May 23, 2017

The Enterprise City Council and Budget Committee held a special Budget Hearing to receive the budget from the Budget Officer, review he budget and receive public comment at 6:30 p.m.

Those Present: Budget Committee Members Kurt Melville, Margie Shaw, Kim Stoffel and Jody Berry, Mayor Stacey Karvoski, Councilors Chris Pritchard, Larry Christman, Dave Elliot and Micah Agnew, Fire Chief Paul Karvoski, Police Chief Joel Fish, Public Works Director Ronnie Neil, Librarian Denine Rauntenstrauch and Administrative Assistant Lacey McQuead.

Mayor Karvoski opened the meeting and asked for nominees for the Chairperson. Councilor Christman nominated Kurt Melville for Chairperson and Budget Committee Member Kim Stoffel seconded the motion. Mayor Karvoski asked for a vote. All were in favor.

Guests: Gina Birkmaier

Lacey read the 2017-2018 Budget Presentation provided by Administrator Michele Young.

Chairman Melville opened up the discussion and asked for any questions.

Mayor Karvoski stated that when reviewing the Budget Financial Comparison sheet, she noticed there was 40% of Gina’s salary missing from the calculations. Lacey stated the remaining 40% came from the sewer department.

Councilor Agnew asked if the parks grant has been received yet. Ronnie Neil responded no.

Council Chrisman asked if he could provide an explanation and stated that in order to spend funds, those funds have to be listed in the budget. You cannot receive funds not listed in the budget and then spend those funds.

Councilor Elliot stated that he was concerned with the extra 3.5% charged to Pacific Power for franchise fees. He explained that by state law we can choose to increase it from the original 3.5% but it is just an added hidden tax not necessary. Chairman Melville stated that was more of a council decision and not a budget committee.

Committee member Jody Berry asked about the $6,000 in the DTF line. Chief Fish responded stating they used to have a Drug Task Force and he had asked for $6,000 for equipment. Mayor Karvoski asked where the $6,000 revenue was coming from and Chief Fish was not sure. Lacey will forward that question on to Michele Young.

Councilor Agnew asked Chief Karvoski about the Capital Outlay increase. Chief Karvoski explained that there will be a double payment made on the fire truck.

Chairman Melville stated that the resources and expenditures went up about the same, which comes from the listed grant and asked to move on to the next portion.  

 General Fund Police Department

 Chairman Melville asked Lacey if he heard correctly that there would be four officers for a period of time. Lacey explained that there will be four officers and the Chief for a period of four months.

Councilor Pritchard asked Chief Fish about the $6,000 listed for property evidence. Chief Fish explained that was for our property evidence person and with the increase in activity, the cost went up.  

Committee member Berry asked Chief Fish for an explanation regarding city court. Chief Fish explained that we used to have Municipal Court, but not any longer. In order to enforce ordinances, we have to at least have a Hearings Officer and that is what was decided on.

Chairman Melville stated that everything else looks about the same other than the increases in PERS which is up across the board.

Councilor Elliot asked why we didn’t have anything budgeted for the new equipment with the new vehicle coming. Chief Karvoski explained that it comes out of the Revenue Sharing Fund.

General Fund Street Department

 Ronnie Neil explained that there really aren’t many changes in this department. Other than the transfer for the street sweeper. However if you look in Fund 15 Capital replacement fund it says total amount to be transferred is different that he expected. He stated he will have to ask Michele about that.  

Ronnie Neil went on to explain that he budgeted a little more for the boot allowance as the guys are asking for it with negotiations.

Councilor Agnew asked about line 19, Street Trees for $3,500. Ronnie explained that was for the trees on Main Street and the highway, however there are still funds in the Park’s Department for tree maintenance.  

Councilor Pritchard asked what the CDL exams are for; are they for medical exams. Ronnie answered yes.

Airport Fund

Public Works Director Ronnie Neil stated the Airport is about the same as last year. We had to add an increase the expenditure in weed spraying because it was a little more than expected last year. Other than that there was minimal change.

Library

Librarian Denine Rautenstrauch explained there are not any significant changes. You will see a change in internet because phone and internet are now combined into one line item and before they were billed together. It was really confusing last year because I was billing to internet and nothing was coming out of there phone fund. She thought this would make it much easier to track.  

Councilor Agnew asked about the schools and trainings increase. Denine stated that she never requested the increase, but thought it would be a good idea to leave it in there and take advantage of some of the training. Budget Committee Member Shaw asked if the county library closes down, will there be funds to help. Denine responded; at this point, if the county continues to do what they are planning and follows through with their decisions, they have to figure it out. I do not anticipate that anything in this budget is going to go to helping the county with the problems they are facing.

Chairman Melville noticed last year’s budget was significantly higher and wondered why. Denine explained it was the grant for the elevator and that is now completed.

Chairman Melville asked if there was any further discussion regarding library, then proceeded to the Fire Department.

Fire Department

Fire Chief Karvoski explained there is a couple small changes up and down and we are making a double payment for the firetruck. Budget Committee Member Barry asked about the retirement not being in the budget. Councilor Agnew explained it was due to the restructure of the fireman stipend. Ms. Barry asked for further explanation. Chief Karvoski stated that right now they have nothing, so he cannot answer that. Councilor Agnew explained that how he understands it, the City has to restructure the way the volunteers are reimbursed. Councilor Christman stated the way we were doing it is illegal, so we are trying to come up with a different way to handle it.

Parks Department

 Ronnie Neil explained that there aren’t any changes in this budget. He further explained there was $55,000 budgeted in the Warde Park Improvements line. A portion of that has been spent but it is not expected that the remaining will be spent prior to July 1^st. Denine asked if it was anticipated that any remaining funds be spent before July 1^st. Ronnie stated that he called and asked for a schedule but he doesn’t believe the contractors will get to it before then. Councilor Christman stated that the funds will just be pushed to the next year. Chairman Melville asked if a note can be made to have Michele switch the remained to 2017-18 and make sure it’s changed on the resources side as well.

Mayor Karvoski asked why we aren’t budgeting any more money for Warde Park in case something goes wrong. Ronnie explained that there is funds available in the Parks Department if needed.

Budget Committee Member Shaw asked if Ronnie knew of any funds that had been received from the Warde Family. Ronnie explained that funds that they previously gave us is what helped start the Warde Park Project.

Administration

Lacey began by explaining that other than the increase to 24 hours for Gina Birkmaier, we are also anticipating a 6,000 cost for vacating the rest of the right away over by the football field. Part of it was vacated when the fieldhouse was built.

Committee Member Berry asked about the City Hall Improvement funds. Lacey stated that she was not aware of what they were specifically for, but would ask Michele.

Councilor Pritchard asked why we were giving money to the County for the GIS system if we have our own. Ronnie explained that ours is specific to water and sewer lines and that the County information is related to properties and property owner information. Councilor Pritchard asked if we know whether the County GIS system is up to date. Chief Karvoski stated that he believes it is. 

Capital Replacement Fund

Councilor Pritchard asked if the $6,100 listed for the street budget is just what you’re trying to build up. Ronnie responded, yes.

Chairman Melville asked about the decrease to the Wastewater Capital Outlay on page two. He stated Michele made a note on the first page that this will receive 25,000 from the sewer fund, yet it has a transfer of 100,000 showing on the second page to the sewer fund. Mayor Karvoski stated by the looks of it, that might have been a note accidently kept in from last year.  

Ronnie added that there was also a note about a part time parks person, however there is not going to be one hired for this next year.

State Tax Street

Lacey explained the increase in the population count, the reason for the increase in the State Highway Apportionment Resource.

Chairman Melville asked if there were new curbs going in. Ronnie stated the funds are budgeted for repairs.

State Revenue Sharing

Chief Karvoski stated this is the fund that will cover the vehicle for the Police Department. Chief Fish explained that the Tahoe will not be here until July 1^st so it’s in there for next year.

Motel Tax

Committee Member Shaw asked about Air B&B’s and how we know when a new one opens up. Lacey stated they are expected to pay the Motel Tax but it is difficult to enforce if we are unaware one has opened. This is something that has been a topic of discussion for some time.

Councilor Pritchard asked about the Enterprise Opportunity Fund. Councilor Christman explained that it is for projects that don’t meet certain criteria that might be required by the Motel Tax Grants.

 Water Fund

Ronnie stated the Water Improvement Project has decreased and the utilities for the well have increased. He believes it is because of the amount of time we had to run it this year. Councilor Elliot asked if there was a way to decrease that cost. Ronnie explained that the well right now is pumping every 17-18 hours for one hour. Our spring system right now is about 12 hours. Councilor Elliot asked how far down the reservoir goes before is kicks on. Ronnie answered 34 feet. Councilor Elliot asked if there was a way to let it go down further before coming on. Ronnie explained that is something that we have to play with a little bit. We don’t want to lose pressure up on the hill.

Wastewater Fund

Ronnie began by explaining this fund has always been a problem. The revenues just aren’t enough to cover the expense. There aren’t a lot of changes as far as expenditures other than Lacey did find that the Blue Cross cost was not included in the calculations. This was brought to Lacey’s attention by a councilor. Lacey explained it’s estimated to be around $55,000.00. Ronnie stated that the Contingency Fund is $58,640, so we are going to have to take from the Contingency fund to make up for the Blue Cross. This means if something goes wrong, we are going to have to borrow from another fund. Councilor Christman explained that the Public Works Committee will be bringing some future plans to the City Council to help increase the sewer fund revenue. Previously the apartment complexes were lumped into the same as hotel when it came to sewer charges, so the billing needs to be addressed.

Historic Preservation Fund

Chairman Melville stated that it doesn’t look like there is much changing in this fund.

Mayor Karvoski asked for specifics on the increase to the Special Projects. Lacey responded explaining that she was unsure on specifics as to how much and which project, but she would speak with Michele and have an answer for them.  

Councilor Elliot asked about the wages in this department and what they are for. Lacey explained that a portion of our wages for administrative duties goes to this.

Chairman Melville stated that the review for everything is complete. He asked for any further discussion.   

Mayor Karvoski stated that we need to know whether or not the Warde Park funds need pushed over and the same for police car. Chief Fish explained that the police car is in the budget for the 2017-18 year.

Budget Committee Member Shaw moved that we accept the budget with the necessary corrections made including reviewing the questions asked throughout the meeting. Councilor Christman seconded the motion, motion passed unanimously.   

Meeting closed at 8:00pm.

                                                                                          ________________________________

                                                                                          Stacey Karvoski, Mayor

ATTEST:

_______________________________________

Lacey McQuead, Admin. Assistant