CALL TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE

ROLL CALL

MAYOR AND CITY COUNCIL:

• Mayor Kuykendall
• Councilman Arnold
• Councilman Blair
• Councilman Carlow
• Councilman Hanna
• Councilman Kuknyo
• Councilman Lamerson

I. BUDGET PRESENTATION

It should be online shortly. Here's the link to the Budget Process page.

A. Budget Action Plan

This is the Action Plan document they've been looking at. 

There will be no public comments during this workshop, but plenty of opportunities are promised for the future.

One thing that is being discussed is #5a, to assess the Community Service Restitution  Program for effectiveness. I could possibly save the department around $136K plus. 

"Based on the services we get done, it does meet what we are expending in costs," said Chief Kabbel.

Hanna doesn't think that the work is getting done efficiently.

George Sheets says it's worth about 4 times what they pay for the program. "We work their ass off... they leave tired."

The city cannot, by law, charge for certain services.

The city will provide additional information to the public on this issue.

The vast majority of the calls don't concern fires.

"Are we a fire department, or are we a paramedic department?"

Is there a different way of doing it?

Craig said he doesn't think the public will want to see a reduction of services.

"Whether there's a better way that makes sense, and whether the level of service can be kept."

"The State dictates what the City of Prescott will pay into the retirement..."

When they were hired, there was no 3 or 4 to one citymatch."

"Over the years of evolution... some of tese codes need to be looked differently," Lamerson said.

Arnold asks what changes will be considereed before taking action.

How much detail can you get into?

Will have to have further discussion after receiving budget.

FY 15 will be flat.

We'll have to hobble through," McConnell said. 

"We're looking at a very lean year... we're losing weight and we're not going to servive."

"Will it get our city through this year, next year and the next 10 years," asked Arnold.

"This council is about asking this community what do you want?" Blair said.

Arnold contends that there are programs that are 'feel-good' programs, and may not be needed in today's day and age.

 We have to look at the entire picture, said Marlin Kukendall.

He looks at the neighbors and the services we try to provide. "It's not difficult to see why we're in trouble. We've not kept pace as we've been looking down the road on."

"Expenses didn't take a holiday when we were trying to take ... we have to take a look at what this community wants from the city and what they're willing to pay for."

 "I'm confident that our departments are cut to the bone. We'll get there this year," Kuykendall said. 

Notes that the city's golfcours is one of the two public golf courses at this time.

 one thing we need to do is to generate the metrics that show the value of having a public golf course.

"I think the issue of the golf course repaying the general budget loan..."

Lamerson notes that there are user fees that are successful (ie: water, etc.)

Craig suggests, "How much ala carte for services is sustainable?"

He reminds the council that it's really about community. And a community is more than just about money.

Tourism: Wants to transition the tourism expense to the bed tax or some other permissible source. 

$300K from the General Fund is supporting tourism. No suggestion of getting rid of tourism, however. 

Even though the airport is an enterprise fund, there is general fund support.

Blair asks how long term hangar leases can be changed? Some rates are nowhere near market, and are locked into longterm contracts.

Possibly become more enterprenurial as a city. 

Cost recovery based on services rendered at the airport.

"I don't think many people in the City understand what we have out there. There is an opportunity to work with Embry Riddle and others for niche markets... promote the airport in a much more aggressive way."

Arnold wants to recognize the staff members that have put together the budget reports.

"I only hope that we continue to have the public discussion as well as the council discussion. We need to drill down and decide what is mandatory, what we need, what we can do without and what we can allow the private sector to do."

Kuknyo suggests paving 5 feet by the runway, and then allowing the grass to grow a little higher.

Revenue/Funding Measures

Consider placing the secondary property tax levy to be a bridge for income to help parks and rec and the library stay in business.

"If Pioneer Park turns brown and is full of tumbleweeds, we're not going to have tournaments," McConnell said.

This is an available tool to all municipalities under $40K. 7 years max, it sunsets, and cannot be renewed.

Right now the City's secondary tax levy is to pay off the prior purchase of Watson and Willow Lake. The year that expires is 2013, so, extending it would not take place until 2014.

It would be effectively the same property tax amount as the residents are paying right now for the lakes. 

Arnold points out that his personal opinion may be against taxes, "I sure do not want to stand in front of the voter's ability to make that determination for themselves."

Lamerson notes that the current secondary tax was for a specific purpose. He asks if there would be a specific purpose if it were to be continued.

Yes, "therein lies the opportunity to explain to the public..." McConnell

Hanna asks when the council would have to act on whether or not to place it on the ballot. At least 120 days before the election.

They would have to craft the wording and also the pro and cons for the measure.

Hanna is willing to let the voters decide, too.

Arnold asks when Woodfill expects to have the revenue projections from the State.

Blair asks if they were able to create a special district for the fire department, what it would cost the taxpayers. 

On a $200K home, (these are ROUGH numbers) about $200 per year for fire protections, Mark Woodfill.

Woodfill notes that this would be a very ambitions project.

The City cannot decide to put the fire department separately on a property tax bill, the only option is to use a fire district.

Kuykendall notes that CYFD charges about $2.07 per hundred, where the City of Prescott would charge $1.03 per hundred.

Taxing alcohol could eliminate the current system of licensing alcohol establishments.

"This is all about balancing the budget, providing services at an appropriate level," Craig said.

"We need to approach our budget today and into the future thinking, 'No new taxes' and figure out how we're going to make it work," Arnold said.

Carlow points out the State will have it's 1% sales tax eliminated.

If tax proposals are being placed on the ballot, it would have to be put on the ballot by the end of June.

Fully funded needs total an extra $6-7 million. "It is indeed a shortfall," McConnell said.

Blair notes that the City would effectively have to shut down Parks and Rec and the Library to fund the shortfall.

Kuykendall notes that when he first came to the City, they were using 50% for public safety. But, now it's 68%.

"No matter what we do, it will have a reverse reaction. We have to be careful about what we take the scalpel to, because it will affect the community in a big way," Blair said.

II. ADJOURNMENT