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HomeMy WebLinkAbout06-08-99471 Board of Directors Room City Hall - 500 W. Markham Little Rock, Arkansas June 8, 1999 - 4:10 P.M. The Board of Directors of the City of Little Rock, Arkansas, reconvened from the June 1, 1999 regular meeting, with Mayor Jim Dailey presiding. City Clerk Robbie Hancock called the roll with the following Directors present: Directors Pugh, Hinton, Lichty, Cazort, Keck, Wyrick, Kumpuris, Kelly and Adcock - total 9; Absent - Director Stewart - total 1. With a quorum present, Mayor Dailey declared the Board of Directors in session and announced the purpose of the reconvened meeting was to consider Director Lichty's Resolution to address the financial needs of the City of Little Rock (as a result of the failure of the two proposed sales tax issues on the ballot at the special election held May 25, 1999). Consideration was then given to Resolution No. 10,568, entitled: A RESOLUTION TO ADDRESS THE FINANCIAL NEEDS OF THE CITY OF LITTLE ROCK, ARKANSAS; AND FOR OTHER PURPOSES. (Note: The Resolution as presented was entitled: "A RESOLUTION TO ADDRESS THE FINANCIAL NEEDS OF THE CITY OF LITTLE ROCK, ARKANSAS; TO APPOINT AN EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS TO REVIEW FINANCES; AND FOR OTHER PURPOSES. ") Director Lichty explained his proposal, stating this was born out of the election on May 25, 1999, in which the citizens voted against the two tax proposals for the City of Little Rock (see Ordinance Nos. 17,979, 17,980, and 17 981), and the statement made that the City has no "Plan B." He took that to mean there is no contingency plan, and to him that became the top priority. He felt the Board should put a moratorium "on itself' against any new kind of major initiative and try to concentrate on the 35 -40 items listed on the City Manager's Administrative Report and try to resolve those. The Board should work with staff and concentrate on the financial picture of the City of Little Rock due to the projected deficit of over $4 million for the year 2000, and over $6 million for the year 2001. City Manager Cy Carney stated there are other alternatives that may be appropriate at this time. When Staff prepared the 1999 Budget, we outlined a number of alternatives related to revenues and expenditures in that budget. He suggested that we move very quickly on some alternative ideas related to the deficit in preparation for the year 2000 budget, issues related to expenditure reductions as well as potential revenue sources. He said the First Quarter 1999 Financial Report would be distributed during the meeting and he hoped that by mid -July, staff would have a pretty good plan in place to deal with the entire budget, particularly the deficit portion. He asked the Board to give staff a couple of weeks to look at alternatives before forming a task force as recommended by Director Lichty. Director Keck said the Board needs to step back and look at how it operates as a Board. He suggested that the Board meet on a regular basis to discuss financial issues. Mayor Dailey said he would like for the Board to become familiar with every aspect of finances. Director Wyrick had questions about monies allocated for specific purposes. One year the Board allocated $1.2 million from the Economic Development Fund for the Clinton Presidential Library. That did not get allocated and she did not know what happened to it. She was told it was used to balance the budget. She felt if the Board earmarked funds for certain things, someone should be able to tell her what was done with the money and why it wasn't used for the purpose designated. Another issue is the $1 million for the Children's Zoo. Is the money still there? She felt the Board should be kept informed as to the use of those funds. That is part of the accountability for the staff and for the Board of Directors to know where funds are going. Does this Resolution address that topic? Director Lichty said it becomes a 1 472 Minutes - Reconvened Meeting June 8, 1999 conduit to get those kinds of questions answered. Mr. Carney responded that as to the Economic Development Fund, as the debt was issued for the combination Parks & Recreation Revenue Bond Project for Zoo, Golf, and Presidential Library Park, $500,000 was taken from the $1.2 million and set aside in the Reserve Fund as required for the financing of the project. The balance of the $1.2 million that was not encumbered was used at the end of the year in the general fund to balance the budget. Mr. Carney said he would provide the Board with the details of the funds designated for the Children's Zoo. Director Adcock asked that all information regarding finances be distributed to all Board Member, not just a committee. Director Hinton recommended doing quarterly meetings or retreats to get involved in finances. Director Cazort said the Board had talked about some type of committee, but not about the structure of that committee. He felt that a Committee for Finance would be a duplication of effort, because the budget would not be adopted without coming before the full Board for discussion, which would create a double budget discussion. Director Keck suggested amending the Resolution to state the the Board of Directors would serve as a committee of the whole to review city finances on a consistant basis. Director Adcock wanted to wait two weeks as requested by City Manager Cy Carney. Director Kumpuris said our budget is balanced for this year; but we need to start putting away money for the year 2000. It is prudent that we make some alterations in this budget, if possible, to help cushion the blow in year 2000. In this form of government, the Board is a policy making group. Recommendations should come from the professional staff. Director Keck then moved to amend the Resolution to the extent that the Executive Committee would be the full body of the Board of Directors, and to have a finance meeting at each Agenda Session for the balance of the year, and Director Kumpuris seconded the motion. After further discussion, City Attorney Tom Carpenter suggested the Resolution be amended to provide for a new Section 2 which would now read: "The Little Rock Board of Directors agrees to formally discuss City finances at each Board Agenda Meeting and to work closely with the City Manager and Staff in the examination of all City operations prior to the formation of the proposed 2000 annual budget for the City of Little Rock" Director Keck moved to amend the Resolution as stated by Mr. Carpenter. Director Kumpuris seconded the motion, which was adopted by a vote of 9 ayes, 1 no (Adcock) and 1 absent (Stewart). Mr. Carpenter noted that the title would be changed to strike the phrase "to appoint an Executive Committee of the Board of Directors to review finances;" and Director Lichty noted that Section 1 should be changed to reflect the City Manager's Board Request Summary dated June 1, 1999, which is the latest and most current, instead of May 25, 1999. The Resolution, as amended, was then read. Director Kelly said he was aware that the Planning Commission will be before the Board of Directors to expand and continue the Smart Growth Initiative and will probably be asking for additional funds and he wanted to make sure this Resolution would not jeopardize that. He had been assured that it would not and he wanted to be sure that was the understanding of the other Board Members. He felt this could be dealt with by a directive to the City Manager without going through this formal action and thought the Resolution was unnecessary. The Resolution, as amended, was then adopted by the following voice vote: Ayes - Directors Pugh, Lichty, Cazort, Keck, Wyrick, Kumpuris, and Mayor Dailey - total 7; Noes - Directors Hinton, Kelly and Adcock - total 3; Absent - Director Stewart - total 1. At the request of Mayor Dailey, Mr. Carney reported on the conversation with Pulaski County Judge Villines regarding the Pulaski County Jail and the additional 177 beds that are now available but not occupied due to the lack of financing for staff and operations. The Judge has made a proposal to split the cost among the jurisdictions - the cities and the county. Mr. Carney said he and Police Chief Caudell felt the City really should participate for the rest of this year. It sounds like a new initiative but is really a continuation of an existing issue. 2 Minutes - Reconvened Meeting June 8, 1999 There being no further business to be presented the reconvened meeting was adjourned at 5:05 o'clock P.M. to meet again in regular session on Tuesday, June 15, 1999, at 6:00 o'clock P.M. ATTEST: City Clerk Robbie Hancock 3 PROVED(: yor Jim Dailey 47%3