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HomeMy WebLinkAbout09-12-2022 BAC MinutesCITIZENS BUDGET REVIEW ADVISORY COMMITTEE MINUTES OF REGULAR MEETING SEPTEMBER 12, 2022 Chairman Napier called the Citizens Budget Review Advisory Committee meeting to order at 6:00 p.m. It. Pledae of Alleaiance was recited by all. III. Roll Call Present Mr. Napier Mr. Hall Ms. Reed Mr. Shira Mr. Newhart Mr. McGinn (Zoom Mr. Hoffman Not Present Ms. Cerda — Excused Mr. Sullivan — Unexcused Present Ken Killgore, Administrative Services Director/CFO Paul Carlisle, City Manager Barbara Brooke -Reese, MIS Manager Janet Graham, Recording Secretary ZMEFff 1MILTI l" A. Meeting of July 18, 2022 Mr. Napier asked if all Committee members had reviewed the Minutes of July 18, 2022. All Indicated they had. There being no corrections or additions, Mr. Napier called for a motion. A motion approving the Minutes of July 18, 2022 as presented was made by Mr. Newhart, seconded by Ms. Reed, and approved unanimously via voice vote. V. Presentation of Power Point on Budaet Mr. Killgore reviewed that the meeting scheduled in August was canceled since there was nothing new to discuss. Since then, the recommended budget has been compiled. City Council did approve the proposed millage at the recommended rate of 3.0043, but at this point the City can go to 2.9050. He will explain in the Power Point how we got to that point from where we were before. Mr. Killgore gave a Power Point presentation (SEE ATTACHED) where he reviewed the proposed budget. There were changes in Personnel Costs, which is now up to $697,360.00. The overall increase in the budget is 4.8. The CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 2 MINUTES OF SEPTEMBER 12, 2022 personnel who were below the minimum pay or the amount recommended in the compensation study were brought up to the minimum without changing other categories. On the slides it states on Page 4 that there had been eight full-time positions added. It was corrected to seven full-time positions. The proposed Assistant City Manager position has been deleted. It is being recommended that City Council adopt the millage at their next meeting of 2.9050. Mr. Killgore reviewed the golf course budget, airport budget, building fund budget, special revenue funds budget, trust fund, debt service, and capital improvement program. Mr. Napier asked what the rollback rate is for this proposed budget compared to the 2.9050. Mr. Killgore said the rollback rate is 2.6834. Mr. McGinn referred to the proposed position of Assistant City Manager having been removed. He asked for the reason. Mr. Carlisle stated that when the budget presentation was given to City Council, they felt that it was not time for the City to move forward with that position yet. Mr. McGinn stated his opinion is that the removal of that position is short-sighted. Mr. Killgore also reviewed the different millages and affecting factors, property values and millage, and a chart showing a millage-setting, 17-year history and the comparisons through several years. Mr. McGinn suggested that the chart should be made available for the public to see. Mr. Killgore called for questions/comments from the Committee members. VI. Discussion on Budaet by Committee Members McGinn agreed that it is a good budget. His only concern is that the Assistant City Manager position was canceled. Mr. Napier said that this Committee does not get into that question. Ms. Reed thinks it is a good budget. Her concerns are the personnel costs and the unknowns with the labor agreement. She is concerned that those two items are going to be okay with the 2.9050, Mr. Killgore stated he feels comfortable that the range that he would expect will be managed. Ms. Reed is also concerned that, with the loss of the Assistant City Manager position, should Mr. Carlisle be incapable of performing his duties or should he leave the City, what the costs are going to be as far as replacing him. She wants to be sure that the City has that kind of money in its reserves so that we are not going to run into an issue in that case. Mr. Napier stated that the General Fund has a $5 million reserve, and that should be adequate Mr. Hall asked if the 2.9050 figure includes the General Fund reserves of $5 million plus. Mr. Killgore stated that is correct. The General Fund reserves are available funding for emergencies or for adapting to whatever circumstances come up during the year. Mr. CITIZENS BUDGET REVIEW ADVISORY COMMITTEE PAGE 3 MINUTES OF SEPTEMBER 12, 2022 Hall also asked if the amount in the budget is for anticipated increased labor costs, or do we have enough in the reserves to cover any unforeseen circumstances so that it will not drop the $5 million reserves within reason. Mr. Killgore stated he expects that it will be easily oversaw. Mr. Carlisle stated that we do not know yet where the union negotiations are going to go. All those funds are not captured in the 2.9050. The reserves that are available —we will have to do a budget amendment based on what is negotiated with the union, and that will have to come out of reserves. Mr. Napier interjected that the revenues are coming in very strong, and the expenditures are under budget. Mr. Carlisle stated that it is his opinion that the City's proposed budget is adequate. Mr. Killgore added that there is always a concern with the economy and where that is headed because of the current soaring prices and high taxes, etc. Mr. Newhart said he trusts the budget. He thinks the 2.9050 will cover it. If we do need to go into the reserves, we have to run the City. When you look at how the millage rate has come down according to the chart that was shown and how we are very efficient in what we do —we have covered the City expansions —he thinks this is a great budget. Mr. Hoffman agreed and stated this has been a very good presentation. Mr. Napier said he would prefer to see rollback, but he understands why we are where we are. He agrees that we should do the 2.9050 millage rate and that the Committee should also approve the budget as presented. There was additional general discussion among the Committee members and Mr. Killgore and Mr. Carlisle regarding the figures in the Power Point presentation. It was the consensus of the Committee members that this is a good budget. Mr. Napier stated that the only two items the Committee needs to address tonight is to approve a recommended millage rate for the City Council and approve a recommended budget to City Council. He called for a motion regarding those two items. A motion that the Committee adopt the budget for 22-23 as presented, including the recommendation for the millage rate of 2.9050, was made by Mr. Hoffman, seconded by Mr. Hall, and approved unanimously via voice vote. VII. Adjournment There being no further business, Chairman Napier adjourned the meeting at 6:31 p.m By: �7cnn,..I ,') A c, Date: 3//34) Chat�man Larry Napier jg