The URL can be used to link to this page

Home My WebLink About2002-04-11 Council Minutes - Budget Work SessionBUDGET WORK SESSION APRIL 11, 2002 7:00 P.M. KENAI COUNCIL CHAMBERS MAYOR JOHN J. WILLIAMS, PRESIDING NOTES Council Present: Porter, Jackman, Bookey, Williams, Bannock, Swarner, and Moore Staff Present: Freas, Snow, Semmens, Graves, Frates, Craig, Jankowska Others Present: E. DeForest, M. Nelson Discussion opened with Williams discussing the information included in a market research report on the Central Peninsula General Hospital. Williams encouraged all council members to read the report and gave it to Clerk Freas to house in her office. Williams added, representatives from the hospital would be included on the May 15 council meeting agenda for them to discuss their plans. Additional Work Session: Bookey stated he was very frustrated with the budget this year and was looking for ways to service the budget deficit. He noted, council had not set a new direction for administration to reduce the budget other than to hold it at status quo; in two nights they had only cut approximately $6,000 out of the budget; talked about cutting travel budgets, digital cameras and deferred maintenance on buildings, and then started a new project in snow removal. The budget is still out of balance at a projected $539,000 and the budget reserve is at $4.4 million. He suggested the council needed to seriously restructure programs and give administration the task of what is the best direction for the city to go in to balance the budget. Bookey suggested the following ideas to consider: • review the Visitors Center program; • investigate dock privatization program • library • recreation • health insurance • all city fees Bookey suggested setting a fifth work session to review these items. He added, he believed the budget would get passed the way it was presented. Council needs to develop ideas and give direction for the administration to make it happen. He added, he would like to discuss policy and give direction prior to reviewing the draft budget, perhaps in January, in order for administration to prepare the budget with whatever guidelines are given to them by council. He added, he believed it was council's responsibility in regard to the budget and it was the only fair way to gain confidence of the taxpayers to ever have a bond issue, etc. BUDGET WORK SESSION APRIL 11, 2002 PAGE 2 1 Moore stated he agreed and noted, council requested administration to bring a zero - increase budget and that's what they did. He added, he objected to council reviewing the budget line by line, picking out purchases and questioning whether trips should be taken as it was micromanagement at its worst. He added, whether travel needs to be cut, laundry done in the city, etc. needs to be policies set prior to administration's preparing the budget, not after. Williams agreed and added, council needed to discuss long-range policy and referred to pages 17 and 18 of the budget document, noting it was council's decision last year to stay at a 3.5 mils this year and a reserve at $4.4 million, and an operating deficit at $329,000. The projection for 2004 includes an increase in the mil rate to 4.5, which would keep the reserve above $4 million. What went wrong with the long-range plan was the interest rate decreases. He suggested either council could live with the current long-range plan with the interest rate decreases or change the mil rate. In order to make a large change in the budget would be to readjust the revenue source and in order to cut the draft budget in the amounts required, would be to remove big pieces of equipment, employees or completely eliminate the maintenance program. Bookey disagreed and added, some issues had been discussed in the past and need to be discussed again, i.e. the Visitors Center, dock, close the library on Sundays, change fee structures, etc. He continued, raising taxes is not always the answer as it does not give the taxpayers confidence, and bond issues (for a new shop, etc.) fail. Discussion followed regarding determining policy, etc. continued. Council decided to hold another work session and set it for 7:00 p.m., May 7 in the council chambers. The issues to discuss at the work session would be policy setting, budget, review of fees, mil rate increase, etc. Snow stated she would like to begin budget season with a work session early in the year. ACTION. HOLD POLICY WORK SESSION, 7:00 P.M., MAY 7, 2002 IN THE COUNCIL CHAMBERS. BREAK TAKEN: 8:06 P.M. BACK TO ORDER: 8:10 P.M. Boys 8. Girls Club: Frates reported a meeting was held to discuss combining the Boys 8, Girls Club summer recreation programs with the city's. His research showed it would be more cost effective to continue the city's program. Though the Club is able to offer unique programs, etc., they have larger groups and there is a cost to the participants (sponsorships are available for those who cannot afford the fee) , and their program continues into the evening which would tie up use of -the Recreation facility from 4-6 p.m. It was noted, there is concern the Club program will move out of the city as their lease at the elementary school would terminate in the next several years. BUDGET WORK SESSION APRIL 11, 2002 PAGE 3 Bookey stated his strong objection to discussing this matter at this time, as not all the council was included in the discussion/meeting and suggested the matter be given to administration to make a recommendation and brought to council as a discussion item on. an agenda. Frates stated he would need a decision whether there was interest in combining this year's summer program as he would need to begin interviews for hiring the summer crew in the next week. Snow stated staff did not intend to combine the programs this year, but to put the issue out for discussion with council and plan the possible combination for the future. Consensus of council was to bring the issue to the May 7 meeting, proceed with the city's program separately this year, and take no action in combining the programs this year. Frates noted, they could incorporate some pilot activities during this year's program and council agreed. ACTION: DISCUSS THE MATTER FURTHER ON MAY 7; NO COMBINING OF THE TWO PROGRAMS THIS YEAR; DISCUSS FOR NEXT YEAR'S BUDGET; BEGIN PILOT ACTIVITIES BETWEEN THE TWO PROGRAMS DURING THIS YEAR'S SUMMER PROGRAM. Multipurpose Facility: Council reviewed information included in the packet received from DR Ice, the current contractor at the facility, as well as information alternatives suggested by administration. Comments included: • Frates preferred Alternative No. 2 (full-time employee splitting time between ice maintenance, etc. during the winter and beautification program in the summer. • Moore stated he believed it better to contract as you are guaranteed good ice and experience and there's only $4,000 difference. • Bookey agreed but wanted to increase the ice rental to $10 5 / hour • Bannock agreed with Alternative No. 1, but wanted to change the closure time. ACTION: PROCEED WITH ALTERNATIVE NO., 1 AND ICE RENTAL AT $85/HOURO RPr.ren ti nn It was reported a concession stand would probably be ready for next season as plans, cost estimates, materials, etc. are going forward (work being done by KPHA and volunteers) . It was also noted, there is a need for two additional dressing rooms and Williams suggested council could consider donating materials to build an enclosure between the two buildings. It was decided, this matter could discussed further at the May 7 work session. ACTION: NO CHANGES TO THE BUDGET. DISCUSS THE MULTIPURPOSE FACILITY AND ADDITIONAL DRESSING ROOMS ON MAY 7. BUDGET WORK SESSION APRIL 11, 2002 PAGE 4 Parks: Frates noted there was an increase to communications to cover phone lines at the multipurpose facility. ACTION: NO CHANGES. Beautification: Williams asked council to consider adding $32,000 for an underground water system at Leif Hansen Memorial Park. The matter was discussed and the consensus was it was too expensive, watering could be done in-house, and the cost would not be included in the budget. ACTION: NO CHANGES AND NO INSTALLATION OF WATER SYSTEM AT MEMORIAL PARK. The work session ended at approximately 9:47 p.m. Notes prepared by: Carol L. Freas, dity Clerk