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04/30/2001 - Minutes 4 City of Tigard, Oregon Budget Committee Meeting Minutes April 30, 2001 Members Present: Mike Benner, George Burgess, Irene M. Moszer, Sydney L. Sherwood, Greg Zuffrea, Jim Griffith, Craig Dirksen, Brian Moore, Joyce E. Patton, and Ken Scheckla. Members Absent: None. Staff Present: Bill Monahan, Craig Prosser, Tom Imdieke, Margaret Barnes, and Heather Burris. Call to Order: Craig Prosser called the meeting to order at 6:30 PM. All members were present. The Budget Committee now has two new members. Everyone introduced himself or herself. Election of Officers: Craig Prosser, Finance Director, stated that nominations need to be made to elect a new Chair and Secretary. Craig Dirksen nominated George Burgess for Chair. Brian Moore seconded the motion. All were in favor of the motion. MSP (Motion Second Pass) Ken Scheckla nominated Sydney Sherwood as Secretary. Jim Griffith seconded the motion. All were in favor of the motion. MSP Budget 101: Oregon Local Budget Law requirements Craig Prosser presented a Power Point slide show on Oregon Local Budget Law. To begin the slide show, the committee was updated on the budget basics. The Oregon Local Budget Law (ORS 294.305 to 294.565) sets minimum requirements, establishes basic process and responsibilities, and established the Budget Committee. The Budget Committee consists of members of the governing body plus an equal number of citizens appointed by the governing body. Each member has an equal vote. The Budget Officer is responsible for reviewing expenditure patterns and needs, estimating revenues, developing the Proposed Budget and presenting it to the Budget Committee. A notice must be published in regards to this presentation. The Budget Committee is responsible for reviewing the budget, taking public comment, making changes as necessary, approving of property tax amount or rate, and approving of the budget. Once the budget is approved, it is then sent to the City Council for adoption. r t . The Oregon Local Budget Law requires that a budget summary and notice of the budget hearing be published prior to the meeting. The City Council will then hold a budget hearing and may modify the Approved Budget as long as changes do not exceed 10% of a fund's appropriation. Finally the budget is adopted. Adoption is scheduled for June 12, 2001. The Adopted Budget takes effect on July Is'. It may be amended throughout the fiscal year by City Council resolution. Major changes require a Supplemental Budget. Ken Scheckla asked if there have been any changes in the Oregon Local Budget Law in the last five years. Craig Prosser responded that changes have occurred both in the supplemental budget process and meeting notice requirements. Four aspects of a public budget The budget is used in four ways. It is used as an accounting document, an operational guide, a policy document and a communications tool. As an accounting document the budget measures and controls expenditures, tracks revenues, and loads the accounting system. As an operation guide the budget document identifies work programs and establishes goals for departments. As a policy document the budget reviews city operations and processes, community needs, and resources. It then allows for choices to be made and priorities to be set. As a communications tool it explains the demands, needs, constraints, resources and opportunities for the City. It communicates the choices made and the direction in which the City is heading. Budget Structure The appropriations are a legally established expenditure limit, which is a not to exceed amount. The amount can be spent up to the set limit, but may not exceed that amount without approval from the Council. Appropriations are set by fund. Oregon Budget Law allows for appropriations to be set at different levels. They made by set by program, department, category, or line item level. The City of Tigard is set by program level. The budget document structure contains eight different sections. These sections are Budget Summary, Revenue Analysis, Program Summaries, Capital Improvements, Debt Service, Fund Summaries, General Information and Appendix. Craig Prosser gave the committee a brief review of what was included in each section. Jim Griffith asked which funds in the City of Tigard are fee supported or self supported. Craig Prosser responded that the Water Fund, Sanitary/Storm Sewer Fund and Building Inspection Fund are all fee supported. Vision Statement: This is the first time that the Tigard Vision Statement is included in the budget document. The Vision Task Force establishes several goals they would like to obtain in the near future. This years goals included the following: community character and quality of life, growth and growth management, public safety, schools and education, traffic and transportation, urban and public services. Council Goals: The City Council meets for a yearly goal setting session and establishes a list of goals they would like to see the City accomplish. The Council goals incorporate and refine the goals of the Vision Task Force. The Council goals include developing a transportation improvement program, providing recreational opportunities, supporting the Tigard Central Business Association to revitalize downtown Tigard, implementing the City Park Master Plan, determining the City's long term water supply, establishing an annexation policy, encourage and support private sector programs for affordable housing, supporting the New Tigard Library Construction Committee, developing a citywide sewer completion policy, and expanding citizen involvement opportunities. Ken Scheckla noted that the council goals listed in the proposed budget do not state that several of the goals will take more than one year to achieve. Craig Prosser agreed to revise the council goal statement to include this. Financial Forecast: Beginning in October, the City starts looking at the financial future of the next five years. They look at the past trends of revenues, expected changes in consumption, and projected economic activity. On the expenditure side, they look at changes in personal services, materials and services, capital outlay and capital improvements. Craig reviewed the five-year forecast for the General Fund, Development Funds, Water Funds, Road Funds, and Sewer Funds. Budget Message: Bill Monahan presented the committee with review of the budget message. The document has been modified to help facilitate better communication with the public. Major issues in the budget include annexations, building activity, City Library, water supply, road funding, and communication. Last year the City of Tigard annexed in the Walnut Island area. This year the City will be looking at annexing part of the Bull Mountain area. An analysis will need to be completed showing the pro's and con's of this annexation. There was a downturn last year in the growth and development department. An adjustment was made within the Development department to rectify the problem. The City of Tigard will be seeing 250 to 300 new units per year compared to 600 units per year. The City has public facilities needs at this time. Additional space is needed for the growth in staff and building renovations are needed in the current facilities. City Council will need to determine the best way to proceed. The City will also be looking at taking back possession of property that is currently being leased. We continue to strive to secure a long-term water supply. One possible source is the City of Portland. The City of Portland is currently undergoing some new innovative changes. Joyce Patton reported that she testified at the Portland City Council last week and gave a brief overview of what occurred. This year's budget also addresses the issue of limited gas tax funds, and the need for better communication with the public. This year the City is proposing a budget of$25,875,485. This is an increase of 4.3% over last year. They are proposing an increase of 10.42 positions, and $10,415,310 for Capital Improvement Projects. Changes in Budget Presentation/Structure: Three major changes have occurred within the budget document. The most obvious change is the facelift the document has received to improve readability and communication with the committee and the public. The budget document now also includes Effectiveness Measures to show how well the City is doing in achieving desired results. Lastly, the City has moved from using a program matrix system, which allocated charges based on percentages to a direct charge system. This will allow for more control directing costs to funds. Budget Hearing Format: Schedule Craig Prosser discussed the draft agenda's that were distributed for future meetings. The committee agreed that the agendas are acceptable. This year's budget presentation will include the short departmental summaries as were presented to the budget last year. These summaries will be sent to the committee members mid-week, so that they may be reviewed prior to the meeting presentation. Public Comment Craig Prosser asked the committee how they would like-to handle public comment. The committee agreed that public comment should continue to be held at the end of the Budget Committee Meetings. Ken Scheckla asked how information that is sent in the mail to committee members should be handled. He was concerned because the City is currently in negotiations with both unions. Bill Monahan responded on how the Committee should handle information that is presented to them outside of the Budget Committee meetings. Bill asked that if any committee member receives information outside the meeting that they please do not read the document and pass the information on to him. Length of Meetings Future Budget meetings are schedule for the next two Monday evenings and possible a third, from 6:30 PM until 9:00 PM. Public Comment: There was no public comment. George Burgess, Chair recessed the Budget Committee Meeting at 8:08 PM and discussions will be continued at the May 7th, 2001 meeting.