Mayor Hawkins called the meeting to order with Councilmembers Turner, Hunt, Amenn, and Price present. By motion of Councilmembers Price and Amenn, Councilmember Minder was excused. City Clerk Gilleland was also present. Public Works Director Light was absent due to illness. The purpose of the meeting was to hold a workshop on the 2005 proposed budget. Discussion would be held on those areas of the budget that had not been covered in Monday night’s meeting.

City Clerk Gilleland reported that she had redistributed $1,000 within the Street Fund to snow removal and $1,000 to street striping. The Fund is balanced with an approximate $400 ending fund balance. Some discussion followed.

City Clerk Gilleland provided a brief overview of the Municipal Capital Improvement Fund. The 2005 budget presumes the Gateway Park project will be completed in 2004, but if not, an amendment could be accomplished early in 2005 to account for additional work. No other projects are planned in this fund until the park is finished. The only other expenditures from the Fund are the obligated transfers to the bond funds discussed last night.

Council had discussed most of the General Fund the previous night. Mayor Hawkins stated she talked to the Sheriff’s office today to see if they had preliminary numbers for the contract. They did not. Mayor Hawkins provided information regarding areas to be included in the negotiations such as overhead charges and the megahertz system (ownership vs. user fee). She also reported she is still attempting to obtain information regarding court costs but we will probably have to estimate because the statistics for Gold Bar cases are not available. The Sheriff’s office will be providing proposals for existing level of service, for reduced level of service, and a new jurisdictional proposal. Some discussion followed.

City Clerk Gilleland reported she had corrected a few line items and balanced the Water Operations Fund, leaving an ending fund balance of zero. She then explained proposals regarding the various water charges in order to accomplish the redistribution of revenues as discussed at the revenue workshop held in October.

The proposals keep operation revenue and capital revenue separate. To allow the $5,000 transfer of assessment revenue to the emergency fund, a resolution would be needed. In addition, an ordinance amending the water code sections that govern the distribution of assessment fees and the establishment of the emergency fund must be adopted.

City Clerk Gilleland reviewed for Council staff’s suggestion to reconfigure the base water rates and assessment fees in order to distribute collections as discussed at the revenue workshop. The structure and distribution between operating funds and capital funds would be changed but the customers would be paying the same total dollar amount. This would be accomplished by removing the "reserve component" portion of the fee schedule and adding the $2 charge to base rates. The multi-unit of the "reserve component" ($1.40/unit) would be added to the multi-unit fee for assessments.

City Clerk Gilleland then explained a proposal to complete the revenue redistribution to allow additional operation funds as previously discussed. She recommends reducing the assessment charge and increasing the water base rates by the same amount. She provided examples based on $1.00, $1.25, and $1.50. City Clerk Gilleland also requested Council to consider allowing staff to contact the engineers at the first of the year to do a quick rate study, using more up-to-date figures, in order to confirm whether or not our rates are correct for the short and long term. The engineers have indicated it shouldn’t cost too much. Discussion followed. City Clerk Gilleland will provide a copy of the staff proposals discussed at this meeting to Council.

A brief discussion was held regarding the Water Capital Improvement Fund, with City Clerk Gilleland explaining that the line item for the water tank indicates the amount set aside for the tank. It will not be started this year and that dollar amount will be moved to the ending fund balance for the budget adoption.

A brief discussion was held regarding the Recycling Fund, with Mayor Hawkins explaining the contract is still being negotiated. The rates may have to be increased but we will have to wait until negotiations are complete.

Mayor Hawkins asked if there were any more questions regarding the budget. She stated Council should be prepared to set another workshop once additional information is received regarding the Sheriff’s contract.

In addition, Mayor Hawkins stated Council might wish to hold a workshop for the Comp Plan. The plan is currently lacking a capital facilities project list and a sewer element. City Clerk Gilleland explained a six-year list should be adopted with the budget every year, but the City hasn’t been very consistent doing that. The twenty-year list should be inserted in the Comp Plan Capital Facilities element. Packets would be sent out containing information about the capital projects for the next budget workshop. Discussion followed regarding the schedule for adoption of the Comp Plan. The Mayor stated we need to accomplish this as soon as possible, preferably in January and no later.

Mayor Hawkins stated a proposal for an application for a Public Works Trust Fund loan might be brought before the Council at the next budget workshop. The loan would be a zero interest loan, payable over a six to seven year period, and would be for a sewer feasibility study that would cost between $50-60,000.

There being no further business, the meeting adjourned by motion of Councilmember Amenn.

ATTEST: ________________________

Colleen Hawkins, Mayor

_______________________________

Hester Gilleland, City Clerk-Treasurer