HomeMy WebLinkAbout01222024 City Council Work Session Notes WORK SESSION NOTES City Council
Called by: City Council Time: 5:30 pm Date: 01/22/2024
Purpose:
Midc cle Budget Analysis, and Public Safety Building
Present: Council Members Present:
Jason Bickling, Kat Sorensen, Jodi Kurtz, Jusino, Julie Crites, Mike Calhoon, Sue McClure, John
Kris Peck Osenga, Randy Wells, Robert Barnwell
Sorensen Sorensen—Feedback for the mid cycle Budget
Jusino Jusino—Mid Cycle Budget—incorporate changes and estimation of the fiend balance.
Schedule A with 2024 adjustment
General Fund- revenue increase on closing the construction fund($68K). Following with General Fund
increase of the Electric($265K). Increase of Revenue across the board($500K)representing the
investment rate of the return. (See Packet for information.)
Closing of the Jail - $118,300 and the jail contract the general fund will lose the revenue of$564,810.
Sorensen—Expenditure changes, variety of changes throughout their increase in 2023 (audit fees,
personnel adj and cost adj), a big one $100K for contracted services with Utility Bldg. outsourcing (2-
year contract. OT in Various departments, and the increase of the Fire Fighter position and that was not
retro actively changes. Wanted to fix that.
Expenditures change in closing of the jail and shifting hours and change in actual usage.
Jusino—Continue with Enterprise fund is the electric fund and the increase of the .06 cents/kwh and will
increase by $3.3 mil. Expenditure from Chugach Power of$1.4 increased and it's the allocation of the
other side.
Expenditure increase is the budget with MER (Electric Study), MEA Contract,
Sorensen—not solely the Matanu Contract, ROW Clearing and Contract with Services we will have to
contract with. (Sturgin and linemen)
2024—Budget 2023/2024 for the CC Fees—incorporating those fee midcycle
Increase of the expenditure of the Utility side.
Sorensen—Increase on the wastewater fund. Investment and utility funds are up.
Jusino—not much going on in Harbor, increase in revenue side and investment and increase in
expenditure side on salaries. SMIC fund—interest increase revenue and utility on warfare. Expenditure
for resales of general power.
Sorensen—Parking contract of services and enforcement and being optimistic on revenue change.
Council Member Mike Calhoon-pg. 7—Exp increase for General power for resale? Revenue increase
when they sale the power?
Sorensen/Jusino—resale of SMIC power- It's reported on the Harbor.
WORK SESSION NOTES City Council
Calhoon -pg. 8 expenditure decrease on $1.4 mil adj based on allocation of fees, is it an expenditure
decrease.
See the discussion on this on YouTube. (Sorensen -Will clarify the verbiage)
Sorensen—taking the average from previous years (5 years). It's a decrease on the previous year.
Calhoon—All the Enterprise funds and the general fund, the investment income that comes from is it all
int eh same investment.—Jusino said yes.
Jusino - $1.54 increase on the Chugach Power Purchases. As for the power fuel cost, we over budgeted.
To answer questions about the Harbor we have received the 953.54, Harbor Power fuel factor, revenue
from the Harbor there.
Barnwell—Projected increase in Enterprise, $1.2 million,pg. 9? See new Laydown. What is the new
Increase on the Enterprise?
Jusino - 3.3 million. The city has never budgeted or MER, including the Pilt and this will help capture
the expenditures. Has some assumptions for the Laydown Fund that explains the revenue and
expenditure on the Electric Fund.
See Laydown.
Sorensen—5-year revenue and expenditures on page 11-31. Work with council so we can bring this
forward to you in a council meeting.
Another report to add 2023 budgets by department. (See page 32) - Breaks down each dept and breaks
down the variants.
Council Member Wells—pg. 11, tax revenue forecasting and nice to see all the years. Budgeted $6.5
million was our projection for sales tax revenue. Ending at $526,000 adj over, but we kept 2024 the
same?
Jusino -yes to be conservative, as the average of the last 5 years is almost around the same for $6.5.
Mayor McClure—Please address Sorensen with Question on this.
Calhoon—budgeted $225K on gravel sales, but was actual $81,500. But kept it$225 for 2024 budget?
Sorensen—communication with a company that would be leasing the gravel lot, so we could be realistic
to adj that.
Calhoon—Line item 4350 - $291 below budget for camping fee, and bumped it up even more.
Some areas are conservative and some areas we aren't. Trying to figure out the philosophy that you
have.
Sorensen—increased the rates and are optimistic about the weather this year.
WORK SESSION NOTES City Council
Jusino—Camping fees and did increase some fees but things in 2023 effected some sales, helped make
these decisions.
Wells—4205—2019, received $20K in liquor tax and not received anything since then on here why is it
on here?
Sorensen—Once 2019 is gone it will be off.
Wells—4208, no marijuana application fee, once the 2018 falls off, it will not show on here.
Wells—4317—short term rentals, income from 2023 but no forecast for future?
Sorensen—will fix and make that adj.
Wells—4383 —municipal bldg. rent down $65K.
Naneth—The State of AK court system. They locate $65K per year at the end of year and how much is
for the year based on sq. footage.
Barnwell—Electric fund—nice if we knew how much we are going to spend or what we need. And for
what purposes?
Then the jail? Confused on it, not paying, no employees.
Sorensen—we contract funds for each year, we won't receive those contract funds. We are saving
money by not having the jail open.
Barnwell—time line on jail topic
Sorensen—Discuss it and another topic.
Calhoon—One more,pg. 15 line 7215—Operating Supplies electric enterprise fund—Is that 2.1 apart
are things that we purchase for infrastructure project.
Jusino—said that is correct but at the end of year we are allocating those.
Norm—says it has to go somewhere for now then they can move it.
Rhonda Hubbard—On fish tax—4706 —would encourage and go back to 2023/2021 doesn't think
industry is in a tough spot and wouldn't go to that yet.
Electrical piece—lack of cost control and gone up since 2019—grants in picture.
Part 2
R& M (pg. 39)
Speaker—Taryn Oleson-Yelle (Project Manager)
Please see Packet for information and Watch YouTube (Sorry, had some technical issues with
Television)PowerPoint will also be on Laserfiche.
WORK SESSION NOTES City Council
Chief Nickells —Most important—not pause at this point. What is shovel ready? Right now, our chance
is getting a grant is 0. We need to get to where we can get a grant. This should o been done 30 years
ago. It only is going to get more expensive. Start looking for grants. Give us a shot to come up with.
Chief Crites—Echo Chief Nickells—State is looking for projects and do not want to turn them down.
Forward momentum and shovel ready to see and visualize. Site selection big favor of Forest Acres
Campground. Nothing better to Seward to have a big beautiful City building.
Chief Squires—2000/2001 —Wanted a public safety building from a log cabin to the grass area of the
fire station, two stories with a full basement(Full jail and parking). That was $16 million. Two
elevators, one to police dept and then to jail, no stopping. Fire Department on the second floor. That
project came to $24 mil. In 2002 our Insurance Company said the Fire station was considered a liability.
Lot 10 A is gone now and putting a satellite station there and now we must put it across the bay (Ladder
Truck). Lot C—R& M study for public works building, a few lots there. 3ft of material remove and 8
feet of fill was a problem. We need all these building. We are putting good money in bad buildings.
We need something to approach a grant and the Legislature. Site A is the most practical thing. Down
town enjoy having both police nearby and the community likes. If they are going to have to go out to lot
C, then it might become a hassle. As far as traffic, coming up Ash Street. People are not going to like
that. Wouldn't want to have a fire station or police station in forest acres.
Jason—Would you like us to bring something back and have another work session, and what info you
need from us,
Council agreed with 15% is a great idea and form opinions on the property.
Mayor agreed to bring back info for another work session.
Work Session Adjourned at 6:41pm