1. CALL TO ORDER

Mayor Norm Childress called the study session to order at 6:30 p.m. in the Council Chambers at City Hall.

Present were: Mayor Childress and Councilmembers Helen Darr, Bill Flory, Pam Horner, Jan McDonald and Javier Rodriguez. Councilmembers Joan Souders and Robert Morales were absent.

Staff present were: City Administrator Scott D. Staples, City Attorney Jack Maxwell, City Clerk Anita Palacios and City Treasurer John Myers.

2. 5-YEAR FINANCIAL FORECAST B CURRENT EXPENSE FUND

City Treasurer Myers explained that in 2005, a 6-Year Budget Estimate & Forecast worksheet was developed and presented to the City Council. That worksheet was included as Attachment E in the 2007 Budget Message. He distributed a modified worksheet illustrating a 5-year forecast of Current Expense Fund budget estimates, a copy of which is attached hereto and incorporated herein as part of these minutes. The worksheet included 2006 Actual Revenues and Expenditures, the 2007 Adopted Budget and estimated budgets for 2008 through 2012. After the entry of figures for 2006 and 2007 these were compared with historical data. From this information, estimated growth percentage numbers were developed for each major revenue type and expenditure group. The estimated growth percentages were used to calculate changes over the next five years. Given the current estimates, the Current Expense fund would continue to experience expenditure increases greater than increases in resources. The fund balance would decrease. It was noted that Attachment B in the 2007 Budget Message represents approximately $250,000 in expenditure reductions necessary to balance the 2007 budget. While some of the items listed would be funded by Real Estate Excise Taxes from the Capital Improvements Fund, many of the items listed would continue to be needs seen by department heads necessary to deliver the current level of services to the citizens of Grandview. To sustain the current level of service delivery and programs provided in our community there would need to be an increase in revenues or a means of delivering current services at a lower cost, or a combination of increased resources and reduced costs. In order to meet our mission statement of creating a AFinancially Sustainable City@, he recommended that the 5-Year Forecast be reviewed and serve as a catalyst for discussion and action regarding the City=s plan to deliver services to the citizens of Grandview.

Discussion took place regarding options available to raise additional revenue to maintain the current level of service in the Current Expense Fund.

City Administrator Staples identified the following legislation currently being proposed that might provide the City with additional flexibility to raise revenues:

_ Eliminating Non-Supplanting Language in Voter-Approved Funding Sources B SB 5498 would eliminate the non-supplanting language in the voter-approved levy lid lift and voter-approved sales tax.

_ Transportation Benefit Districts (TBDs) B HB1858/SB 5767 would permit the establishment of TBDs , which would provide cities with the opportunity to reinstate transportation funds lost due to I-776.

_ Criminal Justice Funding B HB 1851 would provide the City with the authority to impose a local sales and use tax for criminal justice purposes.

In addition, City Administrator reiterated the following revenue enhancements outlined in the 2007 budget message:

_ Voter approved utility tax on private utilities (1% increase = $150,000)

_ Council approved utility tax on public utilities (1% increase = $75,000)

Following discussion, it was the consensus of Council to research the possibility of implementing a 1% tax increase on city utility services (water, sewer and garbage).

Staff was instructed to determine the amount of funds a 1% increase would generate and the impact to the utility billing customer. A public hearing would be scheduled to receive comments.

3. 24-HOUR NOTICE OF DISCONNECTION

City Administrator Staples advised that he had been contacted by a utility customer who inquired regarding the grace period allowed for delinquent accounts and how the policy was established. The utility customer also expressed concern that the notice of disconnection did not provide a time in which payment would be due by in order to avoid disconnection.

GMC Section 13.28.140(C) B provides in part AThe delinquent balance plus the $5.00 24-hour notice of disconnection fee must be paid in full on the due date stated on said notice in order that the water services remain on.@

Past practice has been that if the due date fell on a Friday, any payments received in the drop box over the weekend would be credited to the account and the water would not be disconnected on the following Monday morning.

City Administrator Staples suggested that the code be modified to provide that payments must be paid in full by 5:00 p.m. on the due date stated on said notice. In this case, should the due date fall on a Friday, any payments received over the weekend would not be credited to the account and disconnection would continue to take place.

Council concurred.

4. ADJOURNMENT

The study session adjourned at 7:30 p.m.

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Mayor Norm Childress Anita Palacios, City Clerk