City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 330 Harbor Drive Sitka, AK (907)747-1811 Minutes - Final City and Borough Assembly Mayor Gary Paxton Deputy Mayor Steven Eisenbeisz, Vice Deputy Mayor Kevin Mosher, Kevin Knox, Dr. Richard Wein, Valorie Nelson, Thor Christianson Interim Municipal Administrator: Hugh Bevan Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Thursday, December 19, 2019 6:00 PM Assembly Chambers SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - Christianson, Eisenbeisz, Knox, Wein, Paxton, and Mosher Absent: 1 - Nelson IV. PERSONS TO BE HEARD None. V. NEW BUSINESS: A 19-266 Review of the FY20 Municipal Budget and Discussion / Direction / Decision on parameters for the FY21 Municipal Budget Interim Municipal Administrator Hugh Bevan reviewed the FY21 budget meeting schedule and stated the goal for this meeting was to review the FY20 budget, become familiar with structure and terminology, and receive feedback from the Assembly on key points for FY21. Controller Melissa Haley began by providing an overview of the FY20 General Fund budget as adopted highlighting General Fund services, subsidization to other funds, support to the School District and repair of infrastructure (capital projects). She spoke of significant anticipated variances (no loss of raw fish tax, first quarter sales tax revenue had exceeded the budget, and personnel expenses were on track with only 78% of the budget expended) and noted the unknowns were: the PILT amount, when vacant positions would be filled, and the impact of online remittances for October to December. Haley listed top revenue sources for the City of sales tax (45% of total CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final December 19, 2019 revenue) and property tax (23%). An analysis of school funding was provided. Members gave direction to fund to the cap as defined by the State. Haley provided a summary on General Fund debt; it was requested detailed information be provided at a future budget meeting. Haley reviewed the FY20 General Fund staffing levels and vacancies. Some members wished to discuss adding back in the Community Affairs Director position to the FY21 budget while others did not. FY20 donations were reviewed: non-profit grants, Sitka Historical Society, SEDA, SAFV, and the Ride. Lastly, Haley reviewed the Enterprise Funds, challenges associated with each, and proposed rate increases. The following direction was given for development of the FY21 budget: * Assume State revenue sharing will be the same as previous year * Assume Federal PILT revenue will be $600,000 * Assume State fish tax revenue will be $900,000 * Assume Federal Secure Rural Schools revenue will be $500,000 * Assume State contribution to school bond debt repayment will be the same as previous year * Include the Community Affairs Director position in the FY21 budget for discussion and modify the job description to include grant writing * Assume status quo for City staff levels * Assume a 2% increase in water rates * Assume a 2% increase in sewer rates * Assume a 5.5% increase in solid waste rates * Assume a 3% increase in harbor rates * Assume school funding will be to the cap as defined by the State with the out-of-cap funding the same as previous year VI. PERSONS TO BE HEARD: George Paul spoke to the Assembly about various issues. He stated he disagreed with the recent resolution passed regarding the Roadless Rule, hoped the Congressional Delegation stood firm in reopening the Tongass, and stressed a need for industry in Sitka. Paul expressed concern with the increased cost of living in Sitka and noted his family was trying to determine whether to stay in Sitka. VII. EXECUTIVE SESSION None. VIII. ADJOURNMENT A motion was made by Christianson to ADJOURN. Hearing no objections, the meeting ADJOURNED at 8:28 p.m. ATTEST: _______________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 2