HomeMy WebLinkAbout1984-06-28 Finance Committee MinutesFINANCE COM ITTEE
June 28, 19M at 8:30 am
Minutes
Present: Councilor Jim Cox, Chairman
Councilor Ren Jordan
Councilor Arthur Tilley
Councilor Tom Davis
Councilor Marshall Frankel
John Flyrn, City Manager
Ted Jellison, Finance OSractor
Nave Pellegrino, Purchasing [gent
1. Bids
a. Cental Hygienist Wit. Award was approved to Schein rental
Equipment Corporation, the law bidder, at $2,019.00.
b. Welfare Food Purchases. Committee approved a contract with Westgate
IGA, the only bidder, at 10% off the cash register slip to welfare
recipients for food, household and personal items.
C. Security Guard at BIA. The Committee approved the addition of a
security guard at BIA under the current Nationwide Maintenance contract.
The company will provide a uniformed security guard, without firearms, eight
hours per day, seven days a week at a cost of $5.84 Per hour or $17,000 per
year.
Committee adjourned at 8:37 a.m.
Finance committee
June 28, 1984 at 8:00 am
minutes
Present: Councilor)Jim Cox, Chairman
Councilor Ken Jordan
Councilor Arthur Tilley
Council Chairman Willey
John Flynn, City Manager
Ted Jellison, Finance Director
Bob Miller, City Solicitor
1. CBsh'.Sarpins.
The Committee discussed three options concerning the $800,000
cash surplus with the Finance Director. They are as follows:
1) Increase the Contingency Account to $590,000 and would
establish -a credit reserve fund for future years of $]]5,000.
The $25,000 that cannot be appropriated for the credit reserve
would go to the Contingency which would leave a pure contingency
of .$150,000 after pay adjustments.
2) The entire $800,000 could be placed into a capital fund
contribution account which is a legitimate use as the City is
allowed.up to $2.00 per thousand dollars of valuation and it is
in excess of $900,000_ Would be used to offset future capital
needs and future borrowings.
3) put $400,000 in the capital fund contribution account and
establish a credit reserve fund for $400,000.
The City Solicitor suggested that if a credit reserve account
is established that the Council should well define "financial
emergency" as stated in the Statutes.
Councilor Tilley's proposal was to use the surplus to further
reduce the tax rate by using $200,000 of.the surplus and the
rest to be placed in a credit reserve account.
Councilor Jordan suggested the Contingency Account be increased
to $250,000 and that some of the funds beusedfor capital
improvements and the remainder to go into a credit reserve fund.,
Councilor Cox was in favor of this suggestion;'
Council Chairman Willey favored placing the maximum amount of
the surplusinto a credit reserve fund::_) Councilor Tilley. agreed
he would favor putting all but $25,000 into a credit reserve
account if there were a limit on how much money could accumulate
in that account.
The committee agreed to limiting the total amount in the credit
reserve account to 58 of the tax commitment which would be $]]5,000
this year.
2. The City Manager informed the .Committee that the City has had
two requests (one from the Chamber of Commerce and one from the
Water Bistrict� requesting that they become a part of the City's
health insurance package. The staff is opposed to this idea as
the City wouldn't have control over these employees and could
cost money and reflect poorly on the City's rating if the program
were misused. The City.Manager also indicated he would write to
the Blue Cross/Blue Shield representative asking that he not
encrage other firms to jointhe City's insurance plan, as has
been . the case with these tvn requests.
Committee adjourned at 8:50 a.m.
Finance committee
June 28. 1984 at 8:00 an
Minutes
The following is a
correction to the minutes prepared for the
Finance Committee''smeeting on June 28, 1984:
Paragraph 7: "Councilor. Jordan suggested the Contingency Account
be increased to $250,000 and that some of the funds be used for
capital improvements and the remainder to go into a credit reserve
fund. Councilor Cox was in favor of the entire amount being placed
into a credit resecac nt,
Correction Dated: 7-12-84