HomeMy WebLinkAboutBudget/Finance Committee Minutes 03.20.2002 MlNUTES
BUDGET/FINANCE COMMITTEE
MARCH 20, 2002 7:00 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT:
Chairman Ken Olson
Bud Johnson
Gay Easton
Mark Mace
OTHERS PRESENT:
Mary Embl~on
Dan Mears
The Budget/Finance Committee meeting was called to order by Chairman Ken Olson, at
7:02 p.m., to discuss the following preliminary budgets:
Mill Levy
Comprehensive Insurance Fund
Employee Health Insurance Fund
Council
Elections
Board of Adjustments
SID #110 Fund
General Fund Revenue
PERS Fund
Police Health Insurance Fund
Mayor
Civil Defense
Air Pollution Control
Bud had asked Mary to prepare a Tax Levy Requirement Schedule for the General Fund
only. This is normally done towards the end of the budgeting process; however, Bud's
idea was to do it first as framework for the General Fund as the process progresses. This
will keep the General Fund in focus. The Cash Reserve was set at $435,000, and the
Cash Available at 6/30/02 was projected at $510,000. The current year budget
appropriations are $2,365,029, but the Target Appropriation for '02-03 is set at
$2,288,680. A list of the individual department requests will be filled in as the process
continues. Bud stated that no major projects will be fimded fi-om the General Fund as
there is not enough revenue. Therefore, all projects will be listed on the bottom of the
form. As presented, revenues are short of appropriations by $75,000. Revenue figures
are preliminary based on last year and were explained in greater detail later in the
meeting.
Mill Lew: Mary used last year's worksheet to determine the new mill levies for all
funds. The General Fund worksheet was reviewed, and Mary pointed out the following
questionable areas: Line 2 - a new inflation rate will be determined by the DOR; Line 4
- the Personal Property Tax reimbursement figure may not have any beating on the
worksheet this year, as it may be expired, so no figure was used at this time; Line 7a -
the new construction figure will not be determined by the DOR until July, so last year's
Budget/Finance Committee
Preliminary Budget Work Session
March 20, 2002
Page 2
figure was used. The value of a mill was estimated to be $6070. Based on these
assumptions, the number of mills allowed went fiom 82.65 last year to 85.79, or
$501,438 in property tax revenue to $520,725.
General Fund Revenue: Mary then went through the remainder of the General Fund
revenues, pointing out that the figure for Personal Property Tax Reimbursemem was
unknown, and therefore not included at this time. Total non-tax revenues were
$1,692,955. This includes a 3% increase in HB124 Entitlement revenues, which will be
applied to all the appropriate tax-levied funds. There is one new revenue stream that the
city may wish to consider this year, and that is Franchise Fees for cable TV, estimated at
approximat ely $30,000.
Comnrehensive Insurance Fund ~#2190): Mary explained the mill levy calculation for
this fund, increasing fiom 8.92 mills ($54,118) to 9.26 mills ($56,200). Total revenues
are estimated at $80,100. Appropriations are estimated at $75,570, using a 10% increase
for liability, buildings, vehicles and equipmem, and bonds. However, MMIA will not
release their figures until after April 1~t, so this may change. At this time, the revenues
are $4,530 ahead of appropriations.
PERS Fund{#2370): Mill levy authority increased from 6.34 mills ($38,465) to 6.58
mills ($39,945). Because PERS is based on wages, an estimated 5% was applied to last
year for a total appropriation of $53,000. Total revenues are $56,110 for a $3,110 figure
of revenues over appropriations.
Groun Health Insurance Fund {#2371): Last year's authorized mill levy was 11.36
mills ($68,921). This year the mills increased to 11.79 ($71,574). insurance costs for
General Fund employees are estimated to be $377,562, compared to this year's estimate
of $323,084. Last year, the city had to apply the provisions of liB409 to levy an
additional 15.42 mills ($93,525) to try to make up the difference. An 18% premium
increase is expected fi'om BC/BS. This would make the average cost per employee per
momh around $900. If the city uses HB409 again this year, it could mean an additional
20.49 mills ($124,375). Total revenues would be $224,600, which is $152,962 short of
expenses. If the city chose to limit the insurance premiums it pays on behalf of the
employees, it would rolieve this problem
Police Health Insurance Fund I[02372): This fund is used in con. junction with #2371 to
pay for health insurance costs. Last year's mill levy of 2.54 mills generated $15,410.
This year's mills could increase to 2.64 ($16,003). HB409 was used for this fund last
year to generate 6.01 additional mills, or $36,489. If applied again this year, HB409
would generate 7.39 mills or $44,857. This would bring the total revenues to $67,885.
Budget/Finance Committee
Preliminary Budget Work Session
March 20, 2002
Page 3
By adding this fund to #2371, total revenues are $292,485 which is still more than
$85,000 short of the estimated health insurance costs.
The committee then reviewed the Council, Mayor, Elections, Civil Defense, Board of
Adjustments, and Ak Pollution budgets. These all remained relatively the same as last
year. Discussion was held regarding the purchase of new chairs for the council chamber.
Mary will do some checking on pric'mg for 10 to 12 quality chairs for around $230 each.
The mayor's budget includes funding for a family insurance premium, rather than the
amployeeJspouse premium funded for the prior mayor.
SII) #110 Fund: There are 11 participants remaining on this program. Their
assessments total $9,547, and total revenues will be about $10,247. Yellowstone Bank
holds the note on this program, and the debt service will be $12,596. The shortfall will
be covered by reserves. Due to several property owners paying offthe SID early, the
note at the bank will be paid offabout 4 years early, finishing in July of 2008.
The meeting adjourned at 8:30 p.m. The next regular Budget/Finance Committee
meeting will be Monday, April 1, 2002 at 7:00 p.m., and the next Budget work session
will be March 27t~ at 7:00 p.m.
Respectfully Submitted,
Clerk/Treasurer