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HomeMy WebLinkAbout1996-07-11 Minutes, City Commission --.-- ---- .---.-...---.-- ------ -~._--- ---..---.----.- _._n_ _.. _. _. MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 11, 1996 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room, Municipal Building, July 11, 1996, at 7:00 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 SDecial 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 first 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 Manager Wysocki and Administrative Services Director Gamradt began review of the Introduction section of the City Manager's recommendations, including the Budget Message and Policy Direction portions of the budget recommendations, which cover through Page 6 of the document. The City Manager noted that this budget contains approximately $5.9 million in carry- over projects from last year, including $4.5 million in general obligation bond monies for transportation projects and $1.2 million in special projects which are funded through Valley Unit funds. He cautioned that, because of the class action lawsuit challenging the legality of the . Department of Revenue's computer assisted mass appraisal system, the County has withheld $110,573 in May property taxes. He cautioned that this lawsuit could further impact the City's revenues for the upcoming fiscal year. City Manager Wysocki noted that the Water Fund is in good financial condition, and this budget reflects only a slight decrease in its balance. In the Wastewater Fund, however, a $700,000 negative balance is anticipated at the end of Fiscal Year 1996; and expenditures 07-11-96 Special .--.----- - 2 - for the Bozeman Solvent Site are anticipated at $700,000 for Fiscal Year 1997. The City Manager cautioned that, despite the 25-percent surcharge which the Commission has implemented, it is anticipated this fund will recover more slowly than anticipated because of higher than anticipated costs for the solvent site. . Responding to Commissioner Stiff, the City Manager indicated that the projected costs for the solvent site for this upcoming fiscal year are $225,000 higher than the figures upon which the surcharge was based. Commissioner Frost arrived at 7: 15 p.m. The City Manager stated that the Solid Waste Fund is in good financial condition, despite the fact that cash was paid for the expansion project last year, which cost $2 million. He indicated that this budget, as submitted, does not reflect an automated garbage collection system. Responding to Commissioner Rudberg, the City Manager indicated the life of the landfill is estimated at twelve to fourteen years. Commissioner Stiff noted that there is no schedule in this document which . summarizes the short-term and intermediate-term financing. He noted that, since such financing commits future Commissions, it would be beneficial to have those loans listed, with the payback schedule. He recognized that the information is currently in the budget, but it is scattered throughout the various budget units. Administrative Services Director Gamradt recognized that that information would be beneficial, and he will prepare such a schedule to be included in the appendix. The Administrative Services Director mentioned that under this proposed budget, appropriations exceed revenues by approximately $31,000. City Manager Wysocki reminded the Commission that $100,000 has been budgeted in the City Commission's budget unit in each of the last two years, as a transfer to the . Community Affordable Housing Fund. He stated that, based on recent Commission conversations, that transfer has not been included in his budget recommendations. Commissioner Youngman stated the Commission has not formally discussed this issue, and requested that it be placed on an upcoming agenda. Responding to questions from Commissioner Rudberg, the City Manager stated that the 25-cent-per-month assessment on telephone bills for 9-1-1 services is distributed by the 07-11-96 Special - 3 - State, with the City receiving all of the assessments on 586 and 587 telephone prefixes, and the County receiving the assessments for all other prefixes in the county. He estimated that the City's portion is approximately $50,000 annually, and it is now one of the sources of revenue for the 9-1-1 center. He indicated that the City has agreed to bear 45 percent of the . costs of operating the 9-1-1 dispatch center, which is now operated by an independent board. Responding to Commissioner Stiff, Administrative Services Director Gamradt stated that a separate ADA budget unit has been created. He noted that while many of the projects are funded through that budget unit, staff recognizes the intertwining of ADA projects into larger construction projects. He indicated that, because of this intertwining, it is extremely difficult to separate out the ADA projects and, therefore, they are found throughout the budget. The City Manager noted that, effective July 1, 1996, the Building Inspection budget unit was moved to Special Revenue Funds, to allow for accurate tracking of expenditures and revenues. Under review of the Study Commission's budget unit, the City Manager noted that the Study Commission's expenditure request has been forwarded, plus $7,000 for an election; . and the levy of one mill which they requested is included in the revenues. Ms. Jennifer Smith Mitchell, Chair of the Local Government Study Commission, forwarded her dislike for having the election cost included in this budget unit, particularly at the level of funding included. She noted that, since their election is to be held in conjunction with the general election, the costs will be very minimal. She feels the Study Commission should be frugal in its expenditure of taxpayer monies, and having $7,000 for an election included in their budget is inappropriate. Administrative Services Director Gamradt stated that the $7,000 appropriation authority for election costs is well within the amount of cash that will be available in the Study Commission fund. The Study Commission will end Fiscal Year 1995-1996 with an approximate . $20,000 cash balance. In addition, the Study Commission requested that one full mill be levied for Fiscal Year 1996-1997, which will produce over $36,000, for total funds available in excess of $56,000; and the proposed appropriations total $37,125. Ms. Mitchell stated the Study Commission does not want to tax any more than necessary. The Administrative Services Director responded that the budget includes the one full mill as requested by the Study Commission in a letter to the Mayor. 07-11-96 Special - 4 - City Manager Wysocki stated that a copy of the Study Commission's letter will be forwarded to the Commission, as a reminder of their request. The City Manager highlighted the changes in staffing levels for the upcoming fiscal year, noting that an increase of 1.4 full-time equivalents in budgeted positions is proposed. . City Manager Wysocki and Administrative Services Director Gamradt reviewed the various revenue sources, identifying those which are volatile and require close monitoring. Those revenues include the building permit fees, and staff recognizes that those must be very closely monitored since they will serve as the only major source of revenue for the Building Inspection budget unit beginning this fiscal year. The City Manager stated that this budget was prepared with the assumption that the mill value would increase 5 percent. In reality, the mill value increase is 4.5 percent, which decreases the anticipated revenues from property taxes by approximately $23,000. He reminded the Commission that Bozeman's mill levy, as proposed in this budget, is 4.61 mills below the 1-105 limit, noting that Bozeman is probably the only City in the state operating on a mill levy which is lower than the limits of 1-105. . City Manager Wysocki turned his attention to the City Commission's five top priority goals and the budgetary responses, as contained in the Policy Direction portion of the document. He indicated that they are self-explanatory and encouraged the Commissioners to forward any questions. Commissioner Stiff noted that the second goal, pertaining to water and protecting the City's water rights, is essentially the same as last year's, which means that action on that goal has been delayed for a year. He encouraged staff to take _ whatever steps are necessary to ensure that the City's current water rights are protected during this fiscal year. Commissioner Stiff then expressed his concern that only $188,000 has been budgeted for the Commission's top priority goal to address sewer line deficiencies. . A lengthy discussion followed, in which the financial health of the Wastewater Fund, the costs of the Solvent Site, the 25-percent surcharge, and the costs of borrowing for a fund with a negative cash position were discussed. As a result of that conversation, the Commission asked the Administrative Services Director to broach the subject of borrowing with local underwriters to determine how expensive it would be to borrow monies for the 07-11-96 Special - ____u - 5 - Wastewater Fund with its current deficit position and when the City could anticipate borrowing monies without being penalized because of the Fund's cash position. Responding to Commissioner Youngman, the City Manager indicated that the analysis being prepared by HKM has not yet been completed. He assured the Commissioners that as . soon as the report has been completed, copies will be forwarded to them. Commissioner Youngman suggested that, until the lines have been checked and the report received, the City is not in a position to begin sewer line renovations in any type of logical sequence. She indicated that, with the monies budgeted for this fiscal year, those steps can probably be accomplished. City Manager Wysocki suggested that the Commission may choose to borrow monies for sewer line renovations at a high interest rate, rather than waiting until the fund has recovered sufficiently to borrow at a favorable interest rate. Adiournment - 9: 15 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. O~L~ DON E. STUECK, Mayor ATTEST: ~ J~ ROBIN L. SULLIVAN Clerk of the Commission . 07-11-96 Special --~ --- -- --