Loading...
17 Dec 26 Special CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in regular session on December 26, 2017 at the regular meeting place of the City Council. Mayor Fletcher delivered the invocation and led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: City Councilman: Elliott, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Collins answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. Councilmen Bolden was absent. PRESENT NINE (9) ABSENT ONE (1). Others present for the meeting were: City Attorney Robert Bamburg, Finance Director Cheryl Erkel, Fire Chief Alan Laughy, Professional Administrative Consultant Geoffrey Herweg, Parks and Recreation Director Kevin House, IT Director Scott Rothlisberger, Director of Public Works Jim Oakley, Jeannie Herweg, Planning Commission Chairman Jim Moore, Planning Commissioner Patrick Thomas, Glenda Fletcher, Bob and Lori Johnson, Officer Kimberly Lett, Lida Feller, Nikki Wilmoth, interested citizens, and members of the press. PRESENTATION OF MINUTES: APPROVAL AND/OR CORRECTION OF MINUTES: CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: ORDINANCE 1578 (#14-2017) AN ORDINANCE ADOPTING A FISCAL BUDGET FOR 2018; MAKING APPROPRIATIONS AND AUTHORIZING EXPENDITURES FOR OPERATION OF VARIOUS DEPARTMENTS OF CITY GOVERNMENT; FOR THE PURCHASE OF MATERIALS, SUPPLIES, EQUIPMENT, AND SERVICES COVERING GENERAL FUND OPERATIONS, STREET FUND, EMERGENCY MEDICAL SERVICES FUND, SHOOTING RANGE FUND, AND SANITATION FUND; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Councilman Ray moved, seconded by Councilman McCleary to place Ordinance 1578 on SECOND READING. Finance Director Cheryl Erkel provided handouts offering General Fund budget comparisons and actual activity for years between 2013 and 2018. She stated that she still stands behind the way the budget was presented at the previous meeting and did not make any changes. She related that she would like to make some points; saying that this is the first budget in five years that is less than $20 million dollars. This is the first budget in five years that had no opening balance that was used in order to get it balanced. It rewards 1 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. our employees with well deserved raises. It gives the Fire Department a portable hose tester that will extend the life of the trucks because currently the hoses are tested with the engines. It gives Courts a replacement software that will allow them to get information from other courts. The current software that they are using has been in place since 1997. It gives 911 a radio encryption upgrade that has been cut from the budget for the past two years. They currently only have one console that has the ability to monitor SWAT channels that are encrypted for officer safety. It gives IT the ability to upgrade the WIFI at the Public Safety Building and to refresh all servers at City Hall and the Public Safety Building. It allows Parks and Recreation to grow their programs to improve the quality of life for our citizens as well as visitors to our community. Parks and Recreation Director Kevin House stated that he put together some figures since the sport programs have been in question. He stated that it is correct that they spend approximately $65,000 annually on officials, sanctioning fees, insurance, and everything to run the sports leagues regarding youth and adult. He stated that they take in approximately $40,000 annually in entry fees, which is not including the concessions, adding that in 2017 they took in approximately $125,000 in concession receipts. He stated that to offset this expense in 2018, he has requested and received $106,000 in funds from the A&P Commission to offset expenses for the sports programs. He noted as a reminder that the Parks and Recreation is not a for profit business, saying that they are here for quality of life, as well as “heads and beds” for economic impact. He then noted that the shooting range was brought up and it was said that we could save $600,000, which is completely false. He stated that in the shooting range budget there is a line item for depreciation and Finance Director Cheryl Erkel has stated that while it will not be spent it cannot be removed as a part of governmental accounting. He pointed out that if you remove that $83,000 then it is approximately $56,000 in the red. He then noted that in 2017 the shooting range hosted 48 events and had 1.3 million targets that were sold in 2017. He stated that they had approximately 5,000 kids through the AYSSP program over a five weekend period, 6-day ADA shoot with 15 states represented. We had a four-day ATA Southwestern Zone shoot with six different states represented. He offered that he is saying all this because what they do in Parks is not quality of life, it is economic impact. He then stated that he has a estimated economic impact survey that is typically used Nationwide in the Parks business, saying that just on AYSSP events for 2017 the estimated economic impact for the City was 1.9 million. Councilman Mashburn questioned the impact if the shooting range only opened for events. Parks and Recreation Director Kevin House stated that his contract with Game and Fish Foundation and Commission stipulated that they have a certain amount of days that they have to be open. Councilman Traylor questioned the expiration of the contract. 2 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. Parks and Recreation Director Kevin House and City Attorney Bamburg concurred that the contract is long-term quoting 99 years. Councilman Collins questioned what part of the overall Parks budget is reserved to maintain the facilities. Parks and Recreation Director Kevin House stated that it is broken down by facility in the budget, adding that he would be happy to get that information. Councilman Collins questioned the total amount spent for salaries. Parks and Recreation Director Kevin House stated that he did not have those figures with him regarding the percentage of the total budget. Councilman Twitty confirmed with Parks and Recreation Director Kevin House that the $106,000 contributed by the A&P Commission is specific to the sports programs. He stated that if that is cut then the funds would go back to the A&P Commission, since the money was requested specifically for the sports programs. He then related that these funds are in addition to what they already receive from the A&P Commission. He then answered Councilman Traylor that those funds will be spent on the contract services regarding the different programs. He then clarified that all the referees and officials are paid through contract services. Councilman Traylor questioned how many people are generally at Dupree Park during the week working on the fields that are full maintenance. Parks and Recreation Director Kevin House stated that he has 2 people, but he can’t say that they are full time; he explained that they are there unless they are pulled somewhere else. He then added that he has seasonal help through the summer. Councilman Traylor clarified that the City doesn’t actually have tournaments and Parks and Recreation Director Kevin House concurred saying they are hosted by others. He then asked if when others have a tournament does the City supply employees. Parks and Recreation Director Kevin House stated that they supply concession now and then normally he schedules the seasonal just to keep the trash picked up. He clarified that they are not there working for the tournament directly but they are there. He stated that he does one at a time and they are on a rotating schedule. He offered as a side note that they did have a total of 157 teams playing in all of the leagues this year, which is softball, base ball, volleyball, kick ball, flag football, basketball, and soccer. He then answered that he expects concession to run the same for 2018 as 2017. 3 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. Councilman Collins stated that over the entire Parks and Recreation budget; he took the regular employees and contract employees and when he added them together he came up with $1,649,223.00. Finance Director Cheryl Erkel referred to the General Fund budget comparisons, saying that the actual expenditures have been less than the budgeted expenditure amount for 2013, 2014, and 2015. She stated that even though an amount is budgeted they are still looking for ways to save money throughout the year. She noted that 2016 was the first year offered in the comparison that we spent more than we budgeted. She explained that if they don’t know the cost of something they have to take the best guess they can. She added that sometimes they are over budget, not intentionally, but because of the unknown. Councilman Collins questioned if there is any downside to exceeding the revenue projections for the budget. Finance Director Cheryl Erkel stated that the auditors look at that and frown upon them not being able to budget within a certain parameter and so we try to budget as close as we possibly can. She then referred to a handout with suggested cuts, saying that she is not happy making any of the cuts, so the City Council will have to tell her to do one, two, all, or none, whatever it’s your decision to make. She stated that even with those suggestions listed there is still not enough to make up the $600,000 that was asked to be cut. She stated that most of the employees in the General Fund make between $26,500 and $38,700, which means we would have to lay-off between 10 to 12 employees to make up that difference between the suggested cuts and the requested $600,000. Councilman Sansing stated that he is not comfortable making any of the suggested cuts to the proposed budget. He added that the Reserves shortfall was accumulated over a three, four, five year span in which everyone on this City Council voted on those budgets as the Reserves got smaller. He stated that we cannot hope to make up five years of a shortfall in one budget on the backs of our people. He went on to say that we have to make up the shortfall in the reserves one year at a time, the same way it went down, not with the draconian measures of laying people off or taking away their raises. He added that is what it would take to make it all up at one time. Councilman Collins stated that fire and police are essential services adding that following that it is harder on what it falls back to. He said that things like what is needed for our Fire Department, I agree it is needed and I am happy with that. He then stated that the City Attorney/Police Director made some convincing arguments for what he needs to make sure the Police Department run right. He noted EMS, saying he understands their budget, then saying that the lose accounting here is with what we do with Parks and Recreation. He continued saying in his opinion that is where cuts have to come from and yes, its draconian, but with the level of cuts we are looking at, we need to do our due diligence, it will probably cause some people 4 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. to get a pink slip. He stated that we were put on this Council to make decisions like this and Reserves are one thing that we have to put in. He related that Reserve days costs 54 thousand plus a day and like the Mayor said the City Council is responsible for our call on what goes into this budget. He went on to say that if we tell the Mayor that he has to cut, then he has to cut, adding that the Mayor had asked for some help identifying where it needed to be cut and I just gave him that. Councilman Ray called for a question to the motion. ROLL CALL: Councilman Elliott, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Collins voted AYE. (0) NAY. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1578. Councilman Ray moved, seconded by Councilman Elliott to APPROVE Ordinance 1578 on SECOND READING and SUSPEND the rules and place Ordinance 1578 on THIRD AND FINAL READING. Councilman Traylor moved to AMEND Ordinance 1578 by reducing the Parks and Recreation expenditures by $540,000 for the Department to determine what it would be and the money would go towards building the Reserves. He explained that it is based on Councilman Collins’ numbers so it would basically add about 10 days in the Reserves; bring us to half of what it needs to be. Councilman Collins seconded the Motion. Mayor Fletcher said so you want to tell us what kids to kill and what kids to save basically when it comes to programs. Councilman Traylor replied have I said anything about killing any kids. Mayor Fletcher stated we are going to have to kill something when you kill half of a million dollars out of the budget; you come and tell the Mayor and the Parks Director that you are going to kill these programs. Councilman Traylor said there is a motion and second, can we vote? Mayor Fletcher replied if you call for question, you can. ROLL CALL to AMEND: Councilman Traylor, Smith, and Collins voted AYE. Councilman Elliott, McCleary, Sansing, Ray, Mashburn, Twitty voted NAY. MOTION FAILED. ROLL CALL to accept on SECOND and SUSPEND the rules for THIRD and FINAL READING: Councilman Elliott, McCleary, Sansing, Ray, Mashburn, and Twitty voted AYE. Councilman Traylor, Smith, Collins voted NAY. MOTION CARRIED to approve on SECOND READING. MOTION FAILED to SUSPEND the rules and place on THIRD and FINAL READING. 5 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. It was the consensus of the City Council to hold another special budget meeting Thursday, December 28, 2017 at 7:00 p.m. Councilman Elliott stated that he is not sure the budget would pass in two days without changes, adding there may not be any sense in meeting again before the first meeting in January. Councilman Twitty noted that since the City Hall offices were closed today, it did not give them an opportunity to visit with Finance Director Cheryl Erkel regarding any further questions. She stated that she had further questions she wanted to visit with Finance Director Cheryl Erkel in person. She added that she would like to have that opportunity to do so. Mayor Fletcher reminded Councilman Twitty that City Hall was open Friday following the previous City Council meeting on Thursday. Councilman Traylor posed the question for consideration between now and Thursday, saying when the auditors come and they present their report to the City, the one thing they say is we are lacking in our Reserves, telling us we need to get the Reserves up. He stated that the budget being presented does absolutely nothing to raise the Reserves, so what are we telling… Finance Director Cheryl Erkel interjected this does raise the Reserves. Councilman Traylor stated that the only reason it raises the Reserves is because we are lowering the revenue projections. Finance Director Cheryl Erkel answered no. Councilman Traylor questioned Finance Director Cheryl Erkel, where does it raise the Reserves. Finance Director Cheryl Erkel stated that the Fund Balance at the end of this year, which is the end of 2017, what I have estimated for that compared to what the estimated expenditures budget is. She continued that is what it compares to find out how many days in Reserves. Councilman Traylor confirmed with Finance Director Cheryl Erkel that we are going from 15 to 18 days. Finance Director Cheryl Erkel stated that with this budget it goes to 22 days. She then answered that it went to 18 before we made the $214,000 change. Councilman Collins questioned what is our goal regarding the number of days? Finance Director Cheryl Erkel related that the number of days we would like to have is 60 days, but there is no way we can come up with 60 days in one year. 6 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. Councilman Collins stated that we are not asking for it in one year. Councilman Traylor concurred, saying that no one has ever asked to come up with 60 days in one year. Finance Director Cheryl Erkel stated that this budget is at least getting us on the right track by giving us 22 days. Councilman Collins related that we are asking for you to get to 32 days; that is still barely half-way to the goal. Finance Director Cheryl Erkel related that we have gotten to this point over more than just one year and it is going to take more than just one year to get us back to where we need to be. She added that as long as we keep going in the route that we are going, we can increase those days of Reserves, because as our Fund Balance increases and our budgets decrease, that is going to increase the number of days. She related that this year it may be $54,000 per day, next year it may only be $40,000; it changes every year. Councilman Traylor stated that maybe he doesn’t understand, are we adding to the Fund Balance with this budget? Finance Director Cheryl Erkel answered yes, we are. Councilman Traylor questioned how? He pointed out that we are taking in 19,939 million dollars and we are spending 19,939 million. Finance Director Cheryl Erkel stated that on the revenues that she has projected, I have projected those revenues conservatively, very conservatively. I am sure that we are going to collect more revenues than what is in this budget and as long as we hold our expenditures to what is in this budget and below, we are going to have more revenues than expenditures; but we will not see that until the end of the year. She stated that our budgets have to be balanced where it shows the revenues equal the expenditures. Councilman Traylor stated unless you are adding to the Reserves in the budget. Finance Director Cheryl Erkel replied even if we do it to a Reserve account that means that it is an expenditure. Councilman Traylor pointed out but it would be going into Reserves. Finance Director Cheryl Erkel reiterated that it has to be listed as an expenditure on the budget. Mayor Fletcher stated that Finance Director Cheryl Erkel has figured a very conservative budget, purposely we did that, but also we are expecting a good 7 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. economy. We are talking about $100,000,000 in just schools in a two year period, bulk of it will be sent this next year with some other construction. We are anticipating a good year, but we did not base the budget off what we figured is going to be a positive year. We went really conservative for the good of all of us. He added this is not the first year that Parks has been cut, every year Parks has been hit harder than any Department, and those who sat in the budget meetings know that is true. So, to come in here and say to just cut it like that, it’s been cut and cut of a lot of stuff. I want to remind you of something; it is going to take more than schools to bring young families back to this City. It is going to take quality of life, a good example, Cabot spent something like $18,000,000 on quality of life parks and programs a couple of years ago. It is important to young families to have those things, and you talk about cutting the bulk of what you’re talking about without telling us what you want cut; that is not fair to anybody. What is important to one person is not important to anybody else. Councilman Traylor stated what is important to me is that we spend our money wisely, and we have Reserves that the auditors are asking us to have. Mayor Fletcher said and I think we do. Councilman Traylor continued saying that is what is important, I don’t see us cutting it out of Police, Fire, or EMS, the other Department are pretty lean as it is; where is the money if we are going to make a cut, it has to come out of Parks and Recreation. Mayor Fletcher stated and Finance Director Cheryl Erkel has told you what she has laid out, I have confidence in her, I remind you that we have every year talked about this. He added that we have plaques… Councilman Traylor stated get your Reserves up. Mayor Fletcher stated that he understands that, and Finance Director Cheryl Erkel is telling us how she is going to do that. He noted that we have a wall full of plaques that most cities don’t have - recognition of the financial practices of this City - one of the top there is. So to question her ability to know what she is talking about, that is not right. He then confirmed that the City Council would meet again Thursday, December th 28 at 7:00 p.m. APPOINTMENTS: ANNOUNCMENTS: 8 CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING DECEMBER 26, 2017 7:00 P.M. – 7:33 P.M. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:33 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 9