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08-07-1972 MinutesCONSOLIDATEASALINA 11 i WAIVER AND CONSENT TO HOLD A SPECIAL MEETING OF THE BOARD OF COMMISSIONERS We, the undersigned, being the duly elected, qualified and acting Commissioners of the City of Salina, Kansas, and constituting all the Board of Commissioners of said City of Salina, Kansas, do hereby waive notice and consent to the holding of a special meeting of the Board of Commissioners on the 7th day of August, 1972, at 7:00 o'clock P.M., for the purpose of conducting a public hearing on the proposed budget for 1973, and considering the business regularly scheduled to come before said Board of Commissioners on August 7, 1972, at 4:00 o'clock P.M., the regularly scheduled meeting time. Dated this 7th day of August, 1972. City of Salina, Kansas Commissioners' Meeting August 7, 1972 The Special Meeting of the Board of Commissioners met in the Commissioners' Room, City -County Building, on Monday, August 7, 1972, at 7:00 o'clock P.M. for the purpose of holding a Public Hearing on the proposed budget for 1973, and to consider all items on the agenda for the regularly scheduled meeting for 4:00 O'clock P.M. The Mayor asked everyone to stand for the Pledge of Allegiance to the Flag and a Moment of Silent Prayer. There were present: Mayor Jack Weisgerber, Chairman presiding Commissioner Leon L. Ashton Commissioner Robert C. Caldwell Commissioner Norma G. Cooper Commissioner Mike Losik, Jr. comprising a quorum of the Board, also: Ron Barta, Assistant City Attorney Norris D. Olson, City Manager D. L. Harrison, City Clerk Absent: L. 0. Bengtson, City Attorney The Minutes of the Regular Meeting of July 31, 1972, were approved as mailed. STAFF AGENDA THE CITY COMMISSIONERS held a Public Hearing on the 1973 Proposed Budget. The Mayor opened the hearing by reading the following prepared statement: "The President of the United States sends a budget message to Congress and through the news media, to all the Nation --- so I guess the Mayor of Salina can have a budget message too, for the Commission and for the citizens of Salina. Congress does not always agree with the President and the Commission may not agree with me but 'let me make one thing perfectly clear', I believe what I am going to say is honest, logical and in the best interest of not only the property taxpayer, but of all Salina citizens. "I don't like the way some of the figures in the City's accounting system are expressed. Some figures are misleading to most citizens and only an accountant can clearly understand what is done and why. Let's make one example of a misleading figure. The published budget figure was $6,640,350.00. The Water Department collects the Sanitation Fees and records the income. It then transfers these funds to the Sanitation budget where they are recorded as an income item again --- and the Water Department records an expense. When these funds are paid out of Sanitation, they are again recorded as an expense -- so in this one instance there is a quarter million dollar figure included twice in the $6,640,350.00 figure. If this transfer situation were indulged in freely, we could show a budget of twenty or twenty-five million and not take in or spend a penny more than we do now. This is a confusing situation to even the above average citizen who wants to know the real expense figures. Perhaps the biggest point of objection I have to the way our budget figures appear to the citizens is the inclusion in the total of $6,000,000.00 plus figure of the Water Department expense. This Department is involved in the sale of a product. It must stand on its own, just as a private business operation would do. It does not and must not involve tax dollars. Many people buy and use the product who are not real estate property tax payers. "If you take out of the $6,640,350.00 figure the transfer of funds from one department to another and those items of the City Water Department, Parking Meter expense, etc. that do not involve property tax revenues, we come to a more realistic budget figure of $4,110,470.00. But let's go one step further. About one-half of this $4,110,470.00 comes from an assortment of fees, permits, fines, state rebate funds and other miscellaneous items of income. When you get to the basic figure of what does the real estate property owner pay -- the figure in the 1973 budget is $2,054,768.94. A lot of money, yes, but a far cry from the $6,640,350.00 a lot of people feel they are being taxed for. iS "I have one more comment so far as the City's general accounting system is concerned. A number of people look at the year end carry-over and feel a poor job was done in estimating the budget. The accounting figure shows cash balance of about $122,000.00, January 1, 1972, but it fails to note that funds will not be coming from the County Treasurer before or near the end of January and the City must have cash for the January 15th payroll, which this year was about $68,000.00 in the General Operating portion of the budget, this leaves a carry-over of about $54,000.00. This carry-over is added to the income for the next year's budget and so becomes a deduction from the amount that must come from taxes in that year. "So much for the misunderstandings of the accounting system. Some people living in Salina feel that all of their tax bill is the City's responsibility. Not so. The City of Salina's request for 1973 asks for only 28% of your property tax dollar. During the last few years as your property tax levies have crept up and up, the school and County have taken bigger and bigger mill levies -- only the City has held the line on a levy increase. No place in government do you get more service for your dollar than you do from your city tax dollar. The further that dollar goes from home, the less you get back. "Looking to 1973. What are you, the citizens of Salina doing without as the City operates under the State's Budget and Tax Lid Laws? Answers to this would vary from 'Not a thing, the City does too much now' to the other extrerRe which might be, 'The City doesn't begin to do what it should for the people'. In my opinion, by efficient operation, the City has progressed quite well. There are some problems beginning to build. These problems are not obvious to the public because they concern mostly capital improvements. For just one example -- no room could be found in the 1973 budget for a new street sweeper, although the City has in use a 1966 sweeper with 42,000 miles. Records show that 35,000 miles is about the limit on a sweeper without continuing major repair and costly down time. There was no room in the budget either for park improvements or replacement of park facilities which are much needed. These are just 2 examples of a number of needs which were eliminated from the budget in the earlier planning stages. The total items eliminated came to about $150,000.00. When the budget is adopted, we have to live with it and get by. The danger is that as needs gradually grow, there will come a day of reckoning. Hopefully, by careful and wise management, the City will put its funds where most needed and not get too far behind. This is not easy --- while the national rate of inflation hits all Salina citizens in their private pocketbooks, it hits the City too, in all it buys and does. "For 1973 there are some new, but necessary expenses coming up. $40,000.00 must be paid on new fire equipment. Taking into the City's planning the three mile radius around Salina is necessary, but will cost money. Federal rules on Workable Program will require hiring an additional inspector. The State Highway has withdrawn supporting funds for streets within Salina. The City must make these up from its own funds. There must be an increase in the Police and Firemen's Pension Funds for they are not actuarily sound as now funded. And so go the new expenses, the ones we know of and on and on, but what about the unknown? This is August 1972, the budget goes through December 1973. What we may be required to do in the ecological field as the Federal and State Governments impose new rules? What may we have to do in landfill for example? What extra expenses might a bad winter or other freek weather bring? There is no way of knowing what necessity for City funds may come about -- a current survey of Firemen's and Policemen's pension funds may very well show that the increases allowed for next year is insufficient -- so while a budget cannot allow much, there must be some Contingency Fund for the unforseen. "Can we cut the budget more for 1973? Of course we can. We can arbitrarily cut it at almost any percentage, but it means a reduction of service in some or all departments. Let me go back to something I said earlier -- yoq get your money's worth from the dollar the City spends. When literally hundreds of hours have been spent in putting the budget together and when it is presented in detail with reasoning behind each point and when you see how many tax dollars are asked for, I hope you will feel that this is a carefully planned, honest budget that gives the taxpayer their money's worth. Remember, it is $2,000,000.00 plus we ask in tax dollars, not $6,000,000.00." Mayor Weisgerber said this opens the door for discussion, and asked if anyone cared to comment? There was no response. Commissioner Losik said, "Well then, I might as well get it going then. Since I think our procedures call that after a thorough discussion, that I will go ahead and proceed with a motion. The Mayor read an article there that explained in part the very fine things, as he stated, all of us don't agree, so my motion is: Excluding the present amount requested for employees salaries plus the $53,000.00 set aside for cost of living raises or job classification adjustments, I recommend a 5% reduction, across-the-board, in the General Operating Fund. That, Mr. Mayor, is my motion." The motion was seconded by Commissioner Cooper. i Mayor Weisgerber commented that the motion and the second limits the debate from the floor, but it could be debated among the Commissioners. He said, "In other words you are saying we should cut, take every line item in there and cut 5% off of it, except for salary?" Fund? Commissioner Losik replied, "That is correct, in the General Operating Fund". Commissioner Caldwell asked if that included the Firemen and the Retirement Commissioner Losik replied that it included everything. Commissioner Caldwell asked, "How would maintain the Firemen?" Commissioner Losik answered, "We are not doing it anyway, Bob, and you never have. This has been a part here that is going to have to be supplemented. And since we are today ... I would like to go ahead and go into this a little wee bit more to perhaps explain a little in detail of what I am talking about. Now our total amount to be spent is increased, and of course this increase that we have is due to valuation. Now this doesn't mean that we must not make an honest effort to lower the tax levy. Even with the request I've made to reduce the General Operating budget five percent, we will still be budgeting $79,849.00 more in this area than we did last year. Now we've got to draw a line some place here. Now we cannot continue taking up a five percent increase each year just because the law allows it. There are those that say, 'What if we run short of money', or 'If we lower the levy we won't be able to get it raised later without a lot of trouble and discontent with the taxpayers'. Well, first of all, the law provided for emergencies through areas such as we have seen here recently this year. We can issue no -fund warrants for fire vehicles or any other emergency. We can have improvement bonds which we, as a Commission, can go ahead and authorize up to $100,000.00, temporary notes, such as we have done for the Cultural Arts. There are many legal ways built in to take care of contingencies that you cannot budget for, Now we have used those ways and we will continue using them, but if and when, and I say if and when the levy is required to be raised to pay for the high priority necessities, such as Waste, Sewer, Safety, and so forth, that the Mayor read in his message there, our citizens, when properly informed and approached, can fully understand what it is we are asking for, will be more than willing to pay their fair share for these necessities, but the people are very much opposed to spending hard earned tax dollars for the luxuries that, in themselves, are not signs of progress. Salina will not become a City on the move just because we spend a lot of money and have high taxes. Progress is not measured in terms of high spending and high taxes. It has been said if we don't need it we won't spend it, and we'll review it before we spend it. This, ladies and gentlemen, has not materialized. So now I say, let's not budget it, and then we won't have to look for a place to spend it. This is the time to cut the budget to save the tax dollars and I think it can be done. It can be done very reasonably and I might add that I have had some accounting people who have reviewed this and have stated that we would not be in any serious trouble, As I say, the law does provide for contingencies and emergencies." Commissioner Caldwell said, "Well, you referred to no -fund warrants. Are they for emergencies only? Can you get them at will when you need them? Would you explain that?" Commissioner Losik replied, "Yes, I'd be glad to. We needed fire trucks for five years, but all of a sudden this year we declared it as an emergency. It was an emergency last year and the year before, so you kind of go on how these things are interpreted. I think we can find money to do any of these things that we can justify to do, if the emergency does exist." Mayor Weisgerber asked the Assistant City Attorney to explain about no -fund warrants. Mr. Barta explained that General Operating matters, which are normally included within the budget, year in and year out, would not be subject to no -fund warrants until such time as they become an emergency; so if it was allowed to develop for a period of four or five years and then created an emergency, at that time you could issue no -fund warrants, but not next year or 1974 unless this developed. Mayor Weisgerber said that what he is saying is, "If you simply miscalculate your budget, and you begin running low on money at the end of the year, this doesn't constitute an emergency in their eyes, does it?" Mr. Barta replied that it does not. 189 Commissioner Cooper said she would like to make a couple of comments. "Granted this proposal is a token effort. I believe if this Commission were being asked to spend this amount of money, we would probably pause long enough to make the motion and then proceed, but we are being asked to save it. It is my belief that many elected officials, from City Commission, School Board, Country, right on up to Congress, take a certain kind of shelter and refuge in explaining to people budget costs in government costs, the inflationary spiral, which is very real. The City does have to pay more for things this year then they did last year. In the increasing demand on the part of the people for additional programs and services which is very real and then they conclude by saying, 'So you see you just can't reduce the cost'. Well I submit, how would they know? They have never tried. For anybody that might believe, and I don't for an instant, that this would make this City a borderline bankruptcy case, I don't think it could be further from the truth. I think if you look at the figures that the Mayor has quoted to you, and take that General Operating Fund figure of two million and something. If you will pull the 1963 budget, and if you will pull your tax receipt, you will find that General Operating Fund and your tax receipt, both, have doubled within the last ten years. Now, true, costs have gone up, programs have enlarged, all of these things have happened, but I don't think most peoples' incomes, and the City of course, doesn't get all this money, this is what he said and when it comes to the tax statement is very so; but we do get our percentage of it and we do operate on it, and the proposal is that we could operate just as adequately on less. I think now is a good time to try it. Then we will both find out, the Community and the City Commission both. I think it is a good proposal." Commissioner Caldwell asked if they are going to try it just for the sake of trying it, or are they going to have some certain criteria that will make it work? Commissioner Cooper said, "Well let's decide if we can even agree to cut it." Commissioner Caldwell said, "Cutting it for the sake of cutting it is not an answer. You have to have certain criteria based on why you are going to cut it. Yes, you can cut it, but will it work after you have cut it? Just to try it just because no one else has tried before, that is not the answer." Mayor Weisgerber asked, "If it were cut five percent, how many dollars is this? How much does this mean? How much of a saving are we talking about for the taxpayer?" Commissioner Losik said, "I'm glad you asked. I thought you never would. Starting out with our prepared budget here of $2,468,610.00, the salaries alone, which I requested to remain as they were proposed is $1,779,780.00, this leaves a balance of $688,830.00, less $53,000.00 that has been earmarked for the proposal that I stated I would like to see done either to use that money which was earmarked for either the cost of living index for the employees or the job classification adjustment. This drops us down to $653,830.00 of which the five percent reduction, that a lot of Commissioners are so concerned is going to break the City, amounts to a saving of $31,791.00. That isn't much, as Mrs. Cooper stated, but it is a start in the right direction. Now why the five percent? Last year there was a gentleman who stood up, and he wasn't called wrong when he stated we are automatically raising the budget five percent because the law permits it. We did that this year too, because the law permits it. Now this is what I am advocating, I can't believe that we cannot save even that amount. It may not sound much compared to the $2,468,000.00 plus, but it is a start. It is an effort." Commissioner Ashton said he would have to differ with Mike a little bit. "In Norris' comments at the beginning, this is broken down and instead of using five percent over this year's budget, under this proposal, it is only 4.72 percent. Even all along the line they have been trying to maintain the City on a good business basis where we can try to foresee the things that are necessary and leave a little bit for the unpredictable. If we have three or four severe snow storms that we need to call extra equipment, and hire some outside companies to remove it; a tornado, such as we had a few years ago, many thousand of dollars were spent for the removal of trees and opening up the streets. I can't see why we should cut ourselves so close that in the event this happens, that we are down on Topeka's doorstep begging for money because we didn't anticipate anything unforseen. I looked at this budget from one end to the other. I think everyone on staff has made an honest effort to cut it as reasonable as possible and 148 thousand dollars has been cut out by Norris and Bill when they went through it, and I feel we have a good budget. I don't think the people of Salina want us to throw everything away. They want these services. They want to see Salina progress, and I feel if we are cut to a minimum, by taking something away, when it comes down to the end of the year, like we have done in previous years, where we had a little money left over and we needed fire hose very badly, it wasn't in the budget, but we purchased it with this little bit of revenue that was left over because we needed it. It was an opportune time because we are on a cash basis and we had the money and we did purchase it at that time. You start taking all these little piles of money away, what are you going to do when something comes up that is a good buy maybe, or something that is very badly needed, no one really anticipated, then you are going to have to seek other sources of revenue to get the money to do it." 1 1 61� Commissioner Cooper said that is the reason they are there. Commissioner Ashton replied, "I know it, but I am saying is whenever you start asking for no -fund warrants, this reflects on the City as being poor managers, it reflects on the City Manager because he is the one who sets up the budget, he is the one that carries it out, and sees that we stay within our budget. I think you are tying the City Manager's hands when you start cutting the budget below what he has anticipated and tried to project clear through to December 1973, which is a long way down the line and I feel that we, as Commissioners, assume the responsibility whenever we change the budget figure that he presents to us, that we are putting the burden on our shoulders, and none of the Commissioners here live with this program like they do and we should have enough confidence in our City Manager to accept his figure and see that it is doled out in the departments and what we feel it is justified, and then at the end of the year any monies that are left purchase the things that are needed. We have had a list of several things, in fact Mike brought up this program where we would have all these different things brought in and would analyze it and if we had any money we might do one or two of these along the line under our capital improvement program, and if you don't have any reserve or anything to fall back on, how can we move forward? Sure it is just like a family, you don't have to have steak on the table, you can have beans and things like this that don't cost so much, but someday the day of reckoning comes when you need these other things that you had to do without, and it soon tells on us. I feel we should accept this budget and proceed along these lines because I think we are well within our budget lid, I think it has been carefully planned and I feel this is as low a budget figure as we should have. We have to look toward next year when three new City Commissioners will come in and they don't want to have the pressures put on them if they are going to have to start trying to raise this base up again, and I think we have a good base and I think they have done a real good job of setting up a budget this year, and I think we can live by it." Mayor Weisgerber said, "The figure amounts to about 75(t per person that we are talking about taking off. I might make one comment on General Obligation bonds, they are a little bit tricky so far as the taxpayer and the budget lid law is concerned. We can use them, particularly in the range of parks, when you do, the interest and the payment on that are excluded from your budget lid and that is going to sneak that thing up in future years, assuming that the lid stays on, and circumvent that budget lid a little bit. The bad thing about it is you are paying interest on your money instead of having a little where you can collect interest on it, so for the same amount of money, it is going to cost the taxpayer more money." Commissioner Ashton commented he would rather see money coming in as interest than going out as interest. Commissioner Cooper commented that their concern for saving taxpayers money is really appreciated. Commissioner Ashton said, "I think we have done a good job, I think we should continue. I haven't any qualms about the way we spend money, it is administered very well. I think we have done as much as we possibly could with the dollars we spent." Mayor Weisgerber said, "I think we have a tendency to say we go up as much as the taxpayers will allow. We don't need to go that much, but we do. I feel it is quite the other way around. We need to go up perhaps more than that, maybe not much more, but some more; but we can't go any further. We go back over the years to 1965, 1 think the increases per year have run all the way from five percent, where we are now, to a high of about fourteen percent, that was an unusual year because it involved the taking over the land out at Schilling and putting a Fire Department out there and more Police, so that was kind of out of line, but with or without the tax lid our increases have run ..." Commissioner Cooper commented, "I hate to think what it would have been like without the tax lid." Commissioner Weisgerber said, "it was without the tax lid during the early years of the 1960's" Commissioner Ashton said, "From 1965 to 1968, before they had the tax lid, it was running from 42' to 5 percent. This was below the five percent even in those years. This is a normal budget." 484 City Manager Olson said he has these figures. "1964 to 1965 it was 4.79%. 1965 to 1966 it was 4.77%. 1966 to 1967 it was 14.23%. This was the year we opened the fire station at Schilling with 12 men, put 4 men on at the Police Department, bought the extra vehicles, 4 or 5 men on at the Street Department for street maintenance. Those are salaries alone, I can't recall but there was equipment in there too. In addition to that, there was another factor, that was the personnel study or salary range study was implemented on January 1, 1967. 1968 was 3.42%. 1969 was 7.05%. Primarily here of course, again your big increases through salaries and salary increases. In 1969 there was a one step across-the-board salary increase effective July 1, 1968, which reflected throughout the entire calendar year of 1969 plus a 3.9% cost of living that went in January 1, 1969. 1970 was 11.11%. This increase again, in the area of salaries. 5.1% cost of living and a 2% across--the-board salary increase. Of course all of you are aware that some of the position classifications provided 2 steps in a given 12 month period. A step every six months amounted to more than the cost of living, Then we get into the budget tax lid year of 1971, and it was 4.99% that year. It was 4.99% in 1972, and 4.72 is proposed for 1973. This thing does vary from a low of 3.42% in 1968 to a high of 14.23% the year right before that, when we took over Schilling." Mayor Weisgerber commented that 72% of the City's budget is salaries. "Now of course what Mike is talking about cutting does not involve the salaries. When we talk about increases in past years, I think we need to recognize that out of the money the City is paying out, better than 70% of it is in the salary field." Commissioner Losik said, "I don't think that any further discussion is going to change the outcome on how we will vote, I therefore call for the question." Mr. W. 0. Brown was present and said, "One of the Commissioners, who is sitting on the extreme East met me on the street the other night and wondered if I was coming to this meeting. I don't believe it is necessary for the simple reason that it is always cut and dried and goes right on through, so why waste our time in doing that. I am not speaking for the Taxpayers Association tonight, and I have been accused of being an "aginner" and I am not an "aginner". I am for this motion." Commissioner Caldwell said, "USD 305 in 1964 had a mill levy of 34.5%. In 1965 it dropped to 20.4% because of the closing of Schilling. The next year the cash carry over was lost in this dropping to 20.4% of the budget, and of course the carry over was lost in the closing of Schilling and they went back to 28.7%. In 1968 USD 305 budget mill levy was 46.6%. Again in 1969 it dropped 38.6%, in the 1973 budget it is 43.2%. Now I realize that you can be nice to taxpayers, you can be mean to taxpayers, but at this particular time our schools are in a dilemma as to what to do. The referendum was defeated, which we knew was going to happen because of what Mr. Brown has said. He is not an 'aginner', he is for the things he feels he is for, which is true and right; but the mill levy for USD 305 next year is going to be 43.2%. This was because they did away with the cash carry over trying to play well to the public, which was an error as far as the school district was concerned. The schools are in jeopardy, and the same thing can happen to the City. I imagine each of the Commissioners here tonight would like to see a cut in the budget, and I can see no way out on the 105% tax lid. We chop our budget this year, where will we start from next year? We will start where we have dropped off next year on 105% tax lid, which I hope will go out next year, and I rather doubt that it will. I know that Mr. Brown said it was a cut and dried thing. That is not true. I don't know where Mr. Brown got his cut and dried idea. Maybe he has caught the meetings quite well through the years, through this year anyway. I would like to relate one other thing to you before we go into a vote. This past year and part of last year we have been continually harassed asking our staff to bring up certain areas which the City felt needed to be done. We jumped on capital improvements. We asked for this 2 weeks and we want it the next week. We got that. What do we have to go on that will help the capital improvements? If we don't have any surplus or anything left over, what are we going to do? Where are we going to start? We want to cut everything except the certain departments. We want to talk about the Firemen problem. We want to talk about the Street Department, but we don't want to effect the salaries. If you cut one thing, you've got to cut everything. Five percent off everything. If it is going to be across-the-board, even if it did cut out some of the things he wants for instance, one of the things we might talk about is the lighting of West Crawford. We might cut out $8,000.00 on that. We might cut out the demolishing of houses for $9,000.00. We might cut $10,000.00 of the Contingencies Fund. It would still only be $28,930.00. This is still just a drop in the bucket. Now are we just going to play with this or are we going to act and have a reason for doing it. I have heard it all year now, are we going to cut back on the budget, but I have not seen anyone come talk to the staff or talk to the City Manager on how we can do this. We come to a meeting and this is how we want it done. We have not talked with the City Manager, we have not talked with staff about how we are going to cut the budget and I don't think any Commissioner, I don't care how smart he is, he does not know how to handle that budget the way he department heads do, until you sit down and ask questions. You can't be refined in your answer and talk about cutting the budget until you know how. You can try anything. If you don't have a thing to base it on, it won't do any good." Commissioner Losik said, "I think everybody has had their say, I would call for the question." Mr. Bill Scholl asked if another person could make a comment. He said he agrees with Commissioner Losik that we can stand a five percent cut. Mr. Byrne Kelley said, "I do represent the Taxpayers Association. The last meeting I attended, Commissioner Caldwell was Mayor. The Taxpayers Association is here to listen; but at this particular meeting Mayor Caldwell made a plea that personalities remain out of the meeting. I resent Mayor Caldwell's direct approach to a citizen, whom he called by name, and I would appreciate it if the meeting was kept on a high plane and personalities were left out of the meeting as per his request at the last meeting I attended." Commissioner Caldwell said, "I rescind that, sir." Commissioner Losik said he would like to try again. "I call for the question". Mayor Weisgerber called for a vote on the motion "excluding the present amount requested for employees salaries plus the $53,000.00 set aside for cost of living raises or job classification adjustments, that there be a five percent reduction across-the-board in the General Operating Fund." Ayes: Cooper, Losik (2). Nays: Ashton, Caldwell (2). The Mayor voted no. The motion was defeated. Mayor Weisgerber commented, "I feel there are several areas, the Firemen's Pension Fund, if we have any money left, that is going to cost $150,000.00 somewhere along the line, and if we are going to continue Memorial Hall, I feel the taxpayers are going to get their money's worth." Commissioner Ashton said, "If we are going to continue Memorial Hall, we are going to have to have money to upgrade it." Commissioner Ashton moved that the 1973 proposed budget be accepted, and an ordinance be introduced for first reading levying the taxes for general revenue for the year 1972 for the 1973 budget. The motion was seconded by Commissioner Caldwell. Ayes: Ashton, Caldwell (2). Nays: Cooper, Losik (2). The Mayor voted Aye. Motion carried. Ordinance Passed: i'l I 7z Number: B2-3 AN ORDINANCE was introduced for second reading entitled: "AN ORDINANCE levying special assessments against certain property to pay for the cost of the demolition of structures located therein which were ordered removed or demolished by the Public Officer pursuant to Article II of Chapter 16 of The Salina Code." A motion was made by Commissioner Cooper, seconded by Commissioner Losik to adopt the ordinance as read and the following vote was had: Ayes: Ashton, Caldwell, Cooper, Losik, Weisgerber (5). Nays: (0). Carried. The Mayor approved the ordinance and it is numbered 8235. The ordinance was introduced for first reading July 31, 1972. A MOTION was made by Commissioner Losik, seconded by Commissioner Ashton to introduce an ordinance for first reading levying special assessments against certain lots and pieces of property to pay the cost of cutting weeds on certain lots and parts of lots and the parkways abutting thereon in the City of Salina, Kansas. Ayes: (5). Nays: (0). Motion carried. Ordinance Passed: Lat_,o I4 1972- Number: 8231 A MOTION was made by Commissioner Ashton, seconded by Commissioner Losik to introduce an ordinance for first reading levying special assessments against certain lots and pieces of property to pay the cost of abatement of nuisances. Ayes: (5). Nays: (0). Motion carried. Ordinance Passed:y�,Q„�- �� 197 Number: $238 1 8(i A LETTER was received from the Salina City Planning Commission recommending the denial of Petition Number 3247, which was filed by Roberta Kaufman, Agent, for the rezoning of Lots 12, 13, 14, 16, 25, 26, 27, 28, 29, Block 5, Replat of Edgemere Addition, from District "A" (Second Dwelling House District) to District "C" (Apartment District). A motion was made by Commissioner Losik, seconded by Commissioner Cooper to accept the recommendation of the Salina City Planning Commission and deny the petition. Ayes: (5). Nays: (0). Motion carried. A LETTER was received from the Salina City Planning Commission recommending the denial of Petition Number 3260, which was filed by H. W. Steele, for the rezoning of Lots 12, 13, 14, 15, 23, 24, 25, 26, Block 15, Belmont Addition. from District "A" (Second Dwelling House District) to District "D" (Local Business District). A motion was made by Commissioner Cooper, seconded by Commissioner Losik to accept the recommendation of the Salina City Planning Commission and deny the petition, since Mr. Steele had requested to withdraw the petition. Ayes: (5). Nays: (0). Motion carried. A LETTER was received from the Salina City Planning Commission recommending the approval of Petition Number 3261, which was filed by Dale Hoag, for the rezoning of Lots 12 and 13, Block 13, Oakdale Addition from District "B" (Two -Family Dwelling House District) to District "C" (Apartment District). A motion was made by Commissioner Cooper, seconded by Commissioner Losik to accept the recommendation of the Salina City Planning Commission and approve the petition, and to introduce the rezoning ordinance for first reading. Ayes: (5). Nays: (0). Motion carried. Ord i nance Passed: 197z. Number: 239 THE CITY ENGINEER filed Estimate Number 4 for Engineering Project 72-542 for Miscellaneous Street Improvements for Smoky Hill, Inc., in the amount of $11,351.82. A motion was made by Commissioner Losik, seconded by Commissioner Ashton to approve the estimate. Ayes: (5). Nays: (0). Motion carried. THE CITY ENGINEER filed Final Estimate for Engineering Project 72-543 for Water _ Main Improvements for Stevens Contractors, Inc., in the amount of $7,788.39. A motion was made by Commissioner Cooper, seconded by Commissioner Caldwell to approve the estimate. Ayes: (5). Nays: (0). Motion carried, THE CITY ENGINEER filed Estimate Number 3 for Engineering Project 72-544 for Street Improvements in Lakewood Park for Smoky Hill, Inc., in the amount of $18,291.89. A motion was made by Commissioner Ashton, seconded by Commissioner Cooper to approve the estimate. Ayes: (5). Nays: (0). Motion carried. THE CITY ENGINEER filed Estimate Number 2 for Engineering Project 72-54.4 A for Lakewood Park Improvements for Presley Builders, Inc., in the amount of $28,760.55. A motion was made by Commissioner Losik, seconded by Commissioner Ashton to approve the estimate. Ayes: (5). Nays: (0). Motion carried. THE CITY ENGINEER filed Estimate Number 1 for Engineering Project 72-547 for Sanitary Sewer Extension for Lakewood Addition, for Stevens Contractors, Inc., in the amount of $6,160.50. A motion was made by Commissioner Cooper, seconded by Commissioner Losik to approve the estimate. Ayes: (5). Nays: (0). Motion carried. None COMMISSION AGENDA PUBLIC AGENDA PETITION NUMBER 3268 was filed by Richard Bergen, 2327 Meadow Lane for the rezoning of Lot 5, Block 6, Oakdale Addition from District "B" (Two -Family Dwelling House District) to District "C" (Apartment District). A motion was made by Commissioner Caldwell, seconded by Commissioner Losik to refer the petition to the Salina City Planning Commission. Ayes: (5). Nays: (0). Motion carried. PETITION NUMBER 3269 was filed by the First Church of the Nazarene for the extension of Kirwin Street east of South Ohio Street for 430 feet from the east curb of South Ohio. The major portion of the street will take property from that owned by the First Church of the Nazarene and the remaining portion from property owned by Wendell V. Knowles, Bernard W. Knowles, and Gerald E. Knowles. This petition includes the curbing, guttering, paving and grading of that street. A motion was made by Commissioner Cooper, seconded by Commissioner Caldwell to refer the petition to the City Engineer and to the Salina City Planning Commission. Ayes: (5). Nays: (0). Motion carried. 1 PETITION NUMBER 3270 was filed by Virgil Lee Bagley, 1018 Millwood Drive, for the rezoning of Lot 9 and the West 50 feet of Lot 10, Block 4, Replat of Garden Home Addition from District "DD" (Office District) to District "D" (Local Business District). A motion was made by Commissioner Losik, seconded by Commissioner Caldwell to refer the petition to the Salina City Planning Commission. Ayes: (5). Nays: (0). Motion carried. A CEREAL MALT BEVERAGE LICENSE APPLICATION was filed by Sirocco Oil Company, d/b/a Site Service Station, 1715 South Ninth Street, Erwin Lin Puckett, Manager. The City Clerk reported the application had been approved by the Zoning Officer and the Police Department, and that the applicant requested approval of the application subject to the final approval of the Health Department. A motion was made by Commissioner Losik, seconded by Commissioner Ashton to approve the Cereal Malt Beverage License application subject to the final approval of the Health Department, and to authorize the City Clerk to issue the license at that time. Ayes: (5). Nays: (0). Motion carried. A CEREAL MALT BEVERAGE LICENSE APPLICATION was filed by Triplett, Inc., d/b/a Triplett Standard Service, 1-70 and US 81 Highways, Joe Hartman, Manager. The City Clerk reported the application had been approved by the Zoning Officer, the Health Department, and the Police Department. A motion was made by Commissioner Losik, seconded by Commissioner Cooper to approve the Cereal Malt License application and authorize the City Clerk to issue the license. Ayes: (5). Nays: (0). Motion carried. Mr. W. 0. Brown, said he would like to ask a question. "In reference to revenue bonds which are being issued by the City, I wonder if you gentlemen know about the Javelin Corporation that is coming in with this retread plant? Do you know about the financial responsibility, any of you?" The Assistant City Attorney replied, "It would be just like any other bankruptcy, we wouldn't have any responsiblity whatsoever. It would be on the bond holders and they would have to absorb it." Commissioner Ashton said not as far as the City is concerned. Mr. Brown said, "I would like to read a little article here, I was told that their stock was listed over the counter. I kept watching for it and watching for it and I didn't find it, and I find that this little article will probably give you an insight to it. 'The Securities and Exchange Commission said it would permit resumption of over the counter trading of securities of Canadian Javelin, LTD, St. John's, Newfoundland, next Wednesday. The SEC suspended thestockon March 7th because of what it called the unavailability of adequate and accurate information relating to negotiations between the Newfoundland Government and the company. Those negotiations involved Canadian Javelin controversial Alignaboard Mill complex that is being built in Stevenville. Ultimately discussion between Newfoundland and Canadian Javelin resulted in an agreement for the acquisition of the Alignaboard complex by the Government. In its latest action, the SEC noted that Canadian Javelin had submitted unaudited financial statements on July 5th and an amendment to that submission on July 27th, and included an audited report. According to the SEC, this report says that auditors believe the financial statements are fairly present. Canadian Javelin financial. position is subject to the eventual determination of the balance to be received from Newfoundland under the agreement. The SEC said attorneys for Canadian Javelin have said the financial statements will be distributed to the company share holders no later than today', which was August 4, 1972. 1 was just wondering what would happen? This company comes in here, which no doubt they will, I understand the bonds have been sold, and they go into bankruptcy. Who takes over this property?" Mayor Weisgerber replied, "The bond holder". Mr. Brown asked, "Who reimburses the bond holder?" Mayor Weisgerber replied, "No one". Mr. Brown asked, "Don't you think this makes the City involved in those bonds?" The Commissioners replied, "No". Mr. Brown asked, "Are you sure of that?" Commissioner Ashton said, "This has been our legal counsel. Maybe Ron would like to elaborate on it a little bit." The Assistant City Attorney replied, "It would be just like any other bankruptcy, we wouldn't have any responsiblity whatsoever. It would be on the bond holders and they would have to absorb it." Mayor Weisgerber said, "This was checked out pretty carefully. We gave the Chamber of Commerce, when they began talking about revenue bonds, some pretty tight guidelines to go by. Our City Attorney, Larry, is gone this evening, but I know he was in Kansas City, and checked with some of these firms that work in the revenue bond field. They had a three or four way conversation with the president of Javelin, the man who is to buy the bonds, and the whole set up so..." Mr. Brown asked, "Those revenue bonds have the Salina City's name on them, do they not?" Commissioner Ashton replied, "They would have to, to be tax exempt." Mr. Brown said, "If our bonds go by default, then our credit rating in this City would go down somewhat, even though it is revenue bonds." Mayor Weisgerber said, "Not really, but still you wouldn't like to see it." Commissioner Ashton asked what their stock was selling for at that time. Mr. Brown replied that it isn't listed. Commissioner Ashton said, "I mean it was listed before that though". Mr. Brown replied, "I haven't any idea. The stock was taken off March 7th. Not permitted to sell this March 7th, and only returned to permit to sell this August 4th, and I haven't seen it appear in over the counter market since." Commissioner Cooper asked if this article came from the Wall Street Journal? Mr. Brown replied, "That is correct, August 4th". Mr. Brown asked, "When these revenue bonds are approved, they are approved by the City Commission, are they not?" Mayor Weisgerber replied, "Yes". Mr. Brown asked, "This is a necessity?" Commissioner Cooper replied, "Yes". Mr. Brown asked, "Do you have certain criteria that is basically set up? Do these people present a bankable thing, or is Salina, in itself, concerned whether or not they present a bankable thing?" Mayor Weisgerber replied, "Oh yes, very much so. A lot of this is checked out by a special group of the Chamber of Commerce; but one of the things in the program is that they be financially responsible and that they handle the sale of their own bonds." Mr. Brown said, "This wasn't checked out very carefully, or they would have found out that this financial situation wasn't so good". Mayor Weisgerber said, "I can't recall any of the figures of that deal. I was at one meeting where they had financial statements of that company and where they were talking about it. John Poos, who is with Kennedy and Coe and was President-elect of the Chamber of Commerce was in on this." Mr. Brown said, "SEC had statements too, but they were not correct as far as this Wall Street Journal article." Mayor Weisgerber said, "I am a little lost on all this. This is something I would have to find out about." Mr. Brown commented, "I just wondered how well they were checked into." Commissioner Ashton said, "Larry sat in on all this to see they met our recommendations as far as the City is involved." The City Manager said, "I really can't tell you how much Larry became involved in the financial arrangements. The City is not financially involved, I know; but I can't speak for Larry, in answer to W. 0,1s question." Mr. Kelley said "Other commissioners that were on at that time, I believe, sitting on the right." Commissioner Caldwell said, "You can't use any names." Mr. Kelley said, "I didn't use any names." Commissioner Caldwell replied, "If I set myself up to safeguard something, I would be expected to be asked questions. You asked for the ball and you got it; so if you are watching the tax dollar, that is who they are coming to. They could come to us, but you set yourself up as a living example of the tax dollar, so naturally they are coming to you because you are going to put up the fuss about it. That is why they are coming to you, sir. That is the only answer I have, maybe that isn't an answer, but that is the only reason they would have to come to me if I set myself as an example, that is where they are coming to ask the questions." Mr. Kelley replied, "Well I'm pretty sure we got no answer there, do you have one?" Commissioner Losik replied, "I can only agree with you Mr. Kelley, is that there have been too many times and I'll say this again, because I've said it in writing, when people did not feel free to come down here to get answers, and had to go elsewhere to find those answers. I think you people are doing a commendable job, that now it is coming back to roost where it should have been years ago. I don't have the answer, I didn't give you a better answer, but I know your tax problem exists and I hope that we can dig up one, that it will be an appropriate and proper answer." Commissioner Caldwell said, "I guess since we are airing all these things now, I don't think we can really tell this group what they are supposed to do. We have people to give us answers, we don't ask them questions." Mr. Brown said, "I would like to correct Mr. Kelley, I think you were a little bit wrong in saying these gentlemen only get a dollar, it is a hundred." Mayor Weisgerber said, "Thanks W. 0., we needed that." Mr. Byrne Kelley said, "We again, I do represent the Taxpayers Association, as does Mr. Uphoff, and we have people come to us repeatedly on numerous things. I think our � I Mr. Brown said, "It was just a question I had in mind, how extensively these people were checked. Not assuming they will, nothing like that of course, if they went into bankruptcy and those revenue bonds went by default with the City of Salina's name, if that would affect us." town feel they are being discriminated against. Now we have gone to several of the Mr. Kelley said "Other commissioners that were on at that time, I believe, sitting on the right." Commissioner Caldwell said, "You can't use any names." Mr. Kelley said, "I didn't use any names." Commissioner Caldwell replied, "If I set myself up to safeguard something, I would be expected to be asked questions. You asked for the ball and you got it; so if you are watching the tax dollar, that is who they are coming to. They could come to us, but you set yourself up as a living example of the tax dollar, so naturally they are coming to you because you are going to put up the fuss about it. That is why they are coming to you, sir. That is the only answer I have, maybe that isn't an answer, but that is the only reason they would have to come to me if I set myself as an example, that is where they are coming to ask the questions." Mr. Kelley replied, "Well I'm pretty sure we got no answer there, do you have one?" Commissioner Losik replied, "I can only agree with you Mr. Kelley, is that there have been too many times and I'll say this again, because I've said it in writing, when people did not feel free to come down here to get answers, and had to go elsewhere to find those answers. I think you people are doing a commendable job, that now it is coming back to roost where it should have been years ago. I don't have the answer, I didn't give you a better answer, but I know your tax problem exists and I hope that we can dig up one, that it will be an appropriate and proper answer." Commissioner Caldwell said, "I guess since we are airing all these things now, I don't think we can really tell this group what they are supposed to do. We have people to give us answers, we don't ask them questions." Mr. Brown said, "I would like to correct Mr. Kelley, I think you were a little bit wrong in saying these gentlemen only get a dollar, it is a hundred." Mayor Weisgerber said, "Thanks W. 0., we needed that." Mr. Byrne Kelley said, "We again, I do represent the Taxpayers Association, as does Mr. Uphoff, and we have people come to us repeatedly on numerous things. I think our salaries are maybe a little Lower than yours, We receive no pay, I think you receive a dollar a year. It isn't a gratifying job, and we are really not 'aginners'; but when people come to us and say 'now the entire air base area has been taken off the tax rolls, isn't that righty Yes that is right. Ad valorem taxes are out. They ask who furnishes police protection? Well, you furnish the Police protection. Okay, if I furnish the police protection, I am in the meat business, it seems there are two or three vendors of some kind in the industrial complex at the air base. The Ad valorem tax payers here in town feel they are being discriminated against. Now we have gone to several of the Airport Authority Board, and we were told 'g.d. it's the law. If you want to do anything about it, get the law changed. That is the law.' But it doesn't really satisfy these people. They have come to us, and these are the problems we encounter, and we come up here now. We would like some answers on these things. These people feel they are being discriminated against. We have had two complaints in the last 30 days by 5 local people who are in the tire business. There was an industrial complex formed out here on 1-70 that involves a Skelly Station, a White Truck Dealership and an International Dealership. There are probably 250 - 350 people involved out there, where these jobs were made available, and there wasn't any publicity or no City help or anything like this. These people are the complainers who come to us. I don't know why they don't come up here to you, but they don't, they come to us and we hear these things and these are things that are real hard to solve. Now maybe you have explainations. I mean, can you rationalize, can you give us an answer why, for instance the City Attorney was employed as counsel and the County Attorney was not? I mean the Commissioners did not have counsel the day they went to Topeka on this air base thing, when $31,000.00 revenue that the County derived from this property was taken off the tax rolls? Do you have an answer to this? Does anyone here know about this?" Mayor Weisgerber replied, "I'm in complete ignorance, that was before my time. This was done before I was on the Commission so I personally really don't know the details of this." Mr. Kelley said "Other commissioners that were on at that time, I believe, sitting on the right." Commissioner Caldwell said, "You can't use any names." Mr. Kelley said, "I didn't use any names." Commissioner Caldwell replied, "If I set myself up to safeguard something, I would be expected to be asked questions. You asked for the ball and you got it; so if you are watching the tax dollar, that is who they are coming to. They could come to us, but you set yourself up as a living example of the tax dollar, so naturally they are coming to you because you are going to put up the fuss about it. That is why they are coming to you, sir. That is the only answer I have, maybe that isn't an answer, but that is the only reason they would have to come to me if I set myself as an example, that is where they are coming to ask the questions." Mr. Kelley replied, "Well I'm pretty sure we got no answer there, do you have one?" Commissioner Losik replied, "I can only agree with you Mr. Kelley, is that there have been too many times and I'll say this again, because I've said it in writing, when people did not feel free to come down here to get answers, and had to go elsewhere to find those answers. I think you people are doing a commendable job, that now it is coming back to roost where it should have been years ago. I don't have the answer, I didn't give you a better answer, but I know your tax problem exists and I hope that we can dig up one, that it will be an appropriate and proper answer." Commissioner Caldwell said, "I guess since we are airing all these things now, I don't think we can really tell this group what they are supposed to do. We have people to give us answers, we don't ask them questions." Mr. Brown said, "I would like to correct Mr. Kelley, I think you were a little bit wrong in saying these gentlemen only get a dollar, it is a hundred." Mayor Weisgerber said, "Thanks W. 0., we needed that." A MOTION was made by Commissioner Losik, seconded by Commissioner Caldwell that the Special Meeting of the Board of Commissioners adjourn. Ayes: (5). Nays: (0). Motion carried. aW D. L. Harrison, City Clerk