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 Steven Eisenbeisz Deputy Mayor Thor Christianson, Vice Deputy Mayor Valorie Nelson, Kevin Knox, Kevin Mosher, Crystal Duncan, Rebecca Himschoot Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Thursday, January 21, 2021 6:00 PM Assembly Chambers SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Nelson attended by videoconference. Knox arrived at 6:15pm. Present: 7 - Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan IV. CORRESPONDENCE/AGENDA CHANGES None. V. PERSONS TO BE HEARD Richard Wein told of the website covidbailouttracker.com and hoped Sitka would publish something similar, noted the World Health Organization had reported high cycle PCR tests could produce false positive tests, and reminded of a hospital price transparency rule. VI. NEW BUSINESS: A 21-011 Discussion / Direction / Decision on filling the Community and Government Affairs position and ongoing lobbying efforts Municipal Administrator John Leach shared he had received questions with regards to funding for this position and requested the Assembly provide guidance on their desire for him to fill the position or wait until the new fiscal year. Leach reminded the position was currently budgeted in FY21 and stated the duties of the position were public relations, lobbying, and grant writing. Nelson spoke in opposition noting the financial CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final January 21, 2021 ramifications of the pandemic weren't fully known and she couldn't support the FTE position. Other members spoke in support of filling the position in FY21 and including it in the FY22 budget. With regards to professional lobbying services, consensus of the Assembly was to include funding in FY22. B 21-012 Discussion / Direction / Decision for the FY2022 Municipal Budget with focus on the General Fund Finance Director Melissa Haley noted the purpose of the meeting was to have a preliminary budget discussion on the General Fund and told of the budget meeting timeline. She noted the goal was to present a draft budget that reflected the overall direction of the Assembly and spoke to key challenges and areas in which guidance was needed. Haley relayed in the preliminary budget, services remained status quo, reviewed overall revenue trends from FY19, FY20, projected FY21, and preliminary FY22 (fairly conservative), and explained sales tax revenue projections included in the FY22 budget. She summarized the initial revenue projection was $26.8 million, expenses $28.3 million, leaving a deficit of -$1.5 million. Haley told of options to manage the deficit: use the projected $1.5M surplus in FY21 to make up for the deficit, identify cuts to existing services, or identify additional sources of revenue. Municipal Administrator John Leach explained the surplus was a result in cuts to capital, organizational efficiencies, and the opportunity to use CARES Act funding for public safety and emergency response. Haley reviewed previous and current fiscal year expenditures and reviewed areas of expense. Haley named specific decision points for the FY22 budget. These were previously unspent or unbudgeted personnel expense needed to maintain adequate levels of service. These positions included: Community Affairs Director, Assistant Fire Chief, Procurement Specialist,and an additional Dispatcher. Based upon earlier guidance, Haley stated she would include the Community Affairs Director position in FY22. She explained the Assistant Fire Chief was the training officer and provided administrative support and continuity for the Fire Chief and other Captains. The Procurement Specialist (Finance Department) would support centralized procurement and lease management work and put more resources towards debt collection. The last position, an additional dispatcher, would help with centralizing police and fire dispatch. Members offered opinions on the position requests. Most were supportive of moving forward with the additional positions in the FY22 budget. Members wished to have for more detail on the Procurement Specialist, additional Dispatcher, and Fire Department overtime costs. Nelson was not supportive of adding positions at present time. Haley reviewed other decision points: lobbying, capital projects/public infrastructure sinking fund, school funding, and deficit budget. Members wished to leave contracted lobbying services for FY22 in the budget. Haley noted flat school funding had been included as a placeholder. She said the State cap was at $7.76M an increase of $600,000 from past years. She stated the difference between what was budgeted and the cap was $600,000. The $7.37M budget included maintenance and performing arts utility funding. She reminded of the February 4 special budget meeting with the School Board. Some members suggested bringing forward capital projects. With regards to the deficit budget, Haley clarified it was the Assembly's desire to use the prior year surplus. The budget coming forward would have a -$1.5M bottom line. In closing, Haley thanked the Assembly for their guidance, noted staff would provide requested information and continue working on finalizing the budget. She reminded if the Assembly desired to make changes after the draft budget was presented at the end of February they could do so by motion. CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final January 21, 2021 VII. PERSONS TO BE HEARD: Richard Wein spoke to Sitka's fragile economy, expressed a need to discuss Sitka's future, and commented the City budget was a paycheck to paycheck budget. VIII. EXECUTIVE SESSION None. IX. ADJOURNMENT A motion was made by Mosher to ADJOURN. Hearing no objections, the meeting ADJOURNED at 7:55pm. ATTEST: ___________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 3