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02/17/2009 MinutesCITY OF GRAND ISLAND, NEBRASKA MINUTES OF CITY COUNCIL STUDY SESSION February 17, 2009 Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand Island, Nebraska was conducted in the Community Meeting Room of City Hall, 100 East First Street, on February 17, 2009. Notice of the meeting was given in the Grand Island Independent on February 11, 2009. Mayor Margaret Hornady called the meeting to order at 7:00 p.m. The following Councilmember's were present: Gericke, Nickerson, Ramsey, Dugan, Haase, Gilbert, Niemann, and Meyer. Councilmember's Carney and Zapata were absent. The following City Officials were present: City Administrator Jeff Pederson, City Clerk RaNae Edwards, City Attorney Dale Shotkoski, and Finance Director David Springer. INVOCATION was given by Mayor Margaret Hornady followed by the PLEDGE OF ALLEGIANCE. Discussion Concerning_Budget Amendment. David Springer, Finance Director reported this item was brought back to a Study Session at the request of Council. A discussion with the State Auditor's office had determined that a long standing procedure used in the budgeted appropriations calculation was not the preferred method and it would be appropriate to amend the current year's budget and revise the process for future state budget submittals. After speaking with the Auditor's office last week, Mr. Springer stated an amendment would probably not be necessary. Discussion was held concerning carry-over projects in the 2010 budget. A budget amendment could be approved if needed later on in this fiscal year. Exceeding line item budgets were mentioned. Discussion Concerningt Balanced Budget. Councilmember Haase requested that the City Council amend the City Fiscal Policies to include a Balanced Operating Budget definition. Councilmember Haase recommended the following definition to the Fiscal Policies: A Balanced Operating Budget is defined when current year operating revenues equal or exceed the current year operating expenses. Mentioned was the financial trend monitoring system presented to the Council at their January 20, 2009 meeting. Mr. Haase wanted to see a balanced budget that does not include reserves. Comments were made concerning fiscal responsibility, acceptable industry defmitions for a balanced budget, current-year operating expenses, debt, cash reserves, and expenditures approved by council. Page 2, City Council Study Session, February 17, 2009 City Administrator Jeff Pederson commented on one-time revenues or unsustainable revenues, financial trend monitoring system which gives indicators to act on warnings signs and for council to take appropriate action steps. This will be discussed further at the Council Retreat on Saturday, February 21, 2009. Finance Director David Springer clarified General Fund allocated revenues. The decrease was due to Capital expenditures. To increase revenues, an increase in property taxes was mentioned. Several comments were made about the good things happening in Grand Island and not to be tied down to a specific definition. Mayor Hornady commented on all the positive things that have happened to improve the quality of life in Grand Island. ADJOURNMENT: The meeting was adjourned at 7:35 p.m. ~~~ ~ RaNae Edwards City Clerk