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HomeMy WebLinkAboutBudget/Finance Committee Minutes 06.19.2012 MINUTES BUDGET/FINANCE COMMITTEE June 19, 2012 5:30 P.M. COUNCIL CONFERENCE ROOM MEMBERS PRESENT: Mark Mace Chuck Dickerson Doug Poehls Emelie Eaton OTHERS PRESENT: Shirley Ewan Mayor Olson Dan Koch Chairman Mark Mace called the regular meeting of the Budget/Finance Committee to order at 5:30 p.m. Dan Koch was present to represent the public. Mr. Koch was scheduled to speak to the Committee in regards to charging for fire suppression systems water use. Mr. Koch introduced himself and informed the Committee that he has had over 38 years of experience in fire suppression. He was at the meeting to introduce the fact that the City does not charge for the water used in fire suppression systems and he feels that revenue is being lost because of it. He is recommending that the City, like most cities, including Billings, start charging the businesses that have sprinkler systems water usage. Mr. Koch brought the fee schedule that Billings uses for their users. Mr. Koch mentioned that there are at least 16 systems in the City that are not being charged for the water that they use to protect and test their systems. He feels that it is unfair to the City and the taxpayers that they are not being charged for the thousands of gallons of water that businesses use to maintain their systems. Mr. Koch also believes that the hydrant usage should also be charged. Emelie asked how we should proceed with this matter. Doug stated that he would like to proceed with the process of looking into this. The Mayor stated that the Council would have one of three options: 1) go forward with charging, 2) look into the charges and develop a resolution to take before the Council or 3) no action at all. Mark said he would bring it up at the next Public Works meeting, as he would be interested in forming a sub - committee to look into this further. Mark suggested that we might find a way to charge insurance companies for the use of the hydrant water while extinguishing fires. Emelie asked who would be on the committee. Mr. Koch stated that it needed to include persons that are mechanical and know about the water that is consumed in the fire suppression systems and the clerk/treasurer. Chuck mentioned that this would be something that should be brought up at the next Chamber of Commerce meeting, as there could possibly be someone that owns a business that would like to be on the committee. Mark will definitely bring it up at the next Public Works Committee meeting. The minutes of the June 5, 2012 meeting were presented and approved via motion by Emelie, seconded by Doug, and passed unanimously. The Utility Billing adjustments were reviewed by the Committee. Shirley noted that there were no unusual adjustments last month. The Mayor has reviewed and approved the May journal voucher. Doug made a motion to approve the Utility Billing adjustments as well as the May journal voucher, seconded by Emelie. All in favor, motion passed. 1 Budget/Finance Committee June 19, 2012 The May financial statements were reviewed by the Committee. Shirley went through the financial report and stated that 92% of the year has lapsed with 56% of the revenues collected and 45% of the authorized expenditures spent. Shirley noted that the General Fund has collected 74% of anticipated revenues. Shirley stated that the 2n half of the tax collections were received today, but posted in June, the Entitlement Share of $179,000 has not been received and the transfer of funds from the Health Insurance will not be done until the end ofJune. Revenues should look a lot different at the end ofJune. The Mayor stated that does not mean that everything is looking good. The City still needs to be aware of the sewer problems, the loss of tax revenue due to the TIF district and the fact that investments have gone down considerably, causing the General Fund to transfer additional funds to the Fire Pension Fund. The General Fund will be required to move 31/2 more mills to the Fire Pension Fund to supplement their retirement. The Committee, as well as the Council, needs to be cognizant of the fact that more funds are needed from the General Fund to support services and the revenues are not there. The Committee and Council need to seriously look at some form of Maintenance District, be it Public Safety or Park Maintenance District. Motion was made by Doug to approve the financial statements, seconded by Emelie. Motion passed. There were no purchase requisitions presented to the Committee. The Comp /OT reports for PPE June 10, 2012 were reviewed by the Committee. The Payroll Register for PPE 6/10/12 totaling $165,986.69 was reviewed by the Committee. Motion was made by Doug, seconded by Emelie, to recommend Council's approval of the payroll register. Motion passed unanimously. Clerk/Treasurer's Comments: Answer to Sauter's Overtime: Shirley stated that there was confusion on Sauter's part as to whether he was to put down the four hours or just the Union regulation that requires 2 hours of call out pay. Shirley informed him that he was allowed only the 2 hours. His paycheck will be adjusted on the next payroll. Shirley thanked Chuck for catching the error. Budget Update: Shirley noted that the budget is still being worked on and the Council will see the next group of Department Heads at the next workshop. City of Billings, Garbage Rate Increase: Shirley stated that there was no increase in the $18.00 /ton from last year. They have changed the calculation method of the cubic yards and franchise fee amounts, but that did not change the amount per ton. Mayor's Comments: Police Union Negotiations Update: The Mayor stated that Heidi, Sam and Shirley met today to determine how much the City is willing to offer. The amount is around $15,000 and will be offered to the Union in mixed 2 Budget/Finance Committee June 19, 2012 alternatives, whether they want the money in flex, step change, or wage. The Mayor mentioned that it will not all go towards wages, as they compound yearly. Other: For the Next Agenda: Nothing new has been requested. The next regular Budget/Finance meeting will be on Monday, July 2, 2012, at 5:30 p.m. The meeting adjourned at 6:24 p.m. Respectfully submitted, Shirley Ewan, City Clerk/Treasurer 3