SPECIAL MEETING OF THE CITY OF CONNELL, WASHINGTON
CONNELL, FRANKLIN COUNTY, WASHINGTON

November 18, 2003

The Special meeting of the City Council of the City of Connell to discuss the budget for fiscal year 2004 was called to order by Mayor Pro-Tem Skoglund at 6:05 p.m. in the Connell City Hall .

ROLL CALL

PRESENT:       Mayor Pro-Tem Perry Skoglund, Councilmembers Andy Sawyer, Ron Boyer and Roel Martinez.

EXCUSED:      Mayor Gary Walton and Councilmember Monica Pruett.

STAFF:            City Administrator Art Tackett , City Clerk/Treasurer Joan Eckman and Deputy Clerk Maria ChavezPeña.

ORDER OF BUSINESS

BUDGET DISCUSSION

City Clerk Treasurer Eckman advised that the payoff amount of the Department of Transportation contract for the land for the new Wastewater Treatment was $70,896.65.  This amount would be taken from the Sewer Fund and the amount transferred into the reserve would be lowered by that amount.  The City would save $77,000 by paying this off at this time.

Council consensus was to proceed with the payoff of the loan for the Department of Transportation.

City Clerk Treasurer Eckman reported that the City would lose approximately $80,193 if it lowered all utility taxes to 5%.  The biggest impact would be to the General Fund for about $47,584.  By passing an ordinance on cell phone taxes the City would generate approximately $18,333 in revenue for the General Fund.  The General Fund loss would impact the Park & Rec Fund as well as the Street Fund which are supported by the General Fund.  The City could transfer money out of the reserve funds to support the Street and Park & Rec Funds, but would still impact capital projects.

Council discussed the placement of a $140,000 cap on utility taxes.  It was suggested that utility taxes be lowered with the understanding that they could be raised again.

Council consensus was to lower all utility taxes to 5% for a year at which time they would be looked at again to see if they needed to be increased.

Council consensus was to place a cap of $140,000 on the gas utility tax paid each year by any business.

City Clerk Treasurer Eckman advised that notices would be mailed to the telephone company advising them of the cell phone tax.

It was noted that the all water services would be shut off on November 25^th at 8:00 pm until November 26^th at 6:00 am for repair work.

MEETING ADJOURNED

There being no further business to be heard before the City Council of the City of Connell , the special meeting was adjourned at 6:43 p.m.