HomeMy WebLinkAbout06/20/1991 - Workshop Minutes City Council MINUTES
CI'I'Y COUNC]I, I~'~.TING
PRE-BUDGET WOR]~SHOP
JUNE 19-20, 1991
1.'00 P.M.
Wednesday, Tune 19. 1991
Mayor. Ringer, Councilmerabers Brown,
Schneider, Crouch, Birdwell, Gardner,
Mcnhaney
City Manager Ragland, Asst.. City
Manager Brymer, .l~.ance Director
Schroeder, Budget D~'ector Cryan,
Utilities Officer Manager Alb.n.'ght,
Energy M..a.n. ager ~Sl?ar, Public Information
Officer Calliham, City Secretary Hooks
Mayor Ringer called the meeting to order.
Aaead~ Item No. I - lntroductioa.
C..ity Manager Ragland re..mar.ked that the purpose of the meeting is to seek
direction from the Council prior to the budget process.
_Aae~.d~ Item No. 2 - l~cal & Budget Po_l~c~
A. Fleet/Eauipment Policy
Ch..afl. es Cr~an presented .an. analysis of the fleet/equipment budget includin
y · _ o g
e.m.c~e re.p~a, ce~ment. He clL. s..c. ussed new proposals relating to thru item. He
aa .aressea start recommen.clations. These included: l) Establish a fleet
repl?ce.m.e.nt .fund; 2) Requn'e $1 r~il]~on initial funding; 3) Est.ablish transfers for
each vehicle based on usage for replacement c.o. st; 4) Estabhsh a team to
operate the fleet replacement fund. To accomplish these needs, the staff has
looked into establishing a procedure for sales tax accrual. The council
remarked that the accrual basis approach was not a~ro~riate However, the
council felt the replacement fund ~tould be establisl~d. '- '
B. Fees - Demand Driven
Tom Bryme. r introduced this item..C, harlie Shear presented the criteria for
demand driven fees and outlined a list of possible demand driven services.
The council recognized the need for demand driven fees as presented,
particularly for contractor utility connections.
Discussion was held by the council.
City Council Budget Retreat
lune 19-20, 1991
Page 2
City Manager Ragland pointed out that the staff will also review the types of
services that are not covered adequately by the current cost.
C. Impact Analysis
Glenn Schroeder discussed the improvements that could be made to future
forecasting in the general fund. He discussed the aspect of fiscal planning
in its relation to financing public needs for the future.
.Tom Brymer pointed out the b .e~.efits of an impact.fee analysis model. The oal
~s to forecast all relevant operation expenses, capital costs, and revenues. ~e
model would be helpful in revitalizing existing areas of the city.
Mr. S. chroeder pointed out that in the past, the staff has manua~y prepared a
cost ~npact analysis on a case by case basis, and the benefit ora computer
analysis model would allow the city to develop an impact analysis on each
development project in the city.
Councilman Gardner and Councilman Birdwell expressed their concerns about
the impact analysis computer model and its effect on the economy.
Councilman Crouch remarked that she feels this model would be a benefit if it is
customized to fit our needs.
Councilman Schneider stated that he approves the idea of the computer model.
Councilman Brown expressed his support for the program.
.Mayor Ringer stated that the model will be a very useful tool, particularlv on the
~ssues of park facilities, long term maintenance, or oversize participation~
D. Impact Analysis - Fox~e
The staff discussed the conditions of the Foxfire subdivision and its impact to the
City if the area were annexed.
Mr. Callaway stated that :~f the. Fox,r_ e property owners would like to obtain city
assistance for water serwce, then the property owners would need to initiate the
request by submitting a petition for annexation.
Charles Cryan presented the fiscal impact if the Foxfire subdivision was annexed
into the city.
The council discussed the possible Foxfire annexation.
E. Impact Fees
dTeOm Bryr~. er. pr.esented ~ item. He pointed out that ~e impagt analysis is a
c~sive rector m consiciering impact fees. He defined unpact fees as the
City Council Budget Retreat Page 3
June 19-20, 1991
charges which are made a~.ainst new development to regain capital improve-
ment costs that are necessitated by the development.
Further discussion was held by the Council.
_Aaend~ Item No. 3 - Pay for Perfmms.,tce Pisa.
Personnel Director Karen Pavlinski briefed the council on the highlights of the
city's pay plan..She propo.s.ed in the upcoming budget year, adjustments to the
pay grade scale ut the Public Safety family and Maintenance/Trades family, three
percent and two percent, respectively.
Councilman Brown emphasized his frustrations about the current pay system.
He added that he would like to see alternative pay plans.
Ms. Pavlinski explained the evaluation form.
Councilman Birdwell presented salary data from the Social Security office.
After continued discussion, Mayor Ringer adjourned the meeting at 6:00 p.m.
'l'hu.,'sd~_v. Tune 20. 1991
Mayor Ringer opened the meeting at 1:30 p.m.
_Aaenck Item No. 1 - Communlcatkms ~
Tom Brymer conveyed information to the. council about items that the staff sees
on the horiz..on as a future need for the city, commtmications is one of these
goals. He discussed the current communicationn sys!ems in the 3 city; radio
sy~t. em_s, landline syste .n~., SC~..A. syst.e.m, and Ca~.ling AS400/NC~. Mr. Brymer
poutted out problems which ex~st in radio commumcations.
Mr. Brymer asked council to consider a planned, multi-year approach to meet
future communication needs.
C!ty.M..anager .1.~.. gland pointed out that the issues of comparability and
eliminating duplication throughout the city is important.
The council agreed that the communications system is important and the staff
should continue in a unified approach.
_Aaend~ Item No. 2 - l~tes ~nd
A. Utility Rates
1E~t~lrgy.,.Manag.er Charlie Shear introduce, d this item. Bruce Albright presented
utility anci property tax rate comparisons to other cities of similar size.
City Council Budget Retreat Page 4
June 19-20, 1991
Mr. Jim McCord of McCord Engineering addressed the council. He presented
an historical data summary of rate design, the current rate design position, and
future rate design proposals.
Mr. McCord stated that the proposed utility rate revisions for FY 1991-92 are
anticipated to increase 10% in sewer rates and decrease 4.6% in electric rates.
He recommended that the water rate increase of 10% be eliminated at this time.
Mr. McCord pointed out the ..e. stimated annual average savin, gs in wholesale
energy, purchases from .transition to TMPA, approximately $2,200,000. He :~o
noted the potential electric system program attributed to 40% share of savings
for initial year.
The council discussed the implementation of proposed rate revisions. The
council agreed that .the rates.be phased in October 1, 1991. The council asked
staff to look at two tier metering.
i~ruce Albright pres. ented data on the possible revision to the late payment fee.
e stated that this ~ssue transpired from a council concern regarding the 10%
late payment fee on the utility bill.
The council concurred that the impact of the 5% fee revision would not be
significant.
Mr. McCord discussed future utility rate issues. Included in the issues is the
concept of fiat rate billing in comparison to current step rate billing for electric
rates.
B. Transfer Policy
Glenn Schroeder rli-~cussed the administrative transfer polic~, specifically the
transfer of funds from the utilit[, fund to the general fund. i~r'. Schroeder
presented areas of transfer in]leu of to the general fund.
Acmnda Item No. 2 - Medical Insurance Fund
Glenn Schroeder discussed the current status of the Insurance Fund. He stated
that the city has several significant claims.
Mayor Ringer expressed concern about the dependent coverage rates.
_Aaenda Item No. 3 - Adjourn.
Mayor Ringer adjourned the meeting at 4:45 p.m.