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HomeMy WebLinkAboutBudget/Finance Committee Minutes 09.21.2010 MINUTES BUDGET/FINANCE COMMITTEE September 21, 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 Mayor Ken Olson Sam Painter Chairman Kate Hart called the regular meeting of the Budget /Finance Committee to order at 5:30 p.m. There was no public in attendance. The minutes of the September 7, 2010 meeting were presented and approved via motion by Chuck, seconded by Doug, and passed unanimously. The Utility Billing adjustments were reviewed by the Committee. The August journal voucher was reviewed and approved. The July fmancial statements were reviewed by the Committee. There were no unusual occurrences during the month. Shirley summarized the reports and took questions from the Committee. The Comp. Insurance deficit in cash was questioned and Shirley explained that the year's premiums were due by August 15 and that there are no reserves in this fund. Consequently, the fund will have a negative cash balance until the tax revenues are received. The negative balance in the Capital Improvement Fund was also questioned. Shirley explained that the money was transferred to other cash categories according to the preliminary budget and will be corrected this month. Shirley needed to know which capital items would be approved before moving cash into that line item. Motion was made by Doug, seconded by Chuck to approve the August journal voucher and financial statements. Motion passed. There were no purchase requisitions presented to the Committee. The Comp /OT reports for September PPE September 5 were reviewed. Chuck inquired as to whether the used comp time was costing the City more than just overtime, as the comp time being used caused overtime for another employee. Mayor Olson stated that was true, especially in the police department. Chuck stated that he would like us to look into state statute to see what the law was regarding comp time and maybe we shouldn't offer it anymore. Sam stated that the union contracts superseded the state statute and that if the City chose not to offer comp time, that would be an item that the City would have to negotiate. Chuck would like the City to keep that in mind when negotiating again next year. Motion was made by Doug, seconded by Chuck to approve the comp overtime. All in favor, motion passed. 1 Budget/Finance Committee September 21, 2010 The Payroll Register for PPE 9/5/10 totaling $172,910.45 was reviewed by the committee. Motion was made by Doug, seconded by Chuck, to recommend council approval of the payroll register. Motion passed unanimously. Clerk/Treasurer's Comments: Shirley updated the Committee on SID #112. Shirley stated that the City still needed to receive an engagement letter from Dorsey and Whitney. The letter needs to be approved by the Council prior to placing the assessments on the tax rolls. Shirley requested that the resolution be placed on the agenda for the next work shop and passed at the October 5 2010 Council meeting. Because the City hired bond counsel the additional $37,189 of the project cannot be borrowed from City funds but will need to have bonds sold or a loan taken out to pay the amount that CTEP does not cover ($37,189). Shirley submitted an application to Intercap for the difference and should be hearing back from them shortly. Mayor's Comments: TIFD update: The mayor stated that LURA has 3 draft work plans. Sam stated he only had the first 2 and would like to see the 311 one. The work plan is being designed for the TIF facade program. The Mayor stated that the LURA Committee has authorized Bill Kampfer to remain the secretary for the Committee, but he will not be a voting member as he does not live in Laurel. Chuck stated that the County Commissioners are interested in pulling 95 mills from future TIF districts to help finance school districts. Doug stated that he gave his opinion about that at the TIF meeting with the County Commissioners last month. He told them that by requiring TIF districts to allocate money to the Counties, they are ruining the TIF district's ability to bond for major projects. Per Doug, Taylor Brown (state senator) and Elsie Arntzen (state representative) are considering and promoting the County Commissioners request during the upcoming legislature. Purchase of Modern Auto Building: The Mayor stated that Jan Faught is currently on vacation but he will discuss some concerns of his when she returns. Some of the concerns are the high lead levels, since it was previously used as a gas station and later as a body repair shop. There are also asbestos problems, as well as possible ground leakage from previous fuel tanks. Another concern would be the loss of tax revenue if the City were to own the property. The Mayor has spoken to Gary Colley in regards to these concerns. Gary's opinion is that the City would be better off adding on to the City's FAP building rather than throwing an additional $100,000 into upgrades at the Modern Auto building. The Mayor will contact an architect to look at doing a cost analysis of adding onto the FAP building vs. purchasing the Modern Auto building. With the addition to the FAP building, the emergency services could all remain in one central location with enough space to house all departments. Chuck asked if the City has considered adding a two story addition onto the FAP building, thus adding additional space for storage, sleeping quarters or training. This way the City would be looking towards the future rather than just revamping for more room in the present. The Mayor agreed that this is a good idea and will include that in his discussions with the architect. The Mayor would like to see ground breaking for a new building by spring of 2011 and will consider this project a City priority. 2 Budget/Finance Committee September 21, 2010 Police Labor Union: The Mayor stated that the City is still looking at comparable demographics and still working on negotiations. Sewer Lift Stations — East Main The Mayor let the Committee know that the odor problem at the Elm Avenue lift station has not been resolved yet. Kurt has requested that the City close out the contract with Morrison - Maierle, as he is not sure if the problem is with the design of the lift station or an anaerobic problem due to not enough movement of sewer waste through that portion of the sewer. There are 2 or 3 different things that can be done to help alleviate the problem these include deodorizers, hot water wash offs or a back wash system being installed. The back wash system would be done by a contractor. If there were problems with it, the contractor would fix it or if the City installed it, any problems would be the City's responsibility. Other: City Attorney, Sam Painter, reminded the Committee that tonight's public hearing (in regards to water rate increase) was just that, and the City would not be required to make a final decision tonight but would be given 30 days to submit a written decision. Chuck inquired as to how the process was going with the purchase of a new server for the City offices. The Mayor stated that the City has received 2 proposals but needs to find out if we are comparing apples to apples. Technical Edge is aware of the concern and the Mayor will contact them in regards to the dilemma. The next regular Budget/Finance meeting will be on Tuesday, October 5 at 5:30 p.m. For next agenda: The meeting adjourned at 6:10 p.m. Respectfully submitted, n 2<1 y \--) Shirley Ewan, Temporary City Clerk/Treasurer 3