HomeMy WebLinkAboutBudget/Finance Committee Minutes 04.07.2004MEMBERS PRESENT:
MINUTES
BUDGET/FINANCE COMMITTEE
April 7, 2004 5:30 P.M.
COUNCIL CHAMBERS
Chairman Mark Mace
Gay Easton
Kate Stevenson
Mayor Ken Olson
OTHERS PRESENT:
Mary Embleton
Larry McCann
Nathan Tubergen
Doug Poehls
The Budget/Finance Committee meeting was called to order by Chairman Mark Mace at
5:30 p.m., to discuss the following Preliminary budgets:
Water Plant
Water System
No public attended to offer comment.
Public Utilities Director Larry McCarm presented the Water Fund budget. He and
Nathan had reviewed the fund prior to the meeting, and they determined that capital
projects must come out of reserves. Revenues barely meet the operation, maintenance,
and debt service of this fund. Two projects are already scheduled to begin this spring:
$90,000 for the Main Street main line replacement from 1st to 3~; and $189,000 to move
the line at 12th Street and 1a Ave. These projects will come out of the system
construction line item.
Larry made the following changes to the system budget: reduce vehicle appropriation to
$24,000; and cut the $480,000 for a meter reading system. In the water plant budget,
there is $50,000 to clean and line the standpipe at the plant. Overall, $329,000 will be
coming out of reserves to balance this budget.
Larry and Nathan discussed the East First Street project with the committee. This
project will replace old main lines and get rid of dead-end lines. It is scheduled for
construction next year. Nathan proposes issuing bonds for the water and sewer portions
of the project. He will check with the Montana Board of Investments to sec if an Intercap
loan is feasible for the street work, to be paid back by street maintenance assessments.
The Water Facility Plan will be the guide documents for long-range planning. It will be
completed in April, to be adopted in May. The estimated cost for street, curb and gutter
for this project is about $900,000. The sidewalks may require an SID, or perhaps some
CDBG dollars are available to low-income residents in the area. Nathan hopes to have
solid figures for the East First Street project by the end of June.
Larry reported that they are trying a new treatment chemical at the plant, which may do a
better job for less money.
Budget Work session
April 7, 2004
Page 2
The city is in year 2 of the 3-year water rote increase. A 6% increase will take effect this
month, with another 6% next year. The committee discussed that a 3%/year increase is
necessary just for increases in operating costs.
Discussion followed regarding: 8th Ave. Project - currently negotiating with the state on
the storm water issue - pushed back to at least 2007 or 2008; Billings water plant is
currently at capacity - possible sale of treated water to Billings; possible developments
to the west of the city.
The meeting adjourned at 6:45 p.m. The next budget work session will be on
Wednesday, April 8th at 5:30 p.m. in the Old Council Chambers.
Respectfully Submitted,
Clerk/Treasurer