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HomeMy WebLinkAbout2000 08-22 JointMeridian City Council Workshop August 22, 2000 The City Council workshop of the Meridian City Council in conjunction with Rural Fire Commission was called to order at 6:00 p.m. on Tuesday, August 22, 2000, by Mayor Robert D. Corrie. Members Present: Robert Corrie, Keith Bird, Tammy deWeerd, Cheri McCandless. Others Present: Will Berg, Mike Ingram, Steve Bravo, Debi Drake, Janice Smith. Corrie: We are opening this meeting to discuss budget items. We have one absent Council Member, Cheri McCandless. Bravo: Special Joint Session with City of Meridian and the Meridian Rural Fire Protection District. All Commissioners present. The purpose of this is for a special budget meeting with the City. Ingram: We've kind of had some problems with communication and timelines this year. This should have taken place over a month ago. We wanted to have a meeting with the City to see how we are doing, where we are going, and what the City's plans are for the future. Without having any input from the City as far as a long range plan, I've developed an initial plan that the Commissioners have agreed to adopt that will take us up through the 2009-2010 Budget. Having made that commitment on our part, we'd kind of like to see what the City's commitments would be in the future. Beginning with this year's fiscal budget, we are trying to establish a ten year plan. deWeerd: That's very admirable. I guess my hope is when they hire a Finance Director, that we can start doing some budget projections. Ingram: Two years ago, we had an election to raise our levy and that took us away from bankruptcy. We are trying to stay in the game as long as we can, realizing that the City is growing and taking our area and our taxable revenue away from us. We'd like to keep that going and establish something that will continue beyond my term between us and the City. Bravo: We can start implementing the assessment report. We thought we would get this ready to try and implement it. Ingram: This is what I presented to my Commissioners beginning with Fiscal Budget 2000-2001, the Meridian Rural Fire Protection District is establishing a ten year plan. Like most businesses today, the District must try to anticipate the needs of it's patrons well into the future. By establishing this ten year plan, the District will be able to anticipate the funds necessary for replacement of apparatus and the addition of two fire stations. Listed below are the anticipated needs of the District over the next ten years. An annual review of this plan will be necessary as the needs of the District will most certainly change over time. I have basically just amortized out starting in the 2001, putting away $181,000 and then when we buy them, then that much goes away. deWeerd: Mike, do you want Janice to make copies of that? Ingram: This year the budget, I know you guys have been in kind a mess, it didn't seem to go as well this year as it has in the past. Information was not timely in getting to us or back, it was kind of hard to do our end of the budget. I got the last change here about a week ago and I incorporated those figures into our budget as best as I could. Our's has been published now. We've got our hearing on the 30th. As far as our budget figure, we are playing with what we've got. Corrie: How does it compare to what the $164,000 we gave you? Bravo: These figures are prior to the last one on the C portion a few days ago. We got the word last Thursday. This doesn't include that. Everything comes together in a very short time frame and the last month before your budgets are. We are still going through the trimming process when you are publishing your budget. Ingram: Some of this is carry over funds for us. We don't have a General Fund that it goes back. We can just reallocate it to next year. We are in the process of a new station and fire engine for us. Some of these numbers will probably seem inflated as they are carry over funds. Our budget for next year is going to be $1,299,161,019 and that includes $265,000 for the truck carry over fund and some other carry over funds. Anderson: How much do you show for the City of Meridian? Ingram: I don't have that broken out that far. Bravo: We don't know how to do that under the situation. We've got so much carry over and we are working five months without knowing what the rest of the year is going to cost us. We are trying to guess-timate so we can publish. This just shows our total that we figure we have. We have just taken the percentage that you have come up and I think that is why we are here mainly to make sure we agree on this year. Anderson: I have been looking at those numbers and I'm not disputing your numbers but I'm not sure where you are getting them from. This was the latest I got for 2000 where you had talked about the split was going to be 24.14 for the Rural and 75.86 for the City of Meridian. I checked the numbers on the population which these assessed value numbers that I can't find the numbers you came up with, $504,000. I have these from Ada County and it shows $490,300 for you guys and $1.4 for us. Ingram: I took these from the City's value. Off the sheet that we get from Navarro's office is where I took the figures for the rural. Anderson: The only thing that I can figure is that the number that is close to what you have on this $1.866 billion, is $1.837 billion and that is full market value and then on yours, you are using taxable value which makes a big discrepancy in that formula. Ingram: Our's said market value to market value. Anderson: First one's rural and the second one's City. The one is after all the exemptions. Bravo: I had another sheet but I think it's in the other file. They give us two. Anderson: They give you one in late June or early July which is an estimate, and then they give you another one at the end of July that's an estimate that is more firm. Ingram: This was from the first one we received. Anderson: Even if we use the early one, it still appears that you are using net value for your's and market for our's. (inaudible discussion amongst meeting attendees) Anderson: I'm not disputing your numbers because that's probably what you got. If we use these multi-current ones that Kenny got, I think that's more realistic. That's $493 million versus $1.428 billion. These would be the most accurate values that we have. Ingram: That's part of the problem, Ron, we couldn't get together before now to talk about this. Bravo: Could we decide on what numbers we are going to use so we can re-run our numbers? Or we could sit here all night without the proper information and go round and round. (inaudible discussion amongst meeting attendees) Ingram: Part of it on our bottom line isn't going to change. Anderson: It will only change this percentage. Drake: Why can't we use the August 11th numbers? Do you want to double check to make sure everyone gets the same thing? (inaudible discussion amongst meeting attendees) Drake: Let's use that one. Use your calculator, Ron and see if you get the same percentage Mike has. (inaudible discussion amongst meeting attendees) Ingram: Do you want me to re-calculate this? Anderson: Since we were using a different printout for you guys versus what we had, we had different figures. (inaudible discussion amongst meeting attendees) Bravo: We will keep a copy of this document for next year so we know exactly what numbers we are looking at. (inaudible discussion amongst meeting attendees) Anderson: The number's don't change, so don't kill yourself over it. We can tell them that there may be slight changes internally. (inaudible discussion amongst meeting attendees) Drake: 26 and 74. Corrie: So what was the number, Ron? Bird: 74 for us and 26 for Rural. Anderson: The other comment I want to make is I think this strategic planning that you guys use is a good process in having a ten year plan. Since all the major capital items as far as fire trucks and fire stations should be a joint decision between the Rural Commissioners and the City Council. I would suggest, maybe not right now, because of we are in the middle of the budget. Maybe this fall or winter, have a series of meetings between the Rural and the City and have you go more in detail into what you are looking at. (inaudible discussion amongst meeting attendees) Anderson: I entertain a motion to go into an Executive Session to discuss personnel issues. Bravo: On behalf of Rural, I make a motion to go into Executive Session. Drake: Second. Ingram: It has been moved and seconded, is there any discussion on the motion? Hearing none, all those in favor say aye. MOTION CARRIED: ALL AYES Bird: Mr. Mayor, I move that we go into Executive Session with Rural Fire District. Anderson: Second. Corrie: Motion made and seconded, any further discussion? Hearing none, all those in favor, say aye. MOTION CARRIED: ALL AYES Ingram: We are out of Executive Session at 6:38 p.m. and we will continue the meeting. No decisions were made. Bird: Mr. Mayor, I move that we come out of Executive Session. McCandless: Second. Corrie: Motion made and seconded to come out of Executive Session. All those in favor, say aye. MOTION CARRIED: ALL AYES (inaudible discussion amongst meeting attendees) deWeerd: Mr. Mayor, I would like to move that we close the Special Meeting with the Rural County Fire Commissioners. Bird: Second. Corrie: Motion made and seconded. All those in favor, say aye. MOTION CARRIED: ALL AYES Ingram: We are out of the joint meeting with the City. Our accountant, Glen Olsen is here to hopefully explain our financial statement for the year ending December 31, 1999. Olsen: The table of contents basically explains what is in it. You have an Auditor's report, which is my letter to the board that says that we have audited and we have done it in the way auditors do the audit. There's a general note. In the last couple of years, the accounting world has completely revamped and this affects you. We have completely revamped the standards and the allocations and a lot of things that mechanically are in the audit. It used to be that all you had to do is account for the ins and outs and now they make the governments do it much more like businesses do. So we will walk through that. The first real page is the Balance Sheet. Drake: On the third paragraph, therefore we are unable to (inaudible discussion amongst meeting attendees). Olsen: Almost every government that has switched over to the new standards will have the same note. Next year that won't appear. What we have is the Governmental Fund, which is the General Fund, which we have divided into fixed assets and then it is just divided up. Mainly what you have is you have so much cash in the bank, some interest receivable and some taxes that belong to that fiscal year that has not been disbursed by that County yet that are due. We have accounts payable, some interest that is due on that. What this first page is, is if you took a snapshot as of December 31, 1999, what is it that is owned and what is owed. Part of that fund balance is designated for next year. Now in contrast, the second page, the Revenue and Expenses. During the year, we have this much come in and this much go out and it went out in these categories. So, this one is meaningful, but it is more meaningful if it's looked at on the next page, which gives you a Budget Actual Comparison, meaning in the approved budget, there was so much that was going to come in and this is what really came in. Of the expenditures as they were budgeted, and then as they actually went out. This basically gives the board a snapshot of this is what we thought would happen, this is what really happened and the difference. It lays out there the differences between the budget and actual. Ingram: So we actually showed them that we had a $131,549.76 over and above what we thought. Olsen: Actually it's the $71,000. The total revenue was going to be $230,000, total revenue actually was $266,000. So you were over budget in income by $36,000. Then shift down to expenditures, you were planning on spending out $280,000, you spent out only $240,000 which means you were ahead of the game on the expense side by $35,000. Ingram: Plus that other $36,000, we get $71,992. Olsen: Right. What the Fund Balance is, that's what was in the till the year before. It was budgeted at $50,000, but actually if you take all your assets, it was $109,000. So you actually had more to start with than what was budgeted. That's not a big deal, because $50,000 is your bench mark that is your cushion in the Fund Balance. So at the end of the year, your Fund Balance was $131,000 which is the same number that is on the Balance Sheet. Then the next page on out, is just notes. Basically this is text and a lot of this will be the same. This won't change from year to year. It explains what the accounting basis is, what the account groups are. This is just text of the prior pages. On the Budgetary Data, Item 3, where did you get the budget from? The budget is legal enacted and it goes through the Code and explains the budget procedure. Basically, this is more a further explanation of individual items on the three previous pages. On Note C, it explains how tax receivables work. Mainly this is a text explanation of everything that is in there and just gives more detail. Everything refers back to the prior three pages. On item you might want to be aware of, just above Note C, what this is is this is the cash balance and it says, you only have so much FDIC insurance on the cash in the bank. So it is standard practice for the accounts to document. It is something explained in the notes. Then, not all of the notes have something on it. These notes can be adjusted. There is something the board wants to put in here, they are certainly to do it. This is the bare boned minimum that we will have to put in. Ingram: In case Steve hasn't let you know, we operate on the KISS method. Olsen: That is a good method of accounting. Ingram: We are fine with the KISS method and it gets way too complicated and I don't know how the City does it. Olsen: You can generate and work off your own reports. But for public disclosure, this is what has to be done. Ingram: Once this is finalized, do you send this in to the Assessor's Office? Olsen: Yes. I'll give it to you with an envelope and you actually send it in. (inaudible discussion amongst meeting attendees) Ingram: We are new to this too. Drake: Any suggestions for what we should do in the future? Olsen: I will have the, really the thing you have to be concerned about as the board, that you have control. What comes in is easily audited. The county assesses and so there's not really much there. As long as the board approves and disburses the expenses in the manner that you do, I really don't see how you would have a major problem. Ingram: Everything's on public record, we always make sure. Any time a check is written, it's approved and I have to sign it. Olsen: Really that one control will save you more headaches than anything else. Ingram: The other thing that I do too, is when we get revenues from the County, they are sent to me and then I also keep track of them as they come in before I give them to Steve. The County keeps, the can give you exactly the printout. Olsen: As part of the audit, I have to request from the printout that gives me all of that. (inaudible discussion amongst meeting attendees) Ingram: Still we double check ourselves just to make sure. Olsen: From the control standpoint, I really think that as long as those are in place, I don't think you really have much problem. (inaudible discussion amongst meeting attendees) Ingram: Have you seen the City's budget? The way they line item things out. Is that format helpful to you? Olsen: The format that you had on your budget. Ingram: We just bought a new computer for the District and we are trying to bring ourselves into the 21st century. I have asked from the City to see if we can get that same accounting software and use it. It aids us in developing our budget, since we are two entities operating jointly, transferring data is a nightmare. I end up hand entering everything. I want to try and get the same format so we can plug in the disks and say here's our numbers, print it out in the same format, same everything, set up those on individual accounts for Steve. So he can keep us abreast almost up to the minute, of where our accounts status is, so we are not flying blind on our next budget. Right now it is just guess work. We understand there still will be some guess work, because of the fiscal budget. But we want to start narrowing that down, because our budget will start getting tighter over time as the City takes more of our taxable property and our population diminishes. It's going to become more critical that we, plus we have adopted a ten year plan, to put funds away for the fire engines and the new fire stations. So we have to put that away over a long period of time were as the City, out of their General Fund, can say we want to build a new fire station this year, here's your check. We can't do that. Olsen: There certainly is no reason why you can't go that route. Ingram: We are trying to make everything simple for as many people as possible. Steve and my term is up next year. I don't know if I'm going to run again or not. I'd like to be able to transfer this to the new people. I don't want to dump something in somebody's lap if I don't have to. Olsen: The other thing too, with the audit level, at least you would have this and much of my fault in the delay of this, was from my side. Hopefully by now you would have had this so you could plug this into your system and already have everything. Ingram: We are trying to get all these processes in place so that down the road, so that budget time, this ten year plan, if it's not written down, the people that come in and take our place, they can say why is there all this extra money in the budget. Let's spend it. There's wouldn't be any money left to get the new station. Olsen: I think you, by using this and having the current information by going with the new software, would make it easier. Ingram: That's where we are trying to head. (inaudible discussion amongst meeting attendees) Olsen: There may be some changes in this, because I have not put this in final form. I've got some other review processes to go through. For the most part, it's not going to change very much. Ingram: Generally speaking, we're in accordance with all legal things. Drake: When will we get the final? Olsen: You'll have it by the end of the month. Drake: Okay, great. Olsen: I would have had this done long time ago. We went under a computer conversion, I've been basically shut down for about two months myself. Ingram: Next spring it will be. Olsen: It will be done promptly. That won't be near the problem I had this year. So that you know, I bid it high so I could do that. I will only bid, it will cost less, after getting over this first initial hump. I don't mean to drain your budget by my fee and so it will come down. Other than that, I think it will work out just fine. Ingram: Just wanted to make sure we were flying right. Olsen: This document will satisfy the statute. Ingram: Anything else? Just for the record, Steve Bravo has not been in attendance during this portion of the meeting. He had another meeting he had to attend. Commissioner Drake and myself have been in attendance. With that, we are through with the business of the accountant, a final copy will be filed with the County Assessor's Office, should be in our hands by the end of the month. Drake: I make a motion to adjourn. Ingram: I will second it. Is there any discussion on the motion? Hearing none, all those in favor say aye. MOTION CARRIED: ALL AYES Ingram: Adjourned at 7:10 p.m. MEETING ADJOURNED AT 7:10 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVE: ____________________________ ROBERT D. CORRIE, MAYOR APPROVE: ____________________________ MIKE INGRAM, CHAIRMAN ATTEST: _______________________________ WILLIAM G. BERG, JR., CITY CLERK