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HomeMy WebLinkAbout1994-07-12 ccmSPEC -...-.---=---- -.----- -- ....- -.-. MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 12, 1994 ********************* ******** . The Commission of the City of Bozeman met in special session in the Conference Room, Municipal Building, July 12, 1994, at 2:30 p.m. Present were Mayor Vincent, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City Manager Wysocki, Administrative Services Director Gamradt and Assistant Clerk of the Commission Corcoran. Signing of Notice of SDecial Meeting Each of the Commissioners in turn signed the Notice of Special Meeting. Work session - Review of City Manaaer's Budget Recommendations for Fiscal Year 1994-1995 This is the first in a series of work sessions on the City Manager's recommendations . for the budget for Fiscal Year 1994-1995. Since this is a work session, the minutes are very abbreviated. City Manager Wysocki and Administrative Services Director Gamradt reviewed from the beginning through page 44 of the City Manager's Budget Recommendation for Fiscal Year 1994-1995, the Introduction Section, which includes the "Budget Message" from City Manager Wysocki, Policy Direction, Fiscal Policy, Financial Structure and Budget Process and the Summaries Section. City Manager Wysocki stated that the City again received the Distinguished Budget Presentation Award from the Government Finance Officers Association for Fiscal 1993-1994. The City Manager stated that there is a 2.1 percent increase in the expenditures, which is a little less than in times past, and a slight reduction in total appropriations of a minus . .7 percent. He stated that the appearance of a slight reduction in spending is due to the fact that the 1994 budget included some one-time appropriations such as Valley Unit Funds and the City's share of the Law & Justice Center. City Manager Wysocki noted that the budget relies on funding from two fund balances, namely the General Fund and the Waste Water Fund; and that will involve the use 07-12-94 SPECIAL .-..--.---."... ---- - 2 - of approximately $600,000 of existing fund balance/working capital. He stated the use of the General Fund balance does not pose a problem as the budget contains the appropriation of four major non-recurring items: the North 19th Interchange - $290,000 (if the State carries for 4 to 5 years it would avoid interest/INTERCAP); the Mainframe Computer Replacement - . $125,000 (a substantial saving in cost from $450,000, which the City of Billings paid four years earlier); Special Studies - $50,000 and ADA Compliance - $175,000. The two major appropriations in the Waste Water Fund are the Bozeman Solvent Site - $330,000 and CIP Construction - $175,000. Director of Finance Gamradt noted the added revenue that could evolve from the new MSU Residential Parking District, possibly doubling the amount of parking tickets per day. He directed the Commissioners to page 10, which shows Court Fines and stated that this reflects approximately $150,000 in hand in the current fiscal year. He noted even though this is very unpredictable, it has become one of the more significant sources of General Fund revenue. He referenced the Corporate License Tax, which is a 6.75-percent tax on the net income of banking institutions collected by the State and allocated back to the local governments. . City Manager Wysocki noted the budget includes a $50,000 General Fund transfer to offset the costs of special planning studies requested by the Commission, which are designed to provide a basis for the Commission to make decisions on applications for subdivision and development; $12,000 under Public Service and Engineering to study 11 additional intersections for possible improvements to qualify for funding from the Federal Hazard Elimination Program. He noted that the funding for the previously studied 27 intersections is included in the current budget. He pointed out the $3,156 included in the budget as the City's portion of contribution to the Victim Witness Assistance Program, and noted the large added expense of approximately $100,000 to purchase the new phone system. The City Manager pointed out that the budget includes a little over $5,000, which is . the City's contribution to the County's impact fee consultant cost for fire services. He stated that included in the budget is $42,000 for necessary maintenance to various City buildings and an additional $2,500 for a consultant to study and make recommendations for improvement concerning the Carnegie Building. If the determination is that it involves too large of an expense to remodel and improve, he forwarded the possibility of purchasing the old Post Office 07-12-94 SPECIAL --.---......-..- --- " ---. - ..- ----..------- - 3 - building on the corner of Tracy and Babcock as a suitable location for the Planning/Engineering offices. He noted that an energy audit had been done by Montana Power Company; and the results include a recommended replacement of lighting fixtures for City Hall, the old Police station and the City Shop; and $20,000 is included in the budget for that project. A $9,000 . energy retrofitting rebate is expected for this improvement; and the payback is estimated at 3 to 5 years. City Manager Wysocki stated the budget includes $10,000 for City's contribution toward West Babcock Park and $26,650 for the City's share of the West Babcock SID. He noted the inclusion of $1,500 for completion of the Cemetery Master Plan and contracting security guard for the cemetery during the summer months because of the increased vandalism. He noted $100,000 for ADA improvements, stating that approximately the same amount appropriated in Fiscal Year 1994 was not expended. The City Manager noted a 30% increase in employee health insurance premiums included in the budget. He stated the new budget unit will account for costs associated with ISTEA and North Rouse, which are the two major projects for this year. . The City Manager stated the proposed budget includes an increase of approximately 3.5 percent change for payroll costs. He noted as we are a service organization, our salaries should be a good portion of our operation. Director of Finance Gamradt stated that the General Fund mill levy has been increased 5.26 mills, or a 4.7 percent increase, and projected the City's mill value to increase 7 percent. He noted that with this amount of increase the mill levy of 116.14 is still 13.64 mills less than the 1986 allowable mill levy established under Initiative 105. He noted, however, that until the County Assessor's office close their books, this figure is not firm. He noted the fact that property taxes are the largest revenue for the City and that with the recent increase from .4 percent to .5 percent for local option vehicle tax, is expected to produce an additional $36,619 in revenue to the City. He further noted the large increase in building permits and felt assured . that the gambling revenues will continue to grow, noting that two-thirds of the 15 percent tax on the net proceeds of the machines are distributed to the local government. The Finance Director stated that the revenues from court fines has taken a one- quarter of a million dollars swing, noting that some cities do not include them in their budgets because of their unpredictability. 07-12~94 SPECIAL --- ~ "'-,,,-,'. .~"~. - 4 - City Manager Wysocki and Finance Director Gamradt reviewed the listed Commission annual goals and objectives, noting Transportation as the highest priority. Director Gamradt encouraged the Commissioners to carefully read through the Fiscal Policy, Financial Structure and the Budget Process sections of the information. . Financial DirectorGamradt explained that Summary Appropriations/RevenueEstimates is a total compilation of all monies in budget. The Commissioners reviewed and questioned various figures on the charts prepared by the Financial Director. The City Manager expressed the necessity of keeping the Victim Protection Program going and the importance of going ahead with the needed financing. He stated that $50,000 has been budgeted for this; the Rotary Club has raised $4,500; and Assistant Chief of Police Conner has raised approximately $8,000 to $10,000 toward funding of this program. City Manager Wysocki stated that the new policy for the MSU Fire Protection is that unless a payment is made for the second portion of the contract and a full inspection is completed and paid for, the City will not service the University because of all the uncertainties encountered. He pointed out the importance of appropriating monies for the closure of the . landfill, noting that the 1993-94 landfill charges were a little under $500,000; and that figure has almost doubled for the current year. He estimated that closure to be 12 years from now or, if Three Rivers goes elsewhere, maybe 20 years. City Manager Wysocki announced that the next work session is scheduled for Friday, July 15, at 2:30 p.m. Adjournment - 5:10 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Stueck, seconded by Commissioner Youngman, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stueck, Commissioner Youngman, Commissioner Frost, Commissioner Stiff and . Mayor Vincent; those voting No, none. 07-12-94 SPECIAL ---.-..- .--.. - ,,~, _. __ .._n__ ____ ..u., ...___ - 5 - ATTEST: . ~ 7( tn~ JUDY K. ORCORAN Assistant Clerk of the Commission . . 07-12-94 SPECIAL