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19 OCT 28 special meetingCITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in special session on October 28, 2019 at the regular meeting place of the City Council. Council Member Ray delivered the invocation and Mayor Johnson led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: City Council Member: Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Collins answered ROLL CALL. Mayor Johnson also answered ROLL CALL declaring a quorum. PRESENT NINE (9) ABSENT (1). Council Member Sipes was absent. Others present for the meeting were: City Attorney Stephanie Friedman, Public Works Director Jim Oakley, Interim Police Chief McCollough, CDBG Director Theresa Watson, Human Resource Director Charlette Nelson, Finance Director Cheryl Erkel, Parks and Recreation Director Kevin House, Director of Downtown Planning and Development Bob Price, Patrick Thomas, Brian Blevins, interested citizens, and members of the press. PRESENTATION OF MINUTES: APPROVAL AND/OR CORRECTION OF MINUTES: CONSENT AGENDA: WASTEWATER DEPARTMENTS: WATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: ORDINANCE 1619 (#26-2019) AN ORDINANCE TO SET ADDITIONAL MILLAGE TAX RATES TO BE COLLECTED IN 2020 FOR THE CITY OF JACKSONVILLE, ARKANSAS DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. Council Member Ray moved, seconded by Council Member Collins to place Ordinance 1619 on FIRST READING. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Collins voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1619. Council Member Elliott clarified with Mayor Johnson that this proposed one mill will replace the one mill for the Library that is sun-setting. Mayor Johnson stated that as previously stated at the town hall meeting, the one mill he pays on his house is $30.82. He stated that the Library mill will automatically sunset. He related that back on January 31, 2019, approximately $490,000 was still owed on the Library, adding that it will automatically roll off when it is declared paid, it just goes away. He stated January 31st was before the money from 2018 had come in. He then noted that if Ordinance 1619 is passed the City will not collect until 2021. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. In response to a question from Council Member Traylor, Mayor Johnson explained that when the Bank, who is the trustee of the note, when the note is declared paid, it goes away, which will happen early next year. He then answered that it will not show up on that tax bill anymore. He stated that the mill is assessed in 2021 and collected in 2021. He explained that they open the books in March, which is for what was on the books the year before, so in March 2019 they open the books for the assessment of 2018 and it is due before October 15th of 2019. This would be on the books to be collected in 2021. He clarified that it will be assessed in 2020 but collected in 2021. He then added that in the next few months, the bank will deem the other one paid and it will just automatically fall off. Council Member Traylor questioned if in the Ordinance heading should it say be assessed in 2020 instead of being collected in 2020. City Attorney Friedman stated that it is established in 2020. It was the general consensus of the City Council to change the wording of in the heading of Ordinance 1619 from “collected” to “established”. Council Member Traylor asked what the basic dollar value of one mill would be. Mayor Johnson stated that it would be close to $400,000.00, adding that it would depend on new construction. Finance Director Cheryl Erkel stated that currently the one mill that we are collecting on the Library is bringing in close to $300,000.00, which is the same for the Fire and Police Pensions each. Mayor Johnson noted that as new construction occurs and the City grows, the millage collection will increase. He then related that the mill in Ordinance 1619 is designated for public safety equipment and construction. In response to a question from Council Member Traylor, Mayor Johnson concurred that public safety is defined as Fire, Police, and 911; but does not include garbage trucks which is Sanitation. Council Member Traylor stated that he is not sure about limiting Capital Project to just Police and Fire, suggesting that it should for the City. Mayor Johnson noted that the Sanitation Fund is an enterprise fund, which is supposed to fund itself. He then stated that it falls back to the General Fund if the enterprise fund is not self-sufficient. Discussion ensued as to having the mill be dedicated to just public safety when five years from now those immediate needs will have been served and there are other areas in the City regarding Capital Projects that could use the millage funds on a longer term basis. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Mayor Johnson clarified that the general consensus recommendation is to change it from public safety to Capital equipment and construction. Council Member Bolden concurred with having the mill serve more than just public safety. Council Member Traylor requested clarification as to whether both ordinances are independent of one another or is it one or the other. Mayor Johnson clarified that they are separate and both are being proposed for adoption, totaling 2 mills, one from each ordinance. Council Member Mashburn suggested that the ordinances be combined and put into the General Fund. Mayor Johnson stated that it was talked about, noting that the City will always have Capital Projects. Council Member Bolden questioned Finance Director Cheryl Erkel, asking if the flexibility of the funding and where the money is directed would limit the Mayor’s ability to use the funds in a different way. Finance Director Cheryl Erkel clarified that if it is voted to go into Capital Equipment or Capital Improvements, there is a fund set aside for Capital Improvements that can be transferred from there to whatever fund it is need to be used for. She stated that Capital Improvements is set aside and is not comingled with other Funds such as General, Street, or Sanitation, however whenever General, Street or Sanitation were to need that money for special equipment or a special construction project – that money can be transferred to that Fund and used to fund that project. She then answered Council Member Bolden that if the mill is dedicated to the General Fund then it can go to any Department that is funded by the General Fund but it wouldn’t be able to be used on Street, Sanitation, Shooting Range, or the Ambulance Service. Council Member Collins recalled that at one time we had looked at there being a lower limit, because you cannot spend funds out of Capital unless it reaches a certain threshold. He asked if he was confused? Finance Director Cheryl Erkel said yes, there is a purchasing rule that anything over $20,000 has to be brought before the City Council and it also has to be let out for bid. There is no minimum threshold regarding a Capital project. Mayor Johnson noted that roof repairs could be considered a Capital project. Council Member Traylor stated that he understood from the town hall meeting that the Library millage would be coming off the taxes, adding that he does CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. not have a problem with transferring that mill so that it can continue to be collected. He stated that now we are talking about not only that mill but adding an additional mill. Mayor Johnson stated that is the next discussion, do we want to raise taxes because that is what the next ordinance would do. The first mill would keep taxes the same and the second proposed mill would raise taxes. Council Member Traylor stated that he feels the issue of raising taxes should be discussed before approving Ordinance 1619 as is, saying that we may want to change Ordinance 1619 to incorporate a little of both. He stated that it doesn’t have to be one mill, it could be 1.25 mills with .75 going to Capital and .5 going to General Fund. Mayor Johnson stated that he would ask for a motion to suspend the rules to discuss Ordinance 1620 so that could be part of the current discussion. He went on to say that if we decide to go to 1.5 mills for the General Fund on Ordinance 1620 then we could kill Ordinance 1619. He stated that he needs a motion to suspend the rules and put them in reverse order. Council Member Traylor stated that we could just kill Ordinance 1620 rather than 1619. Council Member Ray pointed out that there is already a motion to place Ordinance 1619 on first reading. Council Member Traylor moved, seconded by Council Member Twitty to amend Ordinance 1619 by changing the one (1) mill to one and a quarter (1.25) mills with .75 going into Capital Improvements and .5 going to General Fund to eliminate the need for Ordinance 1620. Mayor Johnson stated that if this passes he will pull Ordinance 1620. Council Member Traylor stated that it might be “cleaner” if you make Ordinance 1619 .75 mills and Ordinance 1620 .5 mills. Council Member Ray stated that he feels that might offer some problems down the road. He suggested that we continue with Ordinance 1619 just as it is written and either pass or amend each one of them. He stated that it might present legal problems with a motion already approved on Ordinance 1619 regarding the first reading. Council Member Traylor offer that he would amend his motion to amend Ordinance 1619 to .75 mills going to Capital Improvement. Council Member Elliott stated that he would like to keep the one mill separate from any additional millage. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Council Member Traylor stated that he is thinking that Ordinance 1620 could be .5 mills instead of a mill, noting that we would still be going up .25 in mills. Council Member Bolden clarified that the one mill for the Library is sun setting, so the proposed action is to reinstitute a new mill in place of the Library mill because the Library millage is nontransferable. He stated that he agrees with Council Member Ray, we need to deal with the one mill proposed by Ordinance 1619 and then move on to Ordinance 1620. Mayor Johnson proposed that Ordinance 1619 be made for .75 mills and .25 to the General Fund and then we can deal with Ordinance 1620 at whatever level we decide. Further discussion ensued as to how to handle each ordinance regarding Ordinance 1619 already being on first reading and any proposed amendments. Council Member Traylor rescinded his motion. Council Member Mashburn seconded the motion. Previous motion with a second did not have a voice vote or roll call vote taken, second motion DIES for lack of a second and no voice vote or roll call vote was taken for this motion. Council Member Traylor moved to amend Ordinance 1619 to read .75 mills dedicated to Capital Improvement and Equipment. Council Member Mashburn seconded the motion. Mayor Johnson announced that MOTION CARRIED by voice vote with Council Member Ray, Twitty, and Smith voting NAY. Council Member Traylor moved, seconded by Council Member Bolden to approve Ordinance 1619 on FIRST READING and SUSPEND THE RULES and place Ordinance 1619 on SECOND READING as AMENDED. ROLL CALL: Council Member Elliott, Bolden, Sansing, Mashburn, Traylor, and Collins voted AYE. Council Member Ray, Twitty, and Smith voted NAY. MOTION FAILED. Mayor Johnson questioned if this means that the Ordinance reverts back to how it was written prior to the amendments. Council Member Ray concurred. Council Member Elliott clarified that it passed as written on first reading. It was clarified that Ordinance 1619 failed to suspend the rules and be placed on second reading. Council Member Ray moved, seconded by Council Member Collins to approve Ordinance 1619 on FIRST READING as written and SUSPEND THE RULES and place Ordinance 1619 on SECOND READING. Council Member Elliott stated that he still feels that Ordinance 1619 should be dedicated to Capital equipment and construction. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Council Member Traylor asked Council Member Ray if his objection is because of the amount or changing the fund. Council Member Ray reiterated that he likes the Ordinance 1619 as written. City Clerk Davitt asked for clarification whether the part of the previous motion to amend passed. Mayor Johnson stated that it passed to amend it, then it didn’t pass. Mayor Johnson then pointed out that Council Member Traylor rescinded his amendment. Council Member Elliott clarified that the amendment passed and could have passed on first reading but not to suspend the rules and place on second reading. City Clerk Davitt concurred. Council Member Traylor confirmed with Mayor Johnson that this has to be accomplished by October 31st. He offered that it could be voted on to approve first reading and we could come back tomorrow and try again. Mayor Johnson asked City Attorney Friedman if we could act on the Ordinance as is. City Attorney Friedman concurred. Council Member Mashburn asked Council Member Ray why it couldn’t be put under Capital Improvement, noting that as written is limited. Council Member Ray stated that he is concerned that it would cause problems by adding to what we have. City Attorney Friedman questioned if he was concerned about Robert’s Rules of Order. Council Member Ray concurred. Council Member Traylor stated that if there was not room for discussion regarding amendments it wouldn’t be in Robert’s Rules of Order. City Attorney Friedman concurred, saying that amendments are allowed. Mayor Johnson opened the floor to hear from Patrick Thomas. Patrick Thomas stated that he wanted to remind everyone that last Thursday night, Council Member Collins asked who wanted new taxes. He stated that it would be deceptive to have had a meeting last Thursday night and no one wanted any new taxes. He stated that it would be his suggestion that the second Ordinance be voted down. He then added that the first Ordinance, from CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. the people he talked to, would be okay with the first Ordinance with one exception. He stated that if you approve this to go into public safety, then you have limited yourself to just public safety. He continued saying that if you could put it in the General Fund so it can be used anywhere, then that would be my suggestion. He stated that there is no doubt that the Police Department needs pay raises, and it’s no doubt that it has already been talked about that all City employees would like to have a pay raise. You are making a political mistake as office holders in this community by now just simply saying that we are going to put it in public safety. Council Member Bolden clarified that this discussion is not about pay raises. Mr. Thomas stated that he understands that, but he is just making an observation. You are cornering yourselves by using the phraseology of “public safety”. I think you should put it in the General Fund and then it is good for everybody. Just like pay raises should be for everybody, this money should be for everybody. If you will amend this so that it is not just public safety but for everybody, I think the citizens will acknowledge that as being a wise decision. Keith Weber stated that as a citizen he would say – go for both mills but promise that when the Internet Sales Tax comes in, lower the Sales Tax. When you start getting that early million in reserves, bring the Sales Tax down and get people to come to town and shop, be cheaper than Sherwood or Cabot. In response to a question from Council Member Collins, Mayor Johnson stated that the way Ordinance 1619 is written the Construction would have to have something to do with public safety. Council Member Traylor moved, seconded by Council Member Bolden to approve Ordinance 1619 on FIRST READING as AMENDED. Clarification requested Ordinance 1619 has passed with amendments on FIRST READING but FAILED to be placed on SECOND READING. City Attorney Friedman agreed that Ordinance 1619 has been approved on FIRST READING as AMENDED. Council Member Collins questioned that for this is to advance before the end of the month are we coming back tomorrow. Mayor Johnson stated that the other option would be to amend 1620 and pass it. Council Member Collins stated that he is pretty sure he seconded a motion to remove the amendment. City Attorney Friedman stated that the first one was 1.25 and .5. Mayor Johnson stated that it went back to one mill .5 and .25 that was approved and that is what we… CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Council Member Bolden asked City Attorney Friedman to read Ordinance 1619 the way it was just approved, so we all have the same understanding. City Attorney Friedman stated that her understanding is that it went back to .75 mills for Capital Improvement. Council Member Bolden then confirmed with City Attorney Friedman that the wording of “collected” was changed to “established”. City Attorney Friedman concurred. Mayor Johnson stated that if we did something with Ordinance 1620, then we could talk about Ordinance 1619 on another day. b. ORDINANCE 1620 (#27-2019) AN ORDINANCE TO SET ADDITIONAL MILLAGE TAX RATES TO BE COLLECTED IN 2020 FOR THE CITY OF JACKSONVILLE, ARKANSAS; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Council Member Ray moved, seconded by Council Member Traylor to place Ordinance 1620 on FIRST READING. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Collins voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1620. Mayor Johnson noted that Ordinance 1620 goes to the General Fund. He then clarified that it is established not collected in 2020. He added that it is collected in 2021 same scenario. He related that at some point we can come back and kill 1619 if that is the consensus. City Clerk Davitt requested a motion if it is the City Council’s desire to change the wording in Ordinance 1620’s heading. Council Member Bolden moved, seconded by Council Member Mashburn to change the wording of “collected” to “established” in the heading of Ordinance 1620. MOTION CARRIED. Council Member Traylor stated that he would like the Council to consider changing Ordinance 1620 from 1 mill to .5 mills designated for the General Fund. Mayor Johnson addressed Council Member Traylor who acknowledged he realizes the risk. In response to a question from Council Member Bolden, Mayor Johnson clarified that the risk is the same with Ordinance 1619 without enough votes to place Ordinance 1620 on second reading. It was clarified that if Ordinances 1619 and 1620 pass as amended it would be 1.25 mills. If Ordinance 1619 does not pass and Ordinance 1620 does pass, then it would be .5 mills. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Council Member Sansing stated that we were discussing dropping Ordinance 1619, which would mean that the one mill tax for the Library just fall off and we are talking about putting an additional one mill on 1620. He questioned making Ordinance 1620 1.5 mill and just drop off Ordinance 1619. We actually increase the total tax burden only .5 mills. He stated that the millage rate affects how much we get back on the State Turnback for the Internet Tax that we have not been getting a lot in. He added that he is not prepared to go any higher than a .5 increase without us discussing and taking off part of the general tax. He stated that when Tommy Swaim was Mayor and we dropped off the 5 mill tax from the City, we did it in trade for a 1% Sales Tax. He stated he does not mind working back that millage but not without taking the 1% off, adding he is aware that is not the current discussion. He said he is saying that if we can drop off 1619 and make 1620 1.5 mills for general funds and use it to set up the language for whatever we need to, we can divide it up in that but just have one ordinance and maybe simplify some matters. Council Member Elliott stated that Council Member Traylor was suggesting a total of 1.25 mills not 1.5 mills. Council Member Sansing stated that he is proposing 1.5 mills. He added that he believes with the shape of the General Fund, a half mill…, the Mayor’s house is $15.00 dollars per year. Mayor Johnson concurred. Council Member Sansing said is saying get us something right now but if you discuss going further, then we are going to have to trade a Sales Tax for it. Council Member Traylor stated that he would support Council Member Sansing if we would go .75 and .5 for a total of 1.25 mills. Council Member Sansing stated let’s see which one goes. Council Member Traylor added doing it in Ordinance 1620 and killing 1619, all in one. Council Member Sansing stated that he was thinking, just do it all in one, let Ordinance 1619 drop by the wayside. He added take care of the business of Ordinance 1620 tonight and see what the majority of the Council wants to go with 1.5 or 1.25 mills. Council Member Bolden stated that he could see dropping Ordinance 1619 and going with Ordinance 1620 in the General Fund. In response to a question from Council Member Bolden, Finance Director Cheryl Erkel stated that if it is put in the General Fund it would be restricted from Street, Sanitation Funds, or Shooting Range. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. Council Member Sansing stated that the other Funds have their own depreciation funds to fund them. Council Member Elliott questioned if Council Member Traylor had made a motion regarding Ordinance 1620. Council Member Collins stated that there is an amendment currently for this to be at the lower rate. City Clerk Davitt stated that she is not aware of an amendment motion on the floor. It was clarified that the only amendment made and passed was to change the wording in the heading of Ordinance 1620. Council Member Traylor moved, seconded by Collins to amend Ordinance 1620 to .50 mills to be dedicated to the General Fund. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, and Collins voted AYE. Council Member Twitty, and Smith voted NAY. MOTION CARRIED. Council Member Traylor moved, seconded by Council Member to APPROVE Ordinance 1620 on FIRST READING and SUSPEND THE RULES and place Ordinance 1620 on SECOND READING as AMENDED. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, and Collins voted AYE. Council Member Twitty, and Smith voted NAY. MOTION CARRIED. Council Member Traylor moved, seconded by Council Member Sansing to further SUSPEND THE RULES and place Ordinance 1620 on THIRD AND FINAL READING. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, and Collins voted AYE. Council Member Twitty, and Smith voted NAY. MOTION CARRIED. Council Member Ray moved, seconded by Council Member Traylor to APPROVE AND ADOPT Ordinance 1620 as AMENDED. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, and Collins voted AYE. Council Member Twitty, and Smith voted NAY. MOTION CARRIED. Council Member Ray moved, seconded by Council Member Traylor that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Council Member Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, and Collins voted AYE. Council Member Twitty, and Smith voted NAY. MOTION CARRIED. ORDINANCE 1620 (#27-2019) APPROVED AND ADOPTED THIS 28th DAY OF OCTOBER, 2019. Mayor Johnson stated that the ½ mill has passed and Ordinance 1619 will be brought back at a later date. He stated that he would find out all the legal ramifications that can be done. CITY OF JACKSONVILLE SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2019 6:00 P.M. – 6:51 P.M. APPOINTMENTS: UNFINISHED BUSINESS: NEW BUSINESS: ANNOUNCEMENTS: ADJOURNMENT: Without objection, Mayor Johnson adjourned the meeting at approximately 6:51 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR BOB JOHNSON City Clerk-Treasurer