MAY 29, 2018 BUDGET WORKSHOP

PUBLIC NOTICE OF SPECIAL JOINT MEETING
DAVIS CITY COUNCIL AND DAVIS MUNICIPAL AUTHORITY
MONDAY, MAY 29, 2018 7:00 P.M.
DAVIS CITY HALL
227 E. MAIN

1.    Call to order Davis City Council and Davis Municipal Authority by Ed Parks.

2.    Roll Call: Mayor Ed Parks, here, Vice-Mayor Josh Oakley, here, Councilman Stan Jones,  here, Councilman Darryl McCurtain, here, Councilman Brian Davis, here.

3.    Prayer led by Stan Jones.

4.    Pledge of allegiance led by Ed Parks.

5.    Budget workshop for City of Davis, Municipal Authority, and Turner Falls Park. Tom spoke in regards to the upcoming budget. Starting with Contingency Fund, $250,000.00 will be transferred towards 3rd Street Project and we have to budget things out of this fund. So under Fire Dept we will budget under the Fire Truck Dept Service in the amount of $27,500.00 for the Fire truck payment. The payment is $47,000.00 but we have the rest of that in a savings account that we will pull out of to make that payment. This is the final payment of that ten year plan; those trucks will be paid for. One recommendation he would like to ask is if we can keep that savings account open and have a little bit of money in it and add the $1,000 a month to start saving up for things in the future. The next thing is the air packs, which is a three year project; this year is the second year that we are replacing six of them at a time. The reason being is because for six of them, they are $50,000. Next year we will buy another $50,000 then they will all have new ones and we won’t have to buy so many at a time. Bunker gear we started the process last year of buying it each year so that the total capital outlay, including final payment, would be $100,000 out of Contingency. The police department would be 3 bullet proof vests and 2 vehicles with add ons. We are going to transfer $10,000 out to self- insured account. This helps employee’s pay for their reimbursements on their medical. At the end of the year, we should still have around $132,000 in that account. Street Maintenance is basically for the third street project. Three payments get transferred to TF every year, $1.00 per person year around. We should have about 1.3 million, however; with the third street project, some expenses with ODOT and bridge project on 77, most of that is going to be spent. So, after Third Street, we will still have about $288,000 in this account. Cemetery Fund doesn’t have much in it. The only thing we can buy out of this account is lawn mowers, in which we don’t need one right now. Water Sales Account is the money coming in off of sales tax revenue and the regular account. We have $479,000 on total expenditures to go towards the payment we make on the water plant every year. Before this gets paid off, we’re going to have to a rate increase to help offset the cost of throwing money out of this account. Unless we get some more businesses in town then we will have more sales tax, then more money will go into this account. But until, we might have to look into the future for a rate increase. Grant Fund has two funds right now. One being the REAP grant in the amount of $48,000 that will be spent after July 1. This is for safety equipment for the Fire Department. They applied for it and got it so $6,000 will come out of our pockets and $42,000 will be reimbursed to us through SODA. Then you have money put in by being reimbursed from FEMA. One of the things he would like to do is pay the note down. He would like to take $500,000 and pay bank note, which will take away 5 years and interest away, note would be paid off in 2022 instead of 2027. The remaining dedicating it towards the splash pad at the park. It would cost around $280-300,000 the rest will be raised by Davis Development Group. Court Fund is everything they have and 911 fees will go down. General Fund figures are a little bit higher because sales taxes went up. We are expecting to spend about $25,000 reimbursements for Fire Department. One thing to change under the City Manager is the $840 under vehicle fuel and it needs to go to cell phone. You don’t pay my fuel. Payroll is done the same as every year along with the 3% cost of living increase. The City Clerk and Treasurer salary is both of them. In the Police Department is going down because they changed from 10 full time employees to 9. Stan said a citizen asked him about the signs on the police cars being transparent. Tom said it was done when he was not here and that won’t happen again. Reserves only cost when you use them and as of right now, we only have thirteen instead of the 20-21 we usually have. We buy them a shirt and that is it, they have to furnish their own stuff. We are trying to look at some grants for the reserves. Stan asked if we had a plan is place on replacing some fire hydrants. Bert said yes, they are fixing to start testing them the next month or two. Tom said when ODOT does the main streets; they will be replacing all them on main. We do have money in here to assist in mowing. We contracted the park and some bar ditches to be mowed. That is there just in case we have to have it. Darryl asked if there was any way to paint the north wall at the Senior Citizen’s building. Tom said we could try. Under other services and charges, we are having some problems. Some of the places we have torn down, no one is mowing these and all the mail are getting returned, we contacted County, they have same address we do and no one is paying taxes on these properties. So, if we mow them, we are left with the expense and there’s just no way to get anything out of it. The end of General Fund we are showing a profit of $22,500. We have to break even in this account by the end of the year. It is only based on if we bring the revenue in that we are talking about. DMA Fund the water sales aren’t budgeting as much because we’re not bringing in as much as anticipated. Our operating income will be the 1.5 million; we do have employees paid out of separate accounts under this. There are two people paid out of the four different one. We also have trash and he told us about five months ago that SORD was going to take a 5% increase but they are not this year. Stan asked why the water utilities went up from $18,000 to $40,000. Tom said we didn’t use a realistic figure last year. They told us it would be energy efficient but we had to go up on it because of how much we are paying out for it. We’re not showing a big profit at the end of the year, only $19,000 but we really need to think about a rate increase. Tom will let them know when the last increase was in the next meeting. Turner Falls there will be a lot different in the prices this year than last because of the rate increase. Stan asked if we had done an inventory check and balance at the stores for Retail. Tom said we do that every year at the first of July. Some of the things they want to do are buy a pickup. But if we don’t need it, we won’t buy it. They are showing $772,000 end of year profit after they send transfer to town. Stan asked about the Full Strut Media fee of $100,000. Tom said we don’t have to pay this but we do have to show it. They get a maintenance fee that is passed on to the customer. We have to collect it and show it but it goes to them. All the accounting is going good. Stan asked what the number that makes the park full is. Tom said 6,000 people. What they do is the online sales that aren’t there yet the computer shows it and Billy drove through the park are realized there wasn’t much more parking so he has ability to raise or lower it.       
McCuratin made motion to set Budget Public Hearing for June 11, 2018 at 6:00 p.m. Second by Oakley. Vote: Jones, yes, McCurtain, yes, Davis, yes, Oakley, yes, Parks, yes. 
                            
6.    Adjourn. Motion made by Stan to adjourn. Second by Oakely. Vote: Jones, yes, McCurtain, yes, Davis, yes, Oakley, yes, Parks, yes.

ATTEST:


_________________________________              ___________________________________
Cheryl Merrell, City Clerk                                       Ed Parks, Mayor