02-24-2014 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, February 24, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 12 of 14 (11. 2013 GENERAL FUND BUDGET INFORMATION, Continued) At the present time fine revenue is at 75.1 percent of budget. The major reason for this was the lack of a distribution from the drug task force in 2013, which was budgeted for $30,000. The City did receive a federal disbursement, but due to requirements associated with the payment, that amount was credited to the Permanent Improvement Revolving Fund. Olson noted the City’s investment interest is below budget for the year due to the result of a new requirement to mark the investments to the current market value. As a result of a slight increase in interest rates at the end of the year, the current market value of the City’s investments was reduced. Olson stated while the marking down of the value on the City’s books negatively impacts the current year’s interest earnings, it will only impact the City if they are required to sell an investment prior to its maturity. Four departments were over budget and will require budget adjustments in 2014. Those departments include assessing, which finished the year at 105.2 percent; the finance department, which finished the year at 102.84 percent of budget due to changing the IT technician position from part-time to full-time; the Law and Legal Services department at 102.4 percent; and the golf course at 107.6 percent of budget. The remaining departments were either at or below budgeted amounts. Savings from the elimination of the deputy clerk position were a major factor in the administration budget ending the year at 71 percent of budget. The engineering department finished the year at only 62.3 percent of budget, which reflects a lower than anticipated use of the consulting engineer. Olson stated as it relates to GASB 31, the City is now required to mark investments to their current market value. Olson stated it basically is a computer generated estimate that uses the current rate and remaining term but it does not accurately account for step-ups. Olson stated the estimate takes the current year’s earnings at the current interest rate but does not take into account the fact that those interest rates may rise in the latter years. Olson stated in reality the City did not lose that money since those step-ups are not taken into account under GASB 31. McMillan commended Ron Olson for his work on the budget last year. McMillan requested Olson prepare a breakdown of items that the Park Commission has typically spent money on for review by the new Park Commission. Loftus noted the Mayor helped Staff locate a couple of knowledgeable financial Orono citizens to meet with Staff on its investments. Loftus indicated Staff will report back the meeting. Loftus noted the City Council directed Staff at its last work session to post a community development director position. That advertisement has been posted on the City’s website, the City’s listserv, the League of Minnesota City’s website, and the website of the MN Chapter of American Planning Associations. The deadline for applying is March 31. Staff would encourage anyone who is qualified to apply for the position. *12. SERGEANT PROMOTION Bremer moved, Printup seconded, to promote Officer Chad Stensrud to the rank of sergeant with a pay rate of $36.02 per hour (2013 contract), effective February 25, 2014. VOTE: Ayes 4, Nays 0.