Minutes of
The Special Price City Council Meeting
City Hall:
Price, Utah
February
14, 2006, 3:00 p.m.
Present:
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
1. FINANCIALWORKSHOP
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.
APPROVED:
ATTEST: Joe L.
Piccolo, Mayor
Joanne Lessar, City Recorder