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HomeMy WebLinkAboutBudget/Finance Committee Minutes 08.24.2010 MINUTES—SPECIAL BUDGET MEETING BUDGET/FINANCE COMMITTEE August 24,2010 5:30 P.M. COUNCIL CONFERENCE ROOM MEMBERS PRESENT: Kate Hart,Chairman Mark Mace, Co-Chairman Chuck Dickerson Doug Poehls OTHERS PRESENT: Shirley Ewan Bill Sheridan Mayor Ken Olson Kurt Markegard Chairman Kate Hart called the Special Budget meeting of the Budget/Finance Committee to order at 6:15 p.m. There was no public in attendance. The purpose of this meeting was to address any concerns the Committee might have in regards to the budgets and explanations that Shirley gave to the Committee on August 12t', 2010. Shirley explained some of the changes in this year's budget and differences in budgeting this year vs. prior years. Explanations were given to the following changes: • Changes in levied amounts for each fund. Shirley explained to the Committee that the General Fund's reserves have dropped to 19%this year. Shirley stated that the addition of the Fire Disability levy of 2 mills plus the removal of the Airport Authority from the All Purpose Mills were the most drastic changes. The Airport Authority will now be its own taxing authority. This means that as the floating mills go up the General Mills will not have to share the float with the Airport as they will receive their own increase.Additional mills have been added to the Comprehensive Liability Fund due to 22%increase in liability premiums. Shirley has also increased the Permissive Health Insurance mills(due to adding Special Revenue Funds)although the insurance premiums are lower this fiscal year. • The movement of the building department into the General Fund—due to lack of revenues in Building Fund. • General Fund Revenues increase due to adding all Special Revenue Funds to the administrative services charges. • Special Assessments expenditure(General Fund)has been cut as most cities in Montana do not assess themselves. The difference of approximately$20,000 will be redistributed through the ratio that is used to assess the Districts. This will include the Light District and the Street Maintenance District. Chuck would like to know which property owners in Laurel are assessed in the light districts. Mark would like to know if the 8`s Avenue project would also be covered under the Street Light District and if it should be changed to encompass the new lighting. Shirley will check on both questions and report back to the Committee at the next meeting. • An additional$5,500 in has been added to the Planning budget due to the increase in City/County mill value. • Increase in assessments for Light District#2($20,000)and District#3 ($10,000). • Increase in revenue for Tax Increment Financing District($50,000). • SID#112 will be funded through the Gas Tax Fund. Explanation was given in regards to the $37,000 that will be assessed to the property owners and that$23,000 is available through the closure of SID#110 (paid off and that Shirley would like to use that money(as a loan)to finance part of the balance that will be owed back to the Gas Tax Fund. The other$14,000 would be paid back with property owners that pay their assessments up front. The 1 Budget/Finance Committee August 24,2010 Committee agreed with this financing. As the assessments are paid back, the money will be returned to the CIP Fund for the purpose of a sidewalk improvement program. • SID#113 will be expended out of the Street Maintenance Fund and bonds will be sold to finance the project. ($210,000) • The Capital Improvement Plan Fund was explained in detail to the Committee. Kurt informed the Committee,that in order to put the sprinkler system in at the cemetery a 3 phase power line would need to be ran to the cemetery. The Committee has agreed to allow another $32,000 added to the budget for this purpose. They would like to see the project completed. The purchase of the land that was offered to the City by Yellowstone Bank was also discussed. Bill will take the Committee's offer back to the Bank and discussion will be held at the next regular Budget/Finance Committee meeting. Chuck would like this item added to the Council workshop. • Other discussion was heard in regards to the budget. Kurt stated to the Committee that additional stimulus money is available and the City has a chance of receiving$500,000. One half of the amount would be a forgiven loan and the other half would be a 1.7%interest rate loan. He will know more on August 25, 2010,as a conference call has been set up with the State. Shirley stated that the items that the stimulus money would cover have already been budgeted in the Water Department and these funds would be additional revenue to the fund. Discussion was held in regards to the revenue that would be received from the franchise fee from Bresnan. The Committee would like this item added to the next Budget/Finance Committee agenda. The Committee was in agreement with the discussed changes in the budget and requested that Shirley go forward in preparing the preliminary budget and the distribution. The next regular Budget/Finance meeting will be held on Tuesday, September 7`h, at 5:30 p.m. For next agenda: New items. Bresnan Fee discussion and purchase of land from Yellowstone Bank. The meeting adjourned at 7:15 p.m. Respectfully submitted, J � AC_' - CcV L -7(L� Shirley Ewan, Temporary City Clerk/Treasurer 2