HomeMy Public PortalAboutMIN-CC-2017-04-04MOAB CITY COUNCIL MINUTES
SPECIAL MEETING
APRIL 4, 2017
Special Workshop Meeting & Attendance: The Moab City Council held a Special Meeting on the above
date in the Council Chambers at the Moab City Center, located at 217 East Center Street, Moab, Utah. A
recording of the meeting is archived at http://www.utah.gov/pmn/index.html.
Meeting Called to Order: The meeting was called to order at 5:38 PM. In attendance were Mayor David
Sakrison, Councilmembers Heila Ershadi, Tawny Knuteson-Boyd, Kyle Bailey and Kalen Jones. Also in
attendance were City Manager David Everitt, City Recorder/Assistant City Manager Rachel Stenta, Public
Works Director Pat Dean, Safety Officer Don Hunt, and Parks, Recreation, and Trails Director Tif Miller.
One member of the public attended.
The Workshop began with City Manager Everitt presenting an overview of the Fiscal Year (FY) 2018
budget process, and outlined the general categories of expenditure priorities. Councilmember Bailey
asked about renewal of the contract for sanitation services and City Recorder/Assistant City Manager
Stenta replied it would up for renewal in November. Everitt added there would be a Request for
Proposals (RFP) advertising for sanitation services. Stenta clarified the existing contract was extended
with Council approvals three times since 2000.
Everitt continued by describing discrete funds used for clarifying certain revenue and expenditure
streams. He then explained the methodology for projecting revenues. Based on recent trends, he stated
he worked with Stenta to estimate a 7.9% increase in revenues over 2017, for a projected amount of
$8,732,179. Councilmember Ershadi made note of the lack of increase in the franchise tax and Everitt
concurred that it was budgeted at the same level as the current year due to the unpredictability and lack
of great fluctuation of that revenue stream. He also described a conservative approach to predicting the
energy tax revenues. He added the Resort Community tax is estimated at a nine percent increase, and
there is expected to be added revenues from fees such as plan reviews and building permits. He
explained some monies would be pulled from the fund balance, while ensuring the fund balance will
continue to reflect 15% of the total budgeted revenue. Also, some rollover from FY2017 would carry
over to 2018.
In the general fund, Everitt stated that expenditures give emphasis to salary increases established with
mid -year changes; departmental requests for increases in supplies, equipment, and staffing (particularly
in the Enterprise fund and Public Works); and that recreation increases are big and that recreation
related services have been consolidated and moved to the 23 (Special Revenue) fund which should
create a more accurate picture of the total recreation services provided by Moab City for the entire
County. Mayor Sakrison asked if the City had enough people to get the job done staffing needs and
Everitt stated that no the City doesn't and that this budget includes some staffing increases but can't
accommodate all of the staffing increases needed at one time. Everitt then explained that the proposed
staffing increases — especially those in the Enterprise (Water and Sewer) fund would take place over the
next three to four years and would likely require some fee increases or other revenue sources. Everitt
then gave a brief overview of the capital projects fund (41) emphasizing infrastructure projects.
Everitt briefly outlined concerns associated with relying on sales tax, which may fluctuate, rather than
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property tax, service fees, or use fees. He also touched on a concern about overlap, informalities, and
inconsistencies regarding services provided by the City and the County. He gave an example of the
County -provided dispatch service fee, which may see an increase.
Councilmember Bailey asked for graphs showing percentage of expenditures by type, for the City in
general and departments in particular.
Mayor Sakrison raised a concern about the level to which the City has reached capacity with regard to its
ability to bond for projects. He mentioned the potential for a future need for a property tax, or a use fee
for roads, as an example. He mentioned a variety of possible fees, including a road use fee, and a
potential Recreation, Arts, and Parks (RAP) tax. He mentioned that subsidizing recreation services for a
million dollars a year is not sustainable.
Councilmember Jones asked for more detail regarding discretionary spending. Discussion ensued about
the preference for narrative descriptions of budgetary needs.
Councilmember Knuteson-Boyd asked about the prospect of a property tax and if it would be in addition
to a County Property Tax. City Manager Everitt stated that it would be additional as County property
taxes pay for County provided services. Councilmember Bailey inquired if the City could adopt a
property tax by using a mill levy or a Resolution or would have to go to a vote. City Recorder/Assistant
City Manager Stenta explained the City has the ability to levy a property tax, but would need both a legal
opinion and the State Tax Commission's opinion with regard to the process to implement the tax and
that Truth in Taxation hearings would need to be held. There was discussion about a general obligation
bond combined with Community Impact Fund Board (CIB) grants for major projects, such as for streets.
Councilmember Jones pointed out Moab is one of two municipalities in Utah without a property tax.
Councilmember Ershadi asked about the unfunded personnel liabilities that are mentioned in the Audit.
The unfunded liabilities regard unused vacation and sick leave as well as the City's share of the Utah
Retirement Systems liability. Stenta stated that it could be a multi -year process to address the liabilities
and Ershadi agreed that approach would be appropriate.
The discussion turned to water. Everitt explained that water operations are generally subsidized by the
surplus in sewer operations. The culinary water fund for operations exceeds revenues by about
$700,000. He discussed possible funding sources, including raising rates or subsidizing it from the
general fund. Councilmember Bailey stated there was discussion some time ago to raise rates
incrementally. City Recorder/ Assistant City Manager Stenta commented that in prior budgets,
infrastructure improvements were not funded by the existing rate structure. Discussion ensued
regarding raising base rates, commercial rates, actual use, and water conservation. Stenta remarked
that water expenditures have fallen below revenues for an average of over $400,000 per year over five
years. Councilmember Ershadi brought up the desire to be presented with scenarios for rate increases
and being mindful of local residents on fixed incomes and their ability to pay increased rates.
The next topic involved the need to increase sewer rates in order to pay for the new Water Reclamation
Facility. Everitt explained rates will go into effect in July. He commented that commercial rates are not
yet equitable. Mayor Sakrison asked about septage impacts on sewer revenues. Everitt stated Bowen
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Collins is working on the commercial rate study.
Sewer Rate Schedule Changes - Approved
Councilmember Jones moved for Approval of Proposed Resolution #24-2017 - A Resolution Adopting
changes in the City of Moab Sewer Rate Schedule. Councilmember Knuteson-Boyd seconded the
motion. The motion passed 4-0 with Councilmembers Bailey, Jones, Knuteson-Boyd, and Ershadi voting
aye.
Mayor Sakrison introduced Doug MacDonald, who is a financial consultant for the Utah League of Cities
and Towns. MacDonald stated he is able to provide a ten-year financial strategic plan for the City.
Adjournment: The meeting was adjourned at 6:38 PM.
APPROVED: ATTEST:
David L. Sakrison, Mayor Rachel E. Stenta, City Recorder
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