Tuesday, July 30, 2019
7:00 AM Meeting, City Hall
President Carlsrud called the meeting to order at 7:00 AM.
Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell, Commissioner Erickson.
Others Present: City Administrator Schelkoph, Finance Director Richter, Deputy Auditor Klein, City Attorney Martineck, Police Chief Hatcher
NEW BUSINESS
Continue discussing 2020 Budget
The commissioners listened to the following requests made by VC organizations:
Theresa Will, Executive Director for City County Health requested the city increase the support to CCH by 5% from $26,791 in 2019 to $28,131 for the 2020 budget.
Amy Pederson, Recreation Manager and Ashley Martinson, Office Manager with the VC Park District requested $20,000 continued support to help with the operational costs of the Recreation Center.
Jennifer Feist, Director of Development for VCBC Development Corporation requested approval of $33,000 from Fund 240 for administrative services. That is an increase of $1,000 from last year.
Kaye Vinje, Executive Director of the Valley City Area Chamber of Commerce Board requested approval of $12,000, the same as in 2019 plus an additional $5,000 for Summer Nights on Central 2020.
City Administrator Schelkoph reported that the Valley City Troubadours requested $1,500 for 2020 which is the same amount as requested for the last 20 plus years.
Auditor Richter reported that Community Services again didn’t need to request funding for 2020.
Healthcare
City Administrator Schelkoph reported that BCBS representative met with the City on Wednesday, July 24th with news that 2020 premiums are increasing by 25% and claims expense expected to increase 29%. He proposed the Employees pick up 8% of the increase in premiums and the City pays the balance. An 8% increase will cost the employee an additional $522 for a family plan. In addition Schelkoph proposed to keep the HSA contribution at the same level as last year. The IRS increased the annual high deductible amount by $100 from $2,700 to $2,800 with a $5,600 maximum for a family plan. In order for an employee to receive the same level of contribution the employee must contribute the following to their HSA: $767 for family plan, $613 for single plus dependents and $523 with a single policy. Claims expense increased by $2,598 per policy. The increase to the budget for the new healthcare information would be $48,841. Schelkoph said that a committee has been created to look at other insurance options for 2021. Currently NDIRF is working on creating a healthcare plan to offer to political subdivisions in mid-2020. Another option that will be investigated is United Health Care.
Pat Hansen, Director of South Central Adult Services requested $20,000 to support their transit program.
Bobby Koepplin, Visitor’s Committee Chair requested approval of the Convention and Visitors Bureau (CVB) budget of $80,000. Occupancy Tax revenue is the source for CVB funding and the amounts disbursed is dependent on its tax revenue.
Bobby Koepplin, Visitor’s Committee Chair requested a $4,000 for the Beautification Committee. The revenue source for the committee is from city sales tax dedicated to Retail Image Enhancement Fund 242. Commission approved using Retail Image Enhance funds for the committee on 04/15/14.
The representatives for the VCSU Community School of the Arts were out of state at a Convention so didn’t present. They’d submitted a request $1,500 for Valley Voices, same as in prior years.
Consider purchase of 2003 KME Tower Ladder Truck for VCFD, in the amount of $194,000 with an additional $6,000 for lights and radio
Chief Magnuson traveled to South Carolina to look over the 2003 KME tower ladder truck. He and Administrator Schelkoph talked about the condition of the unit and the pricing and felt it was good to proceed with purchasing it. The company will bring truck up to Valley City, go over it from top to bottom and warranty it for a year.
Commissioner Magnuson moved to approve the purchase of the 2003 KME Tower ladder truck for $194,000 plus up to $6,000 for lights and radio as needed, seconded by Commissioner Powell. Motion passed unanimously.
Auditor Richter recommended meeting on Monday, August 5th at 7 AM to finalize and vote on the preliminary budget.
Determine
if the city increase the mill levy or to keep the mills the same as in 2019 by
using a different revenue source to offset the increase. As presented, with the
organizational request and the increase in health insurance costs the budget is
currently 6.39 mill higher than in the 2019 budget.
Commissioner Bishop stated that he is opposed to raise the mills for the 2020 budget with the minority of people/property supporting the mills. Asked to come back with some figures to take the increase out of the electrical fund and/or increase the electrical rates as needed to make the transfer. Schelkoph reported that rates would not need to be increased to support this transfer. Right now we are at 11.4% transfer from enterprise funds to general government. By NDCC 20% transfer is allowed. Commissioner Magnuson concurred.
One last item Administrator Schelkoph recommended increasing the transfer from general fund to the Street department by $25,000. Current transfer is budgeted at $200,000 and recommended increasing to $225,000.
Next meeting set to meet again on Monday, August 5th at 7 AM.
Dave Carlsrud, President of the
City of Valley City Commission
Attested to by:
Avis Richter, City Auditor
City of Valley City