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HomeMy Public PortalAboutCouncil Minutes 1998 08/20CITY OF MC CALL MINUTES Special Meeting McCall City Council Thursday - August 20, 1998 Table Of Contents Call To Order And Roll Call 2 Business 2 Tentative Budget 1998-1999 2 Adjournment 5 Council Minutes - Aug 20, 1998.doc: Page 1 of 5 MINUTES Call To Order And Roll Call I The meeting was called to order by Mayor Eimers at 9:05 a.m.. Ms. Arp, Mr. Colton, Mr. Eimers, Mr. Muller and Mr. Venable answered the roll call. A quorum was present. Members of the staff present were City Manager Brian Olson, Treasurer Ashley Royal, and Deputy City Clerk Cherry Woodbury. Budget I Mr. Olson opened stating the goal of the meeting was to pass a tentative budget and comply with the issues brought forward by the auditors. Mr. Eimers brought up the subject of transferring funds from one fund to the other. Various aspects of the water fund was discussed such as being able to associate the RH2 water rate calculations with the figures in the budget. Ms. Arp questioned the reduction in capital improvement that might result in customer dissatisfaction. Mr. Olson noted the large amount in the prior budget for repairs on a brand new plant. July revenue from water bills will be the first good data to see how the new rate system is covering expense requirements. Mr. Royal presented an overview of the budget tying it back to the auditors August 11tn letter. Each requirement of the auditors was read and Mr. Royal explained where and how the cash reserve percentage would be met. Mr. Royal stated that the enterprise funds were in trouble. Discussion followed on two of the funds being out of compliance and the sewer fund deficit. Mr. Royal noted readjusted proposed budget figures for water and sewer based on a conservative number of hook-ups. Mr. Olson stated that the health insurance was being investigated by Carla Donica. Muller asked how the coverage would compare to the current coverage. He was concerned that any changes be with a reputable company in long standing. Mr. Olson presented an example of the City's property coverage and the opportunity to save money by going out for bid. He stated the finding on this matter will be presented at an upcoming meeting. Mr. Colton inquired about the figures changing. Mr. Royal commented on property taxes being allocated to the airport, library, and recreation funds and being reallocated back to the General Fund. The figures for the airport did not included the prior levy passed. Ms. Arp inquired about the Police Department grants and expenditures. She also raised the issue of consistency among departments in holiday and merit increases. It was stated the average was 3%. Mr. Colton inquired if salary increases were included in the budget. Mr. Olson noted the figures included COLA and merit. Colton inquired about what the number will be that is to be adopted as the tentative budget. Mr. Olson stated that the total General Fund would be about $2.4 million. Mr. Colton noted that whatever the budget number is determines the mil rate. Ms. Arp inquired about the % person included in the City Manager budget. Discussion followed on overtime in the various departments, the $10,000 expenditure for the newsletter, etc. It was agreed upon to reduce the newsletter expenditure to $7,500. Mr. Olson summarized the FTE staffing levels as presented. Mr. Olson pointed out that the overall people count was reduced by 5.75 people. Mr. Colton and Mr. Muller inquired about a more friendly software system. Opportunities for change were discussed. Mr. Muller reiterated the challenge to employees to look for cost reductions and savings. Ms. Arp had questions on how realistic the budgeted figures for attorney and engineer fees were. Mr. Eimers again strongly expressed his concern and opposition to an increase in the tax rate. Mr. Eimers moved not to take the allowed 3% increase in property tax. Mr. Venable seconded. Discussion followed on the funds in the reserves and the auditors' recommendation to increase the amount by increasing the property tax levy to the maximum allowed. Mr. Muller stated he felt comfortable with a 3% increase based on the auditors' input. Mr. Colton stated he appreciated the philosophical input on the impact of tax increases to citizens, but somewhere down the line it will cause a reduction in services to customers. He stated he could see both sides of the issue. The vote was called for. At a roll call vote Mr. Eimers and Mr. Venable voted "aye". Ms. Arp, Mr. Colton and Mr. Muller voted "nay". The motion died. Water turn on ! off fees, water treatment plant staffing, the purchase of the building inspector's truck, and such were discussed. Mr. Colton recommended focusing on the bottom line of the budget and being able to address the questions from the public at the public hearing. He stated the budget was a plan and if the revenue and expenditure figures were relatively accurate these should be accepted as the tentative budget. Council Minutes - Aug 20, 1998.doc Page 3 of 5 Mr. Colton moved to accept the General Fund figures as presented as the preliminary budget. Mr. Muller seconded. Ms. Arp stated she felt comfortable with the overall figures but wanted to know more about what was in all the department figures. At a roll call vote Mr. Colton, Mr. Muller, Mr. Venable, Ms. Arp voted "aye". Mr. Eimers voted "nay". The motion carried. Mr. Eimers moved to recess for 10 minutes. Mr. Colton seconded and the motion carried. The meeting reconvened at 11:40 a.m. Mr. Royal verified the total fund figures and grand total calculations. Mr. Olson recommended adopting the tentative budget as presented with a grand total — all funds amounting to $13,320,632.00. Ms. Arp moved to reconsider the previous motion. Mr. Colton seconded and the motion carried. Mr. Colton moved to set the tentative budget for the City of McCall for all funds in the amount of $13,320,632. Mr. Muller seconded. At a roll call vote Mr. Colton, Mr. Muller, and Ms. Arp voted "aye". Mr. Eimers and Mr. Venable voted "nay". The motion carried. Ms. Arp moved to set the tentative budget public hearing for September 3`d at 7:00 p.m. at City Hall. Mr. Eimers seconded and the motion carried. Mr. Colton recommended that Council members sit down with Mr. Royal to review any questions they may have. Ms. Arp preferred getting back together as a group. Mr. Muller preferred both individual meeting and group meeting. Council agreed to set 6:00 p.m. on August 27th for the budget review before the regular meeting. Ms. Arp inquired about the Sewer Fund expenditures to the Sewer District. Mr. Olson responded that figures had been received from the district and was told they were the same as last year. Mr. Eimers moved to recess for lunch until 1:00 p.m. Mr. Venable seconded and the motion carried. The meeting recessed at 12.15 p.m. At 1:15 p.m. the meeting reconvened. Mr. Colton had to leave at 1:00 p.m. Mr. Muller left at 1:30 p.m. A quorum was still present. Gene Heikkola reviewed the airport budget proposal. Mr. Royal explained how shifting some property tax to the Airport Fund and reducing the management transfer amount to the General Fund would reduce the deficit bottom line of the Airport Fund. There was discussion regarding the classification of this fund — an Enterprise Fund vs Revenue Fund. Mr. Heikkola spoke on the requested pay raise for his position as Airport Manager. He stated that originally it was based on 20 hours a week but in reality he was spending 35 hours. Contract vs employee status was discussed. Discussion followed on funding any salary increase through hanger lease, user, and tie down fees. Mr. Royal suggested looking at the overall need for the position and did not feel a Council Minutes - Aug 20, 1998.doc. Page 4 of 5 decision had to be made immediately. The deficit in the fund total was discussed. Mr. Eimers suggested that property taxes and manager salary should be taken under advisement. Mr. Royal reviewed the Streets Fund noting that the only big items was the $60,000 for the overlay on Warren Wagon Road. Mr. Royal stated that the Library Fund and Recreation Fund were basically unchanged. The Water Fund was reviewed and it was noted that the bottom line showed a positive figure. It was agreed that Mr. Olson should investigate getting the bike path signs completed from the $4,500 budget figure. Mr. Olson was to also find out about recreation fees for non-resident vs resident. The Sewer and Golf Funds line items were reviewed by Mr. Olson. He commented that with the proposed new budget, these would be cash neutral. Council requested that Mr. Royal note on the budget for the Airport and Golf Fund a line item to pay back the General Fund. Adjournment Without further business, Mr. Eimers moved to adjourn. Ms. Arp seconded and the motion carried unanimously. The council adjourned at 2:10 p.m. ATTEST: 1 i Cherry 1 odbury, Deputy City Cork Kirk Eimers, Mayor Council Minutes - Aug 20, 1998.doc Page 5of5