HomeMy WebLinkAboutMinutes - 4/6/2009 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Monday, April 6, 2009
Aldermen's Conference Room, 6:30 p.m.
`— In Attendance:Committee Members: Chairman Alderman Murgatroyd, Alderman Peterson and
Alderman Scha.efer. Absent: None.
Also in Attendance: Mayor Low, City Administrator Maxeiner, Deputy City Administrator Martin,
Assistant City Administrator Hobson, Director of Finance Black, City Attomey McArdle and City Clerk
Jones.
Chairman Alderman Murgatroyd called the meeting to order at 6:30 p.m.
Mayor Low arrived at 6:35 p.m.
City Attorney McArdle amived at 7:05 p.m.
2009/2010 Fiscal Year Budget—Continued Discussion
Finance Director Black provided the Committee with a follow-up to questions posed by members of the
Committee during the Finance and Personnel Committee meeting held on March 23, 2009, regarding the
Public Works Water Division and Sewer Division.
Mayor Low arrived at 6:35 p.m.
Finance Director Black summarized as follows:
Water Division:
• Overtime: Most overtime expenses are incurred due to emergency call outs for water main
`.,. breaks and water pressure and quality issues. Overtime is incuned on weekends to take routine
readings of water treatment chemicals, monitor well levels and check building conditions.
• Seasonal Workers: Seasonal workers typically do facility and grounds maintenance and hydrant
painting. One experienced employee was trained to do J.U.L.I.E. locates, freeing up permanent
ernployees for more important duties. This summer a worker will be dedicated to GPS locating
of water buffalo boxes. This data will be added to the City's GPS mapping system, which will
save time locating the boxes in the future.
• SCADA Maintenance: The division's budget includes $11,500 in contractual services for this
work. The majority of planned expenses are for programming and hardware for a water level
transponder at Well No. 6. Funds are budgeted for recurring maintenance including
programming, hardware repairs and troubleshooting of infrequent transmission problems.
• Telephone Charges: The majority of the increase in this line item was the result of wireless
service for a GPS receiver that will be used to locate water shutoff boxes. The Water Division
significantly reduced its number of phone lines with the installation of SCADA in 2001. The
division pays for two lines that are utilized as backup to the SCADA system.
• Water Meter Change-Out Program: The Water Division has converted approximately 94% of
7,400 water customers to radio frequency read meters. Sta.ff anticipates completing the 7-year
change-out program during this year by replacing 466 manual read meters.
Sewer Division:
• Overtime: The majority of overtime is incurred because certain testing must be done seven days
a week, resulting in approximately five(5)hours of scheduled overtime per week.
• Seasonal Worker: The seasonal worker typically conducts grounds and facility maintenance.
This summer the seasonal worker's time will be allocated to mapping the City's storm sewer
.,,,.�,. system for eventual inclusion in GIS.
• Telephone Charges: When SCADA has been successfully installed at all Sewer Division
facilities, all but two (2)telephone lines used for alarms will be eliminated resulting in an annual
savings of approximately$10,000.
Finance and Personnel Committee Meeting
� April 6, 2009
Page 2
Finance Director Black informed the Committee that Staff began developing revenue estimates for the
2009/2010 operating budget approximately six months ago. The process has been particularly
challenging with the current economic downturn resulting in declining sales ta.x and growth-related
revenues. Finance Director Black provided the Committee with a summary of the following:
General Fund Revenues
Fiscal Year 2009/2010 General Fund revenues are projected to be $16,298,407, a decrease of$761,300
(4.5%) from the prior year. He noted the projected revenues utilize trends and economic conditions and
include only those revenues that can reasonably be expected to be realized during the fiscal year to meet
operating needs.
Pronerty Tax
Property tax receipts are approaumately 29.6% of total General Fund revenues. Revenues increase 6.9%
from the prior year's budget to$4,824,047.
Interpovernmental Revenues
Intergovernmental revenues consist of several state shared municipal revenue sources:
• Sa1es tas;
• Pull tabs;
� • Inter-track wagering;
� Telecommunications taxes; and
• Grants.
For 2009/2010 these revenues total $9,203,202,a decrease of$841,200 (8.4%) from the prior year.
Finance Director Black provided the Committee with a brealcdown of each of the intergovernmenta.l
revenue sources.
Other Local Sources
Other local source revenue consists of franchise fees, license and permits, fines, charges for service and
interest income. The 2009/2010 revenue estimate deceases $244,100 (112%) from the previous year to
$1,940,879.
With the continuing decline in new construction, building permit fees are budgeted at$62,200, a decrease
of 47.1%from the prior year. Another significant reduction occurs in interest income, which decreases to
$60,000 due to the steep decline in interest rates. Finally, traffic fines are estimated at $290,300, a
reduction of $39,800 (12.0%) from the prior year's budget and the same as the 2008/2009 projected
amount. With planned officer vacancies and the adjudication process resulting in lower fines, an increase
in this revenue source is unlikely.
Miscellaneous Revenues
Miscellaneous revenues consist of donations, reimbursement from other governmental units for police
and dispatching services together with other minor revenue sources. The 2009/2010 budget for
miscellaneous revenue is $330,369, an increase of$13,800 (4.4%) from the prior year's budget. This is
� due, in part, from the dispatch service fees, which are expected to increase $36,900 to $136,980.
Similarly, fees collected from School Districts 15 and 156 for the school resource officer program and
traffic details are budgeted at$166,900,a$19,900 increase from the prior year.
Finance and Personnel Committee Meeting
� Apri16, 2009
Page 3
Chairman Alderman Murgatroyd reiterated that the budget is a working document. He opined that Sta.fF
has provided the Committee with a reasonable estimate of projected revenues and expenses.
Responding to an inquiry from Alderman Schaefer regarding whether interest income can be competed,
Finance Director Black informed the Committee that interest figures are established by the banks,
however; CD's are competitively shopped.
City Attorney McArdle arrived at 7:05 p.m.
Finance Director Black informed the Committee that he received a letter from PACE restructuring the
amount of their contribution. According to this figures in the letter the City will save approximately
$65,000 this year. Finance Director Black noted he has been attempting to contact someone at PACE to
ascertain if this is a"one time"occurrence or will continue indefinitely.
Alderxnan Peterson opined that expenses need to be revenue driven and suggested that revenue sources be
closely observed. City Administrator Maxeiner informed the Committee that Staff intends to closely
monitor the trends throughout the year.
Motion by Peterson, seconded by Schaefer, to approve the 2009/2010 Fiscal Year Budget as presented
and recommend that the budget be submitted to full Council for approval.
L
Voting Aye: Schaefer, Murgatroyd, Peterson.
Voting Nay: None.
Absent: None.
Motion carried.
Chairman Alderman Murgatroyd complimented the City Administrator, Staff and the Committee
members for their efforts in compiling the budget for the 2009/2010 Fiscal Year.
Adiournment
Motion by Schaefer, seconded by Peterson, to adjourn the meeting at 7:14 p.m.
Aye: Murgatroyd, Peterson, Schaefer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
./✓� �- � W.
Steven C. Murgatroyd, Cha
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