HomeMy WebLinkAboutBudget/Finance Committee Minutes 05.29.2001 MINUTES
BUDGET/FINANCE COMMITTEE
MAY 29, 2001 7:00 P.M.
OLD COUNCIL CltAMBERS
MEMBERS PRESENT:
Chairman Bud Johnson
Ken 01son
Chuck Rodgers
Mark Mace
OTHERS PRESENT:
Gary Temple
John Smith
Larry McCalm
Mary Embleton
Jean Kerr
Duke Nieskens
The Budget/Finance Committee meeting was called to order by Chairman Bud Johnson,
at 7:05 p.m., to discuss the following preliminary budgets:
Airport Authority
Water Plant
Sewer Plant
City Court
Water System
Sewer System
John Smith, chairman of the Airport Authority, presented the budget for the Laurel
Airport. He stated that AIP-07 has begun, and the other two projects, AIP-05 and -06,
will be finishing up this summer. There will be two entities selling fuel, so the sales
revenue should be higher for FY'02. He has budgeted for secretarial service since he
retired from his dentist office and no longer has the services of the secretary there. The
airport needs a part-time manager and a part-time person for snow removal and weed
control. A two-year audit will need to be done for this fiscal year. Repairs to the runway
.are planned, and the new runway should be finished around June l0th. Capital outlay
~tems include a 30 x 40 storage building, an east end access road, and underground
sprinklers for the grounds around the trailer. John suggested a tour for the council this
summer. He also stated that they are working on a grant to build a new hangar. The
committee thanked John for all his hard work at the airport, and for his presentation.
Judge Jean Kerr presented the City Court budget, asking for a wage increase for the
judge position to put it at a higher level than the Court Clerk's wage. An ordinance
change is required to change the judge's salary. She also asked for a merit increase for
Sheri in the same amount as was requested by the city attorney, because this position is
shared by both departments. Jean stated that she will not apply for a grant this year for
community service as she will not be renewing the contract with Mountain Peaks.
Instead, the court will go back to using Beta Alternatives. The court received three new
computers from the Supreme Court a few weeks ago, and they will also receive the new
accounting/tracking software, All Court, at the end of July. Jean also requested that the
city begin saving for a Laser Fische program for the court through the Capital Projects
fund. The court lacks space to store documents, and this program would alleviate that
problem. Total cost of the system is $9,075, so she requested one-third of it be saved this
year, or $3,025. Overall, the court budget increased 4% over last year.
Budget Work Session
May 29, 2001
Page 2
Larry and Duke presented the Water Fund budget. Lar~y explained that the city will
apply for a $10,000 DNRC grant and a $15,000 TSEP grant for preliminary engineering
for the plant and system future needs. This will put the city in a competitive position to
apply for construction grants through the Treasure State Endowment Program when the
legislature meets in 2003. Both grants require 100% match. A 9% rate increase is
needed for FY'02, and was recommended by Midwest Assistance Program's consultant.
The city is still working on a $1.5 million line item grant in the federal budget, as well as
a $1.5 million WRDA grant. Duke then reviewed the Water Plant budget with the
committee. He is requesting an additional position of Chief Operator to oversee the day-
to-day operations of the plant. This budget is a combination of the prev/ous facilities
and treatment departments to simplify the budget. Capital outlay includes a $200,000
addition to the plant to meet safety and hazard concerns. Overall, the water plant budget
increased 20%.
The budget for the Water System was reviewed next. Wages increased with the addition
of 25% of the Assistant Public Works Director salary. Previously, the booster station and
reservoir were under separate department (organization) numbers, but they are all under
water system for this year, for simplification. Duke proposed to begin a water line
replacement program of $200,000 per year, and identified areas on the south side of town
for FY'02. Capital outlay items include $45,000 for ~/~ ora backhoe and $325,000 for an
automated meter reading system. Duke also told the committee that the booster station
needs a major upgrade. Overall, the water system budget increased 127%
Due to the length of this meeting, the committee decided to postpone the Sewer Plant and
Sewer System budgets until the June 4t~ meeting.
Bud raised the issue of allocating costs for administration of the enterprise funds to be
reimbursed back to the General fund. He stressed that it should be kept simple, yet truly
reflect these costs of operating the enterprise funds. He felt that trying to determine
actual direct costs would be time consuming and difficult. He suggested that Mary check
with the auditor and other cities of similar size to see if other methods of allocation can
be applied to Laurel. The committee agreed that this should be investigated.
The meeting adjourned at 9:45 p.m. The next regular Budget/Finance Committee
meeting will be Monday, June 4, 2001 at 7:00 p.m., and the next Budget work session
will be on Wednesday, May 30t~ at 7:00 p.m.
Respectfully Submitted,
Mary K. l~mbleton
Clerk/Treasurer