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HomeMy WebLinkAbout2003-04-14 Council Minutes - Budget Work SessionKENAI CITY COUNCIL BUDGET WORK SESSION APRIL 14, 2003 KENAI CITY COUNCIL CHAMBERS 6:00 P.M. Council Present: Williams, Bookey, Moore, Jackman, Swarner and Porter (arrived at 6:20 p.m.) Staff Present: Freas, Snow, Semmens, Graves, Kopp, Jankowska, Feltman, Lawson, Padilla, Kebschull, La Shot, Walden, Cole, Dye, Wichman, Kornelis, Wannamaker, Craig, and Howard. The work session began at approximately 6:10 p.m. with Vice Mayor Bookey reviewing the activities of the April 7 work session. He noted, at the work session an overview of the budget was presented by City Manager Snow and Finance Director Semmens. Also, a lengthy discussion took place with the council, Parks 8v Recreation Commission, and members of the Boys 8. Girls Club Board of Directors in regard to their proposal to acquire the recreation responsibilities of the city. Bookey noted, testimony given by members of the public cautioned the council to take their time in making this decision and the major concern voiced was the lack of ability of the Club to take on adult programs. Bookey also noted, the city attorney was formulating an agreement for council, the Club, and the Parks & Recreation Commission to review as a beginning point. Snow reported the Club held a board meeting at which they discussed the proposal; she was unaware if there was a vote, but knew they had a really good discussion and are anxious to see the draft agreement. Administration was requested to make the draft agreement available to the public as well. The discussion continued in which it was noted, members of the council were doubtful all the information involved in the Club acquisition would be available prior to the end of the budget hearings. Semmens stated he was optimistic, if there are no deal stoppers, the agreement would be ready by July 1. He noted, the draft agreement is based on working agreements from other communities. Swarner requested a listing of Clubs are receiving monetary compensation from a municipality. She added, she was not interested in compensating the Club and feels there are too many unanswered questions. Bookey stated he wanted to continue through the budget hearings without the Club's participation in the budget. Williams stated he didn't know if it was appropriate to tamper with the community structure for the $85,000 it takes to run the recreation program. He added, he wanted to see more information and the agreement and emphasized the importance of the community being assured the city is not giving away the building or the program. Moore noted, cutting $85,000 would cut the organized programs at the Center, i.e. adult basketball and some wallyball and racquetball tournaments. KENAI CITY COUNCIL WORK SESSION APRIL 14, 2003 PAGE 2 Clerk Department: Clerk Freas presented an overview of suggested changes to her budget based on cutting commission/committee meetings to six a year and holding them on a bi-monthly schedule, except Beautification which would be held for four to five consecutive months, January through May. Freas noted Planning & Zoning had not been included in this proposition. Because Freas attends the Council on Aging meetings, she did not include that group in the bi-monthly meetings. Freas continued, if council chose to delete her department assistant, she proposed the meetings be held bi-monthly, as presented, and the department head/representative attending the meeting would be responsible for taping the meeting, indicating attendance, motions and votes, who spoke in favor or objected to a topic, etc., and the notes would be inputted and presented as summary notes. Freas requested $2,000 be added back into her Professional Services budget to cover the cost of a contract secretary to attend Planning & Zoning Commission meetings and prepare minutes. Freas also noted, code revisions would be required and would include the ability for a commission/committee to request additional meetings if necessary. Williams stated he didn't want people to think the city was trying to keep the public away from government in cutting the number of meetings, etc. Bookey stated he wanted the commissions/ committees to have some input in the process. Council reviewed the remainder of the Clerk budget. Swarner asked if all departments had travel cut as was this budget. It was explained, each department was different. Some departments have instances in which certificates need to be updated and attendance to seminars, etc. are required in order to update. Swarner stated she thought the process should be fair. DIRECTION: Add $2,000 into the Professional Services of Clerk's budget; go forward with cutting the number of meetings for commissions/committees except Planning & Zoning; cut Council on Aging meetings to bi-monthly as well; go forward with taping meetings and preparation of summary notes as presented; and keep tapes of commission/committee meetings for two years. Legislative Budget: Freas reviewed changes made to the Legislative Budget, indicating cuts made, including donations and recommendations for number of members attending AML and NLC conferences, etc. Williams suggested his and council's rate of compensation be adjusted by $100 and Bookey suggested $150-200. Freas also noted, she had recommended cutting the city newsletter to two printings a year. Council discussed the issue briefly and felt, though it had been a successful project, to cut all printings at this time. Council requested the last printing to include an article about the curtailment of the newsletter. DIRECTION: Cut funding for newsletter in Printing & Binding and Postage; write a letter to those groups who will no longer receive donations stating funding was no longer available for the next fiscal year and if funding becomes available, KENAI CITY COUNCIL WORK SESSION } APRIL 14, 2003 PAGE 3 donations may be included in future budgets; adjust council and mayor salaries by $100; delete purchase of city pins. Visitors Center Bud_ et: Ricky Gease, Executive Director of the KVCB reviewed the Center's budget and referred to a new brochure from the Center giving an overview of their funding sources, etc. He noted, $10,000 had been removed from their contract; they are hoping to have certified audits in the future in order to be in a better position to acquire grants; discussed the summer and winter hours they will have due to the cuts; and discussed the constraints they will have if the legislation now before the Legislature is passed. A brief discussion took place and council requested Attorney Graves to write a letter to the area Legislators and the Governor (fax and send hard copy) indicating the city's displeasure with the proposed legislation, as well as the costs to the Visitor Center's budget and ability to conduct their business if the legislation is put into effect. Gease also noted the Center would continue to promote the city; will be very involved in the Arctic Winter Games preparation, etc.; and, are talking with the Borough in regard to different concepts for raising tax revenues to support tourism on the Peninsula. DIRECTION: No changes. Lezal Department: Attorney Graves reviewed the changes to this budget, noting he was recommending a cut in advertising for foreclosures as these will be done every other year; the updating of the Code will be done in-house instead of by contract; only his car allowance and a small amount in miscellaneous travel will be remain in the travel budget; and the code enforcement officer was deleted. A brief discussion followed in which Porter stated her objection to deletion of the enforcement officer, stating it was an inexpensive program and directly reflects on the property values, etc. in the city. Swarner stated she agreed with the statement made by administration: it has been effective, but it is a new program and therefore, the first to go. Bookey stated he also hated to see the program eliminated, but felt a lot of the work could be done in house. Bookey stated he supported the cut. Graves noted, unless there is a field presence, he didn't think the program would be as effective if it is done in house. Williams suggested the program be deleted for the present and if funding does come available in the future months, council could consider replacing the program at that time. Bookey agreed. Swarner stated she wanted administration to try to do the program in house and Graves stated they would do as much as can be done with the available resources. DIRECTION: No changes. KENAI CITY COUNCIL WORK SESSION } APRIL 14, 2003 PAGE 4 City Manager Department: City manager Snow reviewed the changes to her budget, noting reductions and cuts in communications, travel and transportation, etc. DIRECTION: No changes. Land: Snow reviewed this budget and noted there was an increase in the advertising to cover land sales in Inlet Woods. DIRECTION: No changes. BREAK TAKEN: 7:44 P.M. BACK TO ORDER: 7:5 6 Pome Finance Department: Finance Director Semmens reviewed changes to his budget, noting the receptionist position hours were cut 15 hours and those hours were added to the Planning & Zoning Department Assistant, making that position full time. He added, in the General Fund budget, this would not show any increase or decrease. Semmens also noted, though there were no funds in his budget for out-of-state conferences, there were funds included to participate in some in -state conferences/trips. A discussion followed in regard to purchase of new computers in the city. Semmens had explained funds were included in his budget to purchase one new computer with the replaced computer going to another department. Semmens also discussed the network/ server situation with the council. DIRECTON: No changes. Non -Departmental Bud_et: Semmens reviewed this budget noting the increases for insurance coverage and the deletion of transfers for debt service as they wouldn't be needed this year and the transfer to the dock fund will no longer be done. DIRECTION: No changes. Libragy Department: Director Jankowska reviewed her department budget, noting two part-time positions were eliminated and with those job cuts, the library would have to be closed two days a week. Also, she expressed concern the main library server had received an "end of life" notice from IBM. Jankowska also reported a raise in professional services to handle computer configuration. Jankowska also explained her budget reflects requirements of state grants to have the facility open on Saturdays or the grant will be lost. In continuing the review, Jankowska reported the travel budget was cut and no funds were included for her employees to acquire training. A discussion followed as to the merits of charging of a fee for non-resident library users. KENAI CITY COUNCIL WORK SESSION APRIL 14, 2003 PAGE 5 Sal Mattero -- Kenai resident and President of the Friends of the Library. Mattero stated he knew of lots of reasons to continue the library program as it is currently. He noted, residents had come to rely on the library for computer use, research for school children, etc. He added, he could not give an economic reason not to cut this budget other than it was the right thing to do. Mattero added, the Friends would meet and see what it can do to generate more income through donations, etc. He continued, he understood the city's position, however it is a known fact, in economic hardship, libraries are used most and it is a safe place for children. Megan O'Neil -- Kenai resident and member of the Friends Board of Directors. O'Neil noted, the city is in dire straits, however the school district is in worse shape and the school libraries may not be available for their students' use. She emphasized the need for the library to be available if the school libraries are not and that she would support a mill rate to help cover costs. O'Neil added, she would like the return of $15,000 in this budget for one of the employee positions to enable the library to stay open six days a week. She noted, the Kenai Library is the best one on the Peninsula and it could be destroyed in a year. Emily DeForest -- DeForest urged the funding for one of the two deleted positions. In speaking with library users, she learned the library is used for more than the procurement/reading of books, i.e. supervised family visits, homeschoolers, reading books, using computers, etc. DeForest added, the Friends and patrons donated 1,655 books in the last year, equaling $29,000 which are assets to the city. DeForest again urged funding for one of the positions in order to keep the library open six days. Joan Bennett -Schrader -- Box 1265 Kenai, Ridgeway resident. Schrader stated she was disturbed two positions would be lost and her concern it was a health and safety issue there are two people working at the same time. Schrader added, she would not object to purchasing a library card, however there are those living outside the city who cannot afford to do so. She noted, she will do everything she can to help, but the "hammer stops with the council." Jim Evenson -- Nikiski. Evenson stated he understood the issue of looking at the budget in dollar and cents, however he was optimistic funding could come available. He added, nothing adds to the quality of the city more than the library. Evenson added, the library brings people to Kenai and they then spend money in the city. He urged, if a miracle happens and funds become available, think of the library. Williams suggested to cut the amount of funds included in the budget for books ($32,000) in half and use $16,000 to fund apart -time position and cut back on the amount of books purchased. If funds become available later in the year, funds might be able to be replaced. Swarner agreed with Williams' suggestion. Porter stated she would like a fee charged for non-residents. Jankowska stated she felt using the $16,000 to fund a position was better than charging for library cards. KENAI CITY COUNCIL WORK SESSION APRIL 14, 2003 PAGE 6 Porter asked if there was a consensus of council to request the Library Commission to explore charging a fee for non -city residents. Council had no objections. Bob Molloy -- Kenai resident. Suggested charging a flat internet fee. He noted he had visited a library in Massachusetts where a flat fee was charged and there was no time limitation. He said that program was very successful. Bookey stated he supported the moving of $16,000 from books to fund an employee position as Semmens stated the $16,000 would be the total cost for wages and benefits. Phil Sonnichsen -- Non-resident and member of the Friends. Sonnichsen stated she volunteers at the library and will work through the Friends to increase the book budget. In regard to charging a fee for computer users, she felt those people needing to use the computers are those who cannot afford their own computer. She added, she would really regret if a fee would be charged. Bob Peters -- Old Town, Kenai. Peters suggested the city create their own miracle by raising the mill rate. He added, people want city services, fire and police protection and library which he believes are essential. Peters stated, he had the feeling council didn't want to take the chance of losing votes by increasing the mill rate. In speaking with members of the community, he has not heard anyone say they would not pay a mill rate increase, though they may not be happy about it. Peters stated he believed the mill rate should be raised several points. A discussion followed in regard to raising the mill rate and the amounts of revenue each point would produce. Adjournment: Semmens reviewed the different changes made during the discussions; Clerk (add $2,000), Legislative (delete $12,724) and Library (move $16,000 from books to salaries/benefits) equaling $10,724 subtracted from the General mind. Porter urged people to buy locally and Williams urged the need to find something to diversity the economy -- the people need to decide what the future will be for the community. The work session ended at approximately 9:36 p.m. Not transcribed re aced b Carol L. Freas, City Clerk 01 APPROVED BY CO63NCI -4/7q/0 -03 C*t 4t4l--� __ -01 DATE 71TY CLERK