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HomeMy WebLinkAbout1996-07-16 Minutes, City Commission ----.,.- -'-.- - MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 16, 1996 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room, Municipal Building, July 16, 1996, at 4:00 p.m. Present were Mayor Stueck, Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman, City Manager Wysocki, Administrative Services Director Gamradt and Clerk of the Commission Sullivan. Signing of Notice of Special Meetina Each of the Commissioners in turn signed the Notice of Special Meeting. Work session - Review of City Manager's Budget Recommendations for Fiscal Year 1996-1997 This is the second in a series of work sessions on the City Manager's . recommendations for the budget for Fiscal Year 1996-1997. Since this is a work session, the minutes are abbreviated. City ManagerWysocki and Administrative Services Director Gamradt continued review of the City Manager's recommendations, covering the remainder of the Introduction, including the Fiscal Policy, Financial Structure, Budget Process and City Organization, the Summaries and the beginning of the General Fund portions of the budget recommendations, which cover Page 7 through Page 59 of the document. Commissioner Rudberg recognized that this budget process will be a difficult one. She then encouraged all Commissioners to forward their comments and concerns, but asked that disagreements be maintained at a high level. . Commissioner Stiff stated that the Commission goals are the basis for the budget, but the budget, as presented, does not seem to follow the high priority goals. He noted that those goals affect several different departments, including solid waste, wastewater, water, police, fire and parkland. Commissioner Frost suggested that time be set aside to discuss the goals further, and questioned whether steps need to be taken to increase revenues so those goals may be met. 07-16-96 Special ...---.--. -- -. .- ------------ . . ..---.--.---..-.--.-.---.. - - - 2 - Commissioner Youngman arrived at 4: 1 0 p.m. Commissioner Stiff noted that on November 6, 1995, the Commissioners received a few pages of the draft water facilities plan and the wastewater facilities plan, which had been received by the City on May 3, 1995. He noted that was fifteen months ago, and the final . documents have not been received to date. Commissioner Stiff then expressed concern that many of the issues and concerns which were forwarded by staff during the goal setting process are not addressed in this budget as proposed. He stated that, before he can vote to support the budget, the high priority goals must be addressed in a serious manner. Commissioner Frost suggested that if the Commission wishes to add items to the budget, he feels that staff needs to inform the Commission what options are available. He stated that, until those options are known and the total monies available, no final decisions can be made. Responding to Commissioner Rudberg, Administrative Services Director Gamradt stated that general fund monies may be used for any public purpose, as appropriated by the . Commission. He reminded the Commission that, while generally the same, property tax payers, water rate payers and wastewater rate payers are three different groups. He then noted that an internal loan could be made to the wastewater fund if the Commission so chooses. Commissioner Youngman stated she feels it is important to consider staff's reservations about any changes which the Commissioners may propose to the budget. She also suggested that the Commissioners review the entire budget, so they understand the big picture, before making changes to the budget as proposed. She noted that during the review process, the Commissioners should identify those items to which they would like to return. Commissioner Stiff suggested that the Commissioners take as many steps as possible to avoid going through the entire process twice. . The City Manager distributed copies of the mill value to the Commissioners. noting that the value of a mill is $36,286. Responding to Commissioner Youngman, Administrative Services Director Gamradt stated that, because the actual value of the mill is approximately $200 less than was anticipated, the revenues from that source will be a total of $22,828 less than projected in the budget. He noted that of that amount, 63 percent, or $14,413, is general fund money. 07-16-96 Special ----..---.- ...---... .. __ .___.___ ._ ___... _..._. .._..___n_______ - -.., - ,.-- .,. ___.., - - ._u ~ 3 - Administrative Services Director Miral Gamradt stated that, as a result of last Thursday's meeting, he contacted D.A.Davidson about the issuance of revenue bonds for the wastewater fund. He stated that revenue bonds are not an option at this time; however, the gentleman at D.A.Davidson suggested that the City consider the State Revolving Fund (SRFj . program, which is administered by the Department of Commerce. He stated that under that program, monies may be borrowed for a maximum of twenty years; and the current interest rate is 4 percent. He noted that $300,000 in SRF monies are already contained in this proposed budget, for enlargement of the sludge ponds at the Wastewater Treatment Plant. He cautioned that, to qualify for this type of funding, the project must be identified in the current facilities plan. He further cautioned that the City must be able to demonstrate that it meets the coverage requirements to meet the indebtedness and repay the bonds. Responding to Commissioner Stiff, the Administrative Services Director stated that guaranteeing the bonds from the general fund could have a detrimental effect on that fund in the future, particularly if general obligation bonds are being considered. He indicated there is . no maximum on the amount that may be borrowed, except for the demonstrated ability to repay the monies. Responding to Commissioner Frost, the City Manager stated he is meeting with Director of Public Service Forbes and City Engineer Brawner tomorrow regarding the facilities plan. City Manager Wysocki turned his attention to continued review of his budget recommendations by briefly highlighting the Fiscal Policy, beginning on Page 7. Responding to Commissioner Stiff, Administrative Services Director Gamradt stated that the amounts of the designated and undesignated reserves are subtracted from the total amount of reserves to determine the monies available for fixed asset acquisitions. He cautioned that the exact amount of that reserve will not be known until after the Fiscal Year 1996 books . have been closed, which will probably be in October. City Manager Wysocki reminded the Commission that, until five years ago, the City did not have a fixed asset replacement reserve. He noted that for the past five years, the monies not spent in a fiscal year have been transferred into this reserve along with unanticipated revenues. He noted that during the past two years, a significant amount of those monies have been spent on one-time items such as North 19th Avenue, ADA projects, 07-16-96 Special .---.--....- .-- --- .--. -- .._------_.~---- -.---.-.-----. - 4 - community housing fund, replacement of the main frame computer and the City's share of the Law and Justice Center improvements. City Manager Wysocki briefly reviewed the Financial Structure, The Budget Process and City Organization sections of the Introduction. He then turned his attention to the . Summaries section, covering Pages 33 through 45. He noted that this year's proposed mill levy is 4.61 mills lower than the 1-105 cap. He cautioned, however, that at the rate with which the mill levy has climbed over the past few years, the City will be impacted by the 1-105 cap during next year's budgetary process. Responding to Mayor Stueck, the Administrative Services Director stated that including depreciation in the budget serves no valuable purpose and results in inflated figures. He noted that the Commission had made a conscious decision to fully fund replacement of "rolling stock"; however, debt is to be used for larger capital projects to spread the costs over a longer period and possibly more residents. He indicated that each individual asset has a depreciation schedule of its own, even though it is not reflected in the budget. Commissioner Youngman suggested that, since the revenues from taxes on business . equipment are beginning to decrease and since the State's contribution to Cities is beginning to sunset, it might be beneficial to separate that funding source from the other tax sources so that its decline can be identified. Administrative Services Director Gamradt stated that the decrease in the tax on business equipment is reflected in the value of a mill. Commissioner Stiff suggested that the revenues from the 25-percent surcharge in the wastewater fund be listed on a separate line, rather than lumped into the line entitled "user fees" . Commissioner Frost and Mayor Stueck stated support for that proposal. City Manager Wysocki began the review of the individual budget units, beginning with the General Fund. . City Commission. The City Manager reviewed this budget unit, cautioning that no monies have been budgeted for any special elections this fiscal year. At the City Manager's request, the Clerk of the Commission reviewed the information she had received from the Clerk and Recorder's Office today. She noted that the Study Commission's question on the November 1996 general election ballot is estimated to cost between $500 and $2,000, with the assurance that the costs will not exceed $2,000. She 07-16-96 Special ----.- ------ ~ 5 - stated that the City must bear the total costs of any other elections during the remainder of the fiscal year, and those costs will be around $6,500 per election. Responding to Commissioner Youngman, the Clerk indicated that approximately $3,200 was budgeted for the purchase of a computer and software for the bulletin board . service in last fiscal year; however, the purchases were not completed. Commissioner Youngman encouraged the Commissioners to consider adding that item back into this year's budget, noting it is the most economical way to provide public access to the City's documents. Commissioner Frost noted that this was a high priority in the Study Commission's survey results. Mayor Stueck questioned the expenditure of $8,500 for subscriptions and dues plus $6,000 for travel and schools, suggesting that some of the items should be deleted, including the $1,500 for attendance at the National League of Cities conference. Commissioner Frost stressed the importance of the City remaining a member of the Montana League of Cities and Towns, noting his preference is that the City continue as a . member of the National League of Cities as well. Commissioner Rudberg stated her interest in obtaining a listing of the contributions from Gallatin County and the City of Belgrade to the Gallatin Development Corporation (GDC). She recognized that it is too late in the year to delete funding support for the GDC this year; however, she suggested that the City's contribution should be forwarded with the warning that this source of funding may not be available in future years. Commissioner Youngman asked if it would be possible to fund the City's contribution to the Gallatin Development Corporation through the CDBG Economic Development Revolving Loan Fund rather than through the General Fund. Commissioner Youngman noted that in the last two years' budgets, this is the budget . unit in which the transfer from the General Fund to the Community Affordable Housing Fund has been budgeted. She asked when the Commission wishes to discuss this issue, stating she does not wish to discuss it twice. The Commission concurred that it should be discussed in conjunction with all other possible changes to the budget. City Manager. Commissioner Rudberg noted that this budget unit includes a 07-16-96 Special ----..---.-----.--.. . - 6 - membership in the Downtown Bozeman Association (DBA). She asked if this membership is for the entire City, noting a recent claim paid from the Library to the DBA. Public Service/Engineering. The City Manager stated that the decrease in full-time equivalents is due to a shifting of salaries for some of the engineers to other funding sources, . such as the enterprise funds, the general obligation bond issue and the special projects. He also noted that the GIS Coordinator position has been transferred from the Planning budget unit to this budget unit, since the Engineering Department has spearheaded that effort. Commissioner Stiff expressed concern that four of the top five Commission goals for the upcoming fiscal year are the primary responsibility of the Director of Public Service. Commissioner Stiff then asked what other Cities In Montana are currently implementing or have implemented a GIS system. The City Manager responded he is unable to answer that question at this time. Commissioner Frost noted that he has a commitment at 6:00 p.m., and asked that he be excused. . Adjournment - 6:00 c.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Rudberg, seconded by Commissioner Stiff, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman and Mayor Stueck; those voting No, none. (D~ Z $~~ . DON E. STUECK, Mayor ATTEST: .~.~~ Clerk of the Commission 07-16-96 Special