HomeMy WebLinkAbout2003 06-16 FCMFinancial Commission
Meeting Minutes
June 16, 2003
1. Call to Order
The meeting was called to order by Chair Escher at 7:30 PM
2. Roll Call
Members Present: Chair Escher, Commissioners Nemec, Blarney, Peterson, Wilkinson
and Hruska.
Members excused: Commissioners Elftman.
City Council Liaison: Council Member Bob Peppe
Others Present: City Manager Michael McCauley, Fiscal and Support Services Director
Douglas Sell and Assistant City Manager Curt Boganey
3. Financial Commission Recommendations
Based on the recommendations of the Financial Commission, City Manager McCauley
indicated that staff would prepare a matrix that identifies the impact of each suggestion
on the budget, homeowners and businesses. The Commission recommended the City
Manager and staff to come back to the Commission at the next meeting with a proposal
as they saw fit to address the issues. The Commission could then react to the overall
proposal.
The Chair then suggested that Financial Commission could meet in several weeks to
discuss the matrix and formulate suggestions for the City Council.
4. Approval of Meeting Minutes
Motion by Commissioner Peterson, second by Commissioner Wilkinson to approve the
meeting minutes from May 19, 2003. Motion carried.
5. Next Meeting
The next meeting will be Thursday, July 10, 2003 beginning at 6:30 PM, City Hall,
Council/Commission Conference Room.
6. Adiournment
Motion by Commissioner Wilkinson, second by Commissioner Hruska to adjourn the
meeting. Motion carried. The meeting adjourned at 7:55 PM.
Prior to the meeting, the Financial Commission met jointly with the City Council to
discuss approaches to budget issues for 2004. In addition, the auditors for the City, HLB
Tautges and Redpath, presented the results of the audit recently completed.
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• Audit Results
Mr. Dave Mol and Mr. Jeff Wilson reviewed the audit results with the City Council and
Financial commission. They discussed the results of operations in all funds and fund
types, commented on the use of fund balance and reviewed several findings related to
internal controls (utility billing), grants management and IT access (JD Edwards
systems). They reviewed with Council and the Financial commission the need for
Conflict of interest declarations as part of the 2003 audit and financial statement
preparation process.
Citv Budget
Chair Escher reviewed issues and concerns of the Financial Commission as they related
to direction from the City Council regarding areas to review, analyze and report as it
relates to 2004 budget. He was particularly concerned about the direction the City
Council wanted to take regarding the shortfall of nearly $1.7 million in 2004.
He asked Council to consider narrowing the discussion by providing areas they would
like the Commission to review, from a broad perspective including reductions, franchise
fees and potential tax levies.
Commission Member Hruska asked about alternative sources of funding for some
programs. He identified the Lion's and Volunteer Fire Department as potential sources.
City Manager McCauley explained that with alternative funding for some programs,
someone still would be required to administer the program. There is a cost to the
administration of programs.
There was continued discussion of some macro issues and some specific programs and
activities. City Manager McCauley identified a possible approach for the 2004 Budget
by decreasing expense by one-third, reviewing the impact of an increased tax levy for
another third of the shortfall and a potential franchise fee for another third. Again, there
seem to be consensus among Council members and the Commission that this would be a
reasonable approach to the issue.
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