CITY OF ESTACADA BUDGET COMMITTEE MEETING MINUTES

CITY COUNCIL CHAMBERS

TUESDAY, MAY 15, 2001 – 7:30 PM

A. Call to Order – Chair Polzin

Chair Polzin called the meeting to order at 7:30 pm.

Present: Cr. Troeh, Cr. Gavic, Cr. Hartwig, Cr. Akins, Cr. Butcher, Kay Nelson, Sandy Pense, Brent Dodrill, Linda Watterud, Jackie Freeborn, Jerry Polzin, CM Ealy, PWS Strawn, CR Carey.

Absent: Cr. Atkinson, Mayor Austin, Dan Burke.

Kay Nelson moved to accept the May 8, 2001 budget committee meeting minutes. Sandy Pense seconded the motion. The motion passed with 9 yes and 2 abstentions (Butcher, Polzin).

B. Departmental Budgets

CM Ealy reviewed information discussed at the previous two meetings and reviewed his staff memo.

Cr. Hartwig commented that he feels all franchise fees should be placed in the street fund and that the timber park fund should not be included in the general fund because it is outside the city limits.

Water Fund – PWS Strawn stated that there is a proposed 3% rate increase included in the water budget that will generate $9,450 for line rehab. The Committee discussed water loss and the need for money to fix lines that continually leak. The budget committee would like this to be a top priority for the Council to pursue. PWS stated that there is a transfer from the Water System Improvement Reserve fund of $152,666 to help pay for the water treatment project. This fund will be depleted and will begin to rebuild next year.

Sewer Fund – PWS stated that there is a proposed $5.00 per month rate increase included in the sewer budget. This is the remainder of the increase asked for last year as per the wastewater master plan. This increase will generate $67,275 to be used for the dechlorination project mandated by DEQ. There is also $30,000 budgeted for an I/I project. There are no expenditures planned for the sewer system improvement reserve fund.

Street Fund – PWS explained that the street fund revenues are from the state highway tax and a transfer in from the general fund of franchise fees. There is also a $25,000 SCA grant included in the street budget. The Committee discussed the increase in personnel services in the street fund. PWS stated that administrative time has been added and more work will be done by city staff. The Committee also reviewed contractual services. No expenditures are planned from the street system improvement fund.

Storm Drain Fund – PWS stated there is a proposed 3% rate increase included in the storm drain fund that will generate $3,570 to be used for a line rehab project. There are no expenditure planned from the storm drain system improvement reserve fund.

Capital Construction Funds (35 & 70) – CR Carey explained the two construction funds. Fund 35 is the last part of the grant money and expenditures for the water treatment project. Fund 70 is the construction fund for the Espinosa LID project.

Debt Service – CR Carey reviewed the debt service funds. The City will begin levying for the 1973 Water GO Bond after three years of no levy. The City will make a large payment of approximately $66,000 on this bond to reduce the principal in half and reducing the life of the loan from 12 years to 5 years. This will also save approximately $36,000 in interest.

Fund 85 includes the 1994 Industrial Park LID funds and the Espinosa LID funds. Both of these projects are funded by participating property owners. The 1994 Industrial Park LID will be paid off this year – 12 years early. This will save approximately $13,000 in interest. The Espinosa LID will begin payments this budget year and is a 10 year loan.

Fund 86 is the 1998 Hwy 224 Industrial Park LID fund. This project is paid for by the participating property owners. This fund collects the property owner assessments and pays the debt service principal and interest.

The total proposed budget with amendments is $4,251,415.

C. Receive public comment on proposed 2001-02 budget.

Chair Polzin asked for any public comment.

Steve Stone, President, Estacada Chamber of Commerce – Commented on the Chamber’s request for $3,500 to be added in the budget to support them. The Committee discussed the request and it was consensus to not add the request to the budget. The Committee would like staff to work on a procedure to review or approve funding for various community organizations.

D. Motion to approve proposed budget (with amendments)

Cr. Butcher moved to approve the City of Estacada’s 2001-02 budget as amended. Kay Nelson seconded the motion. Roll Call Vote: Cr. Troeh-yes, Cr. Gavic-yes, Cr. Butcher-yes, Cr. Akins-yes, Cr. Hartwig-no, Brent Dodrill-yes, Sandy Pense-yes, Jackie Freeborn-yes, Linda Watterud-yes, Kay Nelson-yes, Jerry Polzin-yes. The motion passed with 10 yes and 1 no.

E. Motion to approve an amount or rate of total ad valorem property taxes to be certified for collection.

Cr. Troeh moved to approve a rate of $2.6749 per $1,000 of total ad valorem property taxes to be certified for collection. Sandy Pense seconded the motion. Roll Call Vote: Cr. Troeh-yes, Cr. Gavic-yes, Cr. Butcher-yes, Cr. Akins-yes, Cr. Hartwig-no, Brent Dodrill-yes, Sandy Pense-yes, Jackie Freeborn-yes, Linda Watterud-yes, Kay Nelson-yes, Jerry Polzin-yes. The motion passed with 10 yes and 1 no.

Kay Nelson commended CM Ealy on this year’s budget.

Chair Polzin thanked everyone for their efforts in reviewing and approving this budget.

F. Adjourn

The meeting was adjourned at 10:00 pm.