08-07-1972 MinutesCONSOLIDATEASALINA
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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.
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"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.
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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.
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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."
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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."
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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