Loading...
HomeMy WebLinkAbout2000 08-02 BudgetMeridian City Council Workshop August 2, 2000 The City Council workshop of the Meridian City Council was called to order at 5:35 p.m. on Wednesday, August 2, 2000, by Mayor Robert D. Corrie. Members Present: Robert Corrie, Keith Bird, Tammy deWeerd, Cherie McCandless, Ron Anderson. Others Present: Janice Smith, Shelby Ugarriza. Corrie: City Council will be discussing reviewing strategic planning and department budgets for the City of Meridian. Clerk, will you give us roll-call, please. Bird: I move that we go into an Executive Session according to Code 67-2345(a). Anderson: Second. Corrie: Motion made and seconded to go into an Executive Session. Any further discussion? All those in favor of the motion, say aye. MOTION CARRIED: ALL AYES Executive Session was called to order at 5:37 p.m. on Wednesday, August 2, 2000, by Mayor Robert D. Corrie. Corrie: I will entertain the motion to come out of the Executive Session. Bird: So moved. Anderson: Second. Corrie: Motion made and seconded to come out of Executive Session. All those in favor, say aye. MOTION CARRIED: ALL AYES Corrie: Let the record show that no decision was made in the discussions in the Executive Session. I believe we start where we left off with Planning & Zoning. Anderson: Since we have a whole stack of new colored paper, maybe Janice could explain to us where each of those goes into our book and get updated on what they are and what changes. So you changed every department's green sheets, is that correct? So we need to change every department. Basically, that everything we had come out and we would replace. Smith: Yes. We need to give you some new. We did not get these updated from the departments on the goldenrod sheets. Hang onto those, we will be replacing those. deWeerd: I noticed when Tom did his, he increased some and he was shifting money around. Corrie: You were given specific instructions not to allow them to do that. Smith: I can check to see what they changed. I believe it's more capital. Bird: We are working on a budget and they are changing things. Smith: The summary we gave you, the green sheet, shows all the changes. The only thing that this does not have on it is the police building because it was not listed on their capital. deWeerd: It does need to be listed on here. Smith: If it's not on here, you can't spend the money. We will put on the revenue and expenses. deWeerd: Do the department heads understand now if it's not on their budget, like increases or any budget item, is not on their budget. Smith: Everything had to be put on these forms. Anything we knew happens, like overtime. It shows the revenue, expenses, references, etc. We have fund balances for funds which is $1,111,000 and the impact fees for the parks are dedicated funds can offset that expense. The Use of Fund balance would be $623,000 but this does not include the police department. This is only request A. deWeerd: On the park impact fee, why is that noted on here? Smith: That has to be noted on there for us to use it. That is not a revenue, we have other revenues which are up here. This is sitting here in Investments. Anderson: When we went through the City Clerk's budget, the only things that we talked about changing was reducing his fuel from 10,000 to 3,000 and reducing the municipal center from 50,000 to 10,000 and then yet when I look at this new sheet that's on here, I see that aside from the salary and benefit portion, if you just look at his operation expenses, office is down by $1,000 now, his computers and software is down by $5,000 in his request. Who changed all of these numbers? Smith: Will was suppose to give us something and he didn't get it to us. We went by the actuals of what he is actually using. We went by that and upping it three percent. Anderson: Why does it say minus 50 percent next to it then? Smith: Let me go get my sheets, hold on. The budgeted in actual has always been cushioned and he's never used his budgeted amount. So his actual is always lower. Anderson: In his operation expenses, the third item down, computers and software, he had budgeted in our last sheet, $10,000. We have already reviewed his budget and then we had recommended that the only cuts would come the $3,000 in fuel and the municipal center by $40,000. I know that we had made the comment that we would like you to take the total operational budget and just do three percent on those. Smith: We did three percent of the actual, not three percent of the budget. If you go into the three percent of the police budget, we're going to be in the red again. So we went by actual and same on police, if we went by their budgeted personnel, they were still in the red. We need to make an amendment. We went by their actual. We tried to get some input and he had a meeting this week. Let me see if I've got, we did a sheet of budgeted and actual and then you can see over the years, over the ten years, of what they've been spending. Anderson: The point is though, the department had sat down and looked at their budget and they've made their plans for next year. The three percent, I think, what the Council was looking at right there, was that the normal deal that the operational expense should not exceed three percent. There would be particular line items that if a department head could justify more than the three percent, that they would have the ability to go more than the three percent. In effect, just by taking everybody and going off of their actuals and going three percent, we have destroyed the budgeting process. We might as well not have the department heads work on the budget if we are just going to take three percent off of their actuals. Smith: We went off their goldenrod sheet on their request. He wanted to move up his office expense. That went up 40 percent. All the departments have seen this. Muster said this looked good. These came from the department heads other than Will's, because we were told to stay within that three percent and I think it was 40 percent in office expense, you have to cut back something else. His was the only one that we did not have his input and we changed it as by the actual. Also, under the direction of City Parks, I didn't get all of the directions. deWeerd: She followed our orders as good as we gave them. Anderson: I'm not blaming her for this. I think a lot of this, again it's part of the reason why we need a finance person. Just like this whole three percent issue, if that's what our intentions were at the time when the budget was handed out and the training went onto the department heads, that's when that needs to go on. We just invite this kind of changes and last minute changes and we are never going to get through this budget process when we keep throwing in new rules and changing the rules in mid-game. That's not Janice's fault, that's our fault. Bird: It's 100 percent our fault. When we had that meeting down at that motel in May or April, that's when we should have given the three percent increase for their budgets, we do not do it. Instead we listened to goals. They thought they were going to get some direction from us and we didn't give any. I'm like Ron, you can't hardly blame these people. They are doing the best they can. They don't know what we want, we don't know what we want, I guess. Anderson: I guess I'm trying to figure out if we can salvage this with this three percent deal and that's why I'm curious as far as what the department heads have seen and if they can live with that three percent. When I was going through these budgets before, there were some of them that was close to three percent, but there were some of them in the operational part of their budget, were much higher than three percent. They were in the neighbor of 20, 30 percent and if that's the case, they either must have had some major changes in their operation this year or they were way under budgeted last year. That's what we don't know. If we just say three percent, are we going to have somebody coming back who can not run their department. Smith: All of the other departments have reviewed these other than the police and Will and you will see on this summary sheet showing the increase the percentage. Some are over the three percent, which is due to new staff. When you have new staff, you have to have new equipment and unexpected costs. The fire said they could stay with what they have, but we still gave them an additional three percent. Anderson: So Council, Clerk, Mayor, Fire, those four departments can live with three percent. Is that what you are saying? Smith: Yes. Anderson: Finance is at a 37 percent increase. Smith: You have a financial director in there. Anderson: HR is 26 percent. Smith: You have a new staff person for her. Anderson: Government is minus 68 percent, lighting is 20 percent, Police is 16 percent. What's the overall average, minus 3five percent? Smith: Yes. It's reduced because a three percent would have been $7,177,000 and they even cut it less to that. If you see off to the right. That column off to the right is the three percent. They were even able to reduce their operating but more in personnel costs. Anderson: Is that because they didn't budget promotions? Smith: A lot of it was new personnel. The personnel was also with the help of HR, went through everything. Some of them were way out of range that wouldn't make that. Next year she will see it before you do. Anderson: What do you want to do? Either way we've got $3 million. Bird: General revenue is at $8.6 million and expenditures of $10.9 million. Corrie: What is this carried forward expenditure? Does that subtract from the $2.27 million? Smith: The expenses are still in progress, projects still in progress. Corrie: Any impact fees, fund balance is included in this? What is the capital improvement fund of $1.1 million? Smith: That comes from the building and planning & zoning. That is what we project will be left over. Corrie: If you adopted right now, you would $623,000 off and have to come out of general funds balance. B and C would be $4 million. Smith: Yes. Bird: You don't have $4 million showing in capital. Smith: For the police station. Bird: For the police station. Which you have to show. Anderson: We can't just use column A, because we instructed Janice and Pauline to use that four percent increase, so we have to use the far right column, the 4.558 percent on the personnel costs. That is the marching orders we gave everybody. deWeerd: Ron, I think it's off because of the benefits. In some of the benefits, PERSI. Smith: The insurance has gotten really high with the short-term disability. It is higher than it was projected to offset the Lone Star Accident Insurance. It has way exceeded that. deWeerd: The benefits percentage wise is more than four percent increase. You can adjust your wages so that the increase is four percent, but that doesn't mean that your benefits are going to increase by four percent. You don't have control over those. Anderson: Aren't our benefits up under the personnel costs? deWeerd: Yes, that's why the personnel costs in column A are so different than it is in the projection in the very last column that shows a straight four percent increase. Anderson: I thought when she put in that four percent increase, that that would change all the benefit numbers. Bird: It should be shown in both column a and this one. Smith: I look at financial and it doesn't match. I'm wondering if she didn't put in the financial director at that point. Let me check somebody else's. Let me check HR. HR matches, I'm wondering if the financial director's position did this. The Mayor's is okay. Anderson: Benefits should be automatically calculated. deWeerd: The formulas just seem to be inconsistent. Smith: With the financial director, it is $280 not $140. When I did my first one, it was at four percent. Adding the financial bumps it up with all other costs. I see there is a big error on my. Bird: The right column does not have benefits in it? Smith: So far everybody's okay. My department's isn't. I'm only off by $140,000. I know what it is because Enterprise picks up half of that. Anderson: I saw the addition of fund transfer. How much will it be this year? Smith: $185,040. Based on column A, differs because of the inter-fund transfer. Anderson: So if we use what is in the far right hand column, the benefits should be right? Smith: Yes. Columns 3 and 4 do not include benefits. This is just a summary what the bottom line would be at four percent. Anderson: So she only took salaries, not benefits? Smith: She took current budget times four percent. deWeerd: Not including new positions? Smith: Right. Any other questions or helpful hints? Bird: Let's go to the Enterprise Fund and go through that so we at least get something accomplished. Corrie: Are you feeling we are not doing anything here? Bird: That's one thing we can go through. When you get stuff two minutes before you come in here, it's kind of hard to digest this. Corrie: Planning & Zoning. Let's go through the Enterprise Fund, Public Works. Bird: Okay, Public Works. I think we took out the $12,000 for depreciation, scratch that since we couldn't find what we were depreciating. Smith: It's their inventory that's depreciating. Bird: The $12,000 stays in then? Corrie: Yes. deWeerd: In request B, is that the request that included the competitive wage increase, right? Bird: Uh-huh. Does anybody have any heartache with any of the items in request A? deWeerd: I would recommend that we look at request b instead, since he has built into his wages the anticipated increases need to be competitive in the positions they are trying to recruit for. Anderson: My thoughts on that is based on the information that we are getting, is ask them to do is look at any of those positions in all of our departments that are not competitive and maybe put together a total price figure for us and then in the other government category, just put a lump sum in there at this point to cover that instead of trying to sort through every department's budget and try to figure out what positions are short. Bird: We can't do that with this. Anderson: Why? Bird: There are two separate funds. This is Enterprise Fund. What you are talking about is Other Government Funds, taxable. I think that Tammy's 100 percent right Ronna, I think they know where we've got to be competitive. B probably covers it. There's only a total of $4,000 difference between A and B request. I'm with you. I think we need to some way in the Enterprise Fund to stick some money to protect that stuff. It's not only in Public Works but also in Waste Water Treatment Plant too. The wages adjusted for the increase. Anderson: A is the highest request and B and C are the lowest and his salaries don't change at all. Do we know for a fact, if he did this in all of Public Works, like in water or waste water? Bird: We have got to get up to speed. I think Gary and Pauline knew we were in trouble when 9 graduated at U of I and they didn't even look at us. I think he has covered himself. Anderson: Are we looking at B or C request, or what are we looking at? deWeerd: The only difference between A, B and C is $2,000 in training. Bird: There is $15,000 difference. deWeerd: In the operating. Bird: The operating expenses is getting your new office space. Anderson: We do need to go with A if we are going to move them. deWeerd: B and C didn't include the moving expenses. Bird: MUBS. I've got a questions on MUBS. When Leslie had talked to us, she was checking into having the mailing done out. If that is done, I would think at that point, then we wouldn't need the number of employees and would affect our budget, wouldn't it? Corrie: That doesn't decrease employees. That's only done once or twice a month. Bird: What are they, if you mail out all of these with the existing employees, and you're sending out, it makes sense to me to pay out X-amount of dollars to have them mailed out. If we're not going to reduce our employees, then why are we sending them out? Why are we going over? Corrie: I think because of the increase in population and increased workload. I can't answer for them, but I imagine as the increase in population increases the workload as well. You don't just do two employees to do mailing. Bird: It is taking up a lot of time. If you contract out, I would think that would take off a lot of the workload in there if you are contracting the mailing of the bills out. This outside billing source and they take it and process it. I understand we are moving the receptionist into the Clerk's Office which I think is a good move. deWeerd: They don't average a four percent increase in their wages. Anderson: Two percent. deWeerd: On the wage / salary thing, it is five percent, on the yellow sheet. Smith: On the green sheet, she put herself up in administrative wages. I did take the two together and divided it out. It does come out to four percent. She had on her insurance, she had those high last year. deWeerd: That still doesn't explain why it is showing five percent on the yellow sheet. Smith: We told her to go with the four percent. The bottom line is five percent. Anderson: Let's change it to four percent. Smith: Most clerical are going to get four percent at the most, I don't know why these are five percent. We also told them to put in the promotion in there, because if they're not in there, you're not going to get it. I don't see any promotions written down. deWeerd: One of these positions is being transferred to Will's office for the receptionist? Bird: That's not showing up in here. deWeerd: So the vacant position is really no longer? Smith: They've got a temporary until it happens. Bird: This is a temporary answering the phones right now? Smith: Yes. Corrie: They hired a replacement. deWeerd: Do they have six positions in this until, I mean this is for the beginning of the new budget year, aren't they going to be down to five positions because the receptionist is going over to City Clerk? Smith: As far as I know, she's going to keep the six. deWeerd: We are taking away the phone receptionist and the mailing and billing, so that should justify a whole position. Shouldn't it? Corrie: Receptionist, answer phones and billing is one position. What they would do is break those into separate positions. Bird: We are taking the receptionist, we are looking in having all the billings done outside, but we are still taking a receptionist position away and the billing job away, but we are still going to fund for another position. I don't agree. Anderson: Let's take it out of there. Bird: I say she has five positions. We will take out the vacant one. deWeerd: They just filled the vacant one. Bird: Let's just, for tonight, wait and I will talk to Pauline. Anderson: On MUBS, when we were at the conference at Association of Idaho Cities, I talked to one of the vendors there, there are some cities that are contracting this work to a service. In the interest of efficiency, I would like not to this year, at least explore the process and get a bid from the company and see if it is more cost efficient. Corrie: Let's explore it. Bird: It's something to look in to. Our attorney has been such a welcome deal when we privatized that. Not only have they saved us money but they have done an efficient job. If they don't get their job done, we can always twist their arms. Corrie: United Water would like to privatize us and buy us for $80 million and put it in the treasure. I don't suggest that. Bird: I don't suggest that at all. I think it's something we need to look into, and save the city. It could be toward our advantage, money can be put towards something else. Do we want to take out the one deal before I talk to her? deWeerd: Are we going with request B? B has the mailing, privatizing of the bills included in that one. If we increase there, we could cut a position to justify that. Bird: We take A for personnel and B for operating. I will check on the postage and mailing and the other position. Anderson: Janice will you make a notation that that salary on the yellow sheet needs to be corrected to four percent. Then make the appropriate changes on the green sheet. I'm not sure which is accurate. So we are using A and B. Bird: It comes at $352,888 by adding those together, Ron. Anderson: I got $362,888. Did you add the capital? Bird: No I didn't. Down to the Water Department. I can tell you that Gary explained that his administrative wages went up because Jon will not be over both of those. Gary does have a Water Department head in the wages, that's why you see a big increase in wages. Anderson: What request are you looking at? Bird: A. Anderson: A has the appropriate salaries. Bird: Yes. He has the wage scale adjustment right there. Consulting is for sewer and water lines, we have to get outside consulting people. Modeling is done by outside consultants. Actually Gary has all of that in there. We can go with it. Corrie: On operating expense, what are you suggesting? Bird: His A request is not much more, you are only talking about $30,000 in personnel and $65,000 in operating and our capital outlay. That is also a carry over from last year. Smith: This carry over should be on the purple sheet. I don't see a purple sheet. It must be the blue sheet. It should be on there. Yes, he's got it down there for $70,000. Bird: The new tank did not come on line in time for us to get specs and bids on the deal and now it will be spring. Anderson: That is covered under 96.111, water tower upgrade. It is now $180,000. Which operating request are you requesting? Bird: I'm suggesting A, $1,685,000. Anderson: Capital outlay. Bird: I would like to see A kept there too at $3,230,000 for the total budget of water at $5,542,860. I think that gets a lot of upgrades on our wells, new wells constructed which we will need. It will move us forward and gets us our water. We stay up with the growth, I think. I think this is important. Anybody have any heartache with that? Anderson: His only increase in personnel, is a half time person? Bird: No it's a full time. Anderson: It's shows a half time. deWeerd: There's a half time person, the superintendent, and the work person. Bird: Administration is okay. I can't explain that Ron, unless that's something we entertain between MUBS and them. Smith: They do have half time people. Helps relieve them. This is a new position that does not require benefits except FICA. Bird: They help put the meters in. Corrie: Keith, on the water tower upgrade, it's a $180,000. Is that what it costs to upgrade it or is it $250,000? Bird: I think it's the $180,000. I guess they are getting the specs and it's kind of tough. It takes a little bit to do. We're hoping it comes under the $180,000 but I think he threw that in there to cover it. Smith: We just didn't get the blue pages updated. Bird: The Waste Water Treatment Plant. They have gone through and the wage adjustments are up. Anderson: His highest request is C. Bird: Yes. He went the other way. On operating he bounced back to A. Actually B and C requests in personnel are the same. I think the A request is only a one percent and the other is three percent. That consequently shows up in your benefits, too. The office expense went up a little. We will have a lab on board this fiscal year which costs more. Plant maintenance went up quite high. deWeerd: I don't have a wage sheet on him. Anderson: His yellow sheet shows his benefits and wages. The yellow and purple are the same sheet. Smith: Looks like two different colors of the same sheet. deWeerd: It just $4,000 difference. Bird: I would like to take request B in the wages to start with. B or C, they are both identical. A in operating expense, and capital is all the same. Anderson: You are recommending B on the operational part? Bird: I was suggesting A request for operating and also capital and the B request on the wages. Anderson: Do you have any reason why you would go with A? A under the operating is a 2three percent increase, B is a 20 percent, and on the capital it is a 20 percent. Bird: That to me, B could be done all the way through. You are only talking $57,000 difference in the operating. On $2 million, that's not much. Let's just go with B request. If we don't get some things enacted, we miss out on a lot of revenue as far as I'm concerned. With the growth, it's water and sewer to me, it's not a public safety, but in some words it is a public safety. Anderson: Is he talking about four new positions? Bird: Yes he is. As you know, we are making a split. We've got to get new engineering people. deWeerd: In your Public Works information, did you get a yellow sheet for Public Works? I got one for the Water Department. Bird: I've got one right here. They took a five percent, three percent, 1three percent (advancement in rank), engineering tech. Do we have any questions? Corrie: No, not yet. I don't see anything. Bird: I don't see anything exorbinent. I think they know we need to keep up with the growth and as long as we stay with the growth, it makes our jobs easier. Anderson: $10,829,000 is accurate for Waste Water on request B. Bird: P & Z is not funded out of Enterprise. They are funded out of the general. They are supposed to raise their own revenue, be a revenue source, but we also have an ordinance in the City that was drafted either just before Ron and I, that we have so much set aside for building and planning and zoning, that's part of the fund balance. deWeerd: P & Z is another area we wanted to see a fee structure on this year. I thought we would have it by budget time. I understand it is available. Smith: Shari did put it in there, but we took it out. I talked with her and told Shari that she needed to get it implemented now so it is on board by October because we are doing the budget. She didn't even have any rates at this time. I told her when we implement it, it would offset her expenses and revenues. Bird: I believe those fees have to have public hearings on them. So we have to get these started so we can have the public hearings and have these things on board. We need some action right now. If we don't get them implemented, it kills us. Smith: I just didn't put them in here. Nichols: The ordinance itself merely sets up a the mechanism for collection of the fee, but a key part of that is the actual data that goes in to determine the impact fee. The ordinance sets up the mechanism, the hardware is the data that goes in that determines what the fees should be. Anderson: Now that we've finished looking at the Enterprise Fund account, on expenditure side, are $17,509,509. On our revenue sheet, it shows that we would have $10,837,200. So obviously our expenditures have to match our revenues. What are the numbers on the green sheet that show use of Fund Balance, $12,362,000 and what are the carried forward expenditures? The carried forward expenditures have already been listed in the budget, so why would they be listed again? The carried forward expenditures is $5,736,000. Smith: On the meter upgrade, he doesn't have them but some he does. This is for Water. We told them to be sure to include their projects carried over. It looks like it could be in here twice. Anderson: What's listed on their blue sheets is also listed on their green sheets as an expenditure. If you are making another item for the blue sheet, you are actually putting those in there twice. The whole purpose is to see them all on the blue sheet. Bird: $25 million is in the Enterprise Fund. Anderson: We could take $6 or $7 million out of that really easy. Bird: Not exactly. Certain things you can't. To replace existing sewer lines, repairs, water lines, plants, upgrade the plant, you can. Anderson: Out of that $17 million, $10 million of it is in capital expenditures. Bird: We need to get that sewer assessment thing done. Anderson: The reason for having the separate carry over expense was so that the department heads could show the Council things in process that would not be finished until the following fiscal year. It is primarily to show on the expense side that this is something that has to be budgeted on the expense side because we are mid-project. Smith: That's correct. Bird: Why does it show up twice? Smith: I think we need to look at that. I was under the understanding that we would have our capitals here and any carry forwards by themselves, because it looks like to me, if they are added up and brought over, it is a duplication. Bird: The $17 million includes the $5 million and shouldn't be deducted twice. Actually the $6 million is the true short fall. Smith: Right. She maybe wanted to word that carry forward as a carry forward fund. I will check that, it does look like it is duplicated. Anderson: The green sheet is the actual total budget for the department. It shows the personnel cost, operating cost and all our capital expenditures. The additional sheets, the yellow, canary and blue, are all to show the Council more detail, more breakdown of some of those things. It is not to create more money, more debt, more income, or more funds. All they are is for additional clarification on those other details. Bird: The carry over shouldn't be taken out as an expenditure twice. Anderson: Do we need to trim $6.7 million out of that or do you want to fund that from Fund Balance? We need to get something resolved on this budget before the 15th of this month. What do we want to do? Bird: I think we need to go back and trim so that is not logically going to get done. I would suggest that we send it back to Gary and his expenditures and tell us what exactly can get done in the next fiscal year in all reality. I wonder how much out of this $14 million budget last year will we not spend this year. I think we need to be realistic of what can be done and paid for or at least started next year in their projects. If they can't start them and get them done, why fund them. Anderson: If we go ahead and fund them, really all we are doing is really on paper giving them the authority that if by chance if everything did fall in place, they could fund every one of those projects and complete them. I guess our track history tells us that in reality that will not happen, maybe they will complete 7five percent of them. If we reduce the budget where we limit it to those projects, then there is always the excuse that we didn't get those done because you cut the budget. In this case, there's no harm or foul, if they don't complete the projects, the money is still there in the Enterprise Fund to go back in the Fund Balance to be used to fund the projects anyway. Bird: If we get these other things in place, they are going to fund a lot of this. Every building permit we are losing out on every entity is getting because we haven't got it in place. What are dealing with, $6.626 million? Anderson: If this revenue is right, you would have to take $6,672,309 out of the Fund Balance to make up the difference. Bird: I have no problem with it. Anderson: We just have to be careful to only fund projects and make sure they are done with the right funds. Bird: If we get these couple of items in place with our City Ordinance and building permits and stuff, we could override these costs. If that's okay, we could get that printed out. Anderson: We are using them for what they were intended for. Bird: Janice, will you get this Enterprise Fund put together like it is. Smith: You went will all of B on Waste Water. Anderson: P & Z and building. Bird: I move that we take a break. Corrie: Let's take a break and come back. We got a $30,000 fee for a bus. deWeerd: And the senior center. (Meeting reconvened) Bird: Planning & Zoning. deWeerd: They haven't done the adjustment for the rates comparisons. Bird: That is probably true, Tammy. That was one department we have real problems. deWeerd: In talking with Shari, she is requesting a nine percent to bring staff comparable to Steve. We would like to have a little more that sets them apart. Brad will be the Assistant P & Z Director. Bird: Can we have an assistant by name or do we have to put that in the ordinance? deWeerd: Yes. It would have to be reflected in this budget. Bird: Isn't she already putting up $400 over him now a year? If you want to retain somebody with his caliber, you would have to pay that. deWeerd: How does that work out? Steve is making more a month. Bird: He is until October 1st. Now look at October 1st. Brad starts making $102 more a month. deWeerd: Steve gets his anniversary increase in January. Bird: Then he goes back ahead. The actual increase for the year is higher $256 against $116 because Steve's doesn't start until January. deWeerd: There still should be a wage difference. Bird: How much do you think? deWeerd: I think he should be making $50 or $100 more a month than Steve if he is going to assume those responsibilities. Bird: So you are saying in October, he should go to about $3,150? That would be $47 a month more than Steve when he gets his increase. Corrie: Is Steve before Brad? deWeerd: No. They raised the wages, but Brad was hired at a lower salary. Bird: We implemented an IEC thing in after Brad was hired. deWeerd: So we go to $3,150 for Brad? Corrie: It would be $37,800 for the wages for the year. Bird: You want to take that $3,093 to $3,150, Tammy? deWeerd: It's not a huge separation but it's something. Bird: We need to reflect that on the green sheets in the Administration in wages. Was Shari pretty certain she could pick up a planner for the $2,583? deWeerd: That's a planner one. She has a vacancy where Christie Richardson is. That is a vacancy there. Bird: What the high, Ron? Anderson: $42,000. Bird: This is for the planner? What's the starting? Anderson: $32,000. Bird: We are $700 under that. deWeerd: She made $8,000 more a year going back to ACHD. Bird: I'm not to sure that we might not need to look at Brad's, vacancy and Steve's wages a little closer. All three of them. Anderson: Again, other than us trying to figure out all the individual salaries, I think our HR person and IEC look at the positions and see where we are at in the market survey and then make some recommendations as far as what we need to do to bring out people up to the market level. We put a dollar figure in there that would cover those costs. The only question I have, since this is separate, is it funded from General? Bird: Yes. They are to raise their revenues, we still have to fund them out. deWeerd: How does the money not expended doesn't go into the General Fund? Smith: It goes into Capital Improvements Fund. Bird: If they have a bad year, we have to have four months in the Fund Balance. I think we need to set a figure that will cover after HR looks at that with IEC. I don't want to pay outrageous, but I want to be able to compete and keep the ones we get. P & Z is a very important department. How much should we throw in there? Anderson: Based off some rough numbers, the administrator would be at $46,000 starting salary. I would say looking for an assistant would be around $44,000 a year range and as a starting. If you look at the difference we are paying now and that, you would have to figure an additional $10,000. Bird: I don't think that new position will be at that price. Don't you think we should put in at least $20,000? Anderson: You would be safe at $20,000. Bird: Until Pauline could get back with us on what it would be. We need to add $20,000. If we took request C, $20,000 would be plenty. We are picking up $3,719 there. If we made that $311,925 on request C for wages. Anderson: Can't we just have a round number like $300,000? Bird: Put $311,000. Corrie: Expenditures are going to exceed your revenue. deWeerd: She also has to do the new fee structure. Anderson: So $311,000 on salary and benefits, what about on operating costs? Bird: They are all the same. Stay with C all the way down. The capital outlay, Tammy, is that for the new office area? Anderson: $20,000 is for used computer desk, vehicles, etc. $24,000 for building lease. Bird: She is going to pay more and need a lot more square footage, too. In other words, we are going up to $617,525. deWeerd: P & Z training, Christmas dinner, turkey. Bird: $2,500 for Council Liaison. deWeerd: It's for our Commission, not the Council. Bird: $617,525. deWeerd: I got $616,600. Anderson: That's the same thing I got. Bird: 311 and 285 and 20 comes to $616,600. Building. Smith: When you do adjust those wages, it does affect the PERSI, workmen's comp and insurance. Do you want to adjust it in the wages? Bird: We are going to have to adjust the benefits too. Anderson: On P & Z. We tried to allow for a little cushion there that we weren't -- So you just put the right numbers on the benefits. Bird: You will have to get with Pauline and kind of find out what she thinks we need to be at so we are not losing people. deWeerd: The other one that is secretary there, Sonya, her position is also on this salary survey as one that needs attention. Bird: On the Building Department, building inspections is a percent of the permits we have. It can go up or down. Now that Gary is going to Public Works, maybe we can implement our own people on line next year. There's pros and cons with this. deWeerd: Our fee structure to be at least proposed for public hearing by the time this new budget year comes up. Does that seem like a reasonable time frame, Bill? Nichols: I think it's not a simple process to do this kind of cost accounting. You've got to look at, for example, subdivision application, water all the steps and how it's the average number of hours. I'm wondering if GunStream did that or if Norm did it? Anderson: Both the department heads and P & Z and the building department were involved in researching those costs involved in that. Nichols: I'm wondering if what they did, if that couldn't be the framework, it would at least be a punch list you go through that would make it easier here to get started and where to start. Shari could talk to Norm and Gary could talk to Paul or whoever was doing that part of it. deWeerd: Didn't she have suggestions that she's already put together? Janice isn't that what she submitted with her budget? Smith: No she didn't. She didn't have anything with her budget. We could always make it an amendment in August for the excess revenue. P & Z and Building never go over their expenses exceeding their revenue. Bird: That's true. We've got to be prepared when we have several slow months. If we could get Nampa's formula how they did it, just a check off list, that would help. Smith: Water hasn't increased in a while too. Bird: All these rates need to be addressed on a yearly basis. It's easy to get a 2 or three percent increase, but now to get up to our costs, we are going to have to have enormous increases. By the start of this fiscal year, we need to have these in. Nichols: Even though the revenue may exceed the expenditures, you have to look real hard at how many people are putting in way more than eight hours in a day, how many applications are not getting as many hours put in on them. You can't put more people on it unless you have the revenue to be able to do that. Because of the current staffing level, the revenue exceeds expenditures does not necessarily mean that your fees are where they should be given what is a proper amount of time to process an application and proper number of person hours to put into it. deWeerd: I think we need to see if we can have our department heads maybe report to us at our first September meeting and have them use August to research, maybe contact Nampa, and find out the steps they need to take and give us a better idea of how long this process will take. At least set a time when they report to us on what needs to be done so we know something's being done. Do you think that Shari and Gary could report to us on Pre-Council on that issue? Corrie: What do you want them to report? Bird: If we are going to make that October 1st, we need to schedule some public hearings by September. Nichols: Yes and no. You can have an ordinance, but we've got to make sure we've got the right one and it's carefully drafted. I think what you are asking that the process be started. This can't be something slapped together. It needs to be carefully done. Shari can say here's the process on this type of application, these are all the reviews it goes through, and adequate review is so many hours by this person, etc. You have to have the facts in the public record at the public hearing that sets out how those fees are generated. The contractors were upset in Nampa over the proposed fees and the Council gave them time to look into the fees that were being proposed and they came back and said you are right. Your numbers are indisputable but we would like additional time to implement this. When it came down to facts, all the numbers were there, and nobody challenged it. I think we want them to tell us where they are in the process in September. deWeerd: Give us a time frame of what it's going to take. Bird: Boise's is a good sewer deal. It is being challenged and I think it's been challenged before. I think we need to look at both of them to give us a framework to work within. deWeerd: If they could just report to us, give us an overview, a time frame, at least we know where they are going to be at in the process. My second request be that in February we made a request on this park impact fee. I think a committees been recommended, I don't know if they've ever met, they have got to meet and evaluate it and get our request into the county to start collecting that. We need to recommend an increase. If we can get a report on that as well on September 5th, we just need to get something going. Bird: The wages are the same on all requests, very little wages here and I don't see any problem with them being under, do you? deWeerd: Why are they under? Why is there a change in wages? Smith: He always had too much in there. We told him to be realistic. Anderson: Under building structures, he's got one that is $60,000 and the others are $42,000 under the A request versus B and C. Is that the move? Bird: With the new move it is $60,000. A covers this new lease. Corrie: One was going to pay the lease. Nahas was not going to pay the difference but Benoit would pay the difference. Anderson: Which one do we need to go with? A. Bird: A to protect us. Capital outlay would be the new furniture. Anderson: What is the capital improvement fund transfer? Smith: It's any excess revenue that goes into this capital improvement fund. It offsets any revenue left over the expenses. It would changes after Shari's adjustment. Anderson: It's an expense? Smith: You have to account for it somewhere. You have to balance. Bird: Other questions? Anderson: That budget would be straight down A. Bird: A, $890,898. deWeerd: Does he have in here, he has budgeted the promotions and anticipated increases? Smith: He does, not very much though. HR didn't feel that clerical was going to change. Bird: Any other questions? We've still got Parks, Fire, Police, HR, Administration, Finance, Mayor, Council. We get that next Wednesday. Do you want to start again at 5:30 p.m.? Works for me. August 9th, 5:30 p.m. and August 10th if we need it. Is there any other fees that we should address on a yearly basis? Bird: I move that we adjourn. deWeerd: Second. Corrie: Motion has been made and seconded to adjourn, all those in favor say aye. MOTION CARRIED: ALL AYES Corrie: Adjourned at 9:45 p.m. MEETING ADJOURNED AT 9:45 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVE: ____________________________ ROBERT D. CORRIE, MAYOR ATTEST: _______________________________ WILLIAM G. BERG, JR., CITY CLERK