HomeMy WebLinkAbout2004-05-03 Council Minutes - Budget Work SessionKENAI CITY COUNCIL
BUDGET WORK SESSION
KENAI CITY COUNCIL CHAMBERS
MAY 3, 2004
6:00 P.M.
MAYOR JOHN J. WILLIAMS, PRESIDING
Council Present: Jim Bookey, Pat Porter, Linda Swarner, Joe Moore, Blaine Gilman,
Rick Ross, John Williams
Staff Present: Carol Freas, Linda Snow, Larry Semmens, Cary Graves, Ewa
Jankowska, Scott Walden, Jack La Shot, Randy Kornfield, Rachael
Craig, Keith Kornelis, Bob Frates, Casey Reynolds, Tommy Carver,
Linda McNair, Marilyn Kebschull, Susan Joy, Mary Bondurant,
Robin Feltman, James Dye, Bob Springer, Nancy Carver, Tony
Prior, Kim Howard, Gus Sandahl, Eric Wilcox, Bill Lopeman,
Kathy Romaine, Mike Wichman, Randy Kornfield, Greg Beckman,
Melissa Bailey
Others: Michelle Glass (KVCB)
Mayor Williams opened the work session at approximately 6:05 p.m. Finance Director
Semmens reviewed a handout which offered the following three scenarios:
Scenario No. 1) Reflects the items proposed in the work sessions, i.e.
$83,200 in additional appropriations and a reduction of $62,078 in revenue from
Congregate Housing. It noted, this scenario would increase the FY 2005 deficit and
would decrease the available fund balance. Scenario # 1 also includes a seven percent
COLA raise for employees.
Scenario No. 2) Reflects the added items proposed as above and a five
percent COLA increase. He noted, since this reduces appropriations by about
$90,000, the deficit is reduced and available fund balance is increased.
Scenario No. 3) Includes the above and reduces the mill rate to four. This
scenario would reduce revenue, and therefore the deficit increases and available fund
balance decreases.
Council reviewed the "Suggested Changes List" created from the previous budget work
sessions discussions and made the following findings:
1. Legislative/ $3,000 /Travel to DC --
Findings: Approved
2. Legislative / $10,000 /Advertising for City CD -- Change CD to "promotional
materials" and discuss how the money is to be spent later.
Findings: Approved
3. Legislative/ $3,000 /Milepost Advertisement --
Findings: Approved
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4. Streets/ $60,000/ Dust Control -- Comments received:
KENAI CITY COUNCIL BUDGET WORK SESSION
MAY 3, 2004
PAGE 2
Greg Davis, Ames Road -- Davis explained Ames Road is in terrible condition.
He and his neighbors understood funds were not available for paving last year and
budgets had to be tightened up. However, the city is receiving additional sales tax
from Home Depot, etc. and the future looks brighter. He requested dust control
measures be applied. Davis also noted, they have potholes and dust problems.
Public Works Manager Kornelis explained the procedure for permitting (takes two to
three weeks), cost, acquiring the product and leasing the application truck. He
suggested an estimated cost of $50,000 to $55,000. Bonding to fund paving projects
throughout the city was briefly discussed, as well as watering and grading.
Findings:
Do more grading and watering this year. Add $60,000 into the FY2005 budget.
5. Parks/Concrete Sidewalk at Memorial Park -- Parks 8s Recreation Director
Frates reported he spoke to a concrete contractor who estimated a cost of $10,000 for
240 Lineal Feet of sidewalk and would allow for 30 spaces. He also suggested
doubling the amount of spaces but allowing "plaque only" every other space.
Discussion also took place about cutting "plaque only" spaces in the current sidewalks
where space may be available; placement of a memorial wall; and, placing plaques
around the fountain.
Findings: Approved $10,000 for 240 lineal feet.
6. Clerk/Contract Secretary -- This discussion included whether council wanted
to change commission/committee meetings back to a monthly meeting schedule,
whether they wanted department heads to continue to take notes or have a contract
secretary and the if the meeting summaries as they have been prepared during the
last year are adequate and that type of summary should continue.
At the council's request three scenarios were presented, i.e. monthly meetings with
more detailed minutes and an attendant, monthly meetings with meeting summary
and attendant, and bi-monthly meetings with meeting summary and attendant.
Findings: Scenario No. 2 was chosen, monthly meetings with meeting summary
and attendant. The Professional Services account within the Clerk's budget was
increased by $5,400.
7. Library/Sunday Openings -- Mayor Williams noted, though he understood this
subject was discussed at the last work session and council's consensus was to not
include funding for Sunday openings at the Library, he wanted to discuss it further.
Council Member Gilman reported he had been contacted by five people wanting
Sunday openings; the budget was in a surplus situation now; felt it would be
responsible to replace funding for Sunday openings; there are lots of students who use
the library on Sunday; if there's a public library it should be funded appropriately and
KENAI CITY COUNCIL BUDGET WORK SESSION
MAY 3, 2004
PAGE 3
provide services; the Library Commission requested Sunday openings be restored;
and, he planned on forwarding a motion to increase the budget to fund Sunday
openings at the library during the public hearing on the budget ordinance.
A lengthy discussion took place in which comments included:
• Council Member Ross stated the budget is not in a surplus as it still
needs to be determined what service levels need to be restored and maintained. He
will not support funding for Sunday openings.
• Council Member Swarner stated she strongly supported the openings,
but suggested being closed on Sundays during the summer and open on Sundays
during the school months.
• Library Director Jankowska stated another 24-hour/week person would
be needed for staffing Sunday hours ($25,000/year) and suggested longer hours on
Fridays and Saturdays may be better use of funds.
• Council Member Porter stated she would not support additional hours
for the library unless additional funds are placed in the police budget for overtime
hours, etc.
• Council Member Moore stated he would support additional library
funding.
• Council Member Bookey stated he would have a hard time supporting
Sunday openings as other department had been cut and not restored; longer hours on
Fridays and Saturdays was of interest; he definitely would not support Sunday
openings.
Williams suggested the budget ordinance not be placed on the consent agenda for
introduction at the May 19 meeting. By that time additional cost information for
additional Library hours, i.e. longer Friday/Saturday hours v. Sunday openings, could
be gathered. Ross requested a chart be included to show what was cut last year, the
290 hours previously added in the FY05 budget draft, and the additional 24-hour
person.
Findings: Council consensus was to not place the budget ordinance on the consent
agenda for introduction (it will be introduced by separate motion) and cost information
related to the additional hours as requested by Ross be provided.
BREAK TAKEN: 7:32 P.M.
BACK TO ORDER: 7:49 P.M.
8. COLA Increase -- This issue was discussed at length and included comments
as follows:
• Ross stated he believed the seven percent (7%) COLA increase as
suggested by administration was warranted. Approving a seven percent increase
would place Kenai with the City of Soldotna. He noted, Soldotna was currently
involved in union negotiations and the employees there had taken reductions in
KENAI CITY COUNCIL BUDGET WORK SESSION
MAY 3, 2004
PAGE 4
benefits as well. Ross distributed comparisons between Kenai/ Soldotna and the
Anchorage CPI.
• Swarner stated she would support a five percent (5%) COLA increase.
• Finance Director Semmens noted he was projecting a 12% increase in
insurance costs as was budgeted in the current budget.
• Porter stated she would support a seven percent (7%) COLA increase.
She also stated she would like increases in medical insurance be split 50 / 50 with
employees as they do in Anchorage. She noted, she felt a seven percent increase is
warranted.
• Williams stated he would support a seven percent (7%) increase and
referred to the economy's cost of living increases, etc.
• Gilman stated he didn't think a seven percent increase over a four-year
period was high, but disliked that it gives a bad impression to the public. He stated
he believed it more appropriate to give yearly two to three percent increases instead of
it all at once in the future. Gilman stated he would support the seven percent COLA
increase.
• Moore stated he was not comfortable with a seven percent increase due
to cost cuts made in the budget last year. He stated he would support a five percent
(5%) increase and agreed, COLA increases should be addressed annually.
• Swarner stated she was concerned with the increase in PERS and
Semmens noted the draft budget reflected an increase in PERS.
Three scenarios were noted: 1) a seven percent (7%) COLA increase; 2) a five percent
(5%) COLA increase; and, 3) a five percent (5%) COLA increase with a roll back on
taxes.
• Porter stated her desire to consider splitting insurance increases with
employees as she suggested earlier.
• Williams noted he believed insurance rate adjustments should be
discussed separately due to it is never a certain what those will be.
• Swarner stated she support Porter's request/ suggestion.
• Ross stated he had no objection to investigating Porter's suggestion, but
would rather leave the amounts as they are included in the draft budget and plan for
the future. He did not want to confuse the issue with a COLA increase.
• Ross stated he believed the employees should be involved in discussions
to change the employee contribution for insurance program.
Findings: This issue would be discussed further at the introduction of the
budget ordinance as well.
WRAP-UP:
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• Semmens reported a resolution would be included on the next council
meeting agenda to transfer funds in the Water/ Sewer Fund for construction of a
vactor truck dump station. He noted, if the transfer is approved at this meeting
KENAI CITY COUNCIL BUDGET WORK SESSION
MAY 3, 2004
PAGE 5
(instead of waiting for the next fiscal year), an additional month's use of the facility
would be available. Semmens noted, $30,000 would be cut from the FY05
Water/ Sewer Fund budget. Paving would remain in the FY05 budget.
0 Gilman -- No comments.
• Swarner -- No comments.
• Bookey -- Noted sales tax revenues were underestimated in the last
year's budget. He proposed lowering the mill rate to match Soldotna (3/4 mil) .
• Gilman stated he thought, in reviewing the deficits in the budget, they
were budgeting too tight and not funding programs like they should be. He stated he
would support a mil rate reduction along with an increase in sales tax.
• Bookey stated he was not interested in raising the sales tax and stated
he didn't think a % mil reduction would be detrimental to this budget.
• Ross stated he would not be uncomfortable with a 1/2 mil rate reduction
as he believed next year's sales tax will duplicate year 2003's.
• Porter stated she would not want to reduce the mil rate in order to build
the fund balance. She noted there are other issues to consider in the future, i.e. a
new shop building, library addition, etc. She added, she would like to stay at five mils
for at least one more year.
• Moore agreed with Ross and Bookey; he didn't think the mil rate should
be used to balance the budget; the mil rate should be equal or less than Soldotna;
and, wants to be at least equal to the cities around Kenai.
• Swarner agreed with Moore.
• Gilman agreed it's not good to bounce the mil rate up and down; thinks
it is almost irresponsible to not raise the sale tax now; and, didn't think a raise in
sales tax will drive consumers away from Kenai. Gilman suggested reducing the mil
rate and increasing the sales tax equally.
• Swarner stated she was concerned about having good water.
• Ross stated a one-half mil cut would put it back to the level it was when
Kmart was lost; he agreed bonding should be considered to fund large projects; and
would agree with a one-half mil reduction.
The work session adjourned at approximately 8:49 p.m.
Notes prepared by:
Carol L. Fre s, City Clerk
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