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HomeMy WebLinkAbout1980-06-12 Council Minutes - Special MeetingI 111 AGENDA KENAI CITY COUNCIL - SPECIAL MEETING JUNE 12, 1080 PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINGS 1. Ordinanco 577-80 - Adopting Annual Budget for PY-1080-81 2. Ordinance 580-80 - Setting Tax Levy for PY 1080-91 (Proposed Substitute) ADJOURNMENT b 1 f • f KENAI CITY COUNCIL. - SPECIAL MEETIN0, MINUTES JUNE 12, 1080 - 7: 00 PM KENAI PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE. A. ROLL CALL PreRent: Dick Mueller, Vince O'Reilly, Ed Ambarian, Ray Measles, Betty Glick, Ron Malden, Joss Ilall Absent: None Mayor O'Reilly noted two items of good news. Dow Chemical has invited Mayor O'Reilly and others to dinner Tuesday (Tune 17, 1980) to look at natural gas out of Prudhoe, Tesoro would like to moot with Mayor Gilman and Mayor O'Reilly Sunday (June 16, 1080) . AGENDA APPROVAL Mayor O'Reilly noted that at the request of Councilwoman Glick, there would be a reconsideration of Ordinance 873-80, Council- woman Glick explained they may or may not have to reconsider, based on the budget accepted. She would ask that it be inserted as B-2, so it it is necessary, it can be considered. There was no objection by the Couneff. Agenda was approved as changed. Mayor O'Reilly noted the Administration has asked for guidance regar4ing the auction to be held by Sally's Auction of the Airport gift shop.W 74*9rooseds•of the rentals ara deducted, the -balance goes to-tha 1er00e. Councilman Ambarian asked if the Mayor was con- ducting a poll. Mayor O'Reilly explained he was just asking for guidance. The Council had no objection to the auction. B. PUBLIC HEARINGS B-1 Ordinance 877-80 - Adopting Annual Budget for FY 1980-81 Mayor O'Reilly asked it the Council had any thoughts on how to handle the public input. Councilman Amberian said he thought it should be handled as a regular ordinance. There was no public comment. 11n `_ Ly ro a' � 0 l J"" aw_i i o n .J 60.4 4-1 4 t b c. i6/D 1 : a 't" .4,va � x � �y o I V, t�r+4 j � v� at r e-&we•3 4 r ; KENAI CITY COUNCIL, SPECIAL MEETING JUNE 12, 1080 Page 2 MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, to adopt Ordinance 077-80. MOTION, Amendment #I: Coun ,!,,V@an Malston s�equested the museum, a maintenance, $150rilould-be deducted from the personnel services fund for six months during the busy timo of tho year for personnel, the other six months it should not be funded. Also, if a security fence could be built, the museum could be closed in the winter. Motion passed unanimously by roll call vote, MOTION, Amendment: Councilman Ambarian moved to amend tho ordinance to change tho following positions: Legal Sooretary 8 Public Works Secy. 8 Animal Contr. Officer 11 Fire Marshall 17 Dispatcher 8 Equip. Oper. I 12 Equip, Oper, 11 13 Parks s Rea. Air. 17 Motion failed for lack of a second. MOTION, Amendment #i2: Councilwoman Glick moved, seconded by Councilman Measles, to amend the budget to increase the general fund appropriations (anticipated revenues) by $120, 000. Councilwoman thick said in order to oonsider another degrease by one mill, we will have to increase general fund budget by one mill & reconsider Ordinance 57"0 to rededicate interest income not being deducted to reserve interest fund, The main purpose Is to facilitate the one mill decrease to 9,9. Finance Director Brown said if we increase contingency from fund balance by $129,000, we do not have to roconsider Ordinance 573-80. If we rededicate - j interest income, that would remain the same and it's in expenditures, j or 10pAgt4- %o•- 4),Ati �j a s A�,, 1L ow S .fL1 :S f/. 1e1,0V641 ' n'&-1A44A-+&A !.lip tom► /JiNIY h H#-( zv_rv:aAs O n k..A b - 4M•r�H r .f�.� r A �I KENAI CITY COUNCIL, SPECIAL MEETING JUNE 12, 1980 Page 3 Councilwoman Glick asked Mr. Brown, we would still be legal all the way around? Mr. Brown replied yes. r'ouncilwomnn Glick said she wanted to take money from the projected fund balance. Mr. Brown explained Page 104 of the budget is what she wanted to change. After a short recess, Councilwoman Glick amended her amendment. MOTION, Amendment #2, Amended: Councilwoman Glick moved, seconded by Councilman Measles, to change her motion to read: Decrease the capital improvement reserve on page 104, currently $240,000 by $129,000. That would lot the balance be 0111,000. On page 3, decrease taxes by adding or decreasing $129,000. Then real current taxes, $1,054,804, down to $958,033. Real, prior - $45,369 to $41,206. Personnel, current - $193,160 down to $175,444. Oil, current - from $112,954 to $102,500; so that you have offsetting of the reduction and capital improvement reserves. This would facilitate a reduction in the mill levy. Mayor O'Reilly asked, he gathers that interest earned of $240,000 instead of the entire $240,000 going into capital improvement, you're going to put how much into capital improvements? Councilwoman Glick replied yes, leave a balance of $111,000. Mayor O'Reilly asked Mr. Brown for the amount of reduction. Mr. Brown replied one mill. Vice Mayor Glick took the chair. MOTION, Amendment #3: Mayor O'Reilly moved, seconded by Councilman Ambarian, for an amendment to transfer an additional $111,000 from interest earned In the same manner. Mayor O'Reilly explained, having struggled with the budget, he would like to offer this line of thinking: He can't agree with the budget at this time. He agrees with Councilwoman Glick using interest earned as mill reduction, except he'd use the entire $245,000 as interest earned. When the municipal assistance fund passed, the legislature included a letter of intent. One-third of the funds would ge to mill reduction ($48, 000) , add interest earned ($240,000), and the net of sales tax after add-ons made during budget and personnel increases. That would be as follows: W KENAI CITY COUNCIL, SPECIAL MERTINO JUNE 12, 1080 Page 4 Salon Tax $382, 000 (revenues) Add -On $178,000 (revenues) Conting. 50,000 (for purpose of range changes) Total $228,000 Minimum Personnel Adjustments: 2 Fire Dept. $75,000 1 Publ. Wks. 37,000 Total $112,000 The total in three major categories: 1/3 municipal assistance $46,000 Not sales tax 42,000 All interest earned 240,000 Available for m111 reduction $330,000 i Since the Council feels the money should be available for capital improvement reserve, he suggests: 2/3 municipal assistance $97,000 - State revenue sharing 141,000 putting $239,000 into reserve for capital improvements. The tie- ins is that the taxes would be tied into operating expenses, the mill rate will be net of such taxes loss operating expenses, 1/3 of municipal assistance fund and interest earned. The variable+ items that would go into tho capital reserve fund would be the 2/3 of the municipal assistance fund and the variable State rev- enue sharing level. He said he spoke as pursuesively as he could referring to the personnel adjustments. He thinks, in trying to arrive at a balanced decision, we should accept the responsibility } J the City's first and principle reason for being is protection of its citizens. He doesn't think we can offer a mill reduction without offering the citizens proper fire` protection and Public Works add- itional personnel, necessary VIA you see during the winter snow plowing and Break -Up. This budget will: a. Meet the needs of the City --= b. Provide the necessary range changes a. Provide adequate mill relief d. Develop additional capital reserves Councilman Ambarian asked what would be the final mill rate. i 4 •, I r r a KENAI CITY COUNCIL, SPECIAL MNI;TINO JUNE 12, 1080 Page 5 Finance Director Brown asked for a short recess to eOmpute the figures. After a short recess, Mayor O'Reilly said Mr. Brown had pointed out to him the intent of his motion can be made in a simpler way. MOTION, Amendment 0.1 Mayor O'Reilly moved , seconded by Councilman Ambarian , to add $111, 000 from interest income and not place it in capital improvement reserves and there would be not additions of $109, 000 to cover personnel changes. Mayor O'Reilly explained, this would allow the same mill rate reduction (2.0 mills) and would not allow for City capital im- provement reserve. He pointed out the basis of revenue sharing if the Governor signs the legislation - approximately $300,000 to the City. It is his intent to use that for a beginning base for cap- ital improvement reserve. The thought behind this is to tie our tax revenue to our operating expenses and to tie unascertainable sources of revenue such as municipal assistance fund, state revenue shar- ing to capital improvement reserve. This is in equity to the citizens of Kenai in that we're not taxing them over and above operating exp- enses for capital improvements that would be solely at the discretion of the Council but would not have to meet with voter approval of the citizens. We would accomplish a 2.0 mill rate reduction, add- itional of personnel changes, and the beginning of capital Improve- ment reserve, $50,000 from state revenue sharing, Councilman Ambarian asked Mayor O'Reilly to explain the $50,000 salary con- tingency. Mayor O'Reilly said using the net figure, he doesn't know if that would allow for continency reserve for range adjust- ment, other than what's presently in the budget. Finance Director Brown said the amendment as is does not allow - all of the $111,000 would be used up by these positions, lie pointed out there is a contingency already of $53,000 which is $24,000 larger than his- tory shows we need. Mayor O'Reilly resumed the chair. Councilman Mueller asked, 49vl&the interest include -rather than independent source of income - to add personnel? - -- t Vice -Mayor Chick took the chair. --� Mayor O'Reilly asked, can we - as a Council - continue to accrue m KENAI CITY COUNCIL, SPECIAL MEETING JUNE, 12, 1980 Page 8 interest income and put it into capital reserve. Councilman Mueller said it gees back to them as capital projeats in due time. All projects benefit all the citizens. Mayor O'Reilly said what the Council had to do when they enacted the additional salmi tax was the only way to develop funds. We are now in a different position. We will apparently now be in the position of front end costs, our bonds arc salablo. Rather than, take money accumulated by its citizens and hold by the City and put it into capital improvement reserve, the Council has the right to decide how the funds are used. It is not our position to act as a form of bank. Mayor O'Reilly resumed the chair. VOTE, Amendment f , Motion failed, with Councilmen Mueller, Measles, Malston, Mall, and Councilwoman (flick voting no; Councilman Ambarlan and Mayor O'Reilly voting yes. MOTION, Amendment ft4: Councilman Ambarian moved, seconded by Councilwoman Oliek, on page 103, to add a now code 6101 and calling it Salary Study Contingency in the amount of $23, 004 and reducing 8090 to $30,000, Councilman Ambarisn explained the purpose is to show the employees the Council is serious about the salary review. If changes era made, it will be retroactive to duly 1. Councilman Mueller asked wasn't this our intent at the work session? Councilman Ambarian replied his only purpose is in ease we have a new Council when the study is adopted, that personnel will know. VOTE, Amendment ft4: Motion passed unanimously by toll call vote. Mayor O'Reilly said on page 45, the Harbor Commission will come to Council with a grant application for funding. There will be changes but the total will not change. e2 _ VOTE, Amendment fi0, "Amended: Motion passed, with Mayor O'Reilly voting no, J E =- I O IU KENAI CITY COUNCIL, SPECIAL MEETING JUNE 12, 1080 Page 7 VOTE, Main Motion as Amended: Motion passed, with Mayor O'Reilly voting no. 8-2 Ordinance 573-80, Reconsideration. MOTION, Reconsideration: Councilwoman Glick moved, seconded by Councilman Malston, for reconsideration of Ordinance 573-80. Motion passed unanimously by roll call vote. MOTION, Amendment: Councilwoman Glick moved, seconded by Councilman Mueller, to amend Ordinance 573-80 as follows: In Title, 4th sentence down after Capital Improvements, she would add, "and to general fund operations" and than between the 3rd and 4th WHEREAS, she would insert another WHEREAS which would be, "WHEREAS, it would be necessary to dedicate the next $120,000 interest revenue to general fund operations. and ". So it carries down to the next WHEREAS. Then on page 2, under Section 730.015, Interest Revenuo-In the 8th sentence down after, "Requirements", there should be another sentence which would be, "The next $120,000 Interest revenue be Qedieated to general fund operations." Then continue with the sentence as it is, "Interest revenue remaining the above dedication requirement", add an "e" after "requirement", change remaining "is" to "are." VOTE, Amendment: Motion gassed, with Mayor O'Reilly voting no. VOTE, Main Motion: Motion passed, with Mayor O'Reilly voting no. B-3 Ordinance 580-80 - Setting Tax Levy for PY 1080-81 (proposed Substitute) MOTION: Councilwoman Glick moved, seconded by Councilman Measles, to adopt the substitute Ordinance 580-80, amending the mill KENAI CITY COUNCIL, SPECIAL MEETING JUNE 12, 1080 Page 8 levy to 9.9 from 10.9 and declaring an emergency. Mayor O'Reilly said we have all expressed our opinion, he will put a "you" on the budget to simplify his concurrence with the Council majority opinion. There was no public comment. VOTE, With amendments: Motion passed unanimously by roll tali vote. B-3 Ordinance 580-80, 2nd Reading s VOTE, 2nd reading. Motion passed unanimously by roll call vote. Mayor O'Reilly noted there would be a meeting in Washington U.C. re- garding Wetlands. Senator Gravel has asked for representation, The Mayor has suggested Councilwoman Glick. Ile felt it would be beneficial to the City and responsive to Senator Grav©i, ADJOURNMENT: Meeting adjourned at 8: 30 PM. .i et Whelan, City Clerk s t �f 4 9 l 9