Bids to purchase the old library and museum building on Front Street are now being accepted. Offers coming in are a result of an ordinance authorizing the sale of the property, which passed during last night’s Nome City Council regular meeting.
In order to bring fiscal year 2017 City budget projections closer to actual expenditures, the Council amended the General Fund and the Port of Nome capital projects fund budget. Before passing the General fund budget amendment, Council members felt it needed to be tweaked further.
Councilman Mark Johnson thought the revenue coming from the seasonal sales tax increase this summer needed to be included in the amendment.
“If it’s not included in that, we already have said we are going to increase the revenues coming in from the extra 2% sales tax, and if it’s not part of this money, then that means this isn’t correct, either, and that we are actually bringing in more surplus money than what she [Julie Lew] has already budgeted,” explained Johnson.
Nome’s finance director, Julie Lew, wrote a memo to the Council earlier this month stating that the amended General fund budget would include a surplus of over $936,000. As City Manager Tom Moran describes, the Council’s second amendment to the budget last night increased total revenue and surplus.
“Which would make the General Fund revenue $12,660,937.74, and, then, would make the savings $1,236,159.67,” Moran stated after calculating the totals.
Councilman Tom Sparks questioned why $300,000 was added to the total revenue and surplus, to which Councilman Jerald Brown replied.
“$300,000 of additional sales tax because of the 2% additional sales tax and Julie’s comment that she’s expecting around $700,000 of additional tax revenue,” said Brown.
The amendment to the amendment passed along with the rest of the seven City budget ordinances.
After some discussion about how employees’ pensions would be paid for and employees being able to “cash out” on sick leave, the Council approved the Nome Joint Utility System’s labor agreements. Utility Manager John Handeland said if NJUS is given a 180-day notice by an employee, then NJUS will pay out 100 hours of their sick leave. In regards to employees’ pensions, Handeland explained how much the City would have to pay.
“I mean, if you look at the IDW and the 302… their pension is based on a fixed dollar amount. So you’re going to pay that $7 pension cost on a regular time hour or an overtime hour, but you’re not paying $7 plus half of $7,” Handeland reiterated, “so, you’re not paying $10.50 an hour on that overtime, you’re still only paying $7.”
Three separate contracts were also negotiated: one between NJUS and the International Brotherhood of Electrical Workers Local 1547, one with NJUS and the International Union of Operating Engineers Local 302, and the other with Alaska Public Employees Association and NJUS.
Before adjourning the meeting, a memorandum of understanding with James West was approved. The acting Fire Chief has agreed to remain with the Nome Volunteer Fire Department for a period of two years and will receive a $500 stipend per month until the end of February 2019.
The next regular City Council meeting will be held at City Hall on March 27th, after the Iditarod Trail Sled Dog race has come and gone.
