The meeting was called to order by Mayor Cheryl A. Young at 7:11 p.m.

MEMBERS PRESENT:

Marian Calnon

Jann Forsyth

Gary Hudson

Karen Ladd

Sally Ann Marson

Bob Schmor

Cheryl A. Young

MEMBERS ABSENT:

Bill Guy

Larry Kanzler

John Yazzolino

ALSO PRESENT:

Micah Olson, Public Works Superintendent

Leahnette Rivers, City Administrator/Recorder

A quorum was present and due notice had been published.

Mayor Young opened the nominations for the position of Chair.

MOVED (SCHMOR), SECONDED (FORSYTH) AND CARRIED UNANIMOUSLY TO NOMINATE GARY HUDSON AS CHAIR.

There being no further nominations for the position of Chair, Mayor Young closed the nominations. Mayor Young called for a vote. All voted in favor of Gary Hudson serving as Chair, and Mayor Young declared him duly elected.

Mayor Young turned the meeting over to Chair Hudson.

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

MOVED (YOUNG), SECONDED (CALNON) AND CARRIED UNANIMOUSLY TO NOMINATE SALLY ANN MARSON AS VICE-CHAIR.

There being no further nominations for the position of Vice-Chair, Chair Hudson declared Sally Ann Marson duly elected as Vice-Chair by acclamation.

MOVED (MARSON), SECONDED (YOUNG) AND CARRIED UNANIMOUSLY TO NOMINATE JANN FORSYTH AS SECRETARY.

There being no further nominations for the position of Secretary, Chair Hudson declared Jann Forsyth duly elected as Secretary by acclamation.

Leahnette Rivers reviewed the budget message with the Budget Committee. She explained that the budget is conditioned upon a water rate increase effective in February 2005 equal to approximately $2.00 per customer as part of the rate requirements associated with the Safe Drinking Water Loan. She said service levels remain about the same. She said the Council decided to study policing options during their goal setting session, so that will be upcoming during the budget year. She said for budgeting purposes, the police services have been appropriated in the same manner as past years. She said the budget reflects significant cost savings as a result of the City's new street lighting system. She said the Street Committee will be prioritizing street lighting needs and looking at over lit areas, and this budget includes some appropriations for street light improvements.

Leahnette said the budget and financial policies were updated shortly after the City's goal setting process. She said the City's contingency policy was improved to require a 10% contingency (up from 5%) in each of the major funds. She said the budget includes $542,000 in reserves, which are mostly related to system development charge (SDC) revenues. She said these funds are being reserved to pay for the growth related portion of future projects in our street, water, sewer and park systems. She said the financial policies were improved to establish a goal of at least 3-months operating expense as a beginning fund balance in each of the major funds.

Leahnette said the total overall amount of this year's budget decreased significantly from last year, primarily because of the substantial completion of the City's water reservoir project. She reviewed the City's debt management section, which includes $705,000 due for the General Obligation bonds for the sewer system, $12,000 due for the water rate analysis and reservoir siting study, the new debt of $2,990,500 from the Safe Drinking Water Loan Fund for the reservoir and water source improvements, and the new debt of $14,000 due for the street lighting project.

Leahnette said staffing levels remain about the same as in the prior year, and the budget includes a 2% cost of living adjustment effective July 1, 2004. She said medical insurance costs will increase 15% this year.

AGENDA ITEM 4 PUBLIC HEARING: To receive comments from the public on the proposed budget for fiscal year 2004/05.

Public Hearing opened.

No comments were heard from the public.

Public Hearing closed.

AGENDA ITEM 5 PUBLIC HEARING: To receive comments from the public on the proposed use of revenue sharing funds for fiscal year 2004/05.

Leahnette said the budget proposes the revenue sharing in the amount of $8,984 be used for park maintenance.

Public Hearing opened.

No comments were heard from the public.

Public Hearing closed.

Leahnette reviewed the proposed budget with the Committee. She recommended the Budget Committee consider approving changes to include a new revenue source, In Lieu of Tax Fees, which will be collected from Morse Bros., and to include a grant from the ODOT Traffic Safety Program for a laser-radar measuring device for the police department. She recommended appropriation changes as follows:

MOVED (MARSON), SECONDED (CALNON) AND CARRIED UNANIMOUSLY TO ACCEPT THE RECOMMENDED CHANGES.

Leahnette noted that the building improvement appropriations in the Administrative Department consist of refurbishing the gym floor in the Community Hall, putting shutters on the exterior of the Community Hall, and installing vinyl windows in the City Hall. She said the Building Department expenses are lower than last year based upon anticipated permit activity. She noted that the equipment reserve in the General Fund has grown to $29,677, up $6,296 from last year. She said capital request for Public Works include a grading blade, and an asphalt/concrete saw. She said the Parks Committee has asked for picnic tables, benches and plantings. She said Administration Department is requesting a scanner, and the Police Department is requesting a computer, a laser speed gun and a video camera.

Leahnette noted that the Street Department will pay for street lighting maintenance and improvements this next year. She said a grant to overlay Second Street will be requested. She said appropriations to extend the sidewalk past the new park at the reservoir site are included in the budget. She said the design engineering for the "L" Street bridge project will be paid for during the 2003/04 year and completed during the upcoming year. She said the bridge construction work will be provided for in the 2005/06 year.

Leahnette explained that the Street Development Fund is reserving money for the City's match for the "L" Street bridge construction project. She said the McBride Meadows subdivision will be eligible for an SDC credit equal to the value of the land they are dedicating for park purposes, which will reduce the amount of SDC revenue the Park Development Fund receives. She said appropriations for the construction of a picnic shelter and parking area in Bundy Park are provided for. She said appropriations are included for a small picnic shelter and park bench in Carolyn King Memorial Park.

Leahnette explained that a contribution of water SDCs in the amount of $84,230 is included in the Water Fund budget to help pay for the first Safe Drinking Water Loan payment. She said the first loan payment is expected to be $116,480, and an unappropriated ending fund balance in the amount of $41,250 is provided to accumulate revenues for the 2005 debt payment. She said $137,651 remains reserved for future Water Improvement projects.

Micah Olson said they have caught up on the septic tank pumping, so this next year they will be focusing more on replacing old steel septic tanks and with new concrete septic tanks. In addition, they will focus on adding new tanks to reduce the number of shared tanks.

Leahnette said $89,000 is reserved in the Sewer Fund and $73,701 is reserved in the Sewer Development Fund for the RCE lift station improvement project. She noted that the sewer project will be fully paid for in 2012.

MOVED (MARSON), SECONDED (YOUNG) AND CARRIED UNANIMOUSLY TO APPROVE THE BUDGET WITH THE CHANGES NOTED.

MOVED (SCHMOR), SECONDED (CALNON) AND CARRIED UNANIMOUSLY TO LEVY A PERMANENT TAX RATE OF $1.1346 PER THOUSAND AS PROVIDED FOR IN THE 2004/05 BUDGET.

MOVED (YOUNG), SECONDED (MARSON) AND CARRIED UNANIMOUSLY TO LEVY $124,631.00 FOR THE SEWER DEBT LEVY AS PROVIDED FOR IN THE 2004/05 BUDGET.

Sally Ann Marson commended Leahnette Rivers and City staff for receiving the Distinguished Budget Presentation Award.

There being no further business to come before the Committee, the meeting adjourned at 8:16 p.m.

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