WEDNESDAY
JULY 15, 2015
The
Governing Body of the City of Pratt met in Recessed session in the Commission
Room located in City Hall.
PRESENT:
Lucus Kumberg Mayor
Bill
Hlavachick Commissioner
Jeff
Taylor Commissioner
Gary
Skaggs Commissioner
Doug
Meyer Commissioner
ALSO PRESENT:
Dave Howard City Manager
LuAnn Kramer City Clerk
Ken
Van Blaricum City Attorney
Diana
Garten Finance Director
CALL TO ORDER:
The recessed meeting
was called to order by Vice-Mayor Hlavachick. The Vice-Mayor instructed the Clerk to note that all Commissioners were present with the exception of Mayor Kumberg.
The Vice-Mayor reminded the audience
that this meeting
may be taped and/or recorded.
INVOCATION AND PLEDGE OF ALLEGIANCE:
Commissioner Taylor
led the staff and audience
in the invocation and Vice-Mayor Hlavachick led the Pledge of Allegiance.
BUSINESS:
(Finance Director
Garten contacted Mayor
Kumberg and he would be arriving in about 15 minutes.)
·
Presentation By Porter Loomis:
Mr. Porter Loomis stated that he wanted to give the Commission an overview of what was happening at Blythe Family
Fitness Center. Mr. Loomis commented that the Blythe
had been set up with lots of good intentions
and very little funding, but there was no endowment
of the foundation that bears their name. Mr. Loomis explained that the building
would be paid for next year and it had taken a lot
of fund raising through the community to achieve that.
Mr. Loomis
commented that they would be starting the transition by setting up a rehab for people who cannot use the hospital physical
therapy staff any longer. Mr. Loomis stated that the rules of insurance were that they could take you so far and then you were on your own. Mr. Loomis added that they were planning on working with Mr. Jason
Gallagher and getting
more physical education
starting this time next year. Mr. Loomis
read in the Wichita paper
that 71% of people ages eighteen to twenty-four would
not qualify for the military due to obesity.
Mr. Loomis
stated that the Blythe was a blank slate and explained that the volleyball coaches were happy that it had been too expensive to drop the roof.
Mr. Loomis stated that word of mouth
was tremendous. Mr. Loomis added that Ms. Kristina Kaufman
and Mr. Nick Barker do a great job managing
coaches and putting up with a lot of ups and downs. Mr. Loomis commented that their goal was to build on the twelve weekend events
so far this year and all ideas that could be brought
to the community were welcome.
Mr. Loomis stated that Recreation Director Pinkall and his department had been tremendous throughout the four year period.
Commissioner Taylor commented
that there was a disc golf tournament last weekend and wondered if they could set up a net and do a competition. Commissioner Hlavachick stated that he had seen a marble competition also. Commissioner Meyer commented that it would be interesting to see what the Blythe brings in. Commissioner Skaggs commented that lack of parking was a sign of success.
(Mayor Kumberg arrived
at 8:30 a.m.) Finance Director
Garten questioned growing
the volleyball tournaments to more than one day. Mr. Loomis stated that they were looking
at how to expand that.
Mr. Loomis commented that the reason for this presentation was that they had done a lot of the tournaments through
Travel and Tourism
and City Manager
Howard had suggested
that we do funding on an annual basis. Mr. Howard added that it did get cumbersome for Travel and Tourism, but there would be more discussion in the budget about the tourism dollars. Mr. Howard commented that other events and/or entities were starting to come to the Tourism for money, but they would talk about that later. Commissioner Skaggs stated that some of the money was for the street project and we needed that money to
be there. Mr. Howard added that the Lemon Park proposal was
also something that they would be revisiting. Mr. Howard commented
that it made more sense for larger
demands be done on a yearly basis and then be brought
to the Commission for their approval. Mr. Howard explained
that they were getting into dollars that would
exceed his ability to approve
if they were added together.
Commissioner Hlavachick commented
that it was a great facility and we needed to
do what we could to support it.
BUSINESS:
Budget
Goals/Highlights:
Finance Director
Garten stated that several
of the goals and highlights of the 2016 budget involved balancing or exceeding revenues
over expenditures in all funds, maintain
the mill levy assessed in 2015, rebuild cash and reserve balances
and reduce and reallocate expenses.
Ms. Garten explained
that the proposed
2016 budget was $23,555,235, which was down $300,000 from 2015. Ms. Garten added that we would collect
$1.8 million or 46.538 mills with the projected tax levied at $2,004,188 less the revitalization of $193,801; however,
this could change
through the Commission's direction. Ms. Garten
stated that the valuation was up about $800,000 at $43,065,131 and the net valuation was $38,454,987 or $38,455 per mill
once you deducted the revitalization rebate of $4,610,144.
Ms. Garten stated that one of
the highlights that needed to be looked at was that
there was a reduction of sales tax revenue
for the last three months in a row and there was $150,000 less income in that. Ms. Garten commented that goals were to minimize
the transfers into reserve accounts
and reduce or eliminate the
contingency amounts in the operation
funds. Ms. Garten added that we would be taking a gamble doing that. Ms. Garten commented that the
electric department staff had been reorganized and, with Mr. Howard and Director of Electric
Utilities Huber taking on more responsibility, there should be a reduction
there. Commissioner Skaggs
questioned if the water fund was able to
transfer this year. Ms. Garten explained that the revenues
came in lower than projected due to the weather and the Ethanol Plan had come on line. Ms. Garten
commented that there was a couple of transfers from capital reserves
to pay the wastewater debt service. Ms. Garten added that the water bond was almost
paid off and there would need to be a resolution for those
transfers. Ms. Garten stated that they would also be discussing the allocation of additional Travel and Tourism funds to the
Recreation fund.
Commissioner Taylor questioned if there was a quarterly report that would
track Travel and Tourism funds. Ms. Garten
stated that there was. Ms. Garten explained
that the guest
tax was flexible
depending on the rates of the rooms at the hotels
and we were down last quarter
by $60,000 over last year.
Ms. Garten informed the Commission that
we had reduced
advertising to offset
the recreation expenses. Mr. Howard stated that he would be meeting
with Recreation Director
Pinkall and Chamber
Director DeClue to discuss what the advertising plan would be.
·
Labor and Benefits:
Ms. Garten
stated that there was not a cost of limit increase for employees
in this budget. Mr. Howard added that a cost of living
increase had been in the past budgets,
but it was not this year. Mr. Howard
stated that he was not proposing
not doing a budget increase.
Mr. Howard reminded
the Commission that the increase had been done by merit increases
a few years ago. Ms. Garten commented
that inflation was at 1.6% so this was a good time if they were not going to do a raise. Ms. Garten added that a 3% increase
would add $184,500
to the budget. Commissioner Meyer stated that 3% was generous.
Commissioner Skaggs
questioned how the health insurance
had come out. Ms. Garten
stated that Mr. Howard and City Clerk Kramer had worked with the
sales representative for Blue Cross Blue Shield and kept the increase
at 3% instead of the 13% to 14%
and that 3% was included
in the budget.
Mayor Kumberg questioned
if there was an increase
in KPERS. Ms. Garten stated
that it went up 6% and that was a benefit for full time employees. Mayor Kumberg asked if we had any control over that. Ms. Garten stated that we do not, but KPERS was a fabulous benefit. Mayor
Kumberg commented that that was hard to justify to a young
employee. Mr. Howard stated that the City would pick up the increase in health insurance
and that could offset the lack of the 3% cost of living raise.
Commissioner Meyer questioned
how long we would be able to pick up the increase
in insurance costs. Commissioner Taylor
stated that he had been asked how long the City could keep covering insurance
costs and Ms. Susan Page and Mr. Porter Loomis
had commented that they may not be able to do it forever.
Commissioner Meyer stated that we needed to
educate the employees, but he did not want to reduce their take home pay. Commissioner Taylor commented that we should let them know
that we were picking up the 3% increase in insurance. Ms.
Garten reminded the Commission that we delayed coverage for sixty days for new employees
and that was approved during the budget work session
last year and
that was working
out well. Ms. Garten added
that, with the
increase in insurance costs, we may look at going
back to self-funding next year; however, there was a cost in doing that.
Mayor Kumberg
commented that he had visited
with County Commissioner Glenna Borho, the college and the hospital
about combining with the City and looking
at pooling insurance.
Mayor Kumberg stated
that we may not be able to stay with Blue Cross Blue Shield, but it was a buyer's market
and they seemed
to be interested
in the idea. Mr. Howard stated that we had visited
with the sales rep about
that and it depended on the claims
history of the other groups.
Mr. Howard added that the others could come out the winners
if they had a lousy claims history
and came on with a group like ours that had good history. Mr. Howard reminded
the Commission that we had a safety training program
through KMU and he encouraged the Commission to look at this real close before doing that. Mr. Howard added that this could be on the next agenda for the
City/County meeting. Commissioner Meyer questioned if our consultant would help with that. Mr. Howard stated that he would and he had made the comment
that he did not want us as a client next year but for the next ten years. Commissioner Taylor questioned how much we pay for insurance. Ms. Garten stated that it was around
$70,000/month. Commissioner
Meyer questioned what percentage of employees had our health insurance. Ms. Garten stated that it was at about 2/3. Mr. Howard stated
that age was also a factor. Mayor Kumberg stated that we could
always hire a broker with the emerging
markets being nontraditional. Commissioner Taylor commented that we could
look at raising
the deductibles. Commissioner Hlavachick stated that you could price yourself right out of business and lose some of your best
employees. Mr. Howard stated that insurance was always going to be an issue,
but you had to adapt and keep going.
·
Contracted
Services:
Ms. Garten stated that there were entities that we give monthly
contributions to and that amount had raised
last year. Commissioner Hlavachick commented that he would like to see the Food Bank get $100 more a month next year.
Commissioner Meyer questioned how much
we give to Blythe. Ms. Garten stated that it
was $9,000 to $12,000 per year, but they occasionally requested more. Commissioner Hlavachick stated that he would like to see the Hope Center
get $750 a month because
of their Circles program. Commissioner Hlavachick commented that they had had four people committed to an eighteen
month poverty program and the new class starts in September. Mr. Howard explained that we were basically giving
them money to help people pay their utilities, so they were essentially giving
us our money back. Commissioner Taylor commented that more agencies
should use Circles
and not continue
to give handouts, but teach them what they were doing wrong.
·
Mill Levy Comparison:
Ms. Garten stated that she had put together a mill levy and tax assessment
comparison of previous years for the Commission to review. Mr. Howard
commented that most valuations had dropped substantially, but our County had gone up 6%.
Mr. Howard added that we were the only County where
it went up.
Mayor Kumberg
questioned the tort and liability fund. Ms. Garten
stated that she had not put anything
additional in that fund, but there was a reserve
in case of a major law suit that would not be covered by insurance. Mr. Howard commented that you did not know when there was enough. Ms. Garten stated that she had been putting
the EMC Insurance dividend check in that fund and she had thought about putting it back into the general fund. Commissioner Meyer questioned if it could be used for the self-funding of the health insurance. Ms. Garten stated that it could be a
reserve. Mr. Howard explained that it used to be that groups of fewer than one hundred
could not self-fund, but that had changed.
Mr. Howard stated that the rep had come up with using some of our reserves to keep the cost down this year. Mr. Howard added that we could use the tort liability for self-funding since it falls into the insurance category.
Mayor Kumberg asked if we were going to start putting
back the dividends
into the general
fund. Ms. Garten stated that it had been talked about, but we never knew how much we were going to get. Mr.
Van Blaricum stated that, if you ever need it, it could be in the millions.
Mr. Howard added that it
was a gamble either way. Commissioner Taylor
asked if it would be to pay attorney fees and settlements. Ms. Garten stated that it would pay for anything that was involved
in that case. Mayor Kumberg
questioned if we could invest that money and use interest on that. Ms. Garten explained that you were restricted in what and where you could invest. Commissioner Meyer asked if you could
not transfer that money. Ms. Garten stated that you probably could by resolution.
Review legal budget:
Ms. Garten pointed out the legal form summaries
for the legal budget and explained
what would need to be published.
Ms. Garten commented that all the bond debt would be paid off by 2018 and those funds would come
back into the operating budget. Ms.
Garten stated that the cash was getting
down to an amount that was a mild concern, but being out of bond debt in three years gives us
the option of rebuilding cash or taking on
more debt if we needed
to. Ms. Garten added that the wastewater treatment plant loan through
KDHE was a $3 million
loan with $656,000
forgiveness.
·
Wastewater project:
Mr. Howard
stated that that project had been somewhat
of a disaster and the company that had provided the compressors were looking at replacing this system with a new system.
Mr. Howard explained that a
new system would cost about $750,000; however,
EBH would be paying for that. Mr. Howard commented that insurance would not pay the claim directly
to EBH, but would run it through
the City. Mr. Howard stated that Mr. Alan Luttrell
was a man of his word and he was going to make this right. Mayor
Kumberg questioned if this was the manufacture’s fault or the engineer’s. Mr. Howard stated that it was probably
both. Commissioner Skaggs asked about the sludge that was being taken to the County. Mr. Howard stated that EBH had paid to get a mixing strip at the landfill for loads that were difficult
to move around.
·
Fire Truck Lease:
Ms. Garten pointed out the Statement
of Conditional Lease Purchase on the fire truck and the fund page for funds with a tax levy. Ms. Garten commented that it was set up so that you could see the last two years. Commissioner Skaggs questioned the large amount
in the sale of assets.
Ms. Garten stated that was due to the fact that we did not know when the
Sandy Creek lots would sell. Ms. Garten
explained that the revenue comes
out of the general fund and goes back to the capital
improvement fund.
·
Department
Expenditures:
Ms. Garten stated that the next several pages were the expenditures of each department and they did show the increase in insurance costs. Ms. Garten
pointed out that public works had increased
by $30,000 and that was to crush
the concrete pile. Mr. Howard
added that they rubberize it to use in other areas. Ms. Garten stated
that the $30,000 budget would crush about half of what we had and Public
Works Director Rambat planned to budget a similar amount next year to crush the
remaining concrete. Ms. Garten added
that due to the cost, Mr. Rambat tries to spread it out over two years. Commissioner Skaggs questioned if we had the machinery to do that. Mr. Howard stated that we have someone bring in a plant to bust it up.
·
Recreation Fund:
Commissioner Meyer asked about the drop
in the Recreation fund. Ms. Garten explained that we had allocated more to Convention
and Tourism. Commissioner Hlavachick asked if we had hired an animal
control officer yet. Ms. Garten stated that they had hired Mr. Kris Dover for that position. Mayor Kumberg asked about the cemetery salaries. Ms. Garten stated that they had part-time help and Mr. Butch Simpson had retired. Ms. Garten pointed out the debt services page and that it was 5.2 mills. Ms. Garten added that this would go back into the general
fund once the debts were paid. Mr. Howard commented that it would help with the renovation of the Municipal
Building. Ms. Garten added that we would have that mill to do a bond issue for any big project as well.
·
Library remodel:
Mr. Howard
stated that there was a letter from Attorney Bob Schmisseur concerning a remodel at the
Public Library that would
cost about $300,000. Mr. Howard added that they were not requesting any funds to help with
that. Commissioner Taylor questioned if they would
need any transformers or in kind things.
Mr. Howard stated that he did not think so, but we would know more when they came in with the plans.
·
Noxious Weeds:
Mr. Howard stated that we had sprayed for mosquitoes about three weeks ago. Commissioner Taylor commented that Lemon Park had been bad. Mr. Howard
explained that we spray if there
were events going on. Commissioner Skaggs stated that the bind week was bad. Mr. Howard stated
that he had visited with Mr. Robert Torres about how bad Dollar General
had gotten. Mr. Howard commented that we were having trouble getting them to mow that area. Mr. Howard added that this would be a good topic to discuss
with the County at a joint meeting.
Commissioner Skaggs stated that he thought Doskocil's still owned that strip by Dollar General.
Mr. Howard commented that he knew that the City did not own any of that property, but we were going to spray that area anyway. Mr. Howard added that we would be spraying all of
the primary rights-of-way. Mr. Howard stated that we
could not go to others about theirs if we were not taking care of ours. Commissioner Skaggs
questioned if we were going for bind weed
only or a total kill. Mr. Howard commented that bind weed was
tough to kill.
Commissioner Taylor added that it could take up to two or three years in a row.
·
Tort Liability:
Commissioner Meyer questioned how the tort liability funds go
from $852,000 to $422,000. Ms. Garten stated that that was a carry-over from the previous
column. Ms. Garten added that the middle was the estimate based off of 2015. Ms. Garten explained that we have budget authority
to spend $450,000, but the true cash balance was $852,000. Ms. Garten
stated that we had no intention of spending it.
·
Fire Fighting Equipment:
Ms. Garten stated that there was one mill allocated for the fire truck payment of $37,189
and that did not leave much extra.
Commissioner Meyer questioned how we get them more money. Commissioner Taylor stated that you had to raise the mill. Ms. Garten commented
that this was for equipment
and we could budget more in
the General Fund.
·
Special Revenue
Funds:
Ms. Garten stated that these funds come in for special
purposes. Ms. Garten stated that this fund included the special highway
fund that was used for highway improvements and sales tax revenue. Ms. Garten added that
sales tax was projected to go down. Ms. Garten stated that the cemetery fund included the lot sales and services, but their wages were paid out of the general fund. Ms. Garten stated that we would talk more about Convention and Tourism later. Commissioner Hlavachick questioned
if revenue would be better when the Hampton
comes on board.
Ms. Garten commented
that that drives
the room rates down for all the motels; therefore, sales tax could
go down.
'Ms. Garten stated that the special
police fund was where the motor vehicle
fees were, along with any
forfeiture funds. Commissioner Meyer questioned if the body cameras could be
purchased out of that fund. Ms. Garten
stated that they could be. Commissioner Hlavachick stated that he
would like to see services for the police department include mental health issues.
Commissioner Hlavachick added that we get
some people that are arrested
that we are not trained
to handle and he had been in contact with someone associated
with rehab in Larned that would do training on how to deal and identify mental issues. Commissioner Meyer questioned if some of that money could be used to assist in that. Mayor
Kumberg commented that they had a grant for that. Commissioner Meyer stated that we needed
a commitment from our police
department. Commissioner Meyer added that some of the issues
could be related
to diabetes or heart and training would help us be more proactive
to help these people. Mayor Kumberg commented that some things had already happened that were newsworthy. Commissioner
Meyer stated that our officers had to make split second
decisions and they did not have time to get backgrounds. Mr. Howard commented that he did not know if they were getting training
on this, but they may be. Commissioner Hlavachick stated that this could be another
topic for our joint meeting.
Mr. Howard commented
that one of the things
that was going to be talked about was the issues with drugs and law enforcement issues. Mr. Howard added that he had been told that Pratt
County was failing
in the court system.
Ms. Garten
commented that the health insurance payments from retired employees
goes into the Employee Benefits fund.
Ms. Garten stated that the alcohol tax
was split in thirds between the special parks fund, the general fund and special alcohol fund. Ms. Garten added that this had to go to a program
for chemical dependency.
Ms. Garten stated that the water debt service would be paid off in 2016 and the revenue from the Ethanol Plant paid that debt. Ms. Garten
continued by pointing
out that the electric utility
bond would be paid off in
2018. Mr. Howard commented that the next big project
for electrical would be to develop the secondary
tie. Mr. Howard explained that Sunflower had bought the 115 line from Ninnescah
and we had talked to them
about our secondary
line when they get their plans figured out.
Ms.
Garten stated that the rate increases were in the electric fund and 2016 would be the second
year for that. Ms. Garten commented
that there were not many changes, but there was the reduction
in salaries that was discussed earlier.
Mr. Howard stated
that they were all done with the major improvements at the power plant. Mr. Howard commented that they had tried to get KMEA to purchase
the firm energy that was being
purchased by Jeffries, which would restructure the Jeffries contract. Mr. Howard explained that the price of
electricity was higher
than market, but ·staying
firm and .we wanted to get a cap on the fuel adjustment. Mr. Howard stated that the savings would be substantial if we could make a deal.
Ms. Garten stated that sanitation was similar to what it had been. Commissioner Taylor questioned the raised transfers. Ms. Garten explained that they were in need of another
packer. Ms. Garten added that they did not have enough reserves for the last packer,
so they were catching up. Commissioner Meyer questioned a City wide pick-up and budgeting something
for the landfill
fees. Commissioner Taylor commented that the County
used to waive those fees. Mr. Howard stated that we could do it if it was controlled, but the earlier
ones went from lasting a week to lasting
months. After discussion
on setting big dumpsters out and letting customers bring
stuff to them, the Commission
decided to wait to make any
decision.
Ms. Garten
stated that there was not much difference in the wastewater fund and that it
would be the third year of the rate increase.
Ms. Garten pointed
out that it was the second year for the water
rate increase and there were still some cash issues
in the water fund. Ms. Garten commented that there were meters that needed replaced and mains that needed
work, but water usage had been down due to the weather.
Ms. Garten explained
that there was the loan that was being paid for by the Ethanol
Plant and the other one that pays off
in 2017. Mayor Kumberg
asked about the percentage of water loss.
Mr. Howard stated that we were
working on a Conservation Plan,
but we could account for about
90% of our water. Mr. Howard
commented
that
meters fail on the upper
side and the water department had a replacement schedule in place.
Ms. Garten pointed
out the budget summary that would
be published with the August 17th date for the public
hearing. Ms. Garten added that the mill was a tad bit lower than last year.
·
Revitalization:
Commissioner Taylor commented that the rebate was at $4.6 million and someday some of those would be going off.
Ms. Garten stated that it regenerates itself, though it was down a little bit.
Capital Equipment Reserves:
Ms. Garten
stated that most of this equipment would come before
the Commission, but not all would be purchased just because it was in the budget. Ms. Garten commented that a few requests were deferred due to cash, such as the water trailer
that was being postponed until next year and repainting the water tower would be put off until sometime
in the future. Commissioner Skaggs questioned the purchase of an arrow board. Mr. Howard stated that that was a lane closure
board. Mr. Howard commented that vehicle purchases
this year would not happen
until later in the year and they would do the same next year. Mr. Howard stated that we did not have to buy vehicles if the economy keeps going down.
·
Long term debt:
Commissioner Hlavachick questioned if we were going to discuss
the Lemon Park proposal later. Ms. Garten stated that we were. Commissioner Meyer stated that we should be looking
better in three years. Ms. Garten agreed,
but she added that was as long as we did not have any new bonds.
Mr. Howard stated that they would do a bond for the secondary tie, but not until this one was paid off. Mr. Howard commented that we would be $8 million in debt
at the
end of this year, which also had the forgiveness of the wastewater project.
Review Cash:
Ms. Garten stated that the cash balance charts
show us at $72 million
at the end of 2014 and $6 million in 2015. Commissioner Hlavachick asked what our cash balance
should be. Ms. Garten stated that the auditors
thought we were in a good position.
Commissioner Meyer questioned if we had any trouble making payroll. Ms. Garten
stated that we were not but, with less, you had to watch things
more. Mr. 'Howard commented that there were no big projects once the downtown
project was done, with the exception of the Municipal
Building.
Discussion Topics:
·
Economy:
Ms. Garten stated that the sales tax report showed that we were down for the third month in a row. Mayor
Kumberg questioned if the Hampton should have helped. Mr. Howard stated that they bought most of their materials out of town; whereas, the Best Western
bought from Home Lumber.
Commissioner Meyer asked
if the Parrish was sales tax exempt. Mr. Howard
stated that they had not purchased local either, so the trend was down for three months. Mr. Howard questioned if we had peaked for the next five years or if this was just a little blip. Ms. Garten stated that
the economy was not in bad shape, but in a downward
trend. Mayor Kumberg questioned if the downturn
in transient guest tax was from the decrease in oil and gas. Commissioner Taylor commented that if people were paying
guest tax they were also paying sales tax, so he was not that worried about the sales tax. Ms. Garten stated that the housing market
was a little weaker, but still fairly
strong, which showed
with the Sandy Creek lots selling pretty
slowly. Mr. Howard added
that there had been interest in them quite often. Commissioner Meyer stated that he was surprised that someone had not wanted
to build out there. Commissioner Hlavachick commented that he had talked to Mr. Rich Sanders and he thought
that the housing market was just fine. Ms. Garten stated
that the population had not dropped off and the unemployment for Pratt County was at 4.3%.
·
Guest Tax:
Ms. Garten stated that guest tax was down $68,000 from last year. Mayor Kumberg
stated that he wanted
to discuss the upcoming expenses
for the Pilot Club train,
which was the largest line item from last year. Ms. Garten reminded the Commission that that
was for the rebuilding of the track.
Mayor Kumberg commented
that he had a problem
with taking on all the problems. Mr. Howard explained
that Mr. Duane DeWeese had been doing
all their repairs, but when he got injured they started coming back to us. Commissioner Meyer questioned when we reach a point of no return and what would be
politically correct. Ms. Garten commented
that the thought process was that we purchased it and we should fix it. Mr. Howard stated that
there should only be nickel and dime fixes unless
the engine blows up. Mayor Kumberg questioned if this was something
that we needed
to have a difficult discussion with them about.
Mayor Kumberg added that we should not put up any more money if the engine blows up. City Attorney
Van Blaricum stated we should have a conversation with them. Mayor Kumberg
commented that he got
that we offered this as a public
entertainment option, but there was nobody else contributing to the upkeep and we get no revenue from it.
Ms. Garten stated that Convention and Tourism had a revenue
of $390,000 as an average
over five years
and $200,000 of that money goes to the Chamber. Ms. Garten pointed out that the budget showed $60,000 to
$70,000 grants to people and events with $50,000 in advertising, $20,000
to recreation, $100,000
for local things and that made up the $400,000
in this fund. Ms. Garten stated that the streetscape was paid for, but there were other local
projects such as Lemon Park,
the pool and the Municipal Building. Ms. Garten commented that most of the money
that had come in had been spoken
for and there was more demand
on that. Ms. Garten stated
that the board makes recommendations to the City on whether some events should be funded,
but there were repeat events
that were gradually
asking for more money each year. Ms. Garten stated that the Blythe, Art Museum and the college
were needing to be discussed. Ms. Garten pointed
out that contingency money was already at $50,000 in 2015.
Ms. Garten commented that she felt that
the Tourism board would be relieved if they did not have to make the decisions for some events.
Mr. Howard stated that Mr. Loomis had stated that they were coming in every meeting
for the Blythe and it was cumbersome. Mr. Howard added that the museum
was fitting into this scenario also.
Mr. Howard suggested that we give them $1,000 a month and be done with it and not
come in with other requests.
Mayor Kumberg questioned if we could
have stipulations that
we wanted to have an economic impact
report at the end of the year. Mayor Kumberg
stated that he had no problem
doing that if it would take pressure off of the board. Ms. Garten stated that a stipulation could be that they had to do a minimum
of so many events a year and we
would give them 'x' amount of money.
Commissioner Skaggs questioned accountability for other organizations. Ms. Garten suggested
that invoices be requested if we fund a promotion.
Mr. Howard commented that he would cap it at $10,000
a year and have them justify where it goes. Mayor Kumberg
stated that they should have
to be accountable, but we should also
look at the benefit that it brings. Commissioner Hlavachick stated that it should be capped at $1,200 per month. Commissioner Hlavachick commented that the County
did a $20,000 a year on
a three year contract.
Ms.
Garten stated that there had already been requests
for bed tax money from the Lemon Park renovation project and the streetscape. Ms. Garten reminded
the Commission that pool repairs
were also needed.
Ms. Garten added that the Municipal Building
and Recreation were something else that
needed some of the guest tax monies. Ms. Garten stated that we needed to look at putting a cap on funding using the guest tax or figuring out where it needed to be allocated. Mayor Kumberg questioned how we felt about mini-grants. Ms. Garten stated
that she was in favor of promoting it, but some think that money should
be used for bigger things. Ms. Garten explained that groups had been coming to
Travel and Tourism because it was easier. Commissioner Skaggs stated that we had donated to the gun show
and wondered if we should
be promoting that. Ms. Garten
stated that Red Cross started
that about three years ago. Ms. Garten
commented that we should look at whether
the event gets them to spend the night and if they eat here. Mr. Howard stated that the gun shows
were a big draw and the vendors did stay all night the last four years.
Mr. Howard suggested that anything ·over $20,000 should have to make an agreement. Mr. Howard stated that
it would help
Miss Kansas and the Blythe
with their budget
if they had a set
amount. Mr. Howard added that
the board does a good job with the smaller
stuff. Commissioner Skaggs
asked about the museum having a contractual agreement. Mr. Howard stated that they had asked for $5,000 earlier
and there was another $5,000 request that had not been approved yet. Ms. Garten
commented that there was a copy of the photo gallery's request for $6,500 on
top of the previous $5,000
we had already given them, plus we were legacy members and that had cost $2,500.
Commissioner Taylor commented that he thought that Filley's left a larger sum of money.
Commissioner Skaggs asked if we were going to have a contractual agreement for anything over $10,000. Mayor Kumberg stated that he
thought there should be
a stipulation that they come to give a report on the economics yearly.
Mayor Kumberg added
that we can justify this if we had to. Mr. Howard
stated that the museum did not need the money, but it was a case of why not come to
the City and get them to fund it. Mayor
Kumberg commented that the museum was using
the funds for advertising. Commissioner Taylor stated that their advertising was coming from out of town. Mayor
Taylor stated that he did not want to do the one for the art museum.
Mr. Howard stated that we could fund them per year. Commissioner Taylor stated that he thought
that the $2,500
for the membership and another $2,500
was sufficient. Commissioner Taylor added that they were paying two full time salaries and they were not bringing that much to the community. Mr. Howard
commented that he was .not saying to not fund the museum, but decide on an amount
for the year and they could come in and request more if they wanted. Mayor
Kumberg stated that he thought that $5,000 was a good amount. Commissioner Taylor asked if we
were going to have Miss Kansas come to us. Mr. Howard stated that the bigger ones like Miss Kansas, Blythe, Filley Museum and the rodeo could be approved by the Commission and they should
let us know what they were going to do for the year. Mr. Van Blaricum suggested
that we ask Mr. Stan Reimer to come here
to visit about that. Mr. Van Blaricum
stated that they had
the means fifteen years ago, but he did not think
they had the means now. Mayor Kumberg commented that we had funded the advertising for the first exhibit and that fueled
their sales. Ms. Garten stated
that they had the budget
to cover this, but they wanted assistance. Mayor Kumberg stated that
showers, Rotary and other events used their facilities
and were paying to be there.
Mr. Howard
explained that there were not these types of requests
or repeated requests
when tourism started, but things had changed
and this needed
to be revisited. Mr. Howard stated that the
Blythe was at $10,000 and, if the last request
was approved, the museum would
be over $10,000. Mr. Howard added that he thought that the Commission should be aware
of where Tourism money was going and who
was getting it. Commissioner Hlavachick commented that he would agree to $7,500 for the museum.
Commissioner Taylor stated that he would not agree to the $7,500.
Mr. Howard commented
that all five Commissioners needed to know what was happening and also that it would only get worse. Commissioner Meyer commented that what you could buy for $5,000
ten years ago cost you $10,000 now. Commissioner Meyer strongly encouraged the use of local
businesses. Mayor Kumberg agreed that the first
consideration should be local businesses.
Commissioner Taylor made a motion to approve
$1,200 a month for Blythe Family Fitness Center and to review it
twice a year. Commissioner Hlavachick made the second and it passed unanimously.
Ms. Garten pointed
out that Miss Kansas
was given $7,500 yearly, but had received
more this year because of the Texas Tenor concert. Commissioner Skaggs made a motion to give
the Miss Kansas organization $7,000 for the calendar
year 2016. Commissioner Taylor seconded the motion and it passed
unanimously. Commissioner Hlavachick made a motion to give the art museum $7,000
for the 2016 budget year. Commissioner Meyer questioned how he had come up with $7,000. Commissioner Skaggs seconded the motion. Commissioner Skaggs
asked if that included the $2,500 legacy fee. Commissioner Hlavachick stated that that was annual for operating expenses.
Commissioner Taylor stated
$5,000 total. Commissioner Taylor added that he did not want them
taking $7,000 and making $12,500
and then getting things done out of town. Commissioner Meyer stated that Miss Kansas gives us far more return on our investment than the Art Museum. Commissioner Taylor stated that that would be $9,500 with the legacy fee included. Mr. Van
Blaricum stated that sports and Miss Kansas brings in a big return on our investment, but the arts class up Pratt. Mr. Howard commented
that it does not draw people to the community. Commissioner Meyer questioned if withholding $2,000 or $3,000 would
be a
deal breaker for them. A roll call vote was taken on the motion on the floor to give the
Art Museum $7,000 for the 2016 budget year. Commissioner Taylor-no; Commissioner Skaggs-yes; Mayor Kumberg-no; Commissioner Hlavachick-yes; Commissioner Meyer-no.
Motion failed by a two to three
vote.
Commissioner Taylor suggested that the
Art Museum get $3,000 from Tourism and the $2,500
for the legacy membership fee. Mr. Howard
commented that Tourism was
about supporting them because
they were supporting the town.
Commissioner Meyer stated that he thought they were going
to grow, but he was not
sure about the tourism
part. Commissioner Taylor stated that he was happy to support events where people stay the night. Mr. Van Blaricum
commented that the arts were not a big part of tourism,
so maybe there could be another line item that PCC Theater
and the Filley Art Museum would fit into. Mr. Howard explained
that Miss Kansas was tourism,
but tourism should
be refunding itself. Mr. Howard stated that he
was not sure if the museum was doing that or not. Commissioner Taylor
made a motion to give $3,000 a year to the Filley
Art Museum through
tourism not including the $2,500 legacy
membership and to have
annual updates of their economic
impact. Commissioner Skaggs seconded the motion. The motion and second passed
with four approved
votes and one no vote by Commissioner Hlavachick. Mr. Howard stated that the rodeo was worth the $10,000, but it would be brought to the Commission if they decide
to do it again. Commissioner Taylor commented that the $3,000 to the Medicine
Lodge Peace Treaty was helping
someone outside the City, but they fill our motels.
Mr. Howard stated that Mayor
Kumberg and Commissioner Hlavachick were on the Lemon Park committee
and their idea was to scale down and do the bathrooms
as a #1 priority. Mr. Howard commented that the B-29 group had received an $86,000 grant and
they were going to build a bathroom
near the memorial.
Mr. Howard stated
that it was a 20% match and we could do that by waiving
tap fees, etc. Mr. Howard explained
that we could get an idea of what it might cost and if it would be classy enough for the park. Mr. Howard pointed out that the parking lot entry would not be there anymore
and also pointed
out the dog park area. Mayor Kumberg
stated that the llama area was too big for the dog park and he also mentioned that there would be another
bathroom by the diamonds'. Mayor Kumberg
added that Mr. Blake Himmelwright had talked about some trees that needed to be taken out also. Commissioner Skaggs
questioned any new shelter structures. Commissioner Hlavachick stated
that it was in the discussion stages.
Mr. Howard stated that the first phase was more realistic. Commissioner Meyer questioned if there was a high priority to change the road. Mr. Howard stated that Mr. Himmelwright was going to get cost estimates and then there would be a public meeting so that the people could have their
say. Commissioner Meyer questioned how much moving the parking
lots and the bathrooms would cost. Mr. Howard stated that, without paving
the roads and the bathroom, would be between $50,000 and $70,000. Mr. Howard added that, we did not know the sewer costs,
but there would have to be a lift
station. Mr. Howard stated that it could be a bond issue if we were forced to take it to a vote. Mayor Hlavachick
commented that a million dollar bond would get it done right away and Mr. Himmelwright had stated that he could come up with $30,000 to $50,000. Commissioner Meyer stated that he would wait to get the current bonds paid off if Mr. Himmelwright was going to use his own money. Mr. Howard commented
that we would wait to get the estimates.
Commissioner Taylor
commented that he would like to see $1 million
coming from private
donations for the $2.1 million
pavilion. Mayor
Kumberg stated that he did not feel that was out of line. Commissioner Hlavachick commented that a million
would get done what
we wanted to get done. Commissioner Skaggs questioned if a $1 million bond would pass if we put it out
there. Commissioner Hlavachick questioned why we would have to. Mr. Howard stated that Sixth Street could be a part of this, but not in the first phase. Commissioner Hlavachick questioned what it took to do a GEO bond. Ms. Garten stated that it had to be published, but there was a new kind of bond issue that did not require
a vote. Commissioner Taylor stated that we should get some of the funds around and not get the $1 million
in our heads. Mr. Howard commented that it would go to the vote of the people if we were going
to do something big. Mayor Kumberg commented that they were trying to get the biggest bang for
the buck. Commissioner Meyer asked what the life expectancy for a prefabbed
bathroom would be. Mr. Howard
stated that he was not sure, but he
would get some information. Mr. Howard added that the B-29 group was going through a company out of Texas and we would need to know what size we wanted. Mr. Howard stated that he would get with Mr. Himmelwright to let him know that he needs to get estimates. Mr. Howard added that we could work on this as a work session or put it on an agenda
and then have a public
meeting outside of a Commission meeting.
Ms. Garten stated that there were other issues to discuss such as the future plans for the pool, the Municipal Building renovation and the Green Sports Complex. Commissioner Taylor suggested
that we set back
$250,000 to $300,000
for the pool and
the Municipal Building. Ms. Garten stated that we could dedicate payments for debt services. Mr. Howard commented
that we would start working on the design for the Municipal Building
in earnest this winter
after we finish this year's projects. Mr. Howard stated that there was an architect in Wilson that had
been recommended. Mr. Howard explained
that we would leave the gym alone, put in air tight windows and work ·on the air conditioning. Mr. Howard commented
that the City Clerk and Inspector would be downstairs
and Public Works, Director of Electric Utilities,
Finance Director would be upstairs and the Commission room would stay where it was. Mr. Howard
stated that the Utility Billing area would be where Mr. Pinkall was now and it would be a secured area. Mr. Howard commented that he would like to start
renovating by late 2016 or early 2017. Commissioner Skaggs asked if there were any thoughts for this
building. Mr. Howard stated that the police department always thought
about moving here, but he was not sure. Commissioner Skaggs suggested moving the recreation offices down here. Mr. Howard stated that the architect would tweak our design and we would get costs to figure out funding options. Mr. Howard commented
that lodging tax should go to the pool and pool house. Ms. Garten stated that there were some funds in capital
reserves for that.
Commissioner Hlavachick asked about any plans for the Green
Sports Complex. Ms. Garten stated
that there was room for expansion since we had the land to the east. Mr. Howard stated
that a track had been discussed or putting in some kind of slide so that families could have something
to do during or in between games. Mr. Howard added that
the Complex was only used a lot about two or two and a half months of the year. Ms. Garten commented
that there were parking issues during
big tournaments. Mr. Howard commented
that we could make the northern part a temporary
parking lot. Commissioner Skaggs stated that that would be a lot of dirt to move. Mr. Howard
stated that it would not be perfect,
but could be used for buses. Commissioner Hlavachick commented that there were some coaches
that had said that the baseball infield
needed work. Mr. Howard commented that Mr. Pinkall
had been down there working yesterday and he had talked about wanting to
put artificial turf down. Commissioner Hlavachick stated that grass does slow the ball down.
·
Airport Authority’s request for 4 mills:
Ms. Garten
stated that there
was some information from the Airport
Authority that had been sent by Mr. Bell. Mayor Kumberg questioned
that we could approve three mill and they levy one.
Ms. Garten explained that the first one was theirs,
we levy two and they were now asking for the third. Commissioner Meyer stated that they were about $20,000 short in their financials. Mayor Kumberg asked the dollar amount that they would be getting from 3 mill. Ms. Garten stated that it was $38,000
per mill. Commissioner Skaggs commented that we needed to think about whether
or not they were that valuable
to the community. Commissioner Skaggs added that they had developed
forty tenants slowly over the past years.
Mayor Kumberg stated that they had
a million in the bank and they wanted to get 3% pay increases and bank the rest. Commissioner Skaggs commented that it was a fund for unforeseen things. Mayor Kumberg
questioned what the justification was to levy an additional
mill. Mayor
Kumberg stated that all he saw
was the 3% increase.
Commissioner Meyer stated that he could not see why they needed it and questioned if they had ever asked for it before. Ms.
Garten stated that they had not since she had been here.
Mayor Kumberg stated that they could cut expenses or give the Commission justification. Commissioner Meyer stated that they would have a $30,000
profit with the pay increase
if we give them the additional mill. Commissioner Skaggs commented
that we would not want to deny them the mill increase
if they had a project coming up, but they had not told us that.
Ms. Garten stated that the minutes
reflected that Mr. Bell had talked about the downturn
in the oilfield. Commissioner Meyer asked what the downturn
would be if we denied
the increase. Ms.
Garten commented that there would be no pay increases. Mayor Kumberg suggested tabling this until Mr. Bell could come and justify
why they needed
the extra mill. Mr. Howard called Mr. Bell and he would be coming to the meeting at 8:30 a.m. in the morning.
Ms. Garten stated
that the B-29 group had applied for a trails grant. Mr. Howard commented that they had gotten a grant to do a sidewalk
from the memorial
to the museum, but they were going to focus on a bathroom west of the memorial.
Mr. Howard added
that they thought
they had to use the money by the 16th
August, but that was not right. Mr. Howard commented
that Mr. George Stevens was getting estimates on the bathroom and we would do
$20,000 plus in-kind services such as waive water and sewer tap fees. Mr. Howard added that he would find out if the B-29 group had money for the
project and then be reimbursed or if they plan for the city to finance with our
money.
·
Employee benefits:
Mr. Howard stated that he had asked the rep to look at $25,000
life insurance policies
for every employee and also look at raising supervisor's life insurance anywhere
from $50,000 to $100,000. Mr. Howard added that that would be at a cost of about $20,000 a year. Mr. Howard stated that we had picked up the 3% increase in insurance for supervisors. Mr. Howard commented that another option
would be to add another paid holiday to our list such as Presidents Day or Veterans
Day. Mr. Howard added that these were just ideas if the Commission would rather not do the 3% cost of living, which was not added to the budget. Commissioner Taylor
commented that we had the traditional holidays
already. Ms. Garten
commented that it had been mentioned about Veterans Day since the County was closed. Mr. Howard added that this might also cushion
not getting a raise. Commissioner Skaggs
stated that the pay raise would not have to be 3%. Commissioner Meyer asked
Mr. Howard what he would
recommend. Mr. Howard stated that that was one of the decisions they had to make. Ms. Garten stated
that it would
cost about $20,000
for the life insurance and $184,000
for a 3% cost of living raise, plus we were already
picking up the 3% health
insurance increase of about $25,200. Commissioner Skaggs questioned if our salaries
were competitive. Mr. Howard stated that we were now. Commissioner Meyer asked about what the lowest pay was for an employee
starting with us. Ms. Garten stated that it could be from $11.74 to $12.04 per hour. Mr. Howard stated that we did not always hire at the lowest. Commissioner Taylor suggested they think about it and talk more tomorrow.
·
Street projects:
Ms. Garten reviewed the current and anticipated street projects. Ms. Garten informed the Commission that Fincham Street should be getting started in the near future and
our responsibility for that project was $193,000. Ms. Garten commented that $137,400 was the matching
funds we had for the 2015 KLINK project from Mound Street east to Jackson Street
and the 2016 GEO project
on North Main Street from Blaine Street north to the railroad
tracks that could get started
this year at a cost of a little over $338,000. Ms. Garten added that there was a 2016 KLINK project for Highway 281 from Santa Fe Road south to the City limits at a local matching cost of around
$53,599 as well as a 2017 GEO project from Jackson Street to K-61 Highway on Highway 54 that was estimated to cost around
$291,000. Ms. Garten
stated that the 2018 GEO project was from Mound Street west to New Street with a local match of about $83,136.
Ms. Garten commented that the sidewalk
project was ongoing
and a general improvement project
throughout the City. Commissioner Taylor
commented that the curbs were gone by Lanterman Motors. Mr. Howard
stated that we could do the curb and not the road. Mr. Howard added that the big sidewalk plan was to go to Wal-Mart. Commissioner Skaggs questioned if Lanterman's was parking on the right of-way.
Mr. Howard stated that some were on the State's right-of-way.
·
Comprehensive
Plan:
Ms. Garten
stated that most of the projects in the 2002 updated Comprehensive Plan had been completed. Mayor Kumberg questioned if it was community directed
or things that we need to work on and what the cost might be. Mr. Howard stated that
EBH had done the last one and that was before he came. Mr. Howard commented that the Planning
and Zoning Board had started to work on it. Mayor Kumberg
commented that we had done our purpose for this plan. Mr. Howard stated that he would ask Mr. Luttrell to get an estimate to do it. Commissioner Taylor
stated that it was good to have.
Mr. Howard added that the public was not
involved until it happens, but the issue was that there was a plan.
·
Other information:
Ms. Garten pointed out the information used to 'put together
the budget and the letter from the Fire
Chief concerning their future needs. Ms. Garten also discussed the samples of resolutions for transfers to the operation accounts.
Mr. Howard stated that sales tax tells how a business
is doing and we are not doing
as well as last year, but he was not concerned.
Mr. Howard commented
that Mr. Bill Young was a
pretty good indicator of how things were going and we could be overly cautious. Mayor Kumberg asked if the Parrish
Lofts paid sales tax. Mr.
Howard stated that they did not. Commissioner Skaggs asked if there was going to be a planter
there and no landscaping. Mr. Howard stated that there might be some in the parking
lot. Commissioner Skaggs asked if the downtown park had stalled.
Mr. Howard stated
that they had put that off until the Parrish was
done. Commissioner Skaggs questioned who would spearhead
that project since the original group was gone. Mr. Howard stated that· Ms. Carol Stull .was still involved. Mr. Howard added that he would like to see them limit the use of the bricks and use pavers to make it look better.
Commissioner Meyer asked if they were adding any trees.
Mr. Howard commented that he had seen some in the old drawing.
Commissioner Meyer commented that he saw where T & W Meats was coming to Pratt. Mr. Howard stated that they were. Commissioner Meyer asked if anything was happening with the old Alco building.
Mr. Howard stated
that he had not heard from him.
Ms. Garten
stated that the tax lid for government entities could not increase taxes unless by public vote and that takes
effect in 2018. Ms. Garten added that that also effects being able to raise the
mill levy only by public vote.
RECESS:
The recessed
budget work session
recessed until 8:30 a.m. Thursday
morning. The motion
by Commissioner Meyer
and second by Commissioner Skaggs
passed unanimously.
_____________________________
LUCUS KUMBERG, Mayor
ATTEST:
_______________________________
LUANN KRAMER, City Clerk