HomeMy WebLinkAboutCity Council Committees - Operations - 06/21/2011
OPERATIONS COMMITTEE MINUTES
June 21, 2011
Committee Members Present: Debbie Raplee, Jamie Perry, Les Thomas (Chair)
The meeting was called to order by L Thomas at 4:05 p.m.
1. APPROVAL OF MINUTES DATED JUNE 7, 2011
D Raplee moved to approve the Operations Committee minutes dated
June 7, 2011. J Perry seconded the motion, which passed 3-0.
2. APPROVAL OF VOUCHERS DATED JUNE 15, 2011.
J Perry moved to approve the vouchers dated June 15, 2011. D Raplee seconded
the motion, which passed 3-0.
3. BUDGET UPDATE DISCUSSION (INFORMATIONAL ONLY)
The budget update was requested by Councilmember and Public Safety Chair, Ron Harmon.
Finance Director R Nachlinger and Chief Administrative Officer, John Hodgson provided an
update by first summarizing the different special funds, addressing those that there are
concerns about then answering any questions.
Nachlinger started by noting there are 26 different funds in the city as follows.
General Fund
General Fund - Used to account for the general operations of the city
Annexation Fund - Used to account for the general operations related to the Panther Lake annexation.
This fund is a subset of the General Fund, having to keep it separate for ten years to keep the
funding.
Special Revenue Funds. Restricted by state or federal law or city ordinance.
Street Fund - Funding from Gasoline Tax and one-sixth of Utility Tax
Public Safety Retiree's Fund - Used to account for the medical cost of PERS 1 retirees
Lodging Tax Fund - Accounts for the 1% bed tax that goes to the City
Youth/Teen Fund - Used for youth and teen activities from 5% of Utility Tax
Criminal Justice Fund - Used to account for the State Shared revenues that go to public safety activities
Environmental Fund - Used to account for environmental activities related to sanitation
Housing and Community Development Fund - Used to account for federal Community Development Block
Grant activities
Operating Grants & Projects Fund - Used to account for funds set aside for special projects
Kent Events Center Fund - Used to account for the operations of the event center
Debt Service Funds
Voted Debt Service Fund - Used to account for voter approved bond issues
Non-Voted Debt Service Fund - used to account for LTGO bonds issued by the City
Special Assessment Debt Service Fund - Used to account for LID bonds issued by the City
Operations Committee Minutes
June 21, 2011
Page: 2
Capital Projects Funds
Street Capital Projects Fund - Funded from transfers from the street fund
Parks Capital Projects Fund - Funding from transfers from other capital and second .25% of REET
Facilities Capital Projects Fund - Used to account for projects related to city buildings
Technology Capital Projects Fund - Used to account for technology related capital projects
Other Capital Projects Fund - Funding from 25% of sales tax and .25% REET.
Major funding source for other capital funds
Enterprise Funds
Water Fund - Used to account for the operations of water service
Sewerage Fund - Used to account for the operations of sewer and drainage service
Golf Fund - Used to account for the operations of the golf complex
Internal Service Funds
Equipment Rental Fund - Used to account for the fleet operations of the city
Central Services Fund - Used to account for the technical information, office supplies, and copiers
operations
Facilities Fund - Used to account for operations of city buildings
Insurance Funds - Used to account for the insurance activities of the city. Six or seven separate funds
Hodgson discussed the areas there are concerns about. The one that came up at the Public
Safety Committee was Crimi nal Justice. It is funded through state shared revenues and a
percentage of sales tax that is returned to the city. It funds some police officers, all
prosecutors and a domestic violence advocate. Eleven percent is required to fund domestic
violence services and the city applies it toward our coordinator position. State revenue is
down so there is less money coming to the city. Some loss includes the High Crime City Funds
in the amount of $230k. Because of our effective police service, we are no longer eligible.
Going forward, the fund has $700k less than anticipated and unless state revenues pick up we
will need to make adjustments going into the 2012-budget.
The Street Fund is a partially funded by a gas tax, which is a percentage returned from the
state to the city. It is also funded from 16% of our Utility tax. It funds the Transportation
Engineering and Street Maintenance division out of Public Works. This fund will continue to be
affected if utility or gas tax don’t improve and have to be addressed in the 2012 budget.
Annexation is a sub set of General Fund. Last spring we were given a revenue forecast from
the county, which we built our budget on. The county forecast was grossly overstated. As a
result, we have requested $4.7million from the state and will start receiving funds in July
2011.
The Youth Fund is affected by the Utility Tax. We made an adjustment with the decline in
utility tax and we expect a change by end of year and this fund returning to the black.
The Capital Fund is experiencing a downturn as a result of the loss of 80% of the real estate
excise tax due to a decline in the housing market. Also, 25% of the city’s sales tax goes to the
Capital Fund and is affected by a decline.
Operations Committee Minutes
June 21, 2011
Page: 3
The staff is working to return these funds to zero is by supplementing the Special Program
Funds through the General Fund. This includes not filling and/or freezing 37.5 positions.
Positions that are being filled are those that are considered critical . Another cost savings
measure taken was to ask each department to identify 2.5% savings in their Maintenance and
Operating budget. This will save the city $1.3 million. Between these options, we will save $3
million dollars, which will improve the Special Funds that are in trouble through the end of thi s
year.
Public Safety is being staffed. Currently, there are more officers in field training than there are
full time staff to train them. By using interim field training officers the department will be able
to staff more quickly.
As we begin to build the 2012 budget we will discuss ways to create new revenue or make
reductions within budgets to accommodate state budgeting shortfalls.
Nachlinger spoke briefly about the bonding issue that occurred with the formation of the RFA.
Raplee requested a report that breaks down within each department each program in that
department and the cost to operate it and what percentage of special fund it comes from and a
2010 to 2011 comparison. Hodgson and Nachlinger will provide a draft for review.
Hodgson clarified for Perry that to accommodate the current shortfalls, the city will either have
to fund these special funds out of the General Fund or make significant cuts in other areas.
Thomas asked for a five minute recess. Following the recess there was no further discussion
and the meeting was adjourned.
The meeting was adjourned at 4:39 p.m. by L Thomas.
_________________________
Pamela Clark
Operations Committee Secretary
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