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04/24/2021 - Summary City of Tigard V Budget Committee Summary Saturday,April 24, 2021, 9:00am Virtual Meeting,Tigard,Oregon 97223 MEMBERS PRESENT(9): Tim Cadman, Leah Voit, Kris Mitchell, Chris Bence, Councilor Newton, Mayor Jason Snider, Councilor John Goodhouse, Councilor Shaw, Council President Heidi Lueb MEMBERS ABSENT(2):Jim Knowlton, Siobhan Chandler STAFF MAKING PRESENTIONS: Steve Rymer- City Manager, Kathy Nyland - Assistant City Manager,Toby LaFrance- Finance and Information Services Di•-.,ctor, Kathy McAlpine - Police Chief, Kenny Asher-Community Development Director, Dana Bennett - Human ResL urces Director, Brian Rager-Public Works Director, Nadine Robinson-Central Services Director, Halsted Bernard-Library Director, Lori Faha-Public Works-Chief Engineer, Sean Farrelly-Redevelopment Project Manager, Community Development, Kent Wyatt-Communications Manager 1. Convene Budget Committee/Introductions-Leah Voit, Chair Leah covered some housekeeping items and outlined the day's agenda and lead a round of introductions of the budget committee and the leadership team. 2. Budget Message-Steve Rymer, City Manager • The Strategic Vision, which provides the highest guidance for what we do at the city has 3 priorities: set standard of excellence in public and customer service; create a well-connected and attractive pedestrian network;and ensure development and growth supports the vision. • City Imperatives (4) are to improve systems, implement the strategic plan, response to COVID-19 and anti-racism and newly created Public Safety Advisory Board. Out of these imperatives are some outcomes that line up with the council goals-develop a community resiliency plan and implementation;support homelessness, support COVID-19 and our Parks and Recreation Master Plan Funding and implementation. • $388 million total proposed budget, $37.8 million is general fund expenditures and $74.6 million is the capital improvement plan-fairly large for a city our size. • Revenues-$388 million from beginning fund balance,transfers and annual revenues.WE have many r'unding sources-property taxes, 16% of the budget that is used to deliver services and projects for the city. Charges for services make up about 38%; many other revenues round out the total. $.18 cents per dollar paid in property taxes go to city services. • Expenditures-include operations (39%), capital improvements (33%) and fund transfers(22%). In operations, personnel accounts for about 49%. The city has been awarded several awards for their financial reporting and process work. City of Tigard Budget Committee Page 1 3. 6 year Financial Forecast-Toby LaFrance. Finance and Information Services Director • Tigard is in a good financial position overall. This is because of sound decisions from the team, council, and the budget committee. We have a wide range of revenues and reserves to weather the COVID pandemic without having to make service cuts. • The budget represents the maximum amount the city can spend. Over the years, we analyze how much we actually spent. Over the years,the city has spent about 95% of its budget; recently the city has spent below that, so we are forecasting 93.5%expenditure rate for this budget. • Forecast only embodies known decisions that is being made by this body or decisions that will impact the future that have already been made.We don't assume future decisions, unless otherwise stated. • Base condition for this forecast is that there is an economic slowdown, largely due to COVID; recovery will take a year or two after the vaccine has been largely distributed. Stimulus funds are being distributed, (Tigard to receive over$11 million over the next two years).This may help the forecast in the future. Some revenues impacted by COVID is our traffic fines, gas tax and transient lodging tax. Also on the development side, 150-200 single-detached residential units in River Terrace will be built. There are smaller subdivisions as well. • General Fund-expenses grow about 1/2 %faster than revenues. Will need to address long-term sustainability caused by the expenses growing faster than the revenues. Emergency reserve is at about $1 million-which has been used during COVID, but is almost back up due to funds received from the federal government. • Service level reserve-created by making reductions in FY 2019 and FY2020 to create a gap between expenses and revenues.We're taking the savings and putting them into the service level reserve, with the purpose of addressing the fact that we don't have enough revenues to pay for inflation and keeping service levels constant.This gives the community flexibility. Revenues don't grow as fast as our expenditures. • This budget does have an additional year of sustainability than the current budget, partially due to the assumption that the expenditure rate is down to about 93.5% and largely because of decisions in this budget to have a number of limited duration projects. Avoiding ongoing expenses lengthens the sustainability of the Service Level Reserve. • Utility bill fees fund a number of operations of the city; council is in the midst of determining the water rates-going up about 2%; sanitary and sewer charges are set by Clean Water Services-increasing by 4- 5%this upcoming year; sanitary sewer surcharge is indexed to the Seattle cost of construction,which is going up rapidly. This is a preliminary number-from March-we don't have April index yet. Street maintenance fee is also indexed.We will bring updated nurnbers to council within the Master Fees and Charges.The Parks and Rec fee is going up based on an index on the base fee,which is $6.16 per household, plus $1.52 coming July 1. The additional $1.52 was adopted by Council in October to fund the additional 3 FTE the Budget Committee approved in the last budget cycle. • Park Funds-many of these help fund the capital improvement fund, as well as the Parks Utility Fund. Council goal will result in options for long-term parks funding. These will be coming to the Budget Committee in the next couple of budget cycles. • Transportation Funds-we have a number of funding sources to support transportation system, both operations (gas tax). Revenues are at 90%-we've moved some capital project funds out of this fund in order to keep it healthy. Will be using the transportation development tax to pay for street improvements between Hwy 99 and Hall St.on McDonald. • Water, Sewer and Stormwater-have operations and capital here.These funds are stable. • Costs related to the project for new city facilities is included in the forecasts, as well as additional Park and Recreation Fee revenue to pay for Park's portion. Other impacted funds do not appear to need additional revenues to pay their share,though future transportation capital projects will need to be funded from sources other than the Gas Tax Fund. City of Tigard Budget Committee Page 2 • COVID has put pressure on revenues. General fund service level reserve is helping.We will need to seek long-term financial stability. Facility costs are putting some pressure on funds, particularly General Fund, Gas Tax fund and Parks Utility Fund. Comments: Cr;incilor Newton-asked about the River Terrace unit increase; Parks & Rec fee-help fund new facility is unc.er review? Concerned coming out of COVID may take longer than previously anticipated. Councilor Good house-Dedicated Emergency Fund-where should the balance be? 4. Public Testimony: • Phone in call: Shawn Martinez called to request the budget committee to provide walkable infrastructure-no sidewalks or bike lanes where he lives, • Chris Latt-written testimony: High cost for water and new, higher rates.Toby LaFrance and John Goodrich, Executive Manager, Water Utilities provided written response. • Beatrice Kiddoux-2 separate emails received: Recommend a municipal bank(provided attachment); community gardens that are pesticide free;co-op model grocery store;safety for pedestrians and bicyclists .Toby LaFrance provide written responded • Email received regarding the Tigard 4th of July Community Event grant request. Liz Lutz provided a written response. It was requested to obtain the storage cost of the fireworks. S. Budget Committee Questions/Comments • Councilor Goodhouse asked for a review of the Reserve Fund. 6. Recess City Budget Committee and convene the Town Center Development Agency Budget Committee FY 2021-7122 Budget Committee o rCDA Budget Message and Presentation-Steve Rymer& Sean Farrelly • Administers our urban renewal districts:City Center TIF District-formed in 2006;Tigard Triangle TIF District was formed in 2017. • Both have plans with projects that maximum indebtedness will pay for.The voters need to approve these districts and amendments to them. • Accomplishments for this year is the senior housing alongside the Senior center. We've signed a development agreement for 57 units of affordable housing. Property on main street that has been vacant for a number of years.The site has been cleaned and sold to a developer-22 apartments and ground floor retail:Universal Plaza-site has been cleared and design is in progress. • Projects in FY 2022 include: Universal Plaza and the trail connection will have design and engineering work completed and construction should begin in early 2022; Main Street Green Street Phase 2 will have design and engineering work completed and construction is starting this summer, continue matching improvement grant program-where we've awarded 28 grants to bring about substantial building improvements, attracting new businesses. • Ballot proposal for this May would add $20 million to the indebtedness to fund new projects in the City Center and extend the life of the district by nine years. • Tigard Triangle accomplishments include: Opening of Red Rock Creek Commons, an affordable housing project; market rate project-Overland-corner of Dartmouth and 72"d 215 apartments and retail on the ground floor; new Tigard Triangle project where we worked with community to prioritize urban renewal projects-top two are affordable housing and parks. • Projects in FY 2022 include:continue affordable housing projects that are in the pipeline;acquire park property in the triangle; business opportunity fund-work similar to matching improvement grant program-focus on retaining businesses in the triangle now and integrate with citywide economic development programs in the city. o Public Comment/Public Testimony on TCDA Budget-There was none. City of Tigafd Budget Committee Page 3 o Discussion and Approval • Affordable housing, Overland project(Nick Wilson Plaza)-will get design started in FY 22; Universal Plaza-impact if the ballot measure doesn't pass-first phase will be built in 2022 and 2nd phase would include shade structure and community room. Phase 2 might be pushed out, Main Street/Green Street-project was pushed out due to COVID, outreach needed couldn't be done. Ballot measure is very important for Tigard. • Tim Cadman moved and it was 2nd to approve the Town Center Development Agency. Motion was unanimously passed. o TCDA Budget Committee was adjourned. 7. Reconvene City of Tigard Budget Committee 8. Budget Priority/Imperatives Presentations • City Accomplishments-Kathy Nyland -Stay at home order, wild fires, snout storm-all happened in the past year. -397 number of days since statewide stay at home order, 14 functional and hazard annexes we have exercised in our emergency operations plan; 7-number of state of emergencies declared; 150-small businesses we assisted by providing PPE; 35 local foster care were also provided PPE; $200,000-Resident Aid Fund of Tigard distributed to 8 area non-profits to help Tigard residents; 591-nuumber of grants distributed to 396 businesses: $90,000-we received from the Community Resiliency Funding to help with 25 projects;413-customers helped through Tigard Aid program to help with utility bills,totaling $229,000. -Other accomplishments: received the first Popular Annual Financial Report award; created an IT project management office; implemented a business license fee waiver program; launched a Streets for People as a Covid-19 response program; passed the police levy; continued library services through creative means; increased engagement numbers for virtual council engagement; expanded operations to accommodate our photo speed enforcement process; eliminated court fees;created and launched the Public Safety Advisory Board;onboarded a new City Councilor and City Manager, closed facilities to the public but all services remained open. • 4Imperatives: o Improving Systems-Police Chief McAlpine & Brian Rager-Public Works -Committed to support the Tyler Enterprise Resource Planning system.Systems will be able to communicate with one another and more data storage efficiency. Proposed budget includes staff backfill support, trainer(limited transition) and a Building Division System Administer-to support their transition. Under System support-Fees paid to Tyler for software support and system host, as well as implementation fees. -City-wide improvements include evaluate the Police online crime reporting-making data informed decisions replace the city's intranet; replace Utility Billing and Fleet vehicles, replace data storage that hold data for city and Police department. Both storage units will not be supported later this year. Comments: Council President Lueb:When Tyler was previously approved, some of these positions weren't discussed.Toby LaFrance responded that as a limited duration project of about four years, Tyler is not part of the city's base budget-it must be brought to the budget committee every year.These costs were anticipated, but not needed at the time of original adoption.IT Manager Mike Nolop added that it was communicated that there would be additional staffing resources requested at the original Tyler request as well as at a recent Tyler update meeting with the City Council in March. Building System Administer-Kenny Asher said it was a regular position to support all technology to help with Community Development. Kris Mitchell asked about if the contract fees are fixed or variable. Mike Nolop said the fees are fixed. He also indicated that the system will be City of Tigard Budget Committee Page 4 used across all divisions. Councilor Shaw recognized staff's effort to stay within the budget and the decision for staff to change the training to a train the trainer model. o Implementing the Strategic Plan-Kenny Asher-Community Development& Dana Barrett-Human Resources Director -Implementing the strategic plan will be focused on accessible and equitable,fair, embrace health and walkability. -Initiatives for this budget that support the plan are to fund the Parks Master Plan process; carry out commitments in the voter-approved Police Services levy-increase number of officers to decrease call times, provide training for all sworn members in advanced crises and de-escalation, and support city facilities consolidation project and to increase communications to gage community awareness and messaging. -Positions to support this imperative are administrative in nature in Public Works (reduced staff in Engineering and moved it to PW Administration), Central Services and Human Resources. -Other actions in the department budgets that are in line with the strategic plan and imperatives-enhance the customer service focus in Utility Billing to solve problems and provide good information to customers, as well as setup a Spanish speaking customer service line; host Tigard on the Move speaker series to focus on transportation; expand traffic safety to add-an evening traffic car to help with DUII enforcement; develop Tigard on a Roll foot cart incubator-grant funded. It's an initiative to add a couple of food trunks that we will lease to start ups-this will be in the Universal Plaza site; develop contact cards in English and Spanish to help community navigate city services;continued support of River Terrace 2.0 and to create a new city website. Comments: Councilor Newton asked if Central Services has any administrative support and they don't have any right now; Public Works administrative support-will they be doing temporary work on COVID? Brian Rager responded that this position will be doing much more-personnel assistance, communications, budget help. Leah Voit asked about the food truck idea-other programs run in the same model? Kenny Asher said he could not think of any.The program is built on Opportunity Cafe-work with business support organizations..Non-sworn personnel doing some work on calls was discussed. o Continuing to Respond to the impact of COVID-19-Kathy Nyland&Kent Wyatt- Communications Manager -COVID-19 will continue to need the city's help. Some in-person city services are returning:court, library and some limited recreation services.American Rescue Plan-this will be discussed in more detail later.There is an increase in Social Service and Community Grant program. In terms of budget alignment with the COVID-19 response we have redesigned library spaces, continued accounting &compliance with Federal Relief Programs; host a webinar series to help advise businesses impacted by COVID; support a mix of in-person and virtual meetings, launched 2 podcasts-one in English and one is Spanish;we.saw an advanced audience reach. Comments: Councilor Newton commented that we may need to 'pivot' if we move to higher risk. Kathy Nyland commented that the city approached our reaction to the pandemic very,cautiously and thoughtfully. We have been very consistent with our service and operations. Chris Bence-indicated digital divide may be bigger problem-it's on the city's radar. Mayor Snider-new and additional need for support for business and residents may be needed. o Anti-Racism Plan &Public Safety Advisory Board-Halsted Bernard, Library Director & Nadine Robinson,Central Services Director -Public Safety Advisory Board (PSAB) initiatives include;two requests in this budget to support this board-$150,000 continued facilitation services-key to navigating topics and City of Tigard Budget Committee Page 5 move through difficult topics; $100,000-allow the board to identify and act on initiatives within the city.They will go before council.The Police Department received approval from council to add and update technology to add body-worn cameras by all sworn officers, and replace dash cameras and update taser technology. DEI investments within the city include training, develop DEI training for all teammates, internal facing advisory team works on ongoing and adhoc projects to enhance a workplace culture of respect, belonging and care.We want to further our efforts by reaching out to minority, women and disadvantaged businesses, as well as several other programs to reach out to under- served communities in Tigard. Comments: Councilor Goodhouse-PSAB cost clarification was requested-costs in the upcoming budget are for the committee to do its work through June, 2022.Councilor Shaw -PSAB initial ask was made-1 FTE and funding-got us through December 2020. Additional funds were requested to get us through June, 2021. This budget includes funding from July, 2021 —June, 2022.Total cost since launch will be brought back to the May 311 meeting.Chris Bence and Councilor Shaw asked about the equity mapping-how does this work to improve equitable outcomes? Does PSAB review the map? Kenny Asher responded that the data has income and demographic data, and trying to get health data. Much of this data is gotten from the census. We can map what we find and we can look at where people are living.. We use it in the Tigard Cares project-to build higher scoring advantages for those in the geographies and Streets for People pilot program-comb traffic for easier walking and biking. Chief McAlpine said that board has not reviewed the mapping yet. Councilor Newton-mental health response team-what is the status of this? Chief McAlpine-Washington County has a mental health response team-working with mental health clinician-they respond all over Washington County. There is more demand than there are teams. Partnering with Tualatin and Sherwood, Tigard has a need to share a team.We didn't ask for additional funding at this time as we need to do proof of concept first.We can use asset forfeiture to pay$50,000 for a clinician, depending on Sherwood and Tualatin getting a budget increase. Kris Mitchell asked about school resource officer program changes-in line with TTSD recommendation. Councilor Lueb and Councilor Newton-funding for the mental services group wasn't run through the PSAB-feel it's their primary goal. Chief McAlpine indicated that there is no ask from the General Fund.This initiative was brought from other cities. We are still in work mode and it's not ready to go to the PSAB yet. Leah Voit and Mayor Snider asked a couple of questions related to funding for equity projects. Councilor Shaw thanked Chief McAlpine for her ingenuity in proposing to partner with the cities of Tualatin and Sherwood to jointly pay for the addition of a mental health clinician for South Washington County and for utilizing the forfeiture fund to pay for a proof of concept. 9. Budget Committee Questions/Comments on Budget Priority/Imperatives o Councilor Goodhouse-asked about looking further into the Emergency Fund-how other cities our size fund it; how it's used and also the PSAB-how much has been spent and how much is planned to spend,where is the money coming from and how that affects our overall financial budget. Council President Lueb would like to have a conversation on the Emergency Fund-concerned about funding while using it during the pandemic. o Mayor Snider doesn't see practical value of a separate emergency fund from the undesignated fund. This topic will be further discussed on May 3rd.Toby said that the emergency fund and undesignated fund balance do share funding. Need to maintain our required reserves and try to maintain $1 million in emergency fund.Toby explained the difference between the funding in terms of possible use. City of Tigard Budget Committee �� Page 6 10. Capital Improvement Plan-Lori Faha, City Engineer 0 64 projects and programs within the areas of streets, parks,water, sewer,storm and facilities.There are 19 projects completed and the remainder are ongoing or awaiting to start. o Accomplishments in FY 21: maintained the PCI goal in the pavement management program and completed the Wall St./Tech Center Dr work,ADA curb ramp upgrades; completed a Parks Master Plan and upgraded ball parks;Greenfield St Emergency Water/Street Repair won the APWA Project of the year and completed a Water Master Plan; replaced exposed sewer piping; property search for Public Works facility is underway. o Key projects for FY 22: Parks-17 total-Cook Park, Dirksen Park, Steve St Park, Fanno Creek trail and Lasich property and trails are all planned for work, Streets-19 projects including Main Street construction, Tigard St. and North Dakota bridge work, Murdock sidewalk work and work along McDonald, 72nd and Greenburg/Tiedeman streets,ADA improvements;Water-10 projects planned including Cach reservoir and starting new pipeline renewal program; Sewer/Storm-6 projects-several creek stabilization projects; Facilities-2 projects include Public Works facility site purchase and design and City Hall building work. o COVID-19 has affected ongoing funding sources like Gas Tax and Transient Lodging Tax. We looked at projects with gas tax-could TDT or other fees help pay for more projects- we were able to transfer some funding.We hope to maintain the better bidding climate than we've had a couple of years ago. Covid has made it difficult to maintain relationships with our team and partnering agencies.We will be working on this as people return to work. o Large CIP-a lot of work for potential grants and earmarks and potential transportation legislation. Projects could be added to the CIP list-need to look ahead. o Urban growth expansion-if growth continues, it affects projects and personnel. o Strategic Plan affects our project delivery team. Comments: Councilor Newton asked about parks priorities in the Parks Master Plan. Thanks were given for the presentation and enthusiasm. 11. Emerging Issues-Steve Rymer o American Rescue•Plan (ARP)-$11.32 million will be received in two installments and must be spent by the end of 2024. Since we anticipate receiving these funds in late May or early June of this year, these funds will need to be incorporated into the FY22 budget. We want to find ways to support businesses, and community members.WE want to establish budget best practices in our decisions. o Topics to bring back for further discussion at the May 3rd meeting. Request for funding for Tigrd 411 of July;Total cost of the Public Safety Advisory Board; Emergency Reserve; 4-year budget changes. 12. Recess Budget Committee until Monday, May 3rd at 6:30pm. The meetin: was recessed at 3:40 pm. -- Liz Lutz, Finance D64rtment ATTEST: Chris Bence, Secretary City of Tigard Budget Committee - - Page 7