Meeting of 1998-5-6 Special Meeting

Schumpert said the Preliminary Budget, Reference Notes and Departmental Initiatives were distributed, as well as listings of inventory costing over $1,000 and those items which were to be replaced in this year’s budget; not all items to be replaced this year are scheduled for purchase. Guidance was not to program any cost of living increases or additional positions; some positions were changed and some in police were changed from officers to civilians at a cost savings. Departments were directed to balance budgets within the 200 and 300 series accounts; one division may have more money than last year but another division in the department may have a reduction. $170,000 less is projected in the 200 and 300 series accounts than last year. Schumpert said Council also indicated it would not entertain an increase in water rates, and the initial amount needed was $8 or $9 per month on the utility bill to balance the budget. He said review was again made on revenues, relying on the previous month’s projection, and the Finance Director made assumptions by reducing salaries and wages in the upcoming budget by $500,000 since on the average that amount is left for carry over, so it was taken advantage of and the budget has been maximized within financial prudence the revenues as much as possible based on last year’s experience. After this work, it was found necessary to recommend increasing the water rates by $5.65.

Schumpert said the budget letter shows many things that are not included in the budget, such as the mass transit program, removal of the fuel tanks at the Public Works Yard, asbestos abatement at the Museum, any City costs related to the Roadrunner industrial project, and no cost of living increases for contract or general employees.

Shanklin asked if any additional revenue from the landfill was included in the revenue projections. Schumpert said it was not included because it had not been considered at the time the preliminary budget was produced. Schumpert said if there are increases in landfill fees, or any other costs in services, and there is another proposal to make the minimum utility account 2,000 gallons instead of 3,000, and that is not included, so if Council desires to make those changes, there would be additional revenue to the City.

Purcell said the second paragraph of the City Manager’s budget letter addresses the total budget as proposed at $5,027,000 higher than last year’s budget, of which $3,221,000 is caused by the sewer rehabilitation out of the CIP. He said the difference between those numbers makes it appear the budget went up by $1,807,000. Purcell said the last sentence of the next paragraph indicated this is $1,232,000 more in this year, and asked if there is a difference of $575,000 and requested clarification.

Steve Livingston, Finance Director, said the overall budget included the 1995 CIP Sales Tax, with the biggest item being $3,221,000, but $3.2 million is the exact amount approved for the sewer system rehab program. He said other projects are also listed there, and some of the difference may be in that regard. Purcell asked if the increase in the operating budget is $1.2 million or $1.8 million, leaving out all the capital improvement. Livingston said the 1997-98 operating budget was $44,700,000 and the proposed 1998-99 is $45,900,000, so the operating budget is $1.2 million more. Livingston said another number that increased was the debt service requirement on the $18 million sewer, and that may be reflected in this year’s budget.

Purcell said the following page, third paragraph, shows total revenue collections for operations in the current year are projected to fall short of the budget by $117,00, and then this short fall was offset by a shortage of water revenue for almost $600,000. He asked if the meaning was that the total projected revenues planning to be collected in 1998 will be short only $117,000. Livingston said that was what he was projecting at this time. Livingston said he anticipated an additional $100,000 in sales tax collections, and use tax being up about $230,000; franchise is running below due to PSO’s payment in December because PSO gave a customer refund and a part of that was the franchise so the payment was down for that month. Overall, the franchise appears to be running on a normal level. Purcell said he was looking at the franchise being down about $287,000, and Livingston said he felt it would be about $100,000. Livingston said he was also showing police fines and bonds up about $200,000.

Shanklin said we were up $300,000 last month and asked what would happen if it goes up $300,000 next week from that month. Livingston said we would be in much better shape. He said he tried to be somewhat conservative but was estimating collecting about 1% more in the following months. Livingston said the PSO rebate affected sales tax also, and one communication company made a $70,000 payment in August 1997 for sales tax and found that was incorrect and took it back all in one month, so the sales tax has gone up and down. Livingston said taking out the one time items, sales tax is increasing at a pretty good rate, and overall for the year, the collections are up about 2%.

Purcell said the City is short $117,000 in total revenues, and he was showing the expenditures, based on predictions and appropriations, about $2.2 million short of what was predicted at the beginning of the year based on where we were at the end of March. He asked if that was valid. Livingston said the City’s expenditure are seasonal, as are revenues, so he compared March of this year with last year, including the enterprise fund. Livingston said at this time the unappropriated balance is $1.3 million to the end of March, or $1.3 million less than last year at the end of March. He said that would support some of the carryover number he was budgeting at $1.2 million, when he actually had $2.6 million in carryover; if you are down $1.3 million in expenditure and take that away from $2.6 million, you are still back to $1.3 million and there is not much encouragement there. Livingston said he did not another month’s number and hoped there would be more to work. Livingston said if the numbers or carryover situation improve, an adjustment should be made and it should be accurate.

Shanklin said removal of the tanks at Public Works and abatement of asbestos at the Museum had to be done, and that is approximately $400,000 in funding that is critical and not included. He asked if the anticipated sales tax increase is reflected in the budget. Livingston said sales tax is up $100,000, and the CIP sales tax it is up also, however, the numbers used in the budget were from a few weeks ago when he had March revenues and probably those from April 10, and in about a week, the May sales tax would be known.

Warren said a departmental initiative was submitted regarding the Mayor and Council having lap top computers and asked if there was a cost savings estimate in printing. Doug Wells, MIS Supervisor, said the estimate for agenda folders is $150 per member per year for printing alone. Discussion was held and not all members felt it was best to change at this time, and to insure the Year 2000 problem is under control first. Warren suggested including funding for four telephone lines, even if the lap tops are not purchased, to allow access. Schumpert said the Year 2000 problem is projected to be completed June 1999. Consensus was to include $4,860 in the MIS Division budget for the installation of new phone lines, first year cost, and communications equipment for remote access with modems.

Travel and training funding was reviewed; NLC will be held in Kansas City next year. Funds were included as follows: Three members and the Mayor to attend NLC at $6,500; $2,188 for OML trips; $977 for AUSA trip to Washington, D.C.; $1,900 for two legislative action meetings, as well as $1,350 for miscellaneous trips. Powell said he did not plan to travel to anything that would not be a direct benefit to Lawton.

Schumpert said he was charged to look at the structure of Parks & Recreation and information in the budget book is incorrect; a new organizational chart was distributed tonight. One change removes the Library from Parks & Recreation due to the activities held there and the mission; the Library is shown being moved under the supervision of the Assistant City Manager.

Purcell disagreed with the proposed reorganization pointing out the Assistant City Manager should remain available for the public and the Council, and should not become a department head type employee. Beller questioned what would be gained by the reorganization and Schumpert pointed out the number of separate individuals reporting to the Parks & Recreation Director. Schumpert said the Library could be made a separate department if so desired. Dick Huck, Parks & Recreation Director, said he did not spend a great amount of time on the Library operations. Beller said he was anticipating a change in the Lakes & Land portion of the department in the reorganization and that did not occur. Schumpert reviewed the new organizational chart showing that four persons would answer to the director.

Marion Donaldson, Librarian, asked that the Library be made a separate department, not under Parks & Recreation nor the Assistant City Manager. She reviewed the services provided and the problems associated with being a division of a large department causing the Library to compete for funding with other divisions of that department.

Williams said he felt the MIS Division should be a department, rather than a division, due to its contact with all departments and the need to be sure appropriate equipment is recommended for purchase. Shanklin said he was not pleased with the little reorganization shown in Parks & Recreation.

Shanklin asked if the generator was purchased and operational and Schumpert said yes. Beller said there was a question as to the division supervisor not being allowed to attend staff meetings. Schumpert said he did not feel it was necessary for the division supervisor to attend staff meetings; the supervisor currently must approve computer related items. A question was raised regarding the initial reason for computer requests and the need for the division supervisor to be involved in that process. Bill Baker, Assistant City Manager, explained his efforts to provide good communications to the division and coordinate efforts of the division with other departments. Overtime amounts were questioned with response being that a need for overtime was evident one year due to two computer crashes and an emergency wind storm event, which are not normal occurrences.

Discussion was held on a fire alarm system and lighting retrofits, as well as carpet. Huck explained efforts in this regard are continuing. Shanklin asked for a copy of the items listed in Account 35 to be able to determine what funds had been appropriated previously but not spent and not included in the carryover.

Powell said $68,000 is shown for electricity and gas, and urged the City Manager to develop a plan to conserve energy in City facilities. Huck outlined conservation efforts with regard to heating and air equipment. Powell said he intended something be done as far as not using lights unnecessarily and setting air controls at normal levels, but not excessive.

Chuck Bridwell, Personnel Director, reviewed the budget. Shanklin asked about personnel records being available in relation to the privacy act. Bridwell said the Open Records Act requires release of the original employment application, title of the position, and gross payment of public funds; other items are not releasable to the public, although the employee himself may review his own personnel file entirely.

Rick Endicott, Auditing Director, reviewed the budget. Two computers are being replaced and the old computers will be used for parts or auctioned off. Purcell asked Schumpert to direct Endicott to review the Department of Public Safety initiative that was presented to determine accuracy of projected savings.

Ken Graalum, Director, said Electronic Maintenance also uses parts from old computers to assist with synchronization of traffic signals. Williams asked that the traffic light at 11th and Ferris be examined as to the timing sequence. Funding sources for the department were reviewed regarding general fund and E911 telephone tax funds.

An agreement was previously forwarded to the County Commissioners with regard to Lawton conducting E911 operations for the county, and a response has not been received. Council will consider an item May 12 regarding a special meeting with the County Commissioners on this subject, as well as others, and those would be identified prior to the meeting.

Council suggested additional funding be included with regard to hiring a new City Attorney. Schumpert said advertisement is being made to fill the position and salary is shown as negotiable; advertisement closes June 15. Discussion was held and Council directed that sealed applications be forwarded to the City Clerk, who will hold them for members to individually review and rate on a scale of one to five, with five being the best, and Council would then hold interviews.

The departmental initiative regarding Municipal Court processing juvenile offenders was reviewed and has an impact on the Community Intervention Center certification. Cost of the initiative was estimated at $78,000 for an additional attorney and secretary. Warren pointed out the police are currently without authority to cite juveniles for violations such as littering. Discussion was held on the income that may be produced from juveniles being handled in Municipal Court, and suggestion was offered that the operation could transition into this additional activity and then hire the needed staff depending on the work load, and possibly a part time attorney would be sufficient. Total estimated cost was $99,850 and possible revenue was $172,800.

Shanklin asked about RFP’s on mowing. Huck said those were opened Tuesday and the City’s figures were lower than any vendor had submitted, although the City did not submit numbers on the areas it did not previously mow. Copies of the RFP were requested by Shanklin. RFP included mowing all areas currently being mowed by the City, to include lake areas.