Budget Work Meeting Minutes
City Council
City Council Chambers, Ephraim City Hall
5 South Main, Ephraim, Utah
May 11, 2016
6:00 pm
Call to Order
The Ephraim City Council convened in a budget work meeting on Wednesday, May 11, 2016, in the City Council Room. Mayor Squire called the meeting to order at 6:00 p.m.
Ephraim City Council Budget Work Meeting | May 11, 2016 | Page 1 of 4
Roll Call
Members Present Richard Squire, Mayor
Margie Anderson, Mayor Pro Tem
Tyler Alder
John Scott
Alma Lund
Richard Wheeler
Staff Present
Brant Hanson, City Manager
Marcus Gilson, City Attorney
Leigh Ann Warnock, City Recorder
Steve Widmer, Financial Director
Ephraim City Council Budget Work Meeting | May 11, 2016 | Page 1 of 4
I. Discussion Agenda
A. 2016-2017 Fiscal Year Budget
Steve Widmer referred the Council to a copy of the budget proposed at the last Council meeting. Some changes have been suggested. He reviewed the revenues, payroll, and capital projects and gave them a handout showing the City’s major revenue sources which helps to see where we are and where we are heading. It includes property taxes, sales tax, other taxes, fees, and utilities.
We have a balanced budget in the General Fund as it was presented last week. The new building inspector will be hired at $24.00 per hour and will be full time and receive benefits. With the new employee, we will not need to work with the County Building Inspector and pay those fees. He will oversee infrastructure improvements and residential inspections. The title of the new person will actually be Combination Inspector because they will also be dealing with zoning issues. Generation of revenues could happen if there is time for this person to do inspections for other cities in the county.
Intergovernmental Revenues were reviewed. A grant will be applied for to add an additional police officer. If granted, it would pay for three years and then the City would take over payroll at that time.
We are proposing the increase approved for the Fire Protection Fee be put into the Fire Department Fund. The firemen, who will now start earning wages, will use that money. We will continue to send $2.75 to the Fire District and .25 to administrative fees.
We have had a volunteer Fire Department to this point except for a small stipend for gasoline. It has been proposed the Fire Fighters be given an hourly wage for any work done for the City, whether it be firefighting, training, education, etc. The Chief will become a full time employee. Wages are based on years in their certification, comparable with other fifth class cities in the state.
Benefits: Christmas bonuses will remain the same, as will FICA. Health insurance went up 3 ½ %. PEHP does a great job keeping the rates low. Dental went up by 3%, vision and life stayed the same.
A 3% increase is proposed for the Mayor and City Council in keeping with what we are doing for other employees not slated for an increase based on the compensation study. Brant is still seeking guidance from the state to see what increase is required to be given to the judge.
We are adding $15,000 to the budget if the City pursues a contract with the Ferguson Group for helping us in DC with federal grants. They will let us know what grants are available and help with writing them.
The increase in the Finance Department reflects moving two part-time employees to full-time. Community Development is requesting a new plotter with a scanner, which will be used by the Building Inspector as well.
General Government has gone down because we hired a part-time building janitor instead of contracting with an outside company to do that.
Police Department: There is a new officer included based upon receipt of the grant mentioned above. That will change if it is not granted.
$35,000 of impact fee money will be used to help with construction of an addition to the Fire Department Building to accommodate their equipment. Another $15,000 will be put in the Streets fund for repairs. $12,000 has been added for a street roller to the water and sewer funds.
Recreation Department: Things are going on at the federal level requiring an increase in the director’s salary. $1,000 has also been added for a trailer for the Kubota to help move things around.
The budget is balanced.
Discussion arose regarding possible increases in water rates in the next year. Brant suggests a 3-5 year plan so increases are not hitting the residents all at once.
Steve and Brant both declared they are comfortable with the budget as it stands. The budget is a living document and amendments are made throughout the year. Department Heads were challenged to find areas where funds were too liberal. We are still liberal but we have a 25% cushion. We are liberal on the revenue and tight on the expenses. We have been working on projects, and are focusing on taking care of our employees this year. The compensation study was a big thing this year. The Council feels we are doing a lot this year with the money available.
In this next year we are planning on budgeting for some capital outlay “welcome to Ephraim” signs. $3,000 has been set aside for the amphitheater, and we will receive $6,000 rent from the Fire Association for storing their equipment. Several grants have been received for projects this year.
The debt service is $117,000; interest $23,000.
$5,000 more estimated in sales in sewer funds. We normally budget 1.8 million for outside power which has been decreased by $2,000. Both Cory and Ted are comfortable with that. Cory wants to buy a new truck and a locator in this next year.
We would like to transfer out $87,000 in the Fire District fund to the General Fund to help with expenses for the Fire Department.
ECHA wants to build four houses next year. The Commercial Subdivision has a depreciation rate for the fence/curb/gutter and $5,000 has been added to balance that out. The Airport is receiving some grant funding in the amount of 1.2 million for a project to fix up aprons and taxiways. The state will be granting us money and in addition FAA has found some appropriation money. On the revenue side, both Manti and Ephraim are putting in $12,000.
Steve reviewed the Debt Service with the Council. Two bonds will be paid off next year and property taxes will go down a little bit if no other G.O. bonds come up. The City has 6.8 million in debt. 40 million is allowed by the State. Our goal is to always stay under 10 million.
Brant gave the Council a spreadsheet with the compensation study and new rates which have been built into the budget. The Firefighters have also been added. There has been an increase in salaries across the board. No increases will be based on merit; all the same with behavior correction done or let go. Brant and the Mayor feel this is more equitable for everyone. We will be adopting a compensation policy for the next 4-5 years at our next meeting.
Council did not see any adjustments they feel still need to be made to the budget. The Mayor said they are slowly defining what the City is and what we need to provide.
Adjourn
There being no further discussion, Councilmember Scott moved the work meeting adjourn. The motion was seconded by Councilmember Lund. The vote was unanimous. The motion carried.
Minutes Approved:
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Mayor Date
Attest:
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City Recorder Date
Ephraim City Council Budget Work Meeting | May 11, 2016 | Page 3 of 4