Minutes of the Centerville City Council special meeting held Tuesday, May 26, 2009 at 7:00 p.m. in the Centerville City Council Chambers, 250 North Main Street, Centerville, Utah.

MEMBERS PRESENT
Mayor                               Ronald G. Russell

Council Members         Justin Y. Allen
                                          Paul A. Cutler
                                          Ken Averett
                                          Sherri Lyn Lindstrom
                                          Lawrence Wright

STAFF PRESENT
                                          Steve Thacker, City Manager
                                          Blaine Lutz, Finance Director/Assistant City Manager
                                          Kathy Streadbeck, Recording Secretary 

WORK SESSION - FY 2010 BUDGET

Revenues

Blaine Lutz, Finance Director, reviewed the projected revenues for FY 2009-2010. The projected estimates are conservative. Revenues are down in several areas due to the down-turned economy, but there are also some areas that are holding steady or that may show a slight increase. Overall, the projected sales tax revenues for FY 2008-2009 are about $200,000 less than the adopted budget. Blaine is projecting sales tax revenues in FY 2009-2010 will equal the FY 2008-2009 sales tax revenues.

Steve Thacker, City Manager, reviewed some options for providing more funding in the General Fund--i.e., shifting the spring cleanup costs from the General Fund to the Sanitation Fund; adjusting revenue assumptions; reducing projected line items; and/or use the fund balance. Some or all of these options may be explored.

Councilman Wright suggested outsourcing some work that is currently done in house, such as snow plowing and possibly consolidating police services. 

Mr. Thacker said outsourcing snowplowing would not likely save money, and may not be beneficial as Centerville takes great care with this service, and some quality may be sacrificed if it were outsourced. As for consolidating the police services, this may be a political issue. He said he is not opposed to this concept, but this would require an extensive study.

Mayor Russell said he has spoken with the South Davis Recreation Center about taking on the baseball program. This may save Centerville some money and he will continue to pursue this option. He said he will also mention the possibility of a consolidated police service with other South Davis County mayors in the future.
Mr. Thacker said a new source of revenue is the proposed recycling program. Currently only 600 households have opted out of the program. This is a little more than15% of residents.  Staff will be meeting during the next winter to review the water system master plan and discuss possible water rate increases. This will not affect this budget, but will play a role in future budgets.

Councilman Wright suggested charging residents for use of the church well water. The majority of the Council was not comfortable with this suggestion.

Employee Compensation and Benefits

Steve Thacker, City Manager, said he does not recommend a market adjustment to the pay ranges this year due to the down-turned economy.  He distributed three scenarios for pay increases ranging from 1.5% to 3% if the Council feels a pay increase should be provided. The General Fund impact for the three scenarios would range from $75,000 to $85,000, including an additional 0.5% held out for the bonus pool.  Mr. Thacker said at a recent Utah City Managers Conference it appeared that about 50% of the cities will not be giving a pay increase this year and most of the other cities are giving no more than a 2% increase. Mr. Thacker also informed the Council that the healthcare costs to the City will only increase 2% this year.

Councilman Wright said there are some healthcare companies that offer significant savings if a company participates in some type of wellness program. He asked if the City’s healthcare provider offers any such programs. He said this may be a way to lower healthcare costs as well as benefit City employees. Councilman Averett agreed this would be worthwhile. Councilman Allen said he would not be opposed to researching any options that may be available.

Mr. Thacker said the City does offer a simple version of a wellness program. Employees are provided a $200 reimbursement if they enroll in a gym membership and get a physical each year.  They can also attend a health fair sponsored by the City’s healthcare provider and held at City Hall each year.  Mr. Thacker was unsure whether the City’s healthcare provider offers any reduction in premiums.

Blaine Lutz, Finance Director, said he would check with the City’s healthcare provider regarding a possible discount for implementing wellness programs. Perhaps this is something that could be considered during next year’s budget process.

Council members discussed the three scenarios for pay increases as provided by staff. Overall, the Council felt some type of pay increase is appropriate. Council members agreed the City’s employees are most important and deserve a pay increase. The majority of the Council agreed they would like to implement scenario #3 into the budget.

Mr. Thacker recommended a pay grade change for the Community Development Director position. He recommends this position be bumped grade from 22 to 23. Recently an analysis was completed showing this position was currently below the market. This increase will put the Community Development Director position in the same pay grade as the Public Works Director. Mr. Thacker clarified that this action will not increase the employee’s actual salary this year.

Mr. Thacker reviewed the retirement program with the Council. He said this year’s impact will be minimal, but next year’s impact will be significant. Currently, the City contributes 11.66% of a regular employee’s salary and 23.24% of a public safety employee’s salary into the State retirement program. In addition, the City pays 3.5% for employees into a secondary retirement program. In order for the State to make up the money they have lost in the current economy, they will have to raise the percentages by 2.5-4% for regular employees and 3.5-7% for public safety employees. This will make a significant difference in next year’s budget. He explained there are a number of changes to the State retirement program being considered. These possible changes will be discussed by the Legislature later this year. Mr. Thacker said he will be discussing the potential ramifications of this with all City employees in the near future.

New Parks Department Maintenance Position

Steve Thacker, City Manager, discussed the proposed new Parks Department Maintenance Position. The request for this additional position is due to the increased parks acreage being maintained and the Parks and Recreation Director taking on additional responsibilities, including some Emergency Management duties. This new position will provide the department continuity and will help in managing seasonal employees more effectively. It will also move the department head into a more managerial position and reduce his overtime hours.

Capital Expenditures

Steve Thacker, City Manager, reviewed the proposed Capital Expenditures list in his Budget Message and responded to questions from the Council. Overall, the Council appeared to be comfortable with staff’s recommendations.

Capital Projects

Steve Thacker, City Manager, discussed possible capital projects and the sources for funding those projects. There is not much funding available due to the economy. He explained that a detailed list of projects proposed for funding will be forthcoming. Currently, the budget only shows a lump sum for capital projects, not a specific list identifying which projects will be funded.

Blaine Lutz, Finance Director, recommended asking department heads to hold off on equipment expenditures until later in the fiscal year. He said in the past, department heads start making purchases as soon as the budget goes into effect. It may be prudent to watch the timing of expenditures more closely this coming year.

The Council discussed the many possible capital projects. The Council agreed that $50,000 should be budgeted for the bike lane designation (striping and signage) as presented by the Trails Committee. This funding would be loaned by the General Fund to the Parks Capital Improvement Fund. The Council also discussed the Parrish Creek Parkway and agreed this project should remain a top priority when funding becomes available.

Mr. Thacker said the City is hopeful that some Federal stimulus funding will be made available for the Parrish Creek Parkway. If this happens, staff will bring a proposal back to the Council on moving forward with this project.

The Council discussed landscaping Parrish Lane west of I-15.  Mr. Thacker said UDOT has allotted a $10,000 reimbursement for this purpose. He said he has asked UDOT what the deadline is for spending this money, but is still waiting for the answer.

The Council discussed several options regarding landscaping Parrish Lane west of I-15, including trees, simple plantings, planter beds, etc. Mayor Russell suggested using this allotment for a “Welcome to Centerville” sign at this location.

Councilman Allen said he would like to enhance Centerville’s interchange. This has been his wish for several years. He also suggested having the City’s contracted landscape architect (Curtis Tanner) prepare a simple conceptual plan for the area. He said he would be willing to take a plan to the State to see what the cost would be and what funding may be available for such a project. The Council was amenable to having a conceptual plan prepared.

Contingency Budget

Steve Thacker, City Manager, reviewed the proposed Contingency Budget and responded to questions from the Council.

Museum Board Requests

The Council discussed the proposed budget from the Museum Board. A majority of the Council supported providing the Museum Board with the $15,000 requested, which would require another $5,000 in addition to what is in the Tentative Budget now.

Channel 17

The Council discussed the possibility of contributing some money to Davis County’s Cable Channel 17. A majority of the Council agreed to support Channel 17 with a $2,000 contribution, $1,500 of which would be provided by reappropriating the $1,500 that was unspent in the current budget for this purpose

Judge’s Salary
 
Steve Thacker, City Manager, reviewed the Judge’s current salary and the requirement of the new State law. A judge’s salary is to reflect 50-90% of a district court judge’s salary. Currently, Centerville’s Judge is paid about 55%. The Judge suggests his salary be raised to 70%, which calculates to about a $10,000 pay increase. The Council discussed the Judge’s request and agreed that 60% would be fair with respect to the current budget and economic times.

UTOPIA

Steve Thacker, City Manager, reported that Lisa Romney, City Attorney will be giving legal advice on this issue in a closed session at next week’s City Council meeting.

Open House

The Council discussed several preparation items for the June 2nd Council Open House. 
  
At 10:00 p.m. Councilwoman Lindstrom made a motion to go into a closed meeting to discuss the character and competency of individuals.

Blaine Lutz, Finance Director, and Kathy Streadbeck, Recording Secretary were excused.

CLOSED MEETING

At 10:00 p.m. a closed meeting was held to discuss the character and competency of individuals. In attendance were: Ronald G. Russell, Mayor; Council members Justin Allen, Paul Cutler, Ken Averett, Sherri Lindstrom, and Lawrence Wright; and Steve Thacker, City Manager.

The City Council reconvened in open meeting at 10:22 p.m.  A motion was made by Councilman Allen and seconded by Councilwoman Lindstrom to increase the salary of the Assistant City Manager by $3,000.  The motion was approved by unanimous vote (5-0).

A motion to adjourn was made by Councilman Wright and seconded by Councilwoman Lindstrom.  The motion was passed unanimously (5-0).  The meeting was adjourned at 10:23 p.m.