HomeMy WebLinkAbout02/10/2003 B A K E R S F I E L D
~~/~~~ Mike Maggard, Chair
.&,lan Tandy ~2i;ty I~a~'~'r ''-~//J~'
Harold Hanson
Staff: Darnell W. Haynes Mark Salvaggio
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE SPECIAL MEETING
Monday, February 10, 2003 · 4:00 p.m.
City Manager's Conference Room - City Hall
1501 Truxtun Avenue, Bakersfield, CA
1. ROLL CALL
Called to Order at 4:08 p.m.
Present: Councilmembers Mike Maggard, Chair; and Harold Hanson
Councilmember Mark Salvaggio arrived at 4:23 p.m.
2. ADOPT DECEMBER 2, 2002 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. NEW BUSINESS
A. Staff report and Committee recommendation regarding Audit Reports
for fiscal year ending June 30, 2002
· Comprehensive Annual Financial Report (CAFR)
· Independent Auditors Report - Single Audit Report - Schedule of
Federal Expenditures for the City of Bakersfield
· Independent Auditors Report - Compliance with Contractual
Requirements relative to the Bakersfield Subregional Wastewater
Management Plan
· Independent Auditors Report on Appropriations Limit Worksheet
(GANN Limit) of the City of Bakersfield
Finance Director Gregory Klimko explained the City has started implementation of
the new requirements of GASB 34 (Government Accounting Standards Board),
which encompasses new standards for financial reporting.
'AGENDA SUMMARY RE
BUDGET AND FINANCE COMMITTEE MEETING
Monday, February 10, 2003
Page - 2 -
The only surprise in the audit report was a deficit in the self-insurance fund of
$3,4 million, Council has already taken action to transfer $2 million from the
ending General Fund balance to the Self-Insurance Fund and to handle the
remaining $1.4 million deficit over the next two fiscal years. The audit was clean
and in compliance with generally accepted accounting principles. There were no
significant findings for the current year in the Management Letter.
Committee Member Hanson made a motion to adopt the audit reports. The motion
was unanimously approved (Committee Member Salvaggio absent for this item).
B. Staff report and Committee recommendation regarding landfill closure
financial plan
Public Works Director Raul Rojas reported that the landfill closure project is fully
funded. By fiscal year ending 2002-03 there will be $5.4 million in the Refuse
Enterprise Fund to pay the City's share of the closure. The landfill closure plan is
scheduled to be filed with regulatory agencies in the spring of 2003. After the
State review process, which can be lengthy, construction is anticipated in late
2004.
The Committee accepted the report (Committee Member Salvaggio absent for this
item). Staff will include the report in the next General Information packet.
C. Staff report and Committee recommendation regarding Solid Waste
Management Program (financial implications of new County fees)
Public Works Director Raul Rojas reported on the financial implications of the
County's raising their landfill fees., beginning FY 2003-04. For the most part,
residential customers will notice an increase on their property tax bill, which is a
direct bill from the County. This is an increase to 'residents of $.5 million per year.
In addition, there are approximately 120 major retailers, hospitals, malls, etc.,
which will be hit the hardest with a 24% increase. These 120 businesses, as a
group, will pay an increase of approximately $125,000 per year. The City may
receive the complaints, as the City sends the bills to these customers. However,
this billing is strictly a pass through from the City to the County. The City charges
approximately $200 for hauling the compactor out to the County landfill. However,
in addition to the hauling fee, there is a per ton charge, which is going up 24% by
the County's action to raise landfill fees. These business locations produce from 2
to 10 tons each per week depending on the type of business.
The City will also be affected by the increase in the per ton charge for landfill fees
when City refuse trucks unload at the landfill. The increase to the City is projected
to be $500,000 per year.
AGENDA SUMMARY REPOT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, February 10, 2003
Page - 3 -
The use of transfer stations where refuse trucks can unload and the refuse is
hauled away by semi-trucks was discussed. However, this would not be cost
effective due to the close driving distance to the County's landfill.
The Committee discussed informing the businesses that will be impacted with the
24% increase beginning FY 2003-04. Staff will prepare a letter to send out to the
effected businesses explaining the County's increase in landfill fees and that the
billing is simply a pass through from the City to the County. The letter will include
the City's efforts to protest against the increase in landfill fees.
D. Discussion and Committee recommendation regarding proposed 2003
Committee meeting schedule
The Committee unanimously accepted the meeting schedule with no changes at
this time.
5. ADJOURNMENT
The meeting adjourned at 4:35 p.m.
Attendance: City Manager Alan Tandy; City Attorney Bart Thiltgen; Assistant City
Manager John W. Stinson; Assistant to the City Manager Darnell Haynes; Public Works
Director Raul Rojas; Finance Director Gregory Klimko; Assistant Finance Director
Nelson Smith; and Solid Waste Director Kevin Barnes
Others: Peter J. Rudy, KUZZ News
cc: Honorable Mayor and City Council
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