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HomeMy WebLinkAboutFC_2015-06-12_MinutesFinance Committee Meeting Notes June 12, 2015 Page 1 of 5 City of Atascadero FINANCE COMMITTEE NOTES Friday, June 12, 2015 1:00 p.m. Atascadero City Hall – Conference Room 106 6500 Palma Avenue, Atascadero, California CALL TO ORDER: Chairperson Moreno called the meeting to order at 1:01pm Members Present: Council Member Kelley, Mayor Pro Tem Moreno, City Treasurer Gere Sibbach, Administrative Services Director Jeri Rangel, City Manager Rachelle Rickard Absent: None Staff Present: Fire Chief Kurt Stone, Public Works Director Nick DeBar, Deputy Administrative Services Director Cindy Chavez, and Deputy City Clerk Lori Mlynczak. PUBLIC COMMENT: Charles Bourbeau expressed concern over the amount of supplementals. Mr. Bourbeau asked if this is the last meeting before the budget is taken to the City Council. City Manager Rickard confirmed that this is the final meeting before the budget is taken to the City Council on June 23rd Mr. Bourbeau also asked whether the City is going to look into raising the sewer rates. Chairperson Moreno mentioned a study regarding fees is scheduled for the upcoming fiscal year. Public Comment was closed. BUSINESS: 1. General Discussion Regarding Selected Business Items There were no follow up questions from the prior meeting. Finance Committee Meeting Notes June 12, 2015 Page 2 of 5 2. Draft Budget Administrative Services Director Rangel gave an overview of the draft items that were distributed. Director Rangel gave a brief explanation on section A of the draft budget document. Director Rangel went over section B of the draft budget document. Councilmember Kelley asked about the Tax & Assessments increase on page B-1. Director Rangel explained that F-14 Sales Tax revenues are included in that number. Pages B1-5 are all funds together. The details are further back in the budget. Director Rangel pointed out that B-6 is expenditures for all funds. Councilmember Kelly asked a question about the spike in general fund revenues. Director Rangel explained how the triple flip caused a slight bump for one fiscal year. City Manager Rickard pointed out the difference of combined funds vs. separate funds and that we are not budgeting based on the spiked years. Director Rangel went over the 7 Year Projection located on page B -11. City Manager Rickard mentioned that this report is different than what was previously presented. During labor negotiations a payout of historical vacation banks and holiday leave have been offered. However, this is not a mandatory pay out. City Treasurer Sibbach mentioned this will make it possible to pay down some of the leave liability that is on the books. City Manager Rickard explained there is a placeholder for items that are negotiation with the labor groups. Councilmember Kelley asked about the F-14 Sales Tax. Director Rangel explained that the F-14 Sales Tax is not included in the general fund projection and budget. There is a separate document just for those dollars. Councilmember Kelley asked to have an asterisk to refer to the section that relates to the F-14 Sales Tax funds. Director Rangel pointed out the bottom line on page B -11, specifically the reserves. Each year of the projection is well about the Council policy of 20% reserve. Finance Committee Meeting Notes June 12, 2015 Page 3 of 5 Director Rangel briefly went over page B-12. This also excludes F-14 Sales Tax dollars. It was agreed that the asterisk note will only be applied to page B-11. Councilmember Kelley asked for an explanation of the transfer out amount located on page B-14. Director Rangel explained that was the transfer of Bertha Schultz funds to the vehicle fund. Director Rangel noted that from section C on was previously covered in prior meetings when debt service and operating funds were discussed. City Manager Rickard stated that public safety is not being reduced as shown on page B - 17. Funds other than general funds are being used. Chairperson Moreno asked if we had any additional information from PEI regarding the projections. Director Rangel referred to page G-15. We previously had a 3 year projection and have added info to fiscal years 2018/19 and 2019/20. Councilmember Kelley, referring to page B-11 asked how we are going to be able to cover adding additional positions. City Manager Rickard stated those positions have already been included in this draft budget. Councilmember Kelley asked where he will see the spike for PERS. City Manager Rickard referred him to employee services on page B-11. City Treasurer Sibbach asked if the items on page G-15 are funded. Director Rangel confirmed they are and referred to page F-2. Category B items are City funded and the others are F-14 funded. City Treasurer Sibbach asked about the role of the Sales Tax Oversight Committee. City Manager Rickard explained that they will review revenue and expenses after the fact. The committee will receive education on the PEI critical point pavement management and budget documents. There was a discussion about the upcoming Alamo and Honda street projects and when they will be completed. Councilmember Kelley asked about the first ‘big’ street project and was referred to page F-2 for the size and scope of the projects. Councilmember Kelley asked about the phrasing of “maintenance”. City Manager Rickard and Director Debar explained that the term maintenance wh en referring to F-14 project refers to surface treatments to the roads – not patching potholes. Director DeBar explained that the term maintenance limits the accessibility improvements that would be required. Finance Committee Meeting Notes June 12, 2015 Page 4 of 5 There was a discussion to add a brief descriptor of what is included in “maintenance”. City Treasurer Sibbach asked when the budget hearing will take place and whether there will be any communication with the Sales Tax Oversight Committee prior to that meeting. Chairperson Moreno opened public comment: Charles Bourbeau stated that because PERS is an area of public concern PERS rates should be listed somewhere in this document. Councilmember Kelley asked about the unfunded PERS liability. City Manager Rickard explained that our payments each year go toward paying that down. There was a brief discussion about the closed 20 year projections that are received from PERS each year. Chairperson Moreno suggested adding to section A-10 that approximately $350,000 is paid each year toward the PERS liability and that the amount increases each year. Supplementals - On-Going Director Rangel discussed the supplementals and pointed out the difference between Requested and On-Going. City Manager Rickard went over On-Going items on the list. Chief Stone elaborated on the fire supplementals. City Manager Rickard pointed out the F/T Planner is not a senior and that should be removed. There was a brief discussion regarding the Recreation Guide and possibly coordinating with promotions. There was a question about the supplemental for Public Works for the Associate Civil Engineer. Director DeBar clarified that this is in addition to filling the vacant position. City Manager Rickard pointed out that there is also a Maintenance Worker 1 being added to Building Maintenance. This will be a swing shift position working from approximately 2:00pm-10:00pm to supplement the janitorial services and allow for more zoo maintenance from the existing staff. Director Rangel clarified that although this position was erroneously left off the supplemental list it is included in the draft budget document. Finance Committee Meeting Notes June 12, 2015 Page 5 of 5 Supplementals – One-Time City Manager Rickard went over the one-time supplemental list. There was a discussion regarding a remodel of the fire station 1 office. Councilmember Kelley asked about the Trailer Mounted Leaf Vacuum and whether or not it would affect parking. Director DeBar clarified this would be used early in the morning, not during heavy traffic times. There was a brief discussion about the Sewer Line Cleaning Truck item. The current truck is at least 25 years old – well beyond its life. Chairperson Moreno asked where to find the reserves by fund in the draft budget. City Manager Rickard referred to page C-2. There was a brief discussion about the Technology and Vehicle Funds. We are not currently funding the Building Fund but do continue to fund the Technology and Vehicle Funds. City Manager Rickard clarified that we are not putting away money for vehicles that last 20 years. Chairperson Moreno commented on what a great job has been done on this draft budget. Councilmember Kelley stated these Finance Committee meetings have put him at ease with the budget. Chairperson Moreno adjourned the meeting at 2:46pm. NOTES PREPARED BY: _________________________________ Lori Mlynczak, Deputy City Clerk