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 Kevin Knox, Vice Deputy Mayor Kevin Mosher, Thor Christianson, Crystal Duncan, Rebecca Himschoot, David Miller Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Thursday, February 17, 2022 6:00 PM Assembly Chambers SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. RECITAL OF LANDS ACKNOWLEDGEMENT IV. ROLL CALL Present: 6 - Christianson, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller Absent: 1 - Knox V. CORRESPONDENCE/AGENDA CHANGES None. VI. PERSONS TO BE HEARD None. VII. NEW BUSINESS: A 22-017 Discussion / Direction / Decision of the FY2023 Municipal Budget with focus on Utility and Harbor Funds (Assembly action may be taken) Finance Director Melissa Haley said the staff was looking for direction on rates, either by formal motion or consensus so that revenue projections could be completed for each of the enterprise funds. Staff had met to analyze the past year's financial performance and presented options that would be manageable for consumers while keeping funds healthy long-term. Haley stated the inflation rate was at 7.5% CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final February 17, 2022 Haley provided an overview of the Harbor Fund noting the Fund wasn't generating enough working capital to invest in the replacement of infrastructure. She reminded the Port and Harbors Commission had recommended a 5% increase for FY21-FY23. A motion was made by Mosher to direct staff, for budget planning purposes, to move forward with option 2 for the Harbor Fund. The motion PASSED by the following vote. Yes: 4 - Eisenbeisz, Mosher, Duncan, Himschoot No: 2 - Christianson and Miller Absent: 1 - Knox Option 2 included the following increases: 6.3% for FY23, 8.3% for FY24 and FY25. Assembly members wished to receive feedback from the Port and Harbors Commission. Next, Haley reviewed the Water Fund. Administrator Leach said he was optimistic there would be infrastructure funding opportunities available for the Water and Wastewater Funds. A motion was made by Mosher to direct staff, for budget planning purposes, to move forward with option 3 for the Water Fund. The motion PASSED by the following vote. Yes: 4 - Mosher, Miller, Christianson, Duncan No: 2 - Eisenbeisz and Himschoot Absent: 1 - Knox Option 3 included the following increases: 5% for FY23, 6% for FY24, and 3% for FY25. Next, Haley spoke to the Wastewater Fund and increased costs. Public Works Director Michael Harmon reminded upgrades had been made to the Wastewater Treatment Plant building, however, the equipment in the building was over 38 years old. A motion was made by Himschoot to direct staff, for budget planning purposes, to move forward with option 2 for the Wastewater Fund. The motion PASSED by the following vote. Yes: 4 - Christianson, Himschoot, Duncan, Miller No: 2 - Mosher and Eisenbeisz Absent: 1 - Knox Option 2 included the following increases: 8% for FY23, 8.5% for FY24, and 8.25% for FY25. Next, Haley reviewed the Electric Fund. She relayed with the refunding that had taken CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final February 17, 2022 place, meeting bond covenants were no longer a challenge. A motion was made by Mosher to direct staff, for budget planning purposes, to move forward with option 3 for the Electric Fund. The motion FAILED by the following vote. Yes: 2 - Mosher and Eisenbeisz No: 4 - Himschoot, Duncan, Miller, Christianson Absent: 1 - Knox Option 3 included the following increases: 2.5% for FY23, 3.5% for FY24, and 2.75% for FY25. A motion was made by Himschoot to direct staff, for budget planning purposes, to move forward with option 2 for the Electric Fund. The motion PASSED by the following vote. Yes: 4 - Miller, Duncan, Himschoot, Christianson No: 2 - Mosher and Eisenbeisz Absent: 1 - Knox Option 2 included the following increases: 4% for FY23, 3% for FY24, and 2.5% FY25. Next, Haley reviewed the Municipal Solid Waste Fund. Eisenbeisz reminded of increased shipping costs. A motion was made by Eisenbeisz to direct staff, for budget planning purposes, to increase FY23 rates by 10% for solid waste and increase scrapyard and transfer station rates by 6%. The motion FAILED by the following vote. Yes: 3 - Miller, Christianson, Eisenbeisz No: 3 - Mosher, Duncan, Himschoot Absent: 1 - Knox Members discussed further and noted the importance of staying ahead of costs. Himschoot reminded of the need to promote personal responsibility with regards to garbage production. A motion was made by Christianson to direct staff, for budget planning purposes, to move forward with Option 1 for the Municipal Solid Waste Fund. The motion PASSED by the following vote. Yes: 6 - Duncan, Eisenbeisz, Christianson, Himschoot, Miller, Mosher Absent: 1 - Knox Option 1 included the following increases: 7.5% for FY23, 6.75% for FY24, and 6.5% for FY25. CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final February 17, 2022 B 22-018 Discussion / Direction of the FY2023 Municipal Budget as it relates to the General Fund and other Funds, if needed (Assembly action may be taken) Mosher and Eisenbeisz wondered about increasing the monthly subsidy for the utility cost subsidization program from $65 to $100. It was noted this would require a code change. Miller and Eisenbeisz revisited the January 27 budget meeting in which additional positions were spoken of. Miller and Eisenbeisz expressed a desire to place more money into capital projects as opposed to adding all of the proposed positions. Administrator Leach reminded not all of the positions were a necessity but rather had been presented as part of identified projects to move forward if the Assembly desired. VIII. PERSONS TO BE HEARD: None. IX. ADJOURNMENT A motion was made by Christianson to ADJOURN. Hearing no objections, the meeting ADJOURNED at 9:00pm. ATTEST: ___________________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 4