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HomeMy WebLinkAbout1997-06-12 Minutes, City Commission MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA June 12, 1997 ***************************** The Commission of the City of Bozeman met in special session in the Conference . Room, Municipal Building, June 12, 1996, at 6:00 p.m. Present were Mayor Stueck, Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman, Acting City Manager Brey, Administrative Services Director Gamradt and Clerk of the Commission Sullivan. Signing of Noti(;e of Special Meeting Each Commissioner, in turn, signed the Notice of Special Meeting. Work Session - Review of City Manager's Budget Recommendations for FY1997-98 This is the first in a series of work sessions on the City Manager's budget . recommendations for Fiscal Year 1997-1998. Acting City Manager Brey began by reviewing the process for developing the City Manager's budget recommendations for Fiscal Year 1997~ 1998 and how he envisions the remainder of the process. He noted that in March, packets of information were submitted to the department heads, to assist them in preparing their requests for the Fiscal Year 1997-1998 budget. He stated that the department heads were also asked to make their requests legitimate and real and, for the most part, he feels the responses met that request. Once all of the requests were received, he and Administrative Services Director Gamradt met with all of the departments to discuss needs, programs and requested expenditures. He noted that, once the total requested expenditures and projected revenues were developed, he and the Administrative Services Director worked to cut items from the budget requests, based on the information they . had received during the meetings with the department heads. He noted that a majority of those cuts occurred in the General Fund, where the impacts of 1-105 are most prevalent. He indicated that, during those cuts, he generally cut 10 percent from operating supplies, 10 percent from contracted services and 20 percent from travel and schools. He noted that the department heads were then given an opportunity to review the decreased budget, and 06-12-97 - 2 - rearrange the monies available as they deemed appropriate to best meet their needs for the upcoming year. He stated that the result, now before the Commission, is a balanced budget which includes an overall reduction in personnel and in spending. He cautioned that, because of the deep cuts that were necessary, the overall amount budgeted for contracted services "may be a little tight" in certain budgets. He then asked that the Commission consider the . budget as a whole, rather than identifying items in each of the budget units as the initial review begins. Acting City Manager Brey began review of the City Manager's Budget Recommendations for Fiscal Year 1997-1998, beginning with the Introduction section, highlighting some of the issues contained in the Transmittal Letter, as found on Pages 1 through 12. He cautioned that the value of a mill will not be known until at least mid-August, and it may be as late as September 1. Because of that, this budget process cannot be completed as early as the Commission had hoped. He further cautioned that six police officers and two engineers are on soft monies, and sources of revenues in the General Fund must be identified to absorb those employees if they are to be retained after the existing sources are . gone. The Acting City Manager reviewed how SB195, adopted in the 1997 legislative session, will impact the appraised values, beginning this fiscal year. He stated that, because of how SB 195 is written, it will take fifty years for the cyclical reappraisal for 1997 to be fully implemented, and the value for new construction will be 62 percent of the current market value. Administrative Services Director Gamradt stated there is a 2.11 total FTE reduction in personnel in this year's budget, even though the community is continuing to grow. He noted that over the past three years, 34 employees have been added, and the demands on those employees will not decrease over this coming fiscal year. Acting City Manager Brey cautioned that, given demands on City staff members and . the reduction in the staffing level, the level of service may be negatively affected. He cited, as an example, the fact that the City's Park Department crews may no longer be able to water the hanging flower baskets along Main Street because maintenance of new park areas takes precedence. He stressed that any cutbacks in service will be made as painless to the public 06-12-97 - 3 - as possible, indicating that all potential cutbacks will be viewed from the public perspective before any decisions are made. The Acting City Manager stated that the City has just received its notification on gas tax monies, and the figure is $15,166 greater than what is reflected in the budget. The Acting City Manager stated that a 4-percent increase in the operations costs for . 9-1-1 was proposed by the County. Also, the costs of the new 9-1-1 equipment are being reduced by identifying those items needed to create a good base system now and those items which are not required immediately but which can be added later if determined necessary. He further noted that the acquisition of one grant, the potential of receiving another grant, and the potential of receiving additional revenues from other entities involved in the program may further reduce the City's contribution, although he projects another $75,000 will be needed after this year's contribution to the program. The Acting City Manager noted that the salary increases for this fiscal year, for those bargaining units which negotiated contract last year, average 3.5 percent. He cautioned that many of the other major cities in the state have recently increased their salaries significantly, . making Bozeman's salaries look less favorable. He also noted that few applications tlave been received for some of the recent openings which the city has had. Commissioner Stiff asked for a listing of the jobs for which funding is soft, the amount of money that will be needed from the General Fund to maintain those positions and when the money will be needed. The other Commissioners concurred that information would be helpful. Acting City Manager Brey reviewed the summary of staffing changes, as found on Page 8. He stated that the 1.7 decrease in Public Service/Engineering includes the GIS position, which has not been filled, a .25 intern position and .45 in an engineering position in the sidewalks and weed programs. He also indicated that one position is to be eliminated between the streets and solid waste collection activities. . Administrative Services Director Gamradt reviewed the revenues portion of the transmittal letter, noting that he has projected a 3. 5-percent increase in the value of a mill in the preparation of this proposed budget. He stated that the overall mill levy is increased 2.21 mills because of the increased debt service requirements for the transportation general obligation bonds. 06-12-97 ----------- -----. .--.....----.- -..---- -- ~ 4 - The Administrative Services Director recognized that the City is not doing as well on its capital improvements program as it could be. He noted that, because so little funding is available for this program, it is extremely difficult to create and update a comprehensive and meaningful program. He then indicated a willingness to concentrate on that program more, beginning this year. . Acting City Manager Brey stated this budget has been as responsive to the Commission's goals as possible, noting that the goals and the funding for those goals are identified on Pages A-1 through A-5. During that review, he cautioned that FCC regulations for radios change in 2003, which may result in the need to change out all of the radios in the City's system. The Acting City Manager then stated that the City's fiscal policy is contained on Pages A-7 through A-16, and the only change is under No.2 on Page A-14, in light of a recent Commission discussion. Responding to Commissioner Stiff, Administrative Services Director Gamradt stated that the City may pursue a special voted mill levy to fund the capital improvements program, . and it may be possible to make it a multi-year mill levy. Commissioner Stiff expressed concern that, at the present time, the City's capital improvement program funding source is a trickle down from residual funding from the previous fiscal year. The Acting City Manager completed review of the first section of the budget, as contained on Pages A-17 through A-28, noting there are no changes in the financial structure or budget process portions of the document. Administrative Services Director Gamradt briefly reviewed the Summaries portion of the budget. He highlighted the mill levies for the past two fiscal years and the summary pages for expenditures and the charts reflecting various breakdowns on the revenues. Responding to comments from the Commissioners, Acting City Manager Brey . encouraged them to consider negotiations with the County Commission to ensure that if they take over the extraterritorial jurisdictional area, as desired by the property owners in that area, the review process remains essentially the same as it is now, with the County Commission making the final decision. He then noted that the County cannot provide urban services, and 06-12-97 - 5 - it would be in everyone's best interests for the two governing bodies to negotiate an agreement and process that is beneficial to all. The Commission began review of the individual budget units, beginning with those for which other department heads are not needed. City Commission. The only change from the figures submitted by the Commission . is the addition of a transfer from the General Fund to the City-County Planning operation. City Manager. This budget reflects the contracting for negotiation services and a reduction in travel. Responding to Mayor Stueck, the Acting City Manager stated that two training sessions on performance appraisals have been conducted for department heads and supervisors, and the Personnel Director has developed some performance appraisal forms. Administrative Services Director Gamradt stressed that the only way that performance appraisals work is to mandate it from the top down. He noted that if the management team is evaluated on whether they evaluate those supervised, then it is more likely to be done. Concurring with comments from Commissioners, the Acting City Manager stated that . performance appraisals can be used to both address a problem employee and promote a good employee. Acting City Manager Brey encouraged the Commissioners to consider the future facilities needs for the City, particularly in light of the growing community. He reminded the Commissioners that the Chronicle building is on the market, and staff has been working with the Mayor on the possibility of pursuing acquisition of that building and sale of the Carnegie Building to provide the additional office space needed to accommodate existing and future staff. He stressed that a deed restriction would be attached to the Carnegie Building, to ensure that it would not be demolished, except in the case of a natural disaster, such as an earthquake. He noted that, in the right private hands, the building could be much better cared for than if the City retains possession. . The Acting City Manager also noted that the City Hall Complex needs some maintenance that has been deferred as well as some upgradinrJ. He then identified some possible funding alternatives for the Commission to consider, including a special voted mill levy, an INTERCAP loan, and a general obligation bond. 06-12-97 - 6 - Commissioner Stiff noted that the loan for the Law and Justice Center is repaid in 1999 and the Library bonds are paid off in 2000. Finance. The Administrative Services Director stated that the parking clerk for City Court will relocate from the Law and Justice Center to City Hall within the next month. He stated that this budget also includes new software for the mainframe computer. . Building Maintenance. This budget unit includes the City Hall Complex, Carnegie Building and City Shops. Insurance. This budget unit includes monies to cover the premiums for health insurance, liability and property insurance premiums. The Administrative Services Director stated that the insurance premiums increased by 5.9 percent this year. He then indicated that, following the change in coverage which the City implemented a couple of years ago, the City's premiums are significantly lower than they were. Employee Retirement. This budget includes monies to cover the City's contribution to the Public Employees' Retirement System, Police Retirement System and Firefighters . Retirement System. Lighting Districts. Administrative Services Director Gamradt noted that the City pays the energy costs billed by Montana Power Company for the entire fiscal year, then bills those costs against the property owners in each of the various lighting districts. ADA. Acting City Manager Brey stated that in past fiscal years, he has worked with the Coalition of Montanans with Disabilities to ensure that their priorities were addressed. He noted those priorities revolved, in large part, around installing ramps in sidewalks around the community to increase accessibility. He stated that, beginning this fiscal year, the monies have been earmarked to bring the City facilities up to standard. He also indicated that these monies are being used to ensure responsiveness to legitimate employee needs, such as wrist rests for carpal tunnel syndrome. . Downtown Improvement District. This budget unit provides spending authority for the tax increment monies which the Downtown Bozeman Improvement District Board has available through this fiscal year. The Commission concluded its review of the budget recommendations at this point and turned its attention to setting the schedule for remaining work sessions. Following 06-12-97 - 7 - discussion, it was determined the work sessions will be held from 6:00 p.m. to 8:00 p.m. on Tuesday, June 17; Thursday, June 19; Tuesday, June 24; and Thursday June 26. Also, on June 30, during the regular work session, the Commission could possibly identify areas where possible changes might be made between the City Manager's recommendations and the tentative appropriation ordinance. . Adjournment ~ 9:02 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost. seconded by Commissioner Stiff, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Stiff, Commissioner Rudberg, Commissioner Youngman and Mayor Stueck; those voting No, none. { Otfr7 ;: ~_-L DON E. STUECK, Mayor ATTEST: . (k;/~ ROBIN L. SULLIVAN Clerk of the Commission . 06-12-97