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.
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• 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.
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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
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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
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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