Finance Committee (Meets 4th Tuesday of each month at 4:30 p.m.)

Finance Committee Proceedings City of Superior September 08, 2022 Members Present: Jack Sweeney, Tylor Elm, Mike Herrick and Jenny Van Sickle Staff Present: Jean Dotterwick, Deb Kamunen, Jim Paine, Shana Ross and Todd Janigo Others Present: Shelley Nelson, Lareasha Connors, Ruth Ludwig, Nick Ledin, Cheri Fitch, Tom Wondolkoski and Mark Johnson Members Excused: Jack Sweeney called the meeting to order at 4:30 pm with a quorum present. Attendance was done by sign in and virtual meeting. 1. Approval of August 11, 2022 Finance Committee Meeting Minutes. Motion was made by Tylor Elm, seconded by Mike Herrick and carried to approve the August 11, 2022 Special Finance Committee Meeting Minutes. 2. Application for Sewage Billing Adjustment – Scott Kilpela. Motion was made by Mike Herrick, seconded by Tyler Elm and carried to hold in Committee until Mr. Kilpela can be present. 3. Request from Douglas County Land and Development Committee to waive the interest amount of $10,153.65 for the 2017 Delinquent Special Assessment on Parcel 08-808-10038-00. It was noted that there was no County representation at the meeting to discuss the waiver request. A question arose as to if the City has ever waived interest for delinquent special assessments for customers. No one was aware of any forgiveness in the past. Motion was made by Tylor Elm, seconded by Mike Herrick and carried to decline the request from Douglas County Land and Development Committee to waive the interest amount of $10,153.65 for the 2017 Delinquent Special Assessment on Parcel 08-808-10038-00, based on past practices. The Mayor indicated if the motion is declined it would need to go in front of the Council for vote. Motion was made by Tylor Elm, seconded by Mike Herrick and carried to postpone the request indefinitely. 4. Held in Finance Committee from the March 10, 2022 meeting: Discussion and proposal to change ordinance restructuring garbage collection and disposal rates for commercial and residential customers. Former Assistant Finance Director Bronson detailed a methodology for determining the average weight of a residential cart as opposed to an average residential cart. This information has been provided to the Committee. Discussion ensued as to small businesses not being part of the recycle contract with Hartel and a low percentage of small businesses recycling at all. Councilor Sweeney indicated the garbage and recycling should be made as equitable as possible for everyone. It was suggested to converse with Hartel regarding the cost of recycling for a small business. Utility Billing Clerk, Shana Ross suggested renegotiation of the Hartel contract to include recycling for small businesses with the City billing the business. Motion was made by Tylor Elm, seconded by Mike Herrick and carried to hold in Committee for further information.  Motion was made by Mike Herrick, seconded by Tylor Elm and carried to move item #8 to #5. 5. Humane Society Q2 2022 Financials and Report – receive and file. Motion was made by Tylor Elm, seconded by Mike Herrick and carried to hold in Committee for further information until the Human Society Board meets on November 15, 2022 6. 2023 Liability, Property, and Workers Compensation Insurance comparison update by Mayor Jim Paine and Acting Finance Director Deb Kamunen. The proposals, current premiums and quotes have been laid out in a spreadsheet and sent to the League and MMA for them to look over. The Mayor realizes any company changes would be frustrating and difficult but the savings could be up to $250 thousand annually. No action was taken. 7. 2023 Budget updates by Mayor Jim Paine. a. 2023 General Fund Budget. Mayor Paine spoke about priorities collected from each department, wages, health insurance, and discretionary spending. Health insurance is expected to increase and a 2% wage increase is likely. City assessments are out of compliance, but the Mayor is working to not raise taxes. With some Tax Increment Districts (TID) starting to close and the City getting money back from them, along with terminal tax increasing, the general fund should be balanced. The books are closed on the 2021 budget and there is a surplus. Councilor Sweeney stated he wants line items for the General Fund Budget. b. 2023 Capital Improvement Program (CIP) Budget. Mayor Paine indicated that the majority of the terminal tax increase will be added to the CIP to fund capital projects and will be used to wipe out as much bonding as possible. 8. Request from Finance Committee Chair, Jack Sweeney – 2018 and 2019 Lake Superior Dragon Boat charity and project disbursements and balances as of December 31, 2021 – receive and file. Motion was mad by Tylor Elm, seconded by Mike Herrick and carried to receive and file the 2018 and 2019 Lake Superior Dragon Boat charity and project disbursements and balances as of December 31, 2021. 9. Golf Course Financials – receive and file. Motion was made by Mike Herrick, seconded by Tylor Elm and carried to receive and file the Golf Course Financials. 10. Review August, 2022 check register – receive and file. Motion was made by Mike Herrick, seconded by Tylor Elm and carried to receive and file the August, 2022 check register. 11. Review General Fund Financial Statements – 2021 and 2022 Expenditure vs. Budget Analysis – as of September 1, 2022 – receive and file.  Motion was made by Mike Herrick, seconded by Tylor Elm and carried to receive and file the General Fund Financial Statements – 2021 and 2022 Expenditure vs Budget Analysis as of September 1, 2022. 12. General Financial Overview a. General updates The budgets and Insurance are currently being worked on. b. Update on top 3 financial concerns or updates. 13. Other financial matters. None to report. 14. Agenda items for next month. Councilor Van Sickle requested an edit/amendment to the grant application to include financial statements. Having no other business, the Finance Committee Meeting adjourned at 6:10 p.m. Minutes respectfully submitted by Jean Dotterwick