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HomeMy WebLinkAbout10162015 City Council Work Session Notes - Budget Wrap Up z) .r-2u )imiohjA2 ► o 6101, n►4 ` _IL 4)i 1 &-1no 1 -);aa; icoNIS - 0U R $3YVh9to( via) 0 LA royo CJ VI '\Yrr,) ' }-aWIYDi 101121 - !I C-4_113 P00 fA s tc;c>" 1 AOrn 1 -1 )0 dal 119 OA-19j - �ru b,f,a�}a001)s I ,ira V )A 111 ,) n )} tjd-s0 Pc;W:4 pc p/ri pd)lifri -1 \ ************************************1c*******.**'*** * o, " Slli) //of :alra (Ai j DOC :owil, I l7 14403 :/cq palm qv-J.0 ."1441V q '} 4n1J-gi mc i SVA - o into oc3 0,)`GuAaI ' c n9 's 1.01 ,(�'`p)'4-14n1-1 (r � "CIA?-_A_. (.01014114)41 (f 1 7, 'LS.n2p-rn :luasazd sioquiajAi IiounoD . 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Utilities costs up Clerk and manager contracts $ 25K Audit costs up $8K This level of cuts is equal to 12 . 1 % of GF budget. Excludingdebt service payments (which cannot be p Y cut) , represents13 . 5 % cut of General Fund budget P. 3 4� Ii I Tow did we balance b 4,4`' Proposed staffing cuts of $467,503 ■ Freeze step increases and cost of living in 2016 and 2017 ■ Eliminate non-Police overtime ■ Eliminate Standby time ■ Do not fund part-time fire laborers ■ Delay filling asst. finance position (Council re-instated) ■ Delay filling one position in parks & rec ■ Delay filling project manager position or charge to grants, enterprise funds ■ Delay hiring police dispatch/jail position equivalent to one half-time position ■ Eliminate newly added library part-time year-around position Represents 6.2% of total salary + benefits (or 8.0% excluding healthcare) 4 I Tow did we balance budget? Increased RV utility site fees from $30 to $40 Increased RV dry site fees from $15 to $20 Eliminated > $200K annual contributions to motor pool to replace heavy equipment and vehicles No sharing of raw fish tax with Harbor 2-year moratorium on GF repayment to Electric of SMIC deficit loan ($ 110,784) 2-year moratorium on Sewer repayment to General Fund of LP sewer lagoon loan ($76,840) Extend SMIC 300-Ton Boat Lift loan from 7-10 years; annual debt ($98,008 instead of $147,012) Reduced revenue sharing to Capital Fund (from $143,585 to $72,043 in 2016 and from $95,598 to $30,694 in 2017) 5 ,,„ Other Budget Corrections Corrected an error on Harbor capital outlay; balanced budget Increased 2016 Harbor boat lift revenues $20K Corrected Electric Fund; summary omitted $ 150K contracted services 6 0 CIP Budget Modifications Added Lowell Canyon Tunnel costs to CIP $500K Added City Hall envelope and window replacement to CIP $500K Changed harbor crane cost estimate to $400,000 in CIP Sweet Smelling Toilet at Scheffler Creek (rather than culvert) Added $10K annually for cemetery repairs/maintenance to CIP Added $40K city hall repairs/modifications to CIP Added Hospital capital budget items Added preliminary Motor Pool items, noting Motor Pool budget subject to review prior to 12/31/15 Removed variable reach crane from SMIC CIP 5, Budget uestions 14) Current budget includes no progressive increases or merit/steps Impact of 2.3% cola $ 109,365 (affects 81) Impact of restoring merit and progressives $64,029 (may affect 45) Impact of restoring only progressives $15,337 (affects approx. 6) Impact of a 1 .5% cola $71 ,324 (affects 81) Impact of library curator from R8.0 to $ 14.0 $ 14,914 Sal & Ben May consider employee cola after actual revenues come in 2015 8 Harbor 1- nterprise _Fund �.. Balanced budget ■ 2.3% rate increase 2016 ■ 2.4% rate increase 2017 ■ No motor pool contributions ■ No MRRF contributions a No equipment ■ No employee cola, step increases ■ Upcoming project to Replace A,B,C,S Floats ■ New USACE breakwater loan $70,980/year ■ Pay off 50-ton boat lift in 2016 ■ Added $20K boat lift fees in 2016 to correct estimate 9 4,,,,„ 0 SMIC Fnterprise Fund Balanced budget due to GF transfer $ 165,750 (2016) and $ 172,033 (2017) • 2.3% rate increase 2016 ■ 2.4% rate increase 2017 • No motor pool contributions ■ No MRRF contributions ■ No equipment ■ No employee cola, step increases ■ New 330-ton boat lift loan $98,008/year for 10 years This is an extension of the 7-year loan ($147,012) to a 10-year loan ($98,008) 10 • F1ectric Nnterprise Fund Balanced budget ■ 2.3% rate increase 2016 ■ 2.4% rate increase 2017 ■ New seasonal rates lower rates in winter, increase in summer ■ No rate increase to small business (SGS rate class) for two years a New special contracts with ASLC and Icicle Shifts 10% of ASLC PILT fm GF to ASLC utility bill 2016 ($8,400) and 20% 2017 ($16,800) ■ Continue motor pool contributions ■ No employee cola, step increases except for Union ■ No MRRF contribution ■ Increase cash position $339K and $682K to improve operating fund condition ■ Nearly complete w/new generator replacement/warehouse project 11 4 OF Water 1nterprise Fund Deficit budget ■ 4.3% rate increase 2016 ■ 2.4% rate increase 2017 ■ Recent addition of Third Avenue water line debt ($159K/year) ■ No motor pool contributions ■ No employee cola, no step increases ■ No MRRF contribution. No capital expenditures ■ Purchasing two work trucks with Sewer Fund in 2016 ■ New 600K gallon water storage tank nearly complete ■ Reduce cash position $278K and $208K despite rate increases 12 4. 1 v Sewer Fnterprise Fund Deficit budget ■ 4.3% rate increase 2016 ■ 4.4% rate increase 2017 ■ Recent addition of sewer lagoon debt (est. $72K/year) ■ No motor pool contributions ■ No employee cola, no step increases a No MRRF contribution. No capital expenditures ■ Purchasing two work trucks with Water Fund in 2016 ■ Lowell Point & SMIC sewer lagoons drained, dredged, repaired ■ Reduce cash position $3.6K in 2016 despite rate increases 13 �ƒ �\ � . • OPA44,„4% �ƒ ?w�.�? Questions / Comments /Input : « 2 14 10/16/2015 City of Seward 2016/2017 Biennial Budget Council Direction 6'4 r Friday,October 16,2015 General Fund — $1 .3M budget gap — Why? State of Alaska budget cuts of nearly $500K (reduction in Jail contract, dispatch contract, building rent, vending revenues, revenue sharing) Loss of US Air Force Rec Camp lease - $20K Health costs up - $106K Sewer fees for dump station - $12K SMIC deficit (includes new 330-ton boat lift) of $230K Workers comp up $30K Friday,October 16,2015 1 10/16/2015 General Fund 41 — wi S 1 .3M budget gap — Why? Utilities costs up Clerk and manager contracts $25K Audit costs up $8K This level of cuts is equal to 12.1% of GF budget. Excluding debt service payments (which cannot be cut), represents 13.5% cut of General Fund budget Friday,October 16,2015 How did we balance budget? Proposed staffing cuts of$467,503 • Freeze step increases and cost of living in 2016 and 2017 • Eliminate non-Police overtime • Eliminate Standby time • Do not fund part-time fire laborers • Delay filling asst.finance position(Council re-instated) • Delay filling one position in parks&rec • Delay filling project manager position or charge to grants,enterprise funds • Delay hiring police dispatch/jail position equivalent to one half-time position • Eliminate newly added library part-time year-around position Represents 6.2%of total salary+benefits(or 8.0%excluding healthcare) Friday,October 16,2015 4 2 10/16/2015 How did we balance budget? ` Increased RV utility site fees from$30 to$40 ❑ Increased RV dry site fees from$15 to$20 ❑ Eliminated>$200K annual contributions to motor pool to replace heavy equipment and vehicles ❑ No sharing of raw fish tax with Harbor n 2-year moratorium on GF repayment to Electric of SMIC deficit loan($110,784) ' i 2-year moratorium on Sewer repayment to General Fund of LP sewer lagoon loan($76,840) o Extend SMIC 300-Ton Boat Lift loan from 7-10 years; annual debt ($98,008 instead of$147,012) Reduced revenue sharing to Capital Fund Friday,onobecfign2A43,585 to$72,043 in 2016 and from$95,598 to$30,694 in 2017) Other Budget Corrections ❑ Corrected an error on Harbor capital outlay;balanced budget ❑ Increased 2016 Harbor boat lift revenues$20K ❑ Corrected Electric Fund; summary omitted$150K contracted services 3 10/16/2015 CIP Budget Modifications Added Lowell Canyon Tunnel costs to CIP$500K r:; Added City Hall envelope and window replacement to CIP$500K r Changed harbor crane cost estimate to$400,000 in CIP r Sweet Smelling Toilet at Scheffler Creek(rather than culvert) D Added$10K annually for cemetery repairs/maintenance to CIP r y Added$40K city hall repairs/modifications to CIP Li Added Hospital capital budget items CJ Added preliminary Motor Pool items,noting Motor Pool budget subject to review prior to 12/31/15 Removed variable reach crane from SMIC CIP Friday,October 16,2015 Budget Questions 6 Current budget includes no progressive increases or merit/steps Impact of 2.3%cola$109,365 (affects 81) Impact of restoring merit and progressives$64,029(may affect 45) r) Impact of restoring only progressives$15,337(affects approx. 6) Li Impact of a 1.5%cola$71,324(affects 81) Impact of library curator from R8.0 to X4.0$14,914 Sal&Ben \lay consider employee cola after actual revenues come in 2015 Friday,October 16,2015 4 10/16/2015 Harbor Enterprise Fund Balanced budget • 2.3%rate increase 2016 ■ 2.4%rate increase 2017 • No motor pool contributions • No MRRF contributions • No equipment • No employee cola,step increases ■ Upcoming project to Replace A,B,C,S Floats in New USACE breakwater loan$70,980/year ■ Pay off 50-ton boat lift in 2016 ■ Added$20K boat lift fees in 2016 to correct estimate Friday,October 16,2015 SMIC Enterprise Fund is Balanced budget due to GF transfer$165,750(2016)and$172,033 (2017) • 2.3%rate increase 2016 • 2.4%rate increase 2017 • No motor pool contributions • No MRRF contributions • No equipment • No employee cola,step increases • New 330-ton boat lift loan$98,008/year for 10 years This is an extension of the 7-year loan($147,012)to a 10-year loan($98,008) Frrday,October 16,2015 1C 5 r 10/16/2015 Electric Enterprise Fund Balanced budget • 2.3%rate increase 2016 • 2.4%rate increase 2017 • New seasonal rates lower rates in winter,increase in summer ■ No rate increase to small business(SGS rate class)for two years • New special contracts with ASLC and Icicle a Shifts 10%of ASLC PILT fin GF to ASLC utility bill 2016($8,400)and 20%2017($16,800) • Continue motor pool contributions • No employee cola,step increases except for Union • No MRRF contribution • Increase cash position$339K and$682K to improve operating fund condition • Nearly complete w/new generator replacement/warehouse project Friday,October 16,2015 11 Water Enterprise Fund Deficit budget • 4.3%rate increase 2016 in 2.4%rate increase 2017 • Recent addition of Third Avenue water line debt($159K/year) • No motor pool contributions • No employee cola,no step increases Oa{ • No MRRF contribution. No capital a enditures ■ Purchasing two work trucks with and in 2016 • New 600K gallon water storage tank nearly complete • Reduce cash position$278K and$208K despite rate increases Friday,October 16,2015 6 10/16/2015 Sewer Enterprise Fund u Deficit budget • 4.3%rate increase 2016 • 4.4%rate increase 2017 • Recent addition of sewer lagoon debt(est.$72K/year) • No motor pool contributions • No employee cola,no step increases der • No MRRF contribution. No capital ex 'tures • Purchasing two work trucks with Fund in 2016 • Lowell Point&SMIC sewer lagoons drained,dredged,repaired in Reduce cash position$3.6K in 2016 despite rate increases °ridgy,OcoI), iti,2015 13 Questions/Comments/Input 0 14 7 r Johanna Kinney To: City Council Subject: FW: letter to City Council and Administration RE budget Attachments: State and Federal HPC Requirements.pdf Kir vrve47 From: John French [mailto:PESA©gci.net] Sent: Thursday, October 15, 2015 1:14 PM To: Johanna Kinney; Brenda Ballou Cc: John French Subject: letter to City Council and Administration RE budget Johanna or Brenda, Please forward the attached letter to the Mayor, City Council Members, and appropriate City administration. I would appreciate their receiving it prior to tomorrow's final Budget work session. Thank You, John French Spam Not spam Forget previous vote 1 M • 15 October 2015 Mayor, City Council &Administration City of Seward PO Box 167 Seward, AK 99664 RE: Projects Requiring Surveys of Potential Historic or Archeological Significance The National Environmental Policy Act (NEPA), Clean Water (CWA) and Clean Air (CAA) Acts, and the National and State of Alaska Historic Preservation Acts (HPA) all recognize the importance of recognizing and evaluating the potential importance of historic and archeological resources. These resources are also an integral part of the Natural Resource Damage Assessment (NRDA) process following manmade disasters such as oil or hazardous substance spills. The tool most frequently used for this portion of Environmental Impact Statements (EIS) or Environmental Assessments (EA) under NEPA, or Section 106 of the Historic Preservation Acts, is a survey of potential historic and archeological significance. Just as under other resource analysis sections of EIS or EA adverse impacts on historical resources are discouraged but not prohibited. Other statutes may require mitigation activities. Surveys of potential historic and archeological significance are information gathering tools. Identification of significance does not necessarily lead to protection. The preferred alternatives come from consideration of all needs and priorities of a community like Seward; not just the historic preservation ones. A common feature of CWA, CAA and HPA is the recognition that the community at the local level knows what the needs of the local priorities are. Just as the State of Alaska was encouraged to assume primacy of the National Pollutant Discharge Elimination System (NPDES) through ADEC to become the APDES permitting system, the National HPA allows for States to assume responsibilities under the statute. The State of Alaska has done this under the Alaska HPA; specifically under the State Historic Preservation Office (SHPO). In order bring decisions regarding historic preservation priorities down to the community level the SHPO initiated a Certified Local Government (CLG) program under the guidance of both HPAs. Two decades ago the City of Seward decided to become a CLG and establish a Historic Preservation Commission (HPC). The duties and responsibilities of the HPC in Seward City Code (2.30.4) exactly mirror those required by the CLG program. Two of these Powers and Duties of HPC are (4) Act in an advisory role to other officials and departments of local government regarding the identification and protection of local historic and archeological resources. , and (6) Support the enforcement of the Alaska Historic Preservation Act, AS41.35. Being a CLG does not alter the requirements of the State and Federal statutes but it does move the initial analysis and prioritization of alternatives down to the local level. If the City of Seward chooses not to abide by these laws, it may put its applicable State or Federal grants at risk. How the City chooses to abide by the historical and archeological assessment requirements is the decision of the City Administration and the City Council. Remaining a CLG with the requisite HPC keeps the early decision • P making at the local level. It also provides a possible avenue to technical assistance from SHPO in completing the required surveys of historic and archeological significance. Keeping the evaluation process at the local level helps assure consideration of Seward priorities not just those related to historic preservation. As a required part of any of these development projects, the associated costs are legitimate administrative costs which could be added to State or Federal grant budgets. Both to complete the required fact finding and deliberation and to assure it can provide timely advice to the City Council and Administration. Seward HPC needs to meet at least every other month with possible work sessions in-between. Whether it is from General Funds or allocated from grant funds, Seward HPC needs sufficient staff support to facilitate these meetings and access to the City staff it needs to advise. Respectfully, John S. French, PhD PO Box 1470 Seward, AK 99664 PESA(a),gci.net 907-224-4429 or 907-491-0343 Johanna Kinney From: Kris Erchinger Sent: Tuesday, October 13, 2015 7:26 PM To: Ron Long; Christy Terry;Iris Darling; 'smclure@cityofseward.net;Jean Bardarson; 'daltermatt@cityofseward.net'; Ristine Casagranda; David Squires; Dale Butts; Marianna Keil Cc: Jim Hunt;Johanna Kinney Subject: Personnel Budget --Information request for Council Council members, I have reviewed the personnel budget and offer the following information. When the decision was made to remove the step increases and cola from the proposed budget, all employees were brought back to their current range and step. That means that there were no Progressive increases, Probationary increases or Merit increases programmed into the current budget. (This is in answer to Councilmember Terry, who has asked what the impact is on the budget of the progressives included in the budget. The answer is that there are no progressive increases included at this time; there are only minor changes resulting from wage committee actions.) Since the impact of probationary and progressive increases depends on the date the employee is eligible for that raise,we feel that it is safe not to budget for those at this time(new employees are eligible only after having served 6 months) due to vacancy factor. We estimate the following impacts to the General Fund of various scenarios: The cost of a 2.3%cola =$109,365 The cost of a 1.5%cola =$71,324 The cost of no cola but provide merit and progressive increases for eligible employees$64,029 The cost of no cola but freeze merit increases$15,337 (assumes 6 random employees eligible) There was also a question about the impact of a potential increase in the Library/Museum Curator position. The estimated total impact of a reclassification of this position is approx.$14,914. I hope that this answers the questions which have been asked about personnel, but if I have missed anything, please let me know. -Kris 1 Johanna Kinney From: Carol Griswold <cgriz@ak.net> Sent: Wednesday, October 14, 2015 10:38 PM To: Johanna Kinney; Sue McClure Subject: Budget article from Homer Dear Council, According to a October 14 Homer News article,<http://homernews.com/homer-news/local-news/2015-09-30/services- vs-revenue>, Homer is facing a$1 million fiscal gap in its 2016 budget. Their choices are services vs revenue. Possible solutions are to cut city services drastically, raise revenues,or a combination of cuts and revenue. The bare bones budget has cuts to every department, including roads, police, and fire protection. Revenue options include eliminating the$20K residential exemption for property tax assessments, raising property taxes 1 mil, raising sales tax 0.5%, raising the sales tax cap from $500 to$1K of sales. Some favored "fleece and release", ie a higher seasonal sales tax in the summer. Regardless, positions currently not filled, including a vacant police patrol officer position, will be cut. Interesting solutions, some of which we may want to consider. Best, Carol BEGIN-ANTISPAM-VOTING-LINKS Teach Canit if this mail (ID 01PtiBIgV) is spam: Spam: http://canit.cityofseward.net:8080/canit/b.php?i=01PtiBlgV&m=7e305c233e3e&c=s Not spam: http://canit.cityofseward.net:8080/canit/b.php?i=01PtiBlgV&m=7e305c233e3e&c=n Forget vote: http://canit.cityofseward.net:8080/canit/b.php?i=01PtiBlgV&m=7e305c233e3e&c=f END-ANTISPAM-VOTING-LINKS 1