August 2, 2005
The Board of Commissioners of the City of Lawrence met in regular session at 6:35 p.m., in the City Commission Chambers in City Hall with Mayor Highberger presiding and members Amyx, Hack, and Schauner present. Commissioner Rundle was absent.
CONSENT AGENDA
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to approve the City Commission meeting minutes of July 19, 2005. Motion carried unanimously.
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to receive the Lawrence Historic Resources Commission meeting minutes of June 16, 2005; the Bert Nash Governing Board of Directors meeting minutes of March 29, 2005, May 31, 2005, and June 28, 2005, the CHIP Mental Health Task meeting minutes of June 29, 2005; and the Lawrence-Douglas County Housing Authority meeting minutes of June 27, 2005.
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to approve claims to 378 vendors in the amount of $921,417.19. Motion carried unanimously. As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to approve the Drinking Establishment Licenses for Chartrosse Caboose (New), 1606 West 23rd; Cadillac Ranch, 2515 West 6th; and the Retail Liquor License for Myer’s Retail Liquor, 902 West 23rd. Motion carried unanimously.
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to reject all bids on July 12, 2005 for 6th & Indiana Sanitary Sewer Improvements. Motion carried unanimously. (1)
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to authorize the City Manager to enter into a contract with Univar USA, Inc., for household hazardous waste collection, disposal services and technical assistance for one year with options to renew annually for up to three additional years providing funds are available, in an amount not to exceed $55,000. Motion carried unanimously. (2)
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to authorize the City Manager to enter into a contract agreement with Nowak Construction in the amount of $105,000 for Waterline Relocation at Kasold Bridge and I-70. Motion carried unanimously. (3)
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to place on first reading, Ordinance No. 7908, rezoning (Z-05-33-05) 1.004 acre, M-1 to RO-2, East 19th and Homewood St, East of Bullene Avenue. Motion carried unanimously. (4)
Ordinance No. 7910, establishing a “reserved parking for persons with disabilities” space in front of 714 Alabama Street, was read a second time. As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to adopt the ordinance. Aye: Amyx, Hack, Highberger, and Schauner. Nay: None. Motion carried unanimously. (5)
Ordinance No. 7911, establishing “2-hour parking”, from 8:00 a.m. to 4:00 p.m., Monday – Friday in the recessed parking area adjacent to Veteran’s Park between 18th and 19th Street, was read a second time. As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to adopt the ordinance. Aye: Amyx, Hack, Highberger, and Schauner. Nay: None. Motion carried unanimously. (6)
Ordinance 7899, allowing pursuant to the provisions of 2005, the sale at retail of package cereal malt beverage and package alcohol on Sundays and certain holidays, was read a second time. As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to adopt the ordinance. Aye: Amyx, Hack, Highberger, and Schauner. Nay: None. Motion carried unanimously. (7)
As part of the consent agenda, it was moved by Schauner, seconded by Amyx, to authorize the Mayor to sign a Subordination Agreement for Kathleen Hunt, 2606 Belle Haven Drive. Motion carried unanimously. (8)
CITY MANAGER’S REPORT:
During the City Manager’s Report, Ed Mullins, Finance Director, presented a summary of the Second Quarter Financial Report – 2005 for the City of Lawrence. He said concerning the General Fund, the City was showing some significant revenue growth of approximately 7%. The property tax increase was the result of a 6.5% growth in assessed valuation, but a small decrease in the levy. The general fund expenditures were less than 50% halfway through the year. Even though there was a 14% growth over the same period last year, the City was below budget along with most of the programs and divisions which was a good sign. On the water and sewer side, the City’s revenue increased approximately 6% and the usage was relatively flat. The Golf Course Fund was significantly less than 50% of revenue from green fees in June. Consequently, the projections show approximately $130-140,000 down at that end of the year. He said the City needed to make up that gap, but it would be up to the City Commission whether they wanted to make some type of transfer or look at accounting entries at the end of the year for funds that either through investments had some short-term cash problems with an inter fund transfer, but those funds were expected to be paid back. He said he was not sure the golf course would be in a better position, next year, to pay those funds back. He suggested that issue needed some further study so that the Commission could make a decision on how to handle that deficit.
He said also in his report was a chart that depicted projected versus actual sales tax. He said overall the City would see a growth of approximately 4% which was a good sign that local economy was still growing.
Finally, concerning the CIP (Capital Improvement Projects) the City would be conducting a General Obligation Bond issue that would finance the listed projects for the CIP. As a reminder, those were a non-water and sewer projects, but were Public Works projects.
Commissioner Schauner asked if the City had the ability to track sales tax on a per capita basis to see whether they were increasing over time.
Mullins said sales tax could be tracked on a per capita basis because staff kept 10 years worth of data on sales tax. It was a question of taking the population for those years and doing the math. He said staff could provide that information to the City Commission.
Commissioner Schauner said the City was collecting more sales tax, but he did not know if the City was increasing on a per capita basis or had an aggregately bigger number at the end of each fiscal year.
David Corliss, Assistant City Manager/Legal Services Director, asked Mullins if there should be some type of inflation adjustment.
Mullins said retail inflation had been very low. He said the retail area had a tough time making price increases stick. He said there was not a lot of inflation and there was probably about a 2% population growth. If there was a 4% sales tax growth then there would be a small amount of growth. He said staff could put in a price deflator if the Commission desired.
Commissioner Schauner said he would like to see that deflator because it went to his interest in figuring out how much additional retail capacity the community could absorb and expect to receive along with new total dollars of sales tax generation.
Vice Mayor Amyx said the Commission might want to have a discussion about the golf course. One of the discussions that the Commission had during the budget session was how to bring more money into that fund and one idea was to look at bringing in tournaments on weekends. He said if the City was going to lose $130 – $140,000 a year then the Commission had to cut loses somewhere. He said this issue needed serious discussion.
Mullins said this issue needed a long-term solution because the golf course had been limping by the last three or four years.
Vice Mayor Amyx suggested that staff provide the Commission with information from the golf course.
Commissioner Hack said the golf course had provided that information, but an update on information would be helpful. She said it was time to seriously consider the golf course.
Commissioner Schauner said Lawrence was in a part of the country where there was not ten or eleven months of play, but a short season. It was hard to make a golf course, which was an inherently an expensive operation, be a net plus game.
Mayor Highberger asked if it was fair to say that the 2005 budget was less conservative than in past years. He said he noticed that half way through the year the City was traditionally over half of their revenues, but the percentage over was lower this year than previously.
Mullins said they projected more sales tax growth this year and in 2004 they were about 55% of budget and this year 51% of budget. He said the City was a little more aggressive in terms of what the City might see in sales tax growth.
Mayor Highberger said the amount of difference between the City’s revenues and expenditures this year was likely to be less than prior years.
Mullins said this year the City was seeing revenue growth because the City had gone through several years of fairly tight budgets. He said there had been some easing especially in the 2005 budget because there was some significant revenue growth as well as expenditure growth. He said the City should see a surplus at the end of the year in terms of revenues exceeding expenditures. (9)
REGULAR AGENDA ITEMS: None.
PUBLIC COMMENT: None .
Moved by Schauner, seconded by Amyx, to adjourn at 6:55 p.m. Motion carried unanimously.
APPROVED:
_____________________________
Dennis Highberger, Mayor
ATTEST:
___________________________________
Frank S. Reeb, City Clerk
1. Bids – Reject, Jul 12, 2005 for 6th & Indiana Sanitary Sewer Improvements.
2. Contract – household hazardous waste collection & disposal to Univar USA, not to exceed $55,000.
3. Contract – Waterline Relocation at Kasold Bridge & I-70 to Nowak Construction for $105,000.
4. Ordinance No. 7908 – rezone (Z-05-33-05) 1.004 acres, M-1 to RO-2, E 19th & Homewood, E of Bullene.
5. Ordinance No. 7910 – 2nd Read, reserve parking for persons wit disabilities 714 Alabama.
6. Ordinance No. 7911 – 1st Read, 2 hour parking, 8 – 4 pm, mon-fri, Veteran’s Park between 18th & 19th.
7. Ordinance No. 7899 – 2nd Read, sale of retail & CMB on Sunday’s.
8. Subordination Agreement – 2606 Belle Haven, Kathleen Hunt.
9. City Manager’s Report -- Second Quarter Financial Report – 2005 for the City of Lawrence.