City of St. George Council Meeting
May 21, 2007, 7:00 A.M.
Administrative Conference Room
Mayor Daniel McArthur
Council Member Allen
Council Member Orton
Council Member Gardner
City Manager Gary Esplin
Deputy City Recorder Judith Mayfield
Council Member Bunker
Council Member Whatcott
Mayor McArthur offered the invocation.
Mayor McArthur stated that the work meeting scheduled for May 31, 2007 was canceled.
Discussion on the proposed 2007-2008 fiscal budget
City Manager Gary Esplin presented the 2007-2008 budget to the council. He discussed the General Fund revenue sources. He explained that the revenues included an estimated 3.5% increase in the Sales tax. He stated the percentage of Property taxes going to the City continues to go down.
There was a general discussion concerning the percentage of revenue sources that are in the Taxes category.
City Manager Esplin reviewed the other General Fund revenue sources included in the proposed budget. He explained that Deanna Brklacich, Budget & Financial Planning Manager, included five years of historical data throughout the budget. He stated that additional data was helpful in identifying various trends. He said that proposed fee increases in the Recreation Division and for the Swimming Pool were not included in the revenue figures in the 2007-2008 budget.
There was a general discussion concerning changes that have been made in several of the revenue sources.
City Manager Esplin stated that Airport revenues would be over $500,000. He said that included fuel fees, car rentals, hangars fees, ground leases, and landing fees.
Mayor McArthur stated that SkyWest will be celebrating their 35th anniversary this year. He said that he would like the City to recognize the event. Mayor McArthur said that he would like to see a special event scheduled in order to show our appreciation for their community support.
St. George City Council Minutes
May 21, 2007
City Manager Gary Esplin stated that the General Fund revenues included transfers from other funds in the amount of $3,775,000. He explained that this included allocations to the various other departments for various services provided by the City.
Council Member Orton stated that he would like to see individual side by side comparisons of revenues and expenditures for the different programs so the information would be easier to review.
There was a general discussion concerning the General Fund revenue information presented by City Manager Gary Esplin.
City Manager Gary Esplin discussed the Enterprise Funds revenues. He explained that the Wastewater Collection fund and Wastewater Treatment fund combined had over $19,000,000 in cash balances going into the next fiscal year. He said that in Energy Services had set certain percentage to have in reserves and that they were above that amount. He said that no rate increase was being proposed this year but that next year they would need to look at their long-term resources to see if a rate increase would be warranted.
Council Member Orton asked if all of the Enterprise Funds had balances.
City Manager Esplin stated that most of the funds have positive balances. He explained that there is a recommendation for a 5% increase in water rates and a 3% - 4% increase in golf fees.
There was a general discussion concerning revenue sources and anticipated expenses.
Deanna Brklacich, Budget and Financial Planning Manager, passed out a draft document of recommended rate and fee increases. She explained that one of the charts in the draft document showed a comparison of the City?s water rates to water rates for Washington City, Hurricane City, Santa Clara City, and Ivins City. She stated that even with the proposed rate increase the City?s rates would remain the lowest of the five cities.
There was a general discussion concerning water conservation, rates and water availability.
City Manager Gary Esplin discussed the General Fund Capital Projects that are being recommended in the 2007-2008 budget.
There was a general discussion concerning the recommended capital outlays from the General Fund and the costs associated with the 2005 flood damage.
City Manager Gary Esplin stated that the Economic Development Fund has a $500,000 transfer to the Golf Courses for the purpose of building a club house and other improvements. He explained that the Park Impact fund in the amount of $6,404,000 included Phase II of the Little Valley Complex with an estimated cost of $2,645,000. He said that the 2007-2008 budget figure for the Park Impact fund is almost double what it was in 2006.
There was a general discussion concerning the recommended capital outlays from the Park Impact Fund.
St. George City Council Minutes
May 21, 2007
City Manager Gary Esplin stated that the recommended $800,000 in the Fire Department Impact fund would be used to provide additional space and larger bays at Fire Station #1. He said that the Police Department Impact fund would help to pay for lease/purchase bonds for the Police building. Mr. Esplin discussed the Public Work Capital Projects fund. He stated that this fund accounts for all of the Public Works improvement projects except for the Airport. He explained that the funding sources included the Transportation Improvement Fund, Street Impact fees, Drainage Impact fees, and others. He discussed the various capital outlays that make up the recommended $51,644,000 amount.
There was a general discussion concerning the different Public Works improvement projects.
City Manager Gary Esplin stated that the Recreation Bond Projects fund would be applied towards the Crosby Park project.
Mayor McArthur stated that he was concerned about getting the Crosby Park project and the Seegmiller
City Manager Gary Esplin stated that the Crosby Park design is being worked on and that there is $200,000 in the budget for the Seegmiller project.
There was a general discussion concerning the Crosby Park and Seegmiller projects.
City Manager Gary Esplin explained that the Transportation Improvement fund is a Special Revenue fund used to account for revenues restricted as to their use for specific purposes either by statute of by City policy. He stated that the funds are transferred to the Public Works Capital Projects fund for various road projects. He said that effective January 1, 2008 there would be an increase from .25% to .30% on non-food items which should generate more revenue for the City.
There was a general discussion concerning the revenues and expenditures in the Transportation Improvement fund.
City Manager Gary Esplin discussed the Replacement Airport fund that was created to account for revenues and expenditures for the construction of the new airport.
Council Member Orton asked if we received the Letter of Intent.
Mayor McArthur stated that we should have it before August, 2007.
City Manager Esplin stated that the capital outlays covered by the Flood Project fund include Mathis Park, Virgin River Trail III and the new Willow Run Park.
There was a general discussion about reconstruction projects and how the Tamarisk removal is impacting the area.
City Manager Esplin discussed the Dixie Center Operations fund. He explained that the City?s participation is 38% with funds provided through collection of an Innkeeper Tax and through a transfer of
St. George City Council Minutes
May 21, 2007
sales tax revenue from the General Fund. He said that the County?s participation is 62% with funds provided through collection of a Resort Tax.
There was a general discussion about the Dixie Center Operations.
City Manager Gary Esplin presented details on the following budget items: Self Insurance fund, Perpetual Care fund, Police Drug Seizures, Recreation Bond Debt Service, and the Airport Boarding Fees (PFC) fund. He discussed the Public Transit System budget. He explained that they would be going to ? hour service in the next fiscal year. He said the budget included funds for benches and shelters, two additional para transit buses and a $3,100,000 expenditure for a new building. Mr. Esplin stated that the revenues for the Dinosaur Site have decreased over the past year. He discussed projects that would be included in the Community Development Block Grant fund. He suggested that the Council add money to the Permanent Acquisition Fund. He explained that the fund is used for purchasing art and artifacts for the City?s permanent collection which is displayed at the Pioneer Center for the Arts Museum and at City-owned office buildings.
There was a general discussion about funding the Permanent Acquisition Fund.
City Manager Gary Esplin stated that the Downtown Redevelopment recommended projects included the Town Square and the Water Walk. Mr. Esplin presented the budget information on the Economic Development Funds
There was a general discussion about the Economic Development Fund projects.
Mayor McArther stated the 2007-2008 budget was the best prepared budget that he had seen. Council Members Orton, Gardner and Allen agreed that the information was very helpful to them as they reviewed the budget.
City Manager Gary Esplin said that Deanna Brklacich, Budget and Financial Planning Manager, had provided him with very detailed supporting materials that she could make available to the Council members if they requested. He stated that she had done an excellent job in presenting the information in a format that was understandable and thorough.
There was a general discussion about scheduling meetings with the individual departments so the Mayor and Council could spend time discussing current activities as well as the upcoming budget.
MOTION: Council Member Orton made a motion to adjourn the meeting.
SECOND: Council Member Allen seconded the motion.
VOTE: All voted aye, motion carried.
Judith Mayfield, Deputy City Recorder