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.
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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
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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
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