Special Meeting May 22, 2013
May 22, 2013
The Enterprise City Council and Budget Committee met in a special meeting to hear the Budget Message and approve the 2013-14 Budget. Those present were Mayor Margie Shaw; Councilor Laura Miller, Stacey Karvoski, Tim Parks, Jenni Word, Larry Christman; Budget Committee members John Lawrence, Gail Talley, Kim Stoffel, Kurt Melville; City Staff Michele Young, Ronnie Neil, Denine Rautenstrauch, Paul Karvoski.
Absent: Councilor Bill Coffin, Chief Kilgore
Mayor Shaw opened the meeting and stated the first item on the agenda is to appoint a Chairperson from the Budget Committee. Councilor Christman made and Councilor Karvoski seconded the motion to appoint John Lawrence as the Chairperson. Motion passed unanimously.
John Lawrence opened the Public Meeting to review the proposed budget and to approve it. John asked Budget officer Michele Young to present her Budget Message.
Michele presented the Budget stated that this years budget is pretty much a status quo budget. Michele stated that she thought she was going to see the city in a better position financially but we have had a lot of unexpected expenditures such as two employees resigning which caused a lot of leave benefit payout as well as the transition of new employees. Due to employee related changes in the Police Department and not receiving full Franchise Payment from the Sewer fund the General fund has a deficit of $33,044. Michele handed out amended pages from the General Fund, Water Fund and Sewer Fund for weed spraying activities.
Michele stated that the proposed City Budget for 2013-14 is in the amount of $4,975,725. Michele reported that all expenses have remained the same. The biggest increase that we are going to have is PERS. The increase in PERS was large enough that the savings we realized in changing our Health Plan has disappeared. Michele stated that between PERS and Medical Benefits, increases in either one of those effect the city budget. Michele stated that employees pay the employee share of 6% for PERS and pay 5% of their Medical Premium. The cities health plan has a $1000 deductible for employee only and a $3000 deductible for family.
Michele reported that because of the changes made in how we charge for Sewer has had a negative effect and our revenues for Sewer are down by $65,000.00. This has a huge impact in the Sewer Department and the City Council is going to have to review the rates to make up for the loss. The changes that were made needed to be made for commercial business's but it did have a negative effect.
Michele stated that because the budget is status quo that unless everyone just wanted to she didn't really see a need to go through line by line on the budget.
Michele asked the Budget Committee and Council if they had any questions. Gail Talley who is new to the city budget process asked how Michele was planning to make up for the loss of funds. Michele stated that she is asking that the Committee approve the budget as presented with the condition that by the time it goes for adoption that it be balanced. Michele stated that she had budgeted increased expenditures in the Warde Park Budget, that is the only increase that was not fixed expense that was increased. Depending on how the revenues from property taxes come in that is where the adjustment will be made.
Ronnie Neil reported on some projects that he has planned for the year such as Depot Street, it was be repaved, we received a $50,000 grant and we are estimating the project to cost $100,000. We have a City Park Restroom project which we received grant funds for. We will tear down the old pool building and install a pre-fab restroom above the tennis courts on 2nd Street.
After further discussion on the city budget Councilor Christman made and Councilor Miller seconded the motion to approve the proposed budget in the amount of $4,975,725, but amending that with the amended pages presented by Michele in the General Fund - Street, Airport and Parks in the amount of $900 for weed spraying; Water Fund in the amount of $150 and Sewer Fund in the amount of $1200 and that Michele would make the necessary changes to balance the budget in General Fund. Michele stated that she would probably do that in revenues at this point but the final hearing would reflect actual changes based on tax receipts and other cash receipts within the General Fund the Parks Improvements for Warde park would be decreased. Motion passed unanimously by the City Council and Budget Committee.
Being no further business the meeting adjourn.
Margie Shaw, Mayor
Michele R. Young, City Admin./Recorder