04-A City Council Min 8-27-07 - Laserfiche WebLink

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*The City should retain 25% of its FY 07-08 budget expenditures for catastrophic events, such as tornadoes, ice storms, major explosions, etc. . **It is proposed that the City set up an Equipment Replacement Fund, starting at $1,250,000 supplementing this Fund each year with $100,000 to $150,000, and not use the Fund until Budget Year 2011. This will allow the Fund an opportunity to grow through budget supplements and earned interest. It is anticipated that a Department would budget for the difference between the original price of a piece of equipment and the purchase price, that difference being budgeted by the Department and the Equipment Replacement Fund would fund the difference. This will require multi-year programming to balance the Replacement Fund, especially as it relates to fire replacement equipment. Most major rolling stock budgeted this year in both the General Fund and Water and Sewer Fund will be leased for a period of three (3) years, as has been done during the past budget year. The City has disposed of more than fifty (50) pieces of rolling stock since February of 2007, and there still is too much redundancy in some departments for back-up. The City should consider adopting a policy that when a new piece of rolling stock is budgeted it is designated to replace a current piece of rolling stock that should be removed from the City's inventory during that fiscal year. This budget includes the consolidation of two (2) pay plans that were adopted several years ago, which appear to have created a deep morale problem. The combination of these pay plans should reduce employee criticism, and with the extension of time for the new pay plan to reach maximum compensation for each position, should improve morale. Included in this budget is a 3% increase in base pay. The cost ofIiving index had increased about 2.7% in July, 2007. With this increase in base pay, also included are increases in associated benefits, such as: the City's share of taxes, taxes, retirement, and unemployment insurance. Several position re- classifications in the Compensation Plan have been made. Two (2) of the position re- classifications are the result of high turn-over for the past several years. Also included are two (2) new positions: Administrative support for the City Manager, and an additional dispatcher. In an effort to clean up and improve our City's appearance, the City will contract out a detailed mowing schedule, as well as transferring Bywaters Park, the Plaza and Farmers Market areas to the Main Street program. The remainder of the grass-cutting and manicuring will be accomplished by the current City staff. The Water and Sewer Fund balance may move from a negative to a positive position at the end of September, 2007; the staff is working very diligently to that end. The Water and Sewer Fund has many needs, several of which will be met during the FY 07-08 budget year. The Water and Sewer rate increase will make more funds available for water distribution improvements and sewer line replacement; however the City cannot adequately address the major problems in these areas unless it has a large infusion of dollars. The City may consider using the available funds for payment on Certificates of Obligation that would give the City the ability to make long- overdue improvements quicker.