Budget and Finance Committee

Summary

Meeting Overview

The Budget & Finance Committee met on February 25, 2014, at 1:00 p.m., with Ellinger presiding. The committee addressed seven agenda items, including approval of the previous meeting's summary, review of the monthly financial report, and consideration of several fiscal matters. The committee took 11 votes during the meeting and heard 21 public comments. Five of the seven agenda items were approved, including the January 28, 2014 Committee Summary, Refunding Urban Services Ad Valorem Taxes, TIF Roles & Responsibilities, FY 15 Links, and Items Referred to Committee. Two items were presented for informational purposes: the Monthly Financial Report and the Police & Fire Pension Update.

Attendance

Present: Ellinger, Stinnett, Gorton, Kay, Ford, Beard, Farmer, Scutchfield, Henson

Absent: Mossotti

Late: None

Votes and Decisions

December 10, 2013 Committee Summary 1:00 Motion by Beard, seconded by Gorton, to approve the December 10, 2013 committee summary. Passed unanimously.

Police and Fire Pension Update Postponement 1:00 Motion by Stinnett, seconded by Scutchfield, to postpone item #4 (Police and Fire Pension Update) to the next meeting due to lack of information. Passed unanimously.

Parking Fines Agenda Reordering 1:00 Motion by Kay, seconded by Gorton, to move item #5 (Parking Fines in Handicap Zones) to the top of the agenda for public comment. Passed unanimously.

Handicap Parking Violation Fine Range 4:00 Motion by Henson, seconded by Scutchfield, to set the fine for handicap parking violations at a minimum of $150 up to $250. Passed unanimously.

Amendment to Handicap Parking Fine 4:00 Motion by Gorton, seconded by Beard, to amend the handicap parking violation fine to $250. Passed by roll call vote, 8-1. Voting in favor: Ellinger, Stinnett, Gorton, Kay, Ford, Beard, Scutchfield, and Henson. Voting against: Farmer.

Signage Approval 4:00 Motion by Farmer, seconded by Gorton, to approve signage as submitted in the presentation. Passed unanimously.

Removal of Parking Fines from Committee Referral List 4:00 Motion by Gorton, seconded by Scutchfield, to remove the parking fines issue from the committee referral list. Passed unanimously.

Agenda Item Removals [timestamps: 1:19:42, 1:20:14, 1:20:45] Motion by Kay to remove the TIF roles and responsibilities item from the agenda. Passed unanimously.

Motion by Stinnett to remove the debt management policy review from the agenda. Passed unanimously.

Motion to remove the increased parking fees or fines item from the agenda. Passed unanimously.

Adjournment 4:00 Motion by Gorton, seconded by Farmer, to adjourn. Passed unanimously.

Budget and Financial Actions

The meeting included approval of two grant allocations totaling $20,000 to LexPark for handicap parking compliance and infrastructure improvements.

Handicap Parking Signage Compliance Grant

A grant of $10,000 was approved to provide funding for businesses to comply with new handicap parking signage requirements and associated fines. This funding was directed to LexPark.

Handicap Zone Striping and Signage Installation

An additional grant of $10,000 was approved for the installation of blue striping and signage for handicap parking zones. This funding was also allocated to LexPark.

Both grants support the implementation of handicap parking standards and improvements to accessibility infrastructure.

Public Comment

Handicap Parking Violations and Fines

Kristy Stambaugh presented recommendations from the Commission for Citizens with Disabilities [0:01:30], proposing enhanced signage stating "no parking anytime" in wheelchair loading zones, blue striping, and increased fines from $15 to $150 or more. She noted that a $10,000 grant from LexPark would assist businesses with compliance.

Donnie Wittler supported the proposal [0:01:30], emphasizing the need for better signage and education to inform out-of-town drivers of penalties.

Gary Means clarified [0:04:00] that state traffic violations carry a $250 fine while city parking violations are currently $15, noting the proposed increase would align with state levels. He suggested allowing towing for repeat offenders.

Clarke questioned [0:04:00] why fine amounts were not posted on signs, arguing out-of-town drivers need visible penalty information. Stambaugh responded that the state citation of $250 is already public.

Myers suggested [0:04:00] raising fines to $250 or $300 and raised concerns about illegally parked cars blocking fire trucks.

Farmer questioned [0:04:00] the pricing structure and expressed concern about Council's limited control over increases, though he supported handicap violation increases.

Henson supported [0:04:00] increasing fines for more frequent violations and requested clarification on differences between fine categories.

Scutchfield raised concerns [0:04:00] about new citations being issued without prior notice and emphasized better communication with affected parties.

Gorton asked [0:04:00] whether fines could be set at $250 without a range and whether towing signage could apply to handicap zones.

Ellinger suggested [0:04:00] adding the fine amount to sign bottoms for improved visibility.

Other Topics

Charlie Martin explained [0:18:50] a policy to cease adding streetlight taxes until lights are installed, with a backlog of 470 fixtures to be cleared by 2015 through proactive coordination with KU.

Council Members Ford, Stinnett, Clark, and Scutchfield asked clarifying questions [0:23:51–0:35:49] regarding streetlight installation timelines, backlog prioritization, and KU coordination processes.

Henson questioned [0:45:09] street sweeping schedules in established neighborhoods and debris accumulation concerns.

Kay and Stinnett inquired [1:00:22–1:03:06] about Police and Fire Pension Reform financial impacts and audit frequency.

Henson asked [1:15:56] about TIF caps and state-imposed limits.

Gorton inquired [1:18:05] about standardized templates for committee reports.

Benji indicated [1:22:59] that Wellness Center lease options are under evaluation with a presentation planned for the next meeting.

Contested Items

Refunding Urban Services Ad Valorem Taxes

Council members engaged in a heated discussion regarding delays in installing streetlights in new developments. The primary frustration centered on the extended timeline for these installations, which created a need to refund urban services ad valorem taxes to affected parties. Council members emphasized the necessity for improved coordination with KU and called for greater accountability in the process. The discussion highlighted systemic issues with project execution and the financial implications of service delivery delays.

Parking Fines for Handicap Zones

The council considered a proposal to establish a $250 fine for parking violations in handicap zones. While the committee unanimously approved the motion, Councilmember Farmer dissented from the broader council vote. Farmer's opposition centered on two key concerns: the council's limited control over the pricing structure and worries about potential disproportionate impact on businesses. Despite the committee's unanimous support, Farmer's objection reflected broader concerns about the authority and fairness of the fine structure.

January 28, 2014 Committee Summary

1:00

The committee reviewed and approved the summary from the January 28, 2014 meeting. Key speakers during this discussion included Beard, Stinnett, Kay, and Gorton.

The summary covered three main actions from the prior meeting:

• Approval of prior meeting minutes — The committee moved to approve the minutes from the previous session.

• Police and Fire Pension Update postponement — The committee voted to postpone the Police and Fire Pension Update due to insufficient information being available at that time.

• Parking fines agenda adjustment — The committee moved the parking fines issue to the top of the agenda for prioritized discussion.

The January 28, 2014 Committee Summary was approved by the committee.

Monthly Financial Report

Commissioner O'Mara and staff presented the monthly financial update covering the first seven months of FY 2014. 2:01

Presentation Highlights

The report highlighted several positive financial trends, including improvements in unemployment and revenue growth. The presentation noted an $8.6 million net variance for the period reviewed.

Council Concerns

Council members, including Lueker and Cook, raised concerns during the discussion. Specifically, they expressed worry about the size of the fund balance and the extent of deferred maintenance issues facing the organization.

Council members urged the committee to consider using available funds to address critical maintenance needs in the present rather than deferring these expenditures further.

Outcome

This agenda item was presented for informational purposes.

Refunding Urban Services Ad Valorem Taxes

The committee discussed a new policy approach to address refunds related to urban services ad valorem taxes, specifically regarding streetlight installation and taxation 18:50.

Policy Change

The committee proposed stopping the addition of streetlight taxes until the lights are actually installed. This policy shift aims to eliminate future refunds by ensuring residents are not charged for services not yet provided.

Current Backlog

A significant backlog of 470 streetlight fixtures was identified as needing installation. The committee set a goal to clear this backlog by 2015.

Key Discussion Points

Council members Martin, Stinnett, Ford, Clark, and Scutchfield participated in the discussion. Key concerns included:

• The need for proactive coordination with KU (Kansas City Power & Light or similar utility) to ensure timely installation of fixtures
• The importance of transparency with residents regarding when taxes would be assessed and when services would be provided
• The necessity of addressing the existing backlog efficiently

Outcome

The proposal was approved by the committee. The new policy represents a shift toward aligning tax collection with actual service delivery, intended to prevent the accumulation of refund obligations in the future while addressing the current installation backlog.

Police & Fire Pension Update

Scott from Cavanaugh and McDonald's presented an update on police and fire pension reform 47:39. The presentation highlighted significant progress in reducing the plan's unfunded liability, which decreased from $296 million to $161 million.

Key Findings

The presenter outlined projected annual required contributions ranging between $21.5 and $22.5 million for the next 30 years. This projection takes into account various factors affecting the pension plan's financial health.

Discussion Topics

Council members Kay and Stinnett participated in the discussion, which focused on several factors influencing the pension plan:

• Impact of payroll growth on contributions and liabilities
• Effect of retirements on the plan's financial position
• Influence of market movements on unfunded liability

Outcome

This agenda item was informational in nature, providing the council with an update on the status and financial projections of the police and fire pension plan.

TIF Roles & Responsibilities

Council Member Kay initiated a discussion regarding the process for modifying or withdrawing Tax Increment Financing (TIF) agreements. 1:07:02

Mr. Atkins provided an explanation of the respective roles and responsibilities of the administration, the state, and developers in TIF decisions. During the discussion, a memo was presented that clarified the extent of council authority in later-stage TIF decisions, indicating that council powers are limited once TIFs reach certain stages of development.

Council Member Barbary also participated in the discussion.

Following the presentation and discussion of these roles and responsibilities, the committee agreed to remove this item from the agenda. The agenda item was approved.

FY 15 Links

1:16:58

The committee reviewed the proposed FY 15 committee links during this agenda item. Key speakers in the discussion included Paul, Gorton, and Henson.

The review focused on two primary areas: chair continuity and the implementation of a standardized reporting template for the coming fiscal year. The committee examined the proposed structure for maintaining leadership roles and discussed how a uniform reporting approach could improve consistency across committee operations.

No changes were made to the proposed FY 15 links structure. The committee determined that the current framework was appropriate and agreed to proceed with the existing arrangement for the fiscal year ahead.

The outcome of this discussion was approval, allowing the committee to move forward with the FY 15 links as presented.

Items Referred to Committee

1:19:11

The committee reviewed its referral list during this agenda item, with Kay, Stinnett, and Gorton participating in the discussion.

Items Removed from Referral List

The committee removed several items from the referral list:

• Parking fines issue
• Debt management policy review
• Increased parking fees

Items Confirmed for Future Review

The committee confirmed that two items would be revisited at the next meeting:

• Wellness Center lease
• LexArcs financial support

Outcome

The referral list review was approved.