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HomeMy WebLinkAboutBudget/Finance Committee Minutes 03.21.2006 MINUTES BUDGET/FINANCE COMMITTEE MARCH 21, 2006 5:30 P.M. COUNCIL CONFERENCE ROOM MEMBERS PRESENT: Chairman Mark Mace Doug Poehls Ken Olson Gay Easton Kate Hart OTHERS PRESENT: Mary Embleton Chairman Mark Mace called the regular meeting of the Budget/Finance Committee to order at 5:32 p.m. There was no public in atteagtance. The minutes of the March 7, 2006 Budget/Finance regular meeting were approved as presented, via motion by Kate, seconded by Doug, and passed unanimously. February Journal Vouchers #531-534 were reviewed by the mayor, and Mary reported they are all typical entries. Utility Billing adjustments for February 2006 were reviewed by the committee. They also were typical entries. Motion by Kate, seconded by Doug to approve the journal vouchers and utility billing adjustments as presented. Motion passed unanimously. The February 2006 Financial Statements were reviewed by the committee. With 66% of the year expired, the General Fund expenditures are at 67%, which causes some concern due to the fact that if the trend continues, the General Fund could go into the reserves by year- end. The police officer's wages are beginning to show the impact of the union contract, as Mary predicted. General Fund revenues are at 66% for the year, which is a very good sign. Doug mentioned the negative cash balance for the Comprehensive Insurance fund, and Mary explained that since the insurance premiums are paid in one payment at the beginning of the, it is typical for the fund to show the negative cash balance, until the end of the year when the second half of the tax revenues are collected. The HOME fund also shows the payment expenditure first, then a reimbursement aRerwards. The negative cash balance in Fund 04001 for the East First Street project is due to the fact that there was no cash transferred from the water, sewer, and street funds. There will be more activity in March, and funds will be transferred at that time. Motion by Kate, seconded by Doug to recommend approval of the February Financial Statements to the council. Motion passed unanimously. The following purchase requisition was presented for approval: SOLID WASTE FUND: 34 300-gallon containers- collection $ 8,426.00 Perry explained that these were more expensive, but that the labor savings for maintaining them would offset the costs in time. The committee reviewed the Comp/OT reports for PPE 3/12/06. Budget/Finance Committee March 21, 2006 Page 2. The Payroll Register for PPE 3/12/06 totaling $130,862.02 was reviewed by the committee. Motion by Doug, seconded by Gay to recommend council approval of the payroll register. Motion passed unanimously. The committee was updated on the following projects: Park Maintenance District - Ken reported that he would like the council to try to determine a direction for the parks and pool, and put that information on the new kiosk at Thomson Park. He would like to form a group, and suggested Mark, Kate and Jenny, and this group would go forward with the parks and pools projects. SID #111/East First Street- the resolution awarding the sale of the bonds for the sidewalk SID #111 is on tonight's council agenda. Mary received 4 bids bom two bidders: Montana Municipal Cooperative from Bozeman, and Yellowstone Bank, which submitted 3 bids (options). The bids were faxed to Dorsey & Whitney for review, and Mae Nan Ellingson recommended the bid bom Montana Municipal Cooperative at 5.48% interest. Mary further explained that this bid also best fit the intent to keep the assessment payments bom the property owners as consistent as possible over the life of the bond. This will keep it wore affordable for the property owners. Construction work was scheduled to begin on Monday on the East First Street project, but the weather didn't cooperate. CIP - Ken reported that it is in the works. Impact fees - Perry stated that he hasn't made any progress. Mark asked if there has been any formal council discussion. There has been some discussion, mostly in relation to subdivisions. Perry stated that it is not that hard to create these fees. Other communities will be contacted to see how they have implemented these fees. Intereap loans - Mary distributed copies of payment schedules for a $330,000 loan for the paving portion of the East First Street project. The schedules were for 3 years and 5 years. She recommended that the 5-year schedule would probably work better by tying up less money each year for debt service. Discussion followed. Mary asked for guidance, and Ken stated that a meeting will be set up soon with the appropriate departments to determine the amount that should be applied for, and then an application can be submitted. Draft of Response to Audit - Mary distributed copies of Judge Kent's response to the audit, which was very similar to past responses. Discussion followed. The auditors were waiting for a letter bom the city attorney, which was done on Monday. They will then issue the final audit. The city will then publish notice in the newspapers making the audit available for the public to view. After the final audit is received, then the city will send in the response. Budget Process - Mary reported that she has begun entering the budget data. Perry has been working on the allocation system, and has nearly completed it. He and the mayor will meet with Norm Klein on Monday to review the proposed system Perry is also working on the fee schedule. Mayor Olson gave credit to Perry for working on these two big projects, which have needed to be done for some time. Once these are finished up, then the budget process Budget/Finance Commi~ee March 21, 2006 Page 3. can get back on track, so then the Budget Calendar will need to be revised to reflect new dates. Other issues: Mary presented information on GASB 45 which is a new accounting standard issued in 2004. It requires that state and local government account for and report the annual cost of OPEB (other post-e~aployment benefits). Discussion followed. Kate stated that the City/County Health Department is dealing with this issue. Mary will research and bring more information to future meetings. Mary also reminded the committee of the Clerk's Institute May %12 in Billings. She is on a panel for a session on office technologies, and will team up with Marita Herald, the City Clerk of Billings. The Elected Officials portion of the Institute is May 10-12, and Mary encouraged attendance. Mayor Olson informed the committee ora letter from a company that submitted an RFQ for the Performance Contract, but the submittal was late by and hour and 20 minutes. Therefore, it was returned, unopened. The company is requesting the council to reconsider. It was the consensus of the committee that the city should not consider the request to open up the bidding for another two weeks. The BFQ was adequately advertised, and the ad was clear regarding late submittals. The next regular Budget/Finance meeting will be held on Tuesday, April 4th, 2006 at 5:30 p.ra. The next agenda will include an item for Administrative Assistant Comments. The same items will be on the next agenda, with the exception of the response to the audit. The meeting adjourned at 6:12 p.m. Respectfully Submitted, Clerk/Treasurer