City Council Minutes 2013 06 27 - Laserfiche WebLink

Home Browse Search

City Council Budget Retreat Special Meeting Minutes June 27, 2013 Page 4 of 13 EXPENDITURE TARGETS The expenditure targets reflect an inflationary increase of 2.5% over the next five years, which is reflective of employee benefits including health insurance. The 2012 actual expenditure included vacancies in staff positions. The 2013 estimate does not assume any vacancies in staff positions, which therefore represents a larger expenditure. There was Council discussion that the cost of health care increases would be over 10 %. It was noted the City's broker will look at Mountain States, Kaiser and also the exchanges under healthcare reform for affordable health care. The City will expect employees to pay a percentage of the premiums, which is typical of what other jurisdictions do. The City's Benefit Committee will evaluate the insurance options. 2014 -2018 CAPITAL IMPROVEMENT PROJECTS City Manager Fleming reviewed the summary of the 2014 -2018 Capital Improvement Plan and how the timing of expenditures will balance the cost of capital improvement projects. He explained commitments to the Diverging Diamond Interchange and to the Highway 42 Corridor commitment of $3 million dollars of City funding to leverage $14.4 million dollars in grants for those projects. Those two primary commitments in addition to other projects (South Street Underpass and City Services Facility) made it very challenging to budget for many other important capital improvement projects. The timing of the expenditures will be based on the revenue projections on fees associated with building related revenue and transferring significant funds from the general fund in 2013, 2014 and 2015 to the Capital Improvement Fund. The traditional street resurfacing project and other low priority projects will be shifted to provide funds for other transportation improvements. City Manager Fleming stressed the importance of the City's street reconstruction' program and noted $1.5 million dollars will be budgeted to street resurfacing in 2016. He asked Council for their priorities. COUNCIL COMMENTS Mayor Muckle suggested moving back the golf course sprinkler system one year. Mayor Pro Tem Dalton inquired about the debt services repayment. City Manager Fleming explained the interest for debt services in the water and wastewater utility funds are paid through water user rates. Mayor Pro Tem Dalton requested clarification on shifting the street reconstruction projects. Public Works Director Kowar explained there is a five -year window to shift the costs from the neighborhood streets to arterial streets. Mayor Pro Tem Dalton requested the St. Andrew Crossing, currently in the 2015 CIP schedule, be given the highest priority in 2015.