The URL can be used to link to this page

Home My WebLink About01-26-2009 Work SessionI,,-- Public Meeting Notice Committee: Mayor and City Council Date & Time: Monday, January 26, 2009 4:45 pm. Place: Conference Room 161 North Section Street Subject: Work Session -Financial Update Notice must be stamped, dated and initialed before posted on bulletin board. POSTED 1 /21/oz sl'GNATURE CITY OFF AIRHOPE WORK SESSION AGENDA MONDAY, 26 JANUARY 2009-4:45 P.M. -CITY HALL CONFERENCE ROOM 1. December Financial Report -Nancy and Rose 2 . Drinking Water Engineer Report -Dan 3. Coach Mark Lassiter -Fairhope Football -Jamboree in May [ f .. ' > STATE OF ALABAMA )( COUNTY OF BALDWIN )( The Mayor and City Council , met in a Work Se ss ion at 4:45 p.m., City Hall , Council Chambers, 161 North Section Street, Fairhope, Alabama 36532, on Monday, 26 January 2009. Present were: Council President, Debbie Quinn Councilmember, Dan Stankoski Councilmember, Lonnie Mixon Councilmember, Mike Ford Councilmember, Rick Kingrea City Clerk, Lisa A . Hanks Mayor, Timothy M. Kant was absent Council President Quinn called the meeting to order at 4:45 p.m. Council President Quinn said we would begin with the December Finance Report, but she first wanted to address an issue. We all ran for the job we have and put our families on the line. We need to respect each other, put ourselves on the line, and were elected by the citizens. We have business to take care of here and should be mindful of what is good for Fairhope. Council President Quinn announced the retreat being held Friday and gave the following times for each part: 11 :30 a.m . to 1 :00 p.m. -City Council and Paul Myrick 1 :00 p.m. to 3 :00 p.m. -City Council , Paul Myrick, and Department Heads 3:00 p.m. to 5 :00 p.m. -City Council and Mayor Rose Fogarty, Finance Director, began with the General Fund. Revenues are down $495 ,000 for the first quarter. This is primarily from the following : Property taxes $532,000; Fees related to Building Department $176,000; Grants $160 ,000; Recycling $32,000; and Transfers $60,000. Expenses are $1.3 million up: Legal $47 ,000 ; Grants $225 ,000; Library $59,000; Line of Credit $375 ,000; Golf $690 ,000. There may be an exception to the Line of Credit. We may have to shoe current liability in 2008 of $900,000 , but not show expense in 2009 which is an offset to liability. Work Session Monday, 26 January 2009 Page-2- Council President Quinn asked about property taxes; do we have a definite idea when these would come in. Nancy Wilson, City Treasurer, said the City received $77,000 and a total for January of $412,000. They will send the money within 10 days after receiving money. Councilmember Mixon asked Nancy how much is in the bank. Ms. Wilson replied in the General Fund around $300,000 (operating account) and we have received $500,000 from business licenses . The AMEA bill is due and there are three payrolls in this month. Ms. Wilson stated she normally takes half of business licenses and half property taxes and puts it in Reserves , but has not put any away due to the continuing decline in cash. Ms. Fogarty said expenses are $1 .4 million ($1,327,000) different from last year. We put Golf in the General Fund and accounting is different. Gas is up $551,000 from last year; Electric is up $38,000 from last year, and these include collections and administrative costs ; Water is down $493,000 (mainly due to connection fees). Work Orders from ERTs were expensed as maintenance and should have been to capitalization. We will move $64,000 in expenses from maintenance to capitalization. Councilmember Stankoski asked about the rate studies. James Gillespie, Administrative Superintendent, replied we are trying to do a combined rate study. We are going to subtract sewer and show how it is doing on its own. We should have this by the next Council meeting . Ms. Fogarty said we had to go back to the beginning of the year to di vide. Mr. Gillespie said I hate to say it , but we are going to have to go up on rates. Council President Quinn asked ; when was the last increase. Mr. Gillespie replied 2005. Councilmember Mixon stated what else can we do? Utilities are our income. Ms. Wilson sa id if we take money out of lock box and use for water, this causes the "do tos". All funds up in Revenues and Expenses. Work Session Monday, 26 January 2009 Page -3- Council President Quinn stated expenses from both years look the same. They are basically even. Ms. Fogarty stated that extraordinary thin gs are starting to come in. She said Jason, Mayor Kant, and I are looking at new graphs and working on new presentations. Ms. Wilson said available cash is down 693 ,000. General Fund is $253,000 down and Ut ilitie s are $1,092 ,000 down. In Decemb er, we paid over $900,000 in debt to bond holders . The Lines of Credit are: Utilities $1,500,000 and General Fund $525,000. After the January payment, these are: Utilities $1,250,000 and General Fund $475 ,000 . Council President Quinn asked ; do we need to look for another Line of Credit. Ms. Wilson replied I hate to go out now and still owe the two we have . Council President Quinn asked ; how are the auditors doing. Ms. Fogarty replied they are doing we ll ; pretty much done except the Line of Credit. Council President Quinn asked Ms. Fogarty to check on for March meeting. Councilmember Stankoski said assume we are getting exactly what we received la st year in property taxes. Are we still going to ha ve an issue? Ms. Fogarty said we budgeted for $4.5 million . There are building, impact fees , water, etc. we need to look at. There are many other issues to deal with beside property taxes. Ms. Wilson said I repeat my concern; we need to build up our Reserves and cut costs as best we can. The General Fund only has $400 ,000 in Reserves. Councilmember Kingrea asked ; do we have so meone who monitors grants. Gregg Mims, General Superintendent, replied Nancy Milford handles our grants . Ms. Wilson stated we have to spend money up front and wait on reimbursement. Dan McCrory, Water & Sewer Supervisor, said he would take propo sals and bring back to Council at a later date. Council President Quinn agreed with handing in proposals and then , we will have a Utility Board meeting to discuss. Work Session Monday, 26 January 2009 Page-4- Sherry Sullivan , D irector of Senior Services , mentioned the Fairhope Jamboree and sai d that it help s the community b y brin ging down teams, college coaches, and families for lod ging . Council President Quinn stated they are requesting $7 ,500. Ms. Sullivan re sponded that Ri v iera Utilities is donating $5 ,000. Councilmember Mixon stated everyon e will want money and we should say no to all donations right no w . Ms. Sullivan said it is a return on in ves tment. Councilmember Ford aske d ; what is the bottom line. Ms. Sullivan replied $5,0 00and ne ed to know pretty qui ckl y. This helps pay for their travel. The Boo ster Club cannot foot the bill and it is an all-star booster club. Councilmember Mixon sai d we do not h ave the money. Councilmember Kingrea sai d it is a great idea, but we don't have any money. He said Mark can come and discuss to Ci ty Council. Mr. Mims stated he needed a dir ect ive from the Ci ty Co unci l regarding the Impact Fees an d wheth er or not they wa nted him to go forward on the Ryan property. The grant is at the point where an appraisal is required for the property . Ms. Milford contacted several co mp anies and the best quote was $1,500 . We need to know whether or not yo u want to go through with prop erty sale . We are sp ending too much time on this grant. Councilmember Ford aske d ; ho w much is the grant. Mr. Mims replied $100 ,000 w ith a 50 /50 match. Council President Quinn m ention ed that D avid Ryan sa id h e would work with the City . Mr. Mims told the City Co un ci l they n eed to choose w ise ly how to spend the Impact Fee money . Council President Quinn stated eve n if we receive $50,000 from the grant, we sti ll wi ll have to find $2 00 ,000. ... -.. - Work Session Monday, 26 January 2009 Page -5- Councilmember Mixon reiterated we have no money at this time . Councilmember Kingrea stated we just said no to $5,000. Councilmember Stankoski said if we were discussing this two years ago this may not be an issue. But, this is a small piece of property impacting just a few. Councilmember Ford said we could explore the possibility, but if we don't have money at this time can't go forward. Councilmember Mixon stated we can't make citizens understand the purchase of a small piece of property. Council President Quinn said the Recreation Board has a piece of property looking at to purchase. Councilmember Stankoski asked when the Board of Education was coming to speak. Council President Quinn thanked everyone for their input and participation. The meeting was adjourned at 6 :00 p.m. ~~zl:!iL City of Fairhope City Clerk