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HomeMy WebLinkAboutCity Council Committees - Operations - 11/02/1992 CITY COUNCIL BUDGET COMMITTEE MINUTES NOVEMBER 2, 1992, 4:00 p.m. PRESENT: Jon Johnson - Chair, Leona Orr, Jim White, Norm Angelo, Don Baer, Ken Chatwin, Cliff Craig, Bill Doolittle, Linda Johnson, Roger Lubovich, Tony McCarthy, Alana Mclalwain, May Miller, Dee Moschel, Jean Parietti, Tom Vetsch, Nancy Woo. Committee Chair Jon Johnson called the meeting to order at 4:02 p.m. Direction on Liability Insurance Program Risk Analyst Chatwin stated that he was not asking for a decision on liability insurance but rather direction on how to proceed. He noted that further fact finding has confirmed Chatwin's previous assessment of the situation regarding moving to a larger deductible. Chatwin asked if the Committee would prefer a workshop, presentation to the Budget Committee from the insurance carriers=or a joint meeting of the Operations Committee and Budget Committee. Committeemember White concurred with Chatwin's recommendation to move to more of a self-insurance program. City Attorney Lubovich added that the new program offered by WCIA agrees to have WCIA provide defense in any litigation even though It is not a first dollar program. White asked when the City needs to give notice to WCIA to change programs. Chatwin replied that notice was given when concerns were voiced over the rise in prices. During further discussion Chatwin noted that the private market does have larger reserves in case of the occurrence of two or three large claims in one year. Committee Member White moved to send the item to the Operations Committee to hear a presentation from Johnson and Higgins to which other Councilmembers will be invited. Orr seconded the motion which passed with a vote of three in favor and zero against. McCarthy informed Chatwin that the Operations Committee has a full agenda for the next meeting and may need to hear his item on December 1 st. Four Year Financial Forecast McCarthy reviewed with the Committee the four year forecast included in the agenda packet. McCarthy noted that the forecast makes assumptions as outlined In the left hand column in order to be able to do any estimating. He noted that Cliff-Craig had worked on the forecast and a best guess based on history was used for estimating purposes. During McCarthy's review of the individual revenues,White asked why there was so much variation in the licenses and permits category. McCarthy replied that the rate increases for business licenses has been factored in. May Miller pointed out that permits arealso coming in higher than expected. McCarthy reviewed the expenditure forecast noting that there was an assumption of no staff increases and COLA/Step increases were held at 3.5%. He noted that the negative position would be positive by 1996 under the above assumptions with the added 1% reserve added to the contingency fund. McCarthy stated that to him this forecast Indicated that a cautious approach needs to be taken as the City moves into 1993. If there are any signs of the savings plan not improving the budget picture, the City may need to look at a reduction in force. McCarthy noted that the vacancies currently being maintained will save 1 r q_ • � 04 CITY COUNCIL BUDGET COMMITTEE MINUT S` NOVEMBER 2, 1992, Cont. approximately $440,777. When multiplied by four years, this savings would save the City $1.7 million and help to keep the City out of a deficit position In 1994 and beyond If necessary. White asked how many of the vacancies are fire and police. McCarthy responded that those issues are being looked at such as in the building permit area. White asked if the lieutenant position required someone be paid acting pay. A discussion followed of the recruiting process. McCarthy noted that some of the police and fire vacancies may be slightly overstated and should probably reflect the equivalent of a first line firefighter, etc. Orr questioned how realistic it is to not need to hire anyone for four years. McCarthy responded that to do the forecast the assumption was made that the slow economy would continue. If the economy improves, the decision could be made to resume hiring; if it worsens It may be decided to do lay-offs. McCarthy recommended at this point to keep loose by maintaining vacancies until the City can afford to hire replacements. White asked why salaries and benefits were assumed at 3.5%when surrounding cities are forecasting 5%. McCarthy replied that an executive session is planned for the next Council meeting to discuss union negotiations. White asked what would happen If the salary and benefits came in at 4.5%. McCarthy responded that the current vacancies could be eliminated. A discussion followed of the history of positions shown as vacant. Forty positions have been deleted, nine FTE layoffs, and 22 additional vacancies. White asked how many paychecks go out on payday. McCarthy stated that it may be hard to determine the difference between regular FTE employees and temporary part-time employees. Miller added that finance will try to present the Information as clearly as possible. Permanent Funding for Suburban Cities Association (S9A1 Johnson noted that the SCA Is still looking at this proposal. During a brief discussion, Orr suggested that a condition be made of 100% participation for the proposal to pass. After noting that the SCA Board has not approved the proposal as yet, no action was taken. Community Events Program Review McCarthy noted that further information on the Canterbury Faire, Balloon Classic and Kid's Art Day were included in the packet as requested at a previous meeting. Orr moved to eliminate the 1/2 time position under Community Events;transfer the full-time employee to the Parks Department to continue the Saturday Market functions with the Saturday Market Board; and, ask the Management Committee to evajuate and make recommendations on services such as the Balloon Classic, Saturday Market, etc. Johnson seconded the motion. White stated that the last half hour has been spent looking at how the City can continue to stay financially sound and that the Committee has an opportunity to save $100,000. The Balloon Classic and Canterbury Faire may also be possible to have run by service organizations. The City has run the Saturday Market for 18 years and bas functioned very well but perhaps this is the time to turn a function over to a service club and allow the departments to handle their own openings. He noted that Orr's proposal to eliminate the part-time position leaves a $75,000 hole to plug. 2 CITY COUNCIL BUDGET COMMITTEE MINUTES NOVEMBER 2, 1992, Cont. Johnson stated that he liens towards Orr's proposal. Transferring the position to Cultural Arts provides for the Saturday Market to continue as it is and helps meet the needs of the Arts Commission which has noted that they have a shortage of staff support. Orr's proposal helps solve another problem and allows the Management Committee time to take a long range look at all of the City's community events. They can bring back their recommendations for the Balloon Classic, Canterbury Faire and other events that involve staff time to evaluate whether the City should continue them or have the private sector pick them up. Dee Moschell noted that the Balloon Classic and Canterbury Faire bring publicity and positive revenue into the City. Johnson agreed but stated that it was a choice of the City versus the private sector providing these events. Don Baer related to the Committee that when the Saturday Market was conceived the downtown merchants ran it for a number of years before the City stepped in with their support. When the Saturday Market Board was established it was asked that an Administration position be established because the Parks department was not supportive of the program. The City Council unanimously voted to create the Saturday Market Board and a part-time Administration position. That position has changed to full-time and an additional part-time position was added. Baer stated that the City Is part of the Kent Downtown Partnership which is willing to take over the market at no cost to the City. Baer concluded that there is nothing in the R.C.W. stating that the City has to provide entertainment. White pointed out that at the last meeting the Kent Downtown Partnership (KDP) asked the City for $7,500. He noted that the City had already funded $25,000 in support and it was his understanding that the City was not providing ongoing funding for the KDP. During discussion Dee Moschell noted that the$25,000 was matched by the downtown merchants. Orr noted that her motion was in response to a lot of requests,to continue the market. The changes proposed and the elimination of a position provides some savings. After discussion of the motion,White proposed a friendly amendment that no more expenses be charged than taken in on the Saturday Market. With approximately$40,000 in revenues the percentage for wages would have to be lower. Orr agreed to the amendment. Johnson agreed to the amendment. Bill Doolittle asked for clarification that one position would be elimlrm ted and transfer the full-time position. Orr stated that this would put together functions to eliminate duplication. Johnson agreed that there would be better coordination with one department. Committeemembers Orr and Johnson voted in favor of passing the amended motion and White voted against. After a brief discussion of duplication of publications to the Council, the meeting was adjourned at 5:30 p.m. 3