Minutes of The Special Price City Council Meeting

City Hall: Price, Utah

February 14, 2006, 3:00 p.m.



Mayor Joe L. Piccolo                                          Joanne Lessar, City Recorder

Councilmembers:                                               Pat Larsen, Finance Director

     Richard Tatton                                              Gary Sonntag, Public Works Director/City Engineer

     Jeanne McEvoy                                            John Daniels, Human Resource Director

     Kathy Hanna-Smith                                       Bret Cammans, Customer Service Director

     Jeff Nielson                                                   Aleck Shilaos, Chief of Police

     Rick Davis                                                    Lisa Richens, Deputy Finance Director/Internal         Auditor/Accountant




Lisa Richens presented an overview of the new financial reporting model (GASB 34).  This is a whole new way of reporting financial statements.  The purpose of GASB 34 is fiscal and operational accountability.  It is the responsibility of local governments to justify their actions in current budget years as far as the raising and spending of public monies in the short term and whether they can continue to meet their objectives in the future.  She presented exhibits on the new financial reporting model pertaining to government wide financial statements.  She explained and defined`the different types of funds;  Governmental, Proprietary, Fiduciary, and Internal Service.  The differences and the key improvements resulting from the new governmental financial reporting model were explained.  Lisa reviewed the Audit Report for the Fiscal year 2004-2005 and what is included in the report, which reflects how the City is doing financially.



Lisa explained the following:

Depreciation, how it is calculated and how funds should be set aside during the life of an asset to finance its replacement.

Transfers, which is the movement of money from one fund to another, why they occur and the good and bad aspects.

The different Fund Balances; Reserved Fund Balance, Designated Unreserved Fund Balance, and Unreserved/Undesignated Fund Balance and what they are.


Lisa presented charts comparing the Years 2002, 2003, 2004, and 2005 for both Governmental Type Activities and  Business Type Activities.


Pat Larsen presented charts comparing revenues and expenses from 2001 through 2005.  The chars were broken down into several different categories; Supplies, Vehicle Repair and Maintenance, Telephone, Utility Costs, Travel, Vehicle Fuel, Benefits, Wages, and Capital Expenditures.  She also discussed the City=s investment in the Public Treasurers Investment Fund (PTIF).


Lisa discussed several options that can be considered to generate more income for the City.  Is the City charging enough for their services;  are we providing the necessary services to meet the needs of our citizens or are we providing too many services;  is there a more efficient way to provide services; are there any federal, state, or local grants available;  are there alternative revenue resources that can be utilized;  are tax rates reasonable, etc.  Some positive trends are taking place, such as sales tax is increasing, capital leases are being paid off, employee costs are decreasing, received more grants, demolition of the PCC, etc.


Lisa explained GASB 40, GASB 45 and 43.  GASB 40, which was effective 7-1-05,  pertains to deposit and investment risk disclosures.  GASB 45 pertains to accounting and financial reporting by employers for post employment benefits other than pensions, and GASB 43 pertains to

February 14, 2006


financial reporting for post employment benefit plans other than pensions.  Both GASB 40 and 43 begin after 12-15-2007.


Post employment benefits or OPEB as they are called, pertain to health insurance, dental, vision and prescription benefits and life insurance.  They are a part of the compensation employees earn each year.  The cost of future OPEB benefits is a part of the cost of providing public services.  Most governments report their cash outlays for OPEB in a given year (pay-as-you-go).  Most do not disclose information regarding the nature and size of their long term financial OPEB obligations.  Twenty two Price City retirees (including dependents) received OPEB benefits during the fiscal year 2004-2005 at a cost of $89,045.  Fifty four employees are eligible to receive future OPEB benefits. 


John Daniels reviewed safety issues.  The incident rate was reduced from 8.84% in 2004 to 5.14%  in 2005.  In 2004, there were two lost time accidents and in 2005 there were three.  A knee issue occurred in both of those years.  In 2005, there were 24days lost due to workplace injury.  This was attributed to slips, trips and falls.


In the past year,  the Workers Compensation Fund costs have dropped.  A Health and Wellness Committee was established and far more employees are receiving rebates due to weight loss, lower blood pressure, exercise, etc.


John indicated that the turnover rate in 2004 was 11.2% and 13% in 2005.  There were more resignations in 2005.  Overtime hours have decreased, driven in part by improvements in the policy and increased efforts to control overtime.  The number of employees in 2004 was 140 and in 2005 133.3.  Benefits were provided to 110 employees in 2004 and 99 in 2005, due mainly to the changes in Fire Department benefits.  The current net savings in the Fire Department is $4,619/monthly or $55,428/annually.  The benefit for accidental dental was changed to an Employee Assistance Plan, which is working very well.


Issues that need to be addressed in the future are post retirement benefits and active employee benefits pertaining to escalating health insurance premiums.


Meeting adjourned at 5:12 p.m.







ATTEST:                                                           Joe L. Piccolo, Mayor





Joanne Lessar, City Recorder