HomeMy WebLinkAboutBudget/Finance Committee Minutes 10.06.2009MINUTES
BUDGET/FINANCE COMMITTEE
OCTOBER 6, 2009 5:30 P.M.
COUNCIL CONFERENCE ROOM
MEMBERS PRESENT: Doug Poehls, Co-Chairman Mark Mace
OTHERS PRESENT: Bill Sheridan Cathy Gabrian
Kurt Markegard
Co-Chairman Doug Poehls called the regular meeting of the Budget/Finance Committee to
order at 5:45 p.m. There was no public in attendance.
The minutes of the September 15, 2009 meeting were presented and approved via motion by
Mark, seconded by Doug, and passed unanimously.
September claims totaling $530,902.91 were presented and approved via motion by Mark,
seconded by Doug, and passed unanimously.
There was no purchase requisitions presented.
The Comp/OT reports were reviewed for PPE 9/20/09.
The Payroll Register for PPE 9/20/09 totaling $153,731.97 was reviewed by the committee.
Motion by Doug, seconded by Mark to recommend council approval of the payroll register.
Motion passed unanimously.
Clerk/Treasurer's Comments:
Budget process: A special council meeting will be held on October 13th to conduct a public
hearing on the Preliminary Budget and the Final Budget will be adopted on October 15th, at a
special council meeting.
There are changes to the preliminary budget, due mainly to our funding capacity with the
State for the current water project. The State looks at revenue, based on the metered water
sales, verses the expense of operating/maintenance and their coverage calculation showed a.
deficit of $150,033.00. We were able to boost our revenue figures by including the TIFD
principal and interest in the calculation, since this was a loan from the water fund. On the
expense side, we cut $247,100.00 from the Water Fund budget, which included the building.
The other half of the building expense was to be budgeted in the Sewer Fund but was
Inadvertently left out. Kurt said the changes in the Water Fund make for a tight budget and
we may need to dip into the reserves if unexpected expenses arise.
The maximum reserves should be 50% but our Water Fund is too low at 6.96% and the Solid
Waste is too high at 68.83%. There is no rate increase for the Water Fund but the EDU (base
gate factor on meter size) needs to be adjusted on commercial users and this will generate
additional revenue in the Water Fund.
Oudget/Finance Committee
Qctober b, 2009
The shop building was appropriated to the Solid Waste Fund, which will bring the reserve to
an acceptable level. Kurt questioned this appropriation saying he also needs a building at the
container site and a new truck next year. There was discussion and it is possible two
buildings could be purchased with the appropriated funds.
ater line insurance funds:
he curb box repair/replacement fund currently has a cash balance of $173,855.00. Since its
inception, we have paid out $106,807.25 in expenses. When this started, the city did not
have the time/manpower to fix bad curb boxes, we contracted the job to various vendors.
Since spring 2003, city crews are making the repairs and only the supplies have been charged
to this account. We also need to account for the wage/time of the workers so a journal entry
can be done to transfer the cash. There was discussion regarding how repairs should be
accounted for.
Mayor's Comments: The Mayor was not in attendance.
Chief Administrative Officer Comments:
Impact Fees Feasibility Study update: No comments.
torm Water Project & S. 1St Ave. overlay update: Bill said this project is done.
West Main Sidewalk SID & overla : Bill said this project is slated for next summer and
hopeful it will go forward.
Wastewater Plant Upgrade report: Bill said we had four contractors submit bids and they all
Came in below bid. The low bid was from Engineered Structures, Inc., out of Boise, Idaho in
the amount of $1,191,214.00.
Other: Kurt explained the issue with East 8th Street and that it needs to be added to the
council agenda tonight. Due to unexpected issues, the entire street needs to be repaved.
Knife River will move to 8th Street soon and to prevent additional mobilization costs, it needs
to be done now. Chad Hanson submitted a breakdown of the charges which total $48,731.04.
The next regular Budget/Finance meeting will be Tuesday, October 20th at 5:30 p.m.
The meeting adjourned at 6:19 p.m.
respectfully Submitted,
Cathy Gabrian
Deputy Clerk