May 2, 1996, 5:05 p.m.
Present:
Mayor Lou Colosimo
Councilmembers
Roy A. Nikas, Betty P. Wheeler, Steve Bringhurst, Stephen L. Denison
Vernon W. Jones (Adminis. Assistant), Joanne Lessar
(City Recorder), Pat Larsen (Finance Director)
Absent and Excused: Councilmember Joe L. Piccolo
1. WATER/SEWER DEPARTMENT - Permission To Receive Bids For Purchase of
Sewer Camera
Councilmember Denison moved that permission be given to receive bids for
the purchase of a sewer camera. Motion seconded by Councilmember Bringhurst.
2. LIBRARY REMODEL - Budget Adjustment, FY1995/96
Pat Larsen explained that the contractor who was low bid on the ADA
Library remodel project increased his price. His explanation was that he received only one
of the four addendums. Gary Sonntag stated that all the addendums were sent at the same
time. Because of this, the low bid can not be accepted. The committee then accepted the
bid of the next lowest bid, which was $68,000 from Stilson Const.. As this bid is higher,
Pat requested permission to transfer $7,000 out of Fund Balance so that this project can
be completed. Councilmember Bringhurst moved that the request be granted. Motion seconded
by Councilmember Denison and carried.
3. BUDGET WORKSHOP - FY1996/97
Pat Larsen stated that the budget is still out of balance $28,000. After
the last special meeting held April 23rd, A few minor adjustments were made and Vern found
another $5,000. It was recommended to try and find other ways to balance the budget
instead of increasing electric rates.
Councilmember Nikas stated that he reviewed salaries over the past 5 years
in order to see what departments, if any, had significant increases, and what other areas
increased. He referred to a few departments that had significant increases, such as the
payroll increase and increase in Special Department Supplies for the library. In addition,
he questioned the utility portion of the swimming pool and if it is realistic. The
installation of a new boiler was supposed to decrease gas usage. Pat Larsen explained that
salaries in the Library increased because the City began paying the salary costs for 2
employees in the Literacy program. These positions were formerly funded by grants. It was
the library's decision to keep the Literacy program operating. The account for Special
Department Supplies is basically for the purchase of library books, which accounts for 99%
of this line item. In reviewing the amount made on the concession stand at the swimming
pool, Councilmember Nikas felt that there might be a chance to run a higher profit margin.
It may be that items being purchased are not being sold. Certain items have a high profit
margin.
The Council reviewed the budget further to see what other items could be
cut. Pat stated that in past years, there has always been approximately $100,000 left in
Fund Balance from the previous fiscal year that can be used for the new budget year. The
option of increasing electric rates was reviewed again. The Council recommended that
electric rates be increased beginning at 3% with the hope of decreasing it down to 1%, if
more funds are available, and that the increase become effective after the audit is
completed. If the audit does not show sufficient Fund Balances, then the increase will
have to be 3%. It was recommended that if additional funds are available, that the police
car be the first item purchased.
Later in the meeting, the Council again reviewed the increase in electric
rates. At this time, it was decided to increase electric rates 3% effective July 1, 1996,
and that if additional funds are found, that they be decreased accordingly.
Meeting adjourned at 6:10 p.m.