1974 SPE MTG MIN JUN 17 - Laserfiche WebLink

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3£i Mr. Huffaker stated that most of these items were discussed at the March 25, 1974 City Council Meeting at which time, the Council set priorities on the capital improvements programs. Mr. Huffaker stated that the remaining items that are not included in this budget and Staff is still working on are the swimming pool, library, city hall expansion, southside fire station, and the grade separation on Valley Boulevard. Mr. Huffaker stated that basically, Staff feels that with the large capital improvement items, the demands on salaries, and the overall spiraling increase, the budget that you will be re- ceiving is a valid budget, that it will meet the present and future needs of the city. Mr. Huffaker stated that Council should bear in mind throughout review of the budget, the fact that the budget does not entail a tax increase, however, there are some user fees which Staff will be proposing later on. Mr. Huffaker stated that the program presented to the Council at their last meeting contained an increase in refuse fees, as well as, a program change in going from twice a week refuse pickup to once a week refuse pickup along with the brush pickup also once a week with no alley pickup. Mr. Huffaker stated that undoubtedly many of the Council members have recieved calls on the proposed refuse program, such as the City has, however, most of the calls received at City Hall have indicated an understanding of a rate increase to eliminate the City subsidizing the refuse service. Mr. Huffaker stated that strong opposition has been voiced in the areas of service of once .a week pickup and the elimination of alley pickup. Mr. Huffaker reported that Staff has -briefly looked over what the effects would be if the present system is retained. Mr. Huffaker reported that the effect would be an additional $25,000 to the proposed budget in overtime, based upon the fact that last year the City purchased one-man sideloaders and in order to maintain the present system these would be made into a two -men operation. Mr. Huffaker stated the additional overtime stems from the amendment to the Fair Labor Standards Act that makes any work over 40 hours overtime and that previously, the Refuse Division had been working on a 48 hour work week straight time. Mayor Huntoon asked where the $25,000 increase in refuse overtime would put the Refuse Divi- sion in terms of breaking even. Would this mean the General Fund would continue to subsi- dize the Refuse Division? Staff replied that this year the Refuse Budget is $221,000 and that with the rate increase it is estimated that revenue will be $274,000 leaving a differential of $53,000 to be used for administrative cost and depreciation cost and with the addition of the $25,000, it is estimated that the Refuse Division would be very close to a break-even point. Discussion followed as to proper time to appropriate the additional $25,000 to the Refuse Divi- sion overtime account. On Council consensus, it was decided to appropriate the additional moneys to the overtime ac- count after complete review of the Refuse Division Budget. Mr. Huffaker reported that other fees that will be looked at will be that of Cemetery and Animal Shelter, the later due to recent notification from the County that they are increas- ing their pound fees. The area that needs to be looked at is that of Sewer Fees. Mr. Huffaker stated that when the City obtained its Federal Grant for the sewer construction it precluded the City ever receiving further money for the sewer treatment plant. Mr. Huffaker stated that these fees are not included in the proposed budget, but that the Staff would be approaching the City Council in this regard in the future. Analysis of Estimated Fund Balances. Finance Director McGuire called Council's attention to the fourth column from the right of page one of the proposed budget, the column entitled "Estimated Revenues 1974-75" and said that discussion would center here. Mr. McGuire reported that the estimated amounts do not include any increases in user fees nor the increase in refuse fees that were recently adopted, however, the column will be amended later to reflect the refuse increase. Councilman Rehrer asked if he was correct in thinking that in order to retain a balanced budget, the budget would in fact have to be cut by $25,000 somewhere along the way to make up for the proposed $25,000 additional overtime account in the Refuse Department. Mr. McGuire answered that no budgetary accounts need be cut, however, the City Reserve Ac- count would be decreased somewhat. Mr. McGuire continued by stating that there is nothing unique in the revenue estimates from years past. Mr. McGuire said the increase in the Electric Utility is an estimation of what our Fuel Cost Adjustment will be from the Edison Company, the increase is reflected by the amount that was past on to our customers. Mr. McGuire stated that a small increase is shown in the Property Tax Revenue which is not an increase in the tax rate, but rather an increase in the assessed valuation. Mr. McGuire stated that Revenue Sharing was up a little due to a new investment program of investing idle city funds. The total in the whole budget'is approximately $80,000 from this source as compared to $20,000 for last year. Finance Director McGuire reported the Special Gas Tax Fund and Local Transportation Fund were down slightly due to a decrease in the City's papulation as estimated by the State Department of Finance. SUN 1'11974