Utilities
Budget Meeting - July 28, 2016
MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
A meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Wednesday, July 28, 2016, at 8:00 a.m. This meeting was preceded by notice duly published in the Hastings Tribune on Monday, July 25, 2016, and by notices duly posted in the lobby of Hastings Utilities, 1228 North Denver Avenue, and the City Hall, 220 N. Hastings Avenue, and was therefore open to the public.
Present: Hunt, Kully, Shoemaker, Dewalt
Also Present: Meyer, Vrooman, Leonhardt, Cogley, Crecelius, Hartman, Barfknecht, McCoy, Stange, Cox, Patterson, Ptak, Sekora, Odom, Goebel, Schawang, Gary Oetken of AGP, and Tony Hermann (Hastings Tribune)
The purpose of the meeting was to discuss the 2016-2017 Hastings Utilities Budget.
Discussion continued from the meeting on July 27th. Chairman Shoemaker asked Joe Patterson when a Joint Budget Worksession with the Board and Council would likely take place. He set Tuesday, August 16th at 5:30 p.m. in the Board Room. Discussion took place on the city placing in their agenda a position for an Assistant City Administrator or Administrative Services Director. Staff said that the budget presented for Hastings Utilities does not include this item.
The pollution control budget was presented. Staff recommended a rate increase for this fiscal year. A discussion on bonding or inter-company borrowing took place. Discussion on the impact of the downtown block project on this particular budget took place. It was recommended by the Board to place the Downtown Block Project Funding in Less Contributions by Others in each of the Electric, Gas, Water and Pollution Control budgets as a determination of funding has not yet been made. Staff said that whether the Downtown Block Project goes forward or not, the Pollution Control budget shows the need for a rate increase. The Board asked Barfknecht to add $2,000,000 to the budget for bonding. A Resolution of Intent to Bond will need to be prepared for approval at the next meeting.
Moved by Hunt, seconded by Dewalt, to increase sewer rates 8% effective October 1, 2016. Roll Call: Ayes; Hunt, Dewalt, Shoemaker, Kully. Nays; None. Motion carried.
A rate ordinance will be prepared for Board action at their August 11, 2016 meeting to recommend the change to the City Council.
The water budget was presented. The Board asked staff to add $25,000 to the budget for a possible rate study. A discussion on water conservation and ratemaking took place.
Moved by Dewalt, seconded by Hunt, to increase water rates 12% effective October 1, 2016. Roll Call: Ayes; Dewalt, Hunt, Kully, Shoemaker. Nays; None. Motion carried.
A rate ordinance will be prepared for Board action at their August 11, 2016 meeting to recommend the change to the City Council.
The administrative budget was presented.
Ron Sekora gave a presentation on the Highway 6 project which may change the curve at Elm Ave. and South St. and have major implications on utility relocation. The project has not been finalized and will not take place this budget year.
Brian Strom gave a presentation on a change to the structure of the Business Office, which will more accurately reflect the duties that are currently being performed. This new structure will update the titles being used and eliminate positions that are no longer utilized or relevant.
Meyer recommended job title changes from Senior Laboratory Technician at the WEC to a Senior Chemist and the Laboratory Technician at the WEC will change to Chemist. This change reflects bringing job titles up to date.
The Board concurred with these personnel changes and these will be reflected in the Budget Resolution that will be presented to the Hastings City Council.
A discussion took place on moving $15,000 from the Chamber line item to HEDC to help fund the new position that was created after the Board's last budget session. The Board would like further discussion on any changes after the Chamber and HEDC Agreements are reviewed.
Since the Board has money in the Budget for a staffing study, Council Liaisons suggested the Board keep the City Council informed before going forward with this study.
Kevin Schawang gave an update on upgrading the hard drive capacity for the computer system and upgrading accounting software. Because last budget's expenditure has not yet taken place, he suggested changing the $68,000 currently budgeted for 2016-2017 to $125,000. The Board concurred and staff will make the change which will reflect a change in Allocation of Administrative Department Capital Budget in all the department's capital budgets.
A discussion took place on the increase in Lieu of Taxes adjustment to 5.6% as reflected in the report from the American Public Power Association. Discussion included the possibility of the Intra-City Services Fund coming from the 5.6% In Lieu of Tax amount since that percentage went up this year. It was decided to propose this scenario at the joint budget worksession and let the Council determine the best path.
Staff will make all the suggested changes and present the budget for Board approval with a public hearing at the August 11th meeting. The public hearing will be at 9:30 a.m.
The meeting adjourned at 1:27 p.m.