the City's services. The result of that study has revealed that the economy of scale drives many of the benefits of privatization; and, to a large extent, that scale does not exist in the City of Bozeman's structure. He suggested, however, that the City crews be afforded the opportunity to participate in the competitive bidding process for 06-02-98 Special u__.__ -.--. - 2 - providing services. He also suggested that contracts be awarded through competitive performance based contracts. The City Manager noted that this budget document includes efficiency and effectiveness measures being identified for the individual budget units. He recognized that this . is the first year for this new format and stressed that "we're good, but we plan to get better", He encouraged the Commissioners to carefully review these items and to ask the critical questions which will help staff to prepare a better document next year. City Manager Johnson reminded the Commission that staff has developed a mission statement, a vision statement and overarching goals for the City, and those statements have been posted in City Hall and are included in this document. He noted that staff has recognized the need to add another overarching goal pertaining to public safety but, to date, has been unable to reduce that goal to words that are acceptable to everyone. City Manager Clark Johnson asked the Commissioners to become partners in this conversion process. He noted that this can be accomplished by not only asking the questions which will assist staff in becoming better and by identifying strengths and weaknesses in the . budget but through holding staff accountable and rewarding the right behaviors. He also asked that they identify the performance measures in the budget that they like, so that future documents can be more closely patterned after them. Administrative Services Director Miral Gamradt stated the budget document reveals that some departments adapted readily to the new process while others did not. He noted that during the 1 Y2 -day training session for senior staff on this new process, it was very obvious that some of the members understood the change while others did not. Assistant City Manager Ron Brey stressed that some programs in the City lend themselves well to this type of conversion while others do not. He encouraged the Commissioners to take this into consideration as they review the new budget format. The Administrative Services Director stated that Ken Weaver, Local Government . Center, has stressed the importance of this process being from the bottom up instead of from the top down. He noted that, while top administrative staff could have written the performance measures and the effectiveness and efficiency measures for the departments, the buy-in is greater when less well-written statements are generated by "those in the trenches". 06-02-98 Special ----- ------ - .---- - - ~ ----.. - 3 - He suggested that over the next few years, with guidance from the Commission, those statements should improve. Commissioner Rudberg stated that she operated under this type of structure with AT&T for thirty years, and she understands and appreciates the conversion. She stressed that . annual performance reviews are an extremely important part of this new approach, so that staff members know whether they are headed in the right direction. City Manager Johnson recognized that he has failed in his effort to get out and work with the City employees. He noted, however, that in the brief opportunities he has had, he has found that the employees know what they are doing, and they do it well, even though they may not be able to express themselves well on paper. Commissioner Smiley suggested that people be encouraged to set daily goals for themselves, as the first step in this conversion process, if they are encountering difficulties with it. City Manager Clark Johnson began review of the budget document which has been distributed to the Commissioners, covering Pages 1 through 8-14, which include the . Introduction and Summaries sections of the document. He drew the Commissioners' attention to the fact that staff is proposing to draw down reserves in the General Fund by $718,000 and overall by $2,879,999 to cover the amounts appropriated in this budget. He stressed that this is a conscious decision, with a majority of those monies being used to fund capital and infrastructure, which he views as an investment in the community. He briefly reviewed the handful of the big ticket items which comprise the majority of these figures. The City Manager recognized that some concerns have been expressed about the drawing down of reserves. He reviewed the fund balances at the end of Fiscal Year 1999, as projected in this budget, noting that the projected balance in the General Fund is right at the 8-percent figure identified in the City's fiscal policies, plus amounts for cash flow and fixed asset acquisition. He also noted that the $2 million carry-over will cover the City's costs for the five~month period between July . and November, when property tax revenues are collected. Administrative Services Director Miral Gamradt stated that the City Manager has brought with him a desire to invest in capital equipment and technology for the employees. He noted that these investments will help employees respond to demands in the best way possible. He also noted that this is the first year that the capital improvement program items 06-02-98 Special -- ... -- ---.-.. --------- .---.....-------- .------ .. - 4 - for a specific fiscal year have actually be inserted into the budget as an initial step in the process and then allowed to remain there as cuts were made. He suggested that this commitment to funding of capital items may change the manner in which staff members approach the capital improvement program in the future. He then noted it appears there is an . increase in personnel in this budget. In reality, those positions are generally temporary in nature or are needed to provide some of the technological changes which have been identified as desirable. Responding to Commissioner Frost, the Administrative Services Director stated that the capital improvement program working document will be revised in the late fall or early winter, in preparation of the next budgeting process, and may also need to be revised as a result of impact fee rates and projected revenues. He noted that, in the meantime, staff will monitor the revenues which support the capital improvement program, paying special attention to the impact fees, and forward recommendations for revisions as necessary. Administrative Services Director Gamradt highlighted some of the points contained in the Budget Message. He noted that the Water Fund is in good financial condition; the . Wastewater Fund is getting better, although it remains in poor condition; and the Solid Waste Fund is in extremely good financial condition. He cautioned that the City must set aside adequate monies for closure and monitoring of the landfill for a thirty-year period; and those restricted monies are currently reflected in that balance. City Manager Johnson stated that negotiations with firefighters are nearly complete; they are progressing well with the police officers; and the Montana Public Employees Association has indicated a desire to begin negotiations. He then turned his attention to the listing of staffing changes within the budget, which include the moving of several employees between departments and an overall increase of 5.46 FTEs. He gave an overview of some of those changes in staffing, characterizing them as the result of management philosophy and the desire to create better efficiencies. He stated that a conscious decision has been made to . undertake updating of the Master Plan in-house. As a result, the budget includes two temporary planners, who will be assigned to current project reviews to allow two of the more long-term planners to work on the update. Also, the GIS position is to be filled, and it is anticipated that individual will help to enhance the City's technological support. 06-02-98 Special - 5 - Administrative Services Director Gamradt reviewed the section on revenues, noting that several of the revenue sources for the General Fund have increased over the past ten years, as reflected in the tabulations in the Budget Message. He then indicated that a 1 Y2 mill increase is proposed to generate the revenues necessary to meet the transportation general . obligation bond issue debt service obligations for the upcoming fiscal year. He aiso noted that the budget is based on a projected 3 Y2 -percent increase in the value of a mill. Responding to City Manager Johnson, the Commissioners indicated an interest in proceeding through the entire budget process, even if the value of the mill is not known, recognizing that adjustments may be made as necessary after the budgeting process is complete. Responding to Mayor Stiff, the Administrative Services Director confirmed that staff is closely monitoring the carry-over in the Building Inspection budget unit to ensure that it does not exceed twelve months of expenditures. Administrative Services Director Gamradt stated this is the second year since 1986, when 1-105 was implemented, that the staff has recommended the maximum allowable mill . levy be assessed. City Manager Johnson noted that, beginning on Page A-4, staff has identified how this budget document addresses each of the seven overarching goals which have been developed by staff. He noted that it also identifies issues not addressed in the budget. Administrative Services Director Gamradt noted that the City's Fiscal Policy, Financial Structure, Budget Process and Organizational Structure are contained on Pages A-12 through A-32 and are virtually unchanged from previous years. The Administrative Services Director drew the Commission's attention to the Summaries portion of the document, noting that the first page contains an overview of the beginning balance, revenues, expenditures and ending balance for each of the fund types while the following pages provide more detailed information on the revenues for each fund type. He . stated the pie chart on Page B-3 reveals that 52 percent of the appropriations are for operating expenses while 34 percent are for personnel. The Commission thanked staff for the presentation. 06-02-98 Special -- -----.--.- - 6 - Adjournment - 7:00 D.m. There being no further business to come before the Commission at this time, Mayor Stiff adjourned the meeting at 7:00 p.m. . ~~~~ ALF D M. STIFF, Mayor ATTEST: 9tk J~~ ROBIN L. SULLIVAN Clerk of the COl)lmissibn . . 06-02-98 Special