HomeMy WebLinkAboutCity Council Committees - Operations - 08/05/2008
OPERATIONS COMMITTEE MINUTES
AUGUST 5, 2008
Committee Members Present: Ron Harmon, Tim Clark, and Les Thomas
The meeting was called to order by Tim Clark at 4:04 p.m.
1. APPROVAL OF MINUTES DATED JULY 15, 2008
Thomas moved to approve the minutes of the July 15, 2008, Operation
Committee meeting. Harmon seconded the motion, which passed 3-0.
2. APPROVAL OF VOUCHERS DATED JULY 15, 2008 AND JULY 31, 2008
Finance Director Bob Nachlinger presented the vouchers for July 15, 2008, and July 31,
2008 for approval.
Thomas moved to approve the vouchers dated July 15, 2008 and July 31, 2008.
Harmon seconded the motion, which passed 3-0.
3. APPROVAL OF THE ISSUANCE OF $24 MILLION IN LTGO BONDS
Finance Director Bob Nachlinger presented the memo for approval of the issuance of $24
million in LTGO bonds. Nachlinger advised that the City’s authorized 2008 budget
contains the plan to issue $20 million in LTGO debt for the East Hill Shops, the
Technology Plan and Downtown Sidewalks. Other projects have surfaced and need
funding during this year. Nachlinger noted that in an effort to be conservative in the
amount of the total increase requested, a reduction was made to the original request
amounts needed for the next two years on the planned projects. The completion of the
Events Center and the required renovations to the Municipal Court, with the reduction in
the existing projects result in a request for the $24 million. Concerns were raised
regarding the need of additional funding of capital projects. Chief Administrative Officer
John Hodgson noted that the Long Term Capital 20 Year Plan will be presented at the
August 19, 2008 City Council Workshop. Deputy Public Works Director Tim Laporte
addressed Levee replacement concerns. The City is working funding issues with
Lobbyist. Questions were raised regarding certification from FEMA and whether it
requires a 100% replacement, or if the project can be split into 2 segments over the
next 10 years. Nachlinger further advised that the 2008 budget impact of these bonds
will result in interest payments of approximately $330,000. The total cost of these
bonds over their 18 year life is anticipated to be $36.97 million, consisting of the $24
million in principal and $12.97 million in interest. Questions were raised by the
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Operations Committee Minutes
August 5, 2008
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committee which both Nachlinger and Hodgson responded to. Clark opposed and stated
that he feels we are putting the cart before the horse in terms of reaching back on the
Kent Events Center and going beyond the contingency funding to basically try and deal
with some of the issues. Clark also noted that he has a problem with the uncertainty of
some of the other capital needs we have. Another issue is the uncertainty in terms of
the funding of the levee. Harmon stated it is imperative that we go ahead and finish the
Kent Events Center and that we finish it in a first class manner to be able to go ahead
and derive the maximum amount of revenue for our investment, so he supports the
motion.
Thomas moved to recommend that the City Council authorize the issuance of
$24 million in Limited Tax General Obligation Bonds. Harmon seconded the
motion, which passed 2-1. Clark opposed.
4. CONSOLIDATING BUDGET ADJUSTMENT ORDINANCE FOR ADJUSTMENTS
BETWEEN JANUARY 1, 2008 AND JUNE 30, 2008
Finance Director Bob Nachlinger presented the Consolidating Budget Adjustment
Ordinance for Adjustments Between January 1, 2008 and June 30, 2008. Nachlinger
advised that authorization is requested to approve the technical gross budget
adjustment ordinance totaling $12,213,824 for budget adjustments made between
January 1, 2008 and June 30, 2008. The net amount, excluding transfers and internal
service charges, is $12,143,324. Please note that $11,236,463 was previously approved
by Council. These were primarily for projects. The revenues budget will increase by
$12,428,970 or $215,146 more than the adjustment to the expenditure budget. The
budget impact is $977,361. The net amount of $977,361 not yet approved by Council,
is for the allocation of dedicated revenues and authorizing expenditures. The most
significant change is $250,000 for increased fuel costs. Questions were raised by the
Committee which Nachlinger responded to.
Thomas moved to recommend Council approve the consolidating budget
adjustment ordinance for adjustments made between January 1, 2008 and
June 30, 2008 totaling $12,213,824. Harmon seconded the motion, which
passed 3-0.
4. 2ND QUARTER 2008 FINANCIAL SUMMARY
Finance Director Robert Nachlinger presented a brief review of the 2nd Quarter 2008
Financial Summary Report for informational purposes only.
The meeting adjourned at 4:47 p.m.
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