HomeMy WebLinkAbout03-22-2010 Regular MeetingPublic M eeting Notice
Committee: Fairhop F inancial Advisory Committee
Date & Time: M onda , M arch 22, 2010 at 4:45 p.m.
Place: Delchan1 p s R.oom
161 Nort h S e ction Street
Subject: See Posted Agenda
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City of Fairhope Financial Advisory Committee
Agenda -Monday, March 22, 2010
4:45 p.m. in the Delchamps Room
City Hall-161 N. Section St., Fairhope, AL
1. Approval of Minutes for March 8, 2010
2 . Discussion of FY2011 Budget process and schedule
3. Scheduling of meetings with individual department heads for 6-month FY2010
review and kick-off of FY2011 Budget preparation
4. Discussion and recommendation regarding proposed rate increase for natural gas
5. Discussion of allocation process for FY2010 Community Development funds
6. Discussion of RFP for health insurance bid
7 . Discussion of 5-year projection of all anticipated major long term capital
requirements for infrastructure improvements and additions, as requested by City
Council 12-14-2009
Schedule Of Future Meetings
(Note: Regular meetings are on the 4th Monday of each month at 4:45 p.m. in the
Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.)
• Next regular meeting: Monday, April 26 , 2010
STATE OF ALABAMA
COUNTY OF BALDWIN
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The Financial Advisory Committee met at 4:45 p.m.,
City Hall, Delchamps Room, 161 North Section Street,
Fairhope, Alabama 36532, on Monday, 22 March 2010.
Present were:
Chuck Zunk, Chairman
Members : Stan Grubin , Mac McCawley, Marvin Wilder, and John Brown.
Ex-Officio Members: Debbie Quinn, Dan Stankoski, Lonnie Mixon, Mike Ford, and
Rick Kingrea.
Mayor Kant and Dick K wapil were absent.
Chuck Zunk called the meeting to order at 4:47 p.m. He announced that the first item
is to approve the minutes from the March 8, 2010 Financial Advisory Committee
meeting. Marvin Wilder moved to approve the minutes from the March 8, 2010 Fairhope
Financial Advisory Committee meeting as amended. Seconded by Stan Grubin, motion
passed unanimously by voice vote.
The next item on the agenda was the discussion of the FY2011 Budget process and
schedule. Stan Grubin briefly explained the City's proposed budget guidelines for 2011.
(See attachment) Debbie Quinn mentioned the need for a more accurate detail on
overtime. Mr. Zunk said we need improvements for policy makers to set guidelines and
make more specific needs for these guidelines .
The scheduling of meetings with individual department heads for 6-month FY2010
review and kick-off of the FY2011 Budget preparation was discussed next. Mr. Zunk
stated we need to meet with department head earlier for more interaction. City
Administrator Gregg Mims was asked to put a proposal for scheduling department head
meetings to work on this year's budget and the 2011 budget.
Discussion and recommendation regarding proposed rate increase for natural gas was
next on the agenda. Mr. Zunk stated that the Mayor has authority to make rate changes
for natural gas. The F AC should review changes to revenue and expenses that change the
budget. The comment was made that the City will be approximately $1.0 million under
budget. James Gillespie stated we went up 50 cents in March, but are still looking at
$500,000 to $700,000 under and we will know more at end of March. After further
discussion, Rick Kingrea moved to recommend to the City Council for a rate study for
natural gas and change the rate structure by having a base rate and a fuel adjustment
which will be the rise and fall of the actual price of natural gas. Seconded by Mac
Mccawley, motion passed unanimously by voice vote.
Financial Advisory Committee
Monday, 22 March 2010
Page-2-
The next agenda item discussed was the discussion of allocation process for FY2010
Community Development funds. Mr. Zunk asked if the Council has thought about these
funds and commented we need to make a decision. Lonnie Mixon stated we need to
curtail the rest of these giveaways and move to help with gas. Mr. Mixon also requested
the list of Community Development needs and he would go over with City Treasurer
Nancy Wilson. Mr. Zunk stated Mayor Kant suggested the cutoff date be June 1st and
after that date the request does not get included in budget.
Discussion of RFP for health insurance bid was the next item. Mrs. Wilson was
asked to report on the status for the RFP. She stated we are getting samples from other
cities to ensure we get all specifications needed for the RFP .
Gregg Mims addressed the discussion of 5-year projection of all anticipated major
long term capital requirements for infrastructure improvements and additions, as
requested by City Council on December 14, 2009. Mr. Mims stated they were breaking
the items into needs and wants and will present a report in April.
Lonnie Mixon questioned the shortfalls. Mr. Zunk asked; what further cuts can be
presented by Mayor and staff. We need to look at all proprietary funds and have a plan
no later than next meeting with re-projections .
Lonnie Mixon moved to adjourn the meeting. Seconded by Marvin Wilder, motion
passed unanimously by voice vote.
There being no further business to come before the Financial Advisory Committee,
the meeting was duly adjourned at 5:25 p.m .
Chuck Zunk, Chairma
City of Fairhope
City Council's Budget Guidelines for 2011 March 22 , 201 o
• Utilities:
• An inventory of all imbedded physical plant requiring refurbishment shall be
created for each utility along with an estimate of required materials and labor costs.
• The inventory shall then be divided into yearly segments accomplishable by that
particular utility over a span of one to ten years .
• The first segment of refurbishment shall be included in the 2011 budget year and reflected in the
strategic plan for future years .
• The intent is that refurbishment costs be paid by using a percentage of the accumulating
reserves of the utility.
• All Departments:
Employee headcount :Any plan to increase or decrease departmental headcount either through
hiring or transfers shall prepare a list detailing the planned position
change(s) along with supporting rationale.
Overtime shall be expressed as a percent of payroll and forecast for the
upcoming year along with an expression of prior year overtime actually
incurred .
• Golf, Recreation and Adult Recreation Departments:
Shall provide a written report counting all participants who use city facilities as e ither living within
or outside Fairhope city limits.
Fees charged for use of City recreational facilities or services shall be provided along w ith any
recommendation for changes.
A Recreation Department exercise facility sub report breaking out projected membership
growth and income/expense items etc shall be developed and submitted along with the regular
budget.
• More ... developed by FAC committee input.
Examples: 2011 pay policies , economics of Garbage pickup compared to Daphne , Healthcare
policies , formalize vehicle replacement and usage policies .... etc