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HomeMy WebLinkAboutMin 06-23-99(2)MINUTES OF THE UKIAH CITY COUNCIL Special Joint Meeting of the Ukiah City Council and Ukiah Valley Sanitation District Wednesday, June 23, 1999 The Ukiah City Council met in a Special Joint Meeting with the Ukiah Valley Sanitation District (UVSD) on Wednesday, June 23, 1999, the notice of which had been legally noticed and posted, at 3:13 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. The purpose of the meeting was to review and discuss the City of Ukiah Fiscal Year 1999-2000 Budget. Roll.was taken and the following Council- members were present: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. Staff present: Director of Public Utility Barnes, Water/Sewer Operations Superintendent Borecky, Director of Finance Elton, Risk Manager/Budget Officer Harris, City Manager Horsley, and City Clerk Ulvila. Ukiah Valley Sanitation District Board Members present: Shoemaker, Ashiku, and Chairman Delbar. Sanitation District Chairman Delbar introduced UVSD Secretary Heike Arnold. She is also the Deputy Clerk to the Board of Supervisors. AUDIENCE COMMENT:S ON NON-AGENDA ITEMS_ No one came forward. PUBLIC HEARING -CON~;IDERATION AND ADOPTION OF FISCAl. YEAR 1999-2000 BUDGET A. Overview of Proposed Budget by City ManagerlDirector of Public Utility -- Public Utilities Director Bames advised that the Fiscal Year Budget for 1999-2000 is increased by approximately $40,000 from the previous year. Most of the increase is due to plant improvement requirements at the Wastewater Treatment Facility which involves the trickling filters, additional expansion and study work which needs to be completed, amounting to $55,600. This amount is off-set by some reductions in other areas. He introduced Water/Sewer Operations Superintendent Borecky who played a large part in the preparation of the budget. al Review of City/District Fund Accounts I. Sewer/Wastewater Treatment (pages 266-280) ii. City/District System Maintenance (page 281) Richard Shoemaker advised that at the last meeting of the UVSD, he inquired as to the balance in the #711 Capital Account, as referenced on page 272. There is a contribution to capital replacement, in the amount of $156,000, and inquired as to the over-all balance in that fund. He noted that account #711 is a contribution to capital replacement and inquired if the funds go into a Capital Replacement Reserve Fund, or if it is a one time expense. Joint Meeting of City Council and Ukiah Valley Sanitation District June 23, 1999 Page 1 of 3 Finance Director Elton advised that the #711 account consists of money that is set aside within the Sewer Operations Fund and does not go into a separate fund. He explained there are other reserve accounts and the UVSD has a Capital Reserve Fund (Fund #650) that has $1.5 million balance (as noted on page ES-12). Mr. Shoemaker inquired if the City has a similar account. Finance Director Elton confirmed that the City has a similar reserve account that has a projected June 30, 2000 balance of $997,000 (line item #620). In response to an inquiry by Mr. Shoemaker, Mr. Elton advised that there have not been any contributions to the ~50 account in the current budget, however, there have been contributions in the past with various portions of the revenue being directed to this fund in various ways. At one time there was a formula established which was a percentage of the revenue that was taken in by the UVSD and put into this account. This process no longer occurs and he was unsure when the process stopped. Mayor Mastin inquired as to what happens to capital replacement monies. Finance Director Elton advised that the amount of money in #711 is set aside within the fund balance of the Operating Fund for future capital acquisitions. These capital funds would be used typically as a source for funding such items as replacement of equipment and vehicles on an annual basis, as opposed to major expansion or remodeling. City Manager Horsley noted that the City may have felt there was a sufficient balance in the Capital Improvement Fund, having reached a point where they felt comfortable with the balance when the process stopped. Mr. Shoemaker noted that when the Franchise Fee went into effect with the City, the UVSD was asked to implement it as well. However, the UVSD declined at that time. City Manager Horsley recommended the UVSD determine what would be a comfortable balance in their Capital Improvement Fund and what percentage it should be of their budget. Sanitation District Chairman Delbar inquired if the City and UVSD have been the sole source of funds for Fund #650. City Manager Horsley recalled that it has been in place at leaast since 1986. Chairman Delbar inquired as to why the ~650 line item isn't shown in the UVSD budget. City Manager Horsley advised that City staff will make sure the UVSD receives a copy of the fund summaries in the future because that is where the totals are located. She discussed adding fund totals in the budget as line items in the future. Joint Meeting of City Council and Ukiah Valley Sanitation District June-23, 1999 Page 2 of 3 Discussion followed concerning how the budget is set up and the desire for the City to provide the UVSD with information on a regular basis. Mr. Shoemaker inquired as to how the revenues, such as Septic Dumpings, Interest, State and Federal Grants, as noted on page 267, are allocated. Finance Director Elton explained that they are not allocated in a way to indicate whether the source is the UVSD's or the City 'but are identified as to the revenue of the operation. Mr. Shoemaker inquired if there would be a benefit to the UVSD to have its interest credited to its Capital Reserve Account. Finance Director Elton stated that the interest earnings of the Sewer Operating Fund (#612) are part of the complete reserve and expense picture of the sewer operations in which both the City and UVSD have undivided interests. He further stated that Capital Reserve Funds for the City and the UVSD are separately maintained and each earns interest, individually, on its fund balance. Mr. Shoemaker inquired if there is a line item for interest to the Capital Reserve Funds. Finance Director Elton noted that the UVSD Capital Reserve Fund (~50) is shown on the Fund Summary. He advised that, while no detail is contained in the budget document, there is $63,000 income projected for fiscal year 1999/2000. Discussion followed concerning City staff providing information and a copy of the fund summary to the UVSD. 4. ADJOURNMENT Mayor Mastin adjourned the meeting at 3:30 p.m. Marie Ulvila, City Clerk Joint Meeting of City Council and Ukiah Valley Sanitation District June 23, 1999 Page 3 of 3