HomeMy WebLinkAboutCouncil.Minutes.01-13-2004.SpecialProceedings of the City Council, City of Cape Girardeau, Mo.
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Session .January 13, 2004 309
SPECIAL SESSION — JANURY 13, 2003
The Cape Girardeau City Council convened in special session on Tuesday, January 13, 2004, at
7:00 p.m. with Mayor Jay B. Knudtson presiding and Council Members Evelyn Boardman,
Charles Herbst, Matthew Hopkins, Jay Purcell, Marcia Ritter and Hugh White.
The agenda was adopted as distributed upon Mr. Hopkins' motion, Ms. Ritter's second, and the
following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none.
The Council discussed issues relating to the proposed Fire Sales Tax.
City Manager Doug Leslie reported that additional information is provided in the agenda packet
regarding the ten-year budget trends and other tax issues that have occurred in the past with time
frames for those issues. Finance Director John Richbourg explained that the pay plan adjustment
and COLA's in the late 1990's are included in the budget figures but are not itemized. In addition,
the dollar amount difference between the reoccurring revenue and expenses is the amount
available to purchase capital equipment each year. Seventy-three percent of the General Funds
covers personnel expenses, and the other 22 percent is operating expenses.
Mayor Knudtson stated he has reviewed the budget carefully in the last week. He evaluated what
proposal would provide the best opportunity to be successful, because the City cannot afford for
this tax issue to fail. He still feels that a full sunset provision would help the tax issue be
successful. Simple budget cuts will not fix the problems of the City. He questioned whether the
Council should set an amount or percentage to be cut from the budget, challenge Mr. Leslie and
the city staff to make cuts to meet this number, prove to the citizens that the City is working to
make needed cuts, and then place the issue on the August ballot. He made additional comments
that the staff and Council need to investigate this issue further.
Mr. Hopkins expressed concerns that the budget could be cut, but there are uncontrollable
expenses that will eat up the cuts, such as health insurance costs. In addition, the expense of an
August election will need to be added into the budget.
Regarding the timing of the issue, Ms. Ritter stated that an April election does not coincide with
the budget preparation time for next year.
City Attorney Eric Cunningham reviewed the following dates that must be met for an August 3,
2004 election: May 25, notice to County Clerk calling an election; April 19 for first reading and
May 3 for second and third readings of an ordinance calling an election; January 1, 2005, tax
becomes effective; March 1, 2005, tax money would start being disbursed to the City.
Mr. Purcell commented on the public perception of placing a tax proposal on the ballot without
attempting to make budget cuts first. Mayor Knudtson continued that the City Council has not
given any reasons for the public to trust them, and they need to prove to the citizens that the
budget has been managed.
Mr. Leslie further explained that the budget the staff is currently working on will not assume any
revenue from a tax proposal. In addition, the sales tax revenues for the current year are not coming
in as hoped, and the City may be looking at budget cuts before the end of the current fiscal year.
The needs have not changed since the last election. The budget has been balanced on the backs of
the employees, and this is not sustainable. This will force us to look at reducing programs or
services in order to balance the budget for next year.
Proceedings of the City Council, City of Cape Girardeau, Mo.
Special Session January 13, 2004 310
T00111195
Ms. Boardman questioned what could be cut in the budget because the city has already done a
good job of being fiscally responsible. If the City looks at cuts, would the Council do an across
the board cut or identify critical services that must be provided and then cut the other things? This
falls on the Council to develop the priorities and then give these to the staff to make
recommendations. She stated she still supported putting the Fire Tax on the April ballot with a
sunset on one-half of the tax, which would cover the capital expenses. She did not feel that the
opinions of the public would change from April to August.
Mr. Purcell commented that if priorities are set, the Fire and Police Departments should be fully
funded including the day-to-day expenses and then prioritize down from there. If services are
eliminated, explain to the citizens why this was done and then maybe they will support the tax. If
the City shows that it is living within its means, the citizens will support it.
The Council generally discussed ways the budget could be cut, including services, and ways the
Council could gain support of the citizens for this tax proposal. Mayor Knudtson commented that
he did not know if proposed cuts should be limited to exclude cuts in the Police and Fire
Departments. He cited examples of a large fire truck and several fire employees responding to a
call where a citizen fell and could not get up and police officers taking their cars home when not
on duty.
Mr. White commented that the public may empathize that the employees are not receiving raises;
however, they don't feel the pain of the cuts. The City needs to look somewhere other than the
employees to make budget cuts. These cuts need to be seen and felt by the public. He stated that
budget cuts would open up a whole new dynamic with citizens who would be affected.
Following additional discussion by the Council, Mr. Purcell made a motion, seconded by Mr.
Herbst, not to place the Fire Tax on the election ballot in April 2004. The motion was approved
upon the following roll call vote: Boardman, nay; Herbst, aye; Hopkins, aye; Knudtson, aye;
Purcell, aye; Ritter, aye; White, nay.
The Council then discussed the direction it should take in addressing the budget issues. They
agreed to discuss the budget, priorities, and proposed cuts at the February 2nd City Council Study
Session and asked the staff to develop options to balance the budget. Mayor Knudtson stated that
the staff should also review fee increases above the five percent limit that need to be addressed.
There being no further business, the meeting adjourned upon Ms. Boardman's motion, Mr.
Purcell's second, and the following vote: ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell,
Ritter, White. Nays, none.
Jay B. udts n, Mayor
Gayle L. Co lad, City Clerk