MINUTES 328 CITY COMMISSION MEETING - valp.org

1 MINUTES . city COMMISSION MEETING . JULY 18, 2016. 328. The city COMMISSION met this date in a special MEETING and budget workshop session. A. quorum being present, the MEETING was called to order at 6:00 PM with the following in attendance. Mayor : John B. Arnold, Jr. Commissioners : Heyward H. Strong, Jr. : Chris Wasdin Clark (Tom) Browning, IV. city Clerk : Tammy Johnson Police Chief : Joe Hart Director of Public Works : Nathan Kelley Library Director : David Weatherford Fire Chief : Mark Norris Recorder : Amber Elledge Not in Attendance: Comm. Kay Hamilton, city Attorney Hayward Dykes Others in attendance (Not inclusive): Amber Elledge (camera), Mike Griffith (Bay Beacon reporter), Chad Lee, Mark Avera 1.

2 BUDGET WORKSHOP. Mayor Arnold said this MEETING would consist of going over the Operation & Budget Maintenance part of the budget. He said we would meet again on August 1st at which time we Workshop will need to decide the tentative millage. Once the millage rate is set we could go down but not up and would need to decide the budget hearing dates. Mayor Arnold said Mrs. Johnson has worked diligently and has a stack of papers to go over. Mrs. Johnson went over the handouts. She stated the one titled Schedule FY2017 shows the timeframe we need to hold our budget hearings. She said it also includes the dates we cannot hold the hearings due to the County and School Board having their meetings on those days.

3 The handout titled Illustrative Millage Rates shows a table of millage rates and the amount of revenue each rate would receive. It also shows our current rate of , our rolled back rate of , shows the vote count needed per millage and historical data of a millage value since FY2009. Mrs. Johnson also stated there is a handout showing the department's capital item list for FY2017. Mrs. Johnson went over the proposed Operation & Maintenance Budget for FY2017. highlighting the major differences between the current budget and the FY2016 budget. The current budget contains a 10% increase in health insurance a 5% increase in workers'. compensation and a 10% increase in liability insurance.

4 It contains the new amounts for two bonds we are refinancing: the 2005A and 2006, at a savings of approximately $141,000 over the lifetime. She said the bonds would still be paid off at their originally set time. For General Fund revenues, the millage rate if kept the same would increase from $942,500 to $991,985. State Sales Tax increased from $446,000 to $502,765. Communication Services Tax, Gas Franchise Fees and Late Fee revenues decreased and she noted a large increase in loan repayment stating it is due to unbudgeted loans for a street sweeper and a bucket truck. She said this shows approximately a $100,000 increase in revenues. In Operations & Maintenance expenses she stated that the administrative budget increased approximately $5,000 due to full staff budgeting and the library budget increased approximately $9,000, mostly due to having increased part-time hours from 60 to 80.

5 The police budget increased approximately $39,000 mostly due to life and health insurance as well as maintenance contracts and agreements. In regards to the fire budget, it was decided to place $75,000 in fire truck reserve. The budget then increased approximately $1,500 due to several items being increased. The parks budget increased approximately $3,000. The shop budget decreased approximately $4,000 due to employee wages. The cemetery budget decreased approximately $3,500 due to employee wages. The non-departmental budget showed a decrease due to legal fees of approximately $124,000. Mrs. Johnson said other major differences are the $67,410 going to reserves, which are the loan repayments from cable, streets and stormwater.

6 She said this leaves the general fund budget at a negative balance of $75,835. Mrs. Johnson stated the stormwater fund budget for Operation and Maintenance has a positive balance of $8,805. She stated the street fund budget for Operation and Maintenance has a positive balance of $10,930. She then stated the utility fund budget shows revenue received from reserves, carry forward, and the 2010 bond in order to do some capital items. Mrs. Johnson also mentioned that the utility fund is looking at rate increases. The budget shows a balanced budget with $22,895. going to reserve. Capital items in the budget are a pickup truck, lift station upgrade and generators in the amount of $215,000.

7 Mrs. Johnson stated the communications fund budget shows a balanced budget with no 329 rate increase at this time. She stated the sanitation fund budget shows a balanced budget with $41,350 going into reserves and no rate increase. Mayor Arnold said for our MEETING on August 1st we need to have some amounts for COLA, will need to reduce the capital items list and set a tentative millage rate. Commissioner Strong asked Mrs. Johnson if we could have our first budget hearing September 1st. Mrs. Johnson agreed to look into this and have an answer for him at the August 1st MEETING . ADJOURN. Adjourn There being no further business to be brought before the COMMISSION , the MEETING adjourned at 6:50 PM.

8 _____. John B. Arnold, Jr. Mayor _____. Clark T. Browning, IV. Chair, VCA. ATTEST: _____. Tammy Johnson, CMC. city Clerk