HomeMy WebLinkAboutBudget/Finance Committee Minutes 06.18.2001MEMBERS PRESENT:
OTHERS PRESENT:
MINUTES
BUDGET/FENANCE COMMITTEE
JUNE 18, 2001 7:00 P.M.
DPW OFFICE
Chairman Bud Johnson
Ken Olson
Mark Mace
Gay Easton
Chuck Rodgers
Mary Embleton
Dave Alien
The minutes for the June 4, 2001 Budget/Finance regular meeting were approved as
presented.
Dave Allen of Western States Insurance informed the committee of the upcoming
changes to the health insurance rates and coverage. He stated that the YCHP products
will be discontinued and replaced by Blue Cross/Blue Shield products. The Blue Select
plan is closest to the city's existing plan, an HMO, and would have rates 41.8% higher
than the current plan, with less coverage. He also briefly described the Blue Choice plans
which are "point-of-service" plans and gives more choices for doctors, with a $500
deductible and 70/30 co-insurance (approximately 35% rate increase), or $750 deductible
and 60/40 co-insurance (approximately 30% rate increase). He will also check into the
possibility of joining an association, namely the MM/A. The reasons for the rate increase
are that the city's loss ratio is 103-119% of premiurn, plus trend or cost of service
increases are from 15-20%. Dave also handed out information on how other employers
are dealing with this issue, which is widespread. Mary distributed a spreadsheet showing
premium rates over the last ten years. The dental premiums, as well as the life insurance
premiums, will stay the same. Vision coverage will be a separate policy, with possible
additional premium. Lengthy discussion followed regarding various features of the
different plans, and possible options for the future. Mark distributed a draft health
insurance survey that he thought may be useful in gathering information and educating
the employees. The committee suggested that a memo go out to all employees to inform
them of possible changes. Dave will help draft the letter. Firmer premium figures should
be available by the end of the week, and Dave will report back to the Budget/Finance and
Insurance committees. Bud asked the committee to decide if the city should go out for
bids on health insurance to see if there is a better deal out there, but the committee felt
that this would not be a good year to shop. Dave will also check into the option of a
cafeteria plan for the future. The committee thanked Dave for his presentation.
Mary presented the budget summary sheets and explained how they were filled in with
cash available as of 5/31 and with formulas to show the difference of revenues less
expenditures. She told the committee that decisions in wages affect the total budget, and
that she needed direction. She suggested that she draw up summaries on wages, health
insurance, and capital outlay separately so the effects of these major items can be
reviewed. The committee will meet again on June 26th at 7:00 p.m. for a work session.
Budget/Finance Committee
June 18, 2001
Page 2
Mary also reported that she had contacted Montana Power on the progress of the Lighting
Districts. Mr. Reichman said he would have figures ready by the July 2nd meeting. He will
meet with Larry and Pat Murtaugh sometime during the last week in June. Mary told the
committee that by law, special lighting districts had until the second Monday in October to
be finalized, so the new districts can be put in place this year.
May Journal Vouchers #130-135 were approved by the committee.
The committee reviewed the May Financial Statements. Mary explained that by having a
monthly history of the cumulative cash flow, and how it affects reserves, it will help in future
years to determine appropriate cash reserves at budget time. Motion by Mark. seconded by
Ken to recommend to council that the May Financial Statements be approved. Motion
passed unanimously.
The following purchase requisitions were reviewed and approved:
GENERAL FUND:
Purchase new computer - city attorney
Purchase new Lanier copy machine - police dept. 50%
Purchase new Lanier copy machine - fire dept. 25%
Purchase new Lanier copy machine - ambulance 25%
Purchase second user ability for ambulance program - ambulance
$ 1,660.00
$ 4,333.00
$ 2,166.50
$ 2,166.50
$ 995.00
STREET MAINTENANCE FUND:
373 ton road mix
POLICE TRAINING FUND:
$ 2,237.28
Practice ammunition - training
Ammunition for training and reserves
$ 1,113.24
$ 793.60
GAS TAX FUND:
Culverts and clamps
500 ton Mc-goo cold mix
600 ton MC-800 cold mix
$ 5,000.00
$19,000.00
$19,800.00
CAPITAL PROJECTS FUND:
Rental on equipment to level soccer field - park improvement
Haul dirt to soccer field - park improvement
$ 500.00
$10,162.50
Budget/Finance Committee
June 18, 2001
Page 3
WATER FLrND:
6" core cut in concrete wall - reservoir
Liquid alum - water plant
Computer hardware for control system - water plant
$ 1,500.00
$ 2,800.00
$ 3,500.00
200' jet rodder hose
$ 875.00
The committee reviewed the Comp/OT reports for PPE 6/10/01.
The Payroll Register for PPE 6/10/01 totaling $100,681.16 was reviewed and approved by
the committee.
Under Other matters, Bud stated that ChiefMusson had requested the opportunity to present
an alternative budget to the committee. He will be informed that he is invited to the June 26th
meeting, along with the city attorney, to present their revised budgets.
The meeting adjourned at 9:00 p.m. The next regular Budget/Finance Committee
meeting will be Monday, July 2, 2001 at 7:00 p.m. The next Budget work session will be
Tuesday, June 26t~ at 7:00 p.m.
Respectfully Submitted,
Clerk/Treasurer