HomeMy WebLinkAbout2006-04-10 Council Minutes - Budget Work SessionBUDGET WORK SESSION
APRIL 10, 2006
KENAI CITY COUNCIL CHAMBERS
6:00 P.M.
TENTATIVE AGENDA
1. Overview of FY 2007 Budget
2. Tonics for Discussion:
a. PERS -- Opting elected officials out of PERS.
b. Shore Fishery Lease Terms
C. Charging fees for administration of grants.
d. Bond propositions
e. Airport property improvements
f. Grant writing.
g. Federal Lobbying
h. Project Protect
BUDGET WORK SESSION
APRIL 10, 2006
KENAI CITY COUNCIL CHAMBERS
6:00 P.M.
MAYOR PAT PORTER, PRESIDING
Council present: J. Moore, B. Molloy, C. Massie, P. Porter, R. Ross, and L. Swarner
Council absent: M. Boyle
Staff present: C. Freas, L. Semmens, R. Craig, C. Graves, R. Koch, M. Joiner, C.
Kopp, J. La Shot, K. Kornelis, M. Tilly, B. Springer, B. Frates, R.
Kornfield.
The work session was called to order at approximately 6:00 p.m
ITEM 1: Overview of FY 2007 Budget
City Manager Koch noted:
• The FY2006 budget was balanced; at year-end, a $600,000 deficit was
projected (due to capital improvements).
• The proposed FY2007 budget has a planned deficit of $367,000; there
are no new programs or employees in the FY 2007 budget.
• He reviewed potential positives that could happen before the budget is
adopted, i.e. health insurance (a new carrier is being considered which would include
a $170,000 reduction); municipal revenue sharing amount of $75,000 may be
approved by the Legislature through SB247; Borough property tax assessments are
higher and may generate additional tax revenue.
• A negative would be the PERS costs.
Finance Director Semmens provided an overview of the draft budget, providing
handouts, and indicating changes from FY 2006 budget, etc.
ITEM 2: Tonics for Discussion:
2-a. PERS -- Opting elected officials out of PERS -- Semmens explained, the risk
for the city is one of a non -vested member of PERS; exposure is in Tiers 1, 2 or 3.
Council requested the resolution, previously prepared but not introduced, be returned
to council for consideration.
2-b. Shore Fishery Lease Terms -- Referring to information included in the packet,
discussion took place related to council consideration in increasing lease charges for
shore fishery leases and whether the increase should be based on market value of the
lease. Changes to the leases can be made every ten years when the leases come up for
renewal.
Mr. & Mrs. Johnson -- Commented the value of the fish fluctuates; some catch more
fish than others; believe it would be unfair; does not believe putting the sites to bid
would be workable; and, the leaseholders' investments in the fishery are large.
Jim Butler -- Believes the value of the sites have many variables and it is important to
understand the risk for the operators in the area is substantial.
Discussion continued and administration was requested to obtain information from
the Kenai Peninsula Borough prior to bringing the issue back to council consideration.
2-c. Charging fees for administration of grants.
Administration was requested to provide an ordinance to amend the code providing an
option of whether an administrative fee is charged depending to the type of grant.
3-d. Bond propositions -- Council consensus was discussion should begin related
to roads, library, etc., putting together a package, however placing a bond proposition
on a ballot would be premature.
3-e. Airport property improvements -- Attorney Graves noted the new Title 21,
which will be considered by council in the near future, includes a mechanism for
development costs in the new leasing provisions.
3-f. Grant writing -- A brief discussion took place in which it was noted, currently
there was no provision to include a grant writer on staff. However, if need is required,
a consultant could be considered for a specific project.
3-g. Federal Lobbying -- No discussion.
3-h. Project Protect -- It was noted, the request for $7,500 was not included in the
budget and would be discussed when the Legislative budget would be reviewed.
Budget Work Session Scheduling_
Council set Tuesday, May 2, 2006 and May 4, 2006 (if required) as budget work
sessions. Both are to begin at 6:00 p.m. and a light dinner is to be provided.
It was requested a COLA increase be discussed first before going through the rest of
the budget.
The work session adjourned at approximately 8:26 p.m.
Notes prepared by:
Carol L. Frea , City Clerk