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HomeMy WebLinkAbout1995-07-18 ccmSPEC MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 18, 1995 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room. Municipal Building, July 18, 1995, at 7:00 p.m. Present were Mayor Vincent, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City ManagerWysocki, Administrative Services Director Gamradt and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a Moment of Silence. Sianina of Notice of Scecial Meetina Each of the Commissioners in turn signed the Notice of Special Meeting. Work session - Review of City Manaaer's Budaet Recommendations for Fiscal Year 1995-1996 This is the first in a series of work sessions on the City Manager's recommendations for the budget for Fiscal Year 1995-1996. Since this is a work session, the minutes are abbreviated. . City Manager Wysocki and Administrative Services Director Gamradt reviewed the Introduction section of the City Manager's recommendations, which includes the Budget Message, Policy Direction, Fiscal Policy, Financial Structure, The Budget Process and the City Organization portions of the budget recommendations, which covers through Page 34 of the document. City Manager Wysocki stated that this year, the budget totals increased from $19,443,428 to $29,466,267, for an increase of $10,022,839. Several major new items comprise this increase, including the $5 million general obligation bond issue for transportation projects which was approved by the voters in November, a liner for the new portion of the landfill, and the appropriation of receivables from the Valley Unit properties. The City Manager reminded the Commission that a couple years ago, conversation during . the budget process centered around the amount of reserves which the City was carrying. He noted -. that, because of the need to address the demands being placed on City services due to continued growth, and because revenue sources are not growing at the same rate, this budget reflects the proposed use of $3,205,912 in reserves as opposed to the $1,376,302 used in last year's budget. Administrative Services Director Gamradt reviewed the policy for use of reserves in a budget. He stated that use of those monies for one-time costs or for planned equipment 07-18-95 Special --. _. ._u.."._.._ _..__. .---.--.- - 2 - replacement is appropriate; use of those monies for on-going operational costs is not appropriate. He noted that Pages 3 and 4 of the budget message list how the reserves are to be used, citing the Wastewater Fund as the only area of concern. He further stated that this fund will likely carry a negative balance when the Fiscal Year 1995 books are closed, because of the costs associated with the Bozeman Solvent Site. He noted, however, that staff is recommending a long-term . resolution of that deficit position be considered to ensure that rates are not increased so dramatically that they generate an extraordinarily high reserve once the expenditures for the Bozeman Solvent Site are completed. The Director noted that monies for ADA projects have been moved from the General Fund into a Special Revenue Fund; and the monies included in this budget reflect reappropriation of monies appropriated in Fiscal Years 1994 and 1995, for projects which are not yet completed. Administrative Services Director Gamradt stated that the City has four categories of reserves: (1) reserves to cover employee benefits; (2) reserves to cover cash flow deficits; (3) reserves to cover a certain percentage of the operations budget, to fund unanticipated overages; and (4) fixed asset reserves. City Manager Wysocki reviewed the Priorities and Issues for the Year portion of the . budget message, which contains highlights for many of the individual budget units. Mayor Vincent left the meeting at 8:40 p.m. The City Manager stated that this budget reflects staff changes which result in a net increase of 16.85 full-time equivalent employees. He noted that Page 12 of the budget message contains a comprehensive listing of those changes. Administrative Services Director Gamradt reviewed the various revenue sources anticipated for the upcoming fiscal year. He noted that the City has not yet received the mill valuation information from the County Assessor; although, that information is anticipated any day. He stated that this budget is based on the projection that the City will realize a 3-percent increase in the value of a mill. He noted that the budget also includes a proposed 4.06-mill General Fund . increase over last year's mill levy; and those two factors combined reflect a total increase of 8 percent in the General Fund. Responding to Commissioner Stiff, the Administrative Services Director stated that the City has a balance of $383,000 in the SID Revolving Loan Fund at June 30, 1994; and, under State statutes, a minimum of approximately $150,000 (5 percent of the outstanding SID bond balance) is needed. He noted that, because of the additional amount in the Revolving Loan Fund, 07-18-95 Special - 3 - the City's SID bonds are more saleable; and a better interest rate is obtained. City Manager Wysocki briefly highlighted his outlook for the future, noting that he anticipates growth will continue, although probably not at its current pace. He cautioned that, even when the growth tapers off, City staff will be impacted by backlogs of work for as much as two or three years. . The City Manager stated that the Policy Direction portion of the document identifies how this proposal meets each of the twelve goals which have been identified by the Commission. He encouraged them to review that information at their leisure. Commissioner Youngman left the meeting at 9: 15 p.m. The City Manager also encouraged the Commissioners to review the information on Pages 10 through 34, which reflect the City's fiscal policy and outline of the budget process. He noted that if the Commissioners wish to change any of the fiscal policies, now is the time to raise those issues. Responding to Commissioner Stiff, the Administrative Services Director stated that monthly financial reports were provided to the Commission; however, the Commissioners expressed a lack of interest in receiving those reports, so they were eliminated. He noted that one cof.>y nas . continued to be available for Commissioner review; and if the Commission wishes to once again receive the information, additional copies can be printed. Responding to Commissioner Stueck, the Director stated that the valuation of the mill for this budget is based on information from January 1, 1995; and the taxes will be collected in November 1995 and May 1996. Adiournment - 9:25 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 and Mayor Pro Tempore Stueck; those voting No, none. ATTEST: ~c7~ ROBIN L. SULLIVAN Clerk of the Commission 07.18-95 Special -------- -- -----------.------