Council Minutes

COMMITTEE OF THE WHOLE
Wednesday, August 25, 1999 - 7:00 p.m.

Mayor Owens called the meeting of the Committee of the Whole to order on Wednesday, August 25, 1999. Roll call: Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner - 12; absent: Council Members Polovitz, Martinson - 2.

1. Matter of preliminary annual budget for year 2000.

Mayor Owens reported that the only item on the agenda is the preliminary annual budget for year 2000 and in front of the Committee of the Whole were the guiding principles which will be what Mr. Schmisek, city auditor, will be presenting this evening, with discussion after presentation.

Mr. Schmisek reported they will be going through the Mayor’s 2000 recommended budget, and that they have two documents, one being a replacement for the information that was sent out last week with some changes, and in particular have added the $20 million for the flood protection project that they think they will spend next year, and other document is notes for this evening. He stated they will cover several items in the budget, primarily the guidelines the Mayor had used which are based off of the budget resolution U.S. Council adopted in June and will go through some detail of the General Fund, Special Revenue Funds, Enterprise Funds, Capital Projects Funds and talk about summary information, what this means to the 2000 budget, in particular what it means to all of us as citizens of Grand Forks.

He reviewed the 2000 Preliminary Annual Budget with following conclusions:
- 15 mills for flood protection
- mill levy reduced by 4 mills
- only utility increase in Wastewater (other deferred at this time)
- increase in expenditures to provide basic services - primary increase projected in Salary & Fringe Benefits in operating budgets
- reserves left to protect against excessive future mill levy/rate increase or provide amounts for handling possible questions costs

Mr. Schmisek thanked the departments which worked to hold increase down; personnel in his office to have presentation ready for this evening, Mayor and Council who realize resources need to be provided in order to provide services, and citizens for input throughout the year.

Mr. Schmisek reported there were several changes to the budget and when they make their recommendation, these will have to be included in that motion:
1) that in the General Fund Assessing budget the overtime line item should read $7,500.00 rather than $5,150.00.
2) that in the General Fund Health budget in the health grants under 11045 HL 90 there is a grant that will not be funded in the year 2000 so will be reducing both the revenue side and the expenditure side by $54,700.
3) there is a position that was missed in the budget and will relate to the Wastewater and Waterworks - a project engineer that they are recommending to be hired in order to oversee and
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work on the large projects, wastewater treatment, water plant expansion, moving intakes, water
reclamation plant and will have to be included and will bring back a dollar amount for that in September.

He stated that the preliminary adoption of the budget will be on September 7, 1999; final adoption of the budget is September 20, 1999; and the next step the Mayor hopes to accomplish in this process is that Planning and Zoning and staff will be bringing in and requesting from the department all of their out-year CIP for the next 5 years; and hope to bring to you in November some 5-year projections working with all the departments and with the program descriptions that they have presently received, performance measures for those programs and at that point will start working on the 2001 budget; that they will hold some work sessions on that and that there will be opportunities for community feedback on programs, cost of those programs, what service levels citizens want City to provide.

Mr. Schmisek reported that Riverforks is still funded under the Economic Development for $100,000; and have not received a completed budget for the continuing organization of DDC, their current funding source will carry forward in the CDBG area; and what the Parking Authority would do and need to pursue them to try to get a better handle on this, where they’ll be at; that even if they would not come in at this time would still have the opportunity to amend them in at a later date simply because new/unanticipated revenue. Mayor Owens stated they will be having a meeting on Friday to decide whether they continue; and it was noted that they’re not anticipating any City funds in that and they would have to find some source of revenue.

Council Member Lunak questioned matter of zero for Human Needs for 1999 and for 2000 and what was included for Human Needs; Mr. Schmisek reported that in past years pre-flood they had actually budgeted approx. $100,000 that social service agencies could come in and apply for, and since the flood have not budgeted that. Council Member Lunak stated that Community Intervention Violence Center got some CDBG funds; that they have operating money but need additional funds. Mr. Schmisek suggested that CIVC may want to present request to Finance on Tuesday.

Council Member Glassheim asked how much they are putting into dike protection project in the year 2000 out of property tax fund. Mr. Schmisek stated they are putting 15 mill which is about $1.1 million and is about 14% of our total mill levy revenues. Mr. Schmisek stated there is a dollar amount in the infrastructure and will see that when get the detailed budget to fund part of operational cost and in future years will be anticipating to use additional funding for the project, and looking long term will have decisions to make whether as other debt service projects are paid off and want to use additional sales tax to fund the levy, or use it to fund other infrastructure; and also will need to address use tax. It was noted that in this year’s budget if there were no dike funding required, you would have had a 9 mill reduction.

Mayor Owens stated that the more they can put towards the dike project from our General Fund
thanked department heads for being cooperative and understood what we are trying to do, and also the city council.
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Council Member Beyer stated they’ve been discussing flood protection and putting money aside and owe it to our citizens to understand why we’re doing it, and also owe it to State Legislators and every citizen in the state that is helping us with the dike funding, that if we show fiscal responsibility in our budgets that we’re putting it away, thinks we’re doing our part to show them that we are partners and let them know we appreciate the hard work and hard choices they made.

After further questions and discussion it was moved by Council Member Bakken and seconded by Council Member Hafner to accept the preliminary annual budget for year 2000 including changes as noted. Carried 12 votes affirmative.

Mr. Schmisek reported that on the 7th of September they can still increase the budget, but once adopt that can lower the budget but can’t increase unless have unanticipated cash balances or revenues.

Mayor Owens stated that her off will be sending notices to council re. the James Lee Witt visit on September 2 as soon as they find out when the press conference will be held, wants council and department heads to be part of that; but that they have limited amount of time and they are going into East Grand Forks for a short period.

ADJOURN

It was moved by Council Member Lunak and seconded by Council Member Bakken to adjourn; meeting adjourned at 8:10 p.m.

Alice Fontaine, City Clerk


Dated: 09/01/99