SPECIAL COUNCIL MEETING

The Special Council Meeting of May 28, 2003 was reconvened on June 3, 2003 at 5:00 p.m. with Council President McGlumphy presiding. Members of Council present were Mr. Carey, Mr. Pitts, Mrs. Williams, Mr. Truitt, Mr. Ritter, Mr. Speed (absent 6/10, 6/12, 6/19), Mr. Salters, Mr. Ruane (absent 6/5), and Mayor Hutchison.

Council staff members present were Mrs. Mitchell, Mrs. Tieman (Administrative Services Director), Mr. DePrima (absent 6/3 and 6/5) and Mrs. McDowell. Council Committee Members present were Mr. Farling (Utility Committee - absent 5/29, 6/10, and 6/19) and Mr. Gorman (Legislative and Finance Committee - absent 6/5, 6/12, and 6/19).

Mr. Speed moved to reconvene, seconded by Mr. Carey and unanimously carried.

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members continued reviewing the 2003/2004 City Budget and discussed with staff and the budget team questions they had regarding the proposed budget.

Mr. Ritter moved to recess the budget review until June 5, 2003 at 5:00 p.m., seconded by Mr. Salters and unanimously carried.

Meeting Recessed at 7:10 P.M.

Mr. Truitt moved to reconvene, seconded by Mrs. Williams and unanimously carried.

Meeting Reconvened at 5:00 P.M. - June 5, 2003

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members continued reviewing the 2003/2004 City Budget and discussed with staff and the budget team questions they had regarding the proposed budget.

Mr. Salters moved to recess the budget review until June 10, 2003 at 5:00 p.m., seconded by Mr. Ritter and unanimously carried.

Meeting Recessed at 7:16 P.M.

Mr. Carey moved to reconvene, seconded by Mr. Truitt and unanimously carried.

Meeting Reconvened at 5:00 P.M. - June 10, 2003

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members continued reviewing the 2003/2004 City Budget and discussed with staff and the budget team questions they had regarding the proposed budget.

Mr. Pitts moved to recess the budget review until June 12, 2003 at 4:30 p.m., seconded by Mrs. Williams and unanimously carried.

Meeting Recessed at 6:56 P.M.

Mr. Ritter moved to reconvene, seconded by Mr. Ruane and unanimously carried.

Meeting Reconvened at 4:30 P.M. - June 12, 2003

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members continued reviewing the 2003/2004 City Budget and discussed with staff and the budget team questions they had regarding the proposed budget.

Mr. DePrima provided members with a compilation of “Revisions Needed to Balance the General Fund with No Increased Fees” (excluding the power cost adjustment), “Capital Expense Changes to Reconcile Electric Capital Budget to Rate Study”, “Capital Expense Changes” (projects adjusted due to time constraints), and adjustments to “Retirement Health Care Unfunded Liability Reserve”. Council President McGlumphy suggested that members take time to consider the information provided in order to be prepared to act on them at the next meeting.

Mrs. Williams moved to recess the budget review until June 19, 2003 at 5:00 p.m., seconded by Mr. Carey and unanimously carried.

Meeting Recessed at 5:47 P.M.

Mr. Salters moved to reconvene, seconded by Mr. Ritter and unanimously carried.

Meeting Reconvened at 5:00 P.M. - June 19, 2003

DISCUSSION - REVIEW OF 2003/2004 CITY BUDGET

Members continued reviewing the 2003/2004 City Budget and discussed with staff and the budget team questions they had regarding the proposed budget.

Referring to the “Revisions Needed to Balance the General Fund with No Increased Fees”, Mr. DePrima clarified that the $81,050 included for the CAMA software for the Tax Office would be reduced to $25,000, with the difference of $56,050 being added to Excess Funds for Retirement Health Care for a total of $89,941.

Mr. Salters moved to approve the “Revisions Needed to Balance the General Fund budget with No Increased Fees”, seconded by Mr. Truitt.

Mr. Carey expressed concern with eliminating all the items proposed and suggested deferring them until the actual carry-forward balances are determined by the auditor (approximately September 30^th). Once they have that information, members could reconsider those items which were deferred.

Mr. DePrima stated that if the items were deferred instead of eliminated, the budget would not be balanced. He suggested that they could adopt the budget with the projects, then direct the City Manager and Finance Director not to spend any money on those projects until after the actual beginning balance is known. Mr. DePrima noted that, as an alternative, they could delete the items now and put them back in the budget if the beginning balance would support them, as Mr. Salters suggested.

The motion to approve the “Revisions Needed to Balance the General Fund budget with No Increased Fees” (Exhibit #1 - Revised to include reduction to $25,000 for CAMA software purchase, as discussed) was carried by a unanimous roll call vote (Mr. Speed absent).

Mr. Ruane moved to approve the “Capital Expense Changes to Reconcile the Electric Capital Budget to Rate Study” (Exhibit #2), seconded by Mr. Salters and carried by a unanimous roll call vote (Mr. Speed absent).

Mr. Ruane moved to approve the “Capital Expense Changes” (Amendments to Water/Wastewater CIP Projects) (Exhibit #3), seconded by Mr. Carey and carried by a unanimous roll call vote (Mr. Speed absent).

Mrs. Williams moved to adjourn, seconded by Mr. Salters and carried by a roll call vote of five (5) yes, three (3) no (Mr. Pitts, Mr. Ritter, and Mr. McGlumphy) and one (1) absent (Mr. Speed).

Meeting adjourned at 7:15 P.M.

                                                                                    TRACI A. McDOWELL

                                                                                    ASSISTANT CITY CLERK

All orders, ordinances, and resolutions adopted by City Council during their Special Meeting of June 6, 2003 (continued through June 19, 2003), are hereby approved.

                                                                                    JAMES L. HUTCHISON

                                                                                    MAYOR

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S:ClerksOfficeAgendas&MinutesCouncil-Minutes20036-03-05-10-12-19-2003.min.wpd

Exhibits Attached to Original Minutes and File Copy

Exhibit #1   -  “Revisions Needed to Balance the General Fund budget with No Increased Fees" (Revised to include reduction to $25,000 for CAMA software purchase, as discussed)

Exhibit #2   -  "Capital Expense Changes to Reconcile the Electric Capital Budget to Rate Study"

Exhibit #3   -  “Capital Expense Changes”