Loading...
HomeMy WebLinkAbout02-26-90 Personnel & Finance (anmmittrr itrpnrt` PERSONNEL AND FINANCE COMMITTEE Oki tie emu= Ulounrll of Ur tfttg of*nut!! &tie The February 26, 1990 meeting of the Personnel and Finance Committee was called to order by Council Member Ann Puzzello at 4 : 05 p.m. in the Council informal meeting room. Persons in attendance included Council Members Niezgodski, Voorde, Duda, Luecke, Puzzello, Zakrzewski, and Coleman: Kathrine Humphreys, John Leisenring, Steve White, Jeff Reinhart, Don Porter, and Kathleen Cekanski-Farrand. Council Member Puzzello noted that the first item on the agenda was to review Bill No. 10-90 which would authorize Tax Anticipation Time Warrants for 1990. Mr. Leisenring then reviewed three handouts with the committee. The first was entitled "Projected Cash Flow 1990" , the second a graf showing interest revenues for the General Fund, and the third was a General Fund Investment Analysis and a General Fund Borrowing Analysis (copies attached) . Mr. Leisenring noted that a 5. 3 million dollar deficit is projected by April of 1990. The Bill is asking to borrow 5.9 million dollars. He noted that the amount to be borrowed is to cover the deficit and would be consistent with Internal Revenue guidelines addressing arbitrage. Katie Humphreys noted that the City has decided to borrow more money in light of the uncertainty of when the tax distributions would be received and also to allow better management of cash flow. In this way the City may have some flexibility to prepay some of its obligations. She noted that typically tax distributions are received in late March or early April. However currently, such monies are not anticipated until May. In response to a question raised by Council Member Voorde it was noted that the aY g agent a ent will be First Interstate. P Springstead will be the financial advisor and a formal resolution to that effect will be adopted at a special meeting of the Board of Public Works called for tomorrow morning if the City Council acts favorably on Bill No. 10- 90. It was noted that interest cannot exceed 10% in this area. w Personnel and Finance Committee February 26, 1990 Page 2 Mr. Leisenring noted that interest paid in 1988 was 5. 37% and interest paid in 1989 was 7.43%. He also noted that the City averaged 9. 3% interest in 1989 for invested funds with that interest then being placed in the General Fund. It was also noted that the cost for services provided by Springstead will total $5, 000 and the costs involved for bond counsel will be between $5, 000 to $10, 000. Council Member Luecke questioned the status of the certification of assessed values. Katie Humphreys noted that she had talked with the County Assessor. She noted that Form 11 will be sent on April 1st with the tax bills to go out sometime in April. She noted that state law requires that the tax bills must go out two weeks before May 10th. Following further discussion, Council Member Voorde made a motion seconded by Council Member Luecke that Bill No. 10-90 be recommended favorably to Council. The motion passed. Council Member Voorde questioned who handles or manages the City investments. It was noted that the Controller's Office has that legal responsibility with Steve White in charge of such investments. It was also noted that investments are limited to secured investments such as certificates of deposits. It was noted that currently the City is receiving between 8 . 1% and 8.2% on its investments. Council Member Puzzello noted that the next item to be discussed by the Committee was Bill No. 11-90 which would transfer monies within the Cumulative Capital Development Fund for 1990. Katie Humphreys noted that the Bill requests a transfer of $125,950. 00• from the "Other Contractuals Line Item" ( .4399) in the Cumulative Capital Development Fund and that such funds be transferred to a Motor Equipment Account in the same amount. The purpose would be for the purchase of 10 police vehicles. Bids have been received by a local vendor which show a net unit price of $12, 595. 00. She further noted that the motor equipment line item was eliminated from the Police Department budget. She further noted that the CCDF revenue would be reviewed and evaluated in anticipation of purchasing the cars. The deadline for placing the order with the local vendor who then must go through the state was Friday, February 23, 1990. A total of 20 cars are anticipated to be purchased by the City this calendar year. She noted that the local vendor was Gates and that the total cost of the 20 vehicles would be $251,900. 00. The Substitute Bill would pay for one-half of the vehicles and that other funding options would be evaluated between now and when the cars would be delivered. Anticipated delivery date would be June or early July. Personnel and Finance Committee February 26, 1990 Page 3 Council Member Niezgodski stated that the need for police vehicles is very apparent. He also spoke in favor of dealing with the local vendor in light of wafranty provisions. He also noted that there is a growing need for the detective bureau with regard to their vehicles. Council Member Niezgodski also suggested considering rental agencies ' as a possible option for purchase. Katie HumphreysInoted that when such agencies were used in the past that the cars lasted between three to four years. Council Member Voorde stated that in the o4going negotiations on the FOP Working Agreement, that considerable discussion has taken place with regard to who would be receiving the new vehicles. He noted that the FOP committee was pleased to see that 20 new cars would be ordered however they voiced concern with regard to whether the vehicles would actually be assigned to the police officers on the street as oppossed to the Chiefs. Council Member Luecke questioned whether the funding sources in the CCDF Account would be sufficient for the various needs of the Street Department. Katie Humphreys noted that the account would be short and that the City is currently considering refurbishing single axle trucks. It was also noted that the Capital Budget anticipated to be reviewed in June of 1990 would also address such concerns. Council Member Voorde noted that he had discussions with various street department crews and that the need for sweepers as well as a new paver were apparent. Katie Humphreys stated that the needs were many in this area. Following further discussion, Council Member Voorde made a motion seconded by Council Member Luecke that Substitute Bill No. 11-90 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee the meeting was adjourned at 4 : 30 p.m. Respectfully submitted, Council Member Ann Puzzello, Chair Person Personnel and Finance Committee AP:srk Attachments