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 Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Thursday, April 9, 2020 6:00 PM Assembly Chambers WORK SESSION 5:00 P.M. 20-080 Options to reduce economic impacts on citizens/businesses related to the COVID-19 pandemic Assembly members discussed ways to reduce economic impacts to citizens and businesses due to the COVID-19 pandemic. SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Members participated by video conference. Knox joined at 7:25 p.m. Telephonic: 7 - Christianson, Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson IV. CORRESPONDENCE/AGENDA CHANGES No agenda changes. V. PERSONS TO BE HEARD None. VI. NEW BUSINESS: A 20-077 Discussion / Direction / Decision of the FY2021 Draft Administrator's Budget with focus on the General Fund and Special Revenue Funds CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final April 9, 2020 Controller Melissa Haley stated the focus was on the General Fund and Special Revenue Funds. She noted revisions to the General Fund from external changes specifically from the COVID-19 pandemic, final rate proposal for health insurance (an increase of 5.5%), a decrease in sales tax revenue estimates, and state budget cuts. She went over expense reductions: capital projects, health insurance, operating expense, and a smaller transfer due to a decrease in sales tax revenue to the School Bond Debt Service Fund. Haley went over cut to operations that was directed by the Assembly which totaled $764,344. Public Works Director Michael Harmon gave options and details to the revised budget of no new capital. Assembly members requested more information and analysis with options and details of the Knutson Drive LID. A motion was made by Eisenbeisz to remove the $14,000 personnel cut in the library budget (in effect this would keep the Library open on Sundays). The motion PASSED by the following vote. Yes - 5 - Christianson, Eisenbeisz, Wein, Paxton, and Mosher No - 1 - Nelson Absent - 1 - Knox Haley gave details of the purpose, fund balance, and expected revenue for FY2021 for other governmental funds: trust, agency, special revenue funds including the Permanent Fund, Debt Service Fund of School Bonds, Pet Adoption Fund, Utility Subsidization Fund, Sitka Asset Forfeiture Fund, Justice Assistance Fund, Library Building Fund, Southeast Alaska Economic Development Fund, GPIP Contingency Fund, Sitka Community Hospital Dedicated Fund (formerly Tobacco Excise Tax Fund), Student Activities Travel Fund, Fisheries Enhancement Fund, Commercial Passenger Vessel Excise Tax (CPET) Fund, Visitor Enhancement Fund, Revolving Fund, Guarantee Fund, Library Endowment Fund, Bulk Water Fund. She noted that the budget ordinances would come forward for first reading at the regular Assembly meeting on April 28. Assembly members stated they would like to revisit the Utility Subsidization Fund. B 20-078 Appoint Assembly Member Wein as an Assembly Liaison to the Sitka Emergency Operations Center Municipal Administrator John Leach stated he had invited Wein to Unified Command meetings and the Emergency Operations Center (EOC) which he found to be of help and value. He felt it appropriate for relaying information back to the Assembly. Knox was in support and stated it would be helpful in communicating a clear message to constituents. Christianson agreed; he volunteered as the Logistics Chief for the EOC and said it would be helpful to have an Assembly member present in that Assembly member role. A motion was made by Mosher to appoint Assembly Member Wein as an Assembly Liaison to the Sitka Emergency Operations Center. The motion PASSED by the following vote. Yes: 7- Christianson, Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson C 20-079 Discussion / Direction on options available to reduce the economic impacts on citizens/businesses related to the COVID-19 pandemic CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final April 9, 2020 Public Comment Mike Finn requested the city remove water, sewer, and garbage charges from utility bills for Sitka businesses that are required to close. He stated that the grant funding for COVID-19 was mostly allowed to be used for payroll. He noted that businesses were already losing profits and would struggle to get through the winter months with minimal or no summer season. Municipal Attorney Brian Hanson stated he would research if delaying the property tax appeal deadline would need an ordinance. Nelson requested an ordinance for first reading be put on the agenda for the meeting on April 14. A motion was made by Nelson to delay the property tax appeal deadline from April 15 to June 15. The motion PASSED by the following vote. Yes - 7 Christianson, Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Eisenbeisz and Nelson disclosed they file sales tax. Mayor Paxton ruled no conflict. Municipal Administrator John Leach stated the delay in revenue would affect the General Fund. Nelson stated her concerns for small businesses in Sitka and if they were unable to open. She felt that there would be a delay but it would not affect the budget as it would be in the same fiscal year. Chief Finance and Administrative Officer Jay Sweeney spoke to the revenue stating that for every day that sales tax was not remitted to the municipality, interest was lost on the balance of the investments of the central treasury. He also noted that by delaying the reporting, an estimate of the effect from the economic slow down the Assembly previously requested would not be possible. Wein stated the sales tax money collected was from consumers and in essence by delaying it by two months, represented a loan that could be minimal. He felt this was a way to ease the loss for businesses. A motion was made by Nelson to push the filing due date back for first quarter sales tax by two months to the end of June and waive fees and late payments. The motion PASSED by the following vote. Yes - 5 Christianson, Knox, Wein, Paxton, and Nelson No - 2 Eisenbeisz, and Mosher Nelson wondered if there were economic development funds available for Sitka businesses that may be failing to assist with reopening. Christianson would like to look into a Sitka version of the CARE Act. Mosher brought up the idea of a sales tax free weekend each month. VII. PERSONS TO BE HEARD: Jay Sweeney informed that he would research items that were discussed. He told of a reporting deadline for sales tax that was in the Sitka General Code, therefore an ordinance would be necessary to delay that deadline. VIII. EXECUTIVE SESSION None. CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final April 9, 2020 IX. ADJOURNMENT A motion was made by Christianson to ADJOURN. Hearing no objection, the meeting ADJOURNED at 7:48 p.m. ATTEST: ____________________________ Melissa Henshaw, CMC Deputy Clerk CITY AND BOROUGH OF SITKA Page 4