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Home My WebLink About08-26-2010 Regular MeetingPublic Meeting Notice Committee: Finance Committee Date & Time: Thursday, August 26, 2010 at 5:00 p.m. Place: Delchamps Room 161 North Section Street Subject: 2011 Budget Presentation Notice must be stamped, dated and initialed before posted on bulletin board. PO STED 8 -J~ -(11 DATE . (/mfdaCL O,atrr2t2/Ltd/4?v SIGNATURE STATE OF ALABAMA )( COUNTY OF BALDWIN )( The Finance Committee, City of Fairhope, met at 5:00 p.m., City Hall , Delchamps Room , 161 North Section Street, Fairhope, Alabama 36532, on Thursday, 26 August 2010. Present were: Mayor, Timothy M. Kant Council President, Lonnie Mixon Councilmember, Dan Stankoski Councilmember, Mike Ford Councilmember, Rick Kingrea City Clerk, Lisa A. Hanks Councilmember, Debbie Quinn was absent. Chairman Mixon called the meeting to order at 5:00 p.m. and stated the Budget Committee will present the draft budget for fiscal year ending September 30, 2011. He mentioned the City does not have to have a budget, but we elect to have a balanced budget. Stan Grub in, Chairman of the Budget Committee, said the staff people were really great and the managers of the City have grown a lot. Mr. Grubin briefly discussed the attached documents : the Summary of the City of Fairhope Budget for 2011, the 2011 Budget Highlights -Fairhope which included Utilities and Overall , and Statement of Cash as of July 31 , 2010. A project management system was mentioned and hiring an independent professional to look at these big projects. Councilmember Kingrea questioned if there was an item budgeted for this independent auditor. Mr. Grubin stated that healthcare costs must be capped, dental coverage eliminated, utility reserves transfers at 60%, sale used garbage trucks , limit Council travel to $1,000 per year per member. Chairman Mixon briefly discussed the Recreation Center and Pool Membership Rates, Golf Rates , and Nix Center Rates would be presented to the City Council in one resolution for approving the increase in rates. Finance Committee Thursday, 26 August 2010 Page-2- Sherry Sullivan , Director of Senior Services, briefly discussed the Community Development Budget and said the costs are split between the three Utilities. We propose to cut appropriations and only give to Ecumenical Ministries, Baldwin County Economic Development Alliance, Eastern Shore Chamber of Commerce, and the Fairhope Point- Clear Rotary Youth Club. We propose to eliminate the New Year's Eve Celebration due to problems la st year and receiving the most negative responses to the Mayor's survey. Donations have been scaled down . Chairman Mixon also mentioned a draft ordinance to cap insurance benefits for employees. The Finance Committee needs to look over a ll of the documents and make recommendations . Gregg Mims thanked Rose, Nancy, and James for working w ith him on the budget. He mentioned that when they first began on the budget we were $6.0 million over the budget. Councilmember Stankoski thanked the Budget Committee and staff for realizing the needs of the City and that we needed to build up our Utility Reserves . The meeting was adjourned at 6:00 p .m . Revenues and Transfers Taxes Sales Tax Licenses & Permits Fines & Forfeitures Intergovernmental Rent & Interests Charaes for Service Golf Adult Recreation Recreation Deot All Other Revenues Utility Transfers* Total Rev/Transfers Sales Tax Transfer to "Lock Box" Sub Total Trans impact fees to FD -new fire house Outsource Garbaae -Vendor Net Revenue & Transfers Gas Fund Operating Revenues Gas Fund Operating Expense Earning from Operations Transfer to General Fund* Funds to build reserve & repair infrastructure Water Division Operating Revenues Water Div ision Operating Expense Earning from Operations Transfer to General Fund * Funds to build reserve & repair infrastructure City of Fairhope Budget for 2011 $5 ,625 ,083 $4 ,407 ,924 $2 ,101,486 $300 ,000 $536 ,484 $211 ,022 $4 ,394,475 $1 ,101,780 $49 ,925 $441 ,904 $1 ,231 ,753 $5 ,082 ,497 $25,484,333 -$2 ,203 ,962 $23,280,371 -$100 ,000 -$900 000 $22,280,371 $8 ,205 ,900 $5 ,729 ,576 $2 ,476 ,324 $1485794 $990,530 $5 ,962 ,320 $3,458 ,637 $2 ,503 ,683 $1 ,502 ,210 $1,001,473 Utilities Expenditures General Government Police Fire Recreation Street Sanitation Golf Librarv Airoort /Debt Svc 221 K. A ooroori ati o n 60 Kl The Haven Senior and Soecial Services (Nix+) Debt Services Total Expenditures: Revenue minus Expenditures Electric Fund Operating Revenues Electric Fund Operating Expense Earning from Operations Transfer to General Fund* Funds to build reserve & repair infrastructure Sewer Division Operating Revenues Sewer Division Operating Expense Earning from Operations Transfer to General Fund* Funds to build reserve & repair infrastructure *Transfers from Utilites to General Fund to equal 60% of gross earnings $6 ,063 ,698 $5 ,032 ,744 $470 ,270 $1 ,156 ,678 $3 ,700 ,262 $1 ,245 ,724 $1 ,062 ,051 $565 ,000 $281 ,124 $65 ,002 $878 ,012 $1 ,725 ,990 $22,246,555 $33,816 $19 ,595 ,529 $16 104 708 $3,490 ,821 $2 ,094,493 $1,396,328 $3 ,405 ,339 $3,316,990 $88 ,349 $88,349 Stan Grubin 8/19/2010 Public Works Police Dept. 2011 Budget Highlights -Fairhope Budget anticpates outsourcing garbage collection : Reduces approx. 10 employees from roll Offset: $900K estimate included amount to pay vendor services Eliminates 3 needed garbage trucks= $7S0K this year alone Flowers cut from $250k to $200k * Adds $1 Million road projects -infrastructure concerns New Radio and antenna system -problem: dropping calls Add 1 new officer -needed 5 -88 sq miles -thin coverage cited Add 3 vehicles, correct video surveillance system IT Department Replace AS 400 Computer: cost distributed over user departments-#1 priority Golf Department Goal : "To at least break even" Raised rates & cut expenses -significant cuts of PT employees Cut 200 gallon sprayer-lease costly equipment Nix Ctr, Civic Ctr. & Nix Center roof repairs -leaks causing ceiling tile damage etc Welcome Ctr All locations Fire alarms -new or upgraded Welcome ctr roof and window leaks -repair Civic Ctr-stage floor repairs-current splinter hazards, Air Cond control Upgd. Stops shuttle service -2 drivers-approx 20 users affected Recreation Dept Two new mowers, Replace gym floor, Paint pool facility, plaster/paint baby pool Gen Admin New Meter Dept truck Fire Dept Transfer $100K Impact fees to FD -to beg i n construction of new fire station UTILITIES Sewer Dept *Major upgrades required to plant -3 year program -$ 2Mil in 2011 Water Dept *Water lines extended to Rock Creek & Begin new Water Tank -$2 .2 Mil in 2011 Gas Department Iron pipe replacement program -some in 2011 -much more in future years Electrical Dept Repairs and gene r al replacement equipment approved . * Bond or loan financing will be required -strongly propose independent view & total plan OVERALL New healthcare costs increases -included and $200k "True Up" reserve Dental coverage eliminated -costs too high & meager benefits Utility reserves improved-Transfer rate 60% for year -see chart: healthy reserves Sale of used garbage trucks not included in budget Council travel expense -up to$ 1000/year/member -proposed -no more pre approval Stan Grubin 8/19/2010 CITY OF FAIRHOPE Statement of Cash as of 7/31/2010 GENERAL FUND GAS FUND ELECTRIC FUND WATER FUND SEWER FUND GAS TAX CAPITAL PROJECTS TOTALS 8/14/2010 N .Wilson Restricted Operating for Specific Funds Use $80 ,900 $157,023 $2 ,857 $0 $28,039 $742 ,693 $3 ,830 $0 $2 ,063 $0 $0 $122 ,265 $0 $0 $117 ,689 $1,021 ,981 Restricted by Law or Unrestricted Ordinance Reserves Total $3 ,764 ,242 $841 ,905 $4 ,844 ,070 $20,653 $2 ,095,400 $2 ,118,910 $1 ,028 ,037 $1 ,183 ,174 $2 ,981 ,943 $334 ,539 $643 ,673 $982 ,042 $520,456 $693,328 $1 ,215 ,847 $0 $0 $122,265 $375 ,630 $0 $375 ,630 $6 ,043 ,557 $5 ,457 ,480 $12 ,640,707 Fairhope Municipal Pool 2011 Membership Rates Membership Rates Within the Corp. City Limits Category Monthly Rate Quarterly Rate Yearly Rate Single $30.00 $60.00 $150.00 Family (immediate family members) $50.00 $120.00 $250.00 Senior Single (60 and over) $25.00 $50.00 $125.00 Senior Couple (60 and over) $40.00 $70.00 $175.00 Day-Pass (Single day) $3.00 Membership Rates Outside of the Corp. City Limits Category Monthly Rate Quarterly Rate Yearly Rate Single $50.00 $100.00 $200 .00 Family (immediate family members) $100.00 $175.00 $300.00 Senior Single (60 and over) $40.00 $150.00 $175.00 Senior Couple (60 and over) $80.00 $160.00 $200 .00 Day-Pass (Single day) $5.00 Recreation Center Hours of Operation Monday• Thursday 5:00 AM -7:00 PM Friday 5:00 AM -6:00 PM Saturday 10:00 PM -6:00 PM Sunday 12:00 PM -6:00 PM I • l ., Fairhope Recreation Center 2011 Membership Rates Membership Rates Within the Corp. City Limits Category Monthly Rate Quarterly Rate Yearly Rate Single $45.00 $120.00 $360 .00 Couple $55.00 $150.00 $420.00 Family (immediate family members) $65.00 $180.00 $480 .00 Senior Single (60 and over) $35.00 $100.00 $320.00 Senior Couple (60 and over) $45.00 $130.00 $375.00 Membership Rates Outside of the Corp. City Limits Category Monthly Rate Quarterly Rate Yearly Rate Single $60.00 $150.00 $450.00 Couple $70.00 $190.00 $525.00 Family {immediate family members) $85.00 $225.00 $600.00 Senior Single (60 and over) $45 .00 $125.00 $400.00 Senior Couple (60 and over) $60.00 $165.00 $470.00 Trial Membership Rates Day-Pass (Single day) $5.00 10-Pack {10 daily Vis its) $40.00 Recreation Center Hours of Operation Monday -Friday 5:00 AM -8:00 PM Saturday 8:00 AM -2:00 PM Sunday 1:00 PM· 5:00 PM Nursery 8:00 AM -11:00 AM & 4:00 PM -7:00 PM M-Th