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HomeMy WebLinkAbout1995-07-24 ccmWORK MINUTES OF THE WORK SESSION OF THE CITY COMMISSION BOZEMAN, MONTANA July 24, 1995 ***************************** . The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, July 24, 1995, at 3:00 p.m. Present were Mayor Vincent, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City Manager Wysocki, City Attorney Luwe, Administrative Services Director Gamradt and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. Work session - (A) Presentation of award from HUD for use of CDBG monies for housing (B) Analysis and review of buildina permit activities for this calendar year (C) Continued review of City Manager's Budget Recommendations for Fiscal Year 1995-1996 (A) Presentation of award from HUD for use of CDBG monies for housing Mr. Dick Brinck, State Coordinator for the U.S. Department of Housing and Urban . Development, presented to the City an award for "excellence in housing -- Affordable Housing Land Trust", dated June 26, 1995 and signed by Henry G. Cisneros, Secretary of Housing and Urban Development. Mr. Brinck noted that land is an issue which raises the cost of housing above the affordable level and, through the land trust concept, the Human Resources Development Council has been able to provide housing units, both for purchase and for rent, which are truly affordable. He stated that this is an accomplishment of which HRDC, the City and the community should be proud. Mr. Brinck noted that if the program had not been successful, the City Commission would have taken the heat. He stated that the Commission should be willing to accept the congratulations at this timet since the program is truly successful. On behalf of the Commission, Mayor Vincent accepted the award. He recognized that . the Commission played only a small part in obtaining this recognition, noting the importance of HRDC's efforts. (B) Analysis and review of building permit activities for this calendar year Planning Director Andy Epple distributed copies of the year-to-date building permit activities through June, noting that the monthly report for June has not yet been completed. 07-24-95 - 2 - He highlighted much of the information on the first page, which shows a 13-year building permit breakdown and comparison for the month of June as well as the year to date. He stated that more building permits were issued in June of this year than in any of the past 13 years, with a substantially higher valuation; and the number of housing units covered by those permits . are among the highest. The number of permits issued to date is higher than in past years; and the number of housing units is rapidly catching up with past years. The total valuation is slightly lower than last year's, which included the engineering building on campus. The Planning Director stated that the list of permits issued during June for new construction shows a healthy mix of single-family, duplex and townhouse units. Also, there is a substantial amount of remodeling, re-roofing and construction of new garages in established areas. Commercial construction is also continuing, with several permits reflected in this listing. The Planning Director stated it is anticipated that several residential projects will be undertaken in the next few months, including Comstock Apartments and the first phase of the Acadia Gardens project. . Planning Director Epple stated that the Building Division is currently operating with three inspectors and one secretary. The office is still trying to meet the policy for a ten-day turn-around on permit applications for smaller residential projects. The Director noted that, with the additional reviews necessary for commercial projects, the review time lengthens to three to four weeks. Responding to questions from the Commission, the Planning Director stated that major site plan reviews typically take six to eight weeks. After that process has been completed, it often takes four to six weeks to complete the final plans and obtain all easements and other legal documents needed before a building permit can be issued. Responding to Commissioner Frost, the Planning Director stated that this process takes longer than it did under the old zone code; however, the new code does provide more . flexibility. Discussion - FYI Items The City Manager presented to the Commission the following "For Your Information" items. 07-24-95 ._____n____. _.n... - 3 - ( 1 ) Letter from residents in the South Rouse Avenue area regarding a proposed group home at 1808 and 1810 South Rouse Avenue. (2) Letter from the Gallatin County Council on Aging, dated July 12, in support of the GalaVan, and additional public/senior transportation in the Bozeman area. . 13) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, July 25, in the Commission Room. (4) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, July 25, in the Commission Room. (5) Agenda for the County Commission meeting to be held at 1 :30 p.m. on Tuesday, July 25, at the Courthouse. (6) The City Manager submitted his weekly report, as follows. (1) Announced that work continues on an agreement for connecting of the Kountz Mobile Home Park to City sewer. He noted that, while several issues have been relocated in the agreement, the spirit of discussions before the City Commission have been met. (2) Noted that several City staff members met with representatives from Rajah and Associates last week; and the applicant has . just submitted a memo outlining the results of that meeting. He stated that, as of this time, Planning staff has not had an opportunity to review the memo. (3) Noted that staff has been working on review of the budget in preparation for today's meeting. (4) Stated that on Friday, Commissioner Youngman was luckier than he was in the dunking booth. Continued work session. review of City Manaaer's Budaet Recommendations for Fiscal Year 1995-1996 (C) Continued review of City Manager's Budget Recommendations for Fiscal Year 1995-1996 This is the fourth in a series of work sessions on the City Manager's recommendations for the budget for Fiscal Year 1995-1996. City Manager Wysocki and Administrative Services Director Gamradt reviewed the . General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds, Trust and Agency Funds and Appendix sections of the document, covering Pages 90 through 318 of the City Manager's recommendations. The first section completed was the General Fund, as follows. 07-24-95 - 4 - Building Maintenance. This budget unit includes monies for renovation of the old Police Department, to accommodate offices for the Fire Marshal and the Disaster Emergency Services Coordinator as well as the Building Inspection Division. Responding to Commissioner Frost, the Administrative Services Director estimated . the annual debt service on a five-year INTERCAP loan of $200,000 would be $45,000 to $46,000. Responding to Commissioner Youngman, the City Manager stated that estimates for renovation of the building were set at $180,000 several years ago. He noted that the renovation will include the installation of windows, to provide some natural light in the building. Commissioner Stiff stated an interest in having all of the INTERCAP loans listed in the appendix, so they are easily identified and recognized. Administrative Services Director Gamradt stated that the INTERCAP loan, its purpose and its expiration date could be listed, along with the outstanding balance. He cautioned, however, that the payment changes annually, depending on the interest rate; therefore, a complete amortization schedule could not be provided. . Responding to questions from Commissioner Stiff, the City Manager stated that the amount budgeted for the Carnegie Building is a carry-over from last year, and is to cover the costs of studying the building. The City Manager then noted that the washer and dryer for the City Shops are in response to the requirements for addressing blood borne pathogens and hazardous wastes. Recreation Administration. This budget unit includes an additional .5 FTE for cleaning of the Lindley Park Center, which has been moved from the Building Maintenance budget unit to this budget unit, and for additional recreation leaders. Responding to Commissioner Frost, Recreation Superintendent Sue Harkin stated that the $2,000 for setting of cross country ski tracks is the amount requested by that organization. Swim Center. This budget unit is essentially the same as last year's except for an . increase in the costs of repair and maintenance. Responding to Commissioner Stueck, the Recreation Superintendent stated the last changes in some of the rates for various Swim Center activities were 1984, with the basic rates being the same since 1980. She stated that at the present time, the basic fees are $2.00 07-24-95 _____._.__. .__.._n.___... - 5 - for adults and $1.00 for children and seniors. She then noted that an increase in the costs of swim lessons at Bogert Pool has generated an additional $9,000 in revenues for that activity. Commissioner Frost suggested that now might be the time to look at the fee structure, particularly in light of the interest in expansion of the Swim Center lobby area. . Recreation Superintendent Harkin stated that the Recreation and Parks Advisory Board has indicated a lack of interest in increasing revenues at the Swim Center when those revenues simply go into the General Fund and are lost. She stated that if the additional monies could be identified for a specific project for the Swim Center, the Board has indicated a willingness to consider increasing those fees. Responding to Commissioner Stueck, the Superintendent stated that the pool still needs to be resurfaced; however, she would recommend that the surface be patched for as long as the patches hold before the resurfacing is undertaken, at an estimated cost of $35,000 to $55,000. She noted that pool surfaces typically last ten to fifteen years; and this pool surface has lasted twenty years. Bogert Pool. This budget unit reflects a very slight increase in staffing, to provide . additional lifeguards. The budget also includes monies for reroofing of the building, which is to be completed in conjunction with reroofing of the pavilion. The City Manager noted that a pad for handicapped access into the pool is needed; and the monies for that improvement will be taken from the ADA budget unit. Parks and Playgrounds. This budget unit includes an increase of 1.25 FTE in maintenance workers, to cover the additional work involved with new parks, such as the Valley Unit Park and West Babcock Park. The budget also include monies for reroofing of the Bogert Pavilion and monies to expand the security services to include parks as well as the cemetery. Commissioner Stueck distributed information on a portable irrigation machine, which costs approximately $11,000. He suggested that with the new parks that are being developed . and the lack of underground irrigation systems in those areas, this machine could provide a viable option for maintaining those facilities. He stated that, if monies are available, he feels this equipment should be added to the budget. Cemetery. This budget unit includes an additional .5 FTE for maintenance workers. Commissioner Stiff noted that the Cemetery Board has expressed concern about the costs of using municipal water to irrigate the cemetery. 07-24-95 ~ 6 - The City Manager noted that the City has encountered two unsuccessful attempts in drilling wells in this area, although the City now has a well producing 100 gallons per minutes in Lindley Park and the Hospital has a similar well on its property. He noted that if another well can be successfully drilled that does not negatively impact the existing well, then more of the . cemetery land could be converted to well water instead of City water, which would be beneficial for everyone involved. library. This budget unit includes an increase of 1 .14 FTE, which is broken up into several different area. Also included in the budget is a maintenance agreement, for a portion of the year, on the new computerized system recently implemented. Zoning. An additional .3 FTE has been added for secretarial assistance. Also included in this budget is a transfer to the Historic Preservation budget unit. The City Manager expressed concern about the increased agenda workload because of required public hearings on deviations in conjunction with certificates of appropriateness, particularly when the deviations, to date, have typically been approved following a very abbreviated staff report and no public comment. He suggested the idea of changing the . standards and eliminating the term "deviation", providing for an administrative approval of applications for encroachments which reflect a trend in that immediate neighborhood. Commissioner Frost stated an interest in revising the zone code to allow review under the process which was previously followed, with Commission approval being granted under the Consent Agenda as long as there were no problems with the application. He then suggested the possibility of splitting deviations, with one for single-family residential that goes through the administrative or abbreviated review and approval process, and the other for deviations based on design excellence in landscaping for commercial applications. Commissioner Stiff suggested that this issue be addressed in an upcoming work session rather than during this budgetary process. . The City Manager turned his attention to the Special Revenue Funds, as follows. Planning. This budget unit includes an additional .2 FTE for secretarial assistance and a new GIS Technician position. Commissioner Frost Questioned whether the $25,000 budgeted for Phase I of the comprehensive planning effort is adequate. 07-24-95 -.-.--- .."..- - 7 - City Manager Wysocki stated that it is his understanding that the County is to budget a similar amount and, through the use of graduate students at MSU, he feels that the total amount budgeted would be adequate to begin the baseline data collection effort. The Commissioners asked for information on the amount being budgeted by the County for this program, recognizing the importance of maintaining a balance of funds . appropriated, rather than having one governmental entity carry a majority of the costs. Insurance. This budget unit covers the costs of the self-insured health/medical insurance program as well as the premiums for the comprehensive insurance carried by the City. Responding to Commissioner Stiff, the Administrative Services Director stated that approximately 20 percent of the employees chose the 300/500 plan over the 1000/1000 plan for medical insurance. Employee Retirement. This budget unit covers the City's contribution to the three retirement systems under the Public Employees Retirement Division, as required by State statute. . Community Transportation (CTEP). This budget unit covers the projects to be funded As of this date, the North Rouse Avenue project is "on hold" at the through ISTEA monies. State level, so funds will probably not be released for that project during this fiscal year. Highway Safety Improvement Projects. This covers the intersection improvements which were identified several years ago. Some of the most critical projects on the list have been completed, at the City's expense. Tree Maintenance District. No change in the assessment rate is proposed for this fiscal year. Mayor Vincent expressed concern that the tree trimming program begins before the trees have leaved out; and that can result in some missed branches. Commissioner Frost stated his support for this program. He noted that when the . initial tree inventory was conducted, the City had an $11 million asset, with one-third of the trees being at risk because they needed pruning. He suggested that the new tree inventory should result in a dramatic increase in this asset. Special Projects Fund. This budget unit provides for appropriation of the monies from 07-24-95 - 8 - the notes and assessment receivables in the Valley Unit Subdivision. These monies are reappropriated from last year. SID Lighting Districts. This is strictly a pass-through budget unit. The City pays the energy costs for the lighting districts throughout the fiscal year, and bills those costs back to the affected property owners in November of each year. . Community Development Block Grant/HOME. No new grants are anticipated this year. If the City applies for, and receives a grant, staff will ask that it be incorporated into the budget through the budget amendment process. Housing Revolving Loan. The cash balance at April 30, 1995, was $155,000. A tabulation of loan repayments is included in the narrative. Economic Development Revolving Loan Fund. The cash balance at April 30, 1995, was $385,000. A tabulation of loan repayments is included in the narrative. 9-1-1 Program. This budget unit is funded through a 25-cent-per-month charge on all telephone subscribers, which generates approximately $39,000 annually. The monies are used to fund equipment and manpower for the 9-1-1 telephone service. . Responding to Commissioner Stiff, the Administrative Services Director stated that this budget unit had a $95,000 balance at June 30, 1995. Drug Forfeiture Fund. This funds the drug task force; and 75 percent ofthe costs are covered through a State grant. Mayor Vincent stated that the workload indicators, which reflect a substantial rise in investigations and arrests, are disturbing. Police Special Revenue (DARE). This is the first year that the City will bear all of the costs associated with the DARE program. The City Manager noted that, typically, Cities drop this program after federal funding ceases. He also noted that the success of the program is often linked to personalizing of the program; and he feels that has been done locally. Commissioner Stueck noted that the influence of the program can possibly be . identified now, as the first students to receive the training move into the high school. Beautification of Bozeman. This budget reflects little activity, and a small amount of monies available. Historic Preservation. This budget unit is essentially the same as in past years. 07-24-95 ----------- __..___n___________ __ ._. n.. _ _ - 9 - Responding to Commissioner Stueck, the Administrative Services Director stated that the General Fund contribution to this program is reflected under the Zoning budget unit. East Gallatin Recreation Area. Funding for this park comes from a $ 5,000 contribution from the State and some contribution from the County, typically in the form of in- . kind services. Consolidated Parking. This budget unit reflects all parking enforcement areas, including the MSU Residential Parking District and the downtown parking area. Included in the budget are monies to purchase handheld ticket writers and the attendant software. Community Housing. This budget unit is funded through a transfer from the General Fund, through the City Commission budget unit. Local Government Study Commission. This budget unit reflects the request forwarded by the Study Commission. The City Manager noted that, in addition to the dollar amounts reflected in the budget, the Study Commission has asked that they also be authorized to spend any unexpended monies from last fiscal year and any increase in the mill value over the amount estimated in the budget. . Responding to questions from the Commission, the Administrative Services Director stated that since this is a Special Revenue fund, any cash remains in that fund until Commission action is taken to transfer it out. He then cited State statute, which allows a local government to levy up to one mill in each fiscal year the study commission is in existence. He noted that there is no prohibition on providing some of the support through in-kind contributions; and that has been done for past commissions through provision of office space and secretarial services. The Commissioners raised several questions about the requested budget, particularly for those line items pertaining to travel and advertising. They then expressed an interest in having one or more of the Study Commissioners forward information on the budget request as soon as possible. . Fire Department Pumper. The monies in this budget unit are residual from two previously approved mill levies for purchase of fire trucks. The City Manager noted that two years ago, the City Commission authorized staff to transfer the fund balance into the General Fund, but that was not accomplished. At this time, the Fire Chief has asked for authorization 07-24~95 ------- - 10 - to use the balance in this fund toward the purchase of a new fire pumper truck, with the remainder of the estimated $220,000 cost to be funded in next year's budget. Commissioner Stiff expressed concern about expending monies directly from this fund since the Commission had previously authorized its closure. e Administrative Services Director Gamradt responded that, if the Commission prefers, the monies from this fund can be transferred into the General Fund and then expended through the Fire Department budget unit for the same purpose. He suggested that, since these are earmarked monies, it would be preferable to spend them in the manner requested. ADA. These monies are rebudgeted from the past two fiscal years. The City Manager noted that this budget unit was previously reflected under the General Fund; however, placing it under the Special Revenue Fund allows it to retain its balance until all projects are completed. Recess - 5:33 D.m. Mayor Vincent declared a recess at 5:33 p.m. to reconvene at 7:00 p.m., for the . purpose of conducting the continued work session on the budget for the upcoming fiscal year. Reconvene - 7:00 D.m. Mayor Vincent reconvened the meeting at 7:00 p.m., for the purpose of conducting the continued work session on the budget for the upcoming fiscal year. Continued work session - review of City Manager's Budaet Recommendations for Fiscal Year 1995-1996 The next section was the Debt Service Funds, under which monies are budgeted for retiring the General Obligation Bonds for the Library and the transportation projects and for retiring the Special Improvement District Bonds and Sidewalk Bonds, which are outstanding. . The section on Capital Project Funds contains a listing of the transportation projects to be completed under the general obligation bonds which were recently sold. Responding to Mayor Vincent, the Administrative Services Director stated that, realistically, he anticipates that these transportation projects will not be completed for 07-24-95 . 11 - approximately three years, particularly since much of this first fiscal year will be spent designing the projects. The City Manager turned to the Enterprise Funds section of the budget, reviewing the individual budget units, as follows. . Water Operations. This budget unit reflects a substantial increase in operations, attributable to water renovation projects and installation of the Oak Street water main from North 7th Avenue to North 19th Avenue. Responding to Commissioner Stiff, the Administrative Services Director stated that the loan to the Comstock Apartments was made from this fund because the monies are to be used for extension of the water main from its current terminus to the site. He indicated that the loan is to be repaid over six years, at a nominal interest rate. Water Plant. This budget unit includes $100,000 for preliminary work on the Sourdough Creek Dam, including geotechnical investigations and preliminary design. Commissioner Stiff suggested that some of the items contained in this budget should be subject to depreciation, including the replacement chart recorders and possibly remediation . of the lead and copper pipes in the distribution system. Commissioner Frost expressed concern about inclusion of the $100,000 for the dam in this budget, stating it was his impression that the Commission would first discuss issues such as water conservation and a timeline for needing additional water before steps were taken to pursue a water source. Commissioner Stiff stated that, because of his surprise in seeing this line item in the budget, he contacted Director of Public Service Forbes and learned that if the City wishes to retain its impounded water rights in this drainage, it is essential to include some funding in the budget. He further noted that this represents only 3 percent of the estimated costs of the project, which is a minimal amount for retaining water rights. . City Manager Wysocki stated that the City must show diligence in establishing an impoundment to ensure its water rights are protected. He then cautioned that the construction of a new dam is projected to take seven to ten years to complete. He noted there will be a number of points along the way where the project can be stopped if it is determined that construction of a new dam is not needed. He further suggested that issues such as water 07-24-95 ~ 12 - conservation measures can be discussed within the next few months, even with these monies in the budget. Commissioner Frost reiterated his interest in discussing water conservation measures and the current use before seeking new water sources. . Commissioner Youngman stated she is interested in water resource management as well, suggesting that the language in this budget unit could possibly be revised to reflect that issue as well. Wastewater operations. The biggest expenditure included in this budget unit is the Bozeman Solvent Site, the costs of which cannot be accurately predicted. Also included in this budget are monies for design of renovations to the collection system, which are typically constructed the following year. The City Manager noted that since the same crews work in both the water and sewer operations, the workload is generally spread so that one year, water system improvements are made while sewer improvements are designed; and the following year, the sewer improvements are constructed while water system improvements are designed. Commissioner Stueck noted that staff concern has been raised that the second . television monitoring of the sewer main that serves Dell Place cost this specific budget an additional $1,200 which was not anticipated this past fiscal year. He suggested that the Commission should be more cautious when it makes such decisions, to ensure that budgetary impacts are considered and addressed. Wastewater Plant. This budget unit includes a new Pretreatment Field Operator position, with that individual being responsible for working with businesses where solvents, petroleum products, grease products and dairy products are handled to ensure that the City's pretreatment program requirements are being met. The City Manager noted that this is one area where a composting program could be beneficial. He stated that at the current time, sludge is stored until it can be injected into the . fields; and the storage area is becoming inadequate. He noted that with a composting program, the sludge could be removed on a more frequent basis, thus avoiding the potential costs of expanding the sludge storage area. The City Manager noted that through an energy program, several of the motors and monitoring equipment are to be replaced with more efficient equipment. A three-year payback in energy savings is anticipated. 07-24~95 .-.---. .----- - 13 - Commissioner Stiff cited this as another example of where depreciation should be considered, particularly since the replacement equipment is anticipated to have greater than a one-year life expectancy. City Manager Wysocki reminded the Commission that the Wastewater Fund is in . trouble; and efforts should be made to change that status. He suggested that to locate a composting operation on Wastewater Fund property could accomplish that. Solid Waste Collection. This budget unit is essentially the same as in past years. Responding to Commissioner Stiff, the City Manager stated that the small growth in accounts is due in part to the fact that there are three different garbage collection services available to residents. He then stated that he has received several requests for the City to become involved in commercial accounts. He cautioned the Commission that if commercial accounts are to be added and accommodated in an efficient manner, an automated garbage collection system is needed. He further cautioned that if a third truck and crew are added to the fleet, it may be necessary to serve some of the residential areas with that automated truck until there are sufficient commercial accounts to keep it busy on a full-time basis. . Responding to Commissioner Stueck, the Administrative Services Director stated that there must be adequate private sector competition to ensure competitve rates before this type of activity is privatized. He cautioned that at this time, there is not adequate competition to ensure that rates remain at their current levels. The Commissioners discussed the issues surrounding automated collection briefly. They determined it is essential that the volume-based rate structure remain in place, so that customers have the ability to control their costs. Responding to questions from Commissioner Frost, the Administrative Services Director stated that if the Commission wishes, it can adopt an exclusive hauler ordinance, under which the City would provide notice that in five years, it will be the exclusive garbage . collection service within city limits. Solid Waste Disposal. This budget unit includes a .5 FTE increase in operators. A substantial increase is reflected under Contracted Services, due in large part to the lining of the new section of the landfill as well are required monitoring efforts. Also included in this budget unit is a 31-cent-per-ton fee which is paid to the State to fund its solid waste program. 07-24-95 ----..----.--.---------.. .-. -. .-- ...........- . -.--...-..- .--.-.----- --~-_._---- ---- - 14 - The Administrative Services Director stated that the amount appropriated for the liner must be increased, in light of the fact that the bid was recently awarded in the amount of $1,853,000. The City Manager suggested that $5,000 be added to this budget unit for a feasibility . study on composting. He recognized that this amount may not be adequate to cover costs; however, the additional monies needed could be added through a budget amendment. The next section of the budget contains the Internal Service Funds. This includes the budget units for Central Services, Vehicle Maintenance and Self-Insurance, which are funded through charges back to the individual budget units. The City Manager noted that Page 275 contains a listing of the premiums for the medical insurance for employees, emphasizing the importance of recognizing the savings in premiums which the City will realize with the change in the deductible. He stated that the insurance company which administers this program has suggested that if the City can attain a $1 million balance in this fund, it should consider raising the stop loss level from $75,000 to $100,000 per year per person, which could dramatically decrease the insurance premiums which the City currently pays. . The last section of the budget document contains the Trust and Agency Funds, which are the Cemetery Perpetual Care and Parkland Trust funds. Commissioner Stiff noted that the Cemetery Board has expressed concern that the Cemetery Perpetual Care Fund does not have a sufficient balance to ensure perpetual care after the cemetery is full. The City Manager reminded the Commission that in 1986, the Commission determined that this fund would never have sufficient monies to ensure perpetual care and chose to use a portion of the monies from sales of lots as well as the interest income from this fund to cover some of the annual maintenance costs. He then suggested that the Cemetery Board could propose a change in rates, upon which the Commission could then act; and the . Commission could change the manner in which monies are used. The City Manager noted that the balance in the Parkland Trust Fund is low; and with the provisions of HB473, that amount could grow more slowly in the future. City Manager Wysocki briefly highlighted the information included in the Appendix, noting that it provides quick reference material. He stated that this information does include 07-24-95 - 15 ~ a glossary of terms, to which Commissioner Stiff has asked that a glossary of acronyms be added. City Manager Wysocki noted that the next work session on the budget has been scheduled for Monday, July 31, at 3:00 p.m. He suggested that the Commission consider . setting another time for completion of the changes to be incorporated into the tentative appropriate ordinance, since adoption of that ordinance is set for August 7 under the original schedule. The Commissioners tentatively set the next work session for Tuesday, August 1. City Manager Wysocki stated that staff has verbally received the mill value for Fiscal Year 1995-1996; and it is set at $34,718, which is higher than the $33,538 contained in his recommendations. He noted that this will result in approximately $100,000 more in the General Fund, if the mill levy remains the same. He then asked that the Commission carefully consider the options of reducing the contribution from reserves, adding another project or two to the budget, or reducing the mill levy. He forwarded his recommendation that the Commission maintain the mill levy he has proposed and reduce the amount of reserves used . to balance the budget. Commissioner Stiff asked whether impact fees should be addressed in this budget. The City Manager cautioned that monies from impact fees may not be used to address past problems; they must be used to address future needs. He then stated that impact fees will probably not be implemented until at least halfway through the fiscal year; and revenues will be very minimal until near the end of the fiscal year. He further noted that the accumulation of those funds will be slow initially, so he does not believe that the issue needs to be address in this fiscal year's budget. Commissioner Stiff then suggested that the Commission consider transferring the excess monies in the SID Revolving Fund, above the required 5 percent of outstanding SID . bonds, to the General Fund, with those monies being used to offset the amount of monies being used from the fixed asset reserves. He noted that while it is important to meet the statutory requirements, he sees no benefit in exceeding those requirements by such a significant amount. City Manager Wysocki reminded the Commission that the 5-percent balance is a minimum requirement. He stated that exceeding that minimum is appropriate and ensures the 07-24-95 -.----- .------- - 16 - salability of SID bonds. He further noted that many of the transportation projects are currently exceeding the amounts budgeted. He suggested that the monies in this fund could be transferred as needed to cover those excess costs if they are not transferred at this time. Commissioner Stiff characterized the City Manager's suggestion as being the same . as his proposal, noting it would accomplish the same thing. Commissioner Stiff then reviewed the list of major projects, as forwarded in the City Manager's memo dated August 25. He noted that several of those items have been addressed in this budget; and some of the items are purposely being set aside for this year. The Commission concluded its work session, recognizing that on July 31, adjustments to the budget recommendations will begin. Adjournment - 9:20 c.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Stueck, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being . Commissioner Frost, Commissioner Stueck, Commissioner Stiff, Commissioner Youngman and Mayor Vincent; those voting No, none. ATTEST: (2~ :f~ ROBIN L. SULLIVAN Clerk of the Commission . 07-24-95