HomeMy WebLinkAboutBudget/Finance Committee Minutes 08.02.2001 MINUTES
BUDGET/F/NANCE COMMITTEE
AUGUST 2, 2001 7:30 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT:
Chairman Bud Johnson
Chuck Rodgers
Gay Easton
OTHERS PRESENT:
Mary Embleton
Larry McCann
The Budget/Finance Committee meeting was called to order by Co-Chairman Gay Easton
at 7:30 p.m., to discuss the Preliminary budget. Bud Johnson arrived at 7:50.
Mary presented updated Budget Summary Schedules for all funds, and a sheet showing
the changes to the General Fund done since the last meeting. She had met with Norm
Klein last Thursday, and reviewed the funds with him. The method used to determine
additional mills to levy for Employer Health Insurance Contributions, as authorized by
HB409, was correct, and resulted in an additional 15.42 mills ($93,525) for fund #2371,
and 6.01 mills ($36,489) for fund #2372. Overall, the city has the authority to levy
136.06 mills for the City of Laurel, and 1.03 mills for the City County Planning fund.
The General Fund still shows a $203,000 shortfall of revenues to expenditures, but the
Cash Reserve is at an acceptable level of $502,000 or 21% of appropriations. Last year
the shortfall was closer to $400,000 and the cash reserve was at $552,000 or 22% of
appropriations. However, next year will have to address some difficult issues, such as the
continuing sharp increases in health insurance costs, and the possibility of creating a park
maintenance district to move the park costs out of the General Fund. Mary stated that the
city has the option of going to the voters to ask for approval to levy additional mills over
and above what the city has authority to levy, but that it is too late to do anything of that
nature for this year's budget. The committee directed Mary to contact Dr. Ken Weaver
for assistance in drafting a ballot issue for the November election to ask the voters for
additional mills to pay for health insurance premiums.
Mary then explained the timeline for approval of the budget: August 7ta - Presentation of
the Preliminary Budget; August 8t~ and 15t~ - Publish notice of Public Hearing on the
Preliminary Budget, AND notice of Public Hearing on the additional Health Insurance
mills authorized by I-1B409; August 21't - Conduct the Public Hearings, and can pass the
Final Budget that night, or continue the heating until August 24th and have a special
meeting to pass the final budget.
Lar~ then explained the changes made to the Enterprise Funds. In the Water fund, the
meter reading system was taken out. A proposed 9% rate increase is built in to the
revenues. This would mean that an average bill of 700 cuff would go from $27.30 to
$29.76, and a minimum bill from $20.70 to $22.56.
In the sewer fund, however, there are problems. Larry explained that the Colorado Ave.
project was not included in appropriations, and he estimated that cost to be around
Budget Work Session
August 2, 2001
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$60,000. This may have to come out of the $210,000 originally budgeted for the South
First Avenue project, and other south side projects. A 10% rate increase has been
budgeted for this year, and needs to be programmed for the next 4 years. Based on an
average of 700 cuff, the sewer rates would go fi.om $27.49 to $30.27, and a minimum bill
from $12.13 to $13.35.
The Solid Waste fund is okay, with a 6% rate increase budgeted. This would mean an
increase from $11.80 to $12.51 for residents.
Ma~y pointed out that all three enterprise funds are budgeted for deficit spending: Water
is $436,000 over revenues; Sewer is $280,000 over revenues; and Solid Waste is
$49,000 over revenues. These budgets are showing heavy dependence on using the cash
reserves. Enterprise funds need to be operating for net gains in order to continue saving
for future replacement and depreciation. The planned CD will include the enterprise
funds and will be very helpful in future planning for replacement. The committee stated
that it will be difficult to pass all three rate increases in the same year.
The committee directed Mary to come up with examples of how the mill increase will
affect a $70,000 home and a $100,000 home. The mayor will meet with Mary to draft the
Budget Message for the preliminary budget booklet.
The meeting adjourned at 9:23 p.m. The next regular meeting will be on Monday,
August 6th at 7:00 p.m. (NOTE: Time changed to 6:00 p.m. due to conflicting scheduled
meeting with the school district on the SRO officer).
Respectfully Submitted,
Mary K. Efiqbleton
Clerk/Treasurer