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Home My WebLink About1994-07-22 ccmSPEC -.....--. MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 22, 1994 ***************************** . The Commission of the City of Bozeman met in special session in the Conference Room, Municipal Building, July 22, 1994, at 2:30 p.m. Present were Mayor Pro Tempore Stueck, Commissioner Youngman, Commissioner Stiff, Commissioner Frost, City Manager Wysocki and Clerk of the Commission Sullivan. Mayor Vincent was absent. Sianing of Notice of Scecial Meeting Each of the Commissioners in turn signed the Notice of Special Meeting. Work session - Review of City Manager's Budaet Recommendations for Fiscal Year 1994-1995 This is the fourth in a series of work session on the City Manager's recommendations for the budget for Fiscal Year 1994-1995. Since this is a work session, the minutes are . abbreviated. City Manager Wysocki and Administrative Services Director Gamradt reviewed the Enterprise Funds, Internal Service Funds, Trust and Agency Funds and Appendix, which cover from Page 220 through Page 299 of the document. Entercrise Funds. Water Operations. Two people have been added in this budget unit, to accelerate the flushing of the water lines; and one-half person has been transferred from the Sewer Fund to this fund, as a reflection of how time is actually spent. Also, under this budget unit, accounting of the costs for Hyalite Reservoir has been changed, with a transfer from Debt Service to Operating Supplies, to accurately reflect the fact that the water purchased from the reservoir is, in turn, sold to the customers. . Water Plant. A.6 FTE has been added, to change a part-time position to a full-time position. There are now no more part-time people in this budget unit. Waste Water Operations. Administrative Services Director Gamradt cautioned that, due to extraordinary costs in this budget, a larger rate increase than was originally anticipated 07-22-94 SPECIAL . ---- --- -- ........... - 2 - may be required. A large portion of these costs are for the Bozeman Solvent Site, for which the City may receive some reimbursements from insurance companies in the future; but the cash flow of the fund must be protected at this time. Waste Water Plant. The plant was expanded in 1980; and some fairly major motor . replacements are now needed. Solid Waste Disposal. An additional full-time person and an additional half-time person are included in this budget unit. The costs of designing a liner for the landfill expansion area, projected at 12 to 13 acres in size, is included in this budget; and in future years the costs of the installing the liner, estimated at $100,000 per acre, must be covered. The City Manager stated this will probably requiring floating of a revenue bond issue which can be repaid over a ten-year period. Since it takes approximately one acre to house landfilling for one year, this expansion will last twelve to thirteen years. The City Manager stated that, due to the fact that Three Rivers Disposal used the City's landfill most of last year rather than splitting the year with the logan landfill, like they typically do, the City will be able to set aside a substantial portio of the estimated fund balance . of $350,000 to $400,000 to cover closure costs, which are estimated at $3 million. Responding to questions and comments from Mayor Pro Tempore Stueck, the City Manager stated that when the City landfill is full, the City's garbage will then be taken to the logan landfill rather than opening a new landfill site. Internal Service Funds. Self-Insurance. The composite monthly premium for current employees is $394. The City Manager briefly highlighted the insurance coverage, noting that stop loss is carried at a level of $75,000 per individual and an aggregate of $400,000. He noted that this year' 5 claims have been extraordinarily high; and this new program will hopefully balance itself out over the next three to four years. The Administrative Services Director stated that the new rates are not bad when . compared to other communities, for the same or a worse level of coverage. Trust and Agencv Funds. ADDendix. The City Manager briefly highlighted the information in the appendix, which includes several graphs and summary pages, as well as copies of resolutions setting rates for water, sewer and garbage, and a glossary of key terms. 07-22-94 SPECIAL . - 3 - General discussion on General Fund. The City Manager reminded the Commission that the General Fund is approximately $160,000 from closure, in light of the lower mill value. He also asked of the Commissioners are still interested in adding $5,000 to funding of the GalaVan, noting that is the only change they had discussed during review of the proposed . budget. Commissioner Youngman stated an interest in adding $100,000 for a housing trust fund; the City Manager responded that could be funded from the reserves. Responding to questions from Commissioner Youngman, Administrative Services Director stated that the proposed 116.14 mills will cost the owner of a $100,000 house $448; and if additional mills were levied to cover the $160,000 shortfall, raising the number of mills to 120.873, it would raise the cost to $466 in property taxes for the year. The Commissioners discussed this issue at length, covering options ranging from levying the additional mills needed to make up the difference, to using reserves to fund the shortfall, to cutting items from the budget to make up the difference, or some combination of the above. . City Manager Wysocki cautioned the Commission that the reserves have been built up over a period of time; and if they are used now, they will not be available in future years. Commissioner Stiff suggested that $50,000 be removed from the City Commission's budget unit for the critical lands study. He noted the wealth of information which is available from those who have farmed the land as well as from volunteers who have expressed an interest in assisting. He further noted Planning Director Epple's memo regarding the workload and his concern about adding another item such as this to the list. Mayor Pro Tempore Stueck stated that recent conversations with Planning Director Epple reveal his definite concerns about adding a study to the workload, and the negative impact it may have on his clerical staff. Commissioner Frost suggested that the budget be cut in half for this fiscal year, . which would allow the studies to be at least started. He further suggested, and the Commission concurred, that budget amendments would be carefully considered during the fiscal year, if necessary, to keep the studies moving forward. Following discussion, the Commissioners concurred in the following revisions to General Fund portion of the budget: 07-22-94 SPECIAL - 4 - Initial shortfall $154,000 Add: GalaVan 5,000 Total projected shortfall $159,000 . Budget Adjustments: Three new pickups, computers and computer networking for Fire Dept. - to be funded from reserves instead of current revenues $ 51 ,700 Contribution to computerized circulation system for Library - to be funded from reserves instead of current revenues 50,000 Vacancy savings 39 ,000 Total from Reserves $ 140,700 Delete: Judge's bench/Commission dais $ 8,000 Pick-up - Swim Center 5,000 Life safety - Carnegie Building 3,000 Realignment of Golf Way/Curtiss intersection 2,300 Total deleted $ 18,300 . Total Budget Adjustments $159,000 Adjustments to items funded from Reserves: Critical lands study (lowers Commission contribution from $50,000 to $15,000) $ 35,000 Responding to questions from Mayor Pro Tempore Stueck, the City Manager estimated that this budget adjustment will result in dropping the reserve balance to just over $2 million plus any residual from this past fiscal year. He then characterized this as not being a dangerously low reserve; however, he agreed that the balance should not drop below $2 million. He cautioned the Commission that the City has been riding a crest for the past few years; and the City must be in a position to ride the slump for a while--probably eighteen . months to two yearsnbefore demands on services even out. The City Manager then reminded the Commission of the options which must be considered for the Carnegie Building, which include fixing it up, selling it, or razing it for additional parking. He recognized that those City offices must be relocated; and those options include adding a second story on City Hall or possible acquisition of the old Post Office building. 07-22-94 SPECIAL ~,..-.~-_..- _-..~.........~.;":",,,...._~"^ ~ .~....:;:z:=..:;::~=- <"'~ - --- -.---- - 5 - He noted that the old Post Office building has now been declared surplus; and Bozeman is at the top of the list of local governments interested in it. Adiournment - 5:45 D.m. . There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Youngman, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Stiff and Mayor Pro Tempore Stueck; those voting No, none. ~ )/5~ ( dV1.. DON E. STUECK Mayor Pro Tempore ATTEST: ,~ Jh (ffJ: ~. ~ . ROBIN L. SULLIVAN Clerk of the Commission . 07-22-94 SPECIAL