HomeMy WebLinkAboutBudget/Finance Committee Minutes 04.23.2001 MINUTES
BUDGET/FINANCE COMMITTEE
APRIL 23, 2001 7:00 P.M.
OLD COUNCI~ CHAMBERS
MEMBERS PRESENT:
Chairman Bud Johnson
Ken Oison
Gay Easton
Mark Mace
OTI-IERS PRESENT:
Gary Temple
Map] Embleton
The Budget/Finance Committee meeting was called to order by Chairman Bud Johnson,
at 7:05 p.m., to discuss the following preliminary budgets:
Mill Levy
SID #1 I0
Comp Insurance Fund
Employee Health Ins. Fund
Council
City Election
Board of Adjustment
General Fund Revenue
PERS Fund
Police Health Insurance Fund
Mayor
Air Pollution Control
Civil Defense
Mary began by stating that since the legislature recently concluded, it was too early to be
able to determine a mffi levy at this time. The Big Bill (HB 124) passed the legislature
and will have a big impact on the city's revenues as well as on the formula for figuring
the mill levy. The Dept. of Commerce will need time to work on the new formula and
then will inform cities, counties, and school districts.
The committee then reviewed the General Fund Revenue. Mary used 95% of last
year's budget for the tax revenues. She then had the committee note that the following
revenues will be eliminated by I-IB124: all motor vehicle taxes and fees (except for the
local option tax); liquor, wine and beer tax apportionments; corporation license tax; all
gambling revenue; personal property tax reimbursements; and tax relief reimbursements.
In the General Fund, these revenues total approximately $510,000. According to I-lB124,
the state will keep all of these revenues and then will issue each entity an "entitlement"
based on the state's economic growth. It is not known at this time whether these
entitlement paymems will be issued monthly, quarterly, or annually, nor is it known
whether the payments will be at least revenue neutral by replacing the lost revenue in
total. Other revenues in the General Fund were reviewed. The administrative charges
collected from the enterprise funds were not included at this time, so that the direct
charges method could be determined.
Budget Work Session
April 23, 2001
Page 2
Mary reviewed SID #110 revenues and expenditures with the committee. Mark asked if
this was the only existing special improvement district in town, which it is.
The Comprehensive Insurance Fund, PEPS Fund, Group Health Fund, and Police
Health Fund were reviewed next. Since these are all tax-levied funds, Mary explained
that HB124 also affected the revenues, and it is also too early to tell how the levies will
be determined. Mary told the committee that these funds were not funded fully by the tax
levies inthe past. These funds were designed to give relief to thc General Fund and that
all insurance charges should be coming directly out oftbese funds. Instead, the city
shows the expenses in the General Fund, and then reimbursements are made in the form
of revenue transfers from these special revenue funds. However, there was a piece of
legislation, I-[B409, that exempts employer-provided health insurance to be exempt ~om
the levy caps imposed by SB184 and II05. I£it can be done, Mary recommended that the
city look into fully funding the health insurance costs by levying enough mills in the
special revenue fund, and remove these expenditures out of the General Fund, It is
estimated that health insurance will cost the General Fund approximately $296,000.
The committee then reviewed the budget for the Mayor. In total, it came in at 97% of
last year's budget. Consultant's services was cut by $2,000. Gay reviewed the Council
budget with the committee. Travel was increased $1,000 to allow for more council
members to attend the League Convention in the fall Overall, this budget came in at
102% of last year.
The Air Pollution Control budget was slightly increased this year. The county will
notify the city of our share of that cost soon. Because this is an election year, the City
Election budget was increased to $3,500. The county performs this service, so it is
difficult to predict what thc actual costs will be at this time. The Civil Defense and
Board of Adjustment budgets remained the same as last year.
Mury then gave a short report on the district meeting in Columbus last Friday. She
toured their new city hall and had good discussions with Norm Klein of the Dept. of
Commeme, and Tom Kaiserski ofBeartooth RC&D.
The meeting adjourned at 7:45 p.m. The next regular Budget/Finance Committee
meeting will be Monday, April 30, 2001 at 7:00 p.ra., and the next Budget work session
will be on Wednesday, April 25th at 7:00 p.m.
Respectfully Submitted,
Clerk/Treasurer