HomeMy WebLinkAboutCouncil Workshop Minutes 08.28.2018MINUTES
COUNCIL WORKSHOP
AUGUST 28, 2018 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Tom Nelson at
6:30 p.m. on August 28, 2018.
x Emelie Eaton
x Bruce McGee
Scot Stokes
Richard Klose
OTHERS PRESENT:
Public Input
There were none.
_x Heidi Sparks
x Richard Herr
x Iry Wilke
x Bill Mountsier
Matthew Lurker, Chief Administrative Officer
Rick Musson, Police Chief
Brent Peters, Fire Chief
Kurt Markegard, Public Works Director
Judy Goldsby, LURA Chair
General Items
• Appointments of Laurel Police Officers: Hunter Heusner and Steven Baumgartner
Police Chief Musson introduced Mr. Heusner and Mr. Baumgartner to Council. Both gentlemen will
be present at next week's Council meeting.
Mr. Heusner is from Illinois. He scored first on nearly all the hiring criteria.
Mr. Baumgartner is from Laurel.
It was questioned what each of these gentlemen's backgrounds was. It was clarified that both these
gentlemen are under 30 years of age. Both have bachelor's degrees in criminal justice. Mr. Heusner's
father was a Fish and Game Officer in the State of Illinois. Mr. Baumgartner interned with the
department while going to school.
Chief Musson also announced that Captain Guy would be retiring next Tuesday, September 4h. There
will be a celebration starting at 5:30 p.m. in the Ambulance conference room.
® Appointments to Laurel Volunteer Fire Department: Justin Romero, Matt Willoughby,
Darin Warver, and Levi Jones
Fire Chief Peters introduced Justin Romero, Matt Willoughby, Darin Warver, and Levi Jones to the
Council. This will bring the total number of volunteers for the Fire Department up to 41 out of a total
of 45. The Department will be opening up another application process in the coming months to try
and fill the remaining spots on the Department.
Council Workshop Minutes of August 28, 2018
® Appointments to Laurel Volunteer Ambulance: Mandi Crable, Keoni Momohara, and
Philip Hackman.
Fire Chief Peters introduced Mandi Crable, Keoni Momohara, and Philip Hackman to Council. They
are all recently licensed EMI's. Ms. Crable had been licensed approximately 11 years ago and is
co2ning back into the field. This will bring the total volunteers for the Ambulance Service to 19 out of
30. The application process will open up again in September to attempt to fill the remaining spots.
Appointment to Laurel Volunteer Ambulance as Ambulance Driver: Devin Johnson.
Fire Chief Peters introduced Devin Johnson, who was unable to attend, to Council. The Ambulance
Service is trying something new. Devin is being hired on only as an Ambulance Driver and will take
the class this fall. This option is being tested to see if this is a potential solution in the future.
There have been City employees who have expressed interest in driving for the Ambulance Service.
However, it is unclear how this would work exactly. A policy would need to be in place prior to a
City employee volunteering their time to drive the ambulance.
Executive Review
Resolution - Resolution awarding CMG Construction, LLC the contract for the City of
Laurel's 2018 Pavement Maintenance Project and to authorize the Mayor to sign the
contract on the City's behalf.
Fire Chief Peters had to leave tonight's meeting early for another engagement. The Mayor skipped to
the Update on Fire District Contracts before proceeding with the scheduled agenda.
Kurt Markegard, Public Works Director, presented the 2018 Pavement Maintenance Project to
Council. The City went out for a re -bid on this plan as they had only received a bid for chip sealing.
The contractor was unable to complete the work this fall. Council did not award that contract. Prior to
going out for rebid, contractors were contacted to see if the City were to rebid the project would they
be interested in bidding. There was enough interest that the project was rebid. The City received two
bids for the work. The engineer's estimate was $353,264.50. CMG Construction's bid was for
$357,231.00. The second bid was from Askin Construction of $448,472.00. The low bid from CMG
Construction was recommended to Council. The goal would be for these projects to be completed this
fall, as soon as possible. Chip sealing will need to wait until next year. In order for the gravel to
embed into the asphalt it needs to be hot and the asphalt warm.
e Resolution -, A resolution of the City Council is requesting a reservation of Bridge and
Road Safety and Accountability Program funds as required by Montana law.
Bethany Langve, Clerk/Treasurer, spoke regarding this resolution. This resolution is to reserve the
new gas tax (HB -473) for this fiscal year. The amount $48,369.00 which is roughly half a fiscal year.
The City must reserve those funds between September Is' and November 1St requesting they be held
for the next two years. Those funds will need to be used by the end of fiscal year 20.
It was questioned if these funds have to be used on a particular project. It was clarified that these
funds operate more like a grant. The example of East 6' was given. This project qualifies for these
funds. In order to use these funds, the City will need to submit to the State a project assessment (what
the funds will be used for and the scope of the project). Upon the completion of the project, the City
will submit invoices and final project assessment (how the project turned out) in order to received
reimbursement. Similar to the old gas tax in that it must be used on street projects. If the City does not
use those funds, the State will keep the funds. This fiscal year the City anticipates receiving
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Council Workshop Minutes of August 28, 2018
$97,378.00. It is anticipated that these funds will be used to complete the East 6th project towards the
end of fiscal year 19. The Council could potentially see a request to reserve these funds again next
fall.
It was questioned as multiple years are reserved, will the City have to identify which years reserved
funds they are requesting. It was clarified that the accounting detail would identify what year the
reserved funds are from.
It was questioned if the older funds would be used first. It was clarified that yes, these funds are
rolling and if not used in the correct timeframe will be given to the State.
* Resolution — LURA Grants
o Coburn Tax Service — Facade
o Lowell's Barber Shop — Farade
o David Atkins — Technical Assistance
LURA has recommended these grants to Council. The chair from LURA is present as well as each of
these applicants for any questions.
It was questioned if these issues recently brought before Council was in this fiscal year or the
previous fiscal year. It was clarified that those were from the previous fiscal year. It was further
questioned if those approved by the Council last week were in this fiscal year or last fiscal year. It was
clarified that those payments would be made in this fiscal year. The requests on tonight's agenda are
for this fiscal year.
Judy Goldsby, LURA Chair, spoke regarding the three recommendations from the Laurel Urban
Renewal Agency. One fagade request is for Lowell's Barber Shop. This request is for assistance on
work that has already been completed. Another fagade request is for Coburn Tax Service, they are in
the process of finalizing their plans and will be moving forward in the very near future. Their building
is one of the oldest in the City and is in need of updates and improvements.
Mayor Nelson stated he had received questions via the Mayor's listserve from the Mayor of Roundup
on other class three cities that have TIF Districts. He has invited the Mayor from Roundup to attend
the next LURA meeting and will show them the various projects around town that TIF District funds
have been used to improve.
The final request before Council is a Technical Assistance grant request for David Atkins. The
applicant, Leslie Atkins wife of the applicant, spoke to what they were requesting in their Technical
Assistance Grant application. They are asking for assistance with the architect fees. They turned
vacant storage space into two new apartments and revitalized a storefront to house their business.
It was questioned if LURA is still working with the same architecture firm. It was clarified that
LURA is working with a few architecture firms depending on the need. For this project, they used
High Plains, and they are well versed in revitalizing old buildings. They utilized large windows to
bring light into the remainder of the space.
It was questioned how the LURA grants work. The example of Mr. Atkins, who had previously
received grant funds is requesting additional funds. It was clarified that there are two different parts to
the Fagade grants. There is a sign component and landscaping component. There is also a Technical
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Council Workshop Minutes of August 28, 2018
Assistance grant which is for plans only. Each of these is separate, however, if an applicant is
awarded over $5,000 that must come before Council for approval. Council has seen those that had not
come to Council for prior approval. However, these are new and require Councils prior approval.
LURA will be utilizing a spreadsheet to assist in tracking this information. It was further questioned
what Council approved last week. It was further clarified that the Council had approved the Large
grants, which can total up to $100,000 each year. The Large grant is separate from the Fagade and
Technical Assistance grants.
Grant funds are dispersed to applicants until the work has been completed. There are also waiting
periods before an applicant can apply for additional funds.
@ Presentation of the 2018-2019 Preliminary Budget and Tax Resolutions (PH on
09104/2018)
Bethany Langve, Clerk/Treasurer, presented the Preliminary Budget and Tax Resolutions. The Tax
Resolutions are the same as last year. The City assessed properties for various items as listed on the
resolutions. The only resolution that will not be moving forward this year is the Elena Maintenance
District. This fund has excess revenues. Therefore the City cannot afford asses for this district this
year. Boulevard trees will be planted. The City can only assess for the amount required to perform the
maintenance on the park in the Elena Subdivision. If any Council Members have questions before
next Tuesday, please contact the Clerk/Treasurer for further clarification.
Mayor Nelson read his letter at the beginning of the Preliminary Budget, see attached. The Mayor and
Clerk/Treasurer have been working on this budget since February of this year. Budget prep for next
years budget will begin after the first of the year. Mayor Nelson requested the Clerk/Treasurer further
explain how the mills were divided, see attached.
The Clerk/Treasurer has run this budget by the auditors and very proud of this budget. As Council
Members review the budget book, they will see notes underline items explaining why there was a
change on that particular line item. This should help answer any of the questions Council Members
have while reviewing this budget.
It was questioned if the Airport's new runway will affect their mills in the future. That is unknown
until the tax assessment has been completed. It may change their taxable value and change the mills
the City budgets.
Mayor Nelson clarified that there was a focus on the City's debt services. This shows how much debt
the City currently has when they retire and will direct when the City can move forward on projects. It
is very important to pay attention to these figures.
If the Council needs a hard copy of the budget, please contact the Clerk/Treasurer.
s Council Issues:
o 2017 Intake Update
The contractor who will remove the rock weir will be in the area this week and take a look at the rock
weir to get an idea of what this project will look like after high water. The rock weir will be removed
this fall. There will be no increase in cost from what Council approved last fall. Once the rock weir is
removed, the City will be dependent on the new intake until high water this spring. If the 2003 intake
becomes exposed, the City will mark it as a navigation hazard.
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Council Workshop Minutes of August 28, 2018
It was questioned if the City was relying on the 2003 intake. It was clarified that the City is using the
2017 intake and should have a good understanding of the maintenance needs of the new intake.
o SED Basin Update
Mayor Nelson has signed a notice to proceed. Great West is working with the contractor on getting
this project started. During Public Works Committee it was questioned if there would be a
groundbreaking ceremony. That ceremony will be scheduled for September 12"' at 5:30 p.m.
It was questioned if the groundbreaking ceremony could be moved to 6:00 p.m.
o Update on Fire District Contracts
Mayor Nelson asked Fire Chief Peters to give an update on where the City is on the Fire District No.
7 contract and also clarified why the Yellowstone Boys and Girls Ranch contract and Airport
Authority only for a one-year period.
Fire Chief Peters spoke regarding Fire District No. 7. Fire District No. 7 cannot meet the requested
contract amount. Fire District No. 7 does not have a Board, so the County Commissioners are the ones
making decisions for District No. 7. They cannot mill any more for fire protection and are to a point
where they cannot bring in enough revenue to pay for the contract. There is also Fire District No. 5
and LUFSA. This fall they will be sitting down and looking at the option to combine all the districts
to continue providing fire protection services. This will require not only working with the Boards of
each Fire District but also the County Commissioners. There have also been requests to the expansion
of the Fire Districts to cover north of town, Buffalo Trail towards Molt for both structure and
wildland; those discussions would also take place at the same time. The discussion to build a second
station to support the Fire Districts would also be discussed at that time. This station would be funded
by the Fire Districts.
It was questioned where Fire District No. 7 is located. It was clarified that Fire District No. 7 is
located along the boundaries of the City of Laurel.
It was questioned who's Fire District is north of town. Currently, that area is Molts' however they call
for mutual aid frequently. If Laurel is responding to a significant portion of their calls it makes sense
for Laurel to support the area.
It was questioned who has the area located near 80th and Grand. It was clarified that this area is also
Molt's. When a call comes in for this area Billings is also called in for mutual aid. It is a 12 -mile
response for Laurel, while Billings has a station located a mile and a half away. There are discussions
on which department should be responding to this area.
It was questioned if District No. 7 is maxed, out how would combining the Districts not cause the
same issue in the future. It was clarified that how each property is assessed will need to be reviewed.
Currently, each district receives a three to four percent rate increase each year.
Mayor Nelson asked if Chief Peters can clarify why the Yellowstone Boys and Girls Ranch and
Airport Authority are only one-year contracts while the others are three year contracts. Chief Peters
reviewed records back as far as he could and cannot identify why they were on one-year contracts.
Both of these have the potential for large growth over one year. This gives the City the opportunity to
Council Workshop Minutes of August 28, 2018
re-evaluate their usage on an annual basis. For the Airport there is the possibility of a military base
coming in, and this would greatly affect their need for coverage. Chief Peters recommendation, at
least for the Airport, is to leave them as one-year contract while their potential growth is identified.
Other Items
There were none.
Review of Draft Council Agenda for September 4, 2018
There were no edits.
Attendance at the September 4, 2018, Council Meeting
Council Member McGee and Stokes will not be present.
Announcements
On September 201h from 6:30 p.m. to 8:30 p.m. at the Camelot Ranch the dedication of the USS
Montana will take place. This is the first time a submarine has been named after the State of Montana.
Please be sure to RSVP.
The Airport Authority will be dedicating the new crosswind runway on September 150h 8:00 a.m, to
noon. They are also celebrating the retirement of Doc Smith after 30 years on the Airport Authority.
Mayor Nelson reminded Council of the Montana Leagues of Cities and Towns in Butte this
September. He reminded Council if they would like to attend to let Staff know as soon as possible.
Council will be seeing a resolution at the next meeting to move the last Workshop of the month up a
day to acconunodate those that will be gone for the conference.
The council workshop adjourned at 8:16 p.m.
Respectfully submitted,
Brittney Moorman
Administrative Assistant
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for the
listed workshop agenda items.
0
September 4, 2018
To: City Council
From: Mayor Thomas C. Nelson
Greetings from the City of Laurel:
This fiscal year, staff has been requested to reduce their budgets by 10% of their
discretionary spending total. The citizens of Laurel have been considered in each
budget process. Staff prepared a Management Budget and presented it to the Council
on June 19, 2018. The purpose of the Management Budget was to allow the
department heads to proceed with summer projects prior to the passage of the Final
Budget and to move forward on large projects, instead of delaying them until the
spring of next year.
The mill value came in at $8,027.927/mill this year, which is an increase of $232/mill
over last year. The mill value in 2017-2018 was $7,795/mill. With the increase of the
mill value, the City will see an increase in tax revenue of $56,081.32. This is an
increase of 1.045% in tax revenue. The following are the changes in apportionment
of the levies from 2017-2018 to 2018-2019:
Fund: 18-19 Levy 17-18 Levy
General Fund 126.75 125.16
Difference +1.59
Comprehensive Liability 12.03 1.00
Difference +11.03
Ow
Difference +3.75
8.64 4.89
Group Health 5.21 14.49
Difference -9.28
Fire Disability 4.42 9.00
Difference -4.58
Total: 157.06 154.54
Difference +2.52
The Comprehensive Liability Fund mill levy has increased by 11.03 mills. This year's
premiums have increased by 25%. This is due to liability and worker's compensation
claims against the City. Claims against the City are on a three-year rolling calendar.
The City of Laurel received a $57,678 retro adjustment due to excess reserves MMIA
had at the end of the 2018 Fiscal Year. This was a significant decrease to last year's
adjustment.
PERS rates have increased by .1% for the fifth year in a row. Per PERS, this amount
will be increased on the City's side .1%/year through 2024. Please note that this fund
only covers the General Fund employees. All other funds must budget for their
employees' PERS.
Group Health has decreased by 9.28, due to healthy reserves. This, along with the
Permissive Mill Fund, will provide insurance payments to the General Fund.
The Fire Disability Fund was reduced to 4.42 mills this year. The City has an obligation
to fund the Fire Pension for volunteers. These 4.42 mills amount to $35,483.44 and
will be given to the Firemen's Relief Association for pension payments. The total
pension that is expected to be distributed in the year 2018-2019 is $83,899. The cash
balance at the end of June 2015 was $92,358. The 4.42 mills are to supplement the
balance of the Pension Fund.
Airport Authority 3.25 2.00
Difference +1.25
The Airport Authority Board has its own taxing authority. This year, the fund will
receive 1.25 mills more than last fiscal year. Since the mills increased, they will receive
an additional $10,034.91.
Permissive Health insurance 21.20 24.55.
Difference -3.35
The permissive mill value was $195,878.58 in 2017-2018 and is valued at $170,192.05
this fiscal year. The Health Insurance has gone this year due to the switch to Pacific
Source from Blue Cross Blue Shield. Dental insurance stayed the same and vision
insurance increased by $0.01-$0.04 per month, depending on the plan. The number
of mills has been decreased because of the increase in the value of a mill.
Employee Wages and Benefits
Unemployment insurance has increased to 0.0035% on gross wages.
Workers' compensation rates were reduced this year by 9%, and the City's mod factor
has increased from 0.94 to 1.02, due to increased claims against the City.
The Police Union is currently in negotiations with the City.
The Public Works Union members received a $0.45/hr increase to wages and $600 in
flex money this fiscal year, per the current Union Contract.
Non -Union Employees were granted a 3% increase to hourly wages, which is an
average increase of $0.45/hr.
Fund 1000 - General Fund:
The General Fund expenditures are at $4,846,610, with revenues coming in at
$4,208,924. This represents a use of $637,686 in reserves. Expenditures came in
$145,344 higher than revenues in the last fiscal year. The reserves in General have
gone from 19% to 14% this fiscal year. Management has decided that expenditures
will be allowed to be higher than revenues to accommodate the higher increase of
department expenditures this fiscal year.
The General Fund is always a challenge. Expenditures will need to be looked at for
cost savings next fiscal year.
Notable changes to the General Fund this year include:
Revenues:
The amount of tax revenues has increased by $194,687 because of the increase
in the number of mills levied.
• Fire District revenues have been increased or decreased according to the new
contracts.
• City Court collections have been lowered to $46,985.02 as $113906.07 was
collected in Fiscal Year 2018. As of July 31, 2018, the outstanding balance of
Court collections totaled $416,294.85.
o General Fund has $514,000 budgeted in revenues from the Yellowstone River
Recreation Project Fund. These funds are associated with the ExxonMobil
Pipeline spill.
Expenditures:
® All departments were asked to reduce their discretionary spending by 10%.
* $514,000 has been budgeted for the projects approved by the Yellowstone
River Recreation Project Plan.
Fund 2190 — Comprehensive Insurance
Revenues;
Tax mills have been increased by 11.03 mills this year, to maintain reserves for
continued higher premiums, next fiscal year. Expenditures increased by
$12,618. The City's reserves need to be maintained to provide for future
increases. We need to keep in mind that the City has seen adjustments to
premium invoices due to overages of reserves being held by MMIA. This is not
expected to continue and without the adjustment the City can expect to pay
$216,576.03 vs. the $108,682.03 premium this year.
Expenditures:
Premiums for the liability/vehicle/property insurance are only for the General
Fund, and all other funds absorb the cost of insurance.
, Fund 2250 — Planning
Revenues:
The projected revenues from the County are $58,638 for this fiscal year.
LURA will continue to contribute $6,000 to the Planning Department for the
work the Planner does for the TIF District.
Expenditures:
• The Planner's wage is divided among 2 funds, which include the General
Fund (21%) and Planning Fund (79%).
• One-half of the Building Inspector's wage has been added to this fund, as
that position will now assist the planner with planning projects.
Fund 2260 — Emergency Disaster
Revenues:
• The City will not levy 2 mills this fiscal year.
• The remaining approximately $700,000 in FEMA funds for the Intake will be
received in this fund and transferred to the Water Fund as required.
Fund 2310 - Tax Increment Financing
Revenues:
* Revenues are calculated at $705,001 for this fiscal year.
Expenditures:
• The amount available for special projects for the district is $1,500,000.
• The Large Grant Programs will continue this year in the amount of $125,000.
This is available to accommodate large projects for businesses in the district.
Fund 2370 — PERS
Revenues:
e The mills for PERS increased by 3.75 to maintain reserves. The State has
increased PERS cost by .1% again this year.
Expenditures:
® Increase of 2% due to additional amount added to PERS, from 8.47% to 8.57%.
Fund 2371 — Health Insurance
Revenues:
® Mills have been decreased by 9.28 due to stable reserves.
2372— Permissive Medical Levy
Revenues:
• Lowered the number of mills due to decreased health insurance premiums
because of the switch to Pacific Source from Blue Cross Blue Shield.
Fund 2399 — City Parking Fund
Expenditures:
• Currently there is $14,200 available for use in parking lot improvements.
Fund 2400 & 2401 — Light Districts #2 & 3
Revenues:
• Street Light Assessments were reduced this fiscal year due to health cash
reserves.
Expenditures:
• Expenditures have increased slightly due to increase in utility costs. The lighting
on Foundation is still a budgeted project.
Fund 2500 — Street Maintenance
Revenues:
• The Street Maintenance Fund will no longer be receiving $5,000 for street
cleaning. The State is now responsible for street cleaning on Main Street. and
South 1-51 Avenue
• The Street Maintenance assessment to the citizens of Laurel will be
$619,843.79 for street maintenance and $17,639.25 for the sweeping district.
• The Street Maintenance Fund will continue to receive the R -O -W fees in the
amount of $339,498. This money will be used to start a new small capital
project in the next fiscal year.
Expenditures: -
• There is $200,000 budgeted for pothole repair and chip sealing.
• The Street Maintenance Fund will purchase a replacement dump bed truck.
• The Street Maintenance Fund will contribute $1,500,000 to the East 6th Street
project.
Fund 2600 — Elena Park Maintenance District
Revenues:
® Elena Park Maintenance District will not be assessed this fiscal year due to
excess cash reserves.
Expenditures:
$10,000 has been budgeted to plant boulevard trees within the maintenance
district
Fund 2701 — Memorial/Endowment (Pool)
Expenditures:
The entire amount of $119,990 is available for expenditure, should the Council
decide to pursue a water -related project.
Fund 2702 — Expendable Grant
• Total expenditures budgeted for parks is $118,028, which includes the
$100,000 from CHS for the bank stabilization.
® Amount available for reconstruction on the north shore of the river is $92,025.
Fund 2820 — Gas Tax
Revenues:
e The total revenue for the gas tax allotment this year is $124,381, which is down
$1,158.06 from last year.
Expenditures:
A project to improve streets has been budgeted this year in the amount of
$125,000.
Revenues:
The revenues available from this new gas tax fund are expected to be double
the $48,689 available in Fiscal Year 2018. The Fiscal Year 2018 funds were
requested to be reserved by the State for future use by the City. The 5%
matching amount of $7,302 from the Street Fund is budgeted.
Expenditures:
e $153,000 has been budgeted for contribution to the East 6th Street project.
Fund 2850 — 911 Emergency
Revenues:
Anticipated revenue is $74,400. The General Fund is contributing $27,000 to
this fund for contracts for the dispatch system
Expenditures:
e Budgeted expenditures are $71,100.
Fund 2917 — Crime Victims Assistance
This fund has $79,188 budgeted for a Crime Victims' Program. Attempts are
still being made to contact the State and have these funds transferred to the
State level.
Fund 2928 — Transit Bus Grant
Revenues:
* The City's $32,000 grant to manage the bus transit system has been renewed
for this fiscal year.
® $5,000 will be transferred from the General Fund to the Transit Fund for the
City's match.
Expenditures:
* A portion of the wages for the Utility Clerk will come out this fund.
* $30,000 has been budgeted for the bus drivers that are employed by Adult
Resource Alliance of Yellowstone County.
$50,000 has been budgeted for the purchase of a new transit bus if one
becomes available.
Fund 2952 — Federal Equitable Shari
Revenues:
® These revenues come from property confiscated by the Department of Justice
during drug seizures. The property is sold and the revenues are distributed to
those agencies that are part of the DEA program. The use of the revenues
received by the City is left to the discretion of the Police Department.
® The anticipated revenue for this FY is $21,150.
Expenditures:
® The expenditures budgeted this year are $39,164 and include new Toughbook
laptops, annual installment for the body cameras and a grant match for new
bulletproof vests.
Fund 3400 —SID Revolving
Expenditures:
The cash in this fund is held for purposes of possible defaults on SID property
payments. If for some reason there is not enough cash in the SID Funds when
debt service payments are due, the cash in this fund may be transferred to the
Debt Service Fund (3500 funds) to make the payment.
Fund 3401— SID 118 Reserve
Expenditures.
® The cash in this fund is held for purposes of possible defaults on SID No. 118
property payments. If for some reason a property owner defaults on their
payment, the cash in this fund may be transferred to the Debt Service Fund
3508 to make the payment. SID No. 118 Reserve Fund may only be used for
this purpose and monies may not be transferred to any other SID Fund.
Funds 3503 — 3508 — SID Debt Service Funds
These funds will handle the debt service for SID's. Money is collected through
the tax rolls as assessments to pay the SID bond payments.
Fund 4000 — Capital Improvement Fund /CIP
Revenues:
* The General Fund will be transferring $133,084 to the CIP Fund this year. Per
the Capital Improvement Plan (CIP) that was approved by the Council. The
Mayor has decided to not transfer $20,000 of this transferrable amount into
the 4001 CIP Fund for a sidewalk program. The 4001 CIP Fund has $62,240
available for sidewalk projects.
® $1,848 will be received from the General Fund for the future purchase of fire
equipment. The money that is transferred to the CIP Fund for the Fire
Department is 15% of the Fire Contracts collected in the General Fund, less debt
service on fire vehicles and equipment.
Expenditures:
o The following items have been approved for purchase this year.
1. Repairs to City Hall $ 40,000
2. City wide Voice Over Internet Phone $150,000
3. Police Dept— Dispatch Software $160,000
4. ExxonMobil money for Riverside Park $250,000
Total Capital $600,000
Fund 4001 — Capital Improvement, Streets, Sidewalks and Parks
Revenues:
The Sidewalk Assessments will be received in this revenue. The amount this
year is $4,990.
Expenditures:
• The -sidewalk -program will be expended out of this fund in the amount of
$62,240.
Enterprise Funds
The City has secured funding for the Sedimentation Basin project without raising the
water/sewer charges. This project will be completed this fiscal year. The State and
Federal mandates continue to burden the water and sewer users, as well as the City.
Enterprise Funds have the responsibility of providing mandated improvements in the
Enterprise Funds for our distribution and collection systems. Ongoing capital
concerns continue to receive the City's highest attention and the Capital Reserve
Funds are continuing to assist through surcharges that are restricted for future capital
mandated requirements.
Fund 5210 — Water Fund
Revenues:
• Water Fund revenues include $125,000 in grant funds from the DNRC for the
SED Basin project, $500,000 in TSEP grant funds for the SED Basin project, and
$4,921,000 in load proceeds from the sale of a bond to fund the SED Basin
project. The Water Fund is expected to receive the remaining $700,000 due
to it from FEMA for the close-out of the Intake project. These funds will be
posted to the Water Fund via journal voucher transfer from the Emergency
Disaster Fund.
Expenses:
• Expense of $10,257,732 for the cost of sedimentation basins at the water plant
have been added to this fiscal year budget.
• Miscellaneous water main repair has been budgeted at $275,000.
Fund 5310 — Sewer Fund
Revenues:
• $1,995,037 is the anticipated revenue for the Sewer Fund.
Expenses:
• The following capital projects have been budgeted for this fiscal year:
Dewatering Facility Installation $998,000, Digestor Rehabilitation $235,000,
and Screw Pump Rehabilitation $420,000.
• New Sewer System Camera & Trailer is budgeted in the amount of $100,000.
• $100,000 has been budgeted for manhole rehabilitation
® $156,250 has been budgeted for H2S Remediation.
Fund 5410 — Solid Waste
Revenues:
o Total anticipated revenue to be received is $858,818.
m Repayment of the loan for the FAP addition has been budgeted in the amount
of $25,457.
Expenses:
e One new Shed for the container site is budgeted in the amount of $10,000.
• A new garbage truck is budgeted in the amount of $285,000.
• Anew Tommy Lift truck is budgeted in the amount of $35,000.
7000 Funds —Trust and Aeencv Funds
These funds are considered pass through accounts. The City collects the revenues
and disperses the revenue to other entities (agencies).
Fund 8010 — Cemetery Perpetual Care
The revenue collected in this fund comes from purchased plots. The Perpetual Fund
will receive 15% of the cost of a plot (per State Statute) and these revenues will be
retained by the City to support maintenance of the Cemetery when there are no
longer plots available for sale. The money may also be used to expand the cemetery
with additional plots.
Although this budget message has covered a large portion of the budget, it does not
cover every fund or every change in these funds. The items mentioned include the
major changes and some different ways of accounting for some past budgeted line
items.
Should you have any further questions about this year's budget, feel free to contact
the Mayor Nelson or Clerk/Treasurer Bethany Langve.