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05/12/1997 - Minutes City of Tigard, Oregon Budget Committee Meeting Minutes May 12, 1997 Members Present: George Burgess, Craig Dirksen, Gene Farnstrom,Paul Hunt, Brian Moore, Jim Nicoli, Joyce Patton, Bob Rohlf, Ken Scheckla, and Max Williams. Staff Present: Wayne Lowry, Bill Monahan, and Michelle Wareing. Guests Present: Kathy Davis, Library Director; Chief Ron Goodpaster, Police; and Ed Wegner, Public Works Director. Call to Order: The meeting was called to order at 6:36pm by Joyce Patton, Committee Chair. The record shows that all Committee members were present. Minutes: The May 5, 1997 minutes were approved as written. MSP Five Year Plan: Wayne Lowry distributed three replacement pages for the proposed 1997/98 Budget. Wayne stated that the new budget pages reflected the addition of the 1997/98 proposed budget figures to the 5 Year Plan model. The projected numbers for 2000/01 are slightly different with the addition of the 1997/98 figures. On page 19, the Ending Fund balance was projected to be $1.6 million in 2000/01,but is now projected to be $2.2 million. In 2000/01, the End Balance will be half of what the current Balance is. Wayne distributed a package of graphs showing the effects of M47 on the 5 Year Plan. Wayne stated that the 5 Year Plan model has been used for the last fifteen years in the City of Tigard. Every five years, the City asks the voters to approve a tax base increase to fund the next five year plan. The last four times the City has asked for a tax increase, the voters have approved the request. In 1994,the voters approved a$1.7 million increase. Part of the increase was going to be used to fund three new police officer positions a year over six years for a total of 18 new officers by the year 2000/01. With the passage of M47, this will no longer be possible. Wayne reported that the 1997/98 proposed budget makes the assumption that M47 will be enacted and that the City will lose $2.2 million in revenues. The actual loss of revenues due to M47 could be greater or less than the projected $2.2 million. The $2.2 million figure was determined by the State. However, if M50 passes, there will not be as much of a loss in revenue. It is projected that if M50 passes,the loss in revenue will be 2/3 less than if M47 stands. That means the City will only lose about $800,000 in revenues. The City will be able to fulfill most of the 5 Year Plan, if M50 passes. 1 Wayne stated that the first graph in the package shows the decline of the Ending Fund Balance (EFB)with the implementation of M47. By the year 2003/04, the EFB will be in the negative. The second graph shows the effect of M47 on the General Fund Revenue. In 1994, the voters passed a$.62 tax increase which calculates to $1.7 million increase in revenues per year. This increase was going to have a significant impact on the General Fund. With the passage of M47, the City will not be able to collect this increase. On the graph are three lines, the 1994 line shows what would have happened to the General Fund if M47 had not passed and the approved tax increase was collected. The 1997 line has a large drop in 1997/98 which is due to the loss of $2.2 million in revenues. The third line is the Revenue Sharing line. In 1994, the City was expecting to lose State Revenue Sharing funds,however this did not happen. The Revenue Share line depicts what would have happened to the General Fund if M47 passed and the City lost the State Revenue taxes. The 5 Year Plan did not include the State Revenue taxes, so the money received will help make up the $2.2 million loss from M47. The City will receive about $3.8 million from 95/96 through 00/01 from State Revenue Sharing funds. Ken Scheckla asked Wayne what he thought might happen to revenue sharing in the future? Wayne responded that the cutting of revenue sharing is most likely not going to happen. In November 1996, voters passed a law that State mandated programs for local governments must be paid by the State. Wayne stated that in preparing for M47, several positions were frozen and that no new positions were expected to be added in the future. However, after reviewing current and future revenue, it was decided that the positions could be unfrozen and that several positions could be added in the future. In 2001, the City will have more employees than it does now. The reduction in the General Fund mainly affects the Police Department and the Library since their budgets are funded by the General Fund. Wayne reported that four other positions in the City are somewhat affected by the reduction in the General Fund,but tonight he was only going to discuss the Library and the Police. The third graph shows the difference between how many officers were to be hired under the 5 Year Plan and how many can be hired after M47. Under the 5 Year Plan,the Police Department would have had 75 positions in 2000/01. Under M47, there will be 69 positions in 2000/01. The new plan is to add two positions in 1998/99, one position in 1999/00 and two in 2000/01. Under M47, the City is allowed to sell bonds to fund the purchase of police cars and fire trucks. The City has always used operating funds to purchase its vehicles. Wayne stated that he has taken the money allocated for police car purchases out of operating budget for 1999/00 and beyond in anticipation that City will ask the voters to pass bonds to purchase police cars. The fourth graph depicts the difference between the 5 Year Plan FTE positions and the M47 FTE positions in the Library. In 2000/01, it was projected that the Library would have 30.1 positions, but now the Library will only have 25.6 positions. The Library plans to maintain its same level of service and circulation with the current staffing levels. Library staff will be increased by .5 2 FTE per year. Since the Library budget is completely dependent on tax revenues, it will have to make cuts. Paul Hunt stated that the Budget Committee approved unfreezing the Library positions at the last meeting. He wanted to know if the 24.1 FTE for 1997/98 included the unfrozen positions. Wayne responded that the 24.1 FTE does include the unfrozen position and that the Library can hire the unfrozen position without exceeding the 24.1 FTE limit. Brian Moore asked if M50 doesn't pass, will M47 go to Court for constitutionality issues? Wayne responded that M47 is already being reviewed by the Courts. There are questions about how many issues were included in the measure and the voter turn-out requirements. Regardless of what happens,budgets must be prepared for the 1997/98 fiscal year. The City and other governments cannot wait for complete answers. Tax bills must be sent out and City business must continue. Police Department Budget: Chief Ron Goodpaster presented his department's budget and goals for 1997/98. The Chief stated that the Police Department's main focus right now is on patrol. The Department currently has 59 paid personnel with 5 current vacancies and 11 reserve officers. The Chief stated that there has been a big turn-over this year(FY 1996/97) in the Department. Several senior officers have retired and other staff have left for jobs outside the City. In 1997/98, it is expected that three more senior officers will be retiring. The Chief reported that it takes 8 to 10 months to hire a police officer and have him or her on the street working. The Chief stated that the two frozen personnel positions are included in the 1997/98 budget. The 1997/98 budget is very lean,materials and equipment have been cut significantly. Several crime prevention programs such as School Resource Officer(SRO), G.R.E.A.T. and DARE, have already been cut this year. The SRO for the middle school has already been taken out and put back on to patrol. The Public Information Officer(PIO)position has not been refilled and Neighborhood Watch programs have been stopped for now. The Chief has taken on some of the Public Information Officer's responsibilities. The rest of the PIO responsibilities have been distributed amongst three officers. It is taking much longer to respond to citizen's requests for information. Since the main focus of the Police is patrol and protecting the City, other programs had to be put on hold. The Chief stated that there are two specialized positions in the Department. Those positions are the School Resource Officers (SRO). These are critical positions and must be maintained. The middle school SRO was taken out of the school to assist with patrol. The SRO will be returned to the school in the fall. It was determined that the high school SRO could not be taken out of the school. The Police would spend too much time going back and forth to the high school and handling problems that the SRO already handles. The Chief reported that the Public Information/Crime Prevention position is going to be downgraded to a civilian position. The Department will save money by using sworn officers where needed instead of running such programs. Also, Peer Court is currently managed by a 3 sworn officer,but in the future, the program will be turned over to a civilian. The Chief stated that these are very important functions and that they must continue. Paul Hunt stated that he disagreed with not putting replacement police cars into the operating budget. What happens if the City goes out for bonds to fund the car purchases and it gets rejected? How will the City replace the cars? Wayne responded that the 1997/98 budget has replacement car costs coming out of the operating budget. After 1999, he has taken car replacement costs out of the operating budget. This was done as a possible funding strategy. Replacement costs can be added back into the operating budget and still keep the EFB above $1.5 million in 2000/01. This strategy does not affect the 1997/98 budget. Ken Scheckla asked the Chief if the Police Department was interested in the photo radar program? The Chief responded that they were very interested,however it is not legal right now to use photo radar in the City of Tigard. The State legislature is reviewing photo radar and the legislature must pass a law before the City can use it. Also,photo radar is not generating a lot of revenue. It is just breaking even or making a little bit of money. Joyce Patton reminded the Committee that questions should be about the 1997/98 budget proposal. Jim Nicoli asked how much money is the City getting from the 1994 tax base? Wayne responded that in 1996/97, the City received all the money generated by the new tax base which was about $6.5 million. In 1997/98, the City will lose $2.2 million from what it was supposed to receive. On page 8 of the budget, the proposed tax base amount for 1997/98 is $6.8 million. On page 24, current taxes for 1996/97 were $6.3 million and in 1997/98, current taxes are projected to be only$4.4 million. The City received money from its new tax base for only one year (1996/97) and then lost the base plus some in 1997/98 due to M47 estimated impacts. Jim Nicoli asked if the City did not pass its bond measure in 1994, how much would it be receiving in 1997/98? Wayne responded that the City would have received $4.9 million in 1997/98 if the 1994 measure and M47 had not been passed . Under M47, the City is going to receive $4.5 million in 1997/98. Craig Dirksen asked if the tax base had not passed and M47 had, how much would the City be receiving in 1997/98? Wayne responded that the City would have received approximately $4 million. Craig Dirksen then asked was it helpful to the City that the tax base was passed? Wayne stated yes, it was helpful because the City received its full tax increase for one year. But, basically M47 ignores the fact that the voters passed the tax base in 1994. The increase in taxes is partially due to new construction. Jim Nicoli asked if volunteers could teach some of the police programs. The Chief responded that the DARE and G.R.E.A.T. programs must be taught by a sworn officer. The middle school SRO does a lot of crime investigation, so that position also requires a sworn officer. However, he is looking at civilian support for the Peer Court program. 4 The Chief stated that the department is losing one position in 1997/98. The position is for code enforcement which is being turned over to Community Development. Even though position is being taken away, so is the work that comes with it. Currently, Community Service Officers (CSO)provide code enforcement support. In 1997/98, the CSO's will be able to concentrate fully on police matters. Gene Farnstrom noted that on page 65 of the Budget, Travel &Training has been drastically reduced. Gene asked if there is going to be a big turn-over in personnel won't there be a problem in training the new officers without much money? The Chief responded that it could be a problem depending on the type of people that are hired. New officers with no experience go to a Police Academy and then are trained in-house in a 23 week field training program. The real training costs are incurred when seasoned officer must be sent to classes outside the area for training in special fields. Max Williams asked how many patrol cars did the Police have? The Chief responded fourteen cars. Max asked why was the Police replacing half of its patrol units? Wayne responded that the seven cars budgeted for replacement are not all patrol vehicles. The Police are replacing four patrol, one administrative and two detective cars. Max Williams asked the Chief, how does he(the Chief) think Tigard PD will compare to other cities police departments after the end of the 5 Year Plan? How much will the Department be in the hole? The Chief responded that he cannot predict that currently. There is a lot of uncertainty in the future. Much depends on whether or not M50 passes. M47 affects every city differently. Max asked taking statistics such as population and crime levels,how far in the hole will the Police be in five years? The Chief responded that taking into account statistics now, the Department is already under staffed and that in 5 years the situation will be worse. Paul Hunt stated that the Chief has been very accommodating in cutting his budget more than other departments. The Police building expansion was cut earlier and now the Police budget has been cut to the bone. It seems that the other departments want everything and the Police Department is making all the cuts. Wayne stated that every department in the City made a 10% cut to materials and services. So every department is similar in that regard. As far as capital outlay, some departments were denied last year and now the money must be spent in 1997/98. Wayne pointed out that no current positions have been cut, only future positions. Joyce Patton noted that on page 65 of the Budget, Special Department Expenses went from $80,790 in 1996/97 to $0 in 1997/98. She asked why that was. Neither the Chief nor Wayne could answer her at the time. Wayne stated that he would review the information and bring the answer to the next meeting. Craig Dirksen stated that he was distressed to see the Police Department not filling all the positions promised in the 5 Year Plan. As the population of Tigard grows, he wants to see the number of patrol units grow. Craig stated that he wants all of the 5 Year Plan positions added. 5 Bob Rohlf stated that he was more upset with the cuts to the crime prevention programs. Library Budget: Kathy Davis, Library Director,presented her department's budget and goals. The 1997/98 budget has been reduced greatly and is just a maintenance budget. Kathy stated that before she discusses the budget, she wanted to explain the Library's relationship with the Washington County Cooperative Library Services (WCCLS). WCCLS is made up of 12 member libraries that reside in Washington County. Each library signs a three year contract to participate in the program. As part of the agreement, every library in the program offers free library service to any citizen of Washington County. Citizens can use which ever library is most convenient for them. The libraries are compensated by the County for providing this service. Even though the libraries belong to the program, they are still competition with each other. Each library wants as many customers as possible because it increases the circulation rates. Kathy stated that in 1996 the library levy was passed with 58%yes votes and a voter turn-out rate of 51%. This is important to the Tigard Library funding issue and will be discussed later. The new levy's rate is $.32/$1,000 assessed value. As assessed values increase so does the amount of revenue the Library receives. Some of the benefits of belonging to the to WCCLS are that the Library is fully automated. The Library and its customers have access to a county-wide database system. The system lists all library holdings in the County. The Library has free access to the courier service which takes books from one library to another. The Library is able to offer its customers several types of reference assistance. The libraries are able to share costs on programs and large purchases. Finally, they share public relation costs. The reimbursement from the County is based on each libraries circulation rate. The libraries receive $1.82/item checked out. For FY 1996/97, the Tigard library received$937,000 in reimbursement revenues. Reimbursement revenues are brought into the City by the Library,but the funds are put into the General Fund. From April 1992 to April 1997 the number of registered users has increased 40%. Circulation increased 84%,program attendance increased 190%, reference questions increased 379% and volunteer usage increased 62%. Kathy noted that circulation has increased more that registration which means current users are using the Library more. Kathy stated that the Library funding comes from two areas, the City and the County. In 1995/96, the City provided 32% and the County provided 62% from reimbursement. In 1996/97, the City provided 30% and the County provided 70% of the Library's budget. In 1997/98, it is projected that the City will provide 30% and the County 70% of the budget. If M50 passes, the allocations will be 24% City and 76% County for 1997/98. Both allocations for 1997/98 assume the same bottom line amount. 6 Sao" Kathy noted earlier that the 1996 Library bond passed with a 51%voter turn-out. This important if M50 passes. M50 states that if a Library bond was passed in 1996 and had a turn-out rate over 50%, then the revenues generated are not subject to the 17%reduction. Kathy stated that she wanted to address the issue of reducing Library hours to save money. The average circulation per hour is 185 items. The County reimburses the Library $1.82 per item. In one hour, the Library makes $336.70. An average employee wage with benefits is $15/hour. An average of 12 employees work per hour. If the Library closed one hour early, the City would save only$180 ($15 x 12) in salary and lose $336.70 in reimbursement revenues Kathy stated that by maintaining adequate levels of funding the Library is able to stay competitive with neighboring libraries. So far this year(1996/97), the Library has earned $300,000 in reimbursement revenues from non-Tigard users. By attracting more customers with convenient hours, the circulation rate grows and so does the reimbursement revenues. Reimbursement revenues allows the Library to move to higher levels of service with a smaller impact on the General Fund. Craig Dirksen asked is there a limit on how much a library can receive in reimbursement revenues? Max Williams asked if it would be beneficial to increase the circulation rate dramatically? Kathy responded that yes, reimbursement can be limited. The Library has to sign a three year contract with WCCLS and project what its circulation levels will be. If a library exceeds its projected circulation, there is a short fall in WCCLS budget. All the libraries must share in short fall equally. Joyce Patton noted that on page 70 of the Budget, that for 1997/98 the Library is focusing on upgrading computer equipment. However, on page 71, the MicroComputer Support Technician position is disappearing. Why is that? Kathy responded that the position is actually being renamed and having other duties assigned to it. The new position is listed on page 77, Technical Services Specialist. Max Williams asked why Personal Services, on page 69, has an increase of$80,000,but FTE positions have not been increased that much. Kathy responded that the increases came from the Human Resources department. The increase includes raises, cost of living and position upgrades. At this time, a member of the audience started asking questions of Kathy Davis. Joyce Patton and Bill Monahan reviewed Budget Committee procedures. The Budget Committee meetings are open to public, so the public can listen and watch the budget process. However, the Meeting is not open to public comment or questions, unless the Chairperson chooses to open the Meeting to public participation. The Chairperson will state when the Committee will accept public comments and questions. 7 }�iYIW Ken Scheckla asked if the Library receives or solicits grants? Kathy responded that the Library does receive grants and that she will seek more grants in the future. Bob Rohlf asked if the Library is using technology to make up for the loss of positions? Kathy responded that the Library has a self check-out program that is very helpful and has cut down on check-out time. Bob Rohlf asked if the use of technology means that the number of FTE needed can be reduced or slow down the hiring needs? Kathy responded with every new form of technology there is a learning curve. Staff and customers must be trained on the new equipment and/or software which takes time. As the Library provides mores services and technology, it will need more employees not less. Gene Famstrom asked why the Library has two computer systems? Kathy responded that the Library maintains a city-run system and a WCCLS system called WILI. All WCCLS member must maintain and upgrade this system when instructed. The Library does not use the WILI system for City work. The WILI system is for customers to use the system to access the WCCLS computerized card catalog. Joyce Patton stated that she was opening the Budget Committee meeting up to public questions and comments. Lonn Hoklin, Library Board Chairman, stated that the budget crisis has hit schools as well as the cities. Teachers are using the public libraries to make teaching packets and provide information to their students. The Library is a critical source to the community. Lonn, on behalf of the Library Board, urged the Budget Committee to support the Library program to the maximum. John Buttrell, a citizen, asked if it takes 8 to 10 months to hire a police officer, how is that reflected in the budget? The Chief responded that it takes 8 to 10 months from hiring until the officer is fully utilized. During the training months, the officer still needs to be paid Bill Monahan stated that the Police Department is anticipating the retirement of several officers. The Police would like to fill these positions before they are vacated, so new officers can be brought up to speed before the senior officers leave. Also, the Police Department is in the process of filling current vacancies and the positions that were unfrozen. John Bennett, Visioning Committee member, stated that the Visioning Committee has been reviewing the Library at its meetings. He believes that the Library is very important to the community and the Budget Committee must find ways to keep if going. Joyce Patton thanked the audience for its participation, questions and support of the Library. Joyce then called a five minute break before Park's presentation. The meeting was reconvened at 8:15pm. 8 Nwwv Park Budget: Ed Wegner, Public Work Director, presented the Parks Department budget and goals. The Parks Department is responsible for maintaining greenways and 11 parks in the City of Tigard. There is a total of 125 acres of greenway and 120 acres of park. Greenways are small parks that do not have picnic tables or play areas. The 1997/98 Budget includes only the current in-hand property. It doesn't include the Cook Park Expansion(23 acres)nor Metro Greenspaces acquisitions. The Parks Department manages all the parks and greenways with only 5 FTE and two half-time positions. In the 1997/98 Budget, Parks is asking that the two half-time positions be split into two separate positions. The Parks does hire temporary employees during the summer months. In the past, college students were hired for the temporary positions,but now looking for people that can work the six month period. Parks is hiring older people that can work from May 1 to September 1. The temporaries help cover the parks seven day a week. They spend four hours each day at the two major parks (Cook and Summerlake). The 1997/98 Budget is very lean. Several things had to be cut to meet the 10%reduction materials and services requirement. Bark dusting was cut by $7,000. Normally, spread bark dust once a year,but now experimenting with once every two years. Tree planting money has been removed from the operating budget. However, there is $240,000 in the tree replanting fund. The money is generated from development and tree mitigation requirements. Developers must replace all the trees that are removed during construction. The tree planting revenue is coming from the replacement fund. Parks is looking at cutting down its fertilizer use to help cut down on mowing. Cook Park and City Hall irrigation schedule will be fully computerized soon. The planting of annual flowers has been cut. However,perennials replaced the annuals, so don't have to replace every year. At Cook Park, some areas of the pathway are being allowed to return to their natural state. Two years ago, the City Council adopted American Disabilities Acts (ADA)requirements to be implemented at City facilities. Upgrades to Cook Park and City Hall have been completed. In 1997/98, Summerlake Park will need to be upgraded to meet ADA requirements. It will cost $17,000 to make these improvements. The ADA law states that any new development must meet ADA requirements. A major project is planned for Jack Park in 1997/98. The bike pathways must be redone. Currently, neither bikes nor strollers can use the bumpy pathways. There is no money in the Budget for a temporary band stand at Cook Park. The materials that were donated two years ago have begun to deteriorate. The floor and other parts of the stand need to be replaced. Local bands are not interested in assisting in fixing the temporary stand. The bands are waiting to see if the Cook Park expansion will provide a permanent stand. Like the Library, Parks is going to start using more volunteers. Fowler Middle School provided 120 volunteers to clean up Summerlake. Noah's Bagels employees cleared out underbrush from Tigard House area. Ed stated that he hopes that 1,000 to 1,500 volunteer hours will be provided 9 in 1997/98. However, volunteers cannot be used for maintenance jobs such as mowing. Volunteers can be used to help plant trees and clean up areas. Bob Rohlf asked if the 1997/98 Budget includes the foot bridge at Summerlake Park? Ed responded that the Park's budget does include the footbridge. Paul Hunt asked if gravel can be used on pathways and still meet ADA requirements? Ed responded that pathways must be solid concrete or asphalt. Jim Nicoli asked where did Parks get the figure of$240,000 in the tree replanting fund? Wayne responded that the fund currently has $70,000 in it,but the rest of the money will be collected in 1997/98. The amount has been calculated on the number of development projects that are currently being constructed. Jim Nicoli suggested that Parks not use any tax money to pay for the planting of trees. Parks should only be using the tree planting fund money. Ed Wegner stated that the Parks Department planted 120 trees last year. Not all of the trees were planted as part of park maintenance. Several trees were planted in conjunction with the building of the Winterlake bridge, others were donated and some trees had to be replaced due to storm damage. Ed stated that Parks will be using the tree replanting fund more, now that he knows that it exists. Jim Nicoli proposed that high maintenance projects be put into capital outlay. Jim suggested that certain maintenance programs be upgraded with capital outlay money, so maintenance programs can be run more efficiently. In the future, it seems that there will be more money for capital outlay than maintenance. Jim suggested that some of the money in the Capital Fund be put back into the General Fund and be reallocated to park maintenance. Bill Monahan stated that reallocation of the Capital Fund needs to be addressed by the City Council first. The Council will be reviewing this issue at its next meeting and their decision will guide the Budget Committee. Ken Scheckla asked what happened to the $100,000 donated by Mary Tupling? Wayne responded that on page 14 of the Budget, Park Levy Improvements fund has $191,137 in it. Of that figure, $100,000 of it is the Tupling donation. The money is in the Budget to be spent, but as of now, no project has been assigned to the money. No one has approached Bill Monahan with a project that the money could be used for. Ed stated that the money could be used to purchase more park space or upgrade some facilities. Bill Monahan stated that when the money is spent Mrs. Tupling needs to be honored. She was interested in wild flowers and park pathways. Ken Scheckla stated that he was concerned that the money would not be spent in time for Mr. Tupling to see how the money was used. George Burgess asked how the proposed Park and Recreation project was going to affect the Parks Department? Ed responded that he had met with the project committee to discuss how the 10 parks would be used and who would take care of them. The maintenance of the parks will be determined by whether or not the parks fall inside Tigard's city limits or outside. Joyce Patton stated that she was opening the Budget Committee meeting up to public questions and comments. Jim Hanson, citizen, stated that he had some concerns about Englewood Park. The Park was mowed once a week last year and this year he believes it has only been mowed once. He asked where does the operating fund for Parks come from? Ed Wegner responded that Parks is completely General Fund supported. Jim Hanson asked if the Parks Department had made 10% cuts like the rest of the City departments? Ed responded that Parks did make its 10% cuts to materials and services. Jim Hanson asked what happened to the staff that was cut after M47? Ed responded that current staff had not been cut. Jim Hanson asked if staff had not been cut, how come Englewood Park was not being mowed weekly. He stated that only a small portion of the Park has been mowed. He wanted to know what happened to all the mowers. Jim Nicoli responded that the amount of land that the Parks Department was responsible for had grown significantly, but neither the staff nor the budget to maintain the area had been increased. Jim Hanson asked Ed Wegner, how many times Englewood Park had been mowed this year? Ed responded that the Park had been mowed four times this year,but the amount of area that was mowed had been cut back. Ed stated that Cook Park and Summerlake Park were area parks and that they received more attention than neighborhood parks, such as Englewood. The large parks are used by more people and must be maintained at a higher level. Bill Monahan stated that the Budget Committee meeting was not the proper forum to discuss this issue. The purpose of the Budget Committee meetings was to discuss future projects and funding. Jim Nicoli stated that Mr. Hanson should address his questions to the Committee since they make the decisions regarding maintenance budgets. A discussion regarding the frequency of the mowing of Englewood Park ensued. Joyce Patton reiterated Mr. Hanson's concerns and stated that the Budget Committee would take his concerns into consideration when making budget allocations. Bill Monahan instructed Ed Wegner to meet with Mr. Hanson and the Englewood neighborhood association to discuss the mowing of Englewood Park. Joyce Patton closed the Budget Committee Meeting to public questions and comments. Budget Discussion: Paul Hunt stated that he wanted to discuss the budgets of the three departments that presented and possibly reducing the EFB. Paul stated that more police officers should be added to the budget and wanted to know how the extra staffing would affect the EFB? 11 tis�3' i� Brian Moore asked what was the purpose of the EFB? Wayne responded that the EFB is for the end of the 5 Year Plan. The EFB carries the City through its operations until a new tax base is approved by the voters. With the passage of M47 and possibly M50, the City cannot go to the voters in four years and request a tax base increase. Wayne stated he could not determine how long the City would need the EFB to support operations after the end of the 5 Year Plan. No one knows right now what type of funding options will be available after the 5 Year Plan ends. Craig Dirksen asked how much would it cost to hire one additional police officer? Wayne responded that the salary for one police officer for one year is about $70,000. If one additional police officer is added to the 1997/98 it will affect the EFB by $280,000 at the end of the 5 Year Plan. Wayne suggested that the Committee could approve moving one of the future to be hired positions into the 1997/98 budget. Wayne recommended that the Committee not front load the Budget by adding new positions. The future is to uncertain right now to make additions, however, bringing a future position forward is okay. George Burgess asked how does the Committee stand on the EFB. He stated that at the last Budget meeting, the members were concerned that the EFB was to low and at this meeting it is too high. The Committee needs to agree on how much the EFB should be at the end of the 5 Year Plan. George also stated that the 5 Year Plan was a promise to the voters and just because M47 was passed doesn't mean the City shouldn't fulfill those obligations. Bob Rohlf stated that the voters want a certain level of service,but they are not willing to pay for it. The City is not able to meet all its needs. The City needs to let the voters know how M47 is going to affect services. Jim Nicoli stated he is concerned about the Police Department. When the voters passed M47, they made the tax base increase null and void in 1997/98. Therefore, the original 5 Year Plan no longer exists. Craig Dirksen stated that he was concerned that the three departments that presented tonight have made major cuts and it seems that other departments haven't. Community Development has a huge increase in its budget for 1997/98. Craig stated that he knew the increase was due to the take over of Washington County Urban Services, but could the City afford to do that. Brian Moore responded that the Urban Services program is completely fee based and will not affect the City's tax revenues. The Urban Services program will pay for itself and will not affect the City's tax payers. Jim Nicoli and Brian Moore agreed that the voters do not understand how M47 is going to affect the programs they want supported. Max Williams asked how revenues are going to be generated in three or five years? He stated he does not want the EFB to go below staff recommendations until he knows how the City will 12 ii wow generate revenues in the future. Wayne responded that the City is reviewing several options to obtain funding in the future. Wayne stated that property taxes make up 50 - 60% of the General Fund. Most of the General Fund is dependent on tax base money. A part of the General Fund comes from franchise fees. The City can increase those fees. M47 states that cities can seek voter approval of temporary serial levies. The temporary levies could be used to fund police positions. However, the officers' positions would be dependent upon the continued passage of the levies. The City also has the option to impose a city sales tax or a business tax. Jim Nicoli asked the Chief how many police positions was he currently hiring? The Chief responded that the Department just hired two officers and is in the process of hiring one more person. The two new hires are currently in police academy and then will complete a 23 week field training program before they will be working the streets alone. Jim asked the Chief, if the Department could hire two more positions right now, could the Department handle it? The Chief responded that the Department could handle hiring two more people, but that it would have a major impact on the total budget. Bill Monahan stated that the Police Department is looking at replacing retiring senior officer positions before they officers retire. Basically, the Department will be doubling up on the positions for a few months during the transition. This will also affect the overall budget. It was asked how much would the Police Department save on salary expenses by hiring "rookies"to replace retiring senior officers. Wayne responded that a new hire salary is about 75- 80% of a senior officer pay. Ken Scheckla asked the Chief, if the Department could save on training costs by hiring already trained people from the Portland Police,who might be laid off soon? The Chief responded that he would like to hire Portland police officers, but there will still be training costs involved. All new officers must be trained in Tigard procedures and policies. Gene Farnstrom asked if two future police positions were moved into the 1997/98 budget, how would that affect the EFB at the end of the 5 Year Plan? Wayne responded that moving the positions up would affect the EFB by only$140,000 to $150,000 at the end of the 5 Year Plan. Joyce Patton stated that she wanted to table the discussions for the evening. The members needed to consider the three departments needs that were presented tonight, the EFB level and what the Committee wants for the City. Also, the Committee needs to hear the other departments proposals before making any decisions. Paul Hunt motioned that the Committee approve the moving of two future police positions into the 1997/98 budget, so the new officers could be on the streets by next year. Brian Moore stated that he agreed with Paul's motion, but the Committee needs to honor its agreement to hear all departments presentations before making any commitments. 13 Next Meeting: Joyce Patton instructed the Chief and Wayne to prepare new budget figures on how tonight's discussion about the Police Department would affect the Budget. Joyce asked Wayne how many departments were going to present at the next meeting? Wayne stated that Public Works, Engineering, Community Development, Aministration and Finance still need to present. It was determined by the Committee that there would not be enough time at the next meeting to hear all presentations and review the Police budget. It was decided that the Committee needed to meet for a fourth meeting. The Committee decided that the fourth meeting would be held on Friday, May 23, 1997. The next meeting will be held on Monday, May 19, 1997 at 6:30pm at the Tigard Water Building. The Budget Committee was concluded at 9:40pm and discussions will continue at the next week's meeting. MSP 14