Fiscal Committee Meeting

*This is a draft until approved at the next meeting. MINUTES Tuesday, June 5, 2012 Fiscal Committee 5:05 PM Carnegie Town Hall 235 West 10th Street Members Present: Council Member Sue Aguilar, Council Member Jim Entenman, Council Member Dean Karsky, Council Member Greg Jamison Members Absent: None Staff Present: Lorie Hogstad, City Clerk; Jim David, Legislative/Operations Manager; David Bixler, Budget Analyst; Rich Oksol, Lead Internal Auditor Guests: Michelle Erpenbach, Rex Rolfing, Jerry Gerken, Jeanne Gerken 1. Call To Order Councilor Karsky called the meeting to order at 5:05 p.m. 2. Approval of Minutes A Tuesday, May 1, 2012 A motion was made by Sue Aguilar and seconded by Greg Jamison to approve the minutes dated Tuesday, May 1, 2012. Karsky called for a voice vote on that motion and all members voted yes. Motion Passed. 3. Reports and Updates A Discussion on a Standardized Format for Reporting by City-Owned Assets by David Bixler, Budget Analyst This item will be considered at a later date. B Developing City-Wide Fees Including Park Department Fees by Rich Oksol, Lead Internal Auditor Rich Oksol, Lead Internal Auditor, stated he presented a report at the May 8, 2012, Audit Committee Meeting regarding the City-wide fees. The audit recommended  the implementation of a City-wide policy on fees, migrating the various fee ordinances into one chapter entitled “Fees,” and to create a master fee schedule on the City’s web site that the public could access. Oksol presented examples of fee schedules from other cities. The City-wide policy would give the departments direction on how often the fees should be reviewed and the percentage of fees recovered based upon the category and/or type of service. Aguilar asked if this would cover fees from the departments and enterprise fees. Oksol stated there is already a specific ordinance in place that covers the enterprise funds, however, this could be incorporated into policy, as well as a schedule of review. Councilor Jim Entenman asked if any of the directors had been made aware of the audit report. Oksol stated the report was sent to the Finance Department. Don Kearney, Parks Director, stated the Park Department fees are reviewed every other year and a determination is made at that time if the fees should be adjusted. Tracy Turbak, Finance Director, endorses the concept of the City-wide policy. Dave Pfeifle, City Attorney, would like to approach the recodification committee regarding incorporating all the fees into one chapter. Entenman stated the fees are subjective and once a department submits their recommendation for a fee increase, the Council needs to determine whether to raise the fees based on departmental and public input. Karsky stated that this item should be placed on the July 3, 2012, Fiscal Committee Meeting for follow-up. Pfeifle can report on the recodification efforts as to placing the fees into one chapter. Sue Quanbeck Etten, Central Services Director, will be asked to attend the meeting regarding placing a comprehensive fee schedule on the City’s website. Jim David, Legislative/Operations Manager, will report on a departmental survey and the feasibility of a City-wide policy on fees. C Discussion on the Pension Design Study by Bill O'Toole, Human Resources Director; Angie Uthe, Human Resources Manager; Tracy Turbak, Finance Director; and Tom Huber, Assistant Finance Director Karsky stated a meeting was held on June 4, 2012, with the Pension Review Board. Bill O'Toole, Human Resources Director, was available to address questions from the Fiscal Committee. Karsky stated over the past year the current pension system has been reviewed with two recommendations made to the Council for future employees of the City. The first option would be to create a tiered system with the existing pension plan as recommended by the Pension Review Board. The second recommendation is to choose the South Dakota Retirement System for new employees as recommended by Mayor Mike Huether. Entenman reiterated that there are three areas of discussion. Those employees that  have already retired, the existing employees, and future employees. Discussion followed. Aguilar and Jamison recommend the tiered plan and Entenman and Karsky recommend the SDRS. It was agreed that both plans will reduce and stabilize rates. Karsky directed O’Toole to bring two resolutions forth to the Council Meeting of June 19, 2012, for a vote by the entire Council. D CIP Budget Process Update by Janelle Zerr, Finance Manager Turbak gave a brief introduction of the CIP plan and stated that Janelle Zerr, Finance Manager, would give the overview of the current CIP process. Zerr gave a time table of the events that occur on a yearly basis and the various parties involved in preparation for the CIP budget process. 4. Open Discussion Jamison inquired about the status of the ordinance creating the Capital Program Review Committee. Karsky stated this is a work in progress and will be brought to the Fiscal Committee Meeting on July 3, 2012. 5. Adjournment A motion was made by Greg Jamison and seconded by Sue Aguilar to adjourn the meeting at 6:21 p.m. Karsky called for a voice vote on that motion and all members voted yes. Motion Passed. Lorie Hogstad_____ City Clerk