COMMITTEE OF THE WHOLE - MINUTES - 9/27/2007
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO
APPROVED
MINUTES OF MEETING HELD SEPTEMBER 27, 2007
Mayor Johnson called the meeting to order at 6:30 p.m. and led those present in the
Pledge of Allegiance.
ROLL CALL
Present: Mayor Johnson, Ald. Snead, Pavelko, Borgman, Werner, Melcher, and
Schaefer. Ald. Fiedler was excused. Department Heads/Other Staff present: Finance
Department Supervisor Mueller, and City Administrator Sheiffer.
STATEMENT OF PUBLIC NOTICE
Recording Secretary stated that the meeting had been noted in compliance with the
open meeting law.
APPROVAL OF AGENDA
APPROVAL OF MINUTES
Ald. Schaefer moved for approval of the September 20, 2007 minutes. Ald. Snead
seconded; motion carried.
NEW BUSINESS
Continue Review and Discussion on Proposed 2008 Budget
Debt Service - Mayor Johnson turned the meeting over to the Finance
Supervisor, Sharon Mueller, to explain the Debt Service and Special Revenue Funds.
Sharon explained there are two funds in the Debt Service Fund. The first is the General
Debt Service Fund that is mainly supported by tax levy dollars, and the CDA Lease
Revenue Debt where source of revenue is generated from TID 9 taxes and is shown as
a transfer coming into the fund.
Combined principal and interest for this fund are expected to increase by approximately
$71,000.00 over the 2007 budget. To help compensation for the increases, transfers in
from the Conservation Stormwater and TID 8 funds will continue to be used until the
debt service has been reimbursed. Also included is a transfer from the Water Utility for
the 1991,1998 and 2005 debt obligations.
Total outstanding debt will be $20,300,474 by the end of 2008. The city’s debt limit
capacity is $112,031,821 as of calendar year ending 2007. Sharon provided the
Committee with three graphs indicating that debt service payments will continue to rise
and peak at 2009 followed by decrease until paid in full.
Committee of the Whole Page 2
September 27, 2007
Special Revenue Funds – Sharon explained that the Special Revenue Funds
are legally restricted for expenditures for specific purposes.
Subdivider’s fees through 2006 previously funded the Park Dedication Fund. Due to
uncertain decisions by state legislation, the main revenue is 10% of host fees from the
landfills.
The Recycling and Refuse Fund. The revenue is from the State Recycling Grant and
fees paid by the residents for this program. It is projected that this fund will continue
with a positive fund balance while maintaining the present rates.
Revolving Loan Fund. Originally set up with state funding of $320,000. The main
source of revenue is from interest recognized from the outstanding loans.
EPI Standing Committee Fund – Tracks revenues and expenditures related to
monitoring landfill operations. Currently receive $10,000, annually, from Onyx in
compliance with an agreement.
Cable TV Fund – Prior to 2007, revenues had been recognized from franchise fees but
are now part of the general operating budget, per decision of the previous
administration. Once this fund is depleted, expenditures recognized in this fund will
most likely be absorbed by the General Fund.
Landfill Fund – Host fees received from Onyx projected to be l.4 million dollars based on
tonnage of waste. Transfers are first 10% to Park Dedication and Conservation funds,
per contract, of $33,000 to establish reserves for well testing, per contract, $312,000 to
stormwater funds to cover future projects and debt service obligation, per contract and,
lastly, $242,000 to capital equipment fund.
Future Parkland Landfill Committee (old Briggs & Stratton sand landfill). Takes care of
consulting engineering fees for committee.
Well Testing Reserve Fund – for testing private wells when landfill closes, per contract.
Land & Open Space Conservation Fund – Due to uncertainty with State legislation,
nothing is budgeted for fees coming in. Only revenue is interest earnings and landfill
transfers.
Stormwater Management Fund – Estimated projects of $740,000 have been budgeted;
funding includes interest earnings and transfer in from landfill fund. Included is a
transfer to the debt service fund for it’s portion of debt obligation.
Rescue fund – Beginning with 2006, the process of billing customers was outsourced.
Revenue is generated from fees charged to rescue calls, per City ordinance, with
expenditures reflecting fees paid to Tess Corners under terms of the contract.
Committee of the Whole Page 3
September 27, 2007
Residual TIF/CAP Improve Fund – Funded costs of computer replacements. Included
are prior transfers in of positive tax increment distributions from TID #2-#7, which total
approximately $650,000.
TID #8 – Freedom Square – relates to 2001 project. Very little activity. Any future tax
will be applied to the audit fees, administrative costs and used to repay past borrowing.
TID #9 – CDA – Tax generated will also be applied to audit fees, administrative costs
and repay past borrowing.
Grants Fund – Grant funds come in and then go out as expenditures. Will always have
a zero balance.
GIS Fund – Originally created in 2005 in response to the Committee’s recommendation
to set aside funds for computer related expenses that will help improve GIS operations,
with the main sour of funding being a General Fund transfer in.
Recreation Ticket Sales Fund - Revenue recognized is from ticket sales and offset by
actual cost in tickets.
CDA Fund – Revenues are from interest earnings and transfer in from TID #9 only to be
transferred out to the debt service fund for future CDA lease revenue debt obligations.
Compensated ABS Fund – Prior source of revenue was landfill funds; revenues now
come from interest on investments, per the City’s new designated fund balance
resolution. Expenditures reflect banked vacation and sick leave payouts to terminated
and retired employees.
A discussion was held on revenue from cable operation and the secretary was asked to
send the franchise agreement to all aldermen for their review.
General Council Deliberation -
Mayor Johnson distributed paper on costs for Sunday hour operation. Ald. Melcher
nd
advised that there is a special Library Board meeting on the 2 Thursday in October to
discuss results of the survey. The Council would like the Library Director, or her
representative, to attend the COW meeting of October 18, 2007, to discuss costs
involved with Saturday and Sunday hours of operation. A question was raised as to the
utility costs.
At the request of the Mayor, the City Administrator distributed paperwork listing
Potential Funding Sources/Options for Budget Changes as well as Expenditure Budget
Item Notes Resulting from COW Discussions. Mayor stated that the main reason for
this handout is to receive direction from the Council. The items are from Department
Heads who disagree with items taken out of their budget.
Request/Rationale Cost
DPW Truck $128,400
Committee of the Whole Page 4
September 27, 2007
Normal Vehicle Rotation
After discussing request, it was the consensus that Public Works Superintendent Delikat
attend the COW meeting of October 18, 2007, to discuss this item. Capital Expenditure
Account funded by the Landfill could fund this item.
Request/Rationale Cost
Laptop computers for aldermen $14,000
Per Aldermen Requests
The committee agreed to defer this item to the October 18, 2007 meeting to allow Ald.
Fiedler to express his rationale.
Request/Rationale Cost
Squad car inadvertently not included in Budget. $24,000
The committee agreed to fund this squad car through the 2008 Operating Budget.
Request/Rationale Cost
Squad car removed from Budget by Mayor $24,000
The committee agreed not to fund this item in the 2008 Operating Budget.
Request/Rationale Cost
Fill Detective Position with Patrol Officer $5,162.43
To help with increasing caseload in the Detective Bureau.
Promote Two Patrol Officers to Patrol Sergeant $7,487.52
To implement a policy in which it would be mandatory to
have a trained supervisor on duty at all times.
Total with Benefits Minus $4,200 for Officer in Charge Pay $23,519
Ald. Borgman, Ald. Werner, Ald. Schaefer, Ald. Snead felt it important to fund these two
positions. Ald. Pavelko and Ald. Melcher voiced concern and request that Chief
Geiszler or his representative attend the October 18, 2007 to discuss further.
Request/Rationale Cost
IS Training $ 900
IS Consulting $ 1,500
The committee discussed the cost of training. Ald. Borgman complimented the Friends
of the Library for their continued generosity. Ald. Werner questioned if this training cost
could be taken out of this year’s undesignated funds. At the request of the committee,
Mayor Johnson will check on possibility of an existing employee being able to do
training on crystal in-house and Information System Director Joe Sommers is requested
to attend the October 18, 2007 meeting to discuss further.
Request/Rationale Cost
Management Analyst position for Mayor’s Office if proposed $54,222
Committee of the Whole Page 5
September 27, 2007
staffing alternative not workable ($ for 9 months)
Mayor explained that they are proposing two transfers within departments to avoid
hiring this additional position. Ald. Snead and Ald. Werner were concerned with moving
an employee to a lesser paying job. The reason for these suggestions is money
constraints. Ald. Pavelko questioned the savings, as Mayor’s position will be part-time
in April of 2008. Ald. Werner felt that it might be advantageous for the Mayor to remain
as a fulltime position. Mayor also mentioned that an enhanced telephone component is
being researched to help staff during busy hours. The consensus of the committee is to
proceed with existing staff and not fund in the 2008 operating budget.
Mayor reminded committee that we are in tight restraints with lower projected revenues
and more adjustments may need to be implemented.
Mayor summarized that it appears that approximately $40,000 will be needed and
questioned the committee if they would be willing to support a $.04 tax rate increase to
$4.65 per thousand-dollar assessment. He proceeded to go over possible Potential
Funding Sources.
Unpaid time-off on voluntary basis was an option discussed as well as further increase
deductible for health insurance plan.
The majority of the committee present was in agreement to look at a $.04 tax rate
increase, as there has not been an increase in the past two years.
ADJOURNMENT
Ald. Snead moved to adjourn at 8:21 PM. Seconded by Ald. Werner, motion carried.
Respectfully submitted,
Cathie M. Anderson
Recording Secretary