07/30/2018 & 08/01/2018 Special Commission Budget Meeting Minutes

Valley City Special Commission Budget Proceedings
Monday, July 30, 2018
7:00 AM Meeting, City Hall

President Carlsrud called the meeting to order at 7:00 AM.

Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell, Commissioner Erickson.

Others Present: City Administrator Schelkoph, Finance Director Richter, Deputy Auditor Klein, City Attorney Schoenack, Police Chief Hatcher, Fire Chief Retterath

New Business

Continue discussing first draft of 2019 Budget

The commissioners listened to the following requests made by VC organizations:

Theresa Will, Executive Director for City County Health requested the city increase the support to CCH by 5% from $25,515 in 2018 to $26,791for the 2019 budget.

Amy Pederson, Recreation Manager and Ashley Martinson, Office Manager with the VC Park District requested $20,000 continued support to help with the operational costs of the Recreation Center.

Jennifer Feist, Director of Development for VCBC Development Corporation requested approval of $32,000 from Fund 240 for administrative services. That is an increase of $2,000 from last year.

Kaye Vinje, Executive Director of the Valley City Area Chamber of Commerce Board requested approval of $12,000, the same as in 2018.

Bobby Koepplin, Visitor’s Committee Chair requested approval of the Convention and Visitors Bureau (CVB) budget of $82,000. Occupancy Tax revenue is the source for CVB funding and the amounts disbursed is dependent on its tax revenue.

Bobby Koepplin, Visitor’s Committee Chair requested a $500 increase for the Beautification Committee to $4,500. The revenue source for the committee is from city sales tax dedicated to Retail Image Enhancement Fund 242. Commission approved using Retail Image Enhance funds for the committee on 04/15/14.

Chris Redfearn, Chair for the VCSU Department of Music represented the VCSU Community School of the Arts requested $1,500 for Valley Voices, same as in prior years.

Richter reported that the Valley City Troubadours requested $1,500 for 2019 which is the same amount as requested for the last 20 plus years.

Richter also reported that Community Services again didn’t need to request funding for 2019.

Fire Chief Retterath presented his department’s 2019 budget. He will be retiring at 2018 year-end and will be working on a new hire to replace him in the fall of 2018. Included in his budget is a part-time position for 1000 hours to continue as Preplanning Facilitator. Firefighters compensation increased by 2.3% (COLA). The other operational expenses for the fire department didn’t have significant changes for 2019.

The back entry to the fire hall needs to be replaced, so Fire Chief budgeted $5,900 in Fund 225 for that update. Also in Fund 225 is a $30,000 line item to go towards the addition to the Fire Hall. The addition is basically for the Rescue team and its equipment. The calls are for these services are typically outside of the city. The cost for the addition is estimated at $440,000. The City will be asking the County to contribute at least 80% of the cost. The City budgeted $30,000 for 2018, now in 2019 and again in 2020.

In the Renew and Replacement Fund 230 for the fire department, Gary is requesting $75,000 budgeted to go towards the replacement of the pumper truck with the plan to purchase one in 2022. Also in his equipment replacement fund is $18,000 for new pagers. The Fire Chief will submit a Homeland Security Grant application for 95% reimbursement. The last application was denied so he is hoping for success with the next application.

The Commission directed the Finance Director to increase the transfer from Electric Fund 601 to the General Fund by $100,000. The City is still well below the 20% of Public Works revenues available for transfer to the general fund for property tax relief. As for the 2019 Employer’s contribution to the HSA, it was recommended by Commissioner Erickson to keep it at the same as in 2018 with the employee required to match $420 for a family policy, $340 match for a single with dependent policy and $300 match for a single policy.

At 8:45 AM Meeting recessed until Wednesday, August 1st at 7:00 AM

Valley City Special Commission Budget Proceedings Reconvened
Wednesday, August 1, 2019
7:00 AM City Hall

President Carlsrud called the meeting to order at 7:00 AM.

Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell, Commissioner Erickson.

Others Present: City Administrator Schelkoph, Finance Director Richter, Deputy Auditor Klein, City Attorney Schoenack, Police Chief Hatcher, Fire Chief Retterath

Continue discussing first draft of 2019 Budget

As directed during the July 30 budget meeting Richter increased the Electric Municipal Utility Transfer to the general fund by $100,000 from $900,000 to $1,000,000.

To maintain 30% cash reserves for 2019 appropriations, Richter increased it by $28,814, from $890,000 to $918,814.

Richter also added a 2018 transfer into the general fund for $494.30 for the purpose to close-out Fund 309 which is the retired 2005 General Obligation Bond Debt Service Fund used for financing the reconstruction of the Rainbow Arch Bridge.

After a comparison of the Commissioners salaries to salaries in Devils Lake and Jamestown, the city’s salaries for our governing body lags a bit from the other cities. Keeping in mind of the vast amount of permanent flood protection construction projects and infrastructure construction project that the Commissioners deal with on a regular basis and will need to continue to for the years to come, a salary equivalent to these other two communities is reasonable. After a lengthy discussion the salary for the governing body was increased in total by $7,175 for the five elected officials. The recommendation for the 2019 salary for the Commission President is $14,250 and for each of the four Commissioners an annual salary of $9,500.

The result of the above changes is a decrease to the first draft of the preliminary budget from 82.7 mills to 78.74 mills which is 3.96 mills. It’s a decrease of 1.13 mills from the 2018 budget. Residential and Commercial properties that didn’t have any change in their valuation will see a slight decrease in city’s property taxes from the prior year.

President Carlsrud asked the Commission and staff, if anyone had other items regarding the 2019 budget that they’d like to bring up for discussion. In hearing none, the Commissioners were ready to vote on the next two agenda items.

Approve proposed 2019 Salaries for the City of Valley City

Commissioner Bishop made a motion to approve the 2019 Salaries as presented and as updated during the Budget meetings. Commissioner Powell seconded the motion.

In discussion City Administrator reminded the Commission that this motion includes all departments within the city, more specifically the departments included in this budget and the Public Works departments. Public Works will be preparing their budgets later this fall. The 2019 salary schedule has a 2.3% COLA and a step increase for staff and increased Governing Body as recommended during that discussion. Motion passed unanimously.

Approve 2019 Preliminary Budget

Commissioner Powell moved to approve the 2019 Preliminary budget with the changes that were made as directed during the budget meetings by the Commission. Commissioner Magnuson seconded the motion. Motion passed unanimously.

Motion adjourned at 7:50 AM

Dave Carlsrud, President of the
City of Valley City Commission

Attested to by:
Avis Richter, City Auditor
City of Valley City

Posted in City Commission Minutes.