05/06/2002 - Minutes City of Tigard, Oregon
Budget Committee
Meeting Minutes
May 6, 2002
Members Present: Jim Griffith, Brian Moore, Joyce Patton, Sydney Sherwood, Craig
Dirksen, Mike Benner, Ken Scheckla, and George Burgess.
Members Absent: Irene Moszer and Greg Zuffrea.
Staff Present: Bill Monahan, Craig Prosser,Heather Block, Paul Debruyn, and Michelle
Wareing.
Vistors: Emily Tsao, Robin McFall, and Gene McAdams.
Call to Order: George Burgess called the meeting to order at 6:37 PM.
Approval of Minutes: The meeting minutes of May 14, 2001 were approved. MSP
(Motion Second Pass)
Election of Officers: Craig Prosser, Finance Director, stated that nominations need to be
made to elect a new Chair and Secretary. Mike Benner nominated George Burgess for
Chair. Sydney Sherwood seconded the motion. All were in favor of the motion. MSP
Ken Scheckla nominated Mike Benner as Secretary. Joyce Patton seconded the motion.
All were in favor of the motion. MSP
Vision Statement: Craig Prosser presented a Power Point slide show on the Vision
Statement for the City of Tigard and the Council Goals for the year 2002. The City of
Tigard Vision Statement addresses six major goals: community character and quality of
life; growth and growth management; public safety; schools and education; transportation
and traffic; and urban and public services.
Council Goals: The 2002 Council goals included:
Transportation: Explore funding sources, develop intra-city bus service and park and ride
lots, and work with ODOT on state roads.
Parks and Recreation: Complete master plans for City parks, support Youth Forum and
youth activities.
Downtown: Plan for commuter rail station, review zoning and comprehensive plans for
downtown, and work on downtown redevelopment plan.
Water: Continue to evaluate options for long-term water supply.
Growth Management: Evaluate results of Bull Mountain annexation study and develop
course of action, monitor progress of Durham Quarry development, consider ways to
support affordable housing, support implementation of Washington Square Regional
Plan, and evaluate changing the Tigard Post Office branch to the Tigard Post Office.
Library: Support promotion of the library construction bond.
Communication: Meet with local, county, regional, and state partners, improve
communication with Tigard citizens, and support english-as-a-second language programs.
Craig Prosser presented the Committee with the five-year financial plan. The revenue
assumptions are based on past trends, expected changes in consumption, and the
projected economic activity. Personal services expenditures are based on a five percent
plus or minus projected position changes. Materials and services include a three percent
increase plus new requests, minus one-time expenditures. Capital outlay has a projected
three percent increase plus new equipment costs minus non-recurring equipment costs.
The Capital improvement projections are based on the Capital Improvement Plan.
Craig reviewed the five-year forecast for the General Fund, Development Funds, Water
Funds, Road Funds, and Sewer. Funds.
The City will be closing out the Economic Improvement District Fund, the 69`h Avenue
LID Fund, and the Metro Greenspaces Fund. The State and County Gas Tax Fund will
be consolidated, and the Parks SDC, Tree Replacement and Park Levy Improvement
Funds will be consolidated. The Wall Street LID Fund will be added and the Workers'
Compensation Fund will be renamed the Insurance Fund.
Budget Message: Bill Monahan presented the committee with a review of the budget
message. Major issues in the budget include sewer extensions, Bull Mountain
annexation, building activity, the new Library, long term water supply, transportation
funding, Measure 7, and the economy.
The overall Proposed Budget is $26,864,535, which is an increase of 4.3% from last
fiscal year. There is a decrease of.85 positions, and $17,846,506 for Capital
Improvement projects.
Craig pointed out this is the second year of Effectiveness Measures in the budget. Many
departments are continuing to refine these measures.
The other technical change in the budget for this fiscal year is the definition for capital
outlay, which has been changed from $2,500 to $5,000 to comply with GASB 34
requirements.
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.
Length of Meetings
Future Budget meetings are scheduled for the next two Monday evenings and a possible
third meeting on Wednesday, May 29`". The meetings will be held from 6:30 PM until
9:00 PM.
Department Presentations
This year's budget presentation will include the short departmental summaries that were
presented to the Committee last year for the first time.
Public Comment
The Committee agreed that public comment should continue to be held at the end of the
Budget Committee meetings.
Social Services and Community Events: The Budget Committee Policy sets a target
for Social Services and Community Events grants of 0.5%of the prior year's operating
budget. The target for FY 2002-03 is $128,800. This years budget includes $126,200 for
these grants plus $10,000 formerly budgeted in Community Development, Building
Division for emergency housing assistance.
The Social Services subcommittee had asked for additional information from Tigard
Recreation Association. The Association responded to that request in a letter dated April
16, 2002. A copy of this letter is included in the Budget Committee packets. Robin
McFall from the Tigard Recreation Association was present and updated the Committee
on the Association needs and the reasons for the funding request. Joyce Patton and
Sydney Sherwood responded to Robin with some feedback on the application request and
process that would help for next year.
Craig also brought to the Comrnittee's attention that in February, Council directed that
$10,000 be included in the budget as a set aside for affordable housing. This is not
included in the Proposed Budget and will need to be added.
George Burgess asked where the $10,000 was budgeted prior to this year? Craig
responded that this was a new expenditure.
George also asked why the grant to Luke Dorf doubled this fiscal year? Joyce Patton
responded that Luke Dorf lost some of their funding from another source and asked for
twice as much this year. Because they have been conservative in prior requests, the
Committee agreed to the additional amount.
Joyce Patton updated the Committee on a new grant request received from Art Resources
of Tigard. This is a new program designed to enhance the community arts in Tigard.
The Social Services Subcommittee recommended giving them $3,750 which is half of
their request.
Ken Scheckla expressed a desire to not include the $10,000 for affordable housing in the
Social Services budget, but to add it in contingency. A majority vote was taken whether
or not to add the $10,000 as a line item or to include it in contingency. The final
committee vote was five in favor of adding $10,000 as a line item with criteria to be set at
a later date, and three opposed. MSP
Craig Prosser suggested that next years Social Service Subcommittee be selected. Craig
Dirksen agreed to replace Joyce Patton on the committee and Sydney Sherwood and Greg
Zuffrea will continue for the next year on the committee.
Mayor and Council: Michelle Wareing presented the Committee with the Mayor and
Council and City Administration budget. The overall budget for Mayor and Council is
down 25.70%. This is primarily due to attorney fees being removed from the
professional services line item and placed in City Attorney. There was also a decrease in
travel and training costs.
City Administration: The overall budget for City Administration is up 6.45%. This is
primarily due to an increase in materials and services of 34.38% for fees due to Randall
Corporation. Bill Monahan reported that City Administration is recommending deleting
the amount due to Randall Corporation. This would reduce the budget by$48,000.
Human Resources: Human Resources overall budget is down 4.93%. Once again this is
primarily due to moving labor attorney fees over to the City Attorney budget.
Risk Management: The overall budget for Risk Management is up 19.54%. This
increase is due to significant increases in property and worker's compensation insurance
costs for the entire City, which are budgeted in this Division. Michelle Wareing stated
that she had talked to Loreen Mills, Risk Management Director, whom stated that the
City would be looking at 40% to 50%rate increases for insurance this coming fiscal year.
The Committee suggested looking at self insurance. Craig Prosser responded that self
insurance had been looked at and at this time it is not yet beneficial.
Network Services: The overall budget for Network Services is up 2.68%. Personal
Services is up 22.89%, this is due to a reclassification within the Department and also a
contract increase with OPEU to make Network Technician positions salary comparable to
other jurisdictions. Materials and Services is down 15.88% due to cost savings from the
new phone system and service. Network Services has one budgeted vacant position that
will not be filled until the economy improves.
Paul Debruyn updated the Committee on the accomplishments within the Network
Services division this year. This included increasing the broad band speed to the internet,
additional work with the Police department to help meet more of their needs, improving
the web site, and working with the TV studio.
Paul also updated the Committee on measures being taken by the Department to save
additional money. The new telephone system purchased by a local company named
Eschelon will have an approximate savings of$10,000 a year.
Ken Scheckla asked why more overtime was budgeted compared to last year? Paul
Debruyn responded that it was an oversight not to include overtime in last years budget
and this year it was included.
City Attorney: Beginning in FY 2002-03, all City Attorney costs will be charged to this
budget unit rather than to individual departments. This will include both the City
Attorney and the Labor Attorney. Attorney costs will then be allocated out to the
appropriate City fund via the City's cost allocation program.
Public Comment: There was no public comment.
The Budget Committee recessed at 8:40 PM until May 13, 2002. MSP