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Home My WebLink About04-23-2012 Regular MeetingPublic Meeting Notice Committee: Fairhope Financial Advisory Committee Date & Ti1ne: Monday, April 23, 2012 at 4:00 p.m. Place: Delchamps Roo1n 161 North Section Street Subject: See Attached Agenda Notice must be stamped, dated and initialed before posted on bulletin board. DAT,t1 . , -{/JJtM}/1[! (JJO(M1~ SIGNATURE City of Fairhope Financial Advi s ory Committee A g e nda -Monday, April 23, 2012 4:00 p.m. in Delchamps Room at City Hall City H a ll -161 N. Section St., Fairhope, AL 1. A ppro val of M inu tes fo r F ebruary 2 7, 20 12 Regul ar M eeting . 2. Di sc u ss ion and ana lys is of mid-year fin an cial statem ent s b ase d on Febru ary statem ent s (and Mar ch if ava il a bl e b efo re m ee tin g). D ep artment H eads should be ready to di sc u ss bu d ge t v ari ances , acti on pl an s and proj ections for the b alanc e of FY 2 01 2; and be prep ar ed for Q&A fr om F AC m emb ers . Schedule Of Future Meetings (Note: Regular meetings are on the 4 th Monday of each month at 4:45 p.m. in the Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.) • Next r eg ul ar m eet in g: Tues day , M ay 29 ,20 12 (at 4 :00 p .m .) STATE OF ALABAMA C OUNTY OF BALDWIN )( )( The Financial Advisory Committee met at 4 :00 p .m ., C it y Hall , Delchamps Room , 161 North Section Stre et , Fairhope, Alabama 36532, on Monday, 23 April 2012. Present were: C huck Zunk, Chaimian Members : Stan Grubin , Mac McCawley, Marvin Wilder, John Brown , and Bob Ri ggs , an d Mayor Kant. Ex -Officio Members: D ebb ie Quinn, Dan Stankoski (arri ve d at 4:55 p.m.), Lonnie Mi xon , Mike Ford (arrived at 4 :20 p .m .), and Rick Kingrea. Chuck Zunk called the meeting to order at 4:00 p .m. He announced that th e first it em is to approve the minutes from the February 26, 2012 Financial Advisory Committee meeting. Marvin Wilder mo ve d to approve the minutes from th e February 26 , 20 12 Fairhope Financial Advisory Committee meeting. Seconded b y John Brown , motion passed unanimou s ly by voice vo te. Lonnie Mixon thanked Ro se Fogarty and her staff for the wo rk they did ge ttin g ready for thi s meeting . Ms. Fogarty introduced th e newest member of th e Finance D epartm ent ; C liff Kuna who is th e City of Fairhope's Accountant. Mr. Mi xon also thanked all of the Department Heads for a great job controlling the figures in their budget. He thanked Ci ty Clerk Lisa Hanks, Di ane Thomas , and Lorenz o Howard for th eir hard wo rk and time s pent on the Employee Co mpen sation Study. Gregg Mims , C it y A dmini strator , bri efly expl a in ed that the D epartment Heads wi ll discuss the budget varia nces, ac tion plan s , and projection s for the b a lance of th e FY2012 . 1. Chief Bill Press , Fairhope Police Dep artment , stated that the Police D epartm ent was for the most part on target. There have been iss u es thi s yea r wh ich ha ve required overtime. He thanked hi s emp loyee s for their tremendous job und er negative circumstances. Stan Grubin questioned th e perso nn e l dollars bein g over budget. Chief Press and Mayor Kant comm ente d that thi s was due to overtime , paid administrative lea ve , and the need to reclassify City of Fairhope event s . 2. Dan McCrory, Water & Sewer Superintendent, stated th at his department was under bud get by 3 perc ent. Chuck Zunk questioned if h e saw issues w ith one or the other. Mr. McCrory replied the y go hand in hand . Mayor Kant co mm ent ed that expenses in operations were up du e to the studie s . 3. Nancy Wilson , Ci ty Treas urer, gave a brief update on all approved proj ec ts , budgeted capita l purchases still outstanding and oth ers und er di s cuss ion for the Water & Waste Wat er D epartm ent. Financial Advisory Comm ittee Monday, 23 April 20 12 Page-2- 4 . Scott Sligh , E lectric Superintendent, stated that revenues are short of w hat was projected ; and spending ha s been in check. This will be approximately $700,0 00 short of what was projected ; and th ere is no way t o come up with that. 5. Steve Sea y, Gas Superintendent, stated gas usage is down twe nt y percent ; therefore , revenues are do w n . H e said ex pen ses are not high . C hu c k Zunk question ed the pipe repla ce ment project. Mr. Seay re pli ed this project is o n sc hedule and is u sually done in June or July. 6. Tom Kuhl , Parks and Recreation Director, stated he was over budget on suppli es and the Youth B ase ball League was asking for upgrades. Stan Grubin ques tion ed th e Manley Ro ad project and it s status. Mr. Kuhl repli ed th at Founders Park was first on the li st and th en th e Manley Road project. 7. SheITy Sullivan , Community Affairs Director, stat ed she had a grant for a new bu s for the Nix Cent er and is w ithin budget for her departm e nt. 8. Jennifer Fidler, Public Works Director, stated revenues are down o n recyc lables; and when a truck breaks down , we have to mi x load s. The Street Department is six percent under budget. She said overall we are me etin g the budget. 9 . Bobby H a ll , Di rector of Golf, stated hi s expen ses are in good shape an d r ev iews have been great for the Golf Course . Mr. Hall mention ed the consu lt a nt he lpin g w ith the greens had a hu ge imp act on the reviews . Mr. Mixon stated J eff Williams ha s made th e Go lf Course. 10. Rose Fogarty, Finance Director, briefl y we nt over the General Fund budge t. She said for the mo st part , mo st ca pital purchases will be mad e; and for th e mo st we are on bud get for the year. 11. Jeff Montgomery, IT Direc tor, stated that the hard wa re was purchased for the replacement of the AS-400. The software is to be presented to the C it y Council ; and the City-wide radio proj ec t is being implemented . Stan Grubin qu estio ned the transfer rate for the Utilities and the policy on the tax money. Mr. Zunk stat ed the tax monies were for debt reduction and capital purcha ses. Mr. Mix on said th ere is an ordinance that was adopted on how we use the fund s. Mr. Zunk sa id the parti cu lar percent of tran sfers was a plug to bal ance the budget; and a dollar amount need s to be mad e. He sa id we need to s have the General Fund as best we can; and at this point , we need to shrewdl y manage as we have been. Financial Advisory Committee Monday, 23 April 2012 Page -3- Stan Grubin moved to adjourn the meeting . Seconded by Marvin Wilder, motion passed unanimously by voice vote. There being no further business to come be fore the Financial Ad v is ory Committee , the meeting was dul y adjourned at 5 :00 p.m . Chuck Zunk, Chairman CITY OF FAIRHOPE • WATER & WASTE WATER PROJECTS PROJECT Approved Projects: Upgrade of Waste Water Treatment Plant CH2MHill Water Study -Amend . 1 to Phase 1 -Well 5 Redrilling of Well #5 Engineering Services : Painting of Water Towers Painting of Water Towers Sub-Total Projects in Discussion: Water Line to Rock Creek 1 /3 of Cost of New Municipal Software System Sub-Total PROJECTED COST Projected cost of $10 ,380,000 $1 ,780,000 = (Amount of excess over $9,750 $8 .6 million borrowed for Project) $350,000 approx. $100 ,000 approx. $1,000,000 $3,239,750 $1,840,000 $250,000 $2,090,000 Budgeted Capital Purchases still Outstanding and Others Under Discussion: CH2MHill Amendment #2-Water/Sew Comprehensive Plan $420,000 Required Work for Bay Water Quality resulting from Auburn Study $500 ,000 guess WATER/SEWER Heavy Construction Truck --Back Hoe Traller Generators for Lift Stations Sewer Line Rehab/Manhole Rehab SCADA System Sub-Total Total Projected Cost of Projects $84,906 $21 ,000 $350,000 $300,000 $50,000 $1 ,725,906 $7 ,055 ,656 CASH AVAILABLE @3/31 $955 ,695 Reserv~s : non-de 1 ig . $538,500 Water f ap reserves ReserJes $1 ,283,152 Sewer ap Rese1s $2 ,777 ,348 Total 1,s Reserves 4/23/2012 N .Wilson