02-02-87 Finance Comm MinutesI 1
Finance and Administration February 2, 1987
Chairman Palmer called the meeting to order at 4:10 pm. Attending were
members Councilmen Ruiz and Nystul, Councilmen Schindler and Grainger, Mayor
Kennedy, Clerk Treasurer Don Halver and Roger Hopkins of the Daily Inter
Lake.
1. Fixed Assets Policy
Councilman Palmer read Halver's memo of December 9, requesting the following
Fixed Assets Accounting Policy.
Set the Capitalization amount at $500.00 or more and a useful life
of at least 5 years. 11
Maintain an inventory for insurance purposes on items having a
replacement value of at least $100.00 and 5 year useful life.
The committee accepted the recommendations. Councilman Nystul suggested they
be put into a resolution to be of record and the committee concurred.
Councilman Palmer thanked Clerk/Treasurer Halver for the outline of Pending
Finance Committee projects.
2. Cost of Litigation/arbitration Accounting
Clerk/Treasurer Halver requested a new budget line item in the General Fund
be established to pay the costs of Arbitration and Litigation. He also
suggested the budget for the Council Negotiator be transferred to this
account. His reasoning was that it is often difficult to attribute the cost
of arbitration to a particular department.
Councilmen Ruiz and Palmer felt the grievance costs should have come from the
department involved.
Halver stated that was not always easy to determine.
Councilman Ruiz suggested we check with other local governments to see how
they handle these.
After further discussion it was decided to charge costs in the future to the
department. The claim for the dispatcher overtime pay grievance is to be
paid from the Council Negotiation account.
3. Purchase Telephone System
Clerk/Treasurer Halver requested permission to call for bids for a new
telephone system now that the proposal has been drafted and reviewed by the
vendors and staff.
Halver felt we can have a savings by buying a system instead of renting. We
don't know for sure but the call for bids should provide us with that answer.
The committee agreed to ask the full council to call for bids.
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' Finance and Administration February 2, 19B7
4. Ambulance Accounts Receivable Write-offs
Halver and his staff are recommending we turn over the six month old accounts
to a collection agency as previously requested by the finance committee but
would rather not write off the accounts until they have been at the
collection agency for six months.
The committee agreed as long as the uncollectable accounts information be
kept and reported, so that revenues are not overstated.
5. Business Licenses
After discussion of Business Licenses during; the January 19, 19B7 council
meeting, the committee was asked to look into it further.
The committee decided to leave this item pending for future study.
6. Capital Improvement Fund
Halver reported the committee had asked for the rules and procedures for
establishing a Capital Improvement program and he has provided the
information.
Chairman Palmer requested a work session be scheduled for business licenses
and the capital improvement fund. .
7. Communications Software
Halver asked if he could use $319.00 from the Revenue Sharing Budget,
allocated for a Computer Terminal, to purchase communications software so our
computer can be hooked up to other computers with information services
available.
The committee agreed to recommend this to the council.
8. Claim Forms
Mayor Kennedy explained the revision to the claim form so that we can keep
track of when they are sent to a department and returned.
9. Mayor's meeting expenses
Chairman Palmer reported he bad reviewed the opinion from the City Attorney
and stated the committee needed to come up with a recommendation to the
council.
Councilman Schindler felt the cost of attending meetings was part of the
obligation of an elected official.
Councilman Palmer said he thinks we would expect the Mayor to represent the
City at these functions and it is an undue hardship to expect him to eat a
bowl of soup, or not eat at all.
Councilman Ruiz said the only expenses the Mayor or council should turn in
should be those for expenses directly relating to city business. Chamber of
Commerce and United Way are not directly related to city business. He also
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Finance and Administration
February 2, 1987
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felt the salary of the elected official is expected to cover these expenses.
Councilman Grainger suggested a specific budget for meetings be established
and then the council doesn't have to consider each claim. He didn't see how
we can pay for meeting meals under the school and travel budget.
Mayor Kennedy said the mayor gets invited to a lot of functions as a
representative of the city. Councilman Ruiz contended that was what the
Mayor's salary was for. It was never intented to be a wage. He said the
councils' salaries were increased to cover increased expenses.
Mayor Kennedy asked if the intent was to restrict the mayor's job to a
retired person or a person with another income. Ruiz said absolutely, it was
never intended to make any money.
The group then discussed the history of the mayor's salary and position.
Councilman Nystul suggested a policy should be adopted in writing. He also
suggested a small budget be established and then the mayor could live with
it.
Chairman Palmer suggested the mayor be given a budget` of $25.00 a month for
meeting costs. Mayor Kennedy said $15.00 a month probably would be enough.
Nystul asked how that would fit in this year's budget and Palmer said he
didn't think it did.
The committee was unable to agree on a policy.
10. Personal phone charges
Councilman Nystul said he had problems with personal long distance calls
being made on city phones with reimbursement being made. He moved the Mayor
be requested to advise city staff that personal phones are not to be made on
city phones. The committee agreed. Palmer said they should get a credit
card for their home phone number and make their personal calls that way.
Meeting adjourned 5:20 pm.
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