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.
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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
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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.