08-11-10 Council Workshop Minutes

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MINUT>CS CITY COUNCIL AUGUST 11, 2010 Keis asked how the 2010 Budget is tracking thus far. Morelan indicated that expenses are at less than half the total budget, but pointed out that remunerations are not paid until December. Annual maintenance is not done until November, and equipment repairs are also an unknown. The City Administrator noted that workers compensation insurance has increased and there may be additional increases coming. Morelan pointed out that asbestos-related injuries are on the rise in the fire service and this could be impacting workers comp rates. Morelan pointed out the decrease in Fund 353 as well as 354. Again he noted that Fund 412 for vehicle repairs is the wild card. The cost of repairs to fire equipment is very expensive. Morelan noted that any overages in the budgeted amount for these repairs comes from the Department's gambling earnings. Fund 424 is budgeted at an increase given the addition of two new members to the Fire Department and the need to purchase gear and uniforms. A decrease is budgeted in Fund 440 given the need to test SCBA cylinders every five years, and this was done the previous year. Pund 492 decreased as the Department has significant educational f re prevention supplies and materials on hand. Morelan then reviewed Fund 514 noting that The State is now providing training dollars to offset the cost of outside training instructors. Fund 523 is also budgeted at a decrease given the required NIMS training has been completed. Fund 524 is budgeted at a decrease since less people will be sent to the MSPDA Conference. Morelan noted that the 2011 Budget has a $23,297.76 reduction in operating expenses from the 2010 Budget. He also noted that the Budget is proposing a $29,893.83 Reserve Fund which is proposed to be established in planning for the demise of charitable gambling. This amount is approximately 10% of the Fire Department's total budget. Morelan noted the plan to allocate 50% of gambling revenues toward vehicle replacement. He pointed out that the other 50% is used for unbudgeted items/budget overruns. Blesener suggested that the Fire Department's budget request, inchiding the Reserve Fund, be looked at iu consideration of the City's total Budget for 2011. The Finance Director noted that the Fire Department Budget is used to fwrd reoccurring items, and suggested that capital items be separated from the Budget and included in the City's Capital Replacement Budget. Morelan noted that this essentially makes the City the Pire Department's reserve fund. Morelan asked about vehicle repairs costs, noting they are part of the operating budget. The Director indicated that major repairs for City equipment are paid for from the Capital Fund. The City Administrator stated that the Fire Department's numbers would be plugged into the City Budget numbers to see how it looks in total. If Fire 5