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MINUTES/FINANCE COMMITTEE
Monday, January 2, 2001 - 5:15 p.m.

Members present: Brooks, Bjerke, Hamerlik.

2. 2002 Budget calendar “process”.
Chairman Brooks stated that process normally starts in March but there was a request from the city council that they start this process earlier this year; that we’re into a different process - looking at performance analysis and performance based budgeting and need to look at process to educate the council - first need to establish a schedule for the budget and looking for some input from the other committee members, Mr. Schmisek or Mr. Warne. He stated that the resolution passed by the council is a narrative that tells what the council wants to see in the budget, then turned over to staff and they under the Mayor’s direction put a budget together and bring it to the council for review and approval, and thinks that is the process we should be looking at; that Budget Framework has been involved but they are not going to be around after February. Hamerlik asked if there was provision in the City Code that the mayor develops the budget, but if not maybe there ought to be a committee to work on it. The city auditor stated that the budget framework is not in Code but an established committee of the council itself.

Mr. Schmisek stated he thought one of the things they need to discuss is whether they have time to do a strategic planning process to determine what services and service levels the City would provide and that would be the basis for a council resolution. He stated there was a lot of discussion over the last year about whether they support or not support different groups who come in and those are major policy decisions that are fairly critical when start establishing a budget, and that we haven’t done that kind of a discussion involving the entire council, staff and public, and some determination needs to be made whether we can do something like that in a period of time that would allow us to start a budget process that would start in April or May.

Hamerlik stated that as of February 1 we won’t have chairs (committee) and the Budget Framework Committee has been called on to do a lot of other things and either have to separate that out and perhaps needs to be a committee. Mr. Schmisek stated that at the last council meeting Mr. Christensen referred the budget to the Budget Framework Committee to start meeting every Friday, exclusive of this Friday, and doesn’t know what the intent of that group is. Chairman Brooks stated that the budget resolution is a critical document, prepared upfront and gives an outline or belief of what the council wants and thinks that is critical and should be a planning session for the council to develop that document, that there are things that individual council members think are crucial that should be discussed at a planning session. The Budget Framework Committee is going to be gone February 1 and having that meeting now - and that an issue like that should come before the whole council.

Mr. Bjerke agreed that the council should set up the resolution, and need to set some long-term fiscal goals, and doesn’t like setting policy at council meetings in a hurry, need to decide what want to do as a city and go with that.

Chairman Brooks stated that the council needs to develop a document with what they want to see in a budget, a review process by a committee, that’s document developed by the mayor and staff, reviewed and voted on by the council, but with everyone working together gets too cumbersome and involved. Mr. Warne stated he’s seen councils go on a retreat to discuss what took place the previous year, broad kinds of things and preparation for that retreat (finance department prepares some fiscal projections) and some things the council has talked about - coming up with decision
making framework, that we passed one out several weeks ago where we talk about what will be the

MINUTES/FINANCE COMMITTEE
January 2, 2001 - Page 2___________

vision of the city and from that flows the things like the capital improvements plan, general plans and various elements; that is a longer term process and in the shorter term wouldn’t hurt to have a retreat or an advance with the facilitator and talk about what you would like to see in this year’s budget, maybe an all day session; and could talk to Mr. Schmisek and the Mayor and see how they want to handle that, and part of it depends on the revenue projections; maybe have the departments develop some goals and objectives and that he hasn’t studied what Mr. Schmisek has in mind for performance.

Mr. Schmisek stated that almost every department has established some goals and objections, that we have developed those goals and objectives somewhat individually and not really what the big picture of this community is - that goals and objectives developed in the finance department can be going that way from somebody else’s goals, rather than a combined effort but it’s still a starting point to show committee/council what departments are looking to achieve and for council to review it and believes need to go into a planning session that where going as a community in the future and then it will make every year easier and make council’s division easier because know what hoping to achieve.

Mr. Warne stated that the budget should be implementing document to get to what the overall community vision is and that community vision is consistent with the community values; maybe as a start could bring that forward, not get through that entire process this year, maybe within two years thinks could have a fairly well established process wherein the annual budget is the implementing tool to get to the overall community vision and implementation of the elements of the community general plan.

Mr. Schmisek stated you’ve gotten a sense from the committee members and knows that Mr. Christensen expects the four committee chairs to meet a week from Friday to talk about this again and maybe it will be a rehashing of some what we are doing here, but once we establish how we’re going forward, can set that timeline up and should talk about a day retreat for this year is important to council members. Information.

3. Workers Compensation Bureau - New Deductible Program.
Mr. Warne stated this is a new item for him, that he did some research today and would like to suggest for the committee’s consideration that we table this item, there have been some issues that have arisen, legal and procedural, and rather than discuss them here in the open meeting, would like to request that the committee table this and give us the opportunity to resolve some of those things before moving forward. He stated he talked to the State regarding Workers Comp. and if we want to implement this program, we have until January 22 so that does give us some time to go ahead and do that, and that would be his suggestion, that he talked to the Mayor and he concurs.

Brooks asked if there were any comments from the committee members, that he saw as something
they could get moving on in a dollar saving issue and that was the reason for hurrying it up but
would listen to what the committee members might have to say. Mr. Warne stated that - as long as we act before January 22 it can be retroactive to the 1st. It was noted that we’ve had savings on our Workers Comp through some programs we’ve implemented. Mr. Gordon, HR, stated this will add to savings in the past.

There were reps. in the audience from Vaaler Insurance but did not wish to make any comments.
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Bjerke moved to table it until the next finance meeting on the 9th. Hamerlik seconded the motion. Motion carried; Brooks voted against the motion.

1. Resolution requesting the Civil Service Commission establish a register for drivers for Senior Citizen Bus Service.______________________________________________________________
Mr. Warne stated that he had been asked to check with the bus drivers to see if any of them would be willing to be part-time employees with no benefits and the two current part-time people were willing to do that, however, as he has talked with the council it is his professional opinion that there’s not enough support to change what the council has already done and realizing that and that he carries out the will of the council, his feeling is that until there is more support to table this item; that there’s not enough support to go forward. Mr. Warne stated they would be temporary employees without benefits for 1040 hours and if work more than 20 hours a week they will have the temporary employee benefits.

Moved by Bjerke that the Senior Citizens bus drivers be temporary employees. Motion carried; Hamerlik voted against the motion.

4. Committee Member comments:
There were no comments by committee members or people in the audience.

Moved by Hamerlik and Bjerke to adjourn; meeting adjourned at 5:50 p.m.

Alice Fontaine
City Clerk

Dated: 01/02/01