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HomeMy WebLinkAboutBudget/Finance Committee Minutes 12.16.2008MINUTES BUDGET/FINANCE COMMITTEE DECEMBER 16, 2008 5:30 P.M. COUNCIL CONFERENCE ROOM MEMBERS PRESENT Chairman Kate Hart Doug Poehls Mayor Ken Olson Mark Mace Chuck Dickerson OTHERS PRESENT: Mary Embleton Chairman Kate Hart called the regular meeting of the Budget/Finance Committee to order at 5:34 p.m. There was no public in attendance. The minutes of the December 2, 2008 meeting were presented and approved via motion by Doug, seconded by Mark, and passed unanimously. Mayor Olson explained that he hasn't met with the clerk/treasurer and CAO on the June Corrections Journal Vouchers #760-761 or the 2008 Year-end Adjusting Journal Vouchers #YEA805-YEA812. He is asking that they be postponed again to the next Budget/Finance Committee meeting in January. A review session has been scheduled for tomorrow. November Journal Vouchers #823-828 have been reviewed and approved by the mayor. Utility Billing adjustments for November 2008 were also reviewed. Mary reported that the entries included the accounts that were sent to the county treasurer to be put on the tax bills last month. The November 2008 Financial Statements were reviewed by the committee. Mary stated that the General Fund is at 38% with 41% of the year expired. The General Fund is over $635,000 into reserves, which is typical for November. The city received over $1 million in tax revenues on Monday, so next month will look much better. The TIFD fund had already received over $50,000 in personal property taxes, and will have over $124,000 in tax revenues by December's report. Mary also reviewed the negative cash figures and explained that the revenues had not been received yet to offset the expenses. Overall, the city spent over $730,000 more than it took in last month, but that is mainly due to the projects that are on-going. Discussion followed, including questions regarding the gas tax revenues. Motion by Doug, seconded by Mark, to recommend approval of the November Financial Statements to the council. Motion passed unanimously. There were no purchase requisitions presented. The committee reviewed the Comp/OT reports for PPE 11/30/08 which included the Thanksgiving holiday. The Payroll Register for PPE 11/30/08 totaling $161,413.95 was reviewed by the committee. Mary pointed out that this amount is higher than normal due to the comp time pay-out. Motion by Doug, seconded by Chuck, to recommend council approval of the payroll register. Motion passed unanimously. Budget/Finance Committee December 16, 2008 Page 3 Clerk/Treasurer's Comments: Auditor's Schedule of Findings - Mary went over the list of eleven findings from the draft audit report for fiscal year ending June 30, 2008. Discussion followed. The first finding repeats the issue of the lack of recorded donated assets from the Elena and Iron Horse subdivisions and from the development of the new Wal-Mart store. The committee recommends adding language to the city's Subdivision Improvement Agreements (SIA) in the future to require developers to supply the city with the values of these donated assets (water lines, sewer lines, street, curb, gutter, sidewalk, etc.) Two of the findings are the result of the Statement of Auditing Standards #112 (SAS 112) dealing with internal controls and financial reporting. None of Olness and Associates' clients are in compliance with this new standard (2006), so it will continually be disclosed. All of the findings will be addressed in the city's response to the audit within 30 days of the issuance of the final audit report. The committee also reviewed last year's list which contained sixteen findings, some of which were implemented or partially implemented. Administrative Cost Allocation - Mary stated that she will meet with Mayor Olson and CAO Bill Sheridan on Tuesday, December 23rd to review the draft proposal. Mayor's Comments: TIFD update - Mayor Olson stated that he has had contact with three individuals who have expressed interest in being on the Laurel Urban Renewal Agency. The ad is running again, and the city has extended the deadline to apply. Purchase and Procurement Policy - This issue is completed and will be removed from the agenda. Chief Administrative Officer Comments: Bill Sheridan did not attend the meeting due to illness, so Mayor Olson reported on the following: Impact Fees Feasibility, Study update - The clerk/treasurer sent additional information to Carson Bise, but no response has been received. Storm Water Project &_S. 18` Ave. overlay_ update - There are some complaints from businesses regarding the project, and the mayor would have liked to have SE 4" Street done better. City staff will be meeting with property owners regarding an SID for street improvements on SE 4 h in the near future. There is one more change order for this project for removal of asphalt: the contract stated that asphalt to be removed would be between 6-8 inches thick, but instead, the asphalt on S. 1'` Ave. was 16-18 inches thick. The issue will be on the December 30th workshop agenda. West Main Sidewalk SID & overlay -- There is nothing new to report. Wastewater Plant Upgrade preliminary engineering eport - Mayor Olson reported that he and Bill met with representatives of the Montana Department of Environmental Quality in Helena last Friday to discuss the discharge permit. They had a good discussion, and the DEQ will move Laurel to the top of their list to give guidelines for nitrates and ammonia levels that are acceptable. The actual permit for TMDL for the Yellowstone River will not be Budget/Finance Committee December 16, 2008 Page 3 issued for 4-5 years. Mayor Olson explained that using the activated sludge process, rather than the RBC's, will put the city in a better position to address the outcome of the final discharge permit's levels. Other - Chuck asked if the potential conflict in our ordinances regarding whether the city council establishes all employees' pay vs. the Library Board establishing the library employees' pay had been addressed. This will be brought to the attention of appropriate staff. The next regular Budget/Finance meeting will be Tuesday, January 6' at 5:30 p.m The meeting adjourned at 6:25 p.m. Respectfully Submitted, Mary ICY Embleton City Clerk/Treasurer