HomeMy WebLinkAboutBudget/Finance Committee Minutes 07.12.2001 MINUTES
BUDGET/FINANCE COMMITTEE
JIJ]LY 12, 2001 7:00 P.M.
OLD COUNCI~ CHAMBERS
MEMBERS PRESENT:
Chairman Bud Johnson
Ken Olson
Chuck Rodgers
Gay Easton
Mark Mace
OTI-~RS PRESENT:
Gary Temple
Mary Embleton
The Budget/Finance Committee meeting was called to order by Chairman Bud Johnson,
at 7:00 p.m., to discuss the General Fund.
Mary distributed a revised Summary Schedule showing all tax-levied funds. The ending
cash for the General Fund was higher than originally projected ($925,000). She reported
that she had talked to Norm Klein of the Dept. of Administration and he informed her
that the proposal to move all health insurance costs from the General fund to the Special
Revenue fund is not in compliance with the new law (I-IB409). This law allows only the
increase in premium for the same employees from 1999 to 2001, and cannot be used to
try to correct the problem Laurel has had in the past of not levying all of the health
insurance costs through the special revenue fund. Therefore, the General fund still has all
of the health insurance costs included. However, Mary did move the PERS and
Comprehensive (property and liability) insurance costs to the Special Revenue funds.
This left the appropriation total at $2,433,304 which still exceeds revenues by $463,948.
Mary also provided the worksheets for calculating the mill levies. She explained that two
scenarios are still a possibility until the Attorney General gives an opinion on the
annuaiization of light vehicle taxes. If he rules in favor of the request, it means more tax
levying authority for the city. The initial property tax revenues are in between the two
scenarios, so they will remain unchanged. The other variable is the calculation of the
entitlement allocation, and Mary will try to get a copy of the worksheet by the nex~
meeting.
Bud suggested that the committee set the appropriation at an amount and then determine
each department's portion based on the percentage of each department's original
requested budget. The chart was revised to show this. Discussion followed, and the
committee went through the council's and mayor's budget to apply this method. The
council could cut the $15,000 for the CI?, and the mayor could cut $4,000 from
consulting, which would leave nothing for Dick Larsen's contract. The council could
give this $4,000 back to the mayor from their budget. Mary pointed out that perhaps
Budget Work Session
July 12, 2001
Page 2
another way to calculate each department's portion would be to use the actual
expenditures from FY'01. The chart was revised again to show this method. More
discussion followed, and the committee determined that the actual expenditures will be
used to determine the percentages that the departments will use to calculate their portion
ora $2.1 million appropriation. Mary was directed to draft a memo to the department
heads. It was also stated that it will be important to factor in departments that stayed
within their budgets.
Ma~ told the committee that there are two reserved cash accounts in the General fund
that needed to be addressed: an equipment reserve for $100,000 and the cemetery
perpetual care CD for $94,000+. In order to safeguard these funds, she suggested that
these amounts be moved to the Capital Projects fund (~4000), and that the city is allowed
to do this without falling into the 10% of levied revenues provision. This came fi.om
SB138 passed by the 2001 legislature. The committee instructed Mary to prepare the
resolution to move these funds for the July 17t~ agenda.
The committee then allowed Mary to reiterate the requested merit raises for the office
staff. She presented the same figures as she did during the May 22"a meeting, and
reviewed the same reasons.
The meeting adjourned at 9:18 p.m. The next regular Budget/Finance Committee
meeting will be Monday, July 16, 2001 at 7:00 p.m., and the next Budget work sessions
will be scheduled at a later date.
Respectfully Submitted,
Mary K. lgmbleton
Clerk/Treasurer