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02/17/2003-CC-Minutes-Work SessionMINUTES: City Council Workshop February 17, 2003 PRESENT: Mayor Tommy Kincaid, Councilman Glenn Ervin, Councilman Andy Garza, Councilman Mike James, Councilman Jimmy Evans, Councilman Joe Higgs OTHERS PRESENT: City Manager Jack Smith, City Secretary/Assistant City Manager Rose Chavez, Assistant City Secretary/Administrative Assistant Samantha Renz, Bill Spore 1. Mayor Called meeting to order. 2. Auditor's Presentation Regarding Fiscal Year 2001/2002 Audit. Bill Spore addressed the Council regarding the audit. Discussed Capitol Outlay, he indicated it went up $150,000.00. Discussed funds transferred from the 4B and the Utility Fund. Discussion regarding the revenue totals. Bill Spore discussed revenues compared to the budget. He indicated the total expenditures were over budget by $220,000.00. He addressed the special revenue 4- 0 cussed revenues and expenditures for the utility fund. Operating income was down by about $60,000.00. The net income was up because they did not transfer as much to the General Fund. Discussed cash accounts. Discussed Yarborough settlement expense. Discussed Revenues and Expenditures in the Administration Department. It was $100,000.00 under budget. The utility fund was not able to transfer the total amount budgeted. Discussed revenues and expenditures in the Police Department, they were budgeted to have a $665,000.00 deficit, they had an actual deficit of $604,000.00. Fire department came in $50,000.00 to the good. Sanitation budgeted to have $40,000.00 in excess, the actual excess was $27,000,00, Streets were budgeted to have a $551000.00 deficit, they borrowed W.,259,000.00 and at the end of the year had not spent the money so they showed over 2,000,000.00 in excess revenues. Library budget was $29000.00 to good. Parks Department was $21,000.00 to the good, they had $90,000.00 transferred to them from the 4B Fund. Swimming Pool was over budget by about $2,000.00. Community and Senior centers were $4900.00 to the good. Hotel/Motel tax is a special revenue fund. and actual was $11,000.00, They had budgeted $15,000.00 in revenue 4A fund budgeted $145,000 in revenues ,actual revenues were 146,000. 4B budget revenues were $145,000.00, actual was $148,000.00. Discussed long term debt paid by General Fund. Discussed the schedule of changes in general fixed assets. Utility Fund additions were $2,960,000.00. This is due to new developments, the school, and Wai-mart, along with additional equipment. Discussed analysis of taxes receivable. Discussed management letter. Bill Spore indicated there weren't many written comments. There were a few minor things that were discussed with the City Manager and City secretary, one of the things was the water and sewer tap transfers. Discussed tap fee transfers. City Secretary explained that the I & S payments are required, and by law have to be made. These payments are made first, then when additional revenues come in the tap funds are transferred. Discussion. Councilman Ervin asked the auditor if he felt that the overall budget looked good. Bill Spore indicated a lot of money was being spent, and the City was operating on tight funds. i ' City Secretary explained this was due to spending funds that were not budgeted, these were spent by Council action. Councilman Garza indicated if one of the department heads come before the Council and asks for an item, it's hard for the council to turn it down if it's needed. City Secretary explained that normally those items are transferred from other line items. Discussion regarding budget issues. Bill Spore addressed the proposed Budget Amendments. The bottom line has no effect on the overall budget. Bill Spore indicted the 4B Board will need to approve the amendments to their budget. Councilman James asked if the City was required by law to have this audit reviewed by someone else. ' Bill Spore indicated they were not. Budget Amendments as follows. BANGER PROPOSED BUDGET AMENDMENTS SEPTEMBER 30, 2002 ORIGINAL PROPOSED DEPARTMENT BUDGET AMENDED CHANGE CHANGE ADMINISTRATION REVENUES LEASE PROCEEDS 0 214501214501 EXPENDITURES ENGINEERING 71100 21,300 14,200 CAPITAL OUTLAY 1,400 %400 8,000 22,200 (19,750) VEHICLE MAINTENANCE EXPENDITURES SALARIES 33,856 28,456 (5,400) MINOR EQUIPMENT 49526 675 32 950 (9360)1 91360 POLICE REVENUES LEASE PROCEEDS CAPITAL OUTLAY MUNICIPAL COURT REVENUES LEASE PROCEEDS EXPENDITURES CAPITAL OUTLAY FIRE EXPENDITURES CAPITAL OUTLAY PART TIME SALARIES DUES & SUBSCRIPTIONS STREETS REVENUES SALES TAX EXPENDITURES STREET MAINTENANCE PARKS REVENUES TRANSFER FROM 4B EXPENDITURES CAPITAL OUTLAY SOLID WASTE REVENUES SOLID WASTE COLLECTION IESI FRANCHISE TAX EXPENDITURES COLLECTION CONTRACT NET GENERAL FUND AMENDMENTS 0 101,700 101,700 921800 194,6001 10117n 0 59400 1 53400 0 5,000 C 5,000 15,000 6,750 (8,250) 47,250 41,000 (6,250) 111930 2,130 (91800) 10,500 500 (100000) 25,000 L 18,000 300,000 (24,300) 291,700 3,700 53,000 28,000 90,000 � 90,000 337,100 37,100 0 201000 20,000 57,10� 0 24,300 (24,300) 10,000 252,900 310,000 571100 0 0 I ELECTRIC REVENUES ELECTRIC BILLINGS EXPENDITURES POWER PURCHASED 3,542,000 2,135,666 NET ENTERPRISE FUND AMENDMENTS 4B ECONOMICS DEVELOPMENT 3,867,9341 3151934� 2,451,600 I315,934 I0 REVENUES PRIOR YEAR EXCESS 0 298,000 298,000 REVENUES EXPENDITURES PROJECTS 142,450 440,4501 298,000 0 NET 4B ECON. DEVELOPMENT 0 AMENDMENTS 3. Meeting Adjourned. ATTES M or Tommy Kincaid Of Rosalie Chave , 44tvSe�ret 1 � a'Aa3A // � e°°