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HomeMy WebLinkAbout10/05/55 October 5, 1955 The regular meeting of the City Council of the City of Bremerton, Washing- ton was held in the court room, city hall at lO:O0 A.N., October 5, 1955. Nay0r H.O. Domstad presiding with Commissioner Cullin, Co~missioner ~heaton, City Clerk NcGowan, City Attorney Holland, City Auditor Vaa, Water Superintendent C.C. Cased and Water Accountant John H.Short in attendance. Also present were representatives of the radio and press and approximately 70 business and professional men. Motion by Mr. Wheaton and Miss Cullln that the minutes of the previous meeting be approved as written, carried. The City Clerk read notice of separation for Ruth Blockhus. Notice of chang® in pay for Orion Ormiston from Patro~lmen 2/c to 1/c at $339.00 per month. Notices of employment for Ronald W. Jones, $~O~per hour, Ruth Blockhus, $1.35 per hour, Nax Herbert Sanders, Traffic Control Naintenance man at $340.00 per month. Motion by Nr. Domstad and Mr. Wheaton to approve the separation, change in pay and the employments, carried. The City Clerk read an application for a pinball location license which will be under the Master License of Anchor Sales, for Stan's Drive-Inn, signed by Hes- ter A. Jones, 2003 East llth Street and approved by Police Chief Lewis. Motion by Mr. Domstad and ~r. Wheaton to approve the application, carried. The City Clerk read payroll vodcher for period ending September 30, 1955 in the amount of $40,214.63, warrant Nos. 59836 through 60089. Motion by Miss Cullin and Nr. Wheaton to approve the voucher, carried. The City Clerk read two letters from"Ci~y Enginee~ Severance, re~.arding the proposed L.I.D. on Nipsic Ave. from E. 17th Street to Cascade Trail and 18th Street on Nipsic Ave. to ~22.56 feet West. This improvement will be the con- struction of five foot concrete sidewalks and concrete curbs and gutters, togeth- er with the doing of any and all other work in connection therewith as may be nec- essa~y to make such improvement a Complete job. The first letter listed the fol- lowing figures: Assessed land value, $~5,270.00; assessed improvement value, ~108,660.00, actual land value, $104,870.00 and unpaid taxes, $V21.44. The let- ter stated that notices are to be mailed on the 6th day of October and the hear- ing will be held on the 2nd day of November, 1955. The second letter gave the preliminary estimate for the improvement of the sbove property, which was in the total amount of $13,110.71. The City Clerk presented a plat of the Sierra Terrace Addition to the Coun- cil for approval. Motion by Mr. ~heaton and ~r. Domstad to approve the plat, carried. ~r. Wheaton mentioned that the State would like the approval of the Council to put ~n a temporary intersection at the beginning of the new Tacoma highway. Motion by Nr. Wheaton and Mr. Domstad to approve the intersection and also instruct the City Attorney to write a letter to the State advising them of the approval, carried. The City Clerk read proposed ordinance relating to and providing for the ex- action and collection of a license upon the act or privilege of engaging in cer- tain business activities, occupations, pursuits snd privileges, amending Section 2 of Ordinance No. 1917, as amended by Ordinance No. 2022 and Ordinance No. 2221. Notion by Niss Cullln and Mr. ~heaton to approve the ordinance on first read- ing carried unanimously. Jack Hollingsworth, who represents a hospital in the city, asked if this in- crease will pertain to hospitals. Mr. Holland stated 'that it will not affect non-profit hospitals. The City Clerk then read three resolutions against the increase from the Public Accountants, Kitsap County Medical Doctors and the Chamber of Commerce. A discussion by a number of the businessmen in town followed the reading of the resolutions, with the following men expressing their opinions. Jack Couse, Couse Not6rs: The automobile dealers are against the increase because there is a great deal of difference in profit. They feel that other meth- ods should be explored. In many of the bu~inesses they do exceptionally high gross to ~he amount of net, and payments to the city are very high. Automobile dealers volume is great compared to their profits. Ray Baker of J.C. Penney Co.: They realize that the City has need for mor® money. Prices in retail stores must be competative. Their prices must be th® same as they are in Seattle and Tacoma if the merchants in Bremerton lose a sale the City loses tax. Basically the business and occupation tax is unfair because of the difference in the profit different stores make. A retail clothing store doesn't make as much profit as a jewelry store for instance. It isn't a fair method of taxing; Everett and Bellingham both have 1/10 of 1%. Therefore they feel that there is no justification for imposing a higher tax on the Bremerton merchants. October 5, 1955 (Con't) Nr. Baker then read a resolution, signed by the retail merchants of the City. He then stated that he thgught we should try to improve Bremerton not destroy it. They are already working under terrific freight rates, the highest in the United States. R. Nonroe Pineo, lumberman: They have discussed the same thing and are of the same opinion. The lumber business is a volume business and 10% of the profit of the yards would be paid within the taxation. ~he same thing is true in the depart- ments of the business. Nr. Pineo stated that in their opinion they think most lum- ber companys would move outside the city limits, where they will be able to operate cheaper. Nr. NcCain, Real Estate: stated that he was not in the meeting representing any certain group add he was not there to give the Council a bad time. He suggest- ed that Bremerton now being a class three fire prevention area, go back to a class five area, thereby eliminating some fire equipment and firemen. Er. NcCain asked if The putting of the burden on just a few was fair. He pointed out that the in- crease in premium would be very small should the City revert to a class five fire city. Mr. Kluge, Kluge ~otors: He has seen a survey which outlined or gave the gen- eral profit of businesses nationally. At present the profit in volume puts the automobile dealers in ~2nd place. Profit nationally was .006% of their volume of sale. If they pay the tax of .005% and by 50% it could not be considered equal tax because their p~ofits are low on the volume of sales. Nerle Budd, President of the Chamber of Commerce~ Since the article in the paper the telephone has been ringing constantly at the Chamber with inquiries from organizations and members. In their meeting yesterday in which the resolution was passed, he wondered if any thought had been given to proposing amendments to the Charter which could make for a more economical operation. He thinks the City Char- ter should be checked over making some provisions in it with that thought in mind. It is their suggestion that the City employ the Washington State Research Council. Mr. Wilson, Labor: He stated that he was in favor of the tax and the labor men are behind him. He skated that they are going to pay the tax in the long run anyway. He said that he is unique in being the only one in favor of the tax. He stated that the men working in the City water and street departments have been ask- ing for a raise for years, finally getting a small one last year but not what they had wanted. They are heartily for the proposed tax. Dr. H.A. Sanson: He is opposed to the ordinance that has been proposed. He has ~een speaking with many of the professional men in Bremerton and they are also opposed to an increase in the tax. Why increase a tax that is already too high. He feels that it is a discriminatory %ax and violates fundamentals of our system. The professional men feel that they should share with the City in their problem but not put a tax against a select few. With.this in mind, speaking for himself and ocher doctors, he is asking that this tax be reconsidered. James NcCallum: He thinks it would be well to review the h~story of the tax~ E. Jennings Beard, Real Estate: In 1952 the Chamber of Commerce did a lot of research for the North West Airlines, because, they were thinking of locating here. The reason that they did nob was because of the business and occupation tax. Cliff Christenson: The Navy Yard is a lot of business in Bremerton but you can't tax ~he Navy Yard. ~r. Sherhart, C and H Foo~liner: He is new in the community and they have enjoyed doing business in Bremerton. The grocery business is a non-profitable business. The profits that they realize are less than other businesses, but they have a 0igger turnover. They do a large volume business. They are trying to pull people in~o the city to shop instead of them shopping outside the city limits. You should keep the dollar to be taxed inside the city limits. Dr. Henderson, Dentist: Read a resolution from the Dental Society. Lou Fehlberg, Real Estate: As president of the Real Estate Board, he feels that this tax is discriminating. Cliff Couse, Couse Notors: He was very much opposed to the business tax as it is based on the ~olume. He is opposed to the tax as it is today. He realizes tha~ ~he city does need more money, but this business and occupation tax based on vol~e isobviously wrong. Personally he would like to see the whole thing abolish- ed and started over again. Julius Gius, Editor, Bremerton Sun: Thinks that any tax that affects any cer- tain group of people by tsx collectors is unfair. Now you are trying to Durn the faucet to open a little wider, and make a t~x larger than at present. He asked when will it be opened wider and ~ade 1%. It is unfair that the people in business are to be ~axed for the maintenance of government. They sould collect the tax from the whole population not just a portion of them. The increase should not be per- mitted. £he tax is a tax for the privilege of doing business. The people who are paying taxes should be making a profit. Niss Cullin read a report from the Bond Buyer indiciating that cities incomes have not kept pace with operation costs. ~r. ~heaton stated that you will not make a profit unless the city can have enough money to do what has to be done and something has got to be done. The bud- get has been cut and they don't see what else can be done unless the business and occupation tax is raised. He hates to see any tax put on but the budget has to be balanced. October 5, 1955 (eon't) Nr. Dunning: Accountants handle a great mejority of the business in Bremer- ton and he has clients that don't make a cent. It is still a discriminating tax and he considers it an unfair burden against the businesses. Jack Couse: Asked if the raising of water rates had been considered, so all the people will be taxed. Cliff Couse: S~ated that he was on the budget committee some years ago and he said that he had Written a letter asking that if the rates for water are raised, couldn't the funds be put in on balancing the budget and he never received an swer. Attorney Holland stated that it was his belief that it is against the. law to use the funds from the water for this. Cliff Couse stated that so far this year he has paid ~558.62 in tax. Nerle Budd: Stated that the chamber is willing to pick a group of men to work as a committee on this problem of tax andt ry to find a solution to this. The following committee was appointed: Barney Thompson, James NcCallum, Lloyd Dunning, James Borgen, Cliff Christensen, Colonel Lawson, Alex 0ttevaera, Jay Engstrom, Cliff Couse and Dr. Nunns. Mr. Domstad stated that he will do everything he can to improve Bremerton. Nr. Vaa stated that it is very u~.gent tkat the committee meet andt ry to a- dopt some solution. The meeting of the business men then adjourned and the Council Nembers re- turned to the Mayor's Office to finish the rest of the meeting. The City Clerk announced that it was the time and place set for the opening of bids on the $1,300,000 Brem®rton Water and Revenue Bonds. Notion by Nr. ~saton and Miss Cullin to approve the opgning of the bids, carried. The City Clerk announced that two bids had been received, and proceeded to read the first, which was from John Nuveen & Company and Associates, enclosed with a c~ertifled check in the amount of $65,000.00. Nuveen Company's bid read as follows: Gross Interest Cost from October l, 1955 to October l~ 1985, $8~6- 102.~0; Discount, $26,000.00 and Net Interest Cost $862,102.50, and they will pay $1,274,O00.00 plus accrued interest to date of delivery for our legally is- sued securities. He then read the 2nd bid from Pacific Northwest Comapny and Associates en- closed with a certified check in the amount of $65,000.00. Pacific Northwest Company's bid read as follows: They will pay $1,279,3~0.00, ~lus accrued in- trest to the date of maturity. Gross interest being $841,~0~00, Total discount ~20,670.O0, Net interest cost of ~861,7V2.00. It was decided that since the bids were so close they would be tabulated again Oy the two companies representatives and City Auditor Vaa, there was slight mistake found in the bid of Pacific Northwest but they were still the low bidder by SZ~0.Z0. Notion by ~r. Wheaton and Mr. Domstad to award the bid to the Pacific North- west Company and Associates, carried. The City Clerk then presented the contract from General Construction covering the construction of the Union River Dam to the Nayor for signature. Notion by Nr. Wheaton and ~iss Cullin to autherize the M~yor and the City Clerk to sign the contract immediately, carried. The City Clerk read a letter from the American ~unicipal Association which invited Mayor Domstad to attend the Z2nd Annual American Nunicipal Congress which will be held in Niami, Fla., from November 27th to the 30th. A discussion by the members followed but no decision was made. Notion by Mr. Vfneaton and ~r. Domstad to adjourn the meeting, carried. APPROVED: 'City Clerk October ?, 1958 Recessed meeting of October 4, 1958 was held in the Court Room of the City Hall on Friday, October ?, 1985. Mayor H.O. Domstad presidin~ with Commissioner Cullin, Commissioner Wheaton, City Clerk McGowan, City Auditor Vas, Water Super- intendent Casad, being present. Representatives of the radio and press and sev- eral business and professional men were also present. The City Clerk read a letter from the Chamber of Commerce in which they sug- gested that a raalistic appraisal be made of the City's operating expenses. They then gave the following recommendations: 1. Adopt the budget in the revised form. 2. Provide for ecognition of the deficit of $6?,000.00 by an entry o~ "Antis- ipated'Revenue from new sources." 3. Establish a study committee to explore all city operations. 4. Institute all know economies in City operations, hold a control over ex- pense factors and strictly enforce existing revenue measures. 5. Review operations in a period of not more than three months. This will still allow time to institute revenue measures when the needs are more definitely known. They believe that these suggestions will eliminate the need for increasing the discriminatory and unfair business and occupation tax. Following the reading of the letter a general discussion ensued with the May- or inviting comments from the representatives of business and the professions who were present. Many of the same arguments in opposition to the amendment of the business and occupation ordinance were again presented. Mr. Gius proposed that the City Council consider placing before the voters a measure designed to raise the necessary revenue by means of a special millage levy. Mayor Domstad stated that if there was no further discussion the meeting would be recessed until 3:00 P.M. APPROVED: City Cl~rk October 7, 1955 A recessed meeting of the City Council met in the Mayor's Office at 3:~0 P.M. with Mayor Domstad presiding and Commissioner Cullin, Commissioner Wheaton, City Clerk McGowan, City Attorney Holland, City Auditor Vas and Water Superintendent Casad being present. Also present were representatives of the press and radio and several business and?professional men of the City. Jack Hollingsworth asked if an answer had been received about the Water Funds from Preston, Thorgrimson and Horowitz. Mr. 'Holland answerad that Thorgrimson is out of town and no opinion could be given until he returns so they will send a written answer some time next week. The City Clerk read Ordinance NO~ 21B8 which is an ordinance of the City of Bremerton approving and adopting the Financial Budget for the several departments of the City Government of the City of Bremerton for the fiscal year 1988 and ap- propriating the amount set forth in said budget to each of the said departments. Mo~ion by Miss Cullin and Mr. ~Wheaton to pass Ordinance No. 2128, carried. The City Clerk read Ordinance No. 2128, "An Ordinance of the City of Bremer- ton levying municipal taxes against all of the taxable property within the city limits of the City of Bremerton for the year 1955 and approving the assessment roll made by the Assessor of Kitsap County therefor, to be collected in the year 1988." Motion by Miss Cullin and Mr. Wheaton to pass Ordinance No. 2128, carried. Mr. Merle Budd asked, now that the budget has been adopted, are there any reductions other than what was taken out the other day. Mr. Vas stated that the budget is $123,180.8~ short. Mr. McCallum asked if the recommendations of the Chamber of Commerse made had been adopted. Mr. Box stated that the five points adopting the budget in the revised form providing for recognition of the deficit of $87,000 by an entry of "Anticipated Revenue from new sources," establish a study committee to explore all city oper- ations, institute all known economies in city operations, hold a tight control over expense factors and strictly enforce existing revenue measures, review oper- ations in a period of not more than three months. This will still allow time to institute revenue measures when the needs are more definitely known; the City a- dopted none of these suggestions. October 7, 1955 (Con't) Miss Cullin stated that she thinks the City Hall C~mulative Reserve Fund should be kept in the budget. They expect the furnace to break down any day and a new furnace will be needed; also a new roof will be needed on the City Hall. Mr. McCallum asked if some $65,000 was not in the fund at the present time. Miss Cullin answered that when she uses the money from the Fund she trys to put it back, but $11,000 was used for the paint Job for the City Hall and $7000 for the Park Department. If it keeps going at that rate eventually there won't be any fund. Mr. McCallum said that it appeared that t he City was not following the recom- mendations made by his committee oS the budget committee. Mr. Domstad stated that some of the things had been done, such as taking the truck out of the Fire Department Budget as they had suggested. Mr. E~eaton said that there wasn't too much difference because he had already cut out the Streets and Bewers $4,000 and $5,000 in materials. He can't take out any more, he has cut out all the unnecessary things that he can. Mr. Domstad stated that a cut had been made in the Park and Recreation budget of $5,000. Mr. Callum was assured that some of the recommended reductions made by the committee were accepted. Mr. McCallum can't understand why the City is trying to put money into a fund that isn't going to be used right now ehen the City needs the money at this time. Mr. Hollingsworth asked if the advice of the budget committee was used. Mr. Domstad answered that there were certain things that we did agree on. Mr. McCallum explained that the decisions of the committee had been practical ones~ and the present committee wants to help the City. He feels that if you have a committee that is working on these things, their recommendations should be given some consideration. Mr. Wheaton said that if the committee will function during the year and come and make~a monthly report he would appreciate it as much as anybody. Mr. Domstad stated that some figures that he had were different than the fig- ures of the committee. Mr. McGowan stated that there is a danger of adopting a budget that is short- er than what we need. There are certain things that you are going to have to face, particularly in the way of capital outlay. Miss Cullin stated that the City Hall Fund is the same as it was when she came into office. Mr. Domstad asked Miss Cullin and Mr. Wheaton what to do about the $12,0000. Miss Cullin said that if it became necessary she would delete the $12,000 item for the cumulative reserve for the City Hall. Mr. Domstad said if there was no further business he would entertain a motion to adjourn. Motion by Mr. ~neaton and Wiss Cullin that the meeting be adjourned, carried. APPROVED: C~ity- C1 erk