HomeMy WebLinkAbout11/14/1985 Adjourned Meeting (2) 204
NOVEMBER 1985
ADJOURNED MEETING = BUDGET REVIEW
The City Council met in session on this date at 2:00 p.m. in the Council
Chambers of 'City Hall, Yakima, Washington. Council members present were
Mayor Clarence Barnett, Henry Beauchamp, Pat Berndt, Lynn Buchanan, Jerry
Foy, and Jack Sparling. Council member Lynn Carmichael absent. Staff
members present were City Manager Zais, Director of Finance & Budget
Hanson, Accounting Manager Wheeler, Budget Analyst Greenough, Utility
Accountant Sanders and Department Assistant Barber.
City Manager Zais presented the Council members with three items for
reference to be used in making changes for the final budget wrap -up: 1)
1986 Budget Policy Issues/Decisions, 2) Code Enforcement Weed Abatement
Program, and 3) Code Administration Major Policy Issues.
WATER •
Director of Engineering and Utilities Denny Covell introduced Ty Wick,
Water /Irrigation Division Superintendent' and Chris Waarvick, Wastewater
Superintendent, who responded to Council's 'questions regarding their
respective Divisions. Council member Beauchamp asked why a 5 -yard dump
truck is needed to replace a 3 -yard dump truck and the Council members
were in consensus a truck from another division should be used, when
available. Mr. Wick responded that numerous trips must be made by the
smaller truck and trucks from other divisions are not always available when
needed. Council members were in consensus to review this item during
budget wrap -up and add this as a budget policy issue. Mr. Hanson
presented the Council members with material requested by Mayor Barnett
(Water Rate Study Reserve Analysis 1985 -1987) showing the effects of a 6%
increase in water rates in 1986 and another 6% increase in 1987. City
Manager Zais explained the budget does not have the water rate increase
included'in the projections, however, this is included in the policy issues
outline. Mr. Hanson. explained the water operating fund and presented the
proposal. He further reviewed the water rate structure and referred to the
memo dated November 12, 1985 from Ty Wick which proposes the City follow
the financial criteria proposed by the Utility Rate Advisory Board
(U.R.A.B.) to manage water funds: 1) Maintain the Operating Fund cash
balance at $750,000; 2) Maintain the Domestic Water Improvement Fund
(Capital Fund) balance at a minimum of $500,000; and 3) Maintain a
minimum debt coverage' factor of two (2.0) times on water related debt.
Discussion followed on water reserves and the capital fund. Mr. Hanson
presented Council members with the proposal for a 12% water rate increase.
Following discussion, Mayor Barnett stated he would like to spread the rate
increase over a two year period, to ease the financial burden of the
elderly and poor, but still follow the basic recommendations of the Utility
Rate Advisory Board. Mr. Hanson presented Council members with revised
information on possible expenditure increases in the fund in 1987.
Council member Foy commented the revenues may need to be revised for 1987
also. Council member Foy then asked Mr. Hanson to get the revenue for 1986,
only, as the revenue and expenditure picture can change. City Manager Zais
introduced Brad Card, Chairman of the U.R.A.B., who stressed the City
should prepare water users for a rate increase. (Council member Lynn
Buchanan absent after 3:00 p.m.)
IRRIGATION
Mayor Barnett questioned the need to purchase a 3 -yard dump truck for this
Division if there already is a truck in the Water Department and Mr. Wick
explained it is needed at different. times to clean reservoirs and replace
irrigation lines. _Council member requested staff to provide a schedule
of the. spring ditch cleanout and the schedule of trucks used. Discussion
followed on the combined use of these trucks by the different divisions.
SEWER
Mr. Waarvick reported the actual authorized personnel total should read
10 for Service Unit 211, Wastewater Collection. Mayor Barnett asked for a
correction change throughout the Budget to reflect "Total Resources" and
not "Total Revenues ". Council member Foy commented that under Need /Demand
on Page 335, the 1985 Estimated column should read "936" and not "780"
-under "Check 6 pump stations." Mr. Waarvick responded to Council member