Loading...
HomeMy WebLinkAbout2001-04-17 Council Packet - Work SessionKenai City Council Work Se~~ion April 17, 2001 Budget KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 17, 2001 KENAI SENIOR CENTER 7:00 P.M. MAYOR JOHN J. WILLIAMS, PRESIDING Council Present: Staff Present: Others present: Bookey, Swarner, Porter, Williams, Moore, Frazer and Bannock Freas, Ross, Semmens, Frates, Graves, Komelis, Jankowska, La Shot, Kelso, Morris, Walden, Cronkhite', Wanamaker, Kohler, Tilly DeForest, Clausen, Castimore, Baldwin, Peters, Heus, Kiel Mayor Williams opened the work session and noted the letters of request for donations received from the Boys & Girls Club (increase from $800 to $1,000) for the ALPAR litter control program, Kenai River Festive (($300), and Central Area Rural Transit System, Inc. ($25,000). Also noted was a memorandum from Finance Director Semmens regarding the multipurpose facility proposed refrigeration project and buyout of Phase 1 LLC. Council began with reviewing each individual department budget. Clerk's Department: Clerk Freas reviewed her department budget and noted a 20-hour permanent position was included which decreased the amount in professional services as the position would eliminate a large portion of costs attributed to contract secretarial and archiving work. She also noted there was a small increase in travel to cover costs for training for the 20-hour person, as well as car allowance. A lengthy discussion followed regarding the possible need to upgrade the 20-hour position to 25 hours if the Clerk's office is moved to the downstairs area of City Hall being vacated by the Public Health Nurses. It was noted, the. part-time person would be attending commission meetings in the evening which would be included in the hours-per-week worked and at 25 hours per week, health insurance must be included with the person's benefits and increases the cost for the position by approximately $10,000 a year. Because of the significant increase in the cost and the unknown of whether additional hours would be needed, consensus of council was to not to allow the increase to 25 hours, although Williams requested additional hourly information. ACTION: No changes were made and this budget was approved as presented. Visitors Center: Ross reviewed the budget with council and noted the primary increase to the budget would be the city's payment to the Center for services provided from $65,000 to $70,000. There were minor increases elsewhere in the budget, however there was very little difference between the current budget and the amended budget for next year. The purchase of a laptop computer was questioned and Ross explained it would be used for taking an inventory of museum items and city's historical equipment, etc. BUDGET WORK SESSION APRIL 17, 20O 1 PAGE 2 Bannock stated his disappointment with this budget and suggested the budget be decreased in professional services. He added, he believed the Center should have a goal of decreasing the city subsidy instead of increasing it because they do not pay rent, are recipients of revenue from the building (pull tabs, fee structures, etc.), and .the city pays for the maintenance and utilities, etc. It was noted it would be much more expensive if the city took over the operation and management of the building (including employees). ACTION: No changes made and this budget was approved as presented. Legislative: Upon review and discussion, the following was determined: A donation increase to $1,000 for the Boys & Girls Club for the ALPAR program was approved. · A request to increase the donation for the KCHS Graduation and donation of a computer as a grand prize at the after-graduation party was denied. Though dissatisfaction with their donating funds that were donated to them was expressed, the city's donation to Peninsula Winter Games was approved. · A request to increase the Hockey Booster advertisement to full page at a cost of $500 was denied. · Although an objection to a city match to United Way was made, the donation was approved. A request to increase the Industry Counts donation was denied. · A request to place $10,000 in the Professional Services portion of the Legislative budget toward the production of a video production by Randy Chalawsky (the issuance of the funding to be reexamined prior to committing the funds) was approved. The request for $25,000 for the Central Area Rural Transportation Service (CARTS) was denied. · A suggestion to include funding cover donations to the KCVB for yearly special exhibits was denied (they will be reviewed individually). · A $750 donation to Tourism Marketing Council was denied and added to the Miscellaneous/Miscellaneous (now. to be $3,100). · A $1,200 request for the KCHS Art Department for a DVD camera (allowing ability to make a DVD presentation for the city and to reproduce for distribution) was denied. ACTION: Changes as stated above. Legal: A $7,350 increase in the total budget would cover increases in salaries and benefits, a new computer for the Legal Secretary, professional services for the code publishing, and books (on-line legal services). BUDGET WORK SESSION APRIL 17, 2001 PAGE 3 ACTION: No changes and accepted as presented. City Manager: Increases to this budget reflect anticipated benefits and travel for the new city manager. It was noted the code provides for a vehicle or monthly car allowance for the city manager and was not provided for in this budget (may be part of the negotiations). Moving expenses were not included as those costs would be negotiated and taken from the current budget. ACTION: No changes made and this budget was approved as presented. Finance Department: A $4,000 increase in Small Tools & Minor Equipment reflects the planned purchase of new computers and office furniture. ACTION: No changes made and this budget was approved as presented. Land Administration' No changes. ACTION: No changes made and this budget was approved as presented. Non-Departmental: Though insurance costs show an increase, the overall budget was down about $8,500 from what was appropriated last year. ACTION: No changes made and this budget was approved as presented. Planning & Zoning: An increase in salaries and benefits reflect the plan to change the Administrative Assistant III to the position of Planner at a Range 14 and upgrading the part-time position to permanent at 25 hours per week, Range 7 and calling it a Department Assistant II. [The funds that had been included in the Public Works Administration for the Engineering Tech position will be moved to Planning & Zoning and instead of hiring two part-time persons, one 25-hour, Range 7 position will be created and will be supervised by the Planner (increase for Planner will be $3,700 and the part-time position will be $12,000)]. ACTION: No changes made and this budget was approved as presented. Safety: Basically the same budget as last year's. ACTION' No changes made and this budget was approved as presented. BUDGET WORK SESSION APRIL 17, 2001 PAGE 4 Police: Increase reflects an additional police officer position (filling a position reduced in 1997) and may be covered by federal grant funding ($75,000 over a three-year period and accepting the grant will require the position to be continued beyond the three-year grant period). The impact of an additional prison at Wildwood was discussed briefly. It was noted a report on the social impacts to the community by the proposed prison was requested by three members of the Borough Assembly. ACTION: No changes made and this budget was approved as presented. Communications' This budget decreased by approximately 15%. ACTION: No changes made and this budget was approved as presented. Animal Control: It was reported the budget reflected a slight increase to operations of the facility and small tools (a shed will be placed for storage of live traps, portable kennels, etc.). ACTION: No changes made and this budget was approved as presented. Fire' It was noted this budget reflected an increase in Salaries and Benefits, Small Tools (upgrade of air packs), Professional Services (physicals for ten people, next year this cost will be less), and Utilities. ACTION: No changes made and this budget was approved as presented. BREAK TAKEN: 8:55 P.M. BACK TO ORDER: 9:10 P.M. Public Works Administration: This budget reflects a decrease due to the removal of the funding for the Part-time positions. ACTION: No changes made and this budget was approved as presented. Shop: Increases to the budget reflect fuel costs and broom segrnents for the sweeper. ACTION: No changes made and this budget was approved as presented. Streets: This budget reflects the following: BUDGET WORK SESSION APRIL 17, 2001 PAGE 5 · Increase in personnel for a six-month position to assist in street maintenance, crack-sealing operations, placement of street banners, holiday lights, etc. · Increase in Operating & Repair Supplies for sand purchase. · Increase in Machinery & Equipment to replace the truck sander and tailgate spreader. · Renting a sweeper as it is more cost effective. · More effective to hire the part-time person instead of contracting out due to the variety of work responsibilities. A request was made to have the gutters and mediums along the Spur Highway swept earlier in the year and to have the crosswalks at streets and to parks painted early in the summer. ACTION: No changes made and this budget was approved as presented. Buildings:. It was noted this budget was increasing approximately $49,000 reflecting changes in salaries and benefits; purchase of a new stand-by generator for the public safety building; funding for remodel of City Hall and some work at a warm storage building to make more room for building maintenance employees after some equipment is moved to the new airport building; and funds to purchase a new vehicle for the building official. ACTION: No changes made and this budget was approved as presented. Street Lighting: _ It was explained this budget was increased to purchase more lights because Homer Electric Association will not purchase some of the metal poles. Several suggestions were made where street lights could be placed, i.e. Dolchok/Beaver Loop and Rogers/Lawton. ACTION: No changes made and this budget was approved as presented. Librar~: The following information reflecting this budget' · Upgrade of part-time position to full time. · Purchase of filtering software (Children's Internet Protection Act). · Increase in printing and binding for new copier contract. · Increase in repair and maintenance for the web pack licenses and repair of library chairs. , ACTION: No changes made and this budget was approved as presented. BUDGET WORK SESSION APRIL 17,2001 PAGE 6 Recreation: This budget reflected the following: An increase in salaries and benefits ~to cover costs for upgrading a Range 3 position to a Grade 6. Increase in Small Tools for a cardio bike. · Increase in Rentals for portable toilets for the Nordic Ski trails during the winter months. · Minor increase in Miscellaneous to cover costs involved with teen dances. ACTION: No changes made and this budget was approved as presented. Parks: This budget reflected the following: · Increase in salaries and operating expenses which includes the 200 hours for the Parks maintenance personnel. · Increase in operating and repair supplies to extend the fertilizer program into the fall. · Increase in repair and maintenance to repair a roof at Municipal Park, and to begin a new project to repair or replace signs in the city parks (beginning this year with a new sign for Municipal Park). · Increase in equipment to replace the snow machine used to groom the Nordic Ski trails. · This budget did not include funding for a skateboard park as costs were being further investigated for skateboard equipment and fence costs. When asked if these funds would be included in the new budget or spent from the current budget, Ross explained it would be council's decision either to begin the program this year or make it a part of the hockey program (raise in mil rate, etc.) and do it next year. It was estimated the cost for a skateboard park would be approximately $30,000- $32,000. Porter stated she wanted the issue to be discussed separately and done this summer. Discussion followed regarding the turnaround time for ordering equipment, etc. Frates reported approximately three to four weeks. Ross explained part of the hold-up was investigating participation of the School District, having equipment made locally or purchasing from a manufacturer. His recommendation was to purchase the equipment from the manufacturer and have it installed, along with purchase of fencing at an approximate cost of $32,000 (which would require appropriation from the fund balance). A brief discussion followed regarding the watering program and it was explained the program would start earlier this year and a sufficient of hoses and sprinklers were available. Beautification' BUDGET WORK SESSION APRIL 17, 2001 PAGE 7 This budget reflected the following: · Increase in maintenance and salaries. · Increase in repair and maintenance for installation of more transformers on street light poles in order to add more holiday decorations throughout the town. · Increase in improvements other than buildings for a new cemetery fence (rod iron along the front and east side if affordable). · Greenhouse repair funds were included for possible replacement of plexi- glass panels. A discussion followed regarding the available space at the cemetery and it was noted there are two areas which have not been used; to the left which has been platted but not brushed out and toward the runway which has been brushed out, but not platted. It was also noted, spaces were still available in the new part to the fight and it is not encouraged to use the pioneer area. It was also noted there had been some interest in installing crypts expressed to Williams. It was noted there was potential to expand the cemetery with FAA's concurrence. ACTION: No changes made and this budget was approved as presented. Refrigeration at Multipurpose Facility: A lengthy discussion took place in regard to the memorandum distributed at the beginning of the meeting indicating the following: "The multipurpose facility refrigeration project and buyout of Phase 1 LLC will require a $1.6 million transfer from the General Fund to the capital project fund. This reduction in fund balance will reduce interest earnings b $90,000 annually since these funds will not be replaced. There will also be $30,000 in additional utilities for refrigeration and we expect revenues for ice rental to add $10,000 to the $40,000 that is already in the budget...The ongoing budget impact is $110,000 annually. This would require a mill rate increase of .32 to cover." Comments included: · Concerns of taking the General Fund balance to that level and how far does the council feel comfortable taking the balance. · Administration reviewed the funds and discussed to where the fund balance should go which is a policy call of council; if the funds are pulled from the fund balance, the monies to cover the project (with the additive alternates) and the mil rate is raised to compensate for'the fund balance revenue, is a policy call for council; pulling the funds won't hurt if they are replaced by a mi! rate increase so that next year the budget is not crippled or have operating deficits and need to draw from the fund balance. · The dollar amounts were what council expected; it's a good project for a lot of people; if the mil rate is raised one-half mil and not used, it could be put back BUDGET WORK SESSION APRIL 17, 2001 PAGE 8 into the fund balance; there may be land sale funds that will be put back into the fund balance. · Hesitant to raise the mil rate because of confidence that the use and popularity will cover the costs. · Icing the floor is just the beginning and in time, there will be a desire to enclose the building more, add clubhouse rooms, etc. and more money will be spent. Raising the mil rate could be used as a savings account to cover the costs of those future needs. · In favor of the development to this point, and any future expansions should be through the facility's own capabilities. · The mil rate wouldn't need to be raised, if $1.6 million is used, the number of the deficit surplus will change to $611,000 and the adjusted deficit surplus will show $110,000 taken from the fund balance to support the operating portion for the budget, i.e. the budget will be in the red by $110,000 unless the operating budget is decreased by $110,000. · Not necessarily willing to support a tax that might increase the fund balance; the city has never been in the position to be forced to make a cut to balance a budget; see what the revenue ramifications will be over FY 2002 and during budget planning next year, make necessary cuts to make up the loss to the fund balance. · Would not cut services to the citizenry unless they request the cuts in library, ambulance, etc. Because the amount would be $110,000, don't raise the mil rate this year, but wait and see. · Because the refrigeration would not be in use for a full year by next budget and whether the costs will be covered would still be an unknown, it was suggested to have a .32 mil rate increase to break even. An unofficial advisory motion was made and seconded to spend $1.6 million from the General Fund as outlined in the memorandum and was agreed upon unanimously. An unofficial advisory motion was made and seconded for the mil rate to stay at 3.5 for the coming fiscal year. VOTE: Frazer: Yes Williams: No Bookey: Yes Swarner: Yes Moore: Yes Porter: Yes Bannock: Yes The motion passed. Williams noted he would be on the radio on May 7 at 9:00 a.m. and requested council members to join him. Bannock, Porter, and Swarner stated they would accompany him. Rick Baldwin (LLC) stated he would join them too. BUDGET WORK SESSION APRIL 17, 2001 PAGE 9 Water Fund: This budget reflected minor changes, including a decrease of about $20,000 in maintenance and operations because of purchase of equipment last year and not needing purchases this year. ACTION: No changes made and this budget was approved as presented. Sewer Fund' This budget reflected salaries are up a little, but maintenance and operation is down. ACTION: No changes made and this budget was approved as presented. Sewer Treatment Plant: This budget reflected an increase in utilities; an increase in repair and maintenance for roof repairs ($40,000}; and small tools also has a minor increase. ACTION: No changes made and this budget was approved as presented. Airport Land System: This budget reflected the purchase of a new pick-up truck as the current one was not functional to do the brake action'reports required. The current truck will be kept and used for hauling grass cuttings, etc. ACTION: No changes made and this budget was approved as presented. Airport Maintenance & Operations' This budget reflected fuel cost increases, an increase in small tools for furnishings for the ARFF/SRE building, and an increase in advertising. ACTION: No changes made and this budget was approved as presented. Airport Administration: ACTION: No changes made and this budget was approved as presented. Airport Land: This budget reflects funds for building outside safety stairs at the PRISM facility. ACTION: No changes made and this budget was approved as presented. Boat Facility: This budget reflects much the same as last year's budget. ACTION: No changes made and this budget was approved as presented. BUDGET WORK SESSION APRIL 17, 2001 PAGE 10 Congregate Meals~. It was noted the meal donation was increased from $3.00 to $4.00. ACTION: No changes made and this budget was approved as presented. Borough Grant Fund: It was noted the buildings budget includes funds for carpeting and a range hood for the Center. ACTION: No changes made and this budget was approved as presented. Senior Employment: It was not anticipated the Title V positions would be lost this year, however if they are lost it would be a major decrease in the program. ACTION: No changes made and this budget was approved as presented. Debt Service Funds' ACTION: No changes made and this budget was approved as presented. Airport Terminal Fund: This budget reflects a reallocation of the seasonal hire against the terminal and the person will be used for inside and outside upkeep, grass maintenance, etc.; increases in Professional Services for determining what needs to be done to the sidewalk, pavement, parking area, etc. for upgrades; an increase in Repairs & Maintenance for the terminal roof flood coating; increase to janitorial services; an. increase for upgrading the sidewalk; and an increase to upgrade the fire alarm system. ACTION: No changes made and this budget was approved as presented. Congregate Housing Fund: This budget reflects increases to the contractor's contract and Repair & Maintenance for painting of the west side of the building and some interior painting. Discussion followed regarding the need to paint the apartments which have not had a change over since the opening of the building and especially those with tenants who smoke. Also discussed was the replacement of the carpet throughout the building in the individual apartments. Ross explained, in reviewing priorities, it was decided to put money in for carpeting next year and the year after, and $50,000 toward carpeting in the Center this year. It was suggested funds from the reserve account be used for the carpeting. Ross explained, if money is taken from the reserve, then the cash flow going to the General Fund would cease and the General Fund would take a $100,000 decrease next year. ]3UDGET WORK SESSION APRIL 17, 2OO 1 PAGE 11 Williams noted, it was never discussed how to handle major repairs and replacements in congregate housing from the fund, i.e. the fund was set up and it was decided to let it run to $500,000 and then flatten it out with the money then going to the General Fund. Amortization/depreciation was discussed in regard to carpeting, replacements, etc. Williams stated he felt the housing funds should not be put into the General Fund and Porter agreed. It was suggested a change in the policy be made (requiring a change to the ordinance). Porter noted a new Meals-OmWheels van is needed and felt it should be purchased from this fund as well. ACTION: No changes made and this budget was approved as presented. Land Sales Trust Funds: ACTION: No changes made and this budget was approved as presented. Ross noted next year there will be pressure from taking out the $1.6 million, as well as considering a COLA increase. Because of those impacts, council may have to consider a raise in taxes or cutting operations next year. The work session adjourned at approximately 11:40 p.m. Notes transcribed and prepared by: Carol L. Freas, City Clerk CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 TO: FROM: DATE: SUBJECT: Rick Ross, City Manager ~ Larry Semmens, Finance Director 200 Multipurpose Facility The Multipurpose Facility refrigeration project and buyout of Phase 1 LLC will require a $1.6 million transfer from the General Fund to the capital project fund. This reduction in fund balance will reduce interest earnings by $90,000 annually since these funds will not be replaced. There will also be $30,000 in additional utilities for refrigeration and we expect revenues for ice rental to add $10,000 to the $40,000 that is already in the budget. To summarize, here are the changes to the budget' General Fund: Non-departmental, Transfers to Capital Project Fund Recreation, Utilities-- add $1,600,000 $3O,O0O Interest Revenue -- deduct Multipurpose Revenue -- add $90,000 $1o,ooo The ongoing budget impact is $110,000 annually. This would require a mill rate increase of.32 to cover.