Meeting of 1998-6-16 Special Meeting

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

1. Consider adopting a resolution amending Appendix A, Schedule of Fees and Charges, Lawton City Code, 1995, amending the water consumption and related rates and providing for an effective date. Exhibits: Resolution No. 98-109.

Schumpert said a corrected copy of the Summary of Budget Action To Date had been distributed. The Republic water line had been shown as an addition. It should not have been there so it was removed. Council Contingency is shown as $115,750. Schumpert said based on Council’s last meeting and the changes, a resolution was prepared reducing the base bill from 3,000 to 2,000 gallons and changing the fee for new accounts from $5 to $20.

Williams referred to the budget summary sheet and asked if $632,583 was needed to balance the budget. Schumpert said $632,583 was added to the budget and asked Livingston if that amount was needed to balance the budget. Steve Livingston, Finance Director, said there was a total additional cost of $632,583 but a number of reductions were made. Schumpert said you have to take the additions and reductions together and identify the changes in estimated revenue, and by doing that, the budget is balanced with an additional $115,000 in Council Contingency, if Council approves Items 1 and 2.

Livingston said the items adopt all the changes and additions, which is the $632,583 into the operating budget; it would make the reductions to the preliminary budget including the 4.5% decrement of $697,000; includes the electric cost savings and other changes recently made; changes the base rate thereby increasing revenue $717,400 changing from 3,000 to 2,000 gallons on water, and increases the new account fee from $5 to $20 for $116,000 to be added to the budget. The $5.65 was taken out of the budget for $2.2 million; action was previously taken on the landfill fees for $600,000; the remaining additional revenue numbers were changed based on better ideas and greater revenue numbers. The only other item that has not been acted on regarding fee increases is the Police records fees, which is $39,000.

Williams said the additional revenue from the base consumption change is $717,400. Livingston said if that increase is not approved, $717,400 will be needed to balance the budget, less the $115,000 from Council Contingency, so $602,000 would be needed to balance. Williams said $602,000 would be required to balance the budget either by the method shown on the agenda or by the addendum item that he recommended.

Purcell said Council is discussing Item 1 which is to do what the Water Authority supposedly was going to recommend, and he did not see how this could be discussed now, by Council, without having the Water Authority first, and it seemed to be backwards. He suggested the City Attorney respond. Powell said he had asked the City Attorney earlier and that was why he did it this way. Purcell asked why a Water Authority meeting would be needed if Council had already acted. Shanklin said Council would recess and convene as the Water Authority. Beller suggested a vote be taken.

Cruz said the question was whether Council could be convened prior to the Water Authority and the answer was yes, it is permitted under the agenda. He said the concept the Mayor had was to consider, under the Council, which of the options would be considered; those being the reduction from 3,000 to 2,000 as proposed in Item 1 or the option included in the Addendum, and once that is decided, then Council will recess, convene the Water Authority and act on that, then reconvene the Council and adopt the action.

Purcell said they had spent a month and a half going over the budget and agreed at a previous meeting that there would not be a 2% increase, it is now brought back from last week’s special meeting after it had been turned down and that is a violation of the Council’s own rules. He said it seemed like it was being done again so they could change people’s minds. Cruz said the vote last week was for consensus only, and not an action, so it is not a violation of the rules.

Shanklin said there is $283,000 in Museum asbestos abatement which should be taken from CIP funding. He said it could be paid from 1995 CIP and that was when they first became aware of the problem. Shanklin said he did not know the legality of taking it from the 1990 CIP. He said that is almost half of the $602,000 necessary, so Council would be looking for $300,000 and holding the line.

Shanklin said he would make a motion to take the $283,000 from the 1995 CIP. Powell asked if it is currently in a CIP. Schumpert said $283,000 for Museum asbestos abatement is shown in the regular budget and the motion is to take that cost and move it to the 1995 CIP. Shanklin said there is $75,000 in one of the CIP’s that will never be used for the restructuring of a fire station.

Schumpert said on the 1995 CIP, Council talked about it but never really got down to identifying the number, enough funds were set aside in the 1995 CIP to cover the first year of the sewer rehabilitation program. The funds remaining that were not encumbered against any contracts, spent or programmed to be spent in the 1995 CIP starting out with $1.9 million, if we cleaned up all the projects and took away the $1.9 million that Ihler was using for some projects and stop those, put them back in, we were at about $2.3 million; now you would take the $283,000 off the amount that was going to be used for the second year of the sewer. Purcell said we need $2.6 in the second year and if you take the $283,000 out, you need over $600,000 in year two. Schumpert said that is correct.

Williams said there is a fairly even split on how to fund the budget, either with a utility minimum and/or trying to identify existing projects that could be funded from a CIP or Fund 35. He said Council is attempting to balance the budget, and that Purcell had mentioned that funds be taken from previously quasi-identified funds from the 1995 CIP for the second year of the sewer rehabilitation program, and Council has not yet fought that battle but would do so after the budget is done. Williams said there are ways to fund the second year and subsequent years of the sewer rehabilitation program.

Purcell said there is not; Council tried to get the tax increase for sewer and for years 3-7, the tax increase would not start, if it is approved, until January 2000, so we have to cover year two. He said Council agreed, and Ihler came up with $1.9 million and there were others, and they got up to $2.3 million but $2.6 was needed so they are still $300,000 in year two short. Purcell said the proposal to take another $283,000 from that would put them about $600,000 short.

Purcell said one of the reasons for the shortage is that last year, after the budget was balanced, an arbitrator decided the City would pay another $400,000 to $500,000. He said certain Council members voted not to take the matter to a vote of the people. The latest report shows the 100 Accounts in the Fire Department are $400,000 to $500,000 over their budget due to that action, which carries over to this year, and there is somewhere in the neighborhood of an $800,000 to $1 million problem this year because of a vote Council took last year. Purcell said there will be a problem in the next fiscal year for funding the sewer rehabilitation and there is no other way to get the money because the taxes will not go into effect, unless a proposal is submitted, but the City would not see the benefits of the tax until January 2000.

MOVED by Purcell, SECOND by Beller, for approval of Resolution No. 98-109, which is in the original Council agenda that proposes increasing the fee on new accounts from $5 to $20 and reducing the base bill from 3,000 to 2,000 gallons.

Williams said the way to meet the short fall is a utility fee of $4 or $5 to fund the infrastructure repairs that would go on in July or August, and those funds would carry the City until the year 2000 and subsequent years of the different phases to pay for that shortfall. Purcell said they had already decided where the shortfall would be funded in year two but Williams is proposing to take that away and put another increase on the utility bill to fund the shortfall.

Shanklin said he thought there was an error in the figures because if you take $1.9 million from the 1995 CIP, and $800,000 in the 1990 CIP, and add those together it is $2.7 million. Beller asked if the $800,000 was Douglas. Williams said it could be, although it had never been identified. Shanklin said there are not that many houses on Douglas and it is not that high of a priority.

Council meeting recessed at 5:55 p.m., at which time the Lawton Water Authority special meeting was convened. Council reconvened in special session at 6:15 p.m. with roll call reflecting all members present.

2. Consider a resolution approving the fiscal year 1998-99 Budget. Exhibits: Resolution No. 98-110; List of adjustments and changes; final budget summary (distributed at Council meeting).

A resolution of the governing body of the City of Lawton adopting, approving and promulgating an official budget for the City of Lawton for fiscal year 1998-99 in accordance with the provision of the Municipal Budget Act of the State of Oklahoma; approving the appropriations, estimate of revenues, and the planned expenditures contained in said budget for fiscal year 1998-99; establishing and approving the sinking fund levies set forth in said budget for fiscal year 1998-99; and directing that said budget be filed and published in accordance with State law.

Purcell said a meeting was held earlier today and the Commanding General gave an outstanding speech. He had taken a survey of 200 young soldiers at Fort Sill and listed the items they felt needed improvement, as well as the areas they felt were great as far as living in Lawton, to include the friendliness of the people. Purcell said he would like to publicly commend the Commanding General and that he had received positive comments in that regard.

Powell said he had written down the things mentioned by the Commanding General that could be improved. He said the announcement was made today that the Army had accepted all actions for Fort Sill to be annexed to the City of Lawton. Powell said it was his understanding that legalities had been taken care of and that an item would be considered in that regard next Tuesday night.

Green said the Juneteenth Celebration was successful with approximately 1,500 people in attendance. Food was served for three hours. She said it was the largest crowd ever and that she had never attended an event with such a large attendance from that area.

Warren said in respect to the Fort Sill annexation he would offer a personal thanks to prior Mayor Marley because he spearheaded that effort which will be a very positive thing for Lawton. Sadler asked how the wards would be adjusted. Schumpert said the Redistricting Commission will need to meet. Shanklin said there is a newspaper article about how populations would be counted and that it could result in a problem.