SPRING CITY PUBLIC-HEARING & COUNCIL-MEETING MINUTES
Thursday, June 1, 2017, 6:30 p.m. – Public HearingBudget Public Hearing
Thursday, June 1, 2017, 7:00 p.m. – City Council Meeting
Attendees: David Potter, Tom Allred, Joseph Fuchsel, Kelly Chapper, Lurlynn Potter, Jewel Kloth, Wendy Clark, Ken North, Cheryl North, Mike Nelson, Carla Nelson, Terrel Davis, Jay Johansen, Dane Chapman, Barbara Chapman, Tom Brunner, Scott Drew, John Dean, Ken Allred, and Dixie Earl
Prayer: Dave Potter
Roll Call: Council Members Keith Coltharp, Whitney Allred, and Kimberly Stewart; Mayor Jack Monnett. Council Members Neil Sorensen and Cody Harmer were absent.
Public Hearing
Review/Discussion of 2017-2018 Operational Cost Transfer from Enterprises (Utilities) Fund
to the General Fund
Electric Fund – Transfer Amount of $58,119.00 for Administrative Costs
Which Reflects 12% of Total Enterprise Fund Expenses
Water Fund – Transfer Amount of $58,119.00 for Administrative Costs
Which Reflects 19% of Total Enterprise Fund Expenses
Sewer Fund - Transfer Amount of $58,119.00 for Administrative Costs
Which Reflects 29% of Total Enterprise Fund Expenses
Council Member Coltharp explained that this is a new requirement from the state, House Bill 164, which pass this year, now requires cities to explain and justify the Operational Cost Transfers. We took selected items in the general fund that supported the enterprises and divided the amount between the three enterprises. House bill 164 provides better disclosure and, also insures that rates are not raised without cause.
Public Comments
Joseph Fuchselasked if the City makes the most money from the electric department. Council Member Coltharp responded,that even though it brings in the most money it also has higher costs.
Adjourn to 2nd Public Hearing: 6:45pm
BudgetPublic-Hearing Agenda
Review/Discussion of 2016-2017 Budget Amendments
Council Member Coltharp explained thatin order to balance the 2016-2017 final budget ending June 30, 2017,we will need to use funds from the PTIF accounts. Every year but 2013 and 2015 we have needed to draw from the PTIF accounts. Some funds still have money left in them to cover expenditures that will incur before the end of the 2016-2017 fiscal year. Council Member Coltharp reviewed several lines in the budget demonstrating the differences in the original budget and the revised budget. He commented that there is not enough revenue to sustain the city expenditures. More revenue sources need to be found.Council Member Coltharp stated that he would like to hold another Public Hearing before finalizing the budget.
Public Comments
John Dean asked how are we doing financially, are we good?Mayor Monnettstated that the auditor says we are doing good. Tom Brunner said he knows the city does not have many funds but they are doing a great job. Council Member Coltharp stated that we have had a lot of expenses this year. Carla Nelson asked what is depreciation expenses listed on the handout. Council Member Coltharp explained that if you go back to contributions from prior year surplus, that it is a wash in the system. Joseph Fuchsel commented that we have over a million in the PTIF’s to cover the City in emergencies.
Adjourn to Budget Hearing.
Public Hearing
2017-2018 Original Draft Budget Adoption & 2016-2017
Original Draft Budget Adoption
Review/Discussion of 2017-2018 Original Draft Budget Adoption
Council Member Coltharp stated that there are a couple of things we decided to put into next year’s budget. We are looking at adding a full-time worker for Jim Bennett and Kent Kummer; we would like to start training in order to replace them when they retire. We are planning to hire these workers next April. There is always the fear that we could get a lineman trained and he would seek employment elsewhere. We will need an agreement in place that states education money would be paid back if they went somewhere else for employment. We also have a full-time police chief, which is a large boost in the total salary this year. This is forcing us to have a very tight budget, as well as the new building costs. There is no budget set for the Old School (fund 41) because that project is finished. We need to talk about looking for other revenue sources. Mike Nelson asked why do we need to start training a new lineman now. Council Member Stewart replied that there is a lot of training needed and we are worried if Mt. Pleasant decided not to work with us we would not have the required second lineman. Dave Potter asked if we are running our own water and power why are we charging ourselves. Council Member Coltharp stated that it is a state law, we charge the city and it come back in as revenue, making the entry a wash. Joseph Fuchsel stated that we are getting a police officer at a good rate. Council Member Stewart commented that the reason we can pay him a lower salary is because he wants to be here, he has family here. If we were to try to hire outside Spring City we would have to pay more. All we have are two restaurants and a few art galleries for our tax base. We are working on getting fiber which will draw businesses. We need to look at more ways to generate income. Council Member Coltharp stated that we have concentrated on retail sales but we need to look at new enterprises. Tom Brunner asked when we get new homes do we get more income. Council Member Stewart stated yes, but there are twenty-five lots that one person owns that may never be sold.Terrel Davis suggest that the City hire a person to promote businesses.Carla Nelson stated that we should capitalize on our events. Tom Brunner suggested that we could use a sign for the cemetery. John Dean suggested that we could use a cross walk from Das Café to the Post Office.
Adjourn to Council Meeting: 8:10pm
City Council Meeting
2017-2018 Operational Cost Transfer from Enterprises
Council Member Stewart motioned to approve the 2017-2018 Operational Cost Transfers from the Enterprises. Motion seconded by Council Member Allred. All were in favor.
FY 2016-2017 Final Budget
Council Member Coltharpstated that in the Public Hearing it was discovered that the budget informationgiven out was incomplete and he would be providing complete information.
Council Member Coltharp motioned to accept the 2016-2017 Final Budget with the understanding that all numbers will be verified. Motion seconded by Council Member Stewart. All were in favor.
FY 2017-2018 Draft Budget Adoption
Council Member Coltharp motioned to accept the 2017-2018 Draft Budget Adoption. Motion seconded by Council Member Stewart. All were in favor.
Mayor, Council, and Department Reports
MayorMonnett reported a) that the dedication was extremely successful. The attendance was 20% higher than expected. He extended thanks to all who made it happen. b) Mayor Dave Blackham has resigned because of physical problems.
Council Member Allred reported a) he is looking into getting the ball field worked on. Bid for the whole block was $800.00 and $400.00 for just the ball field. b) Youth City Council would like to get more playground equipment. c) Celebrations is going well. No one is doing the car show this year, but we will try to find someone for next year.
Council Member Coltharp didn’t have anything to report.
Council Member Stewartreported that there will be fiber into the Old School and we have Three bids for IT services, there are as follows: Dynamic Integrations- $360.00 a month for 6 stations and $8,200.00 for installing the IT system in the new building.Alakazam- $460.00 a month for 4 stations and 13,200.00 to install the IT system in the new building. Exutec- $544.99 for monthly IT support and $2595.00 to install IT system in the new building. Council Member Stewart expressed that she would like to have more Council Members in attendance to make this decision and more info needs to be received to be able to fairly compare the bids. A decision will be made at the next council meeting.
Jay Johansen: New Home/300 North 500 East
Council Member Stewart Motioned to approve Jay Johansen’s home at 300 North 500 East. Motion seconded by Council Member Coltharp. All were in favor.
Von Mellor: Lot Split and Three Accessory Structures/116 West 100 North
This item has gone to Board of Adjustments.
Terry L. Bredthauer: New Manufactured Home/180 West 300 South
Council Member Stewartmotioned to approve the Terry L. Bredthauer home on 180 West 300 South. Motion seconded by Council Member Allred. All were in favor.
Ken Allred: Lot Split/approximately 650 East 400 North
Council Member Stewart motioned to approve Ken Allred’s lot split at approximately 650 East 400 North.Motion seconded by Keith Coltharp. All were in favor.
Resolution 2017-12, Planning and Zoning Alternate Member, Joe Bennion
Council Member Stewartmotioned to approve Joe Bennion as a Planning and Zoning Alternate Member.Motion seconded by Council Member Allred. All were in favor.
Lurlynn Potter: Job Expansion Proposal
Lurlynn Potter stated that there are some things she can bring to Spring City. Her degree is in business marketing and she has done some writing. The proposal is requesting to go from 30 hours a week to 40, and from $12.00 to $14.00 an hour. She would use the 10 hours extratowards grant writing. She would be looking for grants that don’t require matching grants as well as those that need matches. The second part of proposal would be working with tourism, creating a marketing plan and fundraising.Council Member Coltharp stated that we would want grants that we would need anyway and some that would bring revenue. Council Member Stewart suggested that we table the proposal until next month when we could have the full council represented.
Resolution 2017-11, Establishing the Retail Rate
for Received Power of NetMeter Customers to 3.7 Cents.
Council Member Stewart explained that this is a rate set to pay for produced power by solar customers and taken back by the City.
Council Member Coltharp motioned to accept Resolution 2017-11 establishing the retail rate for received power of net meter customers to 3.7 cents.Motioned seconded by Council Member Stewart. All were in favor.
Scott Drew: Home Business License/ 420 South 700 East
Council Member Stewart motioned to approve the home Business License of Scott Drew. Motion seconded by Council Member Coltharp. All were in favor.
Lauri Madsen: Home Business License/612 North 400 East
License is no longer needed.
Dane Chapman: Business License/ 216 South Main
Council Member Stewart motioned to approve Dane Chapman’s Business License. Motioned seconded by Council Member Allred. All were in favor.
Lacy & Kevin Jorgensen: Dance Hall/City Hall Gym
Council Member Coltharp motioned to accept the business licence for Lacy & Kevin Jorgensen/Hot Mama Lama Dance Hall. Motion seconded by Council Member Allred. All were in favor.
Review Delinquent Utility Accounts
No customers came forward.
Public Comments
Dave Potter suggested that the City Newsletter could allow advertising and make a little extra for the city. Council Member Coltharp stated that we need to be careful and possibly run that by legal counsel. Tom Brunner express gratitude for the pavement of 4th South.
Payment of Bills
Council Member Allredmotioned to Pay the Bills. Motion seconded by Council Member Stewart. All were in favor
Approval of Minutes–May 20, 2017
Council Member Allred motion to approve the minutes of May 20, 2017. Motion seconded by Coltharp. All were in favor.
Adjournment: 9:55 p.m.