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	MINUTES/FINANCE COMMITTEE Tuesday, September 15, 1998 - 3:45 p.m. Members present: Babinchak, Brooks, Carpenter, Hamerlik 2. Matter of bidding requirements. Mr. Schmisek reported that copies of bidding procedures adopted by city council had been sent to the committee members; and open for some discussion/direction as to what they may wish to do. He stated that the bid function is fairly specific, has certain dollar amounts that departments are required to bid at - they can get unofficial quotes up to $2500, and after that more formal bid procedure where specifications are approved and submitted to our office and once reach over $5,000 those specs. have to be approved by proper council committee and forwarded onto to the finance department for advertising, bidding, etc. He stated that within guidelines a note that construction projects are not included because governed by NDCC 48-02-03 and applicable federal laws that deal with certain types of projects; and these are only for sup-plies, capital items, etc. that exceed dollar amounts as specified in various areas. He stated that no item over $5,000 can be bid until a request to bid has been placed on council consent agenda and referred to the proper council committee, etc. He stated he will leave up to committee for questions and what want to do. He stated that by reviewing these that they cannot resolve some of the issues that come up within the writing of the specs., that entirely separate process; City isn't big enough to have a central pur-chasing department with buyers who are designed to write specs.; that they tried through our office to contact UND's buying depart-ment and contract with them, but found out that wouldn't be allowed. He stated that part of what's been happening over past while in writing of specs. is why policy was adopted that specs. would be approved by the council committee and council before specs. went out. Brooks reported that it seems where time and again getting into situations where staff drawing up specs., putting out and they aren't people expect to be experts in the bidding process, comes to council and we beat up on the people that bid and beat up on staff, and has to be better way of handling this, believes in bidding process, have to get info from staff as to what need and from vendor in what's available, and buyer puts those specs. together. Carpenter reported present. Brooks stated that bid process goes forth and once do that, com-mittee or council have to support that process, but once falter and look at variations and don't follow procedures, that then opens wide to vendors who are trying to make a sale, take a lot of employee's time and hurt the image of the City and council, etc. He stated have to find some way to fund it and save us money in our overall budget, grab money from all the budgets and save City a lot of money if get that process set up. MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 2 Babinchak agreed that there's problem with specifications, not pro-cedure that we do, that there's different types of equipment and not really comparing apples to apples; and not sure have need to warrant a full-time buyer. Brooks stated that they're not supposed to be comparing one vendor's product to another, supposed to be drawing up specs. about what we need to see in the product and take the low bid that meets that. Hamerlik stated that for 4 1/2 years been concerned because of the embarrassment at times in writing specs. and difficult for people that don't work with it day in and day out to write several a year; that in the policy the proper council committee will review it and that becomes micro-management and doesn't recall reviewing specs. for bids. He stated that policy seems to be good but is a matter of someone doing it as a side but not often and that's where get ourselves into embarrassing situation, rebid, etc. and this com-mittee has had some this year. He stated that drawing of specs. is whole problem. Brooks stated that our budget is going to be finalized next Monday and this isn't time to inject new function in trying to figure out funding but in the next year's budget (2000) that we consider this in the budget process. Hamerlik stated if they were going to con-sider professional assistance, it doesn't have to be just the one, there's inventory control and whole host of things that can be put together which relieves other people of the responsibilities but whole host of things to improve it but this isn't time. Ken Vein, city engineer, stated that public service probably has most bids going on and by State law are required to bid and that makes it much more difficult and in years that he has been here, they've gone around and around on this, because you talk about min. requirements and they've established that but there's other things they've gone around in - service, parts, how quickly to do repairs, etc. and have to come into play when trying to determine perfect bid specs. He stated that determine min. requirements and bidder meets all but one and still bid it, that as long as being required to do bidding of equipment will always have problems, doesn't think fool-proof thing. Mr. Schmisek stated that if direction is to look at this for next year and study it, will visit with various companies, UND on how their process works. Mr. Vein stated that if have full concurrence for the specs. upfront and once bid, no modifications to it, because we've had hours and hours of discussions after fact that something should have been included or didn't get bid and should have for other reasons; and would like support of specs. early on and once done, MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 3 is a done deal. It was also noted that they need input from the employees to know what we need but not to write specs. Brooks stated we need good specs. and support for the system once bid process is done. Hamerlik stated that it was in about 1959-60 when UND inaugurated a process for purchasing inventory, etc. and they've worked through all those problems and that individual, Odell Foss, able and willing and could probably use his expertise in looking at some of that, he's had great deal of experience and not had a lot of dif-ficulties. He suggested that they have something in the minutes that they discussed this and receive and file, but council should have a copy of bidding procedures because other council members concerned and know that we addressed it. Mr. Schmisek reported that his notes for this committee went out to all council members with that attachment. Information only. 3. Matter of future City's role on Internet. Roxanne Fiala, IS Department, reported that at the point they turned GrandForks.com back to the Development Foundation, the name that they originally wanted for the government site was .Gov which when tried to get that were no longer giving them out in the US, and then proceeded to go with GrandForks.ND.US which is part of the naming convention that cities are doing across the nation and the State of North Dakota had purchased all of the cities with the NDUS addresses so at that point when they spent period of 2-3 weeks on deciding on names and checking out possibilities and doing searches, found out that GrandForksGov.Com was still avail-able and wanted to do search on the Grand Forks and be able to get into that site if wanted to; and that's how they came up with the GrandForks Gov.Com. As of now the Information Center is still maintaining the website and will be doing that until November and then Kit McNamee who is on her staff will taking over the website and doing some revamping; and really what want to do at that point is a lot of information delivery, continue with some of the things that are on there but will have ward information, recycling schedules, bus routes, city council representatives with pictures if decide that's what you want, permit information, committee definitions, agendas, minutes and all department information. She stated that in attending a conference in San Fransciso for government agencies for cities, one of the things they said in seminars on websites was that you want to keep it as simple as possible but to have a lot of useability, and end result they are hoping for is to have the interaction communications with our citizens. Ms. Fiala reported that on the wide-area network insight technology came in on time with the wiring but because of US West strike still having problems with phone lines, where connected buildings are wired together but now don't have IP addresses which have to get from US West, so behind on scheduling because of that; but hope to be totally completed by end of October with all buildings. MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 4 Ms. Fiala reported on the Year 2000 they have ordered software, so that's as far as the staging, helps with letters and going through all the processes; have committees organized of who going to actually be meeting on the subcommittee, have got reports back from all departments of areas of their concerns; did meet with some of the utility companies and going to have a follow up meeting on that and are doing the format for the letters to vendors and will meet next Monday within the city for the buildings, public works and different divisions, public safety. She stated that now they are in stage of assessment and moving in towards renovation, where actually testing and looking at where problems are. Carpenter asked if there were a written plan showing steps going to take and information; Ms. Fiala stated that not in a summary plan but which she will get to committee. Jerry Waletzko, 4806 6th Avenue North, #2, stated there were two parts as to why pursuing this, that there was one issue that he was hoping to get a resolution on, was the legality of selling a City asset without following proper procedures as per his attorney's request to the City. Babinchak reported that the city attorney is working on that and he will be getting a response from him. Mr. Waletzko stated that the other issue is the issue he wants to keep focused on is the question of the assumption that's being made in the comments that the City is saying they want to be an exclu-sive government site, and trying to make the case for the reality that by circumstance this site evolved and there were a lot of business people on it (non-profits, churches) and was hoping that it would come to an evolution of something very unique but was a chance for everybody to have a spot on the internet, and this was a grass roots opportunity to help new businesses get started, to support the non-profits by giving them a simple hyperlink to the churches and schools and make it be more than just a government site but community town square site. He stated that part of his problem is by giving this to the Herald, the City is saying they are supporting the Herald's efforts to make money off of this, and net result is that the Herald will eventually come to them and because given this super hyperlink but now want to sell adver-tising, and saw this as a generic listing of everybody, could walk into town square and pick and choose who you wanted to shop with without being influenced by advertising, and be available to all citizens to help engender and grow up new businesses and lend a community service to a lot of other entities. He stated he talked to people who had been on that and agenda with what he was saying, and not right to give to someone else, and saw it as an opportunity to help their businesses that wouldn't cost you anything, because citizens who want to have their web page up would pay the nominal cost. He stated he would ask the City to reconsider this from a policy perspective, when these people say what they want to do with it, that can be part of it, but what kind of leadership role do MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 5 they want to take in supporting every business and all people that need help trying to avoid those advertising costs and seems like small effort for amount of computer space it would take and what it costs to support citizens, make them pay $20-50/year, and have town square, and there's whole other age of technology and commerce that is going on out there, and ask their support for, aside from the legal issue and whether or not that name change goes down, if has to be can maybe reclaim Grand Forks.net, if you want it. Mr. Schmisek reported that in visiting with Mr. Swanson, included in his report will be some information in regard to what Mr. Waletzko is visiting about today. Carpenter stated that Mr. Waletzko brought up some good points, but disagrees with him on the actual GrandForks.com and thinks Mr. Swanson will verify what's occurred. He stated that having, whether schools or non-profits, businesses to have the opportunity to have a link to our government site, feels at this stage that's something should consider and look at, what costs are and consider that. Eliot Glassheim, 3rd Ward council member, stated he is interested in the question too of whether the City of Grand Forks wants to do more than organize itself, but whether want to do more, and wonders even if do what Mr. Waletzko wants, going to be glutted, how keep people off, how to run and operate, what to link and how, but need model. Ms. Fiala stated that they can take links off each other, so if schools decided to have one, could link off of theirs, schools could link off of ours, can link back and forth but everybody maintains their own site. Held for 2 weeks to see if Mr. Swanson has research done, or if other information available. 4. Matter of sale of former public works garage. Saroj Jerath, deputy city auditor, reported she was asked to provide city's impound lot analysis and some needs assessment from the department who are using the two buildings which are owned by the City for this purpose - 1518 Mill Road and 1520 North 6th Street. She reported that the property that was former street department building is being used by the civic auditorium and by the police department. She reported that the civic auditorium use building for ground crew equipment and storage of equipment (truck, trailer and other equipment and to store bleachers and other furniture, and using about 6800 ft. of space. She stated that backside of the building is used by the police department for impound cars; that there is an attached building which is used by the police department to store bicycles and other recovered property. MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 6 Mrs. Jerath reported that the property at 1520 North 6th Street is used for impound cars, has metal quonset and property in a very run down condition and an eye-sore for the neighborhood. She stated she has discussed space needs with departments, civic auditorium needs about 6,000 sq.ft. of metal building with concrete floor and need two 16x16' overhead doors and two walk-in doors to move bleachers in and out, and need access to move equipment in summer on a daily basis. She stated that the police department need about 70-80,000 sq.ft. for impound cars, now have 48,500 sq.ft. and need impound lot for cars which should have chain link fence around it, and 2400 sq.ft. of enclosed space for bicycles and other recovered items. She stated her recommendation for space needs is 6 to 7,000 sq. ft. of enclosed space in preferably metal building with a concrete floor for civic auditorium use, and police department bicycle storage needs with 2 16x16' doors to move equipment in and out; 70 to 80,000 sq.ft. of open lot with chainlink fence for impound cars, and need 2 to 3 acres of land. Mrs. Jerath stated that if they attempt to sell properties, have couple parties interested in property: Satrom Door Company-PS Doors and Triangle Bus Line; that she talked to Mel Carsen, city assessor, re. value of properties - 1518 Mill Rd. $144,300 and $36,500 for the other property for a total of $180,800. She also reported that if they were to demolish the building, the cost for demolition for 1518 Mill Road about $28-33,000 and cost to build 6-7,000 sq.ft. storage building to replace the 1518 Mill Road would be approx. $25-35 per sq.ft. and would provide basic heated metal building with slab on grade, no air, and 2 small bathrooms; and $14,000 for chainlink fence. It was noted that costs did not include land. Mr. Schmisek reported they haven't located a spot and other thing they would like to look at is that they are in the process of negotiating with School Dist. for buildings and grounds bldg. on North 3rd Street, that part of that building will have to come down, but think brick part would remain because outside of the R/W and would like to look at and see if feasible but only for inside storage and still have to look for fenced in area to house the vehicles; and could come back in couple weeks. It was noted that they are quite far apart on the price (offering $550,000 and they want $1.1 million). It was reported this property on Railroad R/W and was a 99-year lease and if that was still true; Mr. Schmisek stated he wasn't sure of that. Hamerlik stated he took a look at the facility and what was stored there, that he would like to read report against as he believes needs are over-stated. Mr. Glassheim stated that from a neighborhood point of view, that MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 7 lots and quonset are real detriment and depreciate people's values as well as lives, and just put Habitat house across the street and if can find place to get those out it would make nice 3 or 4 lots for modest housing or historic homes. Hamerlik stated that there were offers to buy building so could upgrade the whole area through renovation, etc. It was also noted that part of the process was so that City doesn't have to spend any more money than what may get for the building, and even if City keeps building, should be upgraded. Carpenter stated they really want to do something there, and questioned whether storage building would have to be heated and have bathrooms in it, and maybe if looked at and trimmed down a little may come with more realistic cost and afford to do some of this. There were some questions re. number of bicycles in building , that they sold 75 in May or whether some were held for Police Reserve; and Hamerlik stated that holding 2 auctions might be way to go to cut facilities. Capt. MacCarthy reported that last May's auction was slow, did previous year in September and auctioned off 153 vehicles and auctioned off 53 vehicles in May (had to hold 15 vehicles because of notification process), and had half year's auction in May. Mr. Schmisek reported they will meet with parties involved and fine-tune in 2 weeks time and bring back. Held in committee for two weeks. 1. Matter of sales tax for levee project. Michael Ruhm, clerk in attorney's office, stated Mr. Swanson instructed him to tell committee that if have questions need to direct to him on this matter, do either 1) wait for him, set a special meeting or hold for the next meeting; that he is unable to be here. Committee decided they could hold special election in January, would have time to wait until first finance committee meeting in October, and it was noted that they have to have 60-day notice. Committee stated that they need some discussion and to wait for Mr. Swanson. Carpenter made several comments, one is that the proposal that finance has discussed authorizing up to 1/2 cent, and thinks that's prudent manner to do, never was intended that half percent would be implemented immediately, anticipation is that Mr. Schmisek presented a number of months ago where looking at quarter cent that would be implemented but half cent would give ability to increase that if higher than projected numbers on the cost or if the State doesn't agree to participate in excess of $52 million or wanted to utilize some funds from sales tax to help keep down rate increases for water treatment with water treatment issue, and is some misconception in community that by asking voters to authorize up to half cent were automatically going to do half percent and in his mind is not the case, and half cent totally depend upon ultimate MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 8 costs of the flood protection and water treatment and impacts that would have on special assessments and/or water rates. Hamerlik stated that now that have some time to take hard look, question whether do it at that time or it may not be wise to have an election, thinks there's enough uncertainty and concern with public officials and going to be hard to convince a lot of people that if put a half cent on there that it's not going to be neces-sarily half cent, and need to consider whether quarter cent isn't better. Brooks stated he's heard a lot of input that people don't trust us, and have to overcome that and take look at, and some other things look at how funding, have to show citizens that we worked through whole process and not just dropped plan on them. Babinchak stated she thinks it's prudent to go up to half cent and doesn't think it's going to mean that going to implement that, that she would like to stay closer to quarter cent, have to be concerned that they can stay in the competitive market but still a lot of unknown costs that we don't know and to put in quarter cent and in year from now ask citizens to put in another quarter cent wouldn't be the proper procedure; need to get some public education out there and look at other options but going to need combination to fund this project, can't do all by sales tax and can't do it all by assessments. Bob Gustafson, Chamber of Commerce, stated that their chairman, Dr. Boyd expressed some concerns about the impact for business, that this summer they asked membership for feedback on the survey, and in asking question about support for quarter cent sales tax dedi-cated to this flood protection project which seem to think is a necessity, 62% of responding membership said yes, while 34% said no; strong indication that business communities sees that some form of support through sales tax is necessary; with regard to expanding to half cent, had chance to talk to number of retailers and there is lot of concern among retail community now, saw boom cycle last year following the flood, lot of concern that retail economy is quite soft, some traffic patterns changed after the flood and have not reverted back to Grand Forks, even for some residents. He stated they asked question re. support funding a portion of the levee cost of special citywide assessment and got a 43% yes against 50% no, and fairly optimistically in light of no prior discussion on this issue in terms of a citywide assessment as means to pay for a portion of a flood protection plan at that early stage. He stated he would like to echo concerns made re. going beyond quarter cent, that there is a genuine concern on part of consumer/citizen when we levy any kind of tax, and often times find ourselves at that cap; and at this stage his counsel would be that they have a very healthy and genuine discussion, faced with difficult task of finding a funding mechanism or variety of solutions to an important need that we have to provide security and safety for our businesses and residents and community as a whole. He stated that a quarter MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 9 cent and combination with citywide special assessment may not be enough at this point, but important for you to understand that to go beyond a quarter cent pushes us above the 7% factor in terms of sales tax including the state tax plus local share, and concerned about percentage as reality and what it means to trade-area shopper that look to Grand Forks as a place to shop and do business. He stated that Chamber stands fully supportive of efforts to continue or to begin serious public dialogue on this issue and how get to an educational process that one concludes that this project is essential and that find funding mechanism that place any more hurt in any one area than necessary. He stated if they lose retail trade it not only affects with this project but in other areas where have become reliant on city sales tax, and echoes concerns on behalf of retail community because those concerns may grow in months to come. Carpenter stated he understands retail owners concern about level of sales tax but also hear from homeowners and business owners about the level of property taxation and a special assessment across the city goes on property and there's concern about that; hear concerns from those that use large amounts of water and rates; and half cent is to let us have the flexibility to try to balance all those so don't end up relying too much on any one; is a matter of trust but constituents and business owners do have to try to trust the council that balance those issues, don't like to raise taxes any more and not one area more than another. Brooks stated that they need to look at total picture of how going to raise the money and that will help from a trust standpoint, if talking about quarter cent and special assessments, or some other way of funding, has some ideas and will bring in 2 weeks. Mr. Gustafson stated that if direction of financial leadership of the city can render up all possible logical scenarios that we can offer and put forward best plan, fear for concerns that exist amongst commercial community about tax, and concerns for property tax, etc. but through public dialogue and forums that invite public and business community in to discuss this and hopefully come up with a solution that will best meet our needs and tackle the project that seems essential. Babinchak stated they should have revisit of the meeting that Mr. Schmisek presented several months back on combination but need to get handle on special assessment portion first and get community input at that time to hear concern, voice opinions and consider other options at that time; and have to make decision re. election by last meeting of October or first of November. The matter was held for 2 weeks to hear Mr. Swanson's language/opinion and then set up special meeting for whole package. MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 10 5. Matter of authorization to transfer downtown properties to JDA. Mr. Schmisek reported that at last Monday's council meeting there was movement made to try to transfer property to JDA so that they could control sale and use of those and wouldn't have to go to JDA and back to council for approval; it was commented that an item was going to come up to authorize transfer of some downtown properties to the JDA and Mr. Swanson asked that it be placed on finance committee agenda, and action is to approve and authorize the transfer of downtown properties to JDA, and that will go back to council and by that time will have a listing of those properties as property should be detailed out as to which properties. Moved by Brooks and Babinchak to approve and authorize downtown City property to JDA (as per listing of those properties). Motion carried. 6. Matter of complaints re. cable television. Mr. Schmisek reported that Mr. Klave brought this item to public service about complaints from people in new areas of development where homeowners have requested cable in July and still don't have; that he has received several complaints about the frequent disruptions and length which seems to be increasing, and was referred back to finance because it normally deals with this and was suggested that the course of action would be to ask and direct the city attorney to send a letter acknowledging the complaints and contact TCI on this matter, and normally Mr. Swanson has been the contact with TCI. Hamerlik agreed with suggestion of sending letter to TCI, that don't have a lot of grip on it, prices, etc. and last time trying to get them to bury their cable deeper so that landscapers didn't bust it up but thought first a telephone call and then a follow-up acknowledgement. After further discussion Hamerlik moved that we verbally contact TCI and send formal letter acknowledging concerns that patrons and committee might have. Brooks seconded the motion. Babinchak suggested inviting TCI to come to next meeting, but Hamerlik stated that someone can give letters/complaints to TCI as well as to have a formal hearing. Upon call for question, the motion carried. 7. Information. Mr. Schmisek provided some information for committee re. article in paper re. 10 mill deduction in budget and copies will be forwarded to other members of the council. He stated that Mr. Carpenter asked for information over the past few years on taxable values, on how those have changed. He stated that the taxable MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 11 value has been rising fairly well and there is a note on the 1998 fiscal year which would have been 1997 valuation that had to be reduced because of flood and fire or the valuation would have been $71.8 million, that the projected valuation for coming fiscal year does not get back to that point. He stated that the next groups of information come from the assessor's office and Mr. Herz is here, and that is how the changes took place in various valuation. He stated that the top sheet is the 1997-98 summary and second sheet of that information from assessing details out the changes by agricultural, commercial, residential property and then by new construction, annexation, demolition, etc. revaluations, flood restoration (which is a $3 million number) and that does not include all the restoration. Mr. Herz stated that particular number was assuming any building that was repaired and put back on, the residential basement finishes were not included in these because didn't have time to get to all of those three times in one year but it also gave them an opportunity to get those things repaired before they went back. Mr. Schmisek reported that the next sheet is the year before that, 1996-97 comparison of taxable values and decreases, and second sheet is more detail and if look at fire/flood damage that was a reduction of nearly $6 million and have restored about 50% He reported that the next sheet is the changes and has been given to committee to review so get some comfort on how these things have changed. He reported that the next sheet is table 6 of audit and has been updated for the last two years of mill levies and have fluctuated somewhat in the total city and reason doesn't equal 137.27 because we have to levy the 4.7 for regional airport. He stated to keep in mind that last year's went up because of the two mills that were requested with not knowing where we would be, and that we have been higher than where presently at, and think need to keep that in mind, there is not an effort on City to continually raise the mill levy and again points out the share of the mill levy showing what share is City's of total package that they deal with. He reported that table 4 (of audit) highlights what actual property tax generated for 1996 was $9.4 million; in 1997 $9.062, and had they had valuation that were estimating pre-flood pre-fire and before added 2 mills would have generated $9.692 million in taxes and for 1999 are projecting $9.663 and aren't up to where had been pre-flood. He reported that the last sheet in that packet of information, taxes are going up based on changes in valuation, $601,105; and what he tried to do was relate the amount of change in taxes generated to the various categories of change - new construction and restoration, revaluation, expiration of new home exemption, MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 12 etc. and new construction and restoration creates a $654,935 in tax, and revaluation simply looking at market in different areas of the community and saying how have property values fluctuated, comes in little under $200,000, and have other categories, still partial reduction due to flood buyouts, and those will continue for a few years. There was a change in State law re. to public utilities that took them out of the real estate tax category and put into another category where funds will come from the State back to us. Mr. Schmisek presented information which is a comparison of the mill levies for the 13 largest cities in ND and also the taxes generated per capita, that the top sheet is a per capita valuation and taxation and Bismarck and Fargo are both higher per capita than the City of Grand Forks, but our mill levy is higher but Fargo's valuation is $140 million compared to our $66 million, that they get double per mill what City of Grand Forks does. Mr. Schmisek also reviewed 1997 mill comparisons for the 13 largest cities in the state, Fargo and Bismarck are lower but we are by no means the highest in the state (Williston, Wahpeton and GrAfton have higher mill levies) He stated we are not levying a mill levee that is out of line, that we provide a high level of services, and will try to put together more surveys and comparisons of all financial data. He stated they are going to look at service levels provided in different communities. Mr. Schmisek stated he was providing this information as he will be out of town Monday night but if there is a real push to reduce this by 10 mills he would hope they may hold it a week as they do have time and don't have to have to County until the end of this month; that he has real concern about lowering that mill levy and distributed copies of report why he has that concern. He reported they have done a two-year wage settlement this year - 3.65% for 1999 and 3% for year 2000, and for general fund that means have already built in for the wage increase, step increases, longevity and benefits relating to those approx., excluding police and health grants, $540,000 of a built in increase and if lower mill by 10 mills, spending down $700,000 of potentially an increasing fund balance. There is no guarantee that fund balance will increase because part of the fund balance last year was we had a very mild winter and need to keep in mind doing some estimates here, and concern if lower mill levy by 10 mills and cut that level of revenue stream out and looking at $80,000 of continuing revenue over continuing expenditures, not enough of a cushion - 1/2%, and really have to be careful if intention is to try to stabilize things for this community; and gave to committee for their review. Mr. Schmisek reported that only requirement for Monday night is that there has been an advertisement that final adoption will come for approval on Monday night so there can be a public hearing at that point, however, have right to hold public hearing and extend to a special council meeting. He stated that it's not required MINUTES/FINANCE COMMITTEE September 15, 1998 - Page 13 that they approve at second meeting of September, but do as that's regular council meeting, don't have to have to County until October 10 but like to have done by September 30 so would like to have final adoption sometime before that. Carpenter stated he would oppose the 10 mill reduction and thinks it's short sighted but with 6.6% increase, thinks important that 1996 levy year, for collections in 1997 was $9,425,624 and if compare that number with what will be collecting in 1999 only up $238,000 or 2 1/2% over two budget years, and in property tax increases , amount collected will have gone up significantly less than inflation over the last two years. Information only Mr. Schmisek reported that notice did go in with checks today for pension and also notices on bi-weekly payroll starting in October. Moved by Hamerlik and Carpenter to adjourn; meeting adjourned at 5:45 p.m. Alice Fontaine City Clerk Dated 9/17/98