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07-26-1984 - Budget Workshop o o CITY OF EDGEWATER Budget Workshop FY 1984-85 Mayor Ledbetter called the recessed budget workshop to order July 26, 1984 in the Council Chambers in City Hall. ROLL CALL Mayor David Ledbetter Councilman Melbourne Wargo Councilwoman Gigi Bennington Councilman Neil Asting Councilman Jack Spencer City Attorney Jose' Alvarez City Clerk Connie Kinsey Present Present Present Present Excused Excused Present Also present: Karen Rickelman, Earl Copeland Mayor Ledbetter announced the first order of business is the Federal Revenue Sharing. Mrs. Rickelman answered some questions regarding the anticipated income for the corning year. She went over each department's out- standing amounts from previous anticipations. She explained that Mr. Kish has approved of her method in calculating these figures. The total revenue to be on hand will be $165,813. The Council went over the requests for reserve for equipment. There was discussion regarding the Refuse budget and the money needed to be transferred from Federal Revenue to Refuse in order to pick up the deficit. Mrs. Rickelman went down the Refuse collections figures, explaining that considering the over collection for the prior year and the anticipated over expenditure for this year we should have approximately $220 to the good. She explained the over expenditure was due to budgeting money in the Street Department for salaries for the Refuse men who worked in that department. Since the men actually worked in the Refuse Department, due to the work load, the salaries were paid from Refuse and caused the over expenditure. It was agreed that this money should be transferred from General Fund to Refuse where it was needed. Mrs. Rickelman explained how the Refuse customers figure was cal- culated. Mayor Ledbetter brought out the suggestion that those who have home occupational licenses should pay commercial rates for their garbage. Councilwoman Bennington added that people have to pay a commercial rate for a business phone in their home. Councilman Asting commented that the home occupation that is just for telephone purposes is not generating any commercial garbage. There was discussion regarding how the rates are established. Councilwoman Bennington suggested a more standardized method of determining the commercial rates. Earl Copeland answered questions from Councilman Wargo regarding the duties of the anticipated new employees. Councilman Wargo suggested the consideration of purchasing a trailer to be used on one of the pick ups and trying to have more efficiency in the department without hiring more people. There was conversation regarding three trucks and three routes in the City, which would take less time for the crews, and perhaps there wouldn't be a need for that many more employees. ~ o Mrs. Rickelman began going over each line item in the Refuse Department budget. The salary figures were changed, lowering the number of new hirees. Other contractual services was left as proposed. Vehicle repairs was left as proposed. Gas, oil and diesel expense was left as proposed, Transportation and utility services were left as proposed. There was discussion about the Insurance figure; it was explained this includes the possible new equipment that is being considered. At the beginning of tape 2, the conversation was wrapping up and Mrs. Rickelman read the total of the department budget $423,051. There was more conversation about the funds budgeted in the Street Department for salaries, and it was explained to Councilman Wargo that the unexpended funds can be reappropriated within the same fund, however. Councilman Wargo commented this budget will still function without going out for raises on the rates. Councilwoman Bennington again suggested uniform rates be established and a system be followed. Councilman Wargo questioned the interest rate we are receiving. Mrs. Rickelman stated the rate we are getting now is 10.6 which has fluctuated during the year. She added that $4,000 would be a safe amount to budget. This amount was agreed upon. Comparing the expenditures with the revenue, the Council con- sidered cutting the expenditures in order to balance the budget. Councilman Wargo suggested cutting out one more employee. Council- woman Bennington stated that we will have to do more than that, we need to come up with $36,000. Councilman Asting began conversation with Mr. Copeland regarding an incinerator, and whether this could be implemented to save money on the transporting of the trash. He suggested this could be constructed by the City crews; there was further discussion about an ~incinerator and how it would function. Councilman Asting suggested eliminating the new trash trailer ($47,000) and have Mr. Copeland investigate the possibilities of a burn pit. It was explained the $47,000 was not in the Refuse budget, it was in the Federal Revenue budget, therefore this would not help the situation. Councilman Wargo suggested transferring two employees to another department. City Clerk Kinsey explained this would not show a true picture of the cost to run the department. Mrs. Rickelman explained the Refuse fund is an enterprise fund and can be subsidized with millage tax money; it is a fund that is self supporting, like Water and Sewer. Councilwoman Bennington suggested keeping the millage rate the same instead of dropping it and putting the money into Refuse until we can get this on an even keel. This way we would not have to raise rates and we would not be increasing the taxes, they would remain the same. Mr. Copeland questioned whether the people and equipment involved with the trash pick up could be included in the Street Department rather than the Refuse Department? -2- Budget workshop July 26, 1984 ~ o Councilwoman Bennington explained this would result in the same problem in the General Fund. If we just leave the millage as it is now we will have the income needed, and this would not hurt anyone. There was discussion pro and con regarding the millage rate being set the same as last year or being rolled back. There was also discussion with Mr. Copeland about the employees who are charged to the Refuse Department being transferred to the Street Department. Mayor Ledbetter asked for a breakdown of the commercial accounts and the residential accounts. Mrs. Rickelman commented that she has prepared such a breakdown in the past and it was not used. It was requested that Mrs. Rickelman'figure up the cost for the employees to be transferred to the Street Department, and the equipment cost involved. There were questions posed by Mayor Ledbetter and Councilman Wargo regarding the depreciation on the equipment. City Clerk Kinsey reminded the Council that Mr. Kish from Brent Millikan explained the reasons for depreciation to the Council at audit time. At this time Mayor Ledbetter began conversation regarding the hiring of a Building Inspector. There was a lengthy discussion among the Council members and City Clerk Kinsey regarding this. Mayor Ledbetter was asking Council's decision as to whether the man's pay check should be signed. It was agreed that the mayor should sign the check. He informed Council he was going to check with his attorney prior to doing so. There was discussion at this time regarding the requirements for setting the millage. Council recessed this meeting until Tuesday morning at 9:00 A.M. Minutes submitted by: Debbie Sigler -3- Budget workshop July 26, 1984