HomeMy WebLinkAboutBudget/Finance Committee Minutes 04.04.2006MEMBERS PRESENT:
OTHERS PRESENT:
MINUTES
BUDGET/FINANCE COMMITTEE
APRIL 4, 2006 5:30 P.M.
COUNCIL CONFERENCE ROOM
Chairman Mark Mace
Doug Poehls
Mayor Ken Olson
Gay Easton
Kate Hart
Mary Embleton
Perry Asher
The Budget/Finance Committee meeting was called to order at 5:30 p.m., by Chairman
Mark Mace. There was no public in attendance.
The minutes of the March 21, 2006 meeting were corrected and approved via motion by
Doug, seconded by Gay, and passed unanimously.
March claims totaling $317,252.56 were reviewed. Motion by Doug, seconded by Kate
to recommend approval of the claims by the council. Motion passed unanimously.
The following purchase requisitions were submitted for approval:
GENERAL FUND:
Dell Latitude notebook & accessories - mayor
Repair city hall and council building boilers - building maint.
Mobile Data Terminal for fire truck- fire department
Eagle th~m~al imager - fire department
$ 2,300.00
$ 2,867.62
$ 4,857.80
$ 9,200.00
Outgoing Fire ChiafTerry Ruffand incoming Fire Chief Scott Wilm were present at this
meeting to inform the committee about their requests for purchase of additional
equipment shown above. The purchase of these items is possible due to the additional
revenue coming in from the sale of the fire department's old radios ($1700 from Molt
Fire Dept. and $2400 from Industrial Communications), and fi.om two grants ($1000
fi.om Stillwater Mine and $3000 fi.om Town Pump). The difference in the costs will be
made up from line item #316 in the Fire Department's budget. Mayor Olson stated that
the Fire Department has made the extra effort to obtain grants, and their efforts are
appreciated. Motion by Kate, seconded by Doug to approve the $1,500 transfer to obtain
these items. Motion passed unanimously.
The Comp/OT reports were reviewed for pay period ending 3/26/06. The committee
also reviewed the Employee Leave Report for the first quarter of 2006.
The Payroll Register for PPE 3/26/06 totaling $106,141.18 was reviewed. Motion by
Gay, seconded by Doug, recommending council approval of the payroll register. Motion
passed unanimously.
BudgeffFinance Committee
April 4, 2006
Page 2.
tutereap Loan for East First Street paving: Mary stated that she still needs to meet
with the Public Works Director, Administrative Assistant to the Mayor, and the Mayor to
determine exactly how much to apply for to complete this project. The original estimate
was to borrow $330,000. Perry stated he met with Steve, who would like to see a 20-
25% contingency, especially for possible unexpected issues when removing the old street
bed. Mary explained that the Intercap loan differs fi.om an SRF loan, in that once you
commit to an amount, then the total is automatically sent to the city in one lump sum, and
is charging interest on the total amount at closing. An SRF loan charges interest on the
amounts drawn as the city requests reimbursement. So, it is more critical to have an
accurate figure when applying for an Intercap loan.
Budget process: Mary presented thc preliminary rates from MMIA. The rates for the
Liability Program remained unchanged, but the MOD factor decreased fi.om 1.1 to .97.
Since liability premium is based on payroll, and payroll will increase, this may be offset
by the decrease in the MOD factor for an overall net increase of zero. The rates for the
Property Program increased by 5%. However, the TIV (total insured value) decreased
slightly. Workers corr~p rates increased by 5% and the MOD factor increased fi.om .93 to
.95. With increases in the payroll, this will result in an overall increase of roughly 6%.
Premiums for the Employee Benefits Program will increase by 9.8% for the health
benefit. The dental and vision benefits will remain unchanged. Since the city has the
$1,100 and $700 caps in place, the premium increase will result in more out-of-pocket for
the Employee/Family and Employee Children coverages. The Insurance Committee will
need to be informed of the proposed rates. Mary is still waiting for one more General
Fund budget to input.
GASB 45: Mary will contact Oluess and Associates and Norm Klein for more
information.
Upcoming Projects: Park Maintenance District - Perry stated that he has worked with
the mayor on different approaches on the various projects. He discussed his allocation
proposal which was sent to thc auditors for review. E First St - The project did not
include replacing any curb boxes. Perry stated that the city may use the curb box
insurance money to replace the valves only. Discussion followed regarding the progress
of the construction work, including the discovery ofpossiblo contaminated soil and
abandoned fuel tanks, and a water leak. There was also discussion regarding the
designation of some handicap parking spots on the streets that are being repaved.
CIP: Perry stated that his allocation system will generate an additional $300,000 in
revenues to the General Fund. The excess generated by the allocation system can be used
for the CIP, especially big ticket items like the swimming pool. That way, the city would
not have to use the maximum levy for a GO bond.
Budget/Finance Committee
April 4, 2006
Page 3.
Impact Fees: Perry had nothing new to report on this issue.
Other issues: Mary received information on the Governor's TIF Conference on May 25th
in Helena. Discussion followed, during which it was stated that A1 Jones of the
Department of Commerce in Billings can also do a presentation. Perry told the
committee of his experience with TIF. Mary stated that she had received a phone call
from a business owner recently, asking how to ask the city to form a tax increment
financing district. Mary had advised the caller to write a letter to the council, and perhaps
get support from other business owners. The committee agreed that the business owners
need to start the program.
The next regular meeting will be on Tuesday, April 18th at 5:30 p.m.
For next agenda: Same as this meeting.
The meeting adjourned at 6:20 p.ro~
Respectfully Submitted,
Clerk/Treasurer