Loading...
05/16/2020- Summary City of Tigard Budget Committee Summary Saturday, May 16, 2020, 8:30 AM Tigard, Oregon 97223 Teams Meeting MEMBERS PRESENT (10): Clifford Rone,Tim Cadman, Chris Bence,Leah Voit, Siobhan Chandler,Liz Newton, Heidi Lueb,Jason Snider,John Goodhouse,Tom Anderson MEMBERS ABSENT (0): STAFF MAKING PRESENTIONS: Marty Wine- City Manager, Kathy Nyland -Assistant City Manager,Toby LaFrance- Finance and Information Services Director, Kathy McAlpine- Police Chief, Kenny Asher-Community Development Director,Dana Bennett-Human Resources Director,Brian Rager-Public Works; Nadine Robinson-Central Services Director, Halsted Bernard-Library,Lori Faha-Public Works, Sean Farrelly-Community Development;Joe Barrett, Business Manager-Public Works; Lisa Shaw-Business Manager-Police 1 Convene City of Tigard FY 2020-2021 Budget Committee Meeting— • Introductions/Housekeeping items-committee introduced themselves and committee chair commented on housekeeping items • Budget Message-Marty Wine • Proposed Capital Budget is $159 million across all funds and six years. • Highlighted projects include design and construction in Transportation; Tigard Strategic Plan, uncertainty of Gas Tax due to reduced city driving; Parks Master Plan and Universal Plaza; Water-ASR, Cach Reservoir and a resiliency plan; Sanitary Sewer and Stormwater-Downtown and Fanno Creek • Tigard is financially stable but is resource constrained. There are service-level challenges. • FY21 budget is 32% higher than this fiscal year. The majority of this increase is in capital projects-moving from design to construction. In our operating expenses, there are investment changes,inflation rates and dedicated revenue changes. • Our service level reserve is good for eight years. We are making investments each year to keep up with population growth. • The General Fund is increasing by 4%. The biggest portion of that is due to the changes in the photo enforcement program, which is planned to be supported by new revenue. The remainder is made of inflationary increases and small projects. City of Tigard Budget Committee Page 1 • The proposed budget themes are working on council goals, implementing the updated strategic plan, facility planning and implementing performance audit recommendations. • This proposed budget will meet the new council goals, focused on development in our city centers, grow responsibly and engage the community. We will update our enterprise systems to help maintain our public assets and invest in data and business process improvement. Our non-general fund departments will be constrained by their long-term revenue outlook. Additionally, we will be investing in major capital projects in the 2019-2025 timeframe in streets, parks, water, and sanitary sewer and stormwater. Our performance audit had 69 recommendations and 58 measures which the city has started to implement. • Council goals are directing work toward another local option levy proposal in 2020, focused on public safety needs, to include 8 officers, support needed in Support Services, de-escalation training and a school resource officer. • Technology integration was identified in the audit. We are working to install a system that will bring together as many individual departmental system into one platform. • In response to COVID-19, city buildings are closed, but services are open. We opened up or emergency operations with a call center and it is the essential needs hub. We have provided community assistance for local businesses, housing and utility bill relief. Short-term revenue impacts are few, but it's early. We will continue to closely monitor and evaluate our revenues. As of now, there are no planned reductions. • Financial Forecast-Toby LaFrance • Due to handling the city's finances according to national governmental accounting standards,we have financially clean audits. • As an organization, we make financial decisions to live within our means and with a long-term view of the consequences of our decisions. COVID impacts are largely manageable and will be monitored. City Gas Tax, Gas Tax and Park Utility Funds will be adjusted. • General Fund increase-4%, due to inflationary increases, photo enforcement, use of Trust account and Pool 2 in the Library or use of Service Level Reserve for on call library staffing. • We have healthy reserves; some comes from developer fees and from making healthy decisions. We will begin using these reserves in 2021 to keep our service levels constant, matching population growth in our community. With the cost of COVID, we have lost one year on the forecast with sufficient reserves through FY 28. • Gas Tax and City Gas Tax Funds-revenue is down 10-12% due to COVID. A technical adjustment from staff will solve the forecast issue. • Parks Utility Fund-the proposed budget includes staff for new parks. There is an issue paper for the committee to address parks maintenance. • General fund will need to be closely monitored. City of Tigard Budget Committee Page 2 2 Public Comment There were two citizens providing comments. Speaker Topic Theme Gordy Winterrowd COVID-19 Response Where has the city reduced expenses? Increase in the budget for capital projects; he would like a written document with the budget increases; utility funds- how much is moved to the general fund? Michael Antonelli COVID-19 Response Families are struggling; should the city consider making the area more attractive for large companies to move here? 3. Recess City of Tigard Budget Committee 4. Convene Town Center Development Agency FY 2020-21 Budget Committee • TCDA Budget Message and Presentation-Sean Farrelly, Redevelopment Manager • TCDA includes the Tigard Triangle as well as the downtown urban renewal areas. • Primary financing for these areas is tax increment financing-this is the difference between the assessed valuation when the district was created and the property taxes collected on any growth over the assessed value above the base, goes to the TCDA to fund projects. • Tigard has two districts: One formed in 2006-City Center District and the Tigard Triangle District was formed in 2017. This district is much larger than the City Center district. This district is where the city is trying to focus growth, get new development growing for business and residential. • Accomplishments so far in the current budget include Rotary Plaza, a public restroom, continued work on Universal Plaza, work on the Senior Center and Tigard Heritage Trail in the City Center district. The Tigard Triangle completed New Tigard Triangle Equitable Implementation strategy, largely funded by a Metro grant focusing on the disadvantaged community. Another project is the Red Rock Creek affordable housing. • Key Projects for the City Center District in the FY 21 include Universal Plaza design and activation, Main Street Green Street phase 2, and the City Center Futures Project includes working with a consultant to determine if the district should be enlarged and if other projects should be added. We are also looking at the vision, which hasn't been reviewed in many years. Nick Wilson Fanno Creek Overlook will be developed-we are in design and engineering phase this fiscal year. • Tigard Triangle projects for next year include park property acquisition due to the large residential population that will be there in the next three years. We are looking at a half-court basketball court, swinging bench, shaded picnic area, swings and net climber. Red Rock Creek Commons will have 48 affordable apartments Overland project along 72nd and Dartmouth will have 219 apartments and 5,000 square feet of commercial space. Hwy 217 multi-use path is a pedestrian and bike path over the Hwy 217 that would be part of the Southwest Corridor light rail project. • Service challenges: unknown impacts of COVID-19-some building projects are on pause and the other unknown is the Southwest Corridor timeline. City of Tigard Budget Committee Page 3 • Approval of TCDA budget • It was moved by Chris Bence and 2" by Tim Cadman to approve the TCDA budget. Motion passed unanimously. • TCDA budget committee was adjourned. 3 Reconvene City of Tigard Budget Committee • Department Presentations • Tigard Police-Chief McAlpine • Key accomplishments: Purchased defensive tactics training system;installed cameras for photo enforcement of red light violations, implemented an on line crime reporting system, hosted a Police open house with 500 attendees, held several Chat- with the Chief community outreach events, increased social media and other media outreach to highlight police work. Due to COVID-19, business practices were modified while core services remained intact. • FY2021-Photo enforcement-implement speed enforcement at key intersections; expand traffic safety unity to include an evening traffic car to help day and afternoon motorcycle traffic enforcement; evaluate the effectiveness of online crime reporting and replace outdated dash cam technology. In terms of community outreach, Police will work with a non-profit called Unite Oregon to expand outreach in under-served communities. • Challenges: Local Option Levy-the department will have to adapt to the results of the May 19' levy vote; recruit and hire existing officer vacancies and work to retain senior officers; maintain state-wide mandates while adjusting to department training options in order to meet the community needs (de-escalation and crisis intervention training); COVID-19-manage ongoing business practices and evolving protocols; make adjustments after K9 handler was promoted to sergeant. • Library-Halsed Bernard • Key Accomplishments: Along with the Sherwood Library, hosted an in-service day; adjusted open hours in response to patron feedback; increased social media presence; worked with our Economic Development staff to secure a new vendor in the library lobby; provided service to our patrons, even with the physical building closed, through outreach by phone and online; informed the community about the WCCLS levy renewal on the May, 2020 ballot. • FY 2021: Develop hybrid in-person and virtual library services, including online programming and all ages summer reading program; rollout a Library of Things for all ages; redesign library spaces for a welcoming, safe and healthy access to materials and services. • Challenges: Bridge the digital divide in our community; hiring pause, temporary layoffs of on-call employees and suspended volunteer program creates staffing challenges; sustained impact of COVID-19 to providing materials and services to our patrons. • Finance and Information Services-Toby LaFrance & Mike Nolop • Key Accomplishments: Investing in VDI and Microsoft 0365 has enabled the city to more easily transition to work from home for employees; established a Project Management Office within the Information Technology department; published the first Popular Annual Financial Report; restructured our general obligation debt, City of Tigard Budget Committee Page 4 saving $1.25 million net present value in Property Tax payments over the life of the bond; received a clean audit and published award winning audit and budget documents. • FY 2021: Implement Total Tyler and Tyler Munis computer system-a multi-year project that is resource intensive and will result in a positive, efficient way we do business; support remote working, e-commerce and reimagined service delivery; continue to provide core financial, contracting, UB and IT services; support the updated Strategic Plan, Performance audit and council goals. • Challenges: Performance audit indicated that Finance has limited staff resources. This limits the time for analytics and risk/audit assessments; payroll is effectively performed by one person;Total Tyler requires significant staff time. • Central Services-Nadine Robinson • Key Accomplishments: Supported council's communication goal, including outreach during this COVID-19 with virtual events and chats; planned and have received photo red light citations in court; worked with our IT staff to implement Smarsh, a comprehensive archiving and compliance solution; worked with FFA Architecture & Interiors and departments to develop programming for the all-in- one plus facilities; completed an Americans with Disabilities Self-Evaluation and Transition plan that was adopted by council. • FY 2021: Develop a new website to serve as a communication platform for our business and residential members and visitors; successfully implement court processes and procedures to receive and process photo enforcement speeding citations; review and update the Tigard Municipal Code to delete archaic sections and incorrect references. • Challenges: Shifting communications to virtual platforms, while maintaining in- person opportunities with our community; hold court and public meetings with the limitations on gatherings and to ensure a safe environment; provide distanced office space, sanitizing supplies and needed PPE as city facilities open; receive ordered vehicles in a timely manner. • City Management/City Attorney-Marty Wine • Key Accomplishments: Helping the council achieve their goals; placed the local option levy on the ballot and focused on communication surrounding that; completed the performance audit that helps report what city departments are doing; began an effort to become more data informed and make effort to better measure and report to the community the work of the city by implementing a `report card'; refreshed the Strategic Plan; adapted services for COVID-19; City Attorney's budget continues to support city departments and help with changes to the city code. • FY 2021: Will continue to refresh the Strategic plan by gathering internal and external input and adopting the refreshed version; • Challenges: continue to offer a phased in approach of city services as we move past the COVID-19 era. • Human Resources/Risk-Dana Barrett • Key Accomplishments: Enhanced citywide recruitment efforts with advertising relationship building and diversity; focused on data enhancement by hosting lean six Sigma training established workplans; launched a new employee recognition City of Tigard Budget Committee Page 5 program; transitioned to a new Worker's Compensation carrier, which led to a reduction in costs; created temporary policies and protocols in the COVID-19 era, following federal legislation and public health recommendations. • FY 2021: In response to council goal on innovation and a performance audit metric, we will design and launch an innovation bonus program to incentivize improvement and new approaches to serving our community; partner with TTSD to move city toward external equity auditing and removing barriers; develop supervisor/leadership skills for staff; finalize policy and training that was stopped due to COVID,including evaluating safety procedures in light of COVID. • Challenges: COVID has created the following challenges-staff shortfalls-leave or reduced hours; training program stopped; remote work will create barriers to engaging staff and relationships; building a partnership with TTSD and Unite Oregon to help guide the city's external equity service audit efforts will be difficult with social distancing requirements. • Community Development-Kenny Asher • Key Accomplishments: In this COVID environment, the Building Division has kept Tigard economy going, with construction, inspections and permitting continuing to be done remotely;it's been another good year-Tigard continues to grow with several multi-family housing projects coming up for permitting. Planning-active in affordable housing by amending Title 18 t allow missing middle housing types; adopting an Affordable Housing Plan as well as a adopting a Complete Streets Policy; secured funding for a plan study of 99W and Safe Routes To School; applying for funding for sidewalks and crossings around schools; completed the vision for the Tigard Heritage Trail and Rotary Plaza; oversaw Southwest Corridor and River Terrace Expansion projects which have many layers; worked on partnership with Untie Oregon. • FY 2021: Building-Implement electronic document review; initiate a customer experience survey; maintain service levels; fill key positions for stabilization based on the performance audit outcome; support SDC Program Improvement Project. Planning: Of note that every corner of the city is being planned for now: Washington Square Regional Center Update (20 years old); River Terrace concept planning; Tigard Employment Lands Tomorrow; SW Corridor planning and Transportation System Update; • Challenges: Technology, Equity and Public Health-remote operations and non- integrated permitting programs require new technology; limited social contact can mean poor representation in planning processes. • Public Works-Brian Rager/Joe Barrett • Key Accomplishments: Focused on 5 areas-staff and structure-received help from outside firm-Parks had some supervisor overload issues, as well as span of control concerns in Engineering; Asset Management-new enterprise software replacement; Planning and Strategy/Facility Planning; Support council goals-communication and outreach; promote economic growth and community vitality; enhance walkability and pedestrian connectivity and CIP oversight • FY 2021: Implement the new Asset Management System; Large Capital Improvement Projects; Utility rate study, as well as water, Water SDC, Sewer, Sewer SDC and Street Maintenance rate studies. City of Tigard Budget Committee Page 6 • Challenges: Facility Limitations-space and building conditions and non-conforming use of downtown; Parks Maintenance-oncoming parks-maintenance issues; higher level of maintenance on some oncoming parks; COVID-19 effect on key funds- Parks Maintenance and transportation funds; workforce learning to their jobs in a new way; staff turnover due to competition with other agencies and private sector. • Capital Improvement Plan-Lori Faha • Key Accomplishments: 55 projects in current year; 11 projects are completed; notable projects: Tigard Street Heritage Trail/Plaza/restroom; Pavement Management Program; Greenfield Street water line and street; adopted ADA plan; addressed system backlogs through major maintenance program; continued design and construction through COVID-19. • FY 2021: Parks-17 planned, 5+ to be completed; Streets 17 planned 5 to be completed;Water-12 planned 5 to be completed; Sewer-4 planned and 3 completed; Storm-8 planned and 4 completed; Faciities-3 planned and 2 completed (PW Facility siting, remodel of existing facilities. • Challenges: COVID-1-unknown impacts of funding sources; potential for construction de-escalation; project delivery interruptions; with a large CIP, need to have the ability to fill vacancies and locate desk space; working on other city projects like light rail, urban growth expansion, new computer system, traffic, parking issues, response and programs. 6. Issue Paper Discussion i. COVID Response-Toby LaFrance-Informational paper only. We are able to provide our services differently to respond to the community's needs. Between the Tigard Cares and Wrapped programs, as well as the Tigard Utility Bill Assistance and Low Income programs, we are contributing $1.2 million toward community assistance between now and the end of December.We have delayed rate increases for 6 months to begin in January, 2021. ii. Parks Maintenance-Brian Rager/Joe Barrett. This paper was brought up to the budget committee last year and the committee asked that it be brought back this year. The FY 21 budget does have the service increases for the new parks. The Parks Utility Fund needs a new revenue source for those service level increases in order to maintain the new park assets that are coming online. We are seeking committee direction on a funding source for the fund. We basically have two sources: additional general fund or an increase in our park and recreation fee. iii. Discussion: COVID -Councilor Anderson would like to see if there is any money to be found to help with the city business community. Toby responded that the first choice would be the Emergency Reserve fund -Councilor Lueb moving into phase 1, there will be more work to do, like cleaning buildings and dog parks, etc., is there something in the budget to comply with these additional needs? City Manager Marty Wine said that the city is working now on plans for reopening, staffing, retrofitting physical spaces, etc. Because they are COVID related,we may be reimbursed for some of these expense. -Tim Cadman-concerned about the revenue impact of COVID, like property defaults that would affect property tax revenue, less driving would affect the gas tax funds, and if utility bills go unpaid. Has the city looked at this?Toby replied that yes, finance staff have met and produced the revised forecast. Many things are unknown at this time. City of Tigard Budget Committee Page 7 The proposed budget does have the revised forecast numbers that reduce revenues where we know that is occurring. We will be closely monitoring revenues. -Councilor Newton stated that we may need to spend more money in a few months to further help businesses and the community. Also we may need to delay rate increases. -Clifford Rone stated that predictions and forecasts that he has read state that the recovery could take a couple of years. He could see revenue in the Transient Lodging Tax not recovering very quickly with the CDC guidelines, etc., as well as restaurant revenue. PARKS -Toby said that there is a $450,000 increase in Parks Maintenance with the new parks, and it can be funded by some combination of additional general fund, increase in the Parks and Recreation Fee at $1.52, which would be implemented in January with the other increases, or fund balance. -Mayor Snider and other budget committee members commented that the parks decision will have to be made after the levy outcome is known. -Councilor Goodhouse suggested a phase in approach-looking at staffing for River Terrace now and other parks later when they come onboard. Additionally, look at maybe having downtown businesses pay for maintenance at Universal Plaza. 7. Budget Committee for Discussion and Follow-Up Requests a. WIFI Hotspots b. Small Tools & Equipment in Police-64% increase Lisa Shaw, Police answered by explaining that this increase is due to funds received from seized materials and cash from drug interdiction work based on the DEA task force that Police is a member. The additional money will fund the replacement of outdate dashcam equipment and other equipment for the Police Department. c. Community Events dollars d. MLG/Tri-Met e. Parks Maintenance f. Police Budget Package g. Levy Results The meeting was recessed at 3:45pm until Thursday,May 2151 Liz Lutz, Finance Department ATTEST: Chris Bence,Secretary City of Tigard Budget Committee Page 8