Month 1997-6 June
Meeting of 1997-6-05 Budget Meeting
LAWTON CITY COUNCIL SPECIAL MEETING
JUNE 5, 1997 - 5:30 P.M.
WAYNE GILLEY CITY HALL COUNCIL CHAMBER
John T. Marley, Mayor, Also Present:
Presiding Gil Schumpert, City Manager
Felix Cruz, City Attorney
Brenda Smith, City Clerk
The meeting was called to order at 5:30 p.m. by Mayor Marley.
Notice of meeting and agenda were posted on the City Hall
bulletin board as required by State law.
PRESENT: Jody Maples, Ward One
Richard Williams, Ward Two
John Purcell, Ward Four
Robert Shanklin, Ward Five
Charles Beller, Ward Six
Carol Green, Ward Seven
*Randy Warren, Ward Eight
ABSENT: Jeff Sadler, Ward Three
*Warren entered at approximately 6:40 p.m.
CONDUCT REVIEW OF PRELIMINARY FY 1997-98 CITY OF LAWTON BUDGET
Schumpert said a list of budget revisions had been distributed.
Revisions reflect deletion of the proposed fifty cent utility
rate increase, addition of a microfilm reader printer for the
Library, and funding for renovation to the south City Hall
entrance. Funding shortage is $336,000.
Information was distributed on commercial water accounts.
Increasing the rate to ninety-three cents, which is the cost of
treating and distributing the water, would generate $34,746.
Financial impact of further increases was also reviewed.
Information was distributed on commercial sewer accounts.
Increasing the cost to ninety-nine cents, which is the cost to
collect and treat the wastewater, would generate $184,000.
Financial impact of further increases was also reviewed.
Information was distributed on cost of $69,000 for the large
format utility bill. Cost to print information on the back of the
current bill was discussed as being very minimal.
Schumpert said another document had been provided regarding the
sewer rehabilitation program of $60 to $62 million. Regardless of
the amount of time Lawton is given to do this work, one of the
approaches could be to use a bond schedule; interest rate is
shown at 4% which is not a true figure in that if funds were
obtained through the Water Resources Board through the SRF
program, we would pay around 6 to 7% in todays market, but for
40% of the funds borrowed, there would be no interest payment, so
the overall rate to allow for computation is shown at 4%. If a 20
year loan is established, $6 million would be borrowed each year
for 10 years. If that were applied directly to the utility bill,
it would start out at about $1.32 per month, going to the year
2009 to a maximum of $11.27, then back down to the last bill in
2026 to seventy-six cents. He said that is one option. Shanklin
said the amount of time to make repairs is unknown. Schumpert
said this is without regard to that time frame because it is for
borrowing $60 million over a ten year period, borrowing $6
million per year for ten years, but taking 20 years to pay it
back. Williams said inflation plays a part in this also.
Schumpert said a document was provided on the porch/sidewalk
replacement at the south end of City Hall. Including personnel
costs, which would be paid anyway, it would be around $10,000 to
do this in-house. Using City employees would set back 30-36
locations currently in need of repair, and there are 391 such
sites at this time. A contractor looked at going all the way back
to the building and reconfiguring it totally and the cost would
be around $30,000. Schumpert recommended contracting it out.
Purcell agreed it would be better to contract the work. Shanklin
said City crews may not have the proper equipment to do such work
but felt it should be done in the most economical manner.
Schumpert said a report was provided on the microfilm reader
printer. Cost of use for a treated paper machine vs. a regular
paper machine goes from 15 cents per copy to one cent. The
machine will cost $15,000 and that amount has been included in
the shortfall amount. Shanklin asked the age of the current
machine. Marion Donaldson, Head Librarian, said 11 years. New
machine would likely generate more use as the old machine
produces poor copies.
Schumpert said the next sheet shows the 14 playgrounds in need of
equipment; Harrell Park is shown as priority one. Final sheet is
an explanation of arts and humanities projects showing where
funds would be spent.
Schumpert said a request was received for a list of all City
property with recommendation of what should be sold. He said such
a list does not exist and staff will be working on this.
Maples spoke in favor of transferring $15,000 from Albert Johnson
Park to Harrell Park, and pointed out the prioritized list was in
agreement, as was Beller. Beller said he would support that
because the City does not own Albert Johnson Park, but leases it
from the Board of Education. Beller said he would like to see as
much improvement at Albert Johnson Park as possible, and the area
residents have put in work and their own money to upgrade it, but
that Harrell Park would probably benefit more people, and until
the City receives clear title to Albert Johnson Park, we should
watch how much money is put into it.
Shanklin asked how the Naming Committee had the authority to
rename Albert Johnson Park if it is not owned by the City.
Schumpert said the Board of Education participated in the naming
and agreed. Beller suggested pursuing the land swap with the
Board of Education, and perhaps the funds could be restored when
the City gets title to the property.
Williams asked if any repairs are planned in the budget to any of
the parks. Dick Huck, Parks & Recreation Director, said the list
is broken into two areas; inadequate playground equipment, and
accessories. Huck said none of the 14 parks are included for
major improvement, other than minor repairs, and most of those
areas have no major pieces of play equipment.
Williams asked what a major piece of playground equipment is.
Huck said from $12,000 to $15,000, for example, the south end of
Kathy Newcombe Park was about $14,000, and Liberty Heights Park
was $18,000 to $20,000. Williams asked what was considered as
accessories. Huck said sidewalks, backstops, basketball courts,
Green asked if Harrell Park has anything in it. Huck said it has
a few old pieces of equipment and a tennis court, but no major
improvements have been made in at least the last 17 years. Green
asked if Albert Johnson Park had anything in it. Huck said the
equipment in Albert Johnson Park was relocated from a park
immediately to the east of the subdivision; the backstops, and
possibly the soccer goals, were built by the public schools;
trees were donated by Albert Johnsons friends, and the
neighborhood association has made improvements as far as adding
trees and benches; the City has put in some benches. Green asked
if Albert Johnson Park had any play equipment. Huck said it has a
slide, merry go round, swing set, and maybe a couple of small
horses. Huck said they are going to modular play equipment which
is safer, has a better life expectancy and requires less
Purcell said the park at NW Columbia and Euclid is shown as
second on the list but the other park recommended in the budget
was Woodland Hills Park. Huck said the City received petitions
from Terrace Hills residents and Woodland Hills PTA and
neighborhood requesting enhancements, and that was the reason
those two parks were shown for funding. Beller said Woodland
Hills Park is adjacent to a school, receives a tremendous amount
of use during the day and the equipment is obsolete. Huck said
crews worked in the park during the winter to remove obstacles
from the sidewalks and repaint some of the old equipment, and
looked at what equipment would be needed to serve the school and
the park. Pre-school type equipment is needed.
Purcell said the top of the modular equipment is metal, which
gets very hot quickly. Huck said new technology has been
developed that uses more plastics which reduces the heat factor.
Maples requested a consensus from Council to switch the $15,000
from Albert Johnson to Harrell Park. Beller said he would second.
Members raised hands in favor.
Williams said Waldman Park is shown in need of funding and asked
if qualified for CDBG. Huck said that would be included in the
1998 proposal to Community Development; the park contains a
wooden, modular unit installed in the 1980s. Waldman Park is at
13th & J, referred to as a tot lot, near a trailer park and
several duplexes. Shanklin said the trailer park was closed.
Mayor Marley said a consensus was needed on the water and sewer
Purcell said on commercial water rates, the budget reference
notes show 12 of 20 other cities to be higher than Lawton on
50,000 gallons usage. He said the very low commercial rates have
been picked up by residents in the past because some commercial
accounts are being charged well below the cost to produce the
water. Purcell said if rates are increased to ninety-three cents,
as a minimum, there is $34,000 more revenue. He said he did not
think it should be raised only to the minimum, and that the
ninety-three cent minimum plus one percent would raise
approximately $40,000. Purcell suggested increasing the rates to
ninety-three cents plus an additional 4%, which would raise
approximately $57,000 in revenue. He said Lawton would still be
no where near the top of the rates cities are charging commercial
accounts for water.
Williams said he had looked at this also, using 5% in addition to
the ninety-three cents. He said Lawton would still be around 13
or 14 from the bottom as far as charges. Purcell said it should
be above the cost to produce, whether it is raised 4% or 5% above
that minimum. Purcell said it is important to get this on line
before more businesses come in who will use the commercial rates
and that is the Citys only way to make money; a business would
not be able to stay in business selling their product for less
than it costs them to make it.
Shanklin asked if the Citys cost is ninety-three cents per
thousand for the water treated at Medicine Park. Schumpert said
he understood the ninety-three cents included delivering the
water to the City limits of Lawton; the $1.03 discussed regarding
Geronimo included taking it through the distribution lines,
amortizing the lines, and taking it to the south end of Lawton.
Shanklin said we never said we would sell water to Geronimo for
$1.03 but that his memory was over $2.00 per thousand. Schumpert
said the last figure he remembered was $1.52.
Purcell asked for a consensus to raise commercial water accounts
5% above the ninety-three cents, which will generate $63,846
Maples asked if this would change those who have a contract, such
as Goodyear. Schumpert said those would depend on the contract
and may need negotiation. Purcell said this would put us in line
for Bar-S, the prison, or any others that come through.
Shanklin said he would comment, before seconding the motion, that
the Council should re-evaluate everything it said "do it", to see
which will really be done because he doubted they would all be
done. Williams said funds are included in the $300,000 shortage.
Shanklin said he had a problem with the reserve officer program
for $40,000. Williams said he understood Shanklins concerns
about the liability but personally felt it was a good deal. Mayor
Marley asked that consideration be given to the water rates under
discussion, and then go through to see which of the listed items
should be done.
Mayor Marley asked those in favor of a consensus regarding
commercial water rates to so indicate by a show of hands. A
majority of members present so indicated.
Green asked what other cities were higher than Lawton. Purcell
said Ardmore, Del City, Duncan, Edmond, Midwest City, Moore,
Oklahoma City, Ponca City, Shawnee, Stillwater, Tulsa and Yukon.
Shanklin asked if he was referring to the 10,000 gallon users and
Purcell said the 50,000 gallon commercial accounts.
Schumpert said on the sewer, the note shows government and
schools are billed at the commercial rate for sewer.
Purcell said the same problem exists on the sewer rates. He said
there are 18 cities higher than Lawton on sewer rates, and only
one city in the entire list of 20 charges less than Lawton for
sewer and that is Altus, which likely will change soon. Purcell
said the cost to Lawton is ninety-nine cents per thousand, and
the charge should not be the same or less than the cost.
Purcell suggested using the ninety-nine cents, which would
generate $184,000, and a 5% increase, for a little over $200,000
in revenue. He said this is only for commercial, and none of what
he was suggesting applied to any residential unit.
Purcell asked for a consensus to increase the sewer rates for
commercial to ninety-nine cents, plus 5%, which would generate
approximately $202,180.62. Those present were in agreement.
Williams said Lawton would still be about 14 on the list of 20
cities on such charges.
LARGE FORMAT UTILITY BILLS
Mayor Marley asked if Council desired to fund the large format
utility bills. Williams said he favored this item, but the cost
would be $50,000 if some of the equipment were rented and $69,000
if it were purchased, and there would still be a tremendous
expense just in postage. Williams said he felt there was a need
to improve communications between the City and the citizens in
the best format possible, and through the electronic media and
InterNet there would be increased possibilities that could
provide information. He suggested placing this idea on the shelf
for the present time. Mayor Marley suggested putting information
on the reverse side of the bill and see how it works out.
Schumpert said that would be a reduction in the budget of
FIFTY-CENT RATE INCREASE
Mayor Marley said the suggested fifty cent utility increase in
residential accounts had been deleted from consideration.
Williams said even though this will not be done, the City will
incur costs in 1997-98 that were not present in 1996-97, such as
the additional cost of Waurika, additional cost for self-insurance, and the fact that 70% of the budget
is for personnel,
who are increasing through their steps, those are items that
there are little control over, so you either reduce the number of
streets, lines you work with, or you increase rates. He said a
big step is being taken in getting the commercial rates where
they should be, but it is something that needs to be looked at.
1% COLA - GENERAL EMPLOYEES
Mayor Marley said the capital outlay had been addressed. He asked
if Council agreed to the 1% COLA for general employees for
$155,518. Beller moved for consensus of leaving this cost in the
budget and Williams offered a second; there was no disagreement.
It was pointed out that all actions at this time are preliminary
in nature and would be finalized with budget adoption.
Shanklin asked if capital outlay was reduced $300,000. Schumpert
said yes. Shanklin asked if that was from rolling stock or from
the regular budget. Schumpert said from the regular budget which
includes general fund and rolling stock. Shanklin asked if some
was cut from the rolling stock. Purcell said we did not cut any
from the rolling stock dollars; some vehicles were paid for from
the rolling stock and some from the budget. Purcell said there
are vehicles paid for by rolling stock and vehicles paid for from
the rest of the budget; we cut vehicles that roll down the street
from the regular budget but not from rolling stock.
Shanklin asked if the pumper was included to be purchased.
Purcell said it is still there. Shanklin said we are going to buy
a new pumper whether a dollar was spent on it last year or the
last 40 years because we want to buy a new pumper and he
disagreed with that. Beller suggested taking a consensus on the
pumper. Shanklin said just because it is shown in the 2020 plan
that we should have one, he wanted to know what had been spent on
it for upkeep and maintenance, regardless of the age of the
equipment. He said he saw a fire truck, ambulance and police car
all going at high speeds and that it was dangerous to have so
many operating in the same area under that condition.
Shanklin asked that we get a consensus to see how much money, to
include the bills, on what was spent on the pumper before it is
purchased, just because we have the money to spend. Purcell asked
that the mileage be shown also. Consensus was obtained to receive
ADJUSTMENT FOR CAPPED OUT EMPLOYEES: Mayor Marley asked if
Council favored the 2.5% increase for capped out employees.
Schumpert asked for clarification of whether the 2.5% would be in
addition to the 1% COLA, or only the 2.5% increase. Purcell said
he thought it should be both and that it applies to only 20
employees, some who have been capped out for more than a year.
Shanklin said he thought 1% for everyone was fair, but giving
some 2.5% was not. Purcell said everyone would be getting 2.5%
plus 1%. Williams said most who are capped out are professional
people and it would take quite a bit of money and time to fill
Purcell offered a consensus motion for capped out employees to
receive 2.5% plus 1%. Beller seconded. Consensus was reached to
include this in the budget to be later adopted.
Mayor Marley said the City Clerks contract had been approved and
separate action was not necessary.
Consensus was reached to include $21,390 for the police dictation
system and $28,900 for surveillance system-vehicle for police.
Reserve officer program was discussed. Shanklin said he felt
something was wrong when 20 people would pay you to go to CLEET
and volunteer 20 hours a week, that is above and beyond
volunteering. Shanklin said he disagreed with the program and
people get in trouble with such things.
Williams offered a consensus motion to accept the reserve officer
program and Purcell seconded. Consensus was not reached and the
item will be considered at a later date. Maples said she had
abstained from any actions on this item.
COPS grant was discussed; future years funding was pointed out as
a problem. Beller offered a consensus motion to scratch the
program and Shanklin seconded. Schumpert said the theory was that
the City would have increased the police force by four people by
the year 2001 anyway. Beller said the City would be obligated to
do so by accepting this funding, and the City may be in a
financial bind in the year 2001. Shanklin said attrition is not
factored in. Consensus could not be reached and the item will be
considered at a later date.
CITY ATTORNEY BUDGET - LEGAL ASSISTANT: Williams offered a
consensus motion to include $35,570 in the budget for this item
and Purcell seconded. Consensus was to leave funding in the
budget for this item.
PUBLIC WORKS/ENGINEERING: Part time clerk changing to full time
clerk at a cost of $7,000 was left in for funding by consensus.
Inspection fees projected to produce $10,270 in revenue was
discussed and will require future Council action to enact.
MIS DIVISION - ADD EMPLOYEE: Purcell suggested this be increased
to adding two employees; Council had added to the work load by
approving incentive items and the Year 2000 requires serious
attention. Shanklin said one additional employee was approved
last year. Purcell said there are a lot of system that must be
reprogrammed by the Year 2000. Consensus was to approve two
employees for MIS. Total added would be $60,160 instead of
MUNICIPAL COURT - ADD DEPUTY COURT CLERK: Consensus was to
WATER TREATMENT PLANT: Mayor Marley said cost for six months will
be $15,530 and it would be included for a full year in next
years budget. Shanklin said the cost of having these services
done will not be required if the employee is added. Consensus was
to include funding.
Waurika Project, $9,200 additional, was due to a recomputation of
billing. There was not an option as to this requirement.
PERSONNEL: Automated employee application program for $5,000 was
explained by Schumpert and accepted by consensus. It was noted
that this expenditure may help prevent the need to add employees
in the future.
Supervisory training academy at $10,000 was explained by
Schumpert. Beller said attendance should be mandatory. Consensus
of four to two to approve was acknowledged.
AUDIT: $3,500 purchase of data extraction software was approved
FINANCE: Vending devices, revenue of $35,000. Shanklin asked if
this was for the units which have never had a tax on them since
the City had that opportunity in 1988. Steve Livingston, Finance
Director, said $35,000 is based on going to all State-allowed
rates; some amusement devices now pay $20 and those would go to
$37.50. Livingston said some vending devices now selling products
are not paying anything and if they are a twenty-five cent
machine, they would go to $37.50. Recommendation is to completely
parallel the State in definitions of the types of equipment to
avoid confusion over what type of equipment is charged what rate.
Highest rate would be $37.50; gumball machines and similar small
machines would be $5.00.
Shanklin said one group had been let off for ten years and that
group should be paying, although it would not generate $35,000.
He said there are vending machines in schools and fees are not
being collected from them. Oklahoma City does not charge the 75%.
Beller said if it vends a product, something should be paid since
there is no sales tax collected. Shanklin said it should be only
for those machines not being taxed by the City at the present
time, and they should be charged $20, in line with the other
Williams asked which machines are not being assessed. Shanklin
said those dispensing Cokes, candy, chips, or those installed in
restrooms, etc. Beller said any machine which dispenses a
product, they pay nothing now. Williams asked which are being
assessed. Beller said amusement devices, pool tables, and so
forth. Williams asked how this would impact those who are already
being assessed a fee. Livingston said they would be increased
from $20 to $37.50. Beller said Mr. Gattis recently opened on
Cache Road and has a number of these machines; there was also
turmoil concerning the possibility of competition with Fort Sill.
Shanklin said those who have not been paying should pay the same
as those who have been, which is $20.
Purcell said amusement devices pay $50 State and $20 City now; if
this is raised, they would pay an additional $17.50 City, or a
total of $87.50 per year per amusement machine, which is less
than a tax on the revenue from the machines. Shanklin said it
would for some machines, but not for others. Shanklin said the
crane machines, which reach for dolls or similar items, are not
legal in this state.
Beller made a motion to keep the $20 charge permit fee on the
amusement devices and put a $20 fee on a vending machine that
dispenses any type of merchandise. Shanklin seconded.
Warren asked how this would affect bubble gum machines. Cruz said
some machines are charged $50 at the State level and cities can
charge 75%, which is $37.50; machines such as soft drinks and gum
are charged either $10 or $5 by the State and Lawton can charge
75% of that. Cruz said it would be a percent, rather than an
amount. Schumpert said that is not the motion. Beller said that
is the intent of the motion, to go to the vending machine with
the maximum amount of increase to be $20, and asked if we can
increase it to $20. Cruz said we must do it based on a maximum of
75%. Beller said it would be 75% of the State fee for those
machines not presently being taxed. Mayor Marley said some would
be paying more than $20 in that case.
Beller amended the motion to be 75% of the State fee for those
machines not presently being taxed, not to exceed $20 per
Williams asked what kind of machines pay the $50 State
assessment. Shanklin said those in the schools, or jukeboxes or
pool tables. Cruz said the $50 is based on amusement devices or
music devices; the fees on vending devices are $10, $5 or $2.
Livingston said the State regulation is that cities can charge
anything not to exceed 75% of the States fee. Williams asked
what the $35,000 was based on. Livingston said it is an estimate
on the 75% rate, and that he did not know how many drink or
sandwich machines there are, but there are 980 amusement devices
the City currently collects $20 from and that the $35,000 was a
Mayor Marley left the meeting at this point (6:50 p.m.
approximately) and Mayor Pro Tem Beller chaired the remainder of
Cruz reviewed requested action as being that the amusement
devices currently being charged $20 would continue to be charged
$20; other that have not been charged to date, we will charge
them the maximum allowed by State law, not to exceed $20 maximum.
This was agreeable and will be presented for formal adoption in a
future agenda item.
REFUSE CHARGE - LAWTON PUBLIC SCHOOL
Shanklin and Green suggested this idea be abandoned. Discussion
was held regarding programs and facilities provided by the City
and the school system, and charges appropriate for each. Shanklin
said the school system needs to install grease traps, and that
there had never been a meeting between the School Board and
Council to discuss such issues. Williams suggested a joint
session be held of representatives from each group to see how we
could work together on grease traps, recreation programs, or
issues of concern to the School Board. Maples suggested Cameron
Purcell said if Lawton does not charge the schools for the
recreation, gyms, and so forth, why are we charging Cameron for
refuse service and other places which are governmental entities.
Shanklin said he did not own Cameron like he did the Lawton
Public School system, and there is a great difference. Purcell
said both are supported by tax dollars and asked where this
should stop, noting we should have some kind of consistency.
Green moved that the charges be taken off at this time; Shanklin
seconded. Consensus was to take the charges off.
Bar-coding utility bills, reorganizing Revenue Services and
purchase of buyers link software were approved by consensus.
Staying healthy award resulted in no addition or expenditure of
revenue. Schumpert said employees are annually paid for sick
leave over a certain number of hours accrued, and those leaving
City employment are reimbursed percentages for sick leave
accrued. Beller said the time off would be for not filing a
health claim. Dan Tucker, Director, said preventative care would
not be counted in determining whether a person would get the time
off award. Schumpert said claims are turned in for preventative
measures, which are a cost to the City. Tucker said there would
be less cost in preventative items. Schumpert said the system
does not have the ability to determine the difference because all
are counted as claims against the system. Consensus was not to
enact the program.
Late charge inspection fee projected to provide $250 in revenue
was approved by consensus. Objective is for those who have had
inspections to pay their fees in a timely manner.
PARKS & RECREATION
Add two full time laborers and delete five part time laborers at
a cost of $18,923. Shanklin asked if this was for the ball
diamonds. Huck said yes, Sports and Aquatics. Consensus was to
Microfilm reader printer was approved by consensus.
South entrance to City Hall was discussed. Beller said he was
with a man from Hughes Aircraft coming to an Airport Authority
meeting and the mans comment was "so this is City Hall." Beller
asked if it was agreeable to tell staff to just fix the ponding
areas. Schumpert said the steps are in disrepair also. Consensus
was to include $25,000 for this work.
WASTEWATER TREATMENT PLANT
Schumpert said the weighing of sludge trailers would more
accurately be shown as a landfill scale, and should generate
revenue eventually. $40,000 is the cost is from the $1.25 State
mandated fee. Consensus was to approve. Solid Waste disposal
error on salary and wages will be corrected.
Schumpert said with actions tonight, his calculations reflect a
shortage of $65,000.
Green said she wanted smoke detectors for the Library included.
Huck said review will begin next week on the five HVAC RFPs;
estimated cost from a smoke detector company is $4,500, although
he was not sure how that would tie in with the HVAC. Huck said
the HVAC contractor should be aware that the City will own that
system and that he would be able to get answers on that in the
Williams asked if the City owns the present automation systems in
City facilities. Huck said no, the City has a three year contract
and the company under contract owns the sensor system. Huck said
the City owns certain equipment on it, but not the sensor system.
Consensus was to approve of this item with funding to be
Purcell said the current budget shows a carry over for next year
of $512,288 on page two; $65,000 reduction would result in a
$445,000 carry over. He said he felt next years carry over would
be around $2.9 million. Purcell said the carry over last year was
about this amount, and it came out at $2.9 million. He said he
went back six years and looked at what was projected as carry
over, around $500,000 to $700,000, but the actual carry over is
usually around $3 million. Purcell suggested taking the $65,000
from carry over to balance the budget. This was the consensus of
Schumpert said the Council agenda for June 10 has been
distributed, less the budgetary items, which will be added and
delivered this weekend. Engineering inspection fees will be on
the June 24 agenda.
Beller said he would remind the citizens that the public hearing
on the budget will be June 10 for input. Williams said Council
had worked together well on the budget, and the rates would be in
line with the costs and meet the needs for the coming year.
Williams said it does not address the need for street or water
line repairs, which are falling further and further behind and
nothing has been put in place to catch up with this need. He
asked members to think about that over the weekend.
Purcell said the City Manager and staff did an outstanding job of
putting the budget together. He suggested that Council hold a
special meeting in December 1997 to give some very general
guidance of what Council wants to see in the next budget,
realizing the process does not start until May when the new
Council is seated. Purcell said this would save the City Manager
and staff some effort if guidance could have been provided
initially on items such as utility rate increases. He said he
felt this would save time for Council and staff, and he would
bring this up as an agenda item at the appropriate time.
Schumpert said he had been reluctant to do that in the past
because the majority of the Council could have changed each year.
He said with the Charter change, there is less potential for
change in Council membership, and the December budget meeting
would be helpful to all concerned.
Beller said Bill Kinard had asked to be recognized to speak and
Council agreed to receive his comments.
Bill Kinard said he wanted to know how much time he would have to
protest the budget with regard to Article 4 of the lease
agreement which explains what surplus and rents are, and mentions
reserve funds. He said that is not shown in the budget book, and
the only thing stated is that there are operational funds, and
that this is the furthest thing from the truth that he had ever
heard. Kinard said you are transferring all of the utility funds
into the general fund; it tells you that you have to keep an
account in books of the Water Authority, it also tells you that
in OML, and they will not be co-mingled.
Kinard said the trust indenture says you have a water authority;
the lease agreement is built around this, and the people own this
system. He said the City had to have the lease agreement because
there was no funding or way of raising the water rates; it does
not cover sewer, you only leased the water. Kinard said you can
go to Title 11 in 35203 and 202 which say you can lease it if you
have funds; it does not affect the lease agreement of 1968 that
the people voted on. He said he wanted Council to read about
rents and surplus in the lease agreement in Article 4 and compare
it to the budget.
Beller said a public hearing would be held on the budget on June
10. Kinard asked how much time he would have to go through it.
Beller said three minutes. Kinard said there are 11 pages in each
one of those documents and that he should have more than three
Meeting adjourned at 7:20 p.m.