HomeMy WebLinkAboutBudget/Finance Committee Minutes 07.02.2001MEMBERS PRESENT:
OTHERS PRESENT:
MINUTES
BUDGET/FINANCE COMMITTEE
JULY 2, 2001 7:00 P.M.
OLD COUNCIL CHAMBERS
Chairman Bud Johnson
Ken Olson
Mark Mace
Gay Easton
Chuck Rodgers
Mike Reichman
Larry McCann
Ma~ Embleton
Duke Neiskens
The minutes for the June 18, 2001 Budget/Finance regular meeting and the June 25,
2001 budget worksession were approved as presented.
Mike Reichman of Montana Power addressed the committee regarding the Lighting
Districts expansion. He handed out two sheets detailing costs for energy
($1.91/unit/mo), operation and maintenance ($1.07/unit/mo), and "ownership"
($10.41/uniffmo) for a total of $13.39/unit/mo. He brought maps and explained the
current districts, and his proposal for the additional lights. The city will need to address
tree trimming to enhance fighting. Currently, the city pays $21,216.24 for 208 lights in
District #2, and $18,921.84 for 68 lights in District #3. Two options were presented:
O~tion 1 is for a combination of wood poles with overhead wire and steel poles with
underground wire for the newer subdivisions - 663 additional units in District g2 for an
additional cost of $154,031.16; Option 2 is for all steel/fiberglass poles - 857 additional
units for an additional cost of $240,256.68. The steel poles are considerably more
expensive, and Mike stated he was waiting for current cost figures for the fiberglass
poles. The wood poles are the least expensive. If an existing distribution pole can be
used, then the cost for Option 1 would be less. Light District #3 would not change except
that the boundaries will be reviewed and corrected. There are no up-fi-ont capital costs to
the city. Montana Power owns the system and will invest up to $1.5 million if the city
chooses steel poles. Mike stated that he would like to have the city attorney meet with
Montana Power's attorney to draw up a contract. The same model for Hardin was used
for Laurel, and meets IES standards. The Budget/Finance committee refers this matter to
the Public Works committee on July 9th to choose an option to recommend to council.
The resolution of intent would then be ready for the July 17th council meeting. The
committee thanked Mike for his presentation.
The committee then addressed and discussed Enterprise Fund reserves and preliminary
appropriations. Mary reported that initial figures show that the Water Fund has an ending
cash balance of $1.745 million, of which $415,604 is bond reserves, $63,250 is system
development cash reserve, and $104,350 is capital projects cash reserve. Duke presented
several scenarios on proposed appropriations and use of reserves. He stated that other
communities told him that a 10-15% reserve is adequate. Lengthy discussion followed.
According to one proposal, it was pointed out that if the reserve is going to be spent, then
Budget/Finance Committee
July 2, 2001
Page 2
$700,000 is on O&M or a specific project. The city needs to try to determine a set reserve
(eg. 15%) over and above the bond reserves, factoring in depreciation. Sewer is even more
critical than water and a 6% rate increase has been factored into the budget. More work and
discussion will be done on the enterprise funds at a later date.
The following purchase requisitions were reviewed and approved:
GENERAL FUND:
Install light bar, sken, radio, etc. in new car - police dept.
2 portable radios and accessories - police dept.
Rebffdd cemetery irrigation pump - cemetery
Pruning and dressing trees - cemetery
Finish landscape around Log Cabin (split w/Chamber) - parks
2 new diving boards - pool
Chemicals - pool
617.60
1,602.00
7,000.00
2,500.00
570.00
1,596.26
2,289.00
GAS TAX FUND:
400 ton cold mix
6 tires, robes & mounting for grader
$14,000.00
$ 3,900.00
WATER FUND:
2 dust control boxes w/fan for CPU's - water plant
50 meter yokes and 50 check valves - water system
Read-o-Matic assemblies, etc. - water system
$ 800.00
$ 2,314.00
$ 1,520.00
SEWER FUND:
Effluent meter - sewer plant
$ 1,850.00
SOLID WASTE FUND:
Dumping fees for May
$ 8,276.80
The committee reviewed the June Claims in the amoum of $718,109.11 and recommends to
council that they be approved.
The committee reviewed the Comp/OT reports for PPE 6/24/01.
The Payroll Register for PPE 6/24/01 totaling $86,789.02 was reviewed and approved by
the committee.
Budget/Finance Committee
July 2, 2001
Page 3
The meeting adjourned at 9:20 p.m. The next regular Budget/Finance Committee
meeting will be Monday, July 16, 2001 at 7:00 p.m. The next Budget work session will
be Tuesday, July l0th at 7:00 p.m.
Respectfully Submitted,
Clerk/Treasurer