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05/21/2018 - Summary City of Tigard Budget Committee Summary Monday,May 21,2018, 6:30 PM Public Works Auditorium,Tigard, Oregon 97223 MEMBERS PRESENT (11): Stephanie Veal, Clifford Rone,Tim Cadman,Tom Schweizer, Chris Bence,Liz Newton, Marc Woodard,Jason Snider,John Goodhouse,Tom Anderson,John Cook MEMBERS ABSENT (0): STAFF PRESENT: Marty Wine-City Manager,Toby LaFrance-Finance and Information Services Director,Joe Barrett-Sr. Management Analyst, Eric Zimmerman-Assistant City Manager, Kathy McAlpine -Police Chief,Kenny Asher - Community Development Director,Brian Rager—Public Works Director, Dana Bennett—Human Resources Director,Nadine Robinson, Central Seri.-ices Director,Margaret Barnes—Library Director, Shelby Rihala, City Attorney 1. Approve minutes from the 5/07/18 meeting- It was moved and 2°d to approve the minutes as written. Motion passed. 2. Budget Message Recap—Marry Wine There was a presentation from City Manager Wine providing a recap of the budget message (attached) Overall (96%),Tigard residents are satisfied with the city's services and 80%are satisfied with the value they receive for the tax dollars. Given this, the city is facing two challenges: 1) Tigard is growing and neither existing nor new development"sustains"itself with the revenue it generates,and 2) like all local governments in Oregon,revenues grow more slowly than expenditures (the Measure 50 structural problem). To manage these challenges Tigard has taken steps in the past to curb cost growth: total number of city staff has grown less than 1% Oust one position) in ten years, sworn police officers have decreased from 74 to 72 in ten years, employees pay a portion of their health care, deferred needed repairs, and drawn from emergency reserves. The proposed budget goes even further and makes reductions over the next two or three years,which result in a lower but 10-year sustainable budget. The city is proposing a budget that creates a reactive city that is less safe and sound. It sees General Fund reductions of roughly$2.5 mil each year in FY 19 and FY 20. It assumes no new resources (no operational levy), only addresses problems as they arise. The two main goals to building the proposed budget for FY 19 were: 1) make city services sustainable for up to ten years,and 2) Match level of city's services with Tigard's growth (growth factored at 1.7% annually). This means that expenditures are forecasted to grown rou hl 6%annually with revenue seeing an annual 3.5%growth. City of Tigard Budget Committee Page 1 This,as always,is a balanced budget. Tigard will continue to live within its means for the next decade. In order to achieve this, cuts need to be made now and the savings banked to sustain us over the next decade. 3. Public Comment There were seventeen citizen's providing comments. A number of the speakers touched on multiple topics. Speaker Topic Theme Robert Cousinau Peer Court Retain neer Court,reduces recidivism Becky Johnson Parks and Recreation Concert in the Parks,recreation creates community Bill Monahan Police,Peer Court Supports but would like to see "deep dive" and strategic plan to ensure structure of the department is correct for today and for future. Need to find a way to keep Peer Court Kirsten Curtis Peer Court Current judge on Peer Court,keep the program, reduces recidivism,will save money in the long run Bill Montgomery- Parks and Recreation Overall support Linda Monahan Library, Overall Three questions for the committee: Spending 1. Why would committee go along with a budget the reflects spending priorities of a council that has for too long funded the city's budget off the rails and thus prompted a levy for operating costs? 2. Does the proposed budget reflect focus on core services? 3. Has leadership of the city taken their fair share of cuts? Why is travel and training still at$313,205 including $50k to Mayor and Council? Why are there no dollars for performance audits? Agrees with the proposed budget of eliminating recreation programming—it is not a core service. Proponent of elected officials not being compensated —understands the workload but should be"in it" for altruistic reasons. Library—not just brick and mortar but hub of community Measures must be taken to reset budget priorities. Richard Carlson Peer Court Current judge on Peer Court,keep the program, reduces recidivism Jeff Hering Police TPOA—why make 10 years of cuts in two years... is this the smartest way? City grows, needs for Police services grown,number of officers does not. What are the City's priorities? Current response time inadequate (traffic,growth, etc.) This didn't happen yesterday... why wasn't this addressed over the past decade? City of Tigard Budget Committee Page 2 Speaker Topic Theme Kristan Rinell Police,SROs Current SRO,why decimate the SRO program down to one SRO,why cut traffic unit,why cut Peer Court? Shootings increasing at schools should we cut now? We are cutting while other law enforcement agencies expand and offer incentives to new hires to attract the best shouldn't weP Carin Grover CERT CERT is now a non-profit organization and fund raising has started. Requested consideration of a donation to the new entity. Steve Reynolds CERT Proposed plans to keep program (handed out to the Committee during comments) 1. Maintain current$30k budget for at least 1 year as transition period. 2 $15k a year to deliver two basic traitungs plus other monthly disaster-preparation actin ities 3. $7.5k a year for one basic training plus other monthly disaster-preparation training Wayne Gross Parks and Recreation Maintain funding for recreation Charissa Jones Parks and Recreation Tualatin Riverkeepers,maintain parks and recreation as a core service. Programming should be more equitable and maintained. Ted Mayhugh Overall spending,Police Need to spend our money well,Police are the only employee that go to work with life on the line,need to keep them funded. Katie Hams Library Chair of Library Board The Library is a core service and funding should remain a,.:piopo:.ed with no further reductions Ken Barker Quality of Life,Parks Volunteers help increase the services the City can and Recreation provide,recreation improves the quality of life and may reduce the needs for Police services. Kate Rogers -accept the Budget as Lexy Task Force Member Programs that are being Proposed reduced are so important but cuts must be made now to achieve sustainability for City. The citizens did not vote to save these programs. Urges the Budget Committee to accept the budget as proposed 4. City Staff Presentations The City's Department Directors provided short presentations (attached) on their proposed reductions and the services deemed essential for the proposed FY 19 budget as well as comments of future reductions if necessary. a. Police—Chief McAlpine Reductions: SRO program (from four to one), elimination of Traffic Unit, elimination of Peer Court program,vacant patrol positions Essential: 911 call responsiveness, felony and select misdemeanor crimes investigations b. Library—Director Barnes Reductions: Elimination of 2.1 FTE and 64% of on-call budget, 75%reduction in programming budget, 25%reduction in catalog materials budget City of Tigard Budget Committee Page 3 Essential: Open hours,limited story times and other children and adult programs, staffing of the public service desk c. FIS—Director LaFrance Reductions: Analytical services for SDC's, capital funds,grants, and revenues, elimination of passport services, elimination of public Wi-Fi except at the Library Essential: Core financial functions, appropriate levels of IT services,utility billing d. Central Services—Director Robinson Reductions: Elimination of contract for scanning microfilm and replacement equipment,reduction in training in all divisions, defer maintenance of the PW parking lot Essential: Providing records through the online portal with a focus on current records scanned at departmental level,preventative and corrective maintenance of all equipment and buildings e. Citi*Manager's Office and City Council—Assistant City Manager Zimmerman Reductions: Elimination of Assistant to City Manager position,elimination of federal lobbying contract,reduction of HR Business Partner position by 0.20 FTE, reduction in professional services contract,reduction in training budget, elimination of internship/fellowship program Essential: Oversight of City Departments,providing solid risk management and human resource services for Departments f. Community Development—Director Asher Reductions: Elimination of Economic Development Manager and Community Engagement Assistant positions, shifting of Redevelopment Manager position to the URA. Essential: Administration of existing programs, outreach continuation,planning and permitting g. Public Works—Director Raper Reductions: Elimination of vacant 1.60 FTE in Recreation Program, elimination of staff support for CERT,reduction in contribution to the Emergency Management Cooperative Essential: Park maintenance, emergency management program 5. Budget Committee Discussion and Questions The Budget Committee opened discussions and questions to the city's Directors. a. Councilor Snider questioned if CERT could or should be budget in the utility or other funds and a large portion of CERT is to ensure the city's resources are accounted for in a disaster. Director Rager agreed that this should be examined. b. Councilor Woodard questioned if Public Works is the correct location for the city's recreation program or if it could possibly be its own department. Councilor Woodard sighted similarities between the Library and recreation, the Police (Peer Court) and recreation, and CD's planning and recreation. Councilor Woodard questioned if recreation has been fully given a chance to bloom and stated that it is a core service. c. Committee member Bence stated that both the SRO and Peer Court programs are good. Asked why we are keeping one SRO and eliminating Peer Court. Chief McAlpine stated that the Police Department is mandated to respond to 911 calls and the SRO position will serve this mandate. The SRO is also partially funded ($57k) by the school district. d. Committee member Rone stated that he is not ready to vote on the budget as it is presented and has two observations: City of Tigard Budget Committee Page 4 1) Should the city look at deferring capital projects? Adding infrastructure adds to operational costs. 2) Can we stretch the reductions over a longer time period (3 or 4 years rather than 2). e. Councilor Snider asked that if we didn't reduce the SRO program or eliminate the Peer Court program, what would the Police look at eliminating. The Chief said that there are no good options but it would likely be two officer positions and overtime, there would be no choice. The SROs were likely to be reduced to two in order right size the program regardless. f. Mayor Cook agreed in principal with Committee member Rone's capital project reduction in theory but doesn't want lose sight of grant funding or project paid largely by other agencies. Also postponing construction will likely increase the overall cost of the projects. g. Committee member Newton asked what the reductions in Police will do to response times in the future. Chief McAlpine commented that with the initial reductions in the SRO and traffic units,patrol may actually see a drop in response times initially. Over time,however,this won't last as population continues to grow and traffic increases. Committee member Newton follow up with wondering if the school district would be agreeable to picking up more of a share of the SRO program. City Manager Wine responded with the school district has not shown interest in that scenario to date. h. Committee member Newton asked about the long term plan for parks and what future reductions may be. Director Rager stated that a second round of reductions would likely mean to water service to the parks and no expansion of maintenance levels. i. Committee member Newton asked about retaining open hours at the Library and what it means to everything else there. Would it be major cuts to keep the doors open. Director Barnes responded with yes, there will be major cuts to the materials purchases. j. Councilor Goodhouse stated that the city needs an overall solution and a path going forward rather than simply nickel and dime solutions. Cuts are needed now to be able to weather a recession. k. Councilor Woodard questioned if there is the opportunity for recreation to generate revenue. Director Rager stated that the recreation program can, and should,generate revenue, especially through sponsorships,but it is not there in the program's growth yet. 1. Councilor Woodard agreed with Committee member Rone in looking at possibility of a three or four year look at reductions rather than just a two year look. Should include performance audits during this time as well. in. Committee member Rone asked about deferment of major maintenance and the$5004600k in the program and why the parks portion is only from SDCs. Director LaFrance responded that the increased development dollars are allowing us to use the SDCs to fund the major maintenance in the parks. n. Committee member Rone agrees to Mayor Cook's comment about retaining capital projects that are heavily funded through grants or other agency's funds. o. Committee member Rone asked Councilor Woodard how he sees the city getting through the budget this year. Mentions efficiency audits but is asking how he plans to get through this year. Councilor Woodard states that audits must be discussed in the future to help us solve our issues and right now believes that the reduction should be stretched out. Councilor Snider requested that staff prepare the look at stretching the cuts over three or four years rather than just the two. No motions were made. The meeting was recessed at 9:15 pm. Joe ett,Sr agement Analyst ATTEST: Cliffo Rone,Secretary The next Budget Committee meeting will be held on Tuesday, May 29,2018 at the Public Works Auditorium, beginning at 6.30pm. City of Tigard Budget Committee Page 5