HomeMy WebLinkAbout88 0719 min119
CITY COUNCIL BUDGET WORK SESSION
JULY 19, 1988
6:30 P.M.
CONFERENCE ROOM
CITY HALL
MINUTES
The Plainview City Council met in Budget Work Session, on Tuesday,
July 19, 1988, at 6:30 P.M. in the Conference Room of City Hall,
with Mayor E.V. Ridlehuber presiding. The following
Councilmembers were present: Alton Jackson, Terry Clements, Bobby
James, Barbara Dorman, Junior Brown, Don Dickson and Ross Owen.
Staff present were: James P. Jeffers, City Manager and Norman
Huggins, Director of Finance.
News media present: Richard Orr - Plainview Daily Herald.
Guest present: Gina Billington.
SANITATION FUND
SANITATION FUND REVENUES AND EXPENDITURES. Total projected
Revenues for the Sanitation Department are $901,000.00 with total
Expenses of $783,699.00. The excess of Revenues over expenses is
$117,301.00 added to a beginning balance on October 1, 1988, of
$570,500.00, leaving Reserves of $687,801.00. The Reserves are
designated in the following manner: designated equipment
$309,528.00; designated landfill $275,000.00 and undesignated
$103,273.00.
PERSONNEL. It was noted if the SMC, Inc., personnel audit were
implemented 100%, at the beginning of the fiscal year, it would
cost the Sanitation Fund $8,955.00.
SANITATION COLLECTION Budget shows a projected increase of 10.9%
over the previous fiscal year. Said increase can be attributed to
an increase in health insurance cost; an increase from $20,000.00
to $35,000.00 for the replacement of refuse containers; the
allocation of $75,000.00 for the purchase of a road grader to
maintain alleys; $14,000.00 for a 3/4 ton pickup truck with a
service body; $650.00 for a sandblast hood; and $80,000.00 for a
front load refuse unit.
SANITARY LANDFILL Budget shows a decrease over the previous fiscal
year of 49.6%. Said decrease is due primarily to the acquisition
of a landfill compactor during the 1987-1988 fiscal year for
$136,431.00. $600.00 has been allocated from the 6803 Account
entitled Other Equipment for the purchase of a radio for the
landfill compactor.
VECTOR CONTROL Budget shows a projected increase over the previous
fiscal year of 2.7%. Said increase is due to increased health
insurance cost; and other miscellaneous items. Councilman James
1 of 6
O0 120
inquired as to what the monthly charge was for vector control.
Director of Finance Norman Huggins, advised that there was no set
charge.
DEBT SERVICE
GENERAL OBLIGATION DEBT SERVICE requirements for the upcoming
fiscal year are $53,750.00. The GO Debt will- be completely
retired in 1990.
WATER AND SEWER DEBT SERVICE shows total debt service of
$171,070.00 on outstanding bonds for the upcoming fiscal year.
Total outstanding principal, which would be retired in 1995, is
$1,030,000.00. It was noted that the debt service did not include
the Canadian River Municipal Water Authority Debt.
SERVICE CENTER Budget shows anticipated Revenues of $163,000.00,
with total expenses of $160,755.00, with a beginning balance of
$1,000.00 and showing an ending balance of $3,245.00. The Service
Center budget showed a projected increase over the previous fiscal
year of 7.7%, attributed to; anticipated full staffing levels in
the upcoming fiscal year; increased health insurance cost; the
allocation of $300.00 and $250.00 respectively for a parts washer
and extension ladder in Account 6207 entitled Minor Tools; the
allocation of $700.00 out of Account 6305 entitled Paving to
sealcoat an area to the east of the existing structure; and the
allocation of $750.00 for a 1/2 ton transmission jack and
$2,150.00 for a 7 1/2 ton air jack in Account 6805 entitled Shop
Equipment.
PERSONNEL. It was noted tha~ if the SMC, Inc., personnel salary
adjustments are implemented at 100%, in October, 1988, it would
increase expenses in the Service Center by about $4,478.00 per
annum.
WATER AND SEWER FUND
ESTIMATED REVENUES AND EXPENSES for the upcoming fiscal year are
Revenues of $2,219,000.00, with total expenses of $2,003,880.00.
This would leave an excess of Revenues over expenses of
$215,120.00, coupled with a beginning balance as of October 1,
1988, of $360,000.00, leaves an anticipated unencumbered balance
of $515,120.00. It was noted that the City Council is in the
process of amending the Water Department Budget and an additional
$70,000.00 in expenses will be incurred during the current fiscal
year for cleaning out water lines.
PERSONNEL. It was noted that if the SMC, Inc. personnel audit
were fully implemented on October 1, 1988, that the additional
cost to the Water and Sewer Fund would be approximately
$34,653.00.
2 of 6
REVENUES. It was noted that the Director of Finance had
anticipated about a $10,000.00 growth in water revenues in the
upcoming fiscal year and a $10,000.00 growth in sewer revenues.
It was also noted that a rate analysis on the Water Department
should be submitted to the Council during August, 1988.
EXPENSES. It was noted expenses were down 3.8% over the previous
fiscal year for the entire fund.
NON-DEPARTMENTAL Budget showed a decrease over the previous fiscal
year of 1/10 of 1%. It was noted that $15,000.00 had continued to
be allocated for the completion of the Comprehensive Plan and that
$12,500.00 had been allocated for economic development efforts to
contract with the Plainview Industrial Foundation.
ACCOUNTING AND COLLECTION Departmental Budget showed a decrease
over the previous fiscal year of 1/10 of 1%.
WATER METER SERVICES Budget showed an increase over the previous
fiscal year of 1.9%. Said increase can be attributed primarily to
increased health insurance cost.
WATER PRODUCTION Budget showed a 9/10 of 1% increase over the
previous fisCal year. It was noted that the amortization of the
Canadian River Municipal Water Authority debt was $101,820.00, and
total anticipated Canadian River Municipal Water Authority
operational and maintenance cost of $140,000.00. $14,000.00 had
been allocated for the purchase of a tractor mower and $1,700.00
had been allocated for the purchase of a portable welder.
WATER RECLAMATION Budget showed a decrease over the previous
fiscal year of 10.6%, due primarily to the completion of
improvements in the sewer system. $2,500.00 had been allocated
for the acquisition of additional lab equipment and $15,000.00 had
been allocated for the purchase of a 4 wheel drive pickup truck.
WATER DISTRIBUTION Budget showed a decrease over the previous
fiscal year of 19.1%. Said decrease is due primarily to
allocations in capital outlay. An additional $360.00 had been
allocated out of Minor Tools and Apparatus, Account 6207, for the
purchase of a light bar. It was noted that in Accounts 6401
Meters and Settings, that the decrease was attributed to the near
completion of a meter replacement program. In the area of capital
outlay, $523.00 had been allocated for the purchase of a cutting
torch; $15,000.00 for standard water system improvements; and
$3,000.00 for additional fire hydrants.
SEWER MAINTENANCE Budget showed a decrease over the previous
fiscal year of 1.9%. An additional $720.00 had been allocated out
of Account 6207 Minor Tools and Apparatus for the purchase of two
light bars; $430.00 had been allocated in the capital outlay
other equipment account for a hydraulic pump; $35,000.00 for a
backhoe and $4,000.00 for standard sewer system improvements.
3 of 6
O0 12'2
Mayor E.V. Ridlehuber requested information on annual lost
payments in the Water and Sewer Funds, and it was stated such
would be provided later.
Councilwoman Barbara Dorman noted that the Environmental
Protection Agency studies were not a part of the Budget, but
needed to be added.
HOTEL/MOTEL TAX
It was noted that the Hotel/Motel Tax Fund would have $239,300.00
in a designated tourism reserve by the end of the fiscal year.
Councilman James stated he would like to review a history of the
Hotel/Motel Tax Reserve policy, and expressed a desire to amend
said policy so said funds could be used for the acquisition of
land and or a building for a Civic Center "only."
PARK IMPROVEMENT FUND
It was noted said Fund had $14,857.00 remaining in it. It was the
consensus of the Council to zero out the Fund by allocating such
towards the purchase of approved Capital Outlay in the Parks
Department.
STI~EET IMPROVEMENT FUND
It was noted that the estimated beginning balance for said Fund was
$17,200.00, with total estimated revenues and receipts of
$4,700.00, leaving a balance of $21,900.00. It was also announced
that the City is anticipated to receive $45,246.00 back from the
State on the Southwest Third Improvements. It was the consensus
of the Council that these Funds should be allocated towards the
Ennis Street improvements.
UNEMPLOYMENT COMPENSATION FUND
It was noted said Fund should have an ending balance as of
September 30, 1989 of $21,353.00.
EQUIPMENT REPLACF2~RNTFUND
Said Fund should show total receipts of $83,061.00 during the
upcoming fiscal year, with total expenditures of $61,775.00
leaving an estimated fund balance as of September 30, 1989, of
$501,286.00.
PROPERTY INSURANCEFUND
Total projected revenues and receipts are $134,250.00, with total
expenditures of $52,900.00. Total estimated unencumbered funds at
the end of the fiscal year are $213,773.00.
4 of 6
128
The City Council expressed an interest in establishing a similar
"liability fund".
HEALTH INSURANCE FUND
The City Council reviewed the partially self-insured health
insurance fund, which assumed a worse case scenario, which
resulted in an ending balance of zero.
GENERAL FUND
TAX RATE. Councilman Terry Clements requested that staff advise
as to what the effective tax rate would have been if the one-half
percent optional sales tax rate had not been adopted. It was the
consensus of the Council, for planning purposes only, to utilize
the effective tax rate in computing anticipated Revenues.
PERSONNEL. Councilman Ross Owen requested that a copy of the SMC,
Inc., job study be provided to him. It was the consensus of the
Council that 75% of the proposed salary adjustments be "plugged
in" in all funds.
POLICE DEPARTMENT. Councilwoman Barbara Dorman suggested the City
needed additional police officers. Staff was instructed to
prepare an analysis of what the City currently has and what might
be needed and the impact such would have on City operations.
STREET SWEEPING. It was the consensus of the Council to remove the
$90,000.00 allocation for the acquisition of a street sweeper and
continue with the current policy for sweeping streets. It would
be determined at a later date, after appropriate study and
hearings, as to what level of service should be provided in this
area as well as the means for financing such.
STREETS. It was the consensus of the Council to remove the
$150,000.00 allocation for a road grader and staff was instructed
to identify alternatives, including working with the County on a
"trade out of services" for providing said services.
COMPUTERS. The Council instructed staff to remove all request for
personal computers, other than the Word Processing Department from
the Budget for further study. After an analysis is completed on
the various request, such is to be submitted to the Council for
possible implementation.
PARKS. Councilwoman Barbara Dorman expressed a desire for more
"planning" in the Parks Department. Staff was instructed to
prepare an update of the Master Plan for the Parks and submit such
to the Council for review at a later date.
SWI~H~ING POOL. It was noted that approximately $10,000.00 in
additional funds need to be allocated for the upkeep of the pool.
The Council instructed staff to defer said allocation until a
report on the pool operation is completed.
5 of 6
CITY COUNCIL. Per the suggestion of Councilman Terry Clements,
the Council concurred that the travel budget be dropped from
$20,000.00 to $15,000.00.
Mayor E.V. Ridlehuber announced that there would be no Budget Work
Session for the meeting of July 20, 1988, as originally scheduled.
ADJOURNMENT. There being no further business Mayor E .V.
Ridlehuber adjourned the meeting at 9:30 P.M.
~.V. Ridlehuber, Mayor
ATTEST:
6 of 6