HomeMy WebLinkAboutBudget/Finance Committee Minutes 04.11.2001 MINUTES
BUDGET/FINANCE COMMITTEE
APRIL 11, 2001 7:00 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT:
OTHERS PRESENT:
Chairman Bud Johnson
Chuck Rod#ers
Ken Olson
Gay Easton
Mark Mace
Gary Temple
Mary Embleton
Jim Stevens
Larry McCann
Steve Klotz
Andy Loebe
The Budget/Finance Committee meeting was called to order by Chairman. Bud Johnson,
at 7:05 p.m., to discuss the following preliminary budgets:
Building Dept./Code Enfomement
Light District #2 (Residential)
Gas Tax
Sweeping
Fire Inspections
Light District #3 (Comm.)
Street Maintenance
Larry presented written comments, a copy of which is attached to these minutes. Some
discussion was held regarding merit pay increases for non-union members.
Steve presented the Building Dept./Code Enforcement budget. The overall increase
over last year was 10%, but if personnel costs are not included, the overall operating
expenditures decreased by 14%.
Mary stated that she had budgeted a 20% increase in health insurance premiums as an
estimate. Other employer costs for personnel increased: worker's comp mod factor went
fi:om 1.22 to 1.34, and the liability rate increased from 3.73/100 to 3.86. Property
insurance increases have not been determined yet.
Jim presented the Fire Inspection budget, and explained that he cut some operating
expenses, and included a 2.7% wage increase. Overall increase was 5% from last year's
budget.
Andy presented the Gas Tax budget, and explained his allocation of personnel, which is
different from last year. He made cuts in consulting, culverts, machinery & equipment
rental, and grant match transfers. There is $150,000 in construction, which will he for
south side projects (S 1a Ave, Cedar, S 4t~, Forrest, etc.). Repairs to 5th Ave/Idaho will
be done out of the current budget. Overall, this budget decreased by 5%.
Budget/Finance Committee
April 11, 2001
Page 2.
Next, Andy went over the Street Maintenance budget. Again, the allocation of
personnel is different than last year. The sidewalk expenditure of $10,000 was missed, so
Mary was instructed to put that in this budget. This resulted in an overall decrease of
41% fi-om last year's budget.
The Sweeping District budget was reviewed by Andy. He allocated 25% of the
mechanic wages to this budget this year due to the fact that the sweepers are a high
maintenance item. He cut $4,000 in parts. Overall, this budget was the same as last year.
Larry then presented the budgets for Light Districts 2 & 3. He explained that at this
time, these budgets are the same as last year, with the exception ora 10% increase in
electrical costs. Since these districts are presently being reviewed for expansion, the
budgets will have to be revised. According to Mary, there will probably be debt service
for these funds, depending on how Montana Power's proposal ends up. It was explained
that the process for the Lighting District changes will be similar to an SID, and that there
may be the need for two resolutions for assessments: one for the construction costs, and
one for the maintenance costs.
Mary then reviewed the revenue budgets for Gas Tax, Street Maintenance, and Sweeping
District. The state has not yet notified the city of its allocation of Gas Tax monies, so
using last year's figure of $141,000, less preliminary expenditures of $342,000 leaves a
shortfall of $201,000. The March cash balance for this fund is $162,000, so this fund will
need more work.
Based on last year's assessments, the Street Maintenance fund revenue should be close
to $133,000. Subtracting the preliminary expenditures of $198,500 again leaves a
shortfall of $65,500. The cash balance for March is $193,200 so this fund should be all
right with no increase in the assessment needed this year.
Revenue for the Sweeping District is estimated at $23,350. Preliminary expenditures are
$44,575 leaving a shortfall of over $21,000. March's cash balance is $35,000, so
depending on how the remaining three months end up will determine whether this fund
needs to be revie~ved.
Discussion followed regarding upcoming street projects, city crew experience, and the
possibility of contracting out some of the street work. The committee thanked the public
works employees for their presentations.
Mary then addressed the committee to express concern over the uncertainty of General
Fund revenue due to the "Big Bill", increased health insurance premiums, and increases
in wages. She is concerned about the overall impact these issues will have on the
General Fund.
Budget/Finance Committee
April 11, 2001
Page 3.
The meeting adjourned at 8:40 p.m. The next regular Budget/Finance Committee
meeting will be Monday, April 16, 2001 at 7:00 p.m., and the next Budget work session
will be on Monday, April 23rd at 7:00 p.m.
Respectfully Submitted,
Clerk/Treasurer