Agendas & Minutes


March 29, 30, 31, 2004 Tentative Budget Hearing

SPECIAL TOWN BOARD TENTATIVE BUDGET HEARING MEETING
PAHRUMP TOWN ANNEX
270 NORTH HIGHWAY 160
MONDAY – MARCH 29, 2004
TUESDAY – March 30, 2004
WEDNESDAY – MARCH 31, 2004
7:00 P.M.

 


Agenda

1.    Call to order

2.    Announcements.

3.    Public comment.

4.    Discussion, action and decision regarding fiscal year 2004-2005 tentative Town of     Pahrump and Pahrump Swimming Pool District budget.   Town Board

5.    Adjournment.
    
    
    
POSTED IN THE TOWN OFFICE, COMMUNITY CENTER, COUNTY COMPLEX, AND FLOYD’S ACE HARDWARE, TOWN ANNEX
 

 


Minutes

PRESENT:
Paula Glidden
Richard Billman
Charlotte LeVar
Jeanna Howard

CALL TO ORDER

Chairman Paula Glidden called the meeting to order and led in the pledge of allegiance.

ANNOUNCEMENTS

There were no announcements reported at this time.

PUBLIC COMMENT

There was no public comment at this time.

DISCUSSION ACTION AND DECISION REGARDING FISCAL YEAR 2004-05 TENTATIVE TOWN OF PAHRUMP AND PAHRUMP SWIMMING POOL DISTRICT BUDGET

Dave Richards stated that he was giving the Board the option of not going through the entire budget at this meeting as there was anticipated discussion on several items and suggested breaking it up into two meeting nights.  Dave Richards asked the Board were the would like to start and suggested starting at page twelve and working to the end would be preferable in order to give the Board an opportunity to review the other items and then review them tomorrow night.  

Mr. Richards said that this is the staff’s best estimate of what the expenses and revenues are for the coming year.  With difficulties the Town face with funding the ambulance and fire department at its present staffing levels we anticipated there would be a good amount of discussion regarding what is proposed , but also options that the Board may have.  This will be discussed tomorrow and be willing to make adjustments on Wednesday (Tuesday) and if necessary come back on Wednesday with amendments to what has been proposed.  Dave Richards said he feels there will not be an answer to what the Board feels is the Town’s objectives and their vision for fire and ambulance service until we have the Abaris workshops.  

Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

Dave Richards explained that what was done was prepare a budget based on present circumstances with the understanding that we would have the workshops and if necessary, the budget would be amended at a later date if necessary.   

Paula Glidden stated she would like to look at the information just received a little longer so suggested that Mr. Richards begin on page twelve.  

Mr. Richards began with the Business License fund.  Dave Richards said he did not plan to go down line item by line item and asked that if the Board had questions he would be happy to answer them.  

Dave Richards noted that licenses and permits were up from the previous year by $15,000.  Ten dollars has been added to the license permit fees in an effort to fund a part time or contractual position that would do enforcement.  Mr. Richards said it is felt that the revenue total listed is a conservative estimate.  Total revenues are estimated at $71,500 and the expenditures total $65,600.  This would allow for an ending fund balance of $115,949 and is a conservative estimate of the ending fund balance.  It is believed we will be able to collect more in fees than is listed, Mr. Richards said.  This estimate has been conservative.  This will include an enforcement effort.  

Mr. Richards reported that the swimming pool fund beginning balance is $165,389 and there is supporting documentation for each fund on the following pages of the report.  Dave Richards noted that they may be questions regarding variances from one year to the next.  Proposed Capital Projects for the pool are an automated chemical unit, pool decking replacement, roof replacement and includes a capital contingency for any projects that might arise throughout the year.  Expenditures for the pool are expected to be $131,150 leaving an ending fund balance of $113,426.  

Sally Devlin commented that she was present to speak on the swimming pool and said a covered pool is wanted.  Ms. Devlin said it seems that every year the money is spent and there is no contingency for a covered pool.  Ms. Devlin noted that it is reported that there is $50,000 extra and asked why this is not set aside for a future covered pool.  Mr. Richards asked that the question be deferred to the Town Board for direction.  Dave Richards explained that the proposed projects from staff amounting to $50,000 are important items and improvements that need to be done, if the Board would like to explore the potential of enclosing the pool and the cost associated with running it 365 days a year, he would be happy to pursue that.  However, this was not an option that would be affordable.  Sally Devlin commented that the old pool cannot be covered.  Ms. Devlin stated that we have to have a new pool; a full time pool for the entire town built elsewhere and must be covered.  It should be for everybody in this town, for all the kids and the seniors.   Michael Sullivan noted that there are some Capital projects listed to be done from the fund.  

Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

Paula Glidden asked if these were things ordered or things just being looked into.  Matt Luis replied that nothing has been started.  Ms. Glidden asked if the automatic chemical unit would save money for the Town.  Matt Luis stated that it will and that the State Health Department could come in soon.  The chemical unit keeps the records and keeps the pool at a certain level.  It will cut down on man hours to maintain.  This unit will dispense chemicals as needed. Peggy Warner added that it makes it safer for the employee when handling the chemicals.  

Mr. Richards referred to the Road Tax Fund with revenues of $300,000 with an inter-governmental transfer of those funds to Nye County for the same amount.  This is money in, money out.  Dave Richards explained that this is the Town share of the state collected gas tax.

Dave Richards continued with the State Tourism Room Tax Fund.  This has a beginning fund balance proposed of $52,702 with revenues of $24,500.  Expected expenditures total $15,000.  The proposed programs for the 2004/05 budget include Pahrump Community Chorus, youth theater program, fall theater presentation, etc.  

Paula Glidden asked what else the Board can do with that money.  Dave Richards asked what else would like to be done with it.  Ms. Glidden asked what types of programs it can be used for.  Peggy Warner replied it can be used for anything that is tourism related.  Michael Sullivan noted that historically, this fund has been used for the Performing Arts Council.  Paula Glidden asked if it could be used for advertising.  Mr. Richards asked if there were other programs that are in mind to use this on.  Ms. Glidden replied that she does not.  Richard Billman suggested that self promotion would be the most advantageous use for this money.  

Charlie Gronda commented that at previous Town Board meetings when funds were taken from Economic Development fund, this is the fund that was suggested it be taken from.  Mr. Gronda said he feels there are a lot of things that can be done with that fund.  Charlie Gronda suggested that this fund be used for those that ask for funding after the budget has been finalized.  

Peggy Warner asked Michael Sullivan how he arrived at the beginning fund balances.  Michael Sullivan replied they were derived from Dan McArthur’s numbers and the acutal he gave us at the end of 2003.  Peggy noted that there is going to be a big discrepancy with the Tourism and the Fairgrounds monies on how it was divided.  It is not according to how it has been done for several years.  Michael Sullivan responded that the fairgrounds money was started July of last year.  Peggy Warner explained that it was always kept separate at the Town Office.  Michael Sullivan stated that these were Dan McArthur’s numbers from the audit so when the funds split in July that would be their share of the 50%.  Then it moved.  If its not then we can fix it, Mr. Sullivan added.  Peggy Warner explained the history behind this.  Paula Glidden asked if she remembers these figures to be different.  Mrs. Warner replied they are very different.  Charlotte LeVar asked how different.  Peggy Warner replied that Tourism should be approximately $481,000; Fairgrounds should be close to $255,000.  Mrs. Warner noted that neither number adds up to the numbers she has.  Mrs. LeVar asked if Mrs. Warner had given those numbers to
Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

Michael Sullivan.  Peggy Warner replied that this is the first time she has seen this.  Mrs. LeVar asked if this was talked about when sitting in the budget meetings.  Mrs. Warner said they were in the aggies which are kept going year to year.  Charlotte LeVar asked Michael Sullivan if he had those figures.  Mr. Sullivan replied no, that he was relying on the Nye County numbers and then the numbers that were in the budget last year that were brought forward.  Charlotte asked if he could get those figures tomorrow.  Peggy Warner suggested that they be talked about.  Mr. Sullivan stated that whatever the number was, that is what it ought to be.  Richard Billman said we are talking about money and it’s either in one place or the other.  Michael Sullivan asked Mrs. Warner if the fund was consolidated at one time and this was the attempt to break it out.  Peggy Warner replied that it was the intention of the Board to keep it even and the County did not keep it separate.  

Dave Richards stated that the Economic Development Room Tax Fund has a beginning fund balance of $201,137 which is a carryover from the previous year.  Total revenues of $36,500 and expenditures of $138,000 are expected leaving a balance of $99,637.  

Paula Glidden asked for an explanation of the Development Office Partnership which is shown as one of the proposed projects.  Michael Sullivan explained that these were the recommendations from the Economic Development Advisory Board.  There is a potential of a partnership arrangement.  Charlie Gronda stated that the advisory board will be meeting in May to discuss this further.  Previous discussions included office partnerships with some of the other organizations that already do economic development Mr. Gronda explained this will be discussed further in future meetings. Charlie Gronda noted that this is their wish list.  

Mr. Richards said the Parks Room Tax shows a beginning fund balance of $48,022.  Expected revenues are $18,500 and expenditures of $66,500.  Proposed projects include Last Chance Park Phase I, skateboard park improvements, and new initiatives.  Paula Glidden asked if the five-year plan has been reviewed lately.  Dave Richards replied that it is a work in progress.  Ms. Glidden asked what is Phase I  for the Last Chance Park.  Mr. Richards explained that Phase I includes the application for rental of the property for one year, and some initial infrastructure and improvements like fencing, roads, etc.

Dave Richards continued with the Arena Room Tax Fund.  The beginning fund balance would be $18,054.  Expected revenues amount to $18,500 and expenditures of $25,000.  Expenditures would include the purchasing of panels for the fairgrounds which gives expenses over revenues of $6,500 with an ending fund balance projected at $11,554.  

Mr. Richards went on to cover the Tourism Room Tax Fund which has a beginning fund balance of $340,478.  Total revenues expected are $108,000 and expenditures expected at $100,000 and an ending fund balance of $348,000.  Potential new initiatives for the new budget year and the continuing initiatives are listed on the back up.  There is an unallocated contingency of $23,000

Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

included in the expenditures.  Michael Sullivan added that this is the list developed by the Tourism Advisory Board.  

Dave Richards then reviewed the Fairgrounds Room Tax Fund which indicates a beginning fund balance of $360,478.  Total revenues are expected at $108,000 and expenditures of $336,400 which includes $248,400 in proposed projects.  This would then give an ending fund balance of $132,078.  The proposed projects for 2004/05 include purchase of water rights, engineering services, well and pump, interior roads, potable water line, intersection construction and a contingency totaling $636,400.  Funding is coming from this account and includes the Nye County Grant of $300,000.  

Mr. Richards reviewed the Cemetery fund which has a beginning fund balance of $551.  Total expected revenues of $6,000 and expenditures of $15,000.  The ending fund balance would be $1,55l.  Dave Richards stated that this fund has continuing revenue difficulties and may need a subsidy from the general fund or else be merged into the general fund.  Michael Sullivan said it has been proposed to give this fund a $15,000 transfer to get the negative fund balance cleared up.  This may have to be done this year Mr. Sullivan stated.  

Jeanna Howard asked how much utilization is there of the cemetery.  Staff replied that much of the revenues have been lost since Grandview Cemetery opened up.  Charlotte LeVar commented that there will have to be subsidy from the general fund one way or the other.  Mrs. LeVar asked if there is something that can be used from the perpetual cemetery fund or is there a legal means that says that is all you can use it for.  Michael Sullivan noted that the perpetual fund is not very stout either.  Peggy Warner explained that there are some resolutions and things done by a previous Board indicating it would not be touched so that when the cemetery if filled, there will be money there to take care of it when there is no more revenue coming in.  There may be a concern due to the Native American burial grounds within the cemetery.  Charlotte LeVar stated that if you are talking about perpetual care you are talking about maintenance that has to continue and that requires an individual to take care of it.  How else is the money being spent asked Mrs. LeVar?  Mrs. Warner explained that the money is saved until that time the cemetery is filled.  Peggy Warner suggested going back and looking at the resolutions.  Paula Glidden asked that based on the American Native basis, is there any way to look for grants for this and asked that this be looked into.  Charlotte LeVar said she had no problem with funds coming from the general fund for the cemetery.  But even if the perpetual fund were to go dry the Town would still have to maintain the cemetery, just like any park it has to be maintained.  Michael Sullivan noted that back in 2002 and 2003, the full time employee was being charged to this fund because that is how busy they were.  Mr. Sullivan said we have not been able to do that in the last year and the future indicates it will not continue at that level.  The perpetual fund might have two years worth of perpetual care in there if truly billed for whatever services we do have to take care of.  Mr. LeVar asked if that person is not paid through Buildings and Grounds.  Matt Luis said he is.  Charlotte LeVar asked how many lots are still available at the cemetery.  Matt Luis and Peggy Warner replied that there are quite a few left.  Matt Luis noted that we bury more
Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

cremations now than full burials.  Peggy Warner pointed out that when the County operated the cemetery people did not pay for the plot and people were allowed to reserve.  The Town brought the cemetery to a different standard but those that have reservations do not pay for the plot.  Dave Richards said that he would check on the statutory requirements for the perpetual fund but it is usually used as a savings account and one that is very rarely accessed.  Mr. Richards stated that perpetual means that, perpetual.  

Mr. Richards continued the summary with the Fall Festival fund noting a beginning fund balance of $58,000.  Estimated revenues are $180,500 and estimated expenditures are $120,000.  This will leave an ending fund balance of $118,500.  

Dave Richards explained that on the Airport Grant fund there is no beginning fund balance.  There is a grant of $275,000 which is the total of the revenues.  Professional Services are expected in the same amount.  This will leave an ending fund balance of zero.  This is a money in, money out account.  

Mr. Richards referred to the Capital Projects General fund which has a beginning fund balance of $702,040.  Total expected revenues equal $403,000 with $400,000 coming from a transfer from the General Fund.  Capital Outlay expected expenditures amount to $750,000.  There is an expense over revenues of $347,000 with an ending fund balance of $355,040.  Dave Richards named the proposed project for 2005 from the Capital Projects fund which explains the $750,000 expenditures.  Included in this list is a backhoe for $125,000.

Richard Billman asked if the Town was going to buy the backhoe instead of leasing.  Dave Richards explained that it was put on the Board to allow them to decide whether to lease a backhoe or to pay cash.  Mr. Richards said he understands this to have been before the Board several times and kicked out.  Dave Richards stated that Matt Luis feels very strongly that there is a need for this backhoe.  Mr. Richards said the Town could lease a backhoe for $30,000 for four or five years and own it at the end of that period of time.  

Dave Richards explained the Ad Valorem Capital Projects fund has a beginning fund balance of 204,070.  Revenues are expected to equal $26,000.  There will be no expenditures planned for this year leaving an ending fund balance of $230,070.  

The Television Capital Projects Fund, Mr. Richards explained, has a beginning balance of $58,000.  Expected revenues total $800 with no expenditures proposed.  This leaves a $58,800 ending fund balance.  Dave Richards said that the Town is considering discussing with the television stations that use our translator, upgrading the existing equipment.  Staff will be meeting with them to discuss their needs and to discuss sharing the cost of any improvements.  Mr. Richards noted that if the Town chooses to remain in the television signal business it is going to cost some money.  Nothing has been budgeted for this year but funds are available if necessary.  Matt Luis pointed out to the Board that the system must be digital by 2006.
Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

Dave Richards continued that the Arena Capital Projects fund has a beginning balance of $32,982.  Total expected revenues of $2,300 and expected expenditures of $32,000, leaving and ending fund balance of $3,282.  Michael Sullivan stated that the $32,000 is for panels either this year or next year.  This could come from the Arena Room Tax fund instead of Arena Capital.  

Mr. Richards stated that the Vehicle Fire Capital Projects fund has a beginning fund balance of $80,800.   Total expected revenues of $6,000 and total planned expenditures of $63,910, leaving an ending fund balance of $22,890.  Dave Richards noted that there is a ladder truck, water tender, and brush truck in the proposed projects totaling $1,145,000 for 2005, subject to funding.  

Dave Richards said that the Ambulance Capital Projects begins with a balance of $131,372.  Total expected revenues are $100,200 and total expenditures of $195,000 with an ending fund balance show to be $36,572.  The projects proposed are the ambulance replacement for $195,000.  

Fire Chief Lewis noted that prior consideration for this is the transfer of $100,000 received from the Courtyard Apartments and no tax money would be used for this and would include the brothel money and the trade in value of two existing ambulances of about $40,000.  Michael Sullivan explained that the $100,000 was just parked into one of the two emergency services funds and looks as though this is where it will end up.  

Dave Richards pointed out that the budget includes a five year capital improvements plan for each department.  This totals $7,465,000 over five years for these projects.  The funding sources are not known at this time and some will be accomplished through grants and some may never be accomplished.  Mr. Richards stated that staff is listing items that need to be replaced as they are replaced in order of priority as established by the department heads.  

Jeanna Howard asked if the ladder truck and Quint are two different vehicles.  Chief Lewis responded that they are and explained the difference.  

Mr. Richards continued with the Administration department budget from the General Fund.  Dave Richards stated that the proposed budget for 2005 of regular employees totals $285,000 with a total of $718,500 revised from fiscal year 2004 of $559,100.  Proposed projects for 2005 include computer software and hardware in the amount of $20,000.  This is in an anticipated delayed initiation of the HTE program.  The wages for regular employees includes and appropriation but not a recommendation of increases in the amount of 3% for cost of living and 4% for merit.  These numbers are built into the administrative wages dependent upon the Town Board’s approval and recommendations from the department heads for increases that would not exceed those amounts.  

Dave Richards summarized the Building and Grounds department from the General Fund noting that the item designated as regular employees does include the same appropriation for wage
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Tentative Budget
March 29 and 30, 2004

increases.  It does not include an increase in staffing of one person which would bring him to a level that department was at a year ago.  Mr. Richards pointed out that this department is currently running one employee short.  The budget does include a special appropriation for a wage increase for three employees of up to $2.00 an hour each to bring them up from $8.00 and $8.00 an hour.  It was felt that they have accepted additional work load and their wages are below levels that we thought were appropriate for the jobs that they are doing.  The proposed projects for 2005 total $110,000 and include Blosser Park well upgrades, vehicle replacement, riding mower, new building on the Quonset pad and funds into a tractor replacement fund.  

Paula Glidden asked what the Capital Outlay was for in the Administration budget and why there was such an increase.  Dave Richards replied that it was for software and hardware for the anticipation of running accounting software parallel with the HTE system until that system comes on line.  Paula Glidden asked about the Overtime line item.  Michael Sullivan responded that they were starting to try to break it out.  Mr. Sullivan stated that previously it was lumped into the salaries as a single line item.  Richard Billman commented that it appears that the HTE system is a no dice for 2004/05.  Dave Richards replied that it is undetermined and it certainly is not in this fiscal year and in the next fiscal year it is still questionable.  Mr. Richards added that it is beyond our control and may have individuals not committed to the success of the project and all the issues revolved around change.  As an independent entity, the Town has its own needs that come into play as well.  We are moving forward but it is not likely to be implemented fully in the next fiscal year.  

Mr. Richards continued with the General Fund for the Arena with Operating Supplies $10,000 and Capital Outlay of $5,000.  The total budget is $15,000.  

The Television budget in the General Fund has a budget of $16,500 for telephone, power, and repair and maintenance.  Michael Sullivan noted that the maintenance has gone up and suggested that the hardware is getting old.  Mr. Richards explained that the cost for maintenance is not going to go down until improvements are made or decide that the Town does not want to be in the television business.  Dave Richards suggested that this be talked about during the Beller and Associates visioning sessions.  

Dave Richards pointed out the various transfers in the budget to various funds.  There is $400,000 previously noted to the capital improvement fund, $39,910 to the Debt Service fund for ambulance, transfer to the ambulance fund of $200,000 and transfer to the Cemetery fund of $15,000.  These transfers total $654,910 from the general fund.  Included is Contingency of $60,000 with a total of $714,910 in transfers.  

Mr. Richards continued with the Debt Service fund.  There is a beginning fund balance of $12,051.  Total revenues are expected to be $43,850 and expenditures should be $39,910.  This will leave an ending fund balance of $15,991.  This is a fund from a 2001 agreement requiring a reserve fund equivalent to 10% of the annual payment be accumulated over a ten year life of a
Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

$374,000 loan.  Each year the General Fund makes the principal and interest payment and the fire vehicle capital fund makes the reserve payment.  

Dave Richards asked the Board if they wished to continue with the Fire and Ambulance portion of the budget at this time.  Jeanna Howard said she was looking forward to having some time to review the budget.  Paula Glidden said that the meeting should continue on.  

Mr. Richards continued with the Pahrump Valley Fire-Rescue Service General Fund.  Michael Sullivan noted that he and Chief Lewis were trying to refine the numbers.  The proposed fiscal year 2005 budget has been changed considerably from previous years Dave Richards pointed out, the reason being that six employees were moved from the ambulance fund to the fire department fund in an attempt to more accurately reflect where the expenses actually occur.  Currently, there is $560,719 appropriated in the budget for regular employees as compared to previous years.  The regular employee line item does include one position that is currently vacant and have not been filled, that being the Assistant Chief position.  Total for Capital Outlay items is $210,000.  Total for the PVFRS budget is $1,251,757.  Summarizing, Mr. Richards stated that this budget does include six employees that have not been included in the past and does include funding for the Assistant Chief.  Paula Glidden asked how many employees were included in the total.  Michael Sullivan replied 10, there were four existing positions.  

Dave Richards noted that there was no appropriation for any wage increase in this fund as it is subject to negotiations.  That number has yet to be determined.  

Mr. Richards went on the Ambulance Fund and explained that this fund has revenues projected at $$1,502,000. This includes the increases recently approved by the Town Board.  Total disbursements are estimated at $1,760,883.  Depreciation expense in this account of $190,000 and total operating expenses $1,950,883.  This indicates an operating loss of ($448,883).  There is a transfer in from the General Fund of $200,000 as previously noted indicating a net loss for the year proposed at ($248,883).  Jeanna Howard clarified that the net loss includes the depreciation.  Dave Richards stated that to be correct.  

Mr. Richards continued with a breakdown of the operating revenue for the Ambulance Fund pointing out that net of adjustments total $2,077,000 and operating expenditures budgeted at $1,760,993.  This includes no appropriation for increases for those employees covered by the labor agreement.  Michael Sullivan noted that the back up for the ambulance fund is summarized on page nine of the tentative budget and broken down on pages ten and eleven.  

Paula Glidden asked if the increase of regular employees due to more man hours, more overtime.  Chief Lewis asked if she meant the dual certified personnel and noted that it is actually a deduction because of the transfer of individuals to the Fire General Fund.  


Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

Jeanna Howard asked about the tax assistance revenue going to the fire department.  Michael Sullivan asked if she was referring to the $60,000.  Ms. Howard replied whatever money comes by the tax payers into fire.  Mr. Sullivan stated there is nothing direct as the Town does not charge a tax.  However, the brothel money rolls through and into the ambulance capital fund.  Jeanna Howard said she actually wanted to know if there was a tax to support fire.  Mr. Sullivan noted that there is nothing levied directly for ambulance.  Fire is covered in the General Fund.  Ms. Howard stated that when people see emergency services listed on their tax bill they thing the Town of Pahrump is getting it all.  

Mr. Richards suggested that if anyone would like additional information for tomorrows meeting to call prior so that information can be provided.  

Jeanna Howard asked about a statement that some numbers needed to be tweaked a little and will that information be available in print on Tuesday.  Michael Sullivan replied that it would.  Mr. Sullivan said they were just trying to arrange the items inside the budget but basically all the concepts are included.  Jeanna Howard asked if the final numbers were all correct.  Mr. Sullivan replied that they were and the dealing with the General Fund and the ambulance fund are the primary focuses right now.  The smaller funds contain a lot of play savers for projects that may or may not be funded and can be tweaked.  

Chief Lewis noted that the regular employee number did take into consideration the 4% and did not take into consideration anything that would be negotiated.  

Paula Glidden Motioned to continue this meeting tomorrow night (Tuesday, March 30) and continue the budget for 2004-05 with any questions and final decisions.  Jeanna Howard seconded the motion.

Dave Richards asked if there were any other comments from staff.

Charlotte LeVar requested that Dave Richards and Michael Sullivan have all the information from Peggy Warner regarding fairgrounds and tourism.  Charlotte LeVar asked Peggy Warner if she was included in the budget hearings.  Mrs. Warner said she did the administration and buildings and grounds, and business license.  Mrs. LeVar asked if Mrs. Warner shared the other information with the rest of the staff.  Peggy Warner replied that they did not work together on that particular story.  

Vote passed 4 – 0.  





Special Town Board Meeting
Tentative Budget
March 29 and 30, 2004

TUESDAY, MARCH 30, 2004

CALL TO ORDER

Chairman Paula Glidden called the meeting to order and led in the pledge of allegiance.  Ms. Glidden welcomed all in attendance.

ANNOUNCEMENTS

There were no announcements at this time.

Paula Glidden noted that Jeanna Howard would be coming shortly as she had a personal matter to tend to.

PUBLIC COMMENT

Kari Frilot of the Pahrump Valley Chamber of Commerce apologized for missing last nights meeting and found out that the items she wanted to speak on for the Tourism Board and the Chamber have already been discussed.  Ms. Frilot noted that the Nevada Commission of Tourism grants submitted by the Town through Michelson Cooper last year have produced a golf ad that appeared in the special section of the Los Angeles Times and the Chamber is tracking the calls.  Kari Frilot reported that the media kits are almost complete as well as the tri-fold brochure which will be brought to the Tourism Board at their next meeting for final approval before printing.  

Charlie Gronda asked if there would be public comment on each item again, as there had been last night.  Paul Glidden replied that any comment on the budget is acceptable.  Mr. Gronda said he wanted to make comment on the Fire and Ambulance budgets and will do so at the time it is discussed.  

DISCUSSION, ACTIONA ND DECISION REGARDING FISCAL YEAR 2004-05 TENTATIVE TOWN OF PAHRUMP AND PAHRUMP SWIMMING POOL DISTRICT BUDGET

Dave Richards stated that there were a couple of items that needed to be addressed that the Board raised questions about last night.  Mr. Richards said he has partial answers for and will also discuss and issue with regard to insurance for health care for the employees.  

Dave Richards commented on the question regarding the cemetery perpetual care fund.  Mr. Richards said that the Town Attorney is checking this matter our but he believes that the cemetery perpetual care fund is that the principal is not to be utilized until all the lots are sold and the cemetery general fund activity has no money.  The principal money can then be used to maintain the cemetery.  The Attorney is looking to clarify this.  
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Dave Richards stated that the fairgrounds and tourism funding situation is that there were two sets of books kept, one at the Town level and one that was issued with the Town’s audit.  The audit is a document that must be taken seriously as people rely on those audits for a number of circumstances.  Mr. Richards said that when he and Michael Sullivan look at the audits they expect that the audit is factual.  In this case the staff and the county had an arrangement where the funds were split and is not reflected in the audit.  Dave Richards stated that they are now researching when the split began and what amount was initially appropriated to the fairgrounds and how much should be contained in the tourism fund and the fairgrounds fund.  Mr. Richards said he would have a report at a later date, but before the budget is adopted, but not during the work sessions.  This will require doing some calculations over a six or seven year period.  

Dave Richards pointed out that there is an insurance appropriation that the Town Board has approved on an annual basis.  Michael Sullivan continued that the Town began the fiscal year with a $5,000 allocation for full time employees that went into a pool to subsidize the various coverages of all the employees.  The Town provides single coverage at 100% and then provides a subsidy for the various levels of dependant coverage.  Mr. Sullivan noted that mid-way through the year, the Board was approached for a $25,000 addition to the pool which was placed to offset the change in premiums that arrived the first part of the year.  This is a result also of the fact that no cost of living was granted for the current fiscal year and to alleviate some of the hardship and to cover the increases in the premiums that came after the budget had been adopted.  Michael Sullivan reported that when drafting this budget a request for proposals to seek bids was sent out and it was suggested by Mr. Richards that an additional $500 or $6,000 for full time employees be placed in this budget.   The allocation was increased all subject to Board approval and subject to when we see the final numbers and subject to the calculations Peggy Warner does to allocate the amount based on the make up of the coverage which changes from year to year.  Jeanna Howard clarified that this is in anticipation that it will come before the Board to ask for this increase.  If this is done and it comes back with these projections it will be a subsidy of $1000.  Michael Sullivan explained that the first $500 has been done and is included in the base and another $500 has been added to it.  There is a total of $6,000 per full time employee allocation in the numbers, $500 higher than we currently have.  

Jeanna Howard asked about part time employees and a $12,000 allotment.  Michael Sullivan explained that part time people were carried in the Business License fund that covered all of the office.  This transaction has been moved over to the General Fund.  To pick up some additional costs, there is some increase due to some things taken on such as Fall Festival and some needed to stay for temporary help as well.  Mr. Sullivan continued that we are anticipating trying to increase the enforcement effort but it will probably take some support in the office as well.  The level of traffic generated in the office by business applicants is quite steady.  Jeanna Howard asked if this is a position that has been open for awhile.  Michael Sullivan said that all of the full time positions have been filled.   Jeanna Howard asked about the $10 increase in business license fees as that is all the Department of Taxation will let us.  Ms. Howard asked what kind of time line for approval we are looking at to be able to write this into the budget.  Mr. Sullivan replied
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that the full amount is not being written in because we are beneath the calculation allowable it would be $20.  Mr. Sullivan stated that Mr. Richards is recommending $10.  Michael Sullivan said we could go up another $20.  We can do this without going to the Department of Taxation.  It would take the period of time for drafting the ordinance in doing the three reading.  Mr. Sullivan said that sometime after this budget gets closer, we can begin the process.  It may not make it in time depending on the reading schedule and would preclude it from getting into the large renewal as we are currently on an annualized renewal for July 1.  Another task to look at is spreading it out.  Realistically, the increase could be realized in the second three-quarters of the year or the last half of the year based on when we can introduce the ordinance.  

Richard Billman asked if the ordinance would be rewritten with penalties.  Mr. Sullivan replied that is some of the housekeeping areas that will be looked at.  There are penalties in the ordinance already but should be revisited.  Michael Sullivan pointed out that the enforcement is included in the expenditures, but only half of what is thought will be needed until the full impact is realized probably during the second year.  

Jeanna Howard asked if Fall Festival funds will be needed to offset a part time employee.  Michael Sullivan replied that some workload that has been spread around the office and will be taken from the general fund.  Mr. Sullivan said it might be a conversation for another time.  

Dave Richards stated that another issue that was requested to review is the State Room Tax revenues and the potential for using it for other purposes than that were identified for this year and that is under review.  

Mr. Richards said he would be happy to entertain question that the Board might have whether to clarify items or addressing any budgetary issues.  Jeanna Howard noted that placed on a previous agenda was an item on how the Town could utilize the Room Tax money other than the obvious.  Counsel was requested to investigate this matter and did come back with a determination.  This may be helpful to Mr. Richards.  

Richard Billman said he had some general comments and that he would like to apologize for having to make.  

Dave Richards interrupted and suggested to Ms. Howard that if she had other areas to be funded, that now is the time to do that.  Mr. Richards explained that with Ms. Howard knowledge of having had that report and having some time to consider what might be funded out of this Room Tax fund.  Staff can take those recommendations back and change the budget and possibly meet again to show how those suggestions might affect the Room Tax fund.  Paula Glidden added that the State Room Tax fund has always been in question.  Ms. Glidden said she feels a good place to use this fund is funding the sign at Calvada as some entities will be coming to the Board to request this.  Richard Billman added that the Attorney’s opinion was that if you could stretch something to be an attraction to tourists it is usable.  Michael Sullivan said this was discussed at
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the last Tourism meeting and it was sent back for more planning and was not included in this budget.  

Charlie Gronda commented that he received a call from the Rotary and will be on the next agenda for Economic Development regarding the sign.  Mr. Gronda said that between all of the Boards, Town and Advisory, something could be worked out for this sign and maybe improve the current marquee at the community center.  Michael Sullivan added that at the Tourism meeting there were issues concerning this being a capital project, along with the on going maintenance expense that the Town staff had concerns about.  

Dave Richards asked if the Board would like this added as a place saver as the expense would be about $20,000 in Capital Outlay and $10,000 on an annual basis for this Calvada project.  Paula Glidden stated that Tourism Advisory Board will handle and then bring to the Board for final approval if they think it is reasonable.  Michael Sullivan asked if would be a good idea to appropriate some unspecified funds for the State Room Tax to be used where needed if not for the Calvada project.  Mr. Richards did point out that there were concerns regarding ongoing maintenance for that site and also needs to be considered.  

Richard Billman said he had some general comments that would not be terribly welcomed.  Mr. Billman stated that a budget is an authorization to spend and realizing that it is a lot of work and appreciates the work that has gone into the budget.  Richard Billman said the budget should leave at the end of the fiscal year in a better position than it finds in the beginning.  Mr. Billman said this budget just does not pass the Hippocratic oath section.  It will leave the body politic in a much poorer condition at the end of the fiscal year than at the beginning.  Richard Billman noted, just looking at the General Fund the ending balance for 2004/05 looks good, but looking at the beginning balance.  Mr. Billman said we are looking at a budget that, in essence, lowers our fund balances, all of them.  It is more money than is currently being taken in, in revenue.  In the revenue expenditure equation, it is his belief that whatever method is used to increase revenue, the revenue could not be increased that much any sooner than two years.  Richard Billman continued saying that increasing the revenue is not even something to take into consideration.  The other side of the revenue must be looked at on the expenditure side.  Mr. Billman stated that we are expending revenue that we do not have.  Richard Billman suggested a few areas that could be looked at.  Mr. Billman said he would not be unhappy if we were able to find someway to privatize the ambulance service.  Mr. Billman stated that he knows this has not been talked about other than at the Abaris meeting but is something he believes needs to be looked at.  Richard Billman said that does not mean that he has any solution but does have some problems and areas that he sees problems.  Mr. Billman stated that we do not have sufficient volunteers in our fire department as far as he can see.  Mr. Billman said about eight or nine years ago the Kellogg station was open and has not been open for years.  Richard Billman said we are looking at a budget that we cannot afford and suggested that an augmentation is needed with more people.  This is not able to be done by paying them so volunteers would be the answer.  Other

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communities our size are looking at eight to ten paid and thirty to fifty volunteers.  Richard Billman said again, he does not have any solutions just some deep, deep concerns.   

Mr. Billman added that the Cemetery Fund, which is not a lot of money, and asked if it has been thought about asking the people at Grand View to see if there is any interest in privatizing the cemetery.  Richard Billman said we are not in the cemetery business and he does not think we want to be in the ambulance business.  

Paula Glidden stated that he stands with Mr. Billman on his concerns, but would like to discuss the swimming pool.  Ms. Glidden said the Town needs to keep it open and maintain it, but is concerned about spending the money on some of the listed improvements in the budget.  Paula Glidden asked about the chemical filtration device.  This project seems like quite a bit of money.  

Matt Luis explained that the changes are to modernize the pool.  This would create a big savings on the chemical costs.  Mr. Luis explained that he met with a pool man and learned today that he the cost to run the chlorine would be approximately $90 per month.  Currently it is costing approximately $90 per week. Matt Luis said he considers this a necessity to update the pool to where it should be.  Mr. Billman said he does not see it budgeted in showing any savings.  Matt Luis replied that this project was budgeted in as a place saver and he is continuing to look at it.  In the long run it would save on man hours and chemical costs.  Richard Billman asked if it was conceivable to get those numbers broken down.  Mr. Luis said he would work on it.  

Charlotte LeVar asked how many months the pool is open.  Matt Luis replied June through the beginning of September.  Lifeguard training usually begins in May.  Mrs. LeVar noted that currently $14,000 is being spent on chemicals excluding labor.  The automated system would cost $25,000.  Charlotte LeVar asked if the Town has someone that is qualified to handle the liquid chlorine.  Matt Luis replied that he is a certified pool operator and another employee will begin training soon.  

Michael Sullivan noted that the place saver concept would still include going to the Board and bidding out.  

Charlotte LeVar said the idea is being tossed around concerning the television.  Mrs. LeVar asked if the Town was looking at some sort of major issues regarding the television system and is there some sort of major dollars involved with going digital.  Mr. Billman responded that he thinks so.  Jeanna Howard said she concurs that the Town needs to get rid of the television system and get out of the television business.  Dave Richards added that there was a meeting with representatives from one station and the result is that there was a recommendation that the Town meet with the other station representatives and discuss what needs to be done if we are going to stay in the television signal business.  Mr. Richards explained that from that meeting it is anticipated that a recommendation for engineering, to determine what needs to be done and the cost, to upgrade the facility.  Dave Richards said he would recommend that if the Town is going
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to continue with the television service that the stations would participate in not just the engineering, but also the cost of the upgrade.  Mr. Richards noted that it is their signal, our license.  This can be addressed at the direction of the Board if that is what they want to consider.  Following future meetings with the station representatives, a cost figure could be achieved as to the cost of staying in the business.  Mr. Billman suggested that most people have a satellite system, many citizens do not and it is those people that we will be turning off their signal.  Richard Billman said at the present time he does not know if he would be anxious to shut it down without finding out where we are and where we are going.  

Michael Sullivan pointed out that there is some economic value in the town site.  Maybe charging more for the site is an issue.  Mr. Sullivan suggested that this be looked into but not to get heavily invested in it as there might be a self supporting, sustaining revenue involved.  Or we may have to move on.  The budget does not recommend any expenditure this year.  The maintenance cost is approximately $15,000.  

Jeanna Howard suggested that Ms. Hinds was working previously on this issue and there could be a recommendation from her in the files.  Mr. Richards said he spoke with Ms. Hinds today on this issue and she suggested that she needs to review the license agreement and the contracts we have with the stations.  This is part of the process of meeting with the station representatives and Ms. Hinds will participate in that.  

Paula Glidden suggested that the Board could receive a full report toward the end of May concerning the television issue.  

Charlie Gronda commented that there may be an issue with the school district using the microwave elements at the television building.  This microwave system produces a lot of heat thus causing the large electrical cost.  Mr. Gronda noted that if the school is still using the tower there may be an issue with shutting it down.  

Dave Richards reviewed and commented on what has been described as issues.  The cemetery fund gets a transfer from the General Fund of $10,000.  There was discussion regarding the capital improvements for the swimming pool with in this budget totals $50,000.  There is a cost associated with that capital outlay and that will be offset within a couple of years at which time there will be a payback.  Mr. Richards continued that the television station this year has a budget of $16,500.  Dave Richards stated that out of those three, it would be safe to say, if we sold the cemetery we would not have a $10,000 expense that is currently in this budget.  And if we got out of the television business, $16,500 would be saved.  Mr. Richards clarified that out of a  $3.5 to $4 million budget $26,000 is all the impact being discussed.  In discussion regarding drawing down the general fund reserve, this is small change Mr. Richards said.  

Mr. Richards said that the other issues that were raised were the privatizing the ambulance service which gets a $200,000 appropriation from the general fund but it is not known what
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affect the volunteers would have on the fire service funding.  It is early to discuss the impact that would have.  Dave Richards stated that privatizing the ambulance service is one issue that affects the general fund surplus to any great extent.  The main issue that causes concern to Mr. Richards is that there continues to be an operating deficit.  Not a one time capital expenditure that creates the need for a $200,000 and is something that is on going from the inception of the ambulance service.  Dave Richards explained that in most accounting circles this is a red flag when each year you make an appropriation to balance the fund, whether it is an internal transfer or loan.  If you are making an appropriation to off set an operating deficit either the revenues have to be increased or the expenses have to be reduced in order to make the fund viable.  Mr. Richards noted that the transfer that is being made if the community and Town Board accept that as a reasonable operating expense, it is then something that we continue to do with the knowledge that it is a problem area.  Dave Richards said that the letter that was received from the State Department of Taxation asked what we intend to do about our operating deficit.  Mr. Richards said our response at this point is that we continue to fund that deficit with a transfer from the general fund.  Dave Richards said he is not sure that Werner Ambrose (DOTaxation) will accept that as a reasonable explanation or one that is acceptable to him.  It is certainly an issue that the community needs to address.  

Richard Billman stated that at some point, with declining fund balances, continually declining fund balances it no longer becomes something we get to decide.  It becomes something that the State of Nevada will decide.  This would be extremely unpleasant for all who live here.  The State will balance our budget for us.  Mr. Billman said that declining fund balances means a community that is having trouble with finances.  Dave Richards said he does not disagree with Mr. Billman.

Paula Glidden commented that it would be very important for the Abaris workshops to take place and she looks forward to them.  Ms. Glidden asked if those will be scheduled within the month.  Dave Richards said he believes they will be within the month of April.

Paula Glidden asked about the $85,000 and what that includes.  Michael Sullivan explained that the adopted budget for fiscal year 2003/04 was $286,000 and the proposed budget is $285,000 in which the variance is very close. Mr. Sullivan said what is being seen is the variance between what we estimate to be what we actually spend this year by the time we get to June.  It is below the adopted budget and so the variance looks larger as we are going back to the original amount as there were some vacancies not filled.  Actually, some money was saved this year and is showing up as variance.  

Jeanna Howard asked when it would be anticipated that Michael Sullivan would take over completely from Mike Cox.  Mr. Sullivan replied that he has not been here and it is done.  Michael Sullivan said that accounts for the number of spreadsheets as Mr. Cox was not transitioning anything over.  

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Mr. Sullivan stated that we are holding our breaths for the HTE to jump start to some degree so we could use their system.  We are not in their system.  They have a budgetary system but we could not use it for personnel calculations.   The focus is not the variances as whether it was the adopted budget or what we think we will save for the year.  We did try to save money throughout the year.  This is a draft and one thing that was attempted was could we fit into the general fund six full time employees from the current ambulance fund.  That is why it is driving the number higher this year.  Michael Sullivan noted that the other item is a transfer to the capital fund which we had before.  Mr. Sullivan called these elective budgetary decisions but one is a what if and the other is a what if an elective.  Michael Sullivan said that it correct that it is drawing down the fund balance, with some coming from transfers out, $200,000 to the ambulance fund and $400,000 to the capital fund and another chunk would be the impact of the general fund absorbing six firefighters into the general fund from the ambulance fund.  This is a draft and there will be changes to it.  Mr. Sullivan said we will tweak it just like talked about earlier.  That is one possibility.  

Jeanna Howard asked if any numbers were worked up for what was thought about the mess with fire and rescue coming out of the enterprise fund and putting into the general fund.  Ms. Howard asked what anticipated savings are expected for the enterprise fund.  Mr. Sullivan said it was reflected in the increase in cost in the general fund but a decrease in the ambulance fund.  There was discussion regarding expected growth from revenues and explanation of the consolidated tax was discussed.  

Paula Glidden asked what is being seen regarding the impact fees the Board requested.  Michael Sullivan said he saw a draft and the county is waiting until after the zoning is complete.  The county has hired a company through Tri-Core to do the impact feel study.  Jeanna Howard pointed out that it is going to take nine months.  Mr. Sullivan noted that nothing will be seen at the Town level for at least that long.  Jeanna Howard said the Town will have to realize there will be a split with other entities for the impact fees.  

Jeanna Howard asked what the $20,000 for hardware and software was for in the Administration budget.  Michael Sullivan explained that it was a place saver.  Mr. Sullivan continued that Dan McArthur (auditor) brought up at the audit that we may not be on line with the HTE system and he suggested that we would need software if the HTE was delayed.  Ms. Howard asked if this was being done when Quick Books was brought in.  Mr. Sullivan said that Quick Books has not been started but will be using it soon.  Fall Festival account was used as a test but Quick Books was not made for governmental accounting.  Michael Sullivan said he thought it would be only for a short interim.  Mr. Sullivan said that Mr. McArthur was not encouraging although he was supportive of Quick Books for the Fall Festival because it is operated on a quick turn around basis.  

Dave Richards referred to the impact of moving of six employees from the enterprise fund into the general fund.  Mr. Richards referred to page nine of the draft budget and stated he had
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conversations with most of the Board prior to putting the budget together concerning waiting to see what kind of impact that would have.  Dave Richards said he could not get a handle on the numbers that were budgeted and the actual expenditures for certain years.  Mr. Richards stated that he and Mr. Sullivan were both in a state of confusion most of the time.  Jeanna Howard asked Mr. Richards to explain further.   Dave Richards said he could not get a handle on expenditures and referred to line 6 on page nine.  Mr. Richards said he has trouble getting his hands around a fund that has a variance of a million dollars from what is adopted to what was revised.  Dave Richards stated he begged for everyone’s deference until we could but our own budget together and come up with a proposed budget of $1,405,000 after taking out the six full time employees and putting them in the general fund.  Mr. Richards said he does not know where the other numbers, 2004 adopted and revised, come from.  Dave Richards noted that on line eleven follows the same path as line six.

Staff explained that the $600,000 in the adopted budget for 2004 included $400,000 that the Board went to the County Commissioners and asked for but was turned down.  That is why the revised 2004 shows only $200,000.

Chief Lewis explained that last year when the budget was prepared also included was the dual certification numbers that were built in and the possible payback to the union.  This was approved by the Town Board last year.  Richard Billman asked what the payback was about.  Chief Lewis stated that it was for payback issues and part of the dual certification issues.  That is the reason for the difference in salaries and benefits.  

Richard Billman said he does recall the $400,000 transfer that we were hopefully going to get from the County to help us out.

Walt Kuver commented that he would like to get back to the magnitude of the problem.  Mr. Kuver asked if this budget as presented include any of the revenue enhancers from the Abaris report.  Dave Richards replied that it does include an increase in rates for ambulance service as recommended by the Abaris report.  Mr. Kuver commented that it would take approximately eighteen months to two years to put changes in place that recover enough money to provide a level of service that this budget represents.  It must be determined if the community is going to insist on this level of service.  It would be nice to reduce the deficit by 40% or 50% by some other suggested enhancements that may be more short term that would let us survive two more budget years before we face the wall.  Mr. Billman noted that the budget lets us survive one year and at the end of that year he does not see how to survive another.  Walt Kuver suggested cutting the present situation in half then the reserves go back in to cover the next year.  Mr. Kuver suggested getting on with the process of setting the vision for fire- rescue and see if implementation of other enhancements can see if we can survive two more budget years before the big impacts hit, such as a tax increase or whatever.  Walt Kuver asked who he should submit comments to regarding the Abaris reports.  Dave Richards said Mr. Kuver could send them to

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him.  Mr. Kuver asked if Mr. Richards was going to be the arbiter.  Mr. Kuver suggested that Chuck Patti write a rebuttal of the report.  

Charlie Gronda commented that at the meeting for the Abaris report that he brought up what would happen if we raised taxes.  Mr. Gronda stated that everything he sees has skirted this idea.  If nothing is done and nothing is done before election time you have to wait two more years for the election and another year for the taxes to take effect before anything is realized.  Charlie Gronda proposed to put together a package and put it on the ballot and let the people decide what they want, if they want a fire department like Abaris suggested with adding more people per shift and doing other things, let the community decide that they are going to pay for it.  Mr. Gronda pointed out that the Town portion of the property tax may need to be doubled which provides the Town with $1.4 million and is only a small portion of the what is paid on the tax.  The cost for the Town pr

 


Backup

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