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HomeMy WebLinkAbout1978-05-31 Council Minutes - Special Meeting-- ' - -1 11 I M KENAI CITY COUNCIL - SPECIAL MEETING MAY 31, 1978 - 7:00 P.M. NATIONAL GUARD ARMORY MAYOR VINCENT O'RZILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Phillip Aber, Edward Ambarian, Betty Glick, Ron Malston, Vincent O'Reilly, and Dan Whelan Absent: Tom Ackerly B . PUBLIC HEARING B-1: Ordinance 406-78. adontina the Annual Rudeet PY 1978-1979 Mayor O'Reilly read Ordinance 406-78. "An ordinance of the Council of the City of Kenai adopting the Annual Budget for fiscal year commencing July 1, 1978 and ending June 30, 1979 and setting the tax levy for said fiscal year. WHEREAS, it is a requirement of the Code of the City of Kenai that the City Council not less than 10 days prior to the end of the fiscal year, adopt a budget for the following fiscal year and make an appropriation of the monies needed therefor; and WHEREAS, it is a requirement of law that the rate of levy for the property tax be set annually. Now, therefore, be it ordained as follows: Section 1: A tax in the amount of 14.14 mills is hereby levied against all taxable real and personal property in the City of Kenai for the fiscal year commencing on the lot day of July, 1078 and ending on the 30th day of June, 1979. Section 2: That certain document entitled "City of Kenai 1970-79 Annual Budget" which is attached hereto and incorporated herein by reference, is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 1978 and ending June 30, 1979, Section 3: The following sums of money are hereby appropriated for the operations corporate purposes and objects of the City of Kenai for the fiscal year commencing on the lot day of July, 1970 and ending the 30th day of June, 1070 to defray all expenses and liabilities of the City during the fiscal year to be expended con- sistent with and subject to the restrictions, procedures and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 2 hereof: General Fund - Operating Budget - $2,470,489; Restricted Reserve/Capital Improvements - $362,500; Restricted Reserve/Contingency - $30, 000; Airport Terminal Fund - $119, 390; Water a Sower Fund - $330, 000; Airport Land System Fund - $165, 306; and Debt Service Fund - $549,602." MOTION: Councilman Ambartan moved, seconded by Councilman Whelan, for adoption of �- Ordinance 406-78, adopting the annual budget for fiscal year commencing July 1, 1978 and ending June 30, 1079 and setting the tax levy at 14.14 mills. Mayor O'Reilly opened the hearing to the public. a, - i Special Meeting - Page 2 May 31, 1978 Mr. Max Swearingen - submitted a memorandum to the Council from the Kenai Recreation Council roquesting Council consideration of a full-time recreation program for the City and the appointment of a full-time recreation director to supervise both the recreation programs and the maintenance and development of the City parks. Mr. Swearingen stated that the desires of the Recreation Council and the citizens of Kenai is indicative of a program that would aid in the coordination of activities and use of the City parks (Little League, etc.) , coordinate with school officials for use of public school facilities, seek Foderal/State funding, solicit donations of materials and labor, implement and direct sominars relative to all aspects of recreation -- the list is endless and the program would benefit young and old alike in the community. Mayor O'Reilly advised Mr. Swearingen that the City Administration had, at the request of a member of Council, prepared a resolution to expand the recreation service area to include Kenai, Soldotna, etc. Mr. Swearingen stated that Soldotna, for instance, have raised their recreation budget to $54,000 and most likely would not wish to participate nor would North Kenai. Mr. Swearingen further stated that the Recreation Council to asking for a total budget of $48, 000, of which $27, 000 is the State Revenue Sharing contribution. Mrs. Wanda Carlson - Mrs. Carlson supported a full-time recreation director as there is little to offer in the way of recreation for the youth of our community J� and a full-time program would alleviate some of the problems that now exist. Mrs. Irene Bandol - advised that as President of the KCHS Rooster Club she too was in favor of a full-time recreation program and director as the schools in the area only provide the opportunity for a limited number of young people to participate in sports and a full-time recreation program within the City would enable all who wished to do so to take part. Mr. Richard Morgan - stated that as a former member of Council, particularly during the time the Council raised the mill levy 4 years ago, Mr. Morgan reminded Council that the citizens had been promised that as soon as the City was financially solvent, the taxes would be lowered. Mr. Morgan stated that in adding more personnel, the City was returning to the same problem areas that it experienced prior to the financial problems incurred. Mr. Morgan stated he very much disagreed with maintaining the present tax structure at the expense of the citizens and in comparison with other cities in Alaska, Kenai is still among the highest. Mr. Morgan further commented that comparisons to cities outside Alaska were not realistic as though the tax structure was more comparable, the services offered for outnumbered what Kenai provided. Mr. Morgan urged the Council to seriously consider the balance between the different departments in the City and what was told to the citizens when the tax levy was increased. - Mr. Tom Waggoner - also in attendnaee at the public hearing four years ago J when the citizens were promised that the City would make every effort to decrease taxes upon financial stability. Mr. waggoner urged the Council to Operate on a "maintenance budget". Also, Mr. Waggoner stated that he too r._z� r • Wiz, . �nr='St+ r. -. i Special Meeting - Page 3 May 31, 1978 supported a full-time recreation program as the best way to spend the City's money would be in providing recreation for the young people as the youth of the community are our boot assets. Mr. Waggoner advised that the area In which he resides, Thompson Park, has only one park and it is a poor excuse for a park with only one piece of playground equipment and an abandoned junk vehicle. There was no further public comment. Councilwoman Glick, with Council concurrence, stated that tthere were many individuals who had not presented testimony and inquired if the public were in fact, satisfied with the level of service the City provided? Also, does the public feel the City should increase the police and fire personnel or would they prefer a decrease in taxes rather than increased personnel, etc.????? Mr. Roger Mocks stated that he had not come forth before as Mr. Morgan expressed his feelings and again reiterated that four years ago the City had increased the mill rate, however, had promised the taxpayer that as soon as financially possible, the taxes would be out. Mr. Jerry Carlson stated that he had been involved with youth in the community for several years and the groups themselves (Little League baseball, football, etc.) have had to maintain the fields themselves. Mr. Carlson requested Council consideration of a full-time recreation program and director. Mr. Les Bergen - stated that he too fully concurred with statements of Dick Morgan and would urge the City to "hold the line" and give the tax break promised four years ago. Mr. Jim Hamilton commented that if the budget were to be cut, the City should look at what services would be hurt. Mr. Hamilton stated that in his opinion the police force is undermanned and the City should not wait until someone is hurt or killed in the police or fire departments because of not enough personnel for back up, ate. Mr. Hamilton stated that he felt the City should use the surplus funds to build up the areas of service and provide equal service to all as everyone is taxed equally in the City. Mrs. Jo Ann Elson stated that she has resided in an area adjacent to the City limits since 1988 and this is the first year that her roads had been graded and oiled -- other than this, she receives no services except for snowplowing. Mrs. Elson stated that she enjoyed the small services she does receive, however, if additional services are to be provided, would request the Council consider the outlying areas to receive some additional service. Mrs. Elson stated that her one area of concern was police and fire protection in that if called upon would hope another emergency would not occur simultaneously because of the staffing problems. J I C U 1 Special Meeting - Page 4 May 31, 1078 Mrs. Grace Shook stated that she supported a full-time recreation program; however, if the City were to implement such a progrom,that it be on -going and not only for this year. Mrs. Lillian llakkinen - stated that this was the third year that she was before Council requesting that the tax levy not be lowered as the cost of living, has increased and so has the cost in operating the City. Additional services are direly needed and Mrs, fiakkinen requested that the additional funds be used to provide those much needed services. Mr. Ernie Knaekstedt requested that the taxes be lowered as promised four years ago. Mr. Robert Bergen - Mr. Bergen advised that though he did not reside within the City he owned property as well as held two City Leases and, as a taxpayer in the City of Kenai would request Council inclusion of a City Engineer .to aid contractors in inspection services, etc. Mr. Tom Waggoner - stated he also disagreed with the City oiling the roads as it has increased the cleaning of carpets. Mr. Waggoner inquired if the City had a permit from the DEC and was advised by Administration that it did. There was no further comment. Councilman Whelan stated that though it appears the budget has been decreased in fact it was not duo to the transfer of $215, 000 which constitutes an additional two mills towards the budget. Councilman Whelan stated that he personally felt comfortable with the figures presented at the last work session. MOTION - AMENDMENT Councilman Malston moved, seconded by Councilwoman Glick, to amend the motion for adoption to lower the mill rate by 2 mills, re -adjust the $81,927 out of revenues, and delete the proposed new positions as follows: 3 in Fire Department, 2 in Police and part-time employee in library for a total amount of $194, 000. After considerable Council discussion, with consent of second, Councilman Malston withdrew his motion. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, to amend the motion for adoption to lower the mill rate to 13.25, delete one proposed police position, delete 1-1/2 proposed fire positions and the part-time library position for a total of $03,204. i i r4 �r Special Meeting - Page 5 May 31, 1978 Councilman Ambarian stated that he felt the 14.14 mill levy was a good compromise and with the proposed mill levy set as such, the City could provide additional services. Councilman Ambarian stated he objected strongly to any of the proposed cuts in new positions, expecially the part time librarian as the library is one City service that is utilized by many - the Council must remember that the population over the past four years has increased tremendously and the City must now provide many additional services as well as cover area,p across the river. Councilman Ambarian further commented that during the entire work sessions on the budget, there was no public comment. Councilman Ambarian also pointed out that the Council had made many strides in such areas as eliminating ambulance billings a library card deposits, additional staffing in the Animal Control facility, and so forth. Councilman Ambarian further stated that he was aware of the areas of required service which the City is not providing, however, the Water/Sewer System is self supporting from the users themselves. Councilman Ambarian stated that he felt, therefore, the budget as proposed (without the amendments) as 14.14 mills would be fair and equitable and would vote against the amendments. Councilman Whelan stated that with the budget itself and with the amendments the Council was still leaving in five new positions. Councilman Whelan further commented that the City will be building up the reserves for the next year and the $215,000 transfer from general fund will not decrease but will increase service -- the Council must come to a compromise. Councilwoman Glick concurred that the City will be increasing services, however, should build up in steps -- the Council has given the Police added compensation and added additional personnel in the City. Councilwoman Glick further stated that at the same time the Council has deleted ambulance billings and library card deposits but at the some time an ordinance is up for hearing j at the next regular meeting increasing the water/sewer rates. Councilwoman Glick stated she too felt the Council must compromise and not give "everything in one year and out back the next". I MOTION: Councilman Ambarian moved to amend the amendment to add the part-time librarian position and one-half fireman position and adjust the mill rate accordingly -- 13.49. i Motion died for lack of second. Councilman Whelan commented that with the 13.25 mills, the librararian position may be covered as the decrease left an excess in the amount of $10, 503 -- Finance Director Kinney concurred. MOTION - AMENDMENT Councilman Whelan moved, seconded by Councilman Malston, to amend the - I amendment to add the part-time library position to the budget. Mayor O'Reilly requested that Vice Mayor Whelan assume the chair. V !" Special Meeting - Page 0 May 31, 1978 Mayor O'Reilly stated his method of evaluating was tentatively arrived at 14.14 mills. Mayor O'Reilly advised that the additional requests for personnel wore justified by the individual department heads. Mayor O'Reilly advised that he evaluated the proposed budget and increases in personnel as to whether or not they wore necessary, desirable services (recreation, building inspection, better governmental facilities), and, affordable. Mayor O'Reilly advised that as the City is not bondable, revenue sharing funds are having to be used to off -set the mill rite. Mayor O'Reilly stated that business is continuing to move into the City, construction of residences and multi -family dwellings continue to come into the City. Mayor O'Reilly advised that the major area of complaints he receives is not the high taxes but the lack of service -- the major source of dWoontont is the disparity between the Borough and the City's taxes as some 6-8 million dollars that comes out of the Borough goes directly to Juneau and not to the cities. The Council has worked diligently to come up with some type of reduction and have done so with a 6% decrease in mill rate. it also appears that some tax relief will be coming from the Borough level and Mayor O'Reilly stated that he would, therefore, vote against the proposed amendments and would recommend that Council stay with the proposed budget of 14.14 mills as presented tonight and adopt Ordinance 406-78 accordingly. Mayor O'Reilly assumed the chair. 14 Councilman Aber stated that he too would not support the amendments and commented in working with the City previously and receiving many complaints, it appeared that the majority of taxpayers in the City would prefer better maintenance, better service and far loss complaints about high taxes would be received if the City would provide the better services. Councilwoman Glick stated that the public comments during the hearing were indicative of the citizen's desires and Council could not ignore these requests, Councilwoman Glick stated that she would agree that most of the complaints received were Public Works related, however, the Council did not grant most of the requests of the Public Works Director for additional personnel. Councilwoman Glick stated that comments relative to relief from the Borough on taxes have no bearing on the City's budget and proposed mill rate, Councilwoman Glick stated at the Work Sessions It was noted that Kenai had a fine Police Dept, but it was felt additional police officers would not increase the level of service. Also, regarding the fire department, Councilwoman Glick stated she had inquired about the volunteer program but had not yet received an answer to her questions, Volunteer programs which would aid in staffing the departments, appear to be in a situation wherein U volunteers are not to be paid, they don't wish to continue in the programs. Councilwoman Glick stated that she felt the taxpayers realize Council is trying to make adjustments but these adjustments must be done "one step at a time". r 0 V Special Meeting - Page 7 May 31, 1978 Councilman Aber stated that he agreed that everything the City wanted to do can- not be done at once, however, the City is losing ground in some areas such as replacement of equipment. Councilman Aber stated that he felt the citizens would have less complaints about taxes if they were receiving more for their money. Councilman Aber stated that the Council must look ahead and plan for the future and would recommend not reducing the mill rate and placing the monies in a special fund for specific utilization. Councilman Whelan reiterated his points that t'.',e budget has been increased even with a 13,26 mill rate proposal. QUESTION - AMENDMENT TO AMENDMENT (Part-time Librarian Position) Passed by roll call vote with Councilmembers Aber and O'Reilly voting no. QUESTION - AMENDMENT AS AMENDED Failed by roll call tie vote. Voting yes; Glick, Malston and Whelan. Voting no; Aber, Ambarian and O'Reilly. QUESTION - MAIN (Adoption of Ordinance 406-78) Failed by roll call tie vote. Voting yes; Aber, Ambarian and O'Reilly. Voting no; Glick, Malston and Whelan. MOTION: Councilman Ambarian moved, seconded by Councilman Aber, for adoption of Ordinance 406-78 and by deleting one position in the Fire Department and lowering the mill rate to 13.8 mills. Motion failed by roll call tie vote. Voting yes; Aber, Ambarian and O'Reilly. Voting no; Glick, Malston and Whelan. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to table the annual budget as the Council appears to be in a stalemate position, and call for a Special Public Hearing on June 14, 1978 in order to present the mill rate for the City of Kenai to the Peninsula Borough Assembly by June 15th, Motion to table failed by roll call tie vote. Voting yes; Glick, Malston and Whelan. Voting no; Aber, Ambarian and O'Reilly. Council inquired U the matter were recessed until June 14th, would the City be within the legal boundaries to submit their mill rate to the Borough? Assembly President Jo Ann Elson was present in the audience and advised that the City had until June 15th to submit the mill rate to the Borough. a I w 1 • `I i Special Meeting - Page 8 _•" May 31, 1076 MOTION: Councilwoman Glick moved, seconded by Councilman Malston , to recess the Special Meeting concerning the propcsod annual budget of the City of Kenai for the fiscal year 1976-79 and setting the tax levy, until Wednesday, June 14th, 5:00 p.m. in the National Guard Armory. Motion to recess passed by roll call vote. Voting you; Glick. Malston, O'Reilly and Whelan. Voting no; Aber and Ambarian. The Special Meeting of the Kenai City Council recessed at 10:00 p.m. Respectfully submitted, Sue C . Peter, City Clerk R I 1 7 I or — COUNCIL M E INC OF Pi1�Rt. -IL HRARINQ - 5-3I-78 WITYIN V" MODE, " VA FAMA WAVAN I �l111I1L1+ f�Lll�r■■��■r��■�■ ■�■fir■�■■■■��■■���■ �omm��u�w��■moo■■��