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HomeMy WebLinkAbout02.13.2003 (3)• • COUNCIL WORK SESSION February 13, 2003 4:00 p.m. Council Chambers Members present: Mayor Rooff, Kincaid, Welper, Clark, Hurley, Getty, Jordan. Members absent: Greenwood. Moved by Getty, seconded by Welper that the Agenda, as proposed, be approved. Ayes: Five. Absent: Greenwood, Jordan. Motion carried. Council Members met to discuss the Sewer Budget. Mayor Rooff reported he met with Tim Shea, Superintendent of Waste Management, and the Sewer Budget is balanced within $80,000.00. Mayor Rooff stated he discussed the utilities and items for the new plant with Mr. Shea. The utilities line item was reduced by $100,000.00. Mayor Rooff stated the newly approved increase in sewer fees made a difference on the Sewer Budget,. Mayor Rooff stated that Steve Decker, Superintendent of Streets, has four people who work seven months of the year on street cuts, and maybe those street cuts will need to be separated to make sure they correspond to activities. Jordan now present at 4:05 p.m. Eric Thorson, City Engineer, reported that $667,000.00 is included in the Sewer Budget for sanitary sewer work related to construction projects. Construction on the 18th Street Bridge could begin in late Fall 2003, depending on the what kind of winter we have. Mr. Thorson stated some of the $667,000.00 could come out of the 2003 Budget. Some of the funding is for dirt material. Michelle Weidner, Chief Financial Officer, reviewed the budget listing for the Sewer Budget, which includes the Water Pollution Control Plant, Pollution Control Improvements, Fiduciary and Expenditure Transfers. Councilperson Hurley stated that a few months ago, the council discussed using the Local Option Tax for sewer improvements on construction projects if certain conditions would make it appropriate. Mayor Rooff responded that City Attorney Jim Walsh and bonding counsel have said the city cannot use the Local Option Tax for those types of sewer improvements. Ms. Weidner reported that $957,128.00 of expenditure transfers is the principal and interest allocated for GO Bond debt used for sewer improvements in addition to $3.4 million included in the fiduciary transactions for Revenue Bonds and interest. Ms. Weidner reviewed the Financial Analysis for the Sewer Fund. The proposed FY04 Budget shows a deficit of $80,397.80, and the Sewer Fund will be watched closely for expenditures that could come in lower, such as utilities. Councilperson Getty stated he has a problem transferring $140,000.00 out of the Sewer Fund to Central Garage as he thought the new mechanic was hired to work at the Waste Management facility. Councilperson Getty stated he does not agree with paying Engineering $50,000.00 out of the Sewer Fund. Eric Thorson, City Engineer, reported that the Engineering Department provides inspections, reports, maintenance of the levies and coordinates with the Army Corps of Engineers. Mr. Thorson stated he does not believe $50,000.00 covers the total costs. Ms. Weidner stated if the mechanic position is moved to the Sewer Fund, the city would need to cut $140,000.00 from the General Fund as the charge back includes the building, staff time, etc. Councilperson Getty stated he has a problem increasing the sewer fees and then paying all of these items out of the Sewer Fund. Ms. Weidner responded that the Street and Engineering Departments pay more to Central Garage for vehicle maintenance than Waste Management. Council Work Session February 13, 2003 Page 2 • • Councilperson Hurley asked why there are no changes to the interdepartmental charges since 2000. Councilperson Jordan asked if the city will be able to do all the work budgeted for FY04. Mayor Rooff responded that this is a balanced budget, and if the city can't do all of the work because the funds run short, we will move a project or two. Councilperson Hurley asked when the $67 million facility project will be completed. Tim Shea, Superintendent of Waste Management, responded that conservatively the plant could be completed 1 %2 years from now. Ms. Weidner reported that the city will be paying bonds for the sewer facility until 2017 as one year the city purchased 20 year bonds. Ms. Weidner stated that cities can chose to have 30 to 40 year sewer bonds. With no further business before the council, it was moved by Getty, seconded by Jordan that the meeting be adjourned at 4:46 p.m. Ayes: Six. Absent: Greenwood. Motion carried. Nancy Eckert City Clerk