April 15, 1996, 4:00 p.m.
Mayor Lou Colosimo
Roy A. Nikas, Betty P. Wheeler, Steve Bringhurst, Stephen L. Denison,
Joe L. Piccolo
Vernon W. Jones (Adminis. Assistant), Joanne Lessar (City Recorder), Pat Larsen (Finance Director), Cobb Johnson (Public Works Director)
1. BUDGET WORKSHOP - FY1996/97
The Council met to review the proposed budget for the Fiscal Year 1996/97. Before the meeting proceeded, Pat Larsen suggested that the Water Fund be balanced, which is out of balance by $160,400. If the sewer camera is purchased in this budget year, then $30,000 can be subtracted, bringing the total to $130,400. Capital Expenditures, which are the first items to be cut, was reviewed. Paul Wheeler, Water Supt., felt his department needs the sewer truck. He could delete replacement water lines amounting to $100,000 and replacement valves totaling $5,000 to $7,000, but would like to keep the sewer truck and backhoe in the budget. It was suggested that the City look at reducing the amount of funds paid to Price River Water Improvement District. Instead of sending them $15/month per connection, that it be reduced to $12/month per connection. The City presently keeps $1/month per connection. The additional $3 would bring in extra revenue. This equates to $150,000/year. Another option would be to raise the sewer fee $2 or $3. However, the Council was not in favor of raising sewer fees. The recommendation to reduce the payment to PRWID is subject to approval by the City Attorney to make sure it is legal.
Pat Larsen stated that another $52,600 needs to be added to the Main Street project. Including this amount, the General Fund is out of balance $968,000. Pat stated that it is possible to take $53,000 out of Redevelopment Funds for 1996/97 to fund the Main Street Project. The Council felt Redevelopment funds should not be used for this. It is possible that 5 or 10 projects could be completed with these funds, even if they have to be limited.
The Council reviewed personnel costs. Pat indicated that current earnings are $2,459,000. Estimated earnings for the next fiscal year are $2,650,000. Requested positions to be added for the coming year is an Assistant Engineer, 2 additional Firemen, Weed Control Officer, 2 Library Aide, 5 Lifeguards, and a temporary Laborer for the Parks Dept. The Shop Superisor is not a new position. The last supervisor quit in September and a replacement was never appointed. These new positions amount to $121,000. The proposed cost of living is 2.7%, totaling $66,400. Merit increase requests total $25,430. It was noted that some merit increases are as high as 9% to 11%. It was recommended that the merit increases be capped between 3%-4%. The Council recommended that the Assistant Engineer, one of the Library Aides, and the 2 Firemen be deleted. Cobb Johnson recommended that the Shop Supervisor position be funded. As one of the older workers might retire in July, Pat did not fund the position occupied by him. If he doesn't retire, the funding for the Shop Supervisor would be used for his position. The Council discussed the $5.25/hour for temporary employees. The supervisors do not like this wage. The $5.25/hour wage was implemented approximately 3 years ago. However, some temporary employees who were working before the $5.25 was implemented, are at $6.50/hour. Those employees earning $6.50/hour have not received a cost of living increase for the past 3 years. It was suggested to increase those employees who are making $5.25/hour, an additional $.25 for each year they are called back until they reach $6.50. The temporary employees who have been here 5 years or longer and are making $6.50/hour should receive the cost of living adjustment.
The Council reviewed the list of requested reclassifications, merit increases, and the percentages employees received during the evaluation process. Pat stated that the reclassifications amount to $28,570 and the cost of living adjustment is $66,400 (2.7% increase). It was recommended to allocate a certain amount of money for merit increases. The money could be split per the department ratio depending on how many full time employees the department has. It would be up to the supervisor to determine how the money is split. It was recommended to set $20,000 for merit increases, $5,000 for supervisors, and place a cap of 3% as the maximum increase that a supervisor could give to any one person. A base that could be used is the number of years with the City and the number of years in their position.
The salaries of supervisors were reviewed. It was found that two supervisors fell below the mid range. They were at 89% of average, while most supervisors were near 100% or above. It was suggested that the salaries of the two individuals be increased to mid range. The Council discussed the criteria to be considered for mid range, and whether consideration should be given for the length of service or the length of time in the position. As the Crossing Guards were below minimum, it was recommended that their salaries be increased to the minimum amount.
In order to try and balance the budget, the following items were deleted:
GIS Computer Program - $5,000
Reconstruction of 700 - 800 North 500 East - $50,000 Cemetery Office Complex - $150,000
Central School Parking Lot - $30,000
Police Car - $20,000
Police Car Equipment - $2,000
Alley - $12,000
Streets Dept. Dump Truck - $50,000
West Park - $18,000
Basketball Court - $9,000
Resealing of Dome B - $48,000
Replacement of Water Lines - $15,000
The Council discussed options to increase revenue, such as one mill on property taxes for the Library, increasing electric power rates, and adding $.20/month on garbage service.
As it was not possible to go over all items in the proposed budget, the Council set scheduled another meeting for 4:00 p.m. Tuesday, April 23rd.
Meeting adjourned at 9:30 p.m.