MINUTES OF THE PEORIA CITY COUNCIL
CITY OF PEORIA, ARIZONA
PINE CONFERENCE ROOM
April 7, 2011


A Budget Study Session Meeting of the City Council of 
the City of Peoria, Arizona was convened at 8401 West 
Monroe Avenue in open and public session at 5:01 p.m.

Members Present: Mayor Bob Barrett; Vice Mayor Cathy 
Carlat; Councilmembers Ron Aames, Joan Evans, Carlo 
Leone, Dave Pearson, and Tony Rivero.
 
Members Absent:  None

Other Municipal Officials Present:  Carl Swenson, City 
Manager; Susan Daluddung, Deputy City Manager; Susan 
Thorpe, Deputy City Manager; Steve Burg, Assistant City 
Attorney; Wanda Nelson, City Clerk; Brent Mattingly, 
Finance Director; Andy Granger, Director of Engineering; 
John Imig, Director of Information Technology; Bill 
Mattingly, Utility and Public Works Director; Roy Minter, 
Chief of Police; Wynette Reed, Human Resources 
Director; Thomas Solberg, Fire Chief; Jeff Tyne, 
Management and Budget Director; Katie Gregory, Interim 
Budget Director; Sherine Zaya, Communications 
Department; Claudia Luján, City Manager’s Office.

Audience:  Approximately twenty-five members of the 
public were present.

After a moment of silent reflection, Councilmember Leone 
led the Pledge of Allegiance.

Fiscal Year (FY) 2012 Budget Workshop

Clerk’s Note:  The complete Proposed FY 2012 Budget 
is on file in the City Clerk’s Office.

Katie Gregory, Interim Budget Director, provided an 
overview of the agenda for tonight’s meeting.  Carl 
Swenson, City Manager, outlined the strategies 
incorporated into the proposed budget for 2012 by 
addressing the following Council priorities:  community 
building; enhance services; preserve our natural 
environment; total planning; economic development.   

Discussion ensued regarding the process for the final 
approval of the budget, and the ability of Council to remove 
line items from the budget for separate consideration.  

Health Care Overview
Wynette Reed, Human Resources Director, and Bobbie 
Kimelton, HR Manager, outlined a health care cost 
containment strategy, which included reducing claims 
costs, managing risk, and improving 
availability/productivity.  Discussion ensued regarding the 
current rate design, the feasibility of an on-site health clinic, 
and the current plan’s design.  

The Mayor called for a recess at 6:24 p.m.  
Councilmember Leone left at this time.  The meeting 
resumed at 7:01 p.m.

Utility Budget and Rate Discussion
Jeff Tyne, Management and Budget Director, Bill 
Mattingly, Utility Director, and Brian Beismeyer, Deputy 
Utilities Director, outlined the discussion for the Utility 
Budget, to include enterprise fund philosophy, utility fund 
budgets, recent rate history, city objectives, rate structures, 
recommendations, and comparative analysis.  Discussion 
ensued regarding the cost savings achieved through 
energy efficient measures for water and wastewater 
treatment electrical utilities, Capital Improvement Costs at 
various facilities, and the two main factors driving utility 
rates:  revenues (less consumption means less revenue) 
and expenses (operating costs, debt service obligations, 
cash funded capital).  Brent Mattingly, Finance Director, 
discussed the financial integrity of the utility system and the 
City’s debt coverage requirement.  Consultant Frank Davis 
with Raftelis Financial Consultants reviewed current 
consumption patterns and outlined a proposed water rate 
structure that is based on consumption.  

Councilmember Leone returned to the meeting at 8:22 p.m.  
Councilmember Aames left the meeting at 8:43 p.m.

Mr. Tyne stated that a 4.6% increase to water and 
wastewater rate will be needed for this enterprise fund to 
remain solvent; no increase to solid waste services is being 
proposed at this time.  This translates to an average 
increase of 3.6% to the average user’s bill.

ADJOURNMENT:

	Being no further business to come before the Council, the 
meeting was duly adjourned at 8:51 p.m.



	______________________________________
	Bob Barrett, Mayor                                      
 

ATTEST:



______________________________________
Wanda Nelson, City Clerk


CERTIFICATION

I hereby certify that the foregoing minutes are a true and 
correct summary of the proceedings of the Budget Study 
Session of the City Council of Peoria, Arizona held on the 
7th day of April, 2011.  I further certify that the meeting was 
duly called and held and that a quorum was present.

Dated this 3rd day of May, 2011.                                                   


(Seal)



______________________________________
Wanda Nelson, City Clerk