The meeting was called to order by Council President Schmor at 7:30 p.m.

Council President Schmor led the flag salute.

MEMBERS PRESENT:

Marian Calnon

Jan Forsyth (arrived 7:31 p.m.)

Gary Hudson

Larry Kanzler

Karen Ladd

Sally Ann Marson

Bob Schmor

John Yazzolino

Cheryl A. Young (arrived 7:45 p.m.)

MEMBERS ABSENT:

Bill Guy

ALSO PRESENT:

Leahnette Rivers, City Administrator/Recorder

Jim Bundy, Superintendent of Public Works

Mike Reedy, Chief of Police (arrived 8:00 p.m.)

A quorum was present and due notice had been published.

Council President Schmor opened the nominations for the position of Chair.

MOVED (HUDSON), SECONDED (YAZZOLINO) AND CARRIED UNANIMOUSLY TO NOMINATE LARRY KANZLER AS CHAIR.

There being no further nominations for the position of Chair, Council President Schmor closed the nominations and declared Larry Kanzler to be duly elected as Chair.

Council President Schmor turned the meeting over to Chair Kanzler.

Chair Kanzler opened the nominations for the position of Vice-Chair.

MOVED (MARSON), SECONDED (SCHMOR) AND CARRIED UNANIMOUSLY TO NOMINATE KAREN LADD AS VICE-CHAIR.

There being no further nominations for the position of Vice-Chair, Chair Kanzler closed the nominations and declared Karen Ladd to be duly elected as Vice-Chair.

Chair Kanzler opened the nominations for the position of Secretary.

MOVED (HUDSON), SECONDED (LADD) AND CARRIED UNANIMOUSLY TO NOMINATE LEAHNETTE RIVERS AS SECRETARY.

There being no further nominations for the position of Secretary, Chair Kanzler closed the nominations and declared Leahnette Rivers to be duly elected as Secretary.

AGENDA ITEM 3 DISTRIBUTION OF PROPOSED BUDGET FOR FISCAL YEAR 2001/02:

The proposed budget for fiscal year 2001/02 was made available to the public and distributed to the members of the Budget Committee and staff on April 24, 2001.

Leahnette Rivers reviewed the highlights of the Budget Message with the Committee. She explained that the budget is conditioned upon several new revenue sources and/or rate increases. She said these revenue sources or increases have not been approved by the Council at this point, and if the Council does not approve them, adjustments will need to be made to the Budget. She reviewed each item in detail, consisting of a proposed increase to the franchise fee for Hudson Garbage, a new "in lieu of franchise fees" to be paid to the General Fund by the City's enterprise operations, and an increase in water rates.

Leahnette Rivers explained that the City Council is currently in the process of negotiating a new franchise agreement with Hudson Garbage. She said City staff has recommended a 5% franchise fee be included in the agreement and Hudson Garbage is not opposed to the franchise fee. She said the City currently collects $600 per year under this franchise agreement, and revenues will increase by approximately $4,530 annually as a result of this new fee. She said all of the other cities serviced by Hudson Garbage pay a 5% franchise fee.

Leahnette Rivers explained that the City charges franchise fees to all utilities using the City's rights-of-ways. However, she said the City's enterprise operations (water and sewer utilities) are using the City's rights-of-ways at no charge. She said the enterprise operations should be viewed as self-supporting, stand alone utilities, and as such, they should also pay a fee for the use of the City's rights-of-ways. She said this is a common practice in other cities, and she has briefly discussed this concept with the Council on several occasions during the past two years. She said she is in the process of preparing a formal recommendation to the City Council that they impose a fee in lieu of franchise fees upon the water and sewer operations within the next few weeks. If approved, this new revenue source would provide the General Fund with approximately $16,640 per year. She said the Budget has been prepared assuming this new revenue source will be approved by the Council, and adjustments will be necessary if the Council does not adopt the recommended in lieu of franchise fees.

Leahnette Rivers explained that the City is currently in the process of completing a Water Rate Study. She said the rate study should be completed in June. She said preliminary feedback from the rate consultants indicates that the study will recommend a significant increase in the City's water rates. She said several factors contribute to this increase, including a 66% increase in the rates charged by St. Helens for the wholesale purchase of water. She said state and federal funding agencies will require significant increases in the City's water rates in order for the City to qualify for grant and loan funds for the reservoir project. She said the Budget was prepared assuming a 20% increase in water rates during the upcoming fiscal year. She said she thinks this number is conservative. She said staff will not recommend a specific water increase until the rate study is available.

Leahnette Rivers said the proposed Budget provides for the same level of service as in the current year, with the exception of the cross-connection program. She said the proposed budget has been prepared with the City operating, installing and inspecting backflow devices under the City's cross-connection program, instead of making the property owner responsible. She explained that the City Council asked the Water Source and Development Committee to study the City's cross-connection program and come up with recommended improvements or changes to the program. She said the Water Committee has completed their study and review of the program, and they have forwarded their recommendation to the City Council. She said the Water Committee has recommended that the City assume responsibility for inspecting, testing and installing all backflow devices, and that all new construction be required to install a backflow device, and that a retrofitting program be instituted to provide devices to existing connections. She said this will, over a long period of time, result in a backflow device on each water connection.

Leahnette Rivers explained that the Budget increased significantly over the prior year due to an increase in capital projects. However, she said the operating budget, including capital outlay costs, increased by 6% over the prior year.

Public Hearing opened.

No comments were heard from the public.

Public Hearing closed.

Leahnette River briefly reviewed each section of the proposed budget with the Budget Committee. Members of the Committee discussed the proposed budget with staff at length.

Chair Kanzler recommended the Committee schedule a second meeting. It was the consensus of the Committee that the next meeting be held on Wednesday, May 2, 2001 at 7:30 p.m. in the Council Chambers of the City Hall.

There being no further business to come before the Committee, MOVED (HUDSON), SECONDED (SCHMOR) AND CARRIED UNANIMOUSLY THAT THE MEETING ADJOURN AT 8:50 P.M.

Return to Columbia City Home Page