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HomeMy WebLinkAbout2002-04-09 Council Minutes - Budget Work SessionBUDGET WORK SESSION APRIL 9, 2002 7:00 P.M. COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS, PRESIDING Council Present: Williams, Porter, Bookey, Moore, Bannock, Jackman and Swarner Staff Present: Freas, La Shot, Graves, Jankowska, Craig, Cronkhite, Kornelis, Frates, Walden, Semmens, Feltman, Morris, Wichman, Langfitt, Johansen, Baktuit, Kopp, Nyren, Snow. Others: E. DeForest, J. Krein, R. Gease, R. Ross, P. Thompson City Manager Snow reviewed the her presentation letter included with the draft budget and explained, when developing the budget, serious considerations were given to maintaining"a. good balance between public service and how to maintain those services. Interest revenues were projected to be substantially down from historical averages which will impact the General and Airport Funds the most and both those funds were showing substantial budget deficits as a result. Snow added, this was a status quo budget with an overall one percent increase. No property tax increase was included or any significant increases in user fees, except for ice rental fees. She noted, the budget also reflected a $85,000 health insurance cost increase due to a projected rate increase of 12% and the addition of one new covered position; Fire Department overtime increased $15,000; and new and upgraded positions included additional hours for the Clerks Department part-time position, combining the temporary street department and temporary dock assistant to one full- time position to be split between the street (eight months) and dock (four months), and increasing the library summer gardener position a total of 20 hours. Finance Director Semmens offered a budget overview presentation including all the funds, and noted the following: • sales tax was projected at $4.2 million (optimistic); • revenue sharing and safe communities funding would be the same; • fish tax was projected to decrease; • reappraisal of properties by the Borough increased assessed values and it was now at approximately $20 million, which he believed was closer to the real value; • overall state revenue was projected to decrease; • interest revenue was projected at $400,00 for the next year; • it is believed the interest rates would come back up in 2004. Semmens also noted this budget was a tighter budget as the lapse had been cut, and he believed there would be a larger demand on the contingency in this next budget because it was a tighter budget. Water/Sewer Find -- Semmens stated there would be demands on the balance ($928,000) to match DEC grants. BUDGET WORK SESSION APRIL 9, 2002 PAGE 2 Airport Land System -- Though this fund was impacted by the decline of interest rates and doubling of insurance costs due to 9 / 11, it was in good shape and no problems were anticipated. Boating Facility -- The revenue was above what was anticipated. Discussion followed regarding public versus private operation of the boating facility. Semmens noted, there could be some cut in employee costs if leased out, however liabilities would have to be investigated. It was suggested the Harbor Commission investigate the advantages and disadvantages of leasing the dock facilities. Bookey stated he believed it would be a good idea for the Commission and council to investigate private operation of the facility. ACTION: ADMINISTRATION IS TO REQUEST HARBOR COMMISSION TO EXPLORE PRIVATE OPERATION OF THE FACILITY, LIABILITIES, ETC. Senior Citizen III Fund -- Semmens stated it was becoming more difficult to provide the same level of senior care with just grant funding and that impacts from legislative cuts to the state budget won't be known until June. Senior -- Borough Grant Fund -- A deficit is expected and the fund does not need to balance. Senior Title IV -- This fund has to balance and it is state grant funded. Debt Service Fund -- The debt is going down. Semmens recommended revenues received from sale of Inlet Woods properties be placed in this fund. Airport Terminal -- Semmens reported this fund was in good shape. Congregate Housing -- Semmens noted this fund was pretty consistent, although it was impacted by the decrease in interest rates. It was suggested a comparison of rents from around the state be made for further discussion later. ACTION: ADMINISTRATION GATHER RENT INFORMATION FROM OTHER AREAS OF THE STATE, COUNCIL CONSIDER INCREASE IN HOUSING RENTS. BREAK TAKEN: 8:05 P.M. BACK TO ORDER: 8:19 P.M. Clerk -- It was noted, most of the increase in the this budget was due to salaries and benefits for the part-time assistant. The request of four additional hours a week for the assistant was discussed. Clerk Freas noted the request was to add office time when the assistant attends commission meetings at night and to allow better coverage of the office when the Clerk is out of the office at outside meetings, lunch, etc. as it is harder to cover the office with the Clerk's office moved downstairs in city hall. BUDGET WORK SESSION 'APRIL 9, 2002 PAGE 3 Discussion followed in regard to the additional hours request. Comments were not to increase the hours as it had not been the intention to have the position become full time; the total picture of impacts in moving the Clerk's office to the downstairs had not been represented; preference would be to raise the COLA instead of adding hours. ACTION: REMOVE ADDITIONAL FOUR HOURS PER WEEK FOR DEPARTMENT ASSISTANT. Visitors Center: Director Ricky Gease reviewed the budget with council and noted their request to the city was status quo, which includes a $70,000 management contract with the KVCB and $3, 100 request for minor equipment including a digital camera. It was explained, this equipment is used for running the facility and was part of the contract. The camera would be used to enhance the Center's website and promote the facility. Gease also noted they were working with the Chamber to develop a new visitor map as part of the "Get Hooked on Kenai" program. Gease also noted their savings account had a balance and they were exploring other areas of funding. Bannock stated he did not support the city's purchase of an overhead projector for the Center and did not support the city's funding of a digital camera. He added, he believed the city was the Center's number one supporter and that it was inappropriate for them to request additional funds for their events. Gease stated that request was an oversight. They would now be charging an admission to the art shows during the summer months and they request donations of visitors during the summer months. The walking tour brochure was also discussed and it was noted the brochure helps to get people out and walking through Old Towne, seeing activities available, and encouraging people to stay in Kenai. Bannock stated he believed the costs for the brochure should come from the KVCB and not the city, however the consensus was to leave the $2, 100 in the budget for the brochures. ACTION: REMOVE $3,100 IN SMALL TOOLS FOR DIGITAL CAMERA., Legislative: Council reviewed the donations included in their miscellaneous funds. Swarner stated her wish to delete the Alaska Jr. Miss donation of $500 and Bookey stated he wanted to reduce all the donations to $500 except for ALPAR, leave the $5,000 for the employee appreciation dinner. Review continued and the following changes were made: Miscellaneous KCHS Graduation party $ 300 Same Kenai Alternative School $ 300 Same ALPAR litter Control $1,000 Same Boy Scouts/Flags $ 300 Same BUDGET WORK SESSION APRIL 9, 2002 PAGE 4 } Kenai River Festival $ 300 Same KCHS Hockey Booster ad Remove KCHS Basketball/football ad $ 200 Same Peninsula Winter Games Remove (in -kind contributions) United Way Match $ 500 Reduce from $1,000 Youth Court Support Contact and request a letter to explain their needs or come to budget work session to discuss. Industry Counts $ 500 Same Industry Breakfast $ 500 Same Kenai Peninsula Marketing 8s Tourism Remove Economic Development Forum Remove Alaska Junior Miss Remove KVCB Art Exhibit Reception Remove Holiday Cards Remove City Pins $12000 Increase from $890 Presentation gifts $ 750 Same Employee Appreciation Dinner $52000 Same Volunteer Appreciation Dinner $ 800 Same Plants for Legislators $ 150 Same � Other $2,500 Decrease from $3, 100 Dues and Publications AML Dues $6,645 Same (Bookey expressed concern council should be more active to get best benefit from dues.) Chamber $ 460 Same NLC $ 890 Same National Civic League Remove Sister Cities Remove Alaska Conf. Of Mayors $ 100 Same Publications 8v miscellaneous $ 225 Same Printing and Binding CIP brochures, etc. $ 900 Same Newsletter $3,000 Same ACTION: CHANGES AS LISTED. NO OTHER CHANGES. Council reviewed the letters of request included in the packet. Actions were as follows: Central Area Rural Transportation -- Requested $25,000. Council denied. Art Guild -- Request for $2,000 was made by Marsha Beauchamp as seed money. The will contact other private industry, etc. for additional funding. It was noted, the Y p rY� g BUDGET WORK SESSION APRIL 9, 2002 PAGE 5 Art Guild leases the building from the city for $1 and they maintain the building. Because of other capital improvements that will need to be made to the building in the future, administration was requested to do an analysis of the building. The $2,000 donation was approved. ACTION: DENY CARTS DONATION. APPROVE ART GUILD DONATION OF $2,0000 Legal: City Attorney Graves reviewed the budget with council and noted his overall budget was reduced. ACTION: NO CHANGES. City Manager: It was noted this budget was reduced from 2002. The transportation budget was discussed and the amount of travel between the city manager and her assistant was discussed. Council reduced the transportation budget $1,000. ACTION: REDUCE TRANSPORTATION $1,000. NO OTHER CHANGES. Land Administration: ACTION: NO CHANGES. Finnnrp- It was noted the health insurance costs increased the budget; small tools was reduced; an increase in professional services regarding GASBY 34 implementation. ACTION: NO CHANGES. Non -Departmental: Snow noted, the purchase of copy machines was not in this budget as the funds were remaining in the current budget. She asked if council wanted to purchase the copiers in the current year or next fiscal year. Discussion followed and it was noted Frontier Services would be able to piggyback copiers for the city on the school district's contract. It was also noted, whether to do a piggyback or not was a policy call for council's determination. An analysis was done by Semmens to compare costs for lease or purchase and it was found to be cheaper to purchase the machines. Council determined to make the purchase in the new fiscal year and administration was requested to prepare a report for council and discuss the matter after July 1. Semmens also noted he anticipated increases in insurance, however he had not requested bid proposals at this time. BUDGET WORK SESSION APRIL 9, 2002 PAGE 6 ACTION: INCLUDE $30,000 IN BUDGET FOR PURCHASE OF COPIERS. NO OTHER CHANGES. The work session ended at 10:00 p.m. Notes prepared by: Carol L. Freas, City Clerk