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Home My WebLink About05-19-2011 Regular MeetingSTATE OF ALABAMA )( COUNTY OF BALDWIN )( The Budget Committee met at 1 :00 p.m., City Hall, Delchamps Room, 161 North Section Street, Fairhope, Alabama 36532 , on Thursday, 19 May 2011. Present were: Stan Grubin, Chairman Members: Mayor Timothy M. Kant , L01mie Mi x on , Charles Zunk and Gail Gardner. Gregg Mims, James Gillespie , Nancy Wilson , Rose Fogarty, and Lisa Hanks were also present. Stan Grub in called the meeting to order at 1 :00 p.m. and began by briefly stating the goals for the Committee which will become part of the budget. Chuck Zunk stated the importance of the budget process is making the best assumptions as to how things will roll out next year ; what the next fiscal year will yield for the City. The garbage fees , if waived, would be built in as a revenue deduction clearly noted in the budget. We will look at the assumptions and construct the budget; the differences can be analyzed for future budget. Debbie Quinn said there is a Waste Water Treatment Plant Study in progress and she hoped the study would be back before the Utilities are looked at in this budget process . She also stated the City is going to hire a consultant to help with pay s cales and the merit and promotional raises should wait until this study is complete. Mayor Kant mentioned the need for the Finance Committee to meet and give goals of the Council for the Budget Committee. There should be a meeting with the City Council before voting on the budget. Gregg Mims stated staff is here to work with the Committee. There are a number of projects which need to be in the budget: Greeno Road Sidewalk Project, AS-400 replacement, NEP Grant, Fairhope Baseball Project, and the insurance true-up . Mr. Mims said that James Gillespie , Nancy Wilson , and Rose Fogarty along with himself would be working with Department Heads to get all of the information together. We will stay out of the politics of the budget. We are looking forward to putting the budget together. Mr. Mims stated that any raises should be based on the results of the study . Nancy Wilson mentioned the system worked well for the City. We made mistakes along the way and can hopefully correct this time. Health Insurance will be looked at and the OPEB will be on the agenda for Monday. We need to get a better handle on large items. .. Budget Committee Thursday, 19 May 2011 Page-2- Rose Fogarty said the spreadsheets have been passed out for Department Heads to complete and explained to Department Heads that if they change their Capital Improvement List to make a notation. Gail Gardner was welcomed as a member of the Budget Committee. Ms . Gardner said she was learning the process . Mayor Kant suggested that Uti li ty Fund transfers be a focused on a dollar amount and not a percentage because once you transfer out of the fund you cannot put the money back into it. This would give capital outlay more money. Mr. Zunk stated he would like to endorse those comments from Mayor Kant. Once you pull out transfers too fast, you can't put back in the fund. Mr. Grubin explained this year's Budget Process and the dates of the meetings . He said the next meeting is May 26 , 2011 from 10:00 a.m. until 3:00 p .m . Mr. Zunk stated the budget would need to be presented to the Council the week before the Financial Advisory Committee meeting on August 22 , 2011 . Mr. Mims mentioned the need for a line item on the budget for Grant Matches and put aside money for same. Mayor Kant commented the Council is always asked for money and planning for the unknown. Mr. Mims stated that Sherry Sullivan sent all entities a letter who consistently asks for money. Ms. Quinn briefly explained how sometimes the grant is due immediately or we only have a specific length of time once we are aware of the grant. Mayor Kant said most grants are not usually more than $100,000 to $200,000. He said the budget is a tool to work with and keep you on track. There being no further business to come before the Budget Committee, the meeting was duly adjourned at 1 :41 p.m . ~.JL.L_ Stan Grubin, Chairman ,,. Tonight as we begin the fonnal planning process for the upcoming fiscal year which starts on October 1st it is important to take note of Fairhope's current financial status, the overall financial situation of the City's residents, and the strategic financial planning goals established two years ago by this Council. In 2008, the City monthly expenses were equal to the monthly income. The City was borrowing from a 2 million dollar line of credit to make sure there was enough money to pay the bills as they came due. We had no reserve funds for emergencies and we were entering into a national and statewide recession . The City council, working with the Financial Advisory Committee, department heads and staff, was able to over come these difficult times without reducing City services and without cutting personnel. The Council had to make some hard decisions, such as: initiating a salary and hiring freeze; adjusting fees for use of city facilities; enacting a sales tax and requiring that one-half of that tax money be set aside in a true "rainy day" reserve fund. As a result, by end of this fiscal year we will have 4.5 million dollars in that reserve fund for emergencies, should they occur. We stopped transferring the majority of the profits from the 3 utility departments into the general fund. Now we leave approximately 35% of the profits in the departments. This has enabled them to replenish inventories and generally upgrade the departments. As a result of these decisions, we now have cash reserves in the general fund as well as all 3 utility funds. In the recent annual report, outside independent auditors stated : "There is strength and promise for continued economic good health for the City of Fairhope ." In addition, the City Credit rating by Standard & Poors rose to a rating of AA. So, as responsible stewards of the City's finances, how best can the Council strike a balance between the need to keep Fairhope's finances strong and assist its individual residents in this extraordinary time of economic stress? In my view we will accomplish this by directing this year's Budget Committee to draft a balanced budget attaining the following goals: 1. Maintain and improve the City's overall financial condition as measured by the auditors; 2 . Incorporate into the budget, funding for infrastructure improvements including but not limited to street paving, traffic flow improvements on Greeno Road, improvements to the waste water treatment plant, and a new water tank and connecting lines for the north section of the City; 3 . Set aside money to fund merit and promotional pay increases for City employees; and, lastly • 4. Include a one year cancellation of garbage, trash & recycling fees to all Fairhope City residences, commencing October 1, 2011. This is the only service provided by the City that pertains to all citizens who reside within the City limits, thus making the benefit equal for all city residents . AND NOW, is the time to provide our city residents with financial relief during this time of economic stress. The following individuals are appointed to the Budget Committee for 2012 and are charged with meeting the aforementioned goals: Stan Grubin, Chair Gail Gardner Charles Zunk Mayor Tim Kant Councilman Lonnie Mixon Fairnope 2012 Budget Preparation Calendar for year 2011 Activity Date Time *Whom? Organization, goals & 5/19/11 1-2 PM c,s * C=Committee S=Staff D=Department Heads timetable Thu Dept Heads present Capital 5/26/11 10-3 PM C,S,D All meetings in DelChamps room Requirements 5 Year view Thu prioritized (last years format) Committee=Stan Grubin , Lonnie Mixon , Gail Gardne r, 1:inalizi Capital c_, .. ~ ~ ,.. .... _,..,, r I'-._,... Mayor Kant and Chuck Zunk D . --.----·I ■-11.S Wf!tr' Staff=Greg Mims , James Gillespie, Nancy Wilson, Budget templates filled in by 6/1-24 S,D Rose Fogarty , Lisa Hanks/Candace Antinarella Dept. Heads Jun Completed templates to 6/24/11 S,D Rose Fogarty! Fri April May June Su Mo Tu W e Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu W e Th Fr Sa Preliminary total Budget 7/18/11 s 1 2 1 2 3 4 5 6 7 1 2 3 4 Review by staff Mon 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11 10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 Dept Heads present Budgets 7/25 & 26 10-3PM C,S,D 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 to Committee 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 Final Revisions by Staff, and 7/29/11 10-3PM c,s Committee Fri July August September Su Mo Tu W e Th Fr Sa Su Mo Tu W e Th Fr Sa Su Mo Tu W e Th Fr Sa Budget presented to Mayor 8/1/11 10-11AM c,s Mon 1 2 1 2 3 4 5 6 1 2 3 3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10 10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17 Budget presented to FAC 8/22/11 4:45PM c,s Mon 17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24 24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 29 30 31 Final Budget presented to 8/22/11 6PM c,s Council for Approval Mon October November December Su Mo Tu W e Th Fr Sa Su Mo Tu W e Th Fr Sa Su Mo Tu W e Th Fr Sa 1 1 2 3 4 5 1 2 3 2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17 16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 23 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31 30 31