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HomeMy WebLinkAboutCity Council Committees - Operations - 09/28/1992 �� • City Clerk CITY COUNCIL BUDGET COMMITTEE SEPTEMBER 28, 1992, 4:00 p.m. PRESENT: Jon Johnson, Chair, Leona Orr, Jim White, Norm Angelo, Roger Lubovich, Tony McCarthy, Alana Mclalwain, May Miller. Committee Chair Jon Johnson opened the meeting noting that this was an organizational meeting to determine the role of the Committee, future meeting times, etc. It was decided to meet the first and third Monday at 4:00 p.m. It was determined that the Committee would hear items that were unbudgeted, have a long-term budget impact, budget preparation,and hear reports from the Management Study Committee. Alana Mclalwaln asked if an unbudgeted litigation settlement would come to the Committee. McCarthy suggested that after the City Council decided to pay a settlement a determination could be made by the Budget Committee as to where the expense would be charged. Budget preparation was discussed. it was noted that having a Committee to look at the broader picture rather than individual departments would be beneficial with input from the departments. The Committee agreed to review the Mayor's budget and report back to the full Council and the Mayor with recommendations. It was clarified that items would first go to departmental committees and if there is an unbudgeted, or long-term impact,the item would be sent to the Budget Committee with the first committee's recommendation. It was agreed that during the budget process additional meetings may be called as needed. August Financial Report McCarthy reviewed the August financial report with the Committee. He noted that the same cash trend continues. The year should end with a$2.4 million balance but in actual practice the City has a negative cash flow at various times throughout the year if we do not have a $3 million cash reserve. McCarthy reviewed the fund balances with the Committee. McCarthy pointed out the summary of investments the City has noting that the City maintains a diversity of investments with the majority in safekeeping at U.S. Bank. Johnson asked how we determine who we Invest with. McCarthy stated that when it is decided to make an investment Finance calls three or four different firms to see what they have with a maturity date the City determines and reviews the proposals and makes an investment decision. At this time there is a large overnight investment, due to it being the best interest rate available for short term investments. The revenue graph for August shows the City right on budget. Expenditures are running 98.6%, if that holds through year end It would be a savings of $444,511. The picture may improve as the savings from layoffs begin to show which may be offset by the Chow settlement. Property taxes are higher due to the late reporting of the levy rate by the County. Sales tax numbers for September are up a little higher. Utility taxes are lower but picking up. Building permits are close to right on budget. Recreation fees are right on budget. Fines and forfeitures are ahead of budget. Water revenue and sewer and drainage are low. Golf revenues are ahead of budget but expenses are further ahead of budget. The General Fund summary page shows an out of budget position of$1,766,854. 0 0 CITY COUNCIL BUDGET COMMITTEE MINUTES SEPTEMBER 28, 1992, Coat. 1993 Budget Balancing Proposal McCarthy presented the revised summary of balancing proposals. McCarthy noted the revised recommendation incorporated all of the proposals to date. The Mayor proposed eliminating Cityline and reducing printing and graphics by 10%. A public information committee has been formed to look at ways of combining publications and reducing duplication. The Street Overlay Program is not cut. Reduction of equipment rental by 20 vehicles and 20% rate reductions. Increase of 20% on City Recreation fees with a 10% gift certificate at the end of the year to city residents. COLA adjustment 1.8% assumption, eliminate dependant coverage for part-time employees. Elimination of Park Security Program as concurred by the Parks Committee. One time savings proposals would be added to the contingency fund. Committee member White noted his concern that it is assumed the economy will Improve. McCarthy responded that the revenue forecast shows property taxes growing, sales tax is estimated to grow by 1.6%, utility tax growing over 1992 with more normal weather, other taxes the same as this year. Licenses and permits shows the increase costs of the business license fee. Proposed increases are reflected in the charges for services,interest and miscellaneous income figures are conservative. The hiring freeze is still in place which will bring additional savings. The City is looking at reducing the amount of administrative positions as opposed to program people. White noted that cross training should be looked at as an option. He also noted concern over the cost of living figure being unrealistic. McCarthy noted that Renton is putting in zero. As an option, some CIP money could be reserved to cover any additional COLA's. Johnson noted that the gap is closing and we should continue to cut the expenditures. McCarthy noted that the gap has been closed by 2 million and is getting closer to being balanced. White stated that the people In Community Events should be moved Into other vacancies as they become available. The Lion's Club has a history of running the Cornucopia Days and could handle this function. McCarthy replied that there are a lot of other things that this function handles. White questioned why a position is necessary to handle parks project dedications and planning projects. Johnson noted that he had questioned the need for Public Information Officers. A discussion followed of the need to consolidate services and move people Into other positions if a position is eliminated. Orr mentioned a number of outside influences that may have an impact on the City of Kent such as Boeing's move of 6,500 people to Everett and the closing of Longacres. McCarthy replied that some tough decisions will have to be made in order to avoid layoffs. After a discussion of cross training people, the meeting was adjourned.