Loading...
HomeMy WebLinkAbout12/09/1985 Council Minutes1 1 BUDGET HEARING December 9, 1985 A Special Council Budget Hearing was called to order by Acting Mayor Reinert at 6:00 P.M. Council members present: Kulasze- wicz, Marier, Bohjanen. Absent: Mayor Benson. Police Chief Campbell; Accountant, Joe Huss and Administrator, Randy Schu- macher were also present. Public Works Director, Don Volk ar- rived later. Mr. Bisel was in the audience. Mr. Schumacher gave the Council an information sheet to let the Council know the City's financial position regarding the 1985 Bud- get and how each department is doing in relation to its Budget. The second page of the information sheet outlines the programs that were eliminated from the 1986 Preliminary Budget. To date the Council has not approved a Budget for 1986 and Mr. Schumacher will be asking the Council to set a Public Hearing on the Federal Revenue Sharing Funds for December 23, 1985 at 7:30 P.M. Mr. Schumacher noted that the projected surplus for the end of 1985 was to be $202,590.00. It appears that the year end surplus will be over $300,000.00. He thought the Council may want to re- consider some of the programs that were eliminated from the 1986 Preliminary Budget. Mr. Marier said that Mr. Schumacher underestimated some of the re- ceipts and wanted to know what the overview is for 1986. He also asked how many employees have been added for 1986. Mr. Schumacher explained that at the last Budget Workshop there were detailed work sheets and summaries that showed what the major program changes were for each department and included were proposed personnel. The only proposal for additional personnel was for one police officer. Mr. Marier asked for an overlay of 1986. Mr. Schumacher said nothing was changed from the last summary sheets and worksheets. That was a balanced budget. Mr. Marier was concerned about the position of Administrative Assistant. Mr. Schumacher said this position was eliminated from General Fund. Mr. Marier said it was already agreed that one new officer should be added and there is no need for two officers, the additional two squad cars are needed, the City Hall roof has to be repaired, 80th Street project engineering has to be a part of the budget because it is already in the County Plan, additional day for the secretary, $800.00 for votomatic, Civil Defense sirens all should be added. However, there should be more research on the cost of the sirens. Mr. Reinert questioned the cost of the additional overlay and seal coat program for Public Works. Mr. Schumacher said Mr. Volk will be here later to address this issue. 0209 0210 BUDGET HEARING December 9, 1985 Page Two Mr. Reinert questioned the preparation of the preliminary budget for 1986; does the current proposed budget not include the items listed on the second page of the handout such as the additional overlay and seal coating. Mr. Schumacher explained the current proposed budget does not include this item. If it were to be in- cluded it would then bring the road program up to the point it was planned to be. Mr. Marier felt one new officer for 1986 would be adequate. Mr. Schumacher explained that the 1986 preliminary budget for the Police Department did not include any new officers. If the Coun- cil wishes to hire one new officer they will have to select this item from the list of priority programs list that was presented tonight. Mr. Marier felt a new officer was included in the orig- inal proposed 1986 Budget. It was explained the cost of one new officer including fringe bene- fits is $25,000.00. Mr. Marier explained the cost of this new of- ficer could be included in the 1986 Budget if the cost to repair squads was reduced by $5,000.00, if PERA were reduced, and part - time salaries were reduced by adding the new officer. Mr. Marier said he would sit down and determine where the budget could be cut to find the funds for the new officer. Mr. Schumacher said Mr. Volk had told him that just routine maintenance of five squad cars will cost the Police Department what is already budgeted. Mr. Mar - ier said cars should not be purchased if maintenance cannot be re- duced. Mr. Marier said that the Assistant Administrator had been cut from the budget and the salary for this position could be used to under- write the new police officer. Mr. Schumacher explained that this position had already been eliminated to keep the mill rate at the 1985 level. Mr. Marier felt this was not done, when the previous meeting ended Mr. Schumacher was told to cut the Assistant Admin- istrator from the budget. He said there was another part time individual in the budget as well. - Mr. Schumacher referred to the budget worksheet for Administration. Other salaries had been cut $8,500.00 and this is where the Assis- tant Administrator's salary was. Mr. Marier said this was not on his worksheet. Mr. Huss said the revised worksheets were sent out for the meeting in which the levy was set. Mr. Reinert said he would like to see the revised worksheets as they were agreed to at the last Budget Workshop. Mr. Marier asked the worksheets be updated for each department. He is looking at not increasing the mill rate and there is enough money so that everyone can operate their department and to supply the needs of the citizens. 1 1 1 BUDGET HEARING December 9, 1985 Page Three Mr. Schumacher explained tonight he wanted to show the Council the City is in good financial shape and for the Council to re- view the budget so they can make a decision on December 23, 1985. Mr. Marier said he cannot make any decision until he receives updated worksheets. Mr. Bohjanen asked Mr. Schumacher to refer to the second page of the handout and asked if these items were to be added to the 1986 Budget would the costs come from the surplus. Mr. Schumacher said yes. Mr. Marier asked Mr. Volk to give figures on the overlay program that was eliminated. Mr. Reinert asked if this were added to the budget would it bring the Five Year Program up to date. Mr. Volk said yes and the costs would be $22,044.00 ($7,544 seal coat and balance overlay). Mr. Reinert said there are some items on the priority programs list that should be addressed if there are unanticipated surplus funds. Mr. Schumacher asked Mr. Volk to explain the maintenance item in the Police Department. There is $16,000.00 in maintenance parts and labor and a portion is a constant. He did not know the dollar amount of the constant. The extra dollars are for vehicles which have a lot of miles on them. Mr. Marier said the police maintenance item has to be reduced, as well as the figure for part -time help and PERA. Chief Campbell explained his need for part -time salaries. Mr. Marier suggested cutting this item from $8,000.00 to $3,000.00 or $4,000.00. Mr. Reinert said what he is hearing is that there is still some fat in the budget, it was not scrutinized as well as it could be. Mr. Marier said he was surprised that the staff was not overjoyed with the budget they have. Chief Campbell said he was not disa- ppointed. Mr. Reinert asked what percent of the 1985 Budget is the projected surplus. He felt if the percentage gets too high there has been some sloppy budgeting. Mr. Volk said maybe it was good management. Mr. Reinert said if there is too much of a surplus that means that the projection was not properly done or did not budget very closely. Mr. Schumacher explained that the department heads only have con- trol of how much money they spend not how much money is received by the City. Every single department is within their budget. The staff has no control over how much receipts the City will get. 211 212. BUDGET HEARING December 9, 1985 Page Four He explained he can only make his best guess based on prior years experience. There was no way of knowing the Council would sell three lots for $28,000.00 and that a particular officer could make a difference in police receipts or building permits would be much higher than anticipated. Mr. Marier said he did not want to imply that the staff did not do a good job. Everyone knows that there are intangibles, and he also commended Mr. Huss for his work on the budget. However, there is more work to be done and he felt that every item listed on the Priority Programs with the exception of the second police officer will be added to the budget. He asked the staff to be positive about the budget and work along with the Council. Mr. Schumacher explained the reason that the Public Works Depart- ment is under budget. It was the result of a negotiated contract for equipment that would pave the roads twice as fast as the last years paver. He felt this was good management. Mr. Marier asked the staff prove their cuts and overcome their de- ficit and if $14,000.00 has to be taken from surplus this should be alright. Mr. Huss explained that although the surplus looks good it has to be maintained because the City receives very little income in the first six months of the year. Most of this surplus will be ex- pended in the first six months to pay for the operation of the City The state auditor has suggested that municipalities keep a large surplus because the state may be making some cuts in State Aid to cities. Therefore, the City may not get all its anticipated state aid in 1986. Mr. Schumacher said the staff will go over everything that was dis- cussed tonight and make new copies of everything that was submitted previously that is approved. Mr. Marier asked that the final pres- entation be made on these copies and they be sent to the Council be- fore the end of the week. Mr. Marier moved to adjourn at 6:45 P.M. Mr. Bohjanen seconded the motion. Aye. These minutes were considered and approved by a regular Council on. December 23, 1985. L. Mrar I lyn Anderson, :lerk- Treasurer son, Mayor