12/09/2004 Work SessionASSEMBLY WORK SESSION
December 14, 2004 - 7:30 p.m.
Borough Conference Room
AGENDA
CITIZENS' COMMENTS (limited to three minutes per speaker)
ITEMS FOR DISCUSSION
1. Mission Lake Tide Gate
2. Long Term Funding for Schools Study
3. Manager Hiring Process
PACKET REVIEW
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLYMEMBER COMMENTS
Items for future Assembly work session discussion:
Airport Car Crusher Facilities Fund Gravel
Landfill - Transfer Stations - Garbage in General
Management Review of Borough Operations
Meeting with P &Z - Appeal Ordinance Changes
Noise Ordinance
ON LEAVE
Nielsen - November 23- December 27
Selby - December 8 -10
Ranney - December 8 -10; 21 -28
Branson - January 10- February 1
Anderson - January 25 -31
Williams - February 2 -14
ASSEMBLY CALENDAR
December 2004
14- 7:00 pm Parks and Recreation Committee Meeting - SD /CR
7:30 pm Assembly Work Session - CR
7:30 pm City Council Regular Meeting - AC
15- 7:30 pm Planning and Zoning Commission Regular Meeting - AC
16- 7:30 pm Assembly Regular Meeting - AC
20- 7:00 pm Womens Bay Service Area Board Meeting - WBFH
7:00 pm Board of Education Regular Meeting - AC
24- CLOSED Borough Offices Closed in Observance of Christmas
28- 7:00 pm Parks and Recreation Committee Meeting - AC
7:30 pm Assembly Work Session - CR
30- 7:30 pm Assembly Work Session - CR
31- CLOSED Borough Offices Closed in Observance of the New Year
,.January 2005
3- 7:00 pm Board of Education Work Session - SD /CR
6- 7:30 pm Assembly Regular Meeting - AC
11- 7:00 pm Parks and Recreation Committee Meeting - CR
7:30 pm City Council Work Session • SD /CR
12- 7:30 pm Planning and Zoning Commission Work Session - CR
13- 7:30 pm Assembly Work Session - CR
7:30 pm City Council Regular Meeting - AC
17- CLOSED Borough Offices Closed in Observance of Martin Luther King Day
7:00 pm Board of Education Regular Meeting - AC
18- 7:30 pm Assembly /City Council Joint Work Session - CR
19- 7:30 pm Planning and Zoning Commission Regular Meeting - AC
20- 7:30 pm Assembly Regular Meeting - AC
25- 7:00 pm Parks and Recreation Committee Meeting - CR
27- 7:30 pm Assembly Work Session - CR'
27 -29 SWAMC Anchorage
February 2005
3- 7:30 pm Assembly Regular Meeting - AC
7- 7:00 pm Board of Education Regular Meeting - SD /CR
8- 7:00 pm Parks and Recreation Committee Meeting - CR
7:30 pm City Council Work Session - SD /CR
9- 7:30 pm Planning and Zoning Commission Work Session - CR
10- 7:30 pm Assembly Work Session - CR
7:30 pm City Council Regular Meeting AC
16- 7:30 pm Planning and Zoning Commission Regular Meeting - AC
17- 7:30 pm Assembly Regular Meeting ' = AC
21- 7:00 pm Board of Education Regular Meeting - AC
22- 7:00 pm Parks and Recreation Committee Meeting - CR
7:30 pm City Council Work Session SD /CR
24- 7:30 pm Assembly Work Session- CR
7:30 pm City Council Regular Meeting AC
MISSION LAKE TIDE GATE CONTRIBUTION
Construction Costs = 55,000
A. $10,000 KIB Contribution Option
Assessed Value 2,455,600
Cost to residents 45,000
Interest Rate 0.04
Number of years 20
Payment $3,311.18
Mill Rate 0.00135 1.35 mils
B. $15,000 KIB Contribution Option
Assessed Value 2,455,600
Cost to residents 40,000
Interest Rate 0.04
Number of years 20
Payment $2,943.27
Mill Rate 0.00120 1.20 mils
C. Reduction to 1 mil reduction ( $ 20,000 KIB Contribution)
Assessed Value 2,455,600
Cost to residents 35,000
Interest Rate 0.04
Number of years 20
Payment $2,575.36
Mill Rate 0.00105 1.05 mils
School District Long -Term Funding Task Force Report
November 18, 1996
Robin Heinrichs, Chair
Lacey Berns
Julie Bonney
Randy Busch
Robin Killeen
Alice Knowles
Woody Koning
Jack L. McFarland
William Murdock
Peter Probasco
Jeff Stephan
Background
This task force was established by the Kodiak Island Borough Assembly through Resolution
Number 96 -12. In addition, Resolution Number 96 -12 approved the fiscal year (FY) 1997 local
contribution to the School District budget. The task force was charged to study and identify critical issues
related to funding for the Kodiak Island Borough School District (KIBSD) and present a long -term funding
approach that would ensure appropriate and predictable funding for the operation of public schools within
the Kodiak Island Borough.
Specifically, the Task Force was assigned to:
1. Study and develop a prospectus on future financial support for education at the
state and federal level.
2. Project the level of required local financial support for education in view of the
prospectus.
3. Identify funding sources/mechanisms for local support, e.g., mill equivalency,
sales tax, etc.
Executive Summary
The Kodiak Island Borough Assembly should increase the property tax mill rate from the current
6.75 mills to 8.8 mills for FYI998 through FY2002. Also, the Assembly should place the issue of a sales
tax on the November, 1997 ballot. If this ballot initiative is approved, the Assembly should institute a 2
percent area -wide sales tax effective January 1, 1998.
The reasons for these actions are as follows:
1. Increased student enrollment.
2. Declining federal and state revenues.
3. Rise in property values no longer keeping up with increases in expenditures.
4. Desire to diversify Borough revenue sources.
5. Effect of inflation on expenditures.
6. Effect of salary structure on expenditures.
Current Situation
Both the Kodiak Island Borough and the Kodiak Island Borough School District utilized a "use of
fund balance" line item to balance their budgets for FY1997. The Borough used $918,200 and the School
District used $718,859 for a total of $1,637,059 for FY1997. This was based on a mill rate of 6.75 mills (a
mill is equivalent to one tenth of one percent). In order to have balanced the FY1997 budget without using
fund balance, a mill rate of 8.9 mills would have been required.
Facts and Assumptions
The first step for the task force was to gather information. Some of the information was factual in
nature, but some assumptions had to be made. The task force attempted to base its assumptions on factual
information to the fullest extent possible and then looked to the most knowledgeable source or sources.
The information gathered was listed in this section. Included were any assumptions made and the
basis for those assumptions.
Following are the areas the task force concentrated on:
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
* Property Tax Revenues
* Severance Taxes
* Sales Tax
* Comparative Borough Per Capita Tax Amounts
* Educational Endowment Fund
* Student Population
* Federal and State Funding
* KIBSD Expenditures
Property Tax Revenues. The task force assumed little increase in property values through FY2002. The
primary Borough revenue source is property tax. The Borough has a property tax on both real and personal
property, but the personal property tax on boats is capped at $15.00 per boat. The Borough has realized an
increase in income each year from property tax revenues due to an increase in assessed value. The
following chart shows the ten year history of assessed values with a projection for the next five years.
'
Chart 1
Actual and Projected Assessed Values
$- I I I I I I I I I I I I I I
CO O) O N M lr) CO r` p 0) O N
N CO O) O O C , rn O 0) 0c) o O 0 0
0) CD 0) CZ 0) 0) 0) 0) 0) 0) Cr) 0 0 0
N N N
3
Fiscal Year
As shown in Chart 1, assessed values showed a dramatic increase from FY1989 to FY1995. In
recent years, these values have started to level off beginning in FY1996. The Borough Assessor has
projected that these values will remain somewhat constant through FY2002. The task force found that any
increase in assessed value will not be enough to keep up with inflation.
The following table shows some of the actual data used to develop Chart 1. It is important to focus
on the actual dollar amount of increased tax revenues due to projected increases in assessed values for
FY1998 through FY2002. These increases are minimal at best. In most cases, they are less than the salary
and benefits of one full time employee. Note: this is assuming that the mill rate is kept at 6.75 mills through
FY2002.
Fiscal
Year
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
18.00
16.00 -
14.00 -
12.00 -
10.00 -
8.00 -
6.00 -
4.00 -
2.00 -
0.00
Assessed
Value
$428,764,585
436,800,264
479,942,347
516,304,869
559,359,084
577,203,640
613,078,473
634,756,845
640,462,576
654,134,651
667,217,344
677,225,604
683,997,860
690,837,839
697,746,217
15.53
Table 1
Mill Tax Levy Difference
Rate
4.51 $1,933,728
4.50 1,965,601
4.50 2,159,741
4.50 2,323,372
5.50 3,076,475
5.50 3,174,620
5.50 3,371,932
6.75 4,284,609
6.75 4,323,122
6.75 4,415,409
6.75 4,503,717
6.75 4,571,273
6.75 4,616,986
6.75 4,663,155
6.75 4,709,787
The only option the Kodiak Island Borough has for increasing property tax revenues over the next
five years is to increase the mill rate. As stated earlier, the Borough needed a mill levy of 8.9 mills to have
a balanced budget for FY1997. For comparative purposes, even at 8.9 mills, the Kodiak Island Borough
would have one of the lowest mill rates in the state, as shown in Chart 2. (The percentage next to a
Borough's name indicates that Borough's sales tax in addition to their basic property tax mill rate.)
Chart 2
Various Mill Rates -Other Alaskan Boroughs
14.55
922 9.12
7.50
H p f. PI
< o a Z
f x z x
Municipality
4
6.75
$31,873
194,139
163,631
753,103
98,145
197,312
912,677
38,514
92,287
88,308
67,556
45,713
46,170
46,632
6.00
5.46
s e
Severance Taxes. The Kodiak Island Borough levies a severance tax on natural resources that are mined
or harvested from within the Borough. These natural resources include fishing and logging, with mining a
distant third. The severance tax rate is the same as the property tax rate. In FY 1997, the Borough
budgeted severance tax revenue at the rate of $112,000 per mill. The following chart shows the budgeted
components of severance tax in the FY 1997 budget.
130,000,000
125,000,000 —
3
8 120,000,000 -
C
115,000,000 —
110,000,000 —
105,000,000
5115 ,318,519
Chart 3
Severance Tax Composition
Logging
31%
Mining
1%
Fish
68%
In FY 1997, the total value of severed resources was budgeted at $115,318,519. The task force
assumed the value of severed natural resources would increase at 2 percent per year over the next five years.
If this increase is realized, the total value of severed resources will be $127,320,963 per year by FY2002, as
shown in Chart 4.
Chart 4
Value of Severed Resources - Next Five Years
5117,624,889
$119,97,387
5
5122376,934
5124,824,473
5127320,963
1997 1998 1999 2000 2001 2002
Fiscal Year
Sales Tax. It was assumed that revenue generated from a sales tax would be $1.2 million for each percent
of sales tax. It was anticipated that sales tax revenues would grow at a rate of 2 percent per year. This
revenue source would be subject to more extreme fluctuations from year to year as compared to our other
revenue sources. Because of these fluctuations, this would be the most difficult revenue source to predict.
Comparative Borough Per Capita Tax Amounts. The Kodiak Island Borough has the lowest per capita
taxes of all the Boroughs listed in Chart 5. There are several combined city and borough governments in
the State of Alaska, but it is difficult to compare tax rates with these entities because of the variation of
services provided. Therefore, only boroughs which were not combined with cities were used in the
analysis.
The following chart shows that the Fairbanks North Star Borough has the highest per capita tax
amount at $1,221 with the Kenai Peninsula Borough following at $1,019. The per capita taxes of these
boroughs are more than double that of the Kodiak Island Borough.
$1,019
$760
$742
$403
Kenai Mat-Su Ketchikan Kodiak
The Kodiak Island Borough could triple local taxes and still tax less than other boroughs. While
the levels of services provided by other boroughs may vary, Chart 5 still shows a dramatic difference in
local taxing.
Educational Endowment Fund. The Kodiak Island Borough established an Educational Endowment
Fund as a nonexpendable trust fund, which means the earnings of the fund, but not the corpus, may be spent
on education. The anticipated source of funds for the Educational Endowment Fund is 1 percent of an area -
wide sales tax. Other monies can be appropriated into this fund by the Borough Assembly. Once a balance
of $25 million is reached, the 1 percent sales tax would be rescinded.
6
Student Population. The next assumption was the increase in student population at a rate of 2 percent per
year over the next five years. This was based on student enrollment figures over the past 15 years with no
known factors changing this estimate. The FY1997 estimate is 2,834 students. By FY2002, we expect to
have 3,127 students, if our student population continues to grow at the current rate.
Chart 6
Actual and Projected Student Total
Federal
State
Total
2a00 - 2946
2614 2632
zoo , 2334 2328
2832 2773 2,834 2832
3.045
3,127
3,055
1,000 I I I I I I I I I I I I I I
1988 1989 1990 1991 1992 1433 1993 1995 1996 1997 1996 1999 2700 2D1 2032
Ils®1 Yea.
Federal and State Funding. The task force assumed federal funding of KIBSD would decline and state
funding would not keep pace with increases in expenditures. At the present time, the State of Alaska is
reviewing the current foundation formula for state school district support. The state has devised several
new formulas for educational funding, but it is unknown whether or not the current formula will be
replaced. Based on the assumption that the current formula will remain and the student population will
increase as shown in Chart 6, the following table was developed to show the predictions for federal and
state school district support for the next five years.
Fiscal Year 1998
$21,595,171
Fiscal Year 1998
$1,948,536
13.830.538
$15,779,074
Fiscal Year 1999
$1,845,981
14.195.418
$16,041,399
Fiscal Year 2000
$1,743,427
14,581,920
$16,325,347
7
Fiscal Year 2001
$1,640,872
14.975.865
$16,616,737
Fiscal Year 2002
$1,538,318
15,377,400
$16,915,718
KIBSD Expenditures. The task force assumed that beginning in FY1998 KIBSD expenditures would
increase $726,288 per year through FY2002, or approximately 3.4 percent. This estimate was based on an
analysis of past KIBSD budgets.
Fiscal Year 1999 Fiscal Year 2000 Fiscal Year 2001 Fiscal Year 2002
$22,321,459 $23,047,747 $23,774,036 $24,500,324
This level of expenditures would maintain the current (FY1997) KIBSD educational program. No
major cuts would be made, nor would it allow for any major expansion of services. Should cuts be
necessary, existing class size, electives and exploratory programs extra - curricular activities (to include
travel on and off island), staff development, supplies (to include textbooks), equipment, technology, library
aides, specialists such as music teachers, teacher aides, alternative education programs, etc. could be
affected.
25,1201002
5,0341200
21,W71
0E47
Kf 1Ual Eve13dns midi WI Be Brad
22,,321,459
FY FY FY FY FY
19)8 19A 310 3121 3172
Fiscal Y
Financial Models
The task force developed three basic financial models from this data. One is filling the fiscal gap
strictly with increased property tax revenue. The next is using a Borough sales tax to diversify Borough
sources of revenue. The last model includes deposits to and earnings from a trust fund.
These models were built around the General Fund of the Kodiak Island Borough and included the revenues
and expenditures of the Kodiak Island Borough School District. This way, we looked at these two funds as
one and saw how declining federal and state school district revenues affected these two organizations (see
Chart 7).
8
23,0g747
23714026
■ lnrel
■ Fodaal
■ State
This model does not include a sales tax and shows that the mill rate would have to be set at 10.5
mills to balance the Borough budget, which includes the KIBSD, from FY1988 to FY2002.
Revenues_
1 Pro mert Taxes
Severance Taxes
Sales Tax
Penalties & Interest
PILT
National Wildlife Refuge
1 _State Revenues
KIBSD Federal
KIBSD State
: Fees
r Interest
Use of Fund Balance - KB3
Use of Fund Balance - KIBS
Financial Model One
Budget Balanced Through Increased Property Taxes
FY1997 FY1998 FY1999 FY2000 i � FY2001 FY2002
$ 5.340,560 $ 6,333,545 $ 6,697,169 $ 7,092,458 $ 7 00,513 L $ 7788,739,,
756,0001 1,116,552 1,186,471 , ' 1,268,942 1 1.337,166 4 1,421,247 '...,
160,000 160,000 _ 160.000 160000} 160.000 160,000
427,660 430,000 445,000 445,000
445 000 445.000
230,000 *' 280,000 320.000 320.000 320,000 320.000
1.720.280 1,400.000 1,350,000 1,300,000 ; 1250.000 1 250,000
1,743,427 1640,872 1 53$318
2,051 090 1,948,536 1,845,981
13,707,704 13,830,538 14,195,418 14,581,920 14975,865 15,377,400
60,3001_ _. 60300._ 60,300 _ -.. 61.000:_ 61.500 61,500'
-.. 400,000
918.20D 400,000
40D,000 400,000 400,000 { . _.
D
718,859 1'
1 {.._._. 500001 50,000 50,000
$ 26587873 I $ 26,009,471 L $$ 26 $ 27,422,747 1 $ 28,040,916 ' $ 2� 8,812,204
52,220 . 50,(100 1 50,000
Other
F _J__._- __ __- ____.__ 11 -,
KIBSD Expenses $ 21387,683 ii $ 21,595,171 $ 22,321,459 $ 23,047,747! 23774,036 $ 24,500,324:
i Fired Costs 621,110 1 720.000 730,000 740.000 750.000 944280 760.000
Debt Service 1 944,280 544,280
__._ ,,, _ , -__.__ 2,9 ;, _ - -- n 844,280 744,280 544,280 23895,739 24,532,027 25,068,316 25,804,604'
Subtotal __ _ 22,953073 23,259,451 __-
•____- _. __ �.-
, Personnel Services 1,614,770 1680000. il (+ -- 1,745,000 1,814,000.'.. 1885,000 1,911
0.0001
Contract Services 575,850 576000 576,000 580,000 585,000 590.000
Non -Profits 397,600 -1 397 6001 397.600 397,600 _ 397,60D 397,600
Education Endowment 200.000 1 -__ i.
Support Services 90.580 96,420 1 ; 96,000 99.120 105,000 110.000
Subtotal i - __2,878.800 .y 2,750,020 2,814,600 2,890,720 2.972,600 3.007.600 '..
4 Total $ 25 831,873 I 1 $ 26,009,471 $ 26 710,39 $ 27,422,747 $ 28,040,916 $ 28,812,204
L Sales Tax Percent 09 0 * 0% . 0*
i MillRate 6.75 9.49 9.89 10.37 1031 11.16
We arrived at 10.5 mills by averaging the mill rates from FY1998 to FY2002. Because of the
small change in assessed value each year (see Chart 1 on page 3), it was financially correct to use an
average mill rate for the next five years. There would be a slight surplus in FY1998 and FY1999, with
deficits in FY2001 and FY2002. This surplus would have to be carefully hoarded so that it would remain
available to fund the deficits anticipated in FY2001 and FY2002.
There are two important advantages to balancing the budget completely on a property tax basis:
the system for assessing and collecting property taxes is in place and operating efficiently, and local
property taxes are deductible from federal income taxes. This means that for most home owners in the
Kodiak Island Borough, the federal government would subsidize 28 percent of any property tax increase.
9
This model includes a 1 percent sales tax intended to keep property taxes from rising quickly. This
would keep the mill rate down to about 9 0 mills for FY1998 through FY2002.
iRevenues
Property Taxes
Severance Taxes
Sales Tax
Penalties & Interest
L PILT
National Wildlife Refuge
State Revenues
KIBSD Federal
KIBSD State
• Fees
Interest
Use of Fund Balance - KB
_.._� 1111
Use of Fund Balance - KBSD
Education Endowment
r Other
O her
r
L Sales Tax Percent
'� Mill Rate 5555.
Financial Model Two
Budget Balanced Through a Property Tax Mill Rate Increase and a Sales Tax
FY1997 I . FY1998 FY1999 ' FY2000 '. FY2001 -._ FY2002 •
...
$ 5,340560 $ 5,313,390 $ 5,657,378 '.. $ 6,033,450 $ 6,321,945 945 $ 6,690,264
0121 1
6
756,000 936,707 1,002,262 1,079,470 I' 1,142,285 1,
1,200,000 1,224,000 1,248,480 1,273,450 1,298,919
160,000 , 160.000 160,000 '. 160.000 160,000
16 0 0 0,000
427.660 430.000 445,000 445,000 445.000 445.000
230,000 280,000 320,000 : 320,000 320.000 320,000
1,7
__-
1,720,280 • , 1,400,000 • 1,350,000 1,300,000 1,250,000 1,250,000
2,051,090 1,948,536 1,845,981 1,743,427 l 640,872 �. 1 538,318
rt .
_:. 5 ,8 .__.
13,707,704 13,830,538 14,195,418 14581,920: 14,975,865 15,377,400 L . 61
60.300 60.300 60,300 61.000 61,500 61,500?
445,000 400,000 400,000 400,000 400,000 400,000
918,200 _._. _._
718,859 _.... _
52,220 50,0® 50,000. 50,000
$ 26 87,873 ', $ 26,009,471 $26 10,39 $ 27,422,747
1%
6.75 7.96
10
50,000 50,000
$ 28,040,916 $ 28,812,204
:Expenditures__
KIBSD enses $ 21,387,683 $ 21,595,171 $ 22,321,459 $ 23,047,747 $ 23,7744,0303 6 $ 74,500,324 '.
FixedCosts 621,110 720,000.
�._ 0111- 5151 ..
Debt Service t 944,280 944 280 844,280 744,280 I. 544,280. 544,280
Subtotal 22,953,073 23,259,451 5155. 23, 895,739 24,532,027 25,068,316 25,804,604
/- Personnel Services 1614370 1680,000 5555 1 1 1,885,000 1,910,000
.
I Contract Services 575,850 576,000 576,000 . 580,000 585,000 590,000
_ -_ 5511 1111 ___ 5055 _ 1155 __
Non -Profits 397,600 397.600 397,600 397,600 397,600 397,600
F Education Endowment 200,000 -
SSubtotal ervrces _. 0111 55112,878.800 i_ _.._.2,7 0020 _. 2,814600 ! 2,890,720 2,972,600 3,
PP
1 Total $ 25,831,873 $ 26,009,471 $ $ 26. $ 27,422,747 $ 28,040,916 $ 28,812,204
730,000 740,000. 750,000 760,000
1% 1%
8.35 '.. 8.82 � 9.15
The Borough may have two options in implementing a sales tax. The Kodiak Island Borough
could adopt a sales tax on an area -wide basis with a vote of its citizens. We would need to obtain a legal
opinion, however, to determine if the Borough could adopt a sales tax on a non -area -wide basis.
I %'
9.59
As in Model One, the mill rates were averaged from FY1998 to FY2002 to reach 9.0 mills. Again,
as in Model One, there would be a slight surplus in FY1998 and FY1999 with deficits in FY2001 and
FY2002.
If the Kodiak Island Borough adopted a sales tax on an area -wide basis, the Borough sales tax
would then become the base sales tax and sales taxes from other communities would be added to this base.
If the Kodiak Island Borough adopted an area -wide sales tax, we would be responsible for collecting the
sales tax for cities and villages within our Borough who have levied their own sales taxes.
There are several advantages to a sales tax. One positive attribute is that most people have the
funds available to pay a sales tax when it is due A sales tax is levied in small increments over the course of
a year instead of in one or two large installments. A sales tax would diversify the Borough's revenue base.
Off island visitors would also pay a sales tax, therefore contributing to our local government revenues.
It may be possible for the Kodiak Island Borough to adopt a sales tax on a non -area -wide basis. In
this case, our sales tax would only apply to areas outside of cities with their own sales tax. The advantage
to this is there could be a "constant" mill rate across the Kodiak Island Borough. If the Kodiak Island
Borough levied a 6 percent sales tax, then there would be a 6 percent sales tax everywhere in the Borough
except for the villages of Old Harbor, Larsen Bay, and Ouzinkie.
Education Endowment
, Other
Financial Model Three
Locally Funded Educational Endowment Fund
This model includes a 2 percent sales tax with 1 percent of this sales tax intended to keep the
property tax mill rate from rising and the other 1 percent to help fund the Educational Endowment Fund
This would keep the mill rate down to about 8.8 mills for FY1998 through FY2002, while adding
approximately $1,200,000 to the Educational Endowment Fund each year.
Revenues FY1997 FY1998 FY1999 FY2000 FY2001 FY2002
Property Taxes $ 5,340,560 $ 5,313,390 $ 5,605,389 $ 5,929,159 ', $ 6173,683 $ 6489,135
Severance Taxes 756,000 936707 993,051 1,060,811 I' , 1,115 ,496 , 1,(84,102
-
Sales Tax 2,400,000 2,448,000 2,496,960 2,546,899 44 2,597,837
Penalties & Interest 160,000 164000 166000 160,000 t 166000 160,000
KIBSD Revenues
PFe nuel 1320,280 0000
,090 . - 1,948,536 1,350,981 1,743,427 I I 1,640,872 1 ,
National Wildlife Refuge 000
KIBSD State 13,707,704 13,830,538 14,195,418 14,581,920 14,975,865 15,377,400
Fees 60,300 60,300 60,300 61,000 61,500 61,500
Interest 445,000. 400,000 404000.. 400,000 '.. 400,000.. 400,000
jUse of Fund Balance- KIB 918,200 '
Use of Fund Balance KIBSD 718,859
52,220 50,000
$ 2 6,5� $ 27,209,471
endhures _.__ 4
KBSD Expenses $ 21,387,683 $ 21,595,171 $ 22,321,459
'., _....fixed Costs _621,110 720,000 730,000
4Debt Service 944280 ! 944,2801'r 844280
Subtotal 22953073 + 23,259,451 23,895,739
r Personnel Services 1,614770 ' 1,680,000 i _ 1,745,000 �!
4- Contract Services 575,850 576,000 i _.. 576,000.
Non -Profits 397,600 397,600 1 397,600
Education Endowment 203,003 1,200,000 1,221,000
Support Services 90,580 96,420 __.. 96,000 .
�H�Subtotal 2,878,800 , 3,950,020 ,, 4038,600
r Total $ 25,831,873 4
27,209,471 $ 27,934,339 $ 28,671,227 $ 29,314,366 !r $ 30,111,123
Sales Tax Percent 2% 2% 2% 2% 1 2%
- _ _ ..
MMill 9 l Rate 6.75 �. 796 8.28 8.67 '. 8.94 I 9.30
This is the most forward looking of the three models. By FY2012, the Kodiak Island Borough
should achieve its goal of $25 million in the Educational Endowment Fund. This assumes an interest rate of
6 percent. Once the Endowment Fund is funded, it will be a non -tax revenue source for the Kodiak Island
Borough, and the sales tax rate would revert to 1 percent.
Analysis
Expenditures are going to continue to outpace revenues received for the Kodiak Island Borough
School District. Federal and state funding of our educational system will decline on a percentage of total
revenue basis. Likewise, increases in assessed value within the Kodiak Island Borough will not keep up
with school district expenditures. In FY1997, a mill rate of 8.9 mills was needed to balance the budget
without using the fund balance. It was set at 6.75 mills leaving a deficit of 2.15 mills. In order to obtain a
balanced budget for FY1998 through FY2002, the mill rate needs to be set at 10.5 mills, or the Borough
needs to adopt a sales tax of some percentage and reduce the mill rate accordingly.
A Borough -wide sales tax would have several positive attributes in contrast to raising the property
tax mill rate. First, visitors from outside of the Borough would help pay for the cost of education in Kodiak,
11
61,200 122,950 175,050 237,830
,..
50,000 ' '. 54000 ' ; 50,000 54000
$ 27,934,339 $ 28,671,227 $ 29,314,366 1 $ 30,111,123 .
4
$ 23,047,747 $ 23 774,036 { $ 24,503,324
740,000 , 750,000 760,000
744,280 '. 544,280 544,280
24,532,027 4 25,068,316 25,804,604
1,814,000 1885,000 , 1,910,000
580,000 585,000 H 590,000
397,601 397,600 ,: 397,600
1,248,480 1,273,450 1,298.919
99,120 105,000 110,000
4,246,050 4,1 - -'..
4139.200 �_ -.._ 306,59
___ _..
not unlike our residents paying sales tax on purchases made outside of our Borough which go to support
other governments and school districts.
Many people favor a sales tax because it is usually levied in small increments, and the consumer
usually has the money to pay the sales tax when it is due.
Also, not to be ignored in this analysis is the impact of an Educational Endowment Fund. This
fund may keep local mill rates stable by filling in the gap between rising costs of education with leveling
and declining federal, state, and local revenues. Once the Educational Endowment Fund has been fully
funded, it will be a non -tax revenue source for the Kodiak Island Borough School District.
A comparison of taxes shows conclusively that the Kodiak Island Borough has one of the best
records in the State of Alaska for maintaining a low tax rate.
There is a need to increase our local revenues in order to maintain our educational system at its
current level
Recommended Financing Model for Next Five Years
The task force recommends that Financial Model Three be adopted by the Kodiak Island Borough.
This would require establishing a sales tax, raising the mill rate to 8.8 mills, and moving local revenues into
the Educational Endowment Fund. This would help to diversify the Borough's revenue base and would
tend to stabilize tax rates over the next five years.
It is further recommended that this sales tax be a 2 percent area -wide sales tax. The task force
recommends that 1 percent of the sales tax goes to KIBSD operations and 1 percent goes to the Educational
Endowment Fund until the Endowment Fund reaches its goal of $25 million dollars. It is understood that a
sales tax can only be adopted by a vote of the people. Therefore, the Kodiak Island Borough Assembly
should begin work immediately on a sales tax proposal to be voted on in the November, 1997 election to be
effective on January 1, 1998.
It should be noted that after raising the mill rate to 8.8 mills in FYI998, it appears likely that the
same mill rate could be maintained through the year 2002.
If the Kodiak Island Borough adopts a 2 percent sales tax and increases the mill rate to 8.8 mills,
the per capita tax for the Kodiak Island Borough would increase to $661, still one of the lowest rates in the
state.
The task force also recommends that any surplus revenues be deposited into the Educational
Endowment Fund.
The task force recommends that maintenance of KIBSD's infrastructure be closely monitored to
ensure that maintenance monies are not moved to operations.
With a 2 percent area -wide sales tax and a property tax rate of 8.8 mills, the Kodiak Island
Borough should maintain its current level of FY1997 services through FY2002 without any significant
changes. We feel that by adopting a financing plan that would be stable over the next five years, the
citizens of our community would be better served than if we adopt a new plan and a new revenue structure
each and every year.
12
Other Recommendations
Both MB and KIBSD
Both the Kodiak Island Borough and the Kodiak Island Borough School District should recognize
the need to continue examining ways to reduce costs wherever possible while maintaining the current
program.
KIBSD
KIBSD should continue its strategic planning process to ensure an ongoing emphasis on
improvement in the quality of education. This plan should be included in a public information program.
KIBSD should continue to assess student performance and incorporate this and actual financial
information in an annual report to the public.
The KIBSD should continue to address the issue of teacher accountability. This includes an
evaluation of teachers where student performance is a major indicator.
KIBSD should maintain balance between personnel and non - personnel expenditures.
Kodiak Island Borough
The Kodiak Island Borough should review this report annually and use this report in the
formulation of the Borough budget in relation to School District expenditures for the next several years.
The Kodiak Island Borough should explore participating in a cooperative effort to establish
COLA's for Borough, School District (both certified and non certified), and Hospital employees. The goal
of this process is to give the same COLA to all public employees within the Kodiak Island Borough.
13
Capital Needs Appendix
The Kodiak Island Borough must continue to provide adequate educational facilities to our
children. As shown in Chart 6, the Kodiak Island Borough will have 3,127 students by FY2002. This is a
13 percent increase over the FY1996 student count of 2,804.
The Kodiak Island Borough has a school capital improvements plan for FY1998- FY2002. For a
complete copy, please see the Engineering/Facilities Department of the Kodiak Island Borough.
Highlighted in this plan are the following six projects. These have been selected and ranked in
order of importance.
B -1 Peterson Addition $ 910,000
B -2 Kodiak High School Code Upgrade $ 2,500,000
B -3 New Middle School $18,500,000
B-4 Kodiak High School Career Technology Upgrade $ 5,500,000
B -5 Chiniak School Addition $ 600,000
B -6 Kodiak Student Activity Center $ 3,800,000
On February 27, 1996, the School District Facilities Review Committee presented a school district facilities
review to the Kodiak Island Borough Assembly. For a copy, please contact the KIBSD business office.
14
please print your name
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KODIAK ISLAND BOROUGH
WORK SESSION MEETING
KODIAKISLAND BOROUGH
OFFICE of the MANAGER
MEMORANDUM
TO: Bud Cassidy, Administrative Official
FROM: Lauri Whiddon, Administrative Assista
DATE: December 8, 2004
SUBJECT: •Borough Manager Recruitment
Deputy Clerk Nova Javier asked me to provide a draft ad for the position of Borough
Manager for the Assembly to receive at their Special Meeting today at noon. I have
attached a draft for their review.
I've been unable to locate anything in my files on past Manager recruitments, but would
imagine that we would advertise through the Alaska Job Bank (Kodiak Job Service),
and AML, local newspaper, Anchorage Daily News, and possibly
and /or other newspapers. Another option would be through the publication Jobs
Availableyvhich is a listing of employment opportunities in the public sector, an we
have also used Alaska Journal of Commerce.
This is an example of what I normally send to outside agencies such as AM
advertise positions. This is only a draft, so feel free to make any changes.
BOROUGH MANAGER
The Kodiak Island Borough is accepting applications for Manager of the Kodiak Island
Borough. The Manager is appointed by and reports to the elected seven - member
Assembly and is responsible to the Assembly for the administration of daily Borough
operations and Borough staff. wle
SALARY
Negotiable, DOQ plus excellent benefits.
Complete job description and Borough application (required) may be obtained through Kodiak Job Service,
309 Center Ave., Kodiak, Alaska 99615, (907) 486 -3105. Open until filled. EOE. 4fl')
KODIAK
Kodiak is the second largest island in the Unt.-d States. Situated in the northern Gulf of
Alaska, just east of the Alaska Peninsula, the Ko ak Island Archipelago is home to about
15,000 people, ' - ; and 3,000 of the world's 7-
largest brown bears. Des -pile the island's iso a is , residents enjoy a ce atitan-- � nrnlAiAl )
fitstyfe, along with ac - to-- unerowded . • - s, extensive wilderness trails, and easy
mountain hikes. Downtown boasts shops, galleries, restaurants, coffee shops, and
museums. Commercial fishing, seafood processing, recreational hunting, fishing, tourism
and government make up the economy of Kodiak. The Kodiak Island Borough was
incorporated on September 24, 1963. It is a second -class borough with a manager form
of government.
,JOB SUMMARY
The Manager serves as the chief administrative officer of the Borough and reports to the
Assembly. The Manager upholds and enforces Borough laws and ordinances, administers
the policies of the Assembly and Borough, manages the Borough budget and capital
improvement program, and supervises department heads and manager's office staff.
QUALIFICATIONS
A bachelor's degree in business administration, public administration or a closely related
field from an accredited college or university and five (5) years experience as a municipal
administrator is required. Experience as a municipal administrator in Alaska is preferred.
A combination of education, training, and experience s ❑h stitut - for the required
education when the applicant possesses a demonstrated ability. A"strong financial
background and experience with grants and legislative matters is preferred. Must possess
strong organizational and planning skills. Must be a resident of the Kodiak Island
Borough during term of contract.
DRAFT
culkwiu,t c�vA
N ;\MAKA'DMAViuman ttesoursNersonnelWorkingFilesWring \Position Vacancy \MonageesOffice \Manager\PVO - Borough
Manager 4MLdoc
oar
Job Title: Borough Manager
Department: Manager's Office
Job Status: Exempt
Position Summary:
KODIAK ISLAND BOROUGH
Job Description
Serves as the chief administrative officer of the Kodiak Island Borough and reports directly to the Borough
Assembly. Administers all borough affairs as mandated by law and ordinance. Upholds and enforces borough
code and ordinances. Administers the policies of the assembly and the borough. Manages the borough
budget and capital improvements. Supervises department heads and manager's office staff.
Major Job Duties:
Acts as chief administrative officer for the borough. Plans, organizes, directs and coordinates the total
function of borough operations. Responsible for the proper and cost effective administration of borough
programs. Carries out directives of the borough assembly and the borough code of ordinances.
Represents the borough with other levels of government. Participates in coordinated activities with
federal, state, borough and other outside agencies as directed by the assembly. Tracks legislative changes
and makes related recommendations to the assembly.
Directs and supervises the administration of the functions of all borough employees except as
otherwise provided by statute or ordinance. Directly supervises the manager's office staff and borough
department heads. Responsible for initiating recruitment and hiring, staffing, and supervising of personnel
subject to approved personnel policies and procedures. Maintains accurate and complete records as
prescribed by law, ordinance and personnel policies. Administers any collective bargaining agreements.
Using the borough assembly strategic plan, prepares the annual budget request and capital
improvement program for assembly action. Executes the annual budget and capital improvement program as
adopted by the borough assembly. Makes written monthly reports to the assembly on borough finances and
operations. Provides updates and ongoing information on borough finances and operations at the regular
assembly meetings. Provides annual end of the fiscal year report on borough finances and operations to the
assembly. Monitors revenues and expenditures to assure sound fiscal control, effective and efficient use of
budgeted funds, personnel, materials, facilities and time. Reviews accounts, records and operations of each
borough department on an on -going basis.
Works with department heads reviewing and /or implementing any departmental changes in response to
changing borough requirements or needed improvements. Works with department heads to make any
recommendations to the assembly for changes in policy.
Provides professional advise to the assembly and department heads. Provides a point of contact with
the borough citizens; communicating with, making presentations to assembly , councils, boards, commissions,
civic groups and the general public.
Coordinates activities between departments and with other agencies; facilitates gathering,
interpretation and preparation of data needed for studies, reports and recommendations.
Provides oversight for the care and custody of all borough buildings and all real and personal property
of the borough, excepts as provided by statute, and the construction, maintenance and operation of all borough
roads, bridges, drains, buildings, service districts and other public works.
Monitors and administers the performance of all contracts for services for the borough, including
construction of buildings, facilities and equipment.
Seeks state and federal grants and contracts that would be beneficial to the borough.
Executes other powers or duties specified by statute or by the assembly, and performs other related
duties as assigned by the assembly.
Job Specifications:
1. Education: Bachelor's degree in business administration, public administration or a closely related field
from an accredited college or university.
2. Experience Required: Five (5) years experience as a municipal administrator. (In Alaska preferred).
Experience in preparing and administering municipal budgets; negotiating and administrating labor and
facilities contracts.
3. Experience Preferred: Experience as a municipal administrator in Alaska. Experience with capital
projects, grants, legislative affairs and team management.
4. Skills: Excellent written and oral communication skills, including public speaking. Research and report
and technical writing skills.
5. Knowledge: Knowledge of fundamental principles, practices, and policies of public administration and
office management. Working knowledge of municipal finance, accounting practices, computer
information systems, human resources, public works and community development. Knowledge of
Alaska Statutes and Alaska municipal law.
6. Abilities: Ability to establish and maintain effective working relationships with staff, public officials and
the general public. Ability to remain current with changes in federal ,. State and local laws, regulations,
ordinances and pending legislation affecting municipal operations. Ability to use initiative and
independent judgement in carrying out assignments. Ability to travel to off island meetings and
functions, and to attend frequent evening and weekend meetings.
7. Must be bondable.
Employee Signature Date
This organization reserves the right to change or revise lob duties and responsibilities as the need arises. This iob description does not
constitute a written or implied contract of employment.
Council /Assembly
Guide to Hiring a
Municipal Manager
With sample forms interview questions, etc.
by
Annie Mdivain AML Program Coordinator
Kevin Ritchie, AML Executive Director
ri1( :
r. r A
AN://A
Alaska Municipal Management Association
How to Use this Guide
The purpose of this pamphlet is to provide one good
example for developing a straightforward hiring process for a
municipal manager. There are many other options. Also, in
striving for simplicity, in some cases, we may have provided
too little detail. Please use this as an initial guide, but also
consult other experts as you plan and implement the hiring pro-
cess.
2
Table of Contents
Step One - Chose a Hiring Coordinator
and Hiring Committee Page 4
Step Two - Form in Interim Plan Page 5
Step Three - Write a Job Description Page 5
Step Four - Form a Recruitment Plan Page 7
Step Five - Evaluate Applications Page 9
Step Six - Keep Candidates Informed Page 13
Step Seven - Interview Candidates Page 14
Step Eight - Manager Employment
Contracts Page 18
3
COUNCIL /ASSEMBLY
SAMPLE HIRING TIMELINE
Week One
o Choose a Hiring Coordinator and Hiring Committee for the selection process.
Discuss and agree on a selection process and schedule.
o If necessary, choose an Interim Manager and form a plan to run the municipality
until a new manager is hired.
Week Two
o Write or update a job description and goals. Clearly define the job so the selection
team knows exactly what kind of manager is needed to best serve the community.
o Approve a recruitment plan.
o Decide on a plan and record keeping formats to evaluate applications and
interview final applicants.
o Draw up a clear job announcement suitable for newspaper and journal
advertising.
Week Three -Five
o Implement Recruitment Plan
♦ Place advertisements in newspapers, AML newsletter, etc.
♦ Speak to employees, community organizations, or individuals to announce
position, encourage applications, and discuss the hiring process and time
frames.
♦ Agree on an evaluation process including interview questions and /or one or
more additional assessment center exercises.
Week Six
o Acknowledge all applications as they are received.
o Screen applications using a rating form to determine which candidates meet
qualifications and are the best qualified.
o Send written questionnaires to first round candidates.
Week Seven - Eight
o Evaluate returned Applicant Information Questionnaires and decide on
applicants to interview. Send letters to all candidates who were considered and
inform them of their status.
o Schedule and arrange interviews for final candidates — usually 2 to 5 are
best depending on the size of the municipality.
o Check references of final candidates in detail.
Week Nine
o Conduct interviews and /or assessment center exercises.
o Negotiate employment terms with top applicant.
o Call and send letters to unsuccessful candidates thanking them for their
interest.
5
Step ONE - Choose a Hiring
Coordinator & Committee
Hiring a manager may be the most impor-
tant duty a council /assembly performs. The
wrong decision can cause endless head-
aches. Therefore, while some council /as-
sembly members may not feel confident in
directing a hiring process, it is critical for
the council /assembly to work as a team
and stay engaged in the entire hiring
process.
tt>One member of the council /assembly be
appointed to take responsibility for co-
ordinating the entire process to ensure
continuity. Coordination may also be
conducted by a staff member.
QThe entire council /assembly should re-
view applications. If a subcommittee is
appointed to review applications, their
evaluations should be shared with the
entire council /assembly.
WSince the council /assembly must work
with the city manager as a team, the en-
tire council /assembly should agree on
an interview process and jointly inter-
view final candidates as a team.
The Alaska Municipal League (AML) and
the Department of Community and Eco-
nomic Development (DCED) can offer ad-
vice, pamphlets, and some assistance upon
request.
6
Using a professional recruitment
and hiring consultant
While implementing a hiring process
requires a significant amount of work
and organization, it is very possible for
an elected body to coordinate an effec-
tive effort supported by existing staff re-
sources, like the municipal clerk, and
organizations like the AML and DCED.
If the choice is made to hire a consult-
ant, the council /assembly should still
insist on being actively involved in all
stages of the process to the extent of
their available time.
Planning and implementing a munici-
pal manager hiring process is a lot of
work. The main advantage of using a
consultant is their experience. The main
disadvantages are the cost and the
greater possibility of losing the day to
day engagement of the council /assem-
bly in the process.
It is often impossible to select a new man-
ager before the old manager leaves. In
many situations, the council /assembly will
appoint a municipal employee, such as the
assistant manager or municipal clerk, to
serve as Acting Manager until a new man-
ager is selected.
The manager's job is very important. The
position should be clearly defined so the
best manager can be found to serve the
needs of the municipality. Some initial ques-
tions to decide when writing a job descrip-
tion are:
Q>What are the council /assembly's expec-
tations of a manager?
'1;5What kinds of skills, experience, and
management styles are best for the com-
munity?
q>What are the key challenges the com-
munity will face over the next several
years?
This is no simple task. The whole coun-
cil /assembly can participate in writing
the job description for the manager posi-
tion.
STEP TWO - Form an
interim plan
7
If there is no appropriate staff person or
other person to be appointed, the Alaska
Municipal Management Association, in co-
operation with AML, offers an Interim Man-
ager Program that can suggest professional
managers to fill in until a permanent man-
ager is chosen. For more information, call
AML toll free at 1- 877 - 636 -1325.
STEP THREE - Write /update
a job description and goals
Setting forth the manager's required skills,
background, duties, and key goals for the
next year or more in writing helps crystallize
thinking and serves as a subject for conver-
sation when the selection team is ready to
interview candidates.
To decide on goals for the manager, first
discuss the municipality's major goals and
challenges for the next year or more.
For example, the municipality may need
someone with particular talent for getting
people to work together and mediating dis-
putes. On the other hand, if the city is about
to embark on a several long -term major
capital projects, a manager with more ex-
perience in overseeing construction projects
may be of more value.
(Sample form on following page)
JOB DESCRIPTION FOR
A MUNICIPAL MANAGER
Sample Format
Key Goals for Municipal Manager:
0
0
0
0
Desired experience /education:
Other
0
0
Desired skill, and abilities:
0
0
0
Describe key qualities and duties:
o Management of services
o Management of capital projects:
o Budget
o Personnel Management
o Customer Service
o Community Relations
o Council /assembly Relationship
o Economic Development
8
STEP FOUR - Form a
recruitment plan
To decide on a recruitment process, the
council /assembly needs to determine
how broadly to recruit. It is often better
to advertise a job opening more broadly
than too narrowly, even if there are suit-
able "in- house" or local candidates.
However, while the cost of advertising in
national association or organization pub-
lications may be small, considering na-
tional candidates may require expensive
interview travel and relocation costs.
9
Any advertising should be clear, concise
and easy for applicants to understand ex-
actly what the position entails.
There is no magic to municipal manage-
ment. Like any other management posi-
tion, a municipal manager must have solid
basic management, finance, communica-
tion, and other skills. Manager candidates
are often chosen from three common cat-
egories:
q>Profpssional municipal manager The advantage of hiring a professional mu-
nicipal manager is the specific background in local government issues and poli-
cies. However, a professional manager hired from outside the community must
overcome the additional challenges of moving to a new community and learning
local issues and politics.
t$Hiricg from within: Many professional municipal managers enter the field from
other municipal professions within the municipality such as engineering, planning,
municipal clerk, municipal attorney, or finance officer. It is a wise policy fora munici-
pality to cultivate good managers internally who could eventually fill the role of munici-
pal manager. In many cases, hiring from within the municipal staff combines good
management skills with local knowledge and strong relationships with existing munici-
pal staff.
anther local candidates' Local candidates who have good management skills
and preexisting knowledge of the community and its issues may make good mu-
nicipal managers, especially if they take advantage of municipal management train-
ing offered by the AML, Alaska Municipal Management Association, the Interna-
tional County /City Management Association (ICMA), or the University of Alaska. It
is critical for candidates without direct municipal experience to realize that the law
requires municipal government to work under a high degree of public scrutiny in
meetings, decision - making, bidding and contracting, hiring and firing, etc.
(Sample form on following page)
SAMPLE RECRUITMENT PLAN:
q> Loral newspapers or radio advertisements: Prepare a short version of the
job description, how to apply, and who to contact for more information. Advertising is
expensive, so a compact version is often sufficient.
• Elertronir media: Use electronic advertising on your municipal web page or a
community web page. Sending e-mail recruitment notices is another option. Some
candidates will respond very quickly to electronic communication and notices. It is
likely the municipality will receive questions and resumes by e-mail in a statewide
or national recruitment, so be sure to include an e-mail address in all of your
advertising if possible.
q> Word of mouth' This type of recruiting is often overlooked. It is critical that in-
house or other local candidates feel comfortable applying. Possible word of mouth
ideas:
♦ Presentations to the chamber of commerce or other community groups.
♦ Presentations to employee groups.
♦ Targeted recruitment of qualified individuals.
q> Professional newsletters
♦ The Alaska Municipal League publishes job announcements in its
newsletters and on -line as a free service to members. The AML also
offers to fax a job announcement to its members for a small fee. Call 1 -877-
636 -1325.
♦ The International City Management Association (ICMA) newsletter
publishes job announcements. This is a good option for a nationwide
search. (www.jobs.icma.org)
✓ 7
SAMPLE
JOB ANNOUNCEMENT
Municipal Manager for the City of Alaska, AK. Alaska is a full service municipality
with a population of 2,000. The manager reports to a Mayor and five member
council. The manager oversees an annual budget of $11 million and supervises 10
staff. Please send cover letter describing your specific interest in this position, a
resume, and professional references. Minimum qualifications: Bachelors degree
and at least seven years of progressively responsible management experience.
Experience as a manager or assistant manager in a similar community is
preferred. Salary & benefits are:___. For more information see
www.ci.alaska.ak.us or call Alaska's City Clerk at 907 - 000 -0000. Applications may
be mailed to: City of Alaska, P.O. Box 1234, Alaska, AK 99999 or by e-mail to
clerk @city.ak.us. Alaska is an equal opportunity employer.
a
10
STEP FIVE - Evaluate Applications
Councils /assemblies generally rely on three standard methods for rating candidates:
R vim ofaprzlication form and /or me: Eliminate candidates that do
not meet minimum qualifications. It is an important first step to compare the infor-
mation submitted by the applicants on city job applications or professional resumes.
This process will help weed out unqualified candidates and provide important
comparative information on the qualified applicants. Each job application /resume
should be evaluated based on the minimum qualifications for the position. It is
helpful to develop a rating sheet for each application based on the job requirements
listed in the job description. This is a way to objectively evaluate and discuss the
merits of each candidate. (Sample form on following page)
If a candidate does not meet the education and experience requested in the job
description the selection team coordinator will send that applicant a letter of regret,
thanking the candidate for applying.
Candidate written questionnaire: After an initial screening of applications,
the top 4 -10 candidates may be asked to respond to a written questionnaire. A
questionnaire is an inexpensive and effective way of to:
♦ Learn more about the candidate and the level of interest.
♦ Get specific answers on how a candidate will address issues of concern in
the municipality.
♦ Test writing skills
♦ Objectively compare candidates responses to the same questions
Personal inv iga io /r Terence checks: After an initial screening of
applications, several top candidates may be evaluated by personal investigation
and reference checks. Such efforts should be discussed by the candidates to avoid
embarrassment with the current employer.
(Sample formats on following page)
11
Municipal Manager Application Rating Form
Name of applicant:
Evaluator: Date
List of Key Required Skills or Qualifications from job description:
Rate each qualification from 0 (none) to 5 (outstanding)
Skill/Qualification:
SAMPLE FORMAT
General Rating Criteria (optional):RatingComments
(0 -5)
Quality of written application:
Consistent/progressive job history:
Doesn't change jobs too frequently:
Total score:
Overall comments
Rating Comments
(0 -5)
12
De arApplicant :
SAMPLE FORMAT
Municipal Manager Candidate
Written Questionnaire
You have been t
e
selectd to enter the second stage the position of Municipal ct selected
Manage second The
f p information position
f about os of the application evaluation
your qualifications and a agthis q emen t s style. afire is to getrocess
management tyle.
may y type your responses on a separate
more than one hair page Please r p Please limit each response your one half page. to provide responses
masse call - - - -__ no later than p to no
i nformation. at 907 or by e-mail to (date). You may
00 0 -0000 if you have questions or need further
Thank You
1. Describe actions that you have taken that best demonstrate
style.
your management
2. Describe a professional accomplishment that
skill as a municipal manager.
you feel best demonstrates your
3. why did you choose our community to live in and wh y do you feel that you will
be successful here as municipal manager?
4. Economic is a critical me
developnt tical concern of our
have you had in s isg or tical con
community? community What successes a
g economic development activities in a
5 . One (or two) of the greatest challenges our community faces is
you address this issue if you are selected?
13
L
Personal investigation /reference checks:
The council /assembly checks the candidate's integrity and quality of previous work
through a check of references by letter or phone or through a visit to the city where
the candidate has served as manager. (Ask the candidate if persons who have not
been listed as references may be contacted.) For example, speaking with the editor
of the local newspaper, president of the local chamber of commerce, or a state legislator
whose district encompasses the city in question, etc. may be valuable. The investigation
should be both thorough and to the point. It is a good idea to prepare a standard list of
questions to ask the references who will be called and to write down their responses to
be included in the evaluation of candidates.
Many communities are now asking their police departments or the state troopers to
run a criminal check on candidates. Be advised, written permission from the candidate
should be obtained before a candidate is checked in this manner. If there are any
questions about this process, speak to a municipal attorney or personnel professional.
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SAMPLE FORMAT
TELEPHONE REFERENCE CHECK
Name of applicant _
Name of interviewer
Date
Name of reference interviewed _________ ------ - - - - -- Phone _
I'm calling from the City of . 1 am ch job references for
who has applied for the position of city manager.
May I ask you a few questions?
1. How long did you work with and in what capacity?
2. Can you tell me about one or more specific examples of work situations or
other situations that you observed that demonstrate the applicant's best qualities
as a manager or leader?
3. Other questions that relate to the key skills or abilities:
a.)
b.)
c.)
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STEP SIX - Keep candidates
informed at every stage
Applying for any job is stressful, applying for a municipal manager can be especially
nerve - racking because of its public nature. It is critical that good communications are
maintained with every candidate so that they know the status of their application every
time a decision or cut is made. Minimum communications should include:
tt>Mail or e-mail notice the application has
been received and the approximate
schedule and process for consideration.
You may also want to send more detailed
information on your community, the job, the
municipal budget, etc.
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Written or e-mail notice to every applicant
as soon as practical after further con-
sideration of candidates occurs. (af-
ter initial screening and after selection of
finalists.)
Written notice to final candidates when a
manager has been selected.
L
Dear Applicant:
Your application for the city manger position in Alaska, AK has been received. Our
intention is to complete initial evaluation of applications by January 31 and mail a
candidate questionnaire to those selected for further consideration. All candidates
will be notified at that time of the status of their application.
If you have questions or need further information, contact at (907)
123 -4567 or email @ci.alaska.ak.us.
Thank you.
Hiring Coordinator
Sample Response Letter
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1
0
STEP SEVEN - Interview
candidates
Two interview options to consider:
Oral Interviews:
The oral interview is an opportunity to learn
the personality, force, tact, personal
appearance, and sense of humor of the
candidate. The team will also have the
opportunity to ask questions about how the
manager would tackle specific issues or
projects that are of concern to the
community.
It is critical that all questions be fair and that
all candidates receive equal consideration
and treatment. The selection team should
prepare a written list of interview
questions for all candidates. To avoid
questions that may be unfair, make sure
each question pertains only to the duties of
the position. If there is a concern about
certain questions, seek advice from an
attorney or personnel professional.
Teleconference interviews are also useful
in narrowing the number of candidates
interviewed on -site in the community. All
selection team members should
participate in the interview for each
candidate. Some do not relish the task of
deciding who should be the new manager
but no one should be permitted to shirk
this duty. If a new manager is to be hired,
it could be one of the most important
choices a governing body makes.
(Sample form on following page)
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"Assessment Center"
Process:
In recent years, employers have found that
interviews alone may not provide all of the
best information on how well a
professional will perform on the job. An
alternative is to use an "assessment
process" in addition to the oral interview.
The concept of an assessment process is
to ask each candidate to perform a task
he /she would have to perform on the job.
For example, for a municipal manager
position, ask each candidate to make a
presentation before a group of citizens,
and then answer follow up questions.
If having a manager who works well with
citizens groups is important to you, this
may be an appropriate activity to make a
part of the selection process. For group
presentations, it is important to note the
group you pick to listen to the candidate's
presentations generally is not rating the
candidates - that is your job. You may
invite group participants to fill out comment
cards on each candidate but clearly state
that the comments will be considered as
one of several factors in your evaluation
of the candidates.
If you are particularly interested in writing or
grant writing skills, ask the applicants to
draft a letter or fill out a simplegrant
application form. Another common
writing exercise is an "in- basket" exercise
described on page 16.
SAMPLE FORMAT
Interview Rating Form /Interview Questions
Name of evaluator:
Name of applicant date
List interview questions. Score responses from 1 (non- responsive) to 5 (outstand-
ing). Make comments.
1. Why are you interested in this position specifically? (circle) 1 2 3 4 5
Comments:
2. How does your experience make you the best candidate for this job?
(circle) 1 2 3 4 5 Comments:
3. Describe your management and supervision style and give specific examples of
management successes. (circle) 1 2 3 4 5 Comments:
4. Describe your experience with budget preparation and finance and how would
you propose to develop a budget if you were selected as manager?
(circle) 1 2 3 4 5 Comments:
5. What successes have you had in your relationships with governing bodies you
have worked for. What did you learn that will help you in this position.
(circle) 1 2 3 4 5 Comments:
6. What has been your experience in working with the state or federal govern-
ments? (circle) 1 2 3 4 5 Comments:
7. How do you approach working with the news media? Describe a delicate situa-
tion that you handled with the news media. (circle) 1 2 3 4 5
Comments:
8. What are your expectations with respect to compensation and benefits?
Comments:
9. Do you have questions for us?
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Assessment Center Options
Public Presentation Exercise:
Purpose: Evaluate the ability of candidates to interact with the public, think on their
feet, and respond to community issues.
Invite community members to attend a presentation by candidates. Ask each candidate
to:
q> Introduce themselves to the audience.
Cj Make a ten minute public presentation on a topic you choose, such as a specific
community issue they will have to deal with as a municipal manager, or their approach
to management in general.
• Answer audience questions for ten minutes.
The selection panel sits in the back of the room and takes notes on how well the
candidates interact with the public, the quality of their presentation, etc. Audience
members may fill out comment cards to help interviewers and provide additional
feedback. However, such responses should be kept confidential and it should be made
clear the selection team makes the final decision. (See Sample Rating Form Page 18)
Initial Staff Meeting Exercise;
Purpose: Evaluate how candidates interact with municipal staff and their management
style.
Candidates are asked to make a presentation to municipal staff and answer questions
as if it were their first staff meeting after they are hired. Invite current staff who report
directly to the manager to participate in a "mock" staff meeting exercise. Staff members
may be invited to fill out comment cards to help interviewers. However, such responses
should be kept confidential and again, it should be made clear that the selection team
will make the final decision.
)n basket Exercise:
Purpose: Evaluate writing, decision- making and delegation skills.
Candidates are given the contents of the manager's in- basket and are given a certain
amount of time (e.g. an hour) to read the contents. They are then asked to write out
how they would prioritize and resolve each item.
Traditional Oral Interview:
An assessment center usually includes a traditional interview as described previously.
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SAMPLE FORMAT
Assessment Center
Evaluation card for staff /public presentation
Name of applicant date
1 (poor) to 5 (outstanding)
1. Did the candidate present his /her ideas in a clear, persuasive, and effective
manner? (circle) 1 2 3 4 5 Comments:
2. Did he /she encourage others to speak and respond well to questions?
(circle) 1 2 3 4 5 Comments:
3. Did he /she 'connect" with the audience or inspire trust in their message?
(circle) 1 2 3 4 5 Comments:
4. Did he /she appear to be flexible and open to public comments?
(circle) 1 2 3 4 5 Comments:
5. Was he /she comfortable under pressure? (circle) 1 2 3 4 5 Comments:
19
STEP EIGHT - Manager
employment contract
Many managers request a municipality enter into an employment
agreement. Such a contract sets forth initial salary, procedures for future
salary increases, fringe benefits, moving expenses, business and travel
expenses which will be incurred on the job, relationship between the
council and the manager, and city contributions to manager's retirement
plan
An employment agreement also states procedures to be followed in
order to terminate the manager's employment with the city, should this
become necessary, The contract usually states the number of month's
notice of termination required.
Copies of manager employment agreements from other municipalities
may be available if you choose to develop one. (Sample form on
following page)
20
SAMPLE FORMAT
Employment Contract
This is not intended to substitute for an employment agreement. It is a list of topics that
should be considered during contract negotiation. Some municipalities decide to have
formal employment agreements, others do not. Employment agreements are becoming
more common because they are intended to give a manager more stability and to make
the expectations of both the municipality and the manager clear. It is always best to seek
professional legal advice if you wish to execute a formal written agreement.
Term of the agreement:
Ck,The employment can be open ended with no termination date, or, for example,
limited to one, three, or five years, before it must be renegotiated.
Duties:
t5List tasks /assignments expected to be completed by the manager, especially in
regard to working with the council /assembly, hours of work, etc.
Termination Provisions:
t>The manager usually works "at the pleasure" of the city council or assembly
which means that the manager has fewer employment rights than other employ-
ees. Termination provisions can specify how much notice of termination the
governing body must give the manager, if there will be "severance pay," and /or
moving expenses to a previous location.
q>Provisions may be different for cases where the manager voluntarily decides to
take another job, or leave for other reasons, before the end of the contract pe-
riod.
Salary and Benefits:
,Base salary: (Note: The AML Annual Municipal Salary Survey lists salary for city
managers from many communities.)
t 5 Retirement/deferred compensation.
q>Health, disability, life insurance.
q>Vacation, holidays, sick leave, military, and any other leave.
Special benefits:
pWill the municipality cover moving expenses? If so, must some or all of the
expenses be repaid if the manager fails to fulfill the term of the contract?
q>Will an automobile, housing, or other benefit be provided?
tk,Will funding be provided to pay for training, conferences, membership fees,
dues, publication subscriptions, etc?
Performance Evaluation of the Manager
Will there be a formal evaluation? If so, what time frame and specify process.
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