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HomeMy WebLinkAboutCity Council Meeting - Council - Minutes - 12/08/1992 Kent, Washington December 8, 1992 A special meeting of the Kent City Council was called to order at 7: 00 p.m. by Mayor Kelleher. Present: Councilmembers Bennett, Houser, Johnson, Mann, Orr, White and Woods, Chief Administrative Officer McCarthy, City Attorney Lubovich, Planning Director Harris, Public Works Director Wickstrom, Fire Chief Angelo, Police Chief Crawford, Acting Finance Director Miller, Informa- tion Services Director Spang and Human Resources Director Olson. Approximately 15 people were at the meeting. Property Tax Levy Ordinance. The Council established this date to adopt an ordinance approving the 1993 Property Tax Levy. The Property Tax Levy is calculated with information received from King County based on the 106 percent levy lid law, and new con- struction and voter approved debt service requirements. The Property Tax Levy totals $12, 057, 914 of which $10, 115, 839 is in the General Fund and $1,942, 075 funds debt service for the fire apparatus, public safety, and senior housing bond issues. The new construction reported during the period July 1, 1991 to June 30, 1992 is $46,705, 110. The total levy rate is $3 . 06 per $1000 of assessed valuation, down from $3 . 19 in 1992 . Chief Administrative Officer McCarthy noted that new information received from the County today was calculated into the formula, and the total tax levy was adjusted to $12 , 067, 042 which is approximately $9, 000 more which is totally attributable to the General Fund. He noted that this reduces the levy rate by another cent, making it down 14 cents from 1992 . He also noted that the Budget Committee recommended this by a 3-0 vote. JOHNSON MOVED for the adoption of Ordinance No. 3078 fixing the tax levy for 1993 . Orr seconded and the motion carried. 1993 Budget. The Council established this date to adopt the 1993 Budget. An ordinance has been prepared to reflect the Mayor' s budget proposal with adjustments as discussed with the Budget Committee. The Budget Committee met on December 7th to make their final recommendation. Chief Administrative Officer McCarthy noted that Sections 2 through 6 of the proposed ordinance were included at the recom- mendation of the Budget Committee and he read through them as follows: Section 2 . Based on Administration' s recommendation, no cost of living adjustment shall be paid for non-represented employees until a settlement is reached on a majority of union contracts. Administration' s goal will be to maintain an average 1. 8 percent cost of living adjustment City-wide. 1 December 8, 1992 Section 3 . Included in this budget is an amount for Depart- ment Head merit pay increases. However, the City will develop a revised merit pay plan and review with the Budget Committee before proceeding with implementation. Section 4 . Included in this budget is the transfer of a full time employee from Administration to the Parks Depart- ment to continue the Saturday Market functions with the Saturday Market Board. The City Management Committee is asked to evaluate and make recommendations on services such as the Balloon Classic, Saturday Market, etc. No more expenses will be charged to Saturday Market than revenue taken in. Section 5. Included in this budget is an amount for step increases for eligible employees. City Administration is requested to monitor the issuance of step increases so that they are only awarded following satisfactory performance. Section 6. Included in this budget is an additional revenue of $39 , 250 to reflect increased Corrections day rates from the U.S. Marshals Service. $6, 000 for November & December, 1992 is allocated to 1993 beginning fund balance and $33 , 250 revenue to 1993 . City Administration is authorized to execute appropriate agreements to implement the increase. He explained that although the $6, 000 in Section 6 was not discussed by the Budget Committee, the figures have been changed to reflect the $6, 000, and the intent is to execute appropriate agreements to implement the increase. McCarthy stated that the only exception to what was specifically approved by the Budget Committee is the Library Special Election in the amount of $30, 000. He explained that placing an item on a special election is a complicated process involving development of an interlocal agreement between the City and the Library District, support of the local Library Board, passage of a City Council resolution in support of annexation, passage of a resolution by the King County Library System concurring with the request for annexation, and approval by the King County Council to put the measure on the ballot. He noted that in order to be on the February 2nd ballot, all that activity would have to be completed by December 18th. He said that the school districts he has checked with are not sure they will be having elections coming up soon, making it impossible to share the cost of an election with a school dis- trict. He said that the City could potentially have a savings in 1994 if the election were held in May or in the fall of 1993 , but that the Library District cannot guarantee that the 1993 rate 2 December 8, 1992 could be given in 1994 . He suggested that if the City is consid- ering an election in 1993 , that $30, 000 should be put into the budget to cover it. McCarthy explained that the only items left outstanding at yesterday's Budget Committee meeting are the Library annexation issue, the $6, 000 figure for increased day rates from the U.S. Marshals Service, the property tax which had $9 , 000 more than when the Committee met yesterday, and the Capital outlay in the golf complex. He explained that they would be reducing the capital outlay in the golf complex by $8, 000 and that the adjust- ments are the deletion of kitchen equipment, tables and chairs, and sensors for lawn mowers. He explained that these items have been deleted from the capital outlay list, and that they could be purchased using money from other funds such as Minor Tools and Equipment and Recreational Supplies. White noted that a number of figures were discussed by the Budget Committee as to the compensation package for the Chief Adminis- trative Officer, and asked exactly what it is. McCarthy explained that he is at Level II, making approximately $6, 700 per month. He explained that the amount shown included a COLA of 1.8%, a merit increase of 5%, and a 20% increase for health, which totals $101, 000 . Bennett said it was his understanding that former Assistant City Administrator Jim Hansen' s salary of $88, 000 would be used for the Chief Administrative Officer' s salary, and that $88, 000 was the complete package. He pointed out that no money has been saved by changing that position. The Mayor noted that a salary was not set for the Chief Administra- tive Officer, but that Hansen's unexpended funds were left in the budget. He added that since Mr. Chow was as the low end of the top level, and Hansen was at the top end of a lower level, there may not have been a cost savings. McCarthy noted that Level I has been eliminated and he is still in Level II, as he was as Finance Director, although he is now closer to the top end. The Mayor noted that when Council approves creation of a position under the current pay plan, they are establishing a range of pay, and that actual pay depends on the merit pay system. The Mayor asked that the $88, 000 figure be double checked. JOHNSON MOVED for the adoption of Ordinance No. 3079 approving the 1993 budget with the changes noted and including $30, 000 for the Library Special Election. Orr seconded. Johnson said that by having funds available, the City can explore the option of annexing to the County Library District. He said the Budget Committee is comfortable with the recommendations they made and that they will continue to monitor the budget closely in order to maintain a sound financial position. White pointed out that r 3 December 8, 1992 Johnson speaks for the majority of the Budget Committee, not the whole committee. He noted that Boeing employees have authorized a strike over pay packages which include 9% and 6% increases. He said that the 1. 8% proposed by the City is not realistic. He noted that the 1.8% increase amounts to $420, 000, and if settled higher than that, it could amount to $1, 000, 000. He said he sup- ports monitoring the budget through the year, but that it won't be any easier to make tough decisions later than it is now. He said that in failing to address some issues now, the City will be faced with further layoffs in the future. He said that 1993 will not be any better than 1992 and that he cannot support this budget. Houser agreed with White that it will be difficult to keep the increases down to 1.8% but that the only alternative is to lay people off. She said if lay offs must occur, she would prefer to put them off as long as possible. Bennett pointed out that last year some people received an increase of over 11% with their 6.7% COLA and step increase. He said that although the Budget Committee has worked hard, this does not address the core of the problem and he cannot support this budget. Lubovich clarified that the only change to the ordinance before the Council tonight is to include $30, 000 for the Library Annexation Election. Bennett noted that early in the budget process there was talk of streamlining, eliminating duplicate positions and so forth, and that there could have been some resolution between then and now so that the Council could vote on them. Orr noted that the Budget Committee has spent many hours reviewing numbers and trying to come up with the best solution to a difficult problem, and that she can support the budget since the City is still freezing positions, and not filling non- essential positions. She said she would like to avoid further layoffs, and noted that the budget will be monitored closely to forestall any major crisis. She said that eliminating step increases would reduce expenditures, but that it is unfair to bring it up at this time. Mann asked whether there has been any discussion by the Budget Committee regarding early retirement, and McCarthy explained that the Human Resources Department will give a report on the subject to the Executive Committee on December 9th. He noted that one concern is that if the City con- tinues employees on the City' s health plan past retirement age, it would put a burden on existing employees. He said all options will be reviewed and that their goal is to have a decision by the end of January. Johnson pointed out that under the PERS and 4 December 8, 1992 LEOFF systems, specific criteria have to be met in order to qualify. White noted that he had asked for this information early last summer. He said that his figure of 450 employees may not be realistic, but that the Council should have a goal in mind. He said that the City is again spending more money than they are taking in. Upon a roll call vote, the motion to adopt Ordinance No. 3079 carried by a vote of 5-2 , with Bennett and White opposed. Adjournment. The meeting was adjourned at 7 : 45 p.m. �r Brenda Jacob �, C City Clerk 5