Loading...
HomeMy WebLinkAbout2011-05-09 Council Minutes - Budget Work SessionBUDGET WORK SESSION MAY 9, 2011 6 :00 P.M. CITY COUNCIL CHAMBERS AGENDA ITEM 1: BUDGET REVIEW a. Changes to Health Care (continuation of 4/19/2011 discussion) b. Review of Budget by Department ITEM 2: SCHEDULE ADDITIONAL WORK SESSION(Sj ITEM 3: ADJOURNMENT BUDGET WORK SESSION MAY 9, 2011 6:00 P.M. CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESIDING NOTES Council present: J. Moore, R. Molloy, B. Gabriel, R. Marquis, T. Bookey, P. Porter Staff present: C. Freas, E. Hicks. M. Joiner, L.Barrett, K. Romain, M. Nussbaum, K. Lyon, N. Carver, R. Adams, M. Landry, M. Tilly, R. Koch, B. Prates, M. Kebschull, G. Sandahl, D. Ross, J. Dye, S. Joy, T. Carver, C. Lehi Mayor Porter opened the work session at 6:00 p.m. and suggested anyone wishing to speak to any of the topics, would be given three minutes in which to do so. There were no objections from Council. ITEM 1: BUDGET REVIEW 1 -a. Changes to Health Care (continuation of 4/19/2011 discussion) Referring to information presented, City Manager Koch reviewed changes in the health care program with regard to the latest plan received (including employee share of annual deductibles, employee maximum out -of- pocket limits, premium comparisons, deductible comparisons, cost increases to employees and other health care plan changes/ requirements) . Gus Sandahl, Police Chief -- Gave a brief description of the wellness program plans for the City. Marilyn Kebschull, City Planner -- Stated her support of the newest program, adding she believed the City and the program were fair and equitable. Earl Hicks, Airport -- Stated concerns of how the program changes were presented; felt employees were all paying for insurance; health insurance was part of the employment package; and, if the ordinance would be amended (regarding single employees not paying for insurance), then there would be no protection from councils raising employees' portion of health care costs. Nancy Carver, Planning -- Stated she believed employees were fortunate, thought the proposal was fair, and support Administration's recommended health care package. Matt Landry, Airport -- Stated he believed the health benefit was a part of his salary and requiring employees to pay more was a decrease to his salary. A long discussion took place by Council during which, comments included: • It was understood, the current proposal from Etna would be its last unless Etna revisited the program later on. • Did not support an amendment to the Code. COUNCIL WORK SESSION MAY 9,2011 PAGE 2 • Believed a lower employee -pay program was more attractive for recruiting employees. • Cautioned doing direct comparisons with other municipalities as some had collective bargaining. • Did not support Administration's suggestion to amend the Code and, thought the increase to employees was too much. • Today's costs for premiums were different than in 2003 when employees were not paying for anything; health insurance problems would not go away; and supported Administration's proposal. • Suggestion Council could develop a plan to address health insurance every year. • Agreed consistency was a good goal; reluctant to amend the Code; felt the S20,000 cost to pay for the single employee was not a large cost; and, felt the cost of the wellness program would be money well spent. • Believed each employee should contribute something because it had become cost - prohibitive for citizens to pay. • Residents and taxpayers needed to be considered when making the choice. • Supported the Code change and felt it was a fair plan. • Changing the Code would be big change in the employee package, which was a long- standing policy, and it deserved larger discussion, and encouraged having the discussion over the next year. Council Member Bookey presented his suggested plan which would provide for the employees to pay 7.14% and the City paying the remainder. A brief discussion followed, with comments including the fact Bookey's proposal had not been forwarded to Administration to review prior to the work session. BREAK TAKEN: 7:10 P.M. BACK TO ORDER: 7:19 P.M. Discussion continued with comments including: • Bookey's proposal was presented as an illustration. • Did not support a nine percent jump in cost to the employees. • Because of the open enrollment time period (from May 23 to June 3, a health care plan decision would be needed from Council. • Support of the single employee continuing at no cost in the health care plan and a nine percent increase to employees as proposed. • Agreed a change in the amount paid by single employees would need to be addressed in the future, but needed to be done over time; was being cognizant of taxpayers; proposed making other cuts in the proposed budget to accommodate the $20,000 single employee insurance cost. • Did not support changing the Code for employee contribution and wanted Administration to review and provide feedback with regard to the Bookey proposal. (fact check the numbers provided, etc.). COUNCIL WORK SESSION MAY 9,2011 PAGE 3 Council took a break from health care plan discussion and continued on to department budgets. Discussion would return to health care plan upon completion of the budget review. 1 -b. Review of Budget by Department Council reviewed the individual budgets. Clerk -- Justification of a full -time Deputy Clerk position was briefly reviewed, but due to health care costs, was not approved. It was noted, there was 58,000 in the budget to cover overtime costs for the half -time Deputy Clerk position. No changes. Visitors Center -- A brief discussion took place related to putting $ 10,000 aside for preparation of a conceptual design for an expansion of the building to accommodate additional storage. It was noted, the requested amount was removed due to the health care costs; the Center had a storage connex which was in the Shop yard; and, the Center was encouraged to apply for a Tier l Rasmusson Grant to assist in the funding for the conceptual design, etc. No changes. Legislative -- Carol Bannock, Ex. Director, Kenai Chamber of Commerce -- Requested funding for Christmas Comes to Kenai fireworks and July 4 costs. Changes agreed to were: • Remove 5300 for newsletter postage permit. • Add $2,500 toward July 4 costs. • Add $3,500 for fireworks costs. • Add $500 for Industry Appreciation Day • Add $2,500 for CARTS • Do not include funds for Food Bank. • Do not include funds for student trip. • Do not include funds for Diversity Advertisement. • $10,000 Grant to Agency (Boys & Girls Club Scholarship -- See Recreation budget discussion). Suggestion was made to renegotiate and increase the management contract for Boys 86 Girls Club instead of a grant to agency which could be discussed when the management agreement comes up. Legal Department -- No changes. COUNCIL WORK SESSION MAY 9, 2011 PAGE 4 City Manager -- No changes. Finance Department -- Discussion took place related to funding the Information Technology position. Concern was expressed with funding it when health costs were so high. Position was supported. No changes. Lands -- No changes. Non - Departmental -- Changes included: • Remove website maintenance (leave in Clerk's budget). • Remove language related to Congregate Housing Insurance. No other changes. Planning & Zoning -- No changes. Safety -- No changes. Police Department -- No changes. Fire Department -- No changes. Communications -- Check language /Five -of -five upgrade -- $5,000 Animal Control -- No changes. Public Works Administration -- Brief discussion took place related to the half -time Project Manager /half -time Public Works Director position. It was noted the Capital Projects side was expected to decrease, but if it increased, additional management would be made through contracts. No changes. Shop -- No changes. Streets -- Brief explanation was given for the following: • Crack sealing -- was better done by contractor (faster and specified work) • Backhoe services -- Should be excavator Services. • Miscellaneous hand tools -- Increased for purchase of socket sets for grader /loader and miscellaneous hand tools. No changes. Buildings -- Comments included: COUNCIL WORK SESSION MAY 9, 2011 PAGE 5 • S45,000 for paging fire /smoke alarm was not included and would wait for energy lighting changes to be done. • Bay doors needing to be painted. No changes. Recreation Center -- Comments included: • The bleachers were needing to be replaced -- the City Manager would inspect them. No changes. Street Lighting -- No changes. Library -- No changes. Recreation -- A brief discussion took place related to the Recreation Center management agreement with Boys 84 Girls Club. Suggestion was to provide a $ 10,000 grant and dedicate as a scholarship to supplement lower membership fee for Kenai residents. Add: $ 10,000 to Legislative budget as a grant to agency. Parks — Add 525,000 for pedestrian trails (to be superseded by discussion on health care /employee share at 8.5% and City share 91.5% -- remaining funds to balance budget would be put into trail construction. (Clerk's Note: Amount ended as $10,000 toward trail construction.) Beautification -- No changes. 1 -a. Changes to Health Care (continuation of 4/19/2011 discussion) Discussion continued with the following agreed upon finding: Single employee -- No pay. Employees -- 8.5% (what's left goes to trails). City -- 91.5% 1 -b. Review of Budget by Department Enterprise Funds -- No changes. Congregate Housing -- Rents should be re- evaluated and the Reserve Account was about 5250,000 instead of $500,000. ITEM 2: SCHEDULE ADDITIONAL WORK SESSION(S) -- None scheduled. COUNCIL WORK SESSION MAY 9, 2011 PAGE 6 ITEM 3: ADJOURNMENT The work session ended at 9:40 p.m. Notes prepared by: Carol L. Freas, City Clerk WED BY COUNCIL DAB CLERK