February 11, 2014 Minutes

MINUTES OF THE FINANCE COMMITTEE MEETING
EXECUTIVE CONFERENCE ROOM
FEBRUARY 11, 2014-4:00 P.M.
Committee Members present:
Councilor David Witham, Chair
Councilors Martin Pepin, Jennifer Soldati and
Dale Sprague
Administration/staff present:
City Manager Bob Belmore
Finance Director Scott Smith
Deputy City Clerk Elise Brelis
Others present:
Mayor Dana Hilliard
Chairman Witham called the meeting to order at 4:05 pm.
APPROVAL OF MINUTES
Finance Committee meeting minutes from 01/29/2014 were approved, Pepin/Soldati 2nd,
4-0.
DOWNTOWN PROJECT: REVIEW DETAILS OF ADDITIONAL SCOPE OF WORK
(TO INCLUDE STATION STREET, STAIRS AT PROSPECT STREET, STAIRS AT
CITY HALL, WATER SERVICES.)
Finance Director Scott Smith outlined possible funding options to pay for 4 change
orders to the downtown project (identified above.) He estimated that these changes
would cost approximately $400,000. He suggested the following as possible ways to
cover these costs, some being more desirable than others:
•
•
•
•
•
•
•
Fund balance- (approximately $4M unassigned.)
Unencumbered road resurfacing fund, (approximately $300,000.) Councilor
Witham does not want to touch this.
Unanticipated revenue- Sunningdale-penalty (total amount received $535,000;
approximately $200,000 from 15% penalty.)
Unanticipated revenue- Insurance from fire @ Sunningdale- (approximately
$57.000 in escrow.)
Unanticipated revenue- LGC surplus fund (approximately $186.000.)
Pandelena- ($25,000 bid bond money not yet allocated.)
Bond issue money for School HVAC’s- ($120,000 authorized but not issued.
Would need to redefine purpose to utilize.) Councilor Witham wants to leverage
this for school use, especially going into the tax cap.
Councilor Soldati wondered about the as yet unfilled position of Human Resources
Director. City Manager Belmore felt they should leave the operating budget alone given
that there are possible over-expenditures such as Highway Department overtime and the
purchase of sand & salt which may require a transfer ordinance.
Councilor Witham stated that they will look for the Council to authorize up to $400,000.
Finance Director Smith said that the City Council will need to do a supplemental
appropriation; the Council will need to identify the source(s) of the funding and it will
require a 2/3 vote.
Committee members discussed how to achieve the funding; keeping in mind upcoming
projects and costs. Reasons for not touching the fund balance include cash flow,
emergencies and the requirement to keep a “healthy” fund balance for bonding, etc.
There was a motion to endorse the following, (Pepin/Soldati2nd ) :
Funding sources for the approximately $400,000 required for the additional work
to the downtown project will include money from Pandelena, the Sunningdale fire
proceeds, the LGC surplus, $45,000 from the proceeds of the sale of Sunningdale
and $50,000 from water.
The motion passed 4-0.
Councilor Witham said that there are five pieces of legislation stemming from this.
CM Belmore reminded the committee that there will need to be a public hearing.
REPORTING
CM Belmore discussed Highway overtime, the budget for sand and salt, Firefighter
overtime and Police Department overtime; items that are, or are soon to be, overspent.
Sand and salt requirements are estimated using five year averaging which has worked
pretty well recently. Councilor Soldati asked if there is a figure of what the city spends
for personnel. CM Belmore answered that it is about 67% (of the budget.)
MISCELLANEOUS
Councilor Soldati asked about how the City invests its general funds. Director Smith
reported that they need to be very secure and very liquid and that there is not much of a
return. He mentioned several institutions that we utilize.
The meeting was adjourned at 4:33 pm, Sprague/Pepin 2nd. 4-0.
Respectfully submitted,
____________________________________
Elise B. Brelis, Deputy City Clerk

Download Report