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HomeMy Public PortalAbout2023-09-18 minutes1 MINUTES OF THE BUDGET COMMITTEE MEETING SEPTEMBER 18, 2023 CALL TO ORDER The Budget Committee Meeting of September 18, 2023 was convened at 5:00 P.M. by Councilmember Jon Hensley, Budget Committee Chair. ROLL CALL The f ollowing Council Members were present when the meeting convened: Present: Deeken, Hensley, Lester, Mealy, Schwartz, Spencer, Spicer, Wiseman, and Wright Absent: Ahlers COMMITTEE DISCUSSION OF BUDGET Chair Hensley opened the floor for discussion of the budget. Councilmember Schwartz asked Shiela Pearre, Director of Finance and I.T. to go over the provided handout, explaining the calculation of administrative chargeback fees (see attached). Councilmember Mealy asked Ms. Pearre if it makes sense to use the same calculation to charge the enterprise funds and Parks when each uses administrative s ervices differently. He also asked if the fluctuations of the total operating expense could have an effect on the chargeback fees. Ms. Pearre said all the departments/enterprise funds operate differently, but a consistent calculation is used. If there is a reason a department requires administrative services above and beyond the norm, the administrative chargeback fee is increased. Councilmember Schwartz said he has not seen any documentation or heard testimony as to how the “5% of parks sales tax revenue”, administrative chargeback fee was derived. If going forward, the same chargeback fee calculation is used for parks and the enterprise funds, the City Council is “governing by math rather than by impulse”. Councilmember Hensley asked Ms. Pearre if the same calculation has been used in her time with the City. Ms. Pearre indicated in her 15 years of employment with the City, the same method of calculation has been used. Sometimes the chargeback fee may vary based on projects within the enterprise fund departments. Councilmember Lester said history shows that the 5% chargeback fee originated when Parks no longer received revenue from property taxes, and its own sales tax was established. Prior to the change in funding, Parks received a significant general fun d supplement and consequently paid nothing in administrative charge back fees. Parks operates differently from other enterprise funds and although for Parks we should use the same method for administrative charge backs that the method should be adjusted to take those operational differences into account. 2 MINUTES OF THE BUDGET COMMITTEE MEETING SEPTEMBER 18, 2023 Councilmember Wright asked Ms. Pearre how to move forward if Parks administrative chargeback fees are adjusted going forward. Ms. Pearre said the methodology has always been the same, it’s up to City Council how they wish to move forward. Councilmember Spencer said before Parks had its own sales tax funding source, the department was a part of the General Fund; therefore, not charged an administrative chargeback fee at that time. Councilmember Schwartz said he had been in contact with the Interim City Administrator, Law Department, and Finance Department to craft a written policy related to the administrative chargeback fees. MOTION: Councilmember Schwartz motioned and Councilmember Spencer seconded the motion to adopt the administrative chargebacks methodology outlined in Ms. Pearre’s spreadsheet, which results in a $302,890.61 increase in General Fund revenues, and a decrease in Parks fund balance by the same amount. That increase will fund (2) Public Works snow plows and (10) Motorola radios totaling $260,000. The motion passed by the following roll-call vote: Aye: Deeken, Hensley, Schwartz, Spencer, Spicer, Wiseman, and Wright Nay: Lester and Mealy Absent: Ahlers City Attorney Ryan Moehlman will work with the new City Administrator, who’s first day is September 25th, to put together an ordinance with an administrative chargeback fee policy recommendation for the City Council to approve. Councilmember Schwartz said any items he’d placed on the parking lot related to the Capitol Improvement Tax could be removed. MOTION: Councilmember Spencer motioned and Councilmember Schwartz seconded the motion to allocate $500,000 from long term funding to Economic Development ($300,000 to “outside the fence” airport projects and $200,000 for Northwood sewer infrastructure). After some discussion, Councilmember Spencer withdrew the motion. Parking Lot Request: Councilmember Mealy requested to remove the Public Relations position from the Mayor’s budget and use the funds toward the Planning and Protective Services reorganization and Grants staffing under the City Administrator. Parking Lot Request: Councilmember Mealy requested to remove from the budget, a parking lot item approved at the September 11th meeting: 9/11/23 MOTION: Councilmember Schwartz motioned to fund (4) Police vehicles and $20,0000 for the GPS Crash Reconstruction software with the Parking Enterprise Fund. Councilmember Spencer seconded the motion. The motion passed with the following roll-call vote: Aye: Deeken, Hensley, Lester, Mealy, Schwartz, Spencer, Wiseman, and Wright Nay: None 3 MINUTES OF THE BUDGET COMMITTEE MEETING SEPTEMBER 18, 2023 Absent: Ahlers and Spicer Councilmember Schwartz asked if the removal of an already approved item is procedurally acceptable. Mr. Moehlman said the parking lot is a working document, not an ordinance; therefore, it is acceptable. Councilmember Deeken said he is opposed to relying on grants for funding. Councilmember Schwartz is opposed to removing the Mayor’s request for a public relations position. PUBLIC COMMENTS There were no public comments at this time. Chairman Hensley announced the next Budget Committee meeting scheduled for September 21st from 5:30 P.M. – 7:00 P.M. ADJOURNMENT The meeting adjourned at 5:48 P.M.