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HomeMy WebLinkAbout1985-11-22 Finance Committee MinutesFinance COMMittee November 22, 1985 at 3:00 p.m. Minutes Present: Councilor Arthur Tilley, Chairmen Councilor Jamas Cox Councilor Larry Willey Councilor pay Lebowitz John Flynn, City Manager Ted Jellison, Finance Director Sally Thompson, Community Development John Frawley, city Engineer Dave Pellegrino, Purchasing Agent Dale Theriault, Director of Parks 6 Recreation 1. Water District Rate Increase. Peter Caldwell, General Manager Of the Bangor Water District, as present to discuss their proposed request far a 18.548 rate increase, which would go into effect on April 1, 1986. Two thirds of the proposed increase will be used to fund capital improvement projects amounting to $1.8 million dollars. Mr. Caldwell outlined the improvements projects which include the Johnston Station, Boaarc area, a proposed garage, a water vain between the Gilman Road and Hagan Road on Stillwater Avenue, Thames Hill Standpipe, and the study and design of a new river crossing in the event of potential ice damage as a result of the breach in the Bender Dam. The City Charter stipulates that the City Council will appoint vanbers to the Trustees of the Water District and the trustees than have full re- sponsibility o-sponsibility for the operation of the District. Councilor Tilley requested copy of the District's annual audit report. Caldwell indicated he would forward a copy of the annual report to the Finance Director for distribu- tion. The Committee discussed hydrant rental emerges by the dater District which currently approzimato $250,000 to the City of Bangor. Based upon fire requirements, municipalities pay 179 of the gross annual revenue require- . ments. The District than takes the total number Of hydrants divided into the revenue requirements which equals the rate per hydrant. 2. Cam unity Development. The Committed approved one loan for two buildings located at 114 Forest Avenue and 125 Garland Street. Willey requested a status report on the various rehabilitation projects as wall as reviewing guidelines at a future date and stated that he felt the Cannunity Development Committee should be responsible for these loan approvals. 3. Wastewater Treatment Plant - Micro -Hydro Project. Since the last Finance Camnittee meeting, Dave Pellegrino and Ralph Mishou obtained information requested by the Carnnittee members. Dick Hathaway, an engineer from Industrial High Tech, was present. Mistou had contacted the State Department of Energy and found there is no available State money for the project. Pellegrino contacted the Federal Department of Finance C mutittee -2- 11/22/85 Energy and was told there 1s no money. They did suggest a regional program with the Coalition of Northeastern Governments which has money for bio -mass projects. Pellegrino talked to the person in charge of this project and was told it was limited W the bio -mass projects. The Department of £anergy, is getting away from funding of these projects. In talking with John Baldacci, who in tum called John Kerry regarding the importance of Ube project, Baldami indicated that Worry will be applying for sore special project grant money on the Federal level from which John feels relatively confident the City could get $10-$15,000. Prior to Dick Hatbaway's presentation on the micro -hydro project, Mishou indicated be felt the project should be determined on feasibility rather than funding sources. Willey again questioned Ube appropriateness of the City being involved in the project. The City Manager indicated the idea came aLvut as the City could save electrical generating costa at the Treatsent Plant by using the water that flows from the Plant and into the river. An engineering ompany indicated it was feasible, and that feasibility would pay dividends in power generation. Councilor Cox commended Mishou for the manner in which he operates the Trowa ent Plant, and based upon the interest in the project and the proposed savings of at least one month's electrical bill, Cod endorsed the project. Tilley felt the original proposal was excellent and as going to cost the City $30,000 with a $7,500/annual return. However, now that the City Would have to put in at least $70,000, he indicated it would be difficult to justify. Willey voted not to proceed with the project at this time but requested Mishou to follow up on me monies, more factual information as far as numbers are concerned and the Bangor Hydro. He also requested that a Council Other be prepared to rescind C.O. 84-233 and the sale of the turbines. Mishou asked the Committee to consider the fact that if the City goes ahead with the project and it fails the tmney can be recouped; however, if the project is successful, there is a lot for the City to gain. The Camfttee vote was 2-1 for denial of the micro -hydro electrical project. 4. Council Order 85-10 "Acceptance of Jure 30, 1985 Audited Financial Statoomenta". Gerry Black of Brcoks and Carter was present to discuss guestioom from the Committee regarding the audited financial statements. Tilley questioned the non -currant reivables as listed on Page 2 of the report, which is for Bass Park. The Finance Director indicated the debt se cost is not set up as an accounts receivable as it used to be recognized in the budget. Bass Park is accruing the debt service cost even though no bill is sent W tbmn. Tilley questioned on Page 4 an excess revenue of $587,580 and asked if there was a breakdown. Jellison indicated the largest part of the amount was the excess revenue earned onnn estment i as compared to the Wdgeted figure, aned was requestedto providea complete breakdown. Tilley questioned the favorable expenditure variance on Page 4 for $849,138. Jellison indicated he had provided a list at the end of the fiscal year detailing what this was. Tilley indicated that when the current year's budget was being discussed the budget figures for last year were used as a reference point. Actuals wouldn't have been available at that time. Willey questioned longterm debt on Page 14 and the $1,575,000. Jellison indicated that the $1,575,000 represented two years of financing, which was 958 of what bad been retired in the two year period. Willey asked if a rule could be established Whereby not more than 808 of the mount retired he issued. The Finance Director and City Manager have been discussing this, point for the upcoming budget year. Finance CO mittee -} ll -22-85 For the FY 86 budget, approximately $1,140,000 will be retired. On Page 16, Tilley questioned if the $800,000 amount was for Bass Park, which the Finance Director indicated was retract. On Page 4, Willey questioned excess of rer expenditures of $2.38 million and asked how it could be reconciledagainstthe $3.67 million noted in the General Fund Designated Balance. Jellison said that Page 4 is net a cash statement and can't be related to the other amount. Under Note A, Willey mentioned the $1.4 million dollar amount paid for employee retirement, and felt the policy should he debated by the Council this year. The City Manager indicated it is being considered by the administration. Any has ruling would affect new employers only. Tilley questioned the section relative to the City advancing funds to the Airport and Hospital Funds and placing a control on it with no funds being advanced without Counoil approval. Jellison indicated no advances had been made within the last 5 years. Willey mentioned taxes collected in advance and questionetl continued deductibility of property taxes for next year. On Page 21, Tilley questioner] sChO01 subsidies. The report states that for FY 85 the amount of $3,680,940 is mm budgeted to nems in the year ending June 30, 1985. Gn Page 22, Tilley mentioned the cash in the General Fund has increased $2 million in the course of one year. Jellison indicated it sea due in part because the Designated Fwd Balance is up $900,000. Tilley asked if the sewer rate is related to the Water District. Jellison said there is no connection at all. A sewer rate study has been budgeted for this year in terms of long term rates. On Page 38, public safety has increased due to police and fire departments. The Committee recommended approval for passage of Council Order 86-10. 5. Bids: a. Police Station Reef. The Cmmittee recommended approval of award to Hill Roofing Company, the low bidder, at $31,900.00. 6. Maine DOT Protects. John Frawley briefly reviewed each project with the O mittee. Most projects came as a result of the Bangor Area Comprehensive Transportation Study. Stillwater Avenue and Essex Street traffic signals (City share - $1,400) Sctaduled by MDGT for bids in 9/87 Main Street Improvements for resurfacing (City share - $40,000) Scheduled by MDCIB for bid advertising in 2/87. Staff feels it should be done 2/86 to coincide with Opening of new bridge. Hogan Poad Improvements to add a thru lane to the I-95 (City share - $154,000). Administration remnnendsa it as a low priority item. State Street is a paving project from Hancock Street to Hogan Fxad (City share - $34,000) and scheduled to be advertised in 2-87 by RMOT. Staff felt it should be given consideration for future funding. state Street, Broadway and oak Streets is a traffic signal project. (City share - $4,400). it is scheduled to be advertised in 9/87 and the staff remnmuended it be moved ahead. Finance Committee -4- 11/22/85 Ohio Street ant Griffin load is for a traffic signal system (City share - $9,000). Scheduled for advertising in 9/87. Center Street and Broadway is for modifications m traffic signals (City - share - $8,000). Scheduled for advertising in 9/87. Frawley recr mmeMed that all projects be given approval except for the Henan Road project. No funding would be required by the City until 1987 except for the Main Street project. The Committee neommendM approval of Council peeler 85-16 aM further recommeMM Council Ostlers 85-15, 85-17, 85-18, 85-19, 85-20 and 85-21 be continued to the second meeting in January, as suggested by the administration. 7. Saratoga Avenue - Sewer Proffers. This iter, will be discussed at the next Public Works Committee meeting on December 2nd at 3:00 p.m. 8. 14th Street Community Center Budget and (avenues. Tilley questioned a difference, of $28,000 in expenses over revenues when reviewing an the budget, iMicating it was reflection on the operation of the Cancer. He had in icated at the prior evening's Council meeting that he felt the the Council skald consider giving the School Department the 14th Street Canmunity Center if they wanted it. As an economy measure, he felt many of the programs currently operating out of the Center mould be rowed to the Bass Park Corporation and that office space could he fount for the Parks and Recreation Department. Theriault disagreed with Tilley's opinion. The Committee and administration agreed that the School should request the building, if they do need it. Committee adjourned at 5:30 p.m.