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