09-06-18 Special Meeting of the La Porte City Council

Browse Search

I would also note that the City has been very diligent in securingprices for parts that arefar below retail. In some instances, our parts pricing through cooperative purchasing agreements is 1/3 of retail. The later fact should be considered when analyzing labor cost/parts cost ratio. Contingency $350,000. The contingency line items in the budget is designated to cover those unplanned or unforeseen expenses that arise throughout the year. Please note that this budget item has increased in recent years primarily because we now limit any budget amendments to matters of grave public necessity. Attached is a listing of recent contingency related expense for this year and last. Also note that we budget separately for contingency associated with each capital project. Staff is very frugal in the use of these contingency dollars and has never expensed the entire amount. We could reduce or eliminate contingency from the operating budget. However, there will likely be things that are unplanned that will have to wait until the next budget cycle to be addressed. I would recommend a reduction of $100,000. New Position Request $102,000. There is no new position being requested of the upcoming budget. This item was miscoded on the large spreadsheet of the budget. Tax Collector $100,000. This is strictly a policy decision for Council. I believe that the current arrangement does not violate the charter. We will continue efforts to recruit a tax collector and to get current employees properly licensed to perform the duties of tax collector. Electric Franchise Fee. As presented in the budget, electric franchise fees have increase by $600,000 over the last 3 years. Unfortunately, we have not realized the anticipate revenue associated with the substation construction approximately 3 years ago. We verified that the facility has not consumed the projected amount of electricity, because the plant associated with new substation was reduced in size and capacity. Initially, the plant was to include 4 large trains/compressors. The facility was constructed with 2. Private Fiber Network $430,000. As discussed, we will eliminate funding for Phase 1 of a private fiber network from the upcoming year. This would reduce the proposed budget by $430,000. No negative impact to the City. Action Required by Council: Provide direction regarding the FY 2018-19 tax rate and budget changes. Approved for City Council Agenda Corby Alexander, City Manager Date