MINUTES

LAWTON CITY SPECIAL COUNCIL MEETING

JUNE 10, 1998 - 5:30 P.M.

WAYNE GILLEY CITY HALL COUNCIL CHAMBER

Cecil E. Powell, Mayor Presiding

Also Present: Gil Schumpert, City Manager; Felix Cruz, City Attorney; Sandra Rench, Deputy City Clerk

The meeting was called to order at 5:30 p.m. Notice of meeting and agenda were posted on the City Hall notice board as required by State law.

ROLL CALL

Present: G. Wayne Smith, Ward One;

Richard Williams, Ward Two; Jeffrey Sadler, Ward Three; John Purcell, Ward Four; Robert Shanklin, Ward Five; Charles P. Beller, Ward Six; Carol Green, Ward Seven; Randy Warren, Ward Eight

Absent: None.

BUSINESS ITEMS:

1.  Discuss Preliminary FY 1998-1999 City of Lawton Preliminary Budget, and take appropriate actions for consensus only. Exhibits: Information previously distributed.

Powell provided recommendations for reducing the budget to include saving energy. Powell enumerated the cost to the City in the previous year for electric and gas and referenced the Lawton Public Schools energy conservation program, their savings of 15% to 20% each year with no start up cost to the City. Powell said he had a book of how the program would be set up to include the settings on thermostats, turning light switches off, and direction for when buildings are closed. Powell said if the City takes a 10% cut in the utilities there would be a savings of $124,840; telephone and Postage - 15% reduction would be $50,801.25 and noted the 4.5% reduction book included some of these costs; computers 10% reduction - $13,188.20 cutting cost.

Purcell said the electricity and gas may be reduced with some type of program but did not believe as much could be taken from telephone and postage.

Powell said when he took office he asked for a log to keep track of long distance calls and was told a log wasn't kept, that may be a problem and it would be effective to have a log. Williams asked if the 10% in computers is on the cost of computers. Powell said that was correct.

Powell referenced the overtime and part-time where a 20% reduction would be $144,523 for overtime and $90,600.80 for part-time. There are 9 backhoes in the public works yard, just purchased another backhoe and they should begin some type of sharing plan and not leave them setting idle. He said the total reduction of his proposed items is $600,553.25 with the deduction of the pumping fees of $81,600.

Council members discussed how to proceed and determined to start with the 4.5% reduction book and review recommendations.

4.5% Reduction

MAYOR & COUNCIL -

Travel and Training (265) - don't reduce $6,212

Miscellaneous Expense (279) - includes $500 - employee picnic; $700 - Commission on Status of Women; misc. - $1,000.  

Williams said the total budget in accounts 264, 265 and 279 is approximately $1,276,000 and there are some areas that could be impacted 20%.

Purcell suggested reducing the budget using the misc. $1,000; don't reduce the employee picnic of $500 or the Status of Women $700.

Dues and Membership (264) - reduced $3,296

Misc. (279) $1,000

Total reduction in the Mayor & Council - reduced $4,296

CITY MANAGER

Discussion was held on account 221 - Rental, Advertising and Printing

Discussion was held on comparing the reductions to the preliminary budget book and the recommendations to be provided by the council members.

Schumpert said the council asked the staff, within the 200 and 300 series accounts, to maintain the departmental budget at zero and the staff did that; now if the council is going to go in and say they didn't keep the individual accounts at that then the staff wasted their time. He said the 200 and 300 series accounts at departmental level is approximately $100,000 less than last year for the entire City budget. He said if they go into individual accounts some will be more and some less.

Purcell recommended they continue with the 4.5% reduction book.

Powell said if they review the items individual members  brought forth it may be close to the figure they want without going through the reductions by line item.

Warren read the impact statement for account 265.

Rental, Advertising and Printing (221) - reduced $500

Travel and training (265) - reduced $400

Total reduction in the City Manager account - $900

Beller said the staff has reduced their budgets by 4.5% and now the council is going line item by line item doing the same thing. Purcell said when the staff came up with the 4.5% they would be using part of the $3 rolling stock fee for the general fund and he wouldn't agree with that. Warren said they would lose a supervisor in Communications and a fire station on the east side if they follow all the reductions. Beller said he thought their direction to staff was to come back with a 4.5% reduction.

Schumpert said the initial direction was that the 200 and 300 series accounts couldn't be increased over the previous year's budget within the departments; the only increases allowed were for the natural functioning of the current personnel which resulted in his budget letter that they would have to add $5.65 to the budget. He said the council went through all the departmental budgets making changes resulting in estimated revenues of $668,000. He said the council then directed the budget be reduced with no utility increase which was 4.5%; each director was told to reduce his budget by 4.5% and when they did that they included rolling stock which should have not been included because Livingston had identified the amount the $3 surcharge covered. He said the $668,000 that has been identified through the budget covers $570,000 which has to be put back, to include also putting the communications director back in so they arrived at a difference of approximately $100,000 which would be put in council contingency. He said when the council looked at the reductions they noted items they didn't agree with such as the fire station which is why they are reviewing the 4.5% departmental reductions.

Williams provided his recommendations for decrements.

Shanklin said they should look at the 4.5% reduction and the Budget book together, just because a fire station was eliminated does not mean that there aren't other cuts that can be made in the fire department budget. He asked if they were going to accept it as fact and how they would address it if they don't compare the books.

Williams said the list he put together eliminates $100,000 in capital outlay; 8 positions; impacts the council, gas, telephone and electric charges; identifies something with Fund 35; shifts moneys in the 1990 CIP to projects that could qualify for their needs today but would not impact as much capital outlay or change the resolution on rolling stock to fund the budget.

Purcell said Williams has taken $100,000 from the council's contingency fund which leaves zero. Williams said he reviewed pages 10-11 in the blue book (preliminary budget) Account 279 has $880,192 which is the amount throughout the budget and they should be able to take 12% to 13% from that. Purcell said they would need to find where the 12% to 13% is coming from, what departments. Purcell provided examples of where the money may come from and the problems that could occur and said they needed to know where the money was coming from.

Livingston said in Account 279 the largest items are the museum - $511,000; financial assurance at the landfill - $138,000; council contingency - $760,000; civil defense contract $30,000.

Warren said he thought the reason for going through the book was because they have the City Manager's and department's answers and the council doesn't like the answers so they are not talking about cutting extra items but accepting or not accepting what the departments have cut, determining what the number is when they are done, how much more they need to come up with and can go from there.

Shanklin said they can't take $32,000 out of CDBG contingency. Williams said it is not necessarily being taken out to fund the budget, in the budget there are some moneys or projects that could be redirected with CDBG funding. Shanklin said they are trying to do this in a wholesale lot and that would not be fair to those people who put this together.

Purcell said they know where the money is at in the contingency funds and asked where Williams would take the $100,000 cut. Williams said there are some big accounts where some numbers could probably come out.

Powell suggested identifying the items in the 4.5% reduction that they don't agree with being taken out to arrive at the figure they need to look for. The council members agreed to go through the reductions and provide further recommendations.

MANAGEMENT INFORMATION SYSTEMS

Purcell recommended there be no reduction in this department based on their impact statement. Warren agreed the funds should be retained. Shanklin provided the amounts that remain in the budget for this department.

Warren said he developed his list using the impact statements to determine what would be reduced and what wouldn't.

Sadler said if a figure is reduced by $7,000 and it was $10,000 it would be 70% but if you go back to the blue book and it was $100,000 then it would only be 7% so they need to look at the blue book and the impact statements. Warren said the department heads may not have taken 4.5% out of tools they may have not taken any out and 9% from something else because they just needed to come up with a 4.5% reduction out of their total budgets.

Management Information Systems - reduction not accepted.

PERSONNEL

Warren said he hadn't reduced anything in this department.

Shanklin said if you make $100 a week and then you start getting $95 it does not shut down your operation or cause you to go bankrupt. He said the director will try to protect any cuts that are suggested.

Beller said he couldn't understand how they could tell the department heads that the council knows better than they do what they need. Purcell said they aren't telling the department heads that, they were forced to provide a dollar reduction of 4.5%, they had no choice. He said if they told them to provide any reductions they could take the council wouldn't see any there would be a completely different list. He said they are giving some of the reductions back. Beller said his point is that the directors know better than council where they can cut and what they should cut and council is telling them how to run their departments.

Schumpert said in regard to the 4.5% reductions, less the capital outlay because they have identified $668,000 to apply toward the capital outlay; basically if the council gives money back, such as returning the reductions to MIS, when they finish they won't have a balanced budget, there will be X amount to be funded. He said the council is saying they will fund it somehow and if they then need a half million dollars to fund the budget they will have to do something to come up with that money because they have given that back to the departments. He said in some cases there will be some departmental budgets that are cut and some that aren't and the directors understand and will live with whatever the council cuts and understand some are going to fair better than others. He said they will need the remaining figures to fund the budget.

Beller said if for some reason the department is liked they will do it. Purcell said that isn't the issue, the issue is what is given back is based on the impact the reductions will have to the budgets. Beller said they were going to create a department of MIS so they could attend staff meetings, they didn't need to do that and if they don't like one of the others they will reduce that budget.

Personnel - accepted all reductions.

AUDITING

Williams said he was disappointed they couldn't find $1.8 million in the budget without resorting to increasing fees or adding a utility increase; the 3,000 gallons to 2,000 gallons minimum needs to be done whether to balance the budget or fund infrastructure, the council will need to make that determination. He said they should be able to reduce some areas without carving up the capital outlay.

Council reviewed the Memorandum from the Finance Director on the Status of the Preliminary Budget dated June 9, 1998.

(Reference was made below that Auditing would not be reduced.)

COMMUNICATIONS - reduction not accepted.

Smith asked if Auditing was restored and Schumpert said it was. Purcell referenced the impact statements.

LEGAL SERVICES

City Attorney

Purcell said his list reduced Professional Services (231) by $1,000. Warren said he had given back $1,500 to (221).

Cruz said with respect to the City Attorney's account, recommended the council take all the items he recommended. He said the only item of caution is account 231 of $15,000, based on what they have now they can withstand $60,000 for professional services, if they get a big lawsuit involving civil rights during the next fiscal year he may need an additional amount, the others can be reduced.

Council accepted all reductions.

Prosecutor

Purcell said there was no way they could give up $300 based on the impact statement. Cruz said if they take out the over time the secretary will be working and adding it towards compensatory time and if the person has to take compensatory time Cruz or the new city attorney will have to make a readjustment and take people from the city attorney's office to cover that position during those time periods.

Purcell asked if the employee was exempt or non-exempt because if the person is non-exempt they can't use compensatory time. Discussion was held on non-exempt employees receiving compensatory time or over time pay and Bridwell provided the information that the employee makes the election or overtime or compensatory time on their time sheet.

Council accepted all reductions in the City Attorney's accounts.

MUNICIPAL COURT

Schumpert said the council approved the initiative with the juvenile court and they can't do the initiative without this position.

Council recommended no reduction, position would be included in budget.

FINANCE DEPARTMENT

Purchasing - accepted reductions.

Accounting  - accepted reductions.

City at Large

Professional services (231)

Purcell said Professional Services account 231 was cut from hotel/motel tax and they can't use it anywhere else.

Professional services (231) - $14,400 - reduction not accepted.

Street Lighting (243) - $7,500 - reduction not accepted.

Revenue Services

Elimination of Position (100)

Williams said the position is located at the Ft. Sill Welcome Center and asked how many people are served at that location because if it is closed those people will come to City Hall to do their business.

Schumpert said the person located at the Welcome Center would be brought back to City Hall and would pick up the slack within the department. He said they can deal with the traffic in City Hall with the people they have.

Beller asked how many customers use the facility and is it something they could do without. Ralph Carson, Revenue Services Supervisor, said if they would bring that position back to City Hall, the number of payments and customers they wait on is approximately 1,100 to 1,400 a month for city utility services.

Warren said the reason he recommended putting it back in the budget was because of the process they recently went through to encompass Ft. Sill into their population and would now be taking their services away.

Purcell said if they didn't have the service on Ft. Sill they may do an automatic draft which would save a lot of problems. Carson said less than 12% would go with the automatic draft, there are only 3,000 people on the draft now out of 30,000 customers.

Schumpert said the utility office has been reconfigured where each person is a full service rep who can take care of all the services.

Williams asked if Carson presently has one position that is vacant. Carson said they have held the position open pending the council's decision. Williams asked if with the elimination of this position it would be two positions. Carson said there is no way he could close two positions and operate properly. He said over the last week being one person short it has cost about 35 to 40 hours of overtime. Schumpert said it would not impact the current employees if they eliminate this position.

Beller recommended they leave it and reduce the $19,500, close the center and reduce the position.

Purcell recommended leaving all the reductions based on the impact statements. Carson said he would like to have the vacancies eliminated so they can cut down on the amount of traffic, with the impact of closing the Ft. Sill office which serves approximately 1,100 people he will need to reduce the vacancy people coming in to file vacancies.

Williams said they will work on that as soon as they have a clear understanding of the budget and that could happen and would then challenge Carson to find another person to eliminate if they don't have vacancies.

Council accepted all reductions.

PLANNING AND SPECIAL STUDIES - accepted reduction.

CODE ADMINISTRATION

Code Admin. - accepted reduction.

Building and Permits

Purcell referenced capital outlay and asked if Schumpert was going to restore $668,000 for capital outlay. Schumpert said the figure Livingston had was that out of the capital outlay cuts $570,000 was rolling stock so he took $668,000 and use $570,000 to restore the rolling stock. Purcell asked where those items are in the 4.5% reduction. Livingston referenced the June 9, memorandum which includes a list of the rolling stock which are included in the reduction list so as they get to those activities they can restore them.

Building and Permits - accepted reductions.

Code Compliance

Purcell asked what the $11,200 (Professional Services (231)) was for. Dennis Woommavovah said it would come from the contract for weed abatement, staff would make more effort to contact property owners to mow their own property. He said it helped last year to reduce what was spent on contracts and are going to increase that effort this year if they have to do without. He said they were successful to a certain extent last year and if they are just as successful this year they will be all right, if not they may require more money in May or June next year.

Code Compliance - accepted all reductions.

HEALTH

Contract Reduction (231)

Schumpert said this account is the contract with the Health Department and referenced the letter received from the Health Department whereby if the City takes this money they will stop spraying for mosquitoes and other things and the recommendation is to leave it in the budget even though they don't believe that wouldn't be done if they didn't provide this funding.

Contract Reduction (231) - reduction not accepted.

PARKS AND RECREATION

Parks and Recreation Admin. - accepted reduction

Sports and Aquatics - accepted reduction

Leisure Services - accepted reduction

RSVP

Williams said when they were having the department budget review he had asked Ann Weisman if she could accept the RSVP function and they may consider combining that with another function when they get to identifying additional revenue or additional cuts.

RSVP - accepted reduction.

Library

Capital Outlay (300) (Page 24)

Warren said his recommendation was to return everything to the budget except (321) remodeling staff lounge; (321) parking lot; (312) furniture (lounge).

Purcell said his list restored (314) Books/Periodicals to the budget and left everything else out. He said the cargo van wasn't in this.

Smith said he gave them back basically everything Warren referenced and took the cargo van out from the budget.

Sadler said the request was to cut the things in the top section first and leave those items in the bottom section. Marion Donaldson, Library Supervisor, said she had requested the cuts be made from the top down.

Purcell said the reason he requested the Books/Periodicals be restored was because they requested the County, for three years, to pay them $4,000 for those items and the council is about to cut $4,000 out and didn't think that was a good idea.

Schumpert said essentially $20,000 has been cut.

The items recommended to be reduced from the budget would be the (321) Remodel staff lounge; (312) furniture (lounge); (321) Parking Lot & Drive.

Williams recommended reducing all the items on the top portion and leaving the last two items in the budget.

Shanklin said every time he has gone through this if they read what the department heads say, the world will come to an end if this happens and the council has capitulated every time and that is what they are doing tonight is putting everything back. He said the city manager should have gone through this with the department heads and looked at what they put down to take out because anyone can put something in there that they know will be given back. He said they should go back to Communications and see if there isn't something there and go through the fire department. Purcell said they would get there. Shanklin said he was using the fire department as an example and asked if they were going to get to lakes and lands.

Library

Capital Outlay (300) - reduce by $20,000 ($17,364 to be restored to the budget).

Arts and Humanities - accepted reduction.

McMahon Auditorium - accepted reduction.

Museum

Williams said this is the first year for the Museum and whatever money the council provides the authority they will make a valiant effort to operate the museum with that amount.

Museum - accepted reduction.

Lakes

Capital Outlay (300)

Schumpert said this is the money for improvements at the lakes.

Joe Henson said it is for various improvements around Fisherman's Cove and Ralph's Resort.

Williams encouraged the council not to take the CIP.

Shanklin said they need to take this division and move it to Public Works. He said if they can mow all the grass out there as the contract says for $94,000 there is still $300,000 out there someplace, there isn't any accountability because their worksheets just have eight hour days and requested Jerry Ihler provide the list of work completed used by the Public Works Department. Ihler provided a list of duties performed by the divisions. Shanklin said the list shows what the employees do on a month to month basis in Public Works to show accountability. He said they don't have any accountability at the lakes for what the employees are doing in the winter or the summer for building maintenance. He said he would like to discuss only funding this through September 30, and the Mayor wants to appoint a committee of the council and the staff to see what they can do out there. He said the police department is out there and they can take care of the money collected from the people who collect the fees, there have been two embezzlements, they need to do something.

MOTION by Shanklin, SECOND by Williams, to take Lakes and put it under Public Works.

Schumpert said the current emphasis, orientation for lakes as they are under Parks and Recreation is for recreation, when it is put under Mr. Ihler his emphasis and orientation is going to be watershed. He said Ronnie Graves will tell them that there will be some other issues that will arise when that orientation is placed on it.

Shanklin said that may be but he has asked the city manager for accountability for two years and the city manager laughed about it and laughed about it when Shanklin showed him the eight-hour days out there and he didn't think it was funny. He said there is maintenance at the lakes, the mowing, the streets, the roads, 200 tons of asphalt to be put down and that comes under the engineers because they have to go out there anyway on account of the restrooms they have to send their people out there.

Schumpert said he is not making a recommendation he is just saying that the current orientation is a recreational approach and under Public Works it will be a water shed orientation and was confident that the public works people are going to come back to the council and reduce the activities because of its impact on the water shed.

Williams said if they are moving toward trying to negotiate with the concessionaires to do some of the peripheral things to include mowing or fee collecting he doesn't have a problem in doing it but public works has some responsibility at the lakes to maintain and they have the equipment and expertise to do the engineering and maintainance of roads, etc.

Beller said he would like to know what Mr. Ihler thinks of all this since he is going to fall heir to this function and to just arbitrarily move a department from one area to another it looks like more study needs to put into it and agreed they need to do a serious study of the lakes and lands. Shanklin said they requested that and didn't get it. Beller said before they jump into this he would like Ihler's opinion.

Ihler said if Beller is asking his personal preference with regard to whether he would like to have lakes under public works the answer is no, he would not, and that has nothing to do with the people or personnel at the lakes department but if the question is whether they can handle it, yes they can but this isn't his decision.

Williams said he had asked Ihler the same question and his answer was the same and in trying to identify further what there was about the lakes it was pretty much in dealing with concessionaires, having to administer mowing and grazing leases, etc. which could be spun out and the true public works functions that Ihler's department could do could provide that out at the lakes.

Beller said he was confused in what they were trying to accomplish, if they are going to privatize the entire lakes and lands that is great and they could do that but to have the commingling of the camping funds and fees, etc. it doesn't look as though they can just jump and do it in one fell swoop, it is something that is going to have to be looked at and done in a systematic manner to accomplish what they want to accomplish. He said it seems as though they are trying to pamper a concessionaire at Robinson's Landing and that isn't what they need to do just because that concessionaire is saying they are picking on him, etc. He said that isn't the reason to move Lakes and Lands to Public Works. He said they need to work with the problem, if there is a problem out there they need to solve the problem and keep it where it is.

Purcell said they have spent more time talking about lakes than any other two departments in the city and the council knows what the problems are and where they are coming from and if they think this might solve the problem, since they know Ihler knows how to manage and does an excellent job, he is willing to try it under Public Works for one year while they are doing other things. He said if it doesn't work they can move it somewhere else and study where it will go but he would like to stop talking about lakes every single meeting and this may be the way to stop that.

Powell said this has come up many times and he has names to appoint to a committee and they should expect a letter next week regarding this. He said he has asked for a schematic and Mr. Baker should soon have that for him and wants the council to have that at the same time they get the letter notifying them of their appointment to this committee and get it started.

Williams said his reason for having it under Public Works is for the accountability issue. He said there have been some things that have happened at the lakes, they have identified that the Parks and Recreation director had too many direct reports, that department has been reorganized but the situation still exists for there to be more accountability and there would be more accountability under Public Works.

Beller said they have Lakes and Lands and police officers at the lakes and asked how this will effect those police, will they come under Public Works also. Shanklin said they are two separate entities, two different departments.

Beller said they talked about fee collecting and they need to look into that in some serious depth and they talked about the fee structure and duties of the police officers out there, it looks as though they are jumping before they know where they are jumping to.

Schumpert said council has the ability to move departments but it seems a little different from what they normally do because they are in the middle of trying to balance the budget and are moving a division from one department to another and will then study it. Shanklin said they aren't going to study it, they are going to pull $152,000 out of that department. Schumpert said the Mayor just said he is going to assign a committee to study it, will have a schematic of it and it seems as though they would do the study and would have an opportunity to do this at any point in time. He said if they were going to do it in a normal fashion the mayor would appoint a committee, the committee would go out and see it and after that committee they would make a decision based on their recommendation. Shanklin said if Schumpert would have done his job two years ago they wouldn't be here. Schumpert said he has been doing his job for four years.

ROLL CALL: AYE: Beller, Green, Warren, Smith, Williams, Sadler, Purcell, Shanklin. NAY: None. MOTION CARRIED.

Council discussed the needs that had been identified at the lakes and the consensus was to leave the reduction in and if funding was needed later they could consider funding the repairs through council contingency at that time.

Lakes - moved to Public Works

Capital Outlay (300) - accepted reduction as referenced above.

Building Maintenance

Capital Outlay (300)- reduced to $8,000 (less rolling stock - cargo van, restored $28,000)

Park Maintenance

Capital Outlay (300)  - $28,800

Purcell asked what they are doing at Greer Park, he thought it was to redo the tennis courts. Dick Huck said Greer Park was started two years ago which started with the tennis court renovation, the next phase was to work on the lighting and then redo the playground equipment and other park improvements then just the tennis courts.

Park Maintenance

Capital Outlay (300) - accepted reduction

PUBLIC WORKS

Engineering

Professional Services (231)

Warren said he restored everything except the vacant slot.

Schumpert read the remarks listed on Page 31 for professional services.

Professional Services (231) - accepted reduction

Dues and Membership (264) - accepted reduction

Capital Outlay (300) - (includes $16,000 for a vehicle - rolling stock) - accepted reduction of $10,390

Shanklin said he thought this would be a 3% reduction and the manager gave the staff 4.5%, if they take that out it may reduce the budget 3.5 million and they could put the excess aside and hold it for those departments that are truly impacted, they don't know that they will all be impacted and asked if they are trying to cut it down to the one penny. He said if they take the 4.5% and look at the fire department, if that is the consensus, that creates more money to carry over. He said they don't know if they can live with it or not, they could work out of the excess next year when they run into trouble.

Street Maintenance

Contract Labor (104)

Williams said as far as streets, water and sewers, they are in the shape they are in because they didn't fund them adequately. He said if they continue to cut out they will come back in another month to decide what they want to do with infrastructure.

Purcell said according to the impact statement on Page 4 it will delay the inventory maintenance program regarding street signs, it is not for repair of streets.  Ihler said the program has to do with gathering data and putting it into a software program to establish an inventory for street signs throughout the city.

Contract Labor (104) - accepted reduction.

Shanklin said if this were left out, and they have a surplus whenever that department comes up they will come back to the Council. He said there will be more than one department that will have to come back and the Council is not going to put people on the payroll without providing materials and equipment.

Williams said Shanklin is projecting that sales tax will be a lot more and they will have more money than they have identified. Shanklin said they will have more money cut out of the budget at the 4.5%, unless they put it all back, than it takes to meet the budget which would be surplus.

Sadler said Shanklin had just said they could get by with a 3% cut and the city manager recommended 4.5%. Shanklin said he had talked about 3% but didn't get to see that amount so didn't have any idea what it was. Sadler said he thought the council had said that 4.5% was the magic number and that was what it took, other council members agreed.

Schumpert said to balance the budget with no increases it takes a 4.5% decrease in the budget, 3% wouldn't have balanced the budget and 5% would have been more than what was needed. He said they have to submit to the state at some point in time a balanced budget.

Williams said the 4.5% created approximately $2.2 million and they identified some additional revenues that brought it down to $1.6 million. Schumpert said the 4.5% reduction included $570,200 of rolling stock which they can't cut and identified $668,000, excess and when he subtracted the $570,200 from the $668,000 that is how much they have to restore the communications director position and he is basically there. The rest of the money goes into the council contingency fund to use however they wish to use it throughout the year. He said one of the cuts in the reduction was the closing of the fire station and the council does not want to do that so now they have to come up with another $135,000. He said they can use the 4.5%, restore the rolling stock, fund the communications director, keep Station 3 open and Livingston can get those numbers with no utility increase.

Purcell said tonight they are trying to review the cuts to come up to $1.5 million, if it does they balance the budget and if it doesn't they have to find other cuts or go to a utility rate increase, etc. He said the members have additional ideas and they may make it if they can get through the reduction book.

Repair and Maintenance (211) - reduction not accepted.

Training and Travel (265) - accepted reduction.

Capital Outlay (312) - accepted reduction.

Wastewater Collection

Capital Outlay (311) - reduction not accepted (rolling stock)

Water Treatment Plant

Electricity and Natural Gas (248) - remove, item is a wash

Capital Outlay (311) - reduction not accepted (rolling stock)

Equipment Maintenance

Eliminate Auto Service Worker I (100) - accepted reduction

Solid Waste Collection

Contract Labor (104) - accepted reduction

Overtime (108) - accepted reduction of $10,346 (less rolling stock of $80,000)

Solid Waste Disposal

Overtime (108) - accepted reduction

Repair and Maintenance (211) - accepted reduction

Capital Outlay (312) - accepted reduction

Wastewater Maintenance

Capital Outlay (311) - accepted reduction (explanation below, this item is funded through the sewer maintenance fund which is a dedicated fund and cannot be used for other purposes in general fund).

POLICE DEPARTMENT

Headquarters

Capital Outlay (311) - reduction not accepted (rolling stock)

Uniform

2 Police Officers (100)

Schumpert said Assistant Chief Ward contacted the people servicing the grant and they indicated the police department reduction through eliminating the DARE officers would be interpreted as a reduction in uniformed officers by the grantors which would place the current and future grants in jeopardy.

Ronnie Ward said he talked to Jackie Burgess, acting in place of Delta Perry, who they normally deal with and was on vacation. He said he asked Burgess if they were to eliminate the officers in the DARE positions would it meet the grant's conditions and was told it would definitely not.

Purcell said he understands that if that was the way the question was asked that would be the answer they would get but the net effect was that they did not eliminate any DARE officers, they eliminated paying them but they still have four DARE officers, one extra officer on the street if they eliminate two and if Burgess' contention is right they could never eliminate a police officer because of the grant.

Ward said he explained they were looking at the possibility of Ft. Sill taking over their DARE officer positions with three of their people which would free three positions with one being returned to the street and Burgess said that would be supplanting because they were uniformed officers and the intent of the grant was to put more officers on the street. Purcell said based on that guidance they can't eliminate any officers from now until when because of the grant. Ward said the intent of the COPS program is to put more officers on the street, they are committed for three years for funding, the federal government is funding 75% of four officer's salaries for the next three years and at the end of the three years part of the agreement was that it is at least their intent to maintain that level of police officer services. He said right now the funding issue would be in jeopardy.

2 Police Officers (100) - reduction not accepted (due to the grant)

Capital Outlay (300) - accepted reduction in amount of  $43,100 (rolling stock - $265,000)

CID

Capital Outlay (300) - reduction not accepted(rolling stock)

Technical Services

Capital Outlay (300) - accepted reduction

Training

Capital Outlay (300) - accepted reduction

FIRE

Close Fire Station #3 (located in Ward 4) - reduction not accepted

Purcell said no matter where the fire station is located they only have a couple of functions to do, police and fire protection, water, sewer, garbage collection and streets; the other things they don't have to do but they are nice to have and he was not about to support cutting any fire protection regardless of any ward it is located in.

Capital Outlay (300) - accepted reduction in the amount of $141,410 (rolling stock - $30,000)

Reduction review completed.

Livingston said on the Public Works and Wastewater Maintenance, $180,000 given up is in the sewer maintenance fund and it will not help them fund the general fund, it is a dedicated fund and can only be used for sewer so it may as well be left in.

Council recessed at 7:30 and returned to open session at 7:40 p.m. with all members present except Beller who returned during discussion.

Livingston said the total reduction is $711,901; original reduction was $1,881,000 with the following items removed from the reduction total:

$750,000 - rolling stock

$135,000 - fire station

$180,000 - vector truck

$81,000 - pumping reductions for electricity

$54,000 - police positions

and other smaller items such as restoring some of the things in the city at large.

The amount needed is now approximately $900,000.

Powell asked how many of the Council members could agree with the energy conservation program he suggested. He said they could start with a 10% reduction the first year from the total expenditures last year for electricity and gas in the amount of $124,840. He said it could be started with no cost, Berry Beacham and Bob Deforest could provide assistance. He said it would take discipline, workshops in-house and department heads, with the most important being for the city manager and department heads to believe in this program for it to prove to be fruitful.

Williams said sometimes the city buildings have different characteristics than educational facilities and longer hours. He said they have implemented some energy strategy in some of the major energy using buildings. Powell said that is why he is suggesting a figure of 10% versus what the School District is doing which is 15% to 20% with some figures higher than that.

Purcell asked what Dick Huck thinks about the savings. Dick Huck said approximately 10 years ago the City started an energy conservation program and they attacked four of their major facilities which at that time were the energy hogs and got into the contract of HVAC. Have monitoring systems on Library, City Hall, City Hall Annex and the Owens Multi-Purpose Center and because they had a guaranteed savings locked into the contract, those four buildings saved approximately $49,000 over a three-year period. In the community centers they have set back the time clocks for the thermostats. He said the only area they haven't addressed is the lighting systems; they have a good handle on those buildings for the HVAC part. He said there are some they are not doing anything with at this time and he has asked Carrier, the HVAC contractor, to look at those which is primarily the Museum and the police station but that is a facility that is open 24 hours a day and they don't think there is anything there to save. He said there is a lot of possible conservation in the lighting which is an area they haven't looked at a lot. He said over the years as they have made renovations they have gone to the electronic ballasts and get rid of some of the older systems where they are phasing out some of the incandescent lighting and things of that nature. He said they would be looking at approximately six months to start implementing some of those areas and because of the technology there is some savings, it is just a matter of how long it will take them to get there. He said 10% is a realistic approach to begin implementing some of those things in January or February.

Powell said it would take a while to be educated, it isn't as though they would start up and see the effects next month, it would take a while to get it done.

Huck said they have expertise within the organization with building and safety, some of the contractors they are associated with as well as some of their public utilities. He said the question is how long it will take for them to get there to save for that one fiscal year and he would be comfortable to say for the year 1999 or 2000 there is a savings of 10% or more but for the first year he would be reluctant to say they could get there that quick.

Warren said yesterday they spec'd new LED lights for traffic signals and couldn't remember the number but asked how much it was going to save them per intersection. Graalum said with the LED lights they are reducing the traffic signals from an average of 120 watts of usage to 13 watts of usage which is a little better than 80% reduction of 75% of the time the signals are on; for an average intersection they would be looking at a cut from $55 down to $15 to $18 a month with approximately $30 a month per intersection.

Ihler said looking at a 10% cut across the board, the electricity cost at the Water Treatment Plant is for Pump Station No. 4; Wastewater Collection is for lift stations and those costs are based on actual costs for buildings and operating the pumps, etc. and they can't shut the pumps off. He said in order to consider more cost efficient pumps there would be a big capital cost so from the Water Treatment Plant, Wastewater Treatment Plant and Water Distribution, and those that are in charge of those types of pump stations it would be very difficult to go in and cut 10% across the board, as an example the Water Treatment Plant is $200,000 plus.

Powell said they would still be over a million dollars without those two so they do have a big chunk to work with.

Williams said he would feel more comfortable, rather than going with a 10% which would equate to $124,00, maybe just identifying a number of $50,000. Powell said they could take half of that for $62,000.

Powell said he went through the overtime and there has already been $15,100 reduced in the 4.5%. He said the overtime for the entire city was $722,615 and was looking at a 20% reduction which would be $144,523 and asked the police and fire departments if there are areas they can't touch.

Ronnie Ward said the overtime regarding the police department is for court purposes; investigations in their account 67 and late calls and call backs account for most of their overtime as well as special events held on weekends particularly for races, walks, etc. that require some type of police services. Powell asked if there is some type of cut they could work with in the department.

Shanklin asked who Powell was going to assign the reduction to. Powell said his thinking was that each department would bite the bullet for 10% and asked if that is a workable number.

Ward said it would be difficult for them to get there because they can't predict how many investigations they are going to do or how many court appearances will have to be made.

Chief Barrington said most of their overtime is the manning issue. He said when there are personnel off duty there is a call back to maintain the minimum manning requirement and there are some programs and obligations. He said it isn't predictable to any degree of accuracy if they are directed to try to work with a 10% cut they would do all they could to accommodate it but couldn't guarantee it.

Williams said overtime for the Fire Department is $155,000.

Powell said it seemed as though $722,615 was too much being spent for overtime for the entire city. Purcell said the police and fire overtime was approximately $300,000 plus. Powell said there would still be $422,000 in overtime throughout the city. Powell requested they take out $50,000 from the overtime.

Powell said part time was $453,004. Purcell said he was reluctant to take much out of part time because a lot of that money is seasonal in Parks and Recreation and they may be able to take out 5% or 10%.

Warren said in budgets past, a lot of times they have acquiesced to substitute part time rather than pay full time employees so some of the departments are now working with part time employees when they really need full time employees and because of budget reasons they have reduced them to part time. Powell said he thought about those things but with the budget cutting process if they worked diligently as department heads there is room for some percent and asked what percent they would like to work with on the part time.

Williams said part time is $453,000. Purcell asked what services they are going to cut out if they take out 10% of the part time workers. Williams said they don't know they will reduce services because they have never done that. Purcell said if they have less people out there something is going to have to suffer. Williams said this may force them to find a more efficient way to do the job.

Powell said 10% would be $45,300 and asked if the council agreed.

Consensus was to reduce the part time by $45,000.

Powell referenced the number of backhoes they already have and asked if any back hoes were deducted in the 4.5% reduction. He said there is one in Public Works and one in Parks and Recreation for a total of $95,000 and in view of the number they already have and the recent purchase of a backhoe it could be reduced. Mike Shaw said the purchase was for the landfill. Powell said he understood that but they have nine or more at the Public Works yard that he counted Saturday. Williams asked if they were all operational. Powell said they weren't in the shop area.

Williams said if they cut, these are components that they are probably going to need when they start doing some of the infrastructure. Powell said there will be an outlay that can be addressed at that time and would deal with it then because they would be dealing with one project and one only. He said if it was a replacement item he would consider looking at it but to his knowledge it is not a replacement item. Ihler said the backhoe is for water distribution and it is a replacement for a 1985 model that they have spent $23,000 in maintenance to keep it running. Powell asked what they will do with it when it is replaced, will it be used for a trade in. Ronnie Graves said the 1985 or oldest one with the highest maintenance will go to the city auction. Powell asked if the request was for $48,000 and Huck's was $47,000. Powell asked what value they would get for the backhoe going to auction, would it be bid at about $18,000 to $20,000. Ihler said that would be too high at an auction.

Williams asked if the one in Parks and Recreation was for the Lakes. Huck said it was for Park Maintenance. Purcell said it was a replacement. Huck said the backhoe to be replaced is an early 1980's model which will be traded in or auctioned, they only have one in the entire operation. Williams said it is hard to share but asked if Huck could get another year's life from the one they have. Huck said during the budget presentation they were looking at making the purchase in the last quarter if he had to prioritize, and if they were to defer it he would hope that in the 1999/2000 year that would be one of the first quarter expenditures in the replacement. He said they would be adding another six months to the life of it, it isn't in the shop but there isn't much sugar left in it.

Powell said they could take it down the road a little further. Huck said they can try to keep it running for another year but need to make sure it gets into the next fiscal year as a priority purchase item.

Powell said this item would be $47,000.

Ihler said with regard to the Public Works Department, the overtime is the operation of the gates during rainfall events and water distribution, which is when leaks or breaks occur on those times when they don't have shifts, they aren't scheduled overtimes, they are just as they come they have to do them and the budgeted amount was approximately $130,000 to $140,000.

Purcell said on the percentage or dollar cuts they are doing, the City Manager is going to need to determine where these percentage cuts are going to come from. Schumpert said if they go across the board they may come back needing more money, at this stage of the game they have to have a budget put together by June 23 and they can't set down with every department and every division and fine tune this. He said they are going to try to address it across the board and when they come back and can justify the fact that they prudently used their money the way they were supposed to use it, they are going to have to pull it from someplace and give it to them and if they run out they will come to council.

Powell said they are now looking for $684,099.  

Williams reviewed the remaining items in Fund 35 and said the money is for projects that may or may not happen any time soon. He said as far as the lights on 17th and "G" they don't know what is going to happen with that property. Schumpert asked Cruz if they have the ability to take the money from this fund and scatter it throughout the budget. Cruz said they would have to take formal action at a later meeting to discontinue some of the projects and take the money out.

Items referenced: Tractor in Solid Waste Disposal - $22,000; resurfacing Neil Blvd. - $22,563.75; building maintenance break room - $2,758.43; purchasing file room - $1,020; 17th & "G" - $77,319; storage building electronic maintenance - $10,041.

Ihler said with regard to Fund 35 on resurfacing of Neil Blvd. he needs to verify the information but believes ODOT and the city entered into an agreement where the city usually pays for drainage and grading and ODOT pays for surfacing and there was some type of agreement where the city's portion was $22,000. He said that was done several years ago and didn't believe ODOT was done with their auditing, it takes them a couple years before they will send them a bill.

Williams asked if these are CIP projects. Livingston said no, if the Council decided to free the money up for a project they approve in the budget, such as the $50,000 for roads at the Lake, that would qualify and they would leave it in the fund. He said he would expect the council could free the money and take them out of the CIP fund back to the general fund, they were not dedicated revenues when they received them they came into the general fund. Williams said the money is fair game to be transferred or used for something else in the budget, something similar, roads, water lines, etc. Livingston said it would be best if they dedicated it to capital improvement items.

Cruz said if the money was in the 1990 or 1995 CIP then the money would have to be used for CIP but these are not funds from those programs.

Williams said they could do something with those moneys and reiterated the items as noted above with a total of approximately $130,000.

Huck said in regard to the lighting from insurance that was money received a couple weeks ago from when they had storm damage and lost the lighting at 17th & "G". He said it was brought before council that they would look to putting the insurance money toward future facilities they would build on their own properties. He cautioned or hoped they would maintain the integrity of what the money was for which was to replace youth facilities that are under design and hoped to bring that back to them very shortly to put it into the east side park development or other possibilities that are under design right now. He said they will be under a very critical situation very shortly with some of the things that are happening in their youth sports program even if it is a year away they need to take that into consideration when spending those moneys.

Williams said they need to be mindful of where they are going to have some of these sporting events and youth activities but the real crux of 17th and "G" revolves around the county commissioners inability to provide the city with a five-year or longer agreement where they could contract with PSO to go in and furnish lights and provide fields to play on. He said children have been playing baseball at 17th and "G" ever since he played there and that is not a proposed area to build a prison or jail and that may have been one of the commissioner's ideas and may change in the election coming up. He said if there is an opportunity for a long term agreement lights could be put back up there.

Warren said he was concerned because they have made decisions to do certain projects and they have evidently voted in the manner in which the constituents wanted them to do and now in order to balance the budget and to prevent them from raising utility rates in some way they are going to tell them that the things they wanted them to do the council is not going to do but there is a new list of things to do or maybe they won't. He said he has a problem with that.

Beller said he would like to look at some tradeoffs, obviously these are encumbered funds because they are in the planning stage but they looked at scratching a tractor for the Solid Waste Disposal at about $22,000 and they don't ask what effect that will have on solid waste obviously they need it to do solid waste, etc. but is the tractor more a priority than upgrading Robinson's Landing sewer to accommodate a few more campers. He said in his opinion he would rather see them spend $22,000 for the tractor and put the sewer upgrade on the back burner to accommodate some campers or work solid waste and there should be a trade off to prioritize some of these things.

Smith reviewed his list of items with the following additional explanations: Public Works - had eliminated two trash waste collection supervisors but since Ihler didn't think that was feasible it isn't included; front-end loader isn't included because Ihler said they are in dire need of that; eliminated a half ton pickup that isn't in rolling stock and stayed with Ihler's recommendation on not filling the vacancy of one supervisor that will retire.

Powell asked if any of the items Smith referenced had already been taken out during the previous discussions.

Purcell said the only capital outlay they now have in the budget in terms of equipment is the rolling stock and asked if that is incorrect. Schumpert said there are items included that are not rolling stock.

Purcell said he also had the two supervisors from Public Works included in his list, they won't have trucks and could be used in lieu of a new truck in the budget, unless taken out, for Wastewater Collection. He said if they are going to take the heat that the trash won't be picked up if it wasn't there when the trucks go by first thing in the morning to pick up, asked if two of the three supervisors could be eliminated. Ihler provided the duties for the two field supervisors for residential and the field supervisor for commercial. Ihler said there are three supervisors that cover the 13 residential crews and two of those supervisors are responsible for four of the three man crews, or 12 people each; the third supervisor has 15 people he is responsible for. Ihler reviewed the residential supervisor list provided with the following additional information: Last week during the 110  temperatures, in one day they had four contract laborers quit in the middle of the day so the supervisor had to go back and get additional contract labor and coordinate those efforts. Ihler reviewed the duties of the commercial supervisor and said the duties are greater than the residential supervisors. He said picking up trash when someone sets it out late is not their only duty.

Williams asked if they are going to do anything with Fund 35. Purcell said they need to be careful with Fund 35.

Powell requested they go back to the recommendations from Smith to insure the items he had listed hadn't already been deducted and either accept the items or eliminate them.

Upon review of the list provided by Smith the following items were determined not to have been deducted previously or were not rolling stock:

Library - Van - $23,600

Park Maint. - Belt mower: Two belt mowers budgeted, one belt mower had been deferred previously, Smith was including the second mower.

Huck said they needed to retain one mower to maintain the parks and Council agreed to retain one belt mower.

Shanklin said they have eight new mowers at the lakes and they can't use all eight. Schumpert said the council has given the Lakes to Public Works so Huck no longer has that equipment. Shanklin asked for the question to be answered. Huck said the belt mower is pulled behind their tractors to do the finish mowing, they are 6' belt driven mowers to maintain the parks, they are not riding or push mowers.

Athletic Maintenance - Truckster $2,500

Huck said this item is to replace a key piece of equipment that is 10 years old and is used to maintain their athletic fields.

Powell asked what kind of condition the equipment is in that they are currently using, if it is still functional. Huck said it is about 10 years old and was purchased in the mid 1980's, they either replace them or continually fix them. He said they have one at each of the complexes and there are two at Grand View. Powell said it isn't as though if one goes down they are out of business.

Athletic Maintenance - Truckster $2,500 - accepted reduction

Leisure Services  - Video Projector - $6,725; Portable sound system - $1,400

Huck said the sound system they now have is antiquated and needs to be replaced for their different events, in the Parks and Recreation area that is a very important item that they need to replace and are hoping to replace it in the very first quarter. Green said that item is needed.

Portable sound system remained in budget.

Shanklin asked what the video projection system for $6,000 was going to be used for. Huck said they were planning to use it for some special events such as the Friday night live program that was part of a contract at one time for the young people, primarily the ages of 9 to 14. Shanklin said he didn't understand what it does. Purcell said it is a big screen T.V.

Streets - front-end loader $90,000

Ihler said the front-end loader is used to scoop up the remains of streets that are broken up in chunks, the one they have is a 1976 and is not in service, the engine was blown. Powell asked how many the city owns. Ihler said that is the only one in the Street Division and was the one item the superintendent absolutely most wanted to keep and justified it by the fact that the one they had was in the shop with a blown engine and that is a big maintenance item to replace the engine.

Williams said if they cut the equipment they need to work with they won't be able to do the work.

Item was removed from consideration - rolling stock.

Purcell asked if any of the items that Smith is suggesting are new items or replacement items because he is reluctant to cut any of these items. He said three or four years ago they had a terrible problem in the city, the equipment didn't run anywhere they looked and they are finally starting to come out of that, they are taking huge cuts out of non rolling stock items and now they are trying to take more. He said the reason for having the rolling stock was because the money in the budget wasn't enough to keep them out of trouble so it was generated to produce another $1.2 million and if they continue this past this year, within two years they are going to be in the same position.

Smith said they have to eliminate capital outlay, people or raise utility rates. Purcell they may be at the point where they need to discuss the other issues.

Schumpert said at the time the $3 rolling stock was put on the bill the city manager and staff were directed that they could not reduce the capital outlay and fortunately the council didn't apply that to them this year.

Water Distribution - Superintendent to be vacant due to retirement $20,398

Ihler said a supervisor may be retiring and it was understood that it was already put in the budget as a vacancy. Smith withdrew his recommendation.

POLICE

Patrol boat $25,000

Chief Adamson said the boat that is being replaced is eight years old, the engine is seven years old and it is running high maintenance costs but is still floating so would give up the boat.

Patrol boat - $25,000 - reduction accepted.

Smith concluded his summary of items.

Powell said there was a department wanting an ice maker for $2,200 and another for $3,300 and asked why there is such a difference in price.

Huck said there was one in Parks and Recreation to replace one in a community center at $2,200.

Chief Barrington said they had two for $3,000 and those were eliminated.

Powell said the total included in the reduction as provided by Smith are the truckster - $6,725; shuffle board, etc. - $2,400; patrol boat - $25,000; total $36,625.

Purcell said they are still short $647,474.

Williams referenced Page 154-155, Preliminary Budget, 1990 CIP program where there is approximately $1.8 million: Fire Station No. 5 has not had anything done with it and there may be other projects that aren't high on the priority list or would have been done, or the engineering is in different phases. He asked Cruz if some of the project's funding may be diverted to other capital improvements in the current budget.

Shanklin asked if they could use the funds for the I&I.

Warren said he had a problem with this because they are now diverting money from a CIP project that people talked about and said they were going to do and now they are not only dipping into the CIP to do other projects they are saying they won't do it any more they are going to use it to balance their budget and he didn't think it was right.

Beller asked where they were on the Douglas Avenue reconstruction where there is $790,000 still unexpended. Ihler said he anticipated coming before the Council in July asking for approval of plans and specification and advertising for bids. He said he could go through a few of the items listed.

Williams said the Council has talked about another entity out there that sets on millions of dollars and then asks the taxpayers for an increase for ad valorem and the Council is sitting on moneys for projects that could be used for something.

Beller asked what the Rogers Lane NW 82nd Street project is. Ihler said that is the 82nd Street project which has funding encumbered for the relocation of utilities and right-of-way acquisition. He said ODOT is anticipating a December bid letting but the City has to have the utilities and right-of-way prior to ODOT letting the bid. Beller suggested moving on to something else.

Williams said there is $75,000 included in this for a fire station and in the 1990 CIP the Council did not tell the citizens they were going to spend money on repairing a fire station. Shanklin said there aren't any projects left that were on the resolution that were identified with the funds that they would spend.

Williams said if the Council members are so intent on raising utility fees to balance the budget they need to say so but there are money's out there that they can do something with.

Powell asked what the Council wants to do about the $75,000 that is in the CIP for the fire station.

Beller suggested taking a consensus of leaving the 1990 CIP as it is.

Purcell said he agreed with Beller because they used some of the money in the 1990 CIP to cover year two of the rehabilitation. Shanklin agreed.

Sadler said all he could see was the fire station. Smith suggested taking out the fire station and closing the book.

Schumpert asked where the Fire Station is located. Barrington said the fire station is near Eisenhower.

Shanklin asked what they were going to do with the $75,000. Barrington said it was for renovation due to settling of the station and OSU did a survey for them and recommended the station be relocated. Sadler said the access is difficult and they may not need to spend the money at this time.

Shanklin asked where the money would be spent because it has to be capital improvements. Williams asked if there are no capital improvements in the budget.

Purcell asked how 1990 CIP money would be moved into the operating budget for 1998. Cruz said it would be moved to the CIP.

Barrington said $75,000 wouldn't begin to make the improvements needed to the fire station.

Powell asked for a consensus to close the discussion on the 1990 CIP funding.  

Council members asked what the money would be used for and Williams asked if he was being told that there weren't $75,000 worth of capital improvements in the 1998 budget.

Schumpert said the place they have construction is Account 321.

Williams said the water line for the Roadrunner Project is $45,000 and thought they had identified that as coming from the 1995 CIP potentially but it could come from the 1990 CIP.

Cruz said it would have to be for CIP and there are CIP items in the 1998 budget. He said he believed the Council approved a Resolution identifying certain projects to be undertaken by the 1990 CIP and he has to look at the Resolution and determine if the Fire Station was in the Resolution that was approved.

Schumpert said the question was what account in the budget was considered CIP. He said whether they take the money for the Roadrunner Project from the 1990 CIP or 1995 CIP it would be a wash because they will have to have money from the 1990 and 1995 CIP to meet their two-year goal for the sewer rehabilitation.

Beller asked for a consensus as to continuing consideration of the 1990 CIP funds.

Powell asked for a consensus and the consensus was to close the discussion of using 1990 CIP funds. Powell asked if they are now dealing with $647,474 and Livingston agreed.

Powell asked if Livingston is on target with the projected income. Livingston asked if Powell was talking about this year's revenues or next years and Powell said the revenue that will be within this budget.

Livingston said the sales tax was estimated and another $160,000 was included; they have had a very bad year for water revenue, if it stays dry now it could turn it around but at this point they are looking at being down a half million dollars.

Warren said they have gotten more than they thought they could get and didn't see them getting a lot more.

MOTION by Warren, that they take what they have and direct the powers that be to lower the minimum on the utility bill which will free up some money and put that in council contingency.

Beller asked if they would be reducing the minimum from 3,000 to 2,000 gallons. Warren said that was correct and it would free up $782,700.

SECOND by Beller.

Shanklin said he wasn't ready to quit. Beller asked Shanklin if he thought it was feasible to go to the 2,000 minimum gallons from the 3,000. Shanklin said not until they were satisfied they could do everything they could. Shanklin said they could take it home and look at it and have another meeting.

Williams asked what a 2% increase for inflation in the present utility bill would do, because that is something that should be built in. Shanklin said it would generate $7 million on the water bill. Livingston said they get $13,340,000 on water and sewer and about $14,300,000 on refuse and if they just increased the water and sewer it would be about $138,000, 2% would be about $270,000.

Williams said the utility bill is for water/sewer/solid waste, they could put it all together. Livingston said a rough number would be approximately $360,000 at 2%. Williams said he would support some mechanism to be put in place that would coincide their budget with whatever the prevailing increase in inflation would be. Purcell said he has an agenda item for the next Council meeting for that. Shanklin said he could agree with that.       

Purcell said as long as he has been on the Council there has been discussion that they have too many gallons and this is still a raise in utility rates. He said they have said the minimum of 3,000 is too high and they may be the only city that has a 3,000 minimum and they need to reduce it to 2,000. He said it is a utility increase and hated doing a utility increase but would support the minimum to generate the $787,000 to be put in contingency which after some of the things they cut and didn't restore the staff will be back asking for it because they cut a few too many things.

Beller said this is only a recommendation and would bring back the ordinance.

Shanklin said they won't need another budget session because they will exceed the amount.

Beller asked for a roll call.

Powell said they have a motion on the floor to decrease from 3,000 to 2,000 gallons minimum usage. He said he hated to see them make critical decisions when they are tired and have worked as long as they have and they could recess and come back at 5:30 p.m. on Monday. He said he hated to see them make this decision at this time when they are tired and have been at this for four hours.

Williams said he agreed with Purcell in regard to the minimum fees and they need to enact that to finance the infrastructure repairs. He said if they were looking at being $600,000 away a 2% increase would bring them to $300,000 and thought there was $300,000 in the budget with Fund 35 and $1.8 million in the 1990 CIP and they should be able to figure out a way to come up with $300,000.

Purcell asked to take a consensus vote because they will have to come back again anyway to finish the budget and if they want to do away with it then, because someone comes up with $600,000 more in cuts, then they do away with it and be done with it.

Smith asked if the motion and second was not to actually change the minimum but to recommend reducing the minimum.

Beller said they would hope if they vote yes tonight they would vote yes when they come back.

Warren said he typed his recommendations when he wasn't tired and this recommendation was included on his list.

The members discussed the motion and services possibly being cut to fund the budget.

ROLL CALL: AYE: Green, Warren, Smith, Purcell, Beller. NAY: Williams, Sadler, Shanklin. MOTION CARRIED.

Powell said he commended the council and staff for doing a good job on the budget.

There was no further business and upon motion, second and roll call the meeting adjourned at 9:10 p.m.