Resolution No. 04-39 CITY OF TIGARD,OREGON
RESOLUTION NO.04--i-q_
A RESOLUTION APPROVING BUDGET AMENDMENT 021 TO THE FY 2003-04 BUDGET TO
INCREASE APPROPRIATIONS FOR FUNDING OF CITY ATTORNEY EXPENDITURES.
WHEREAS, the City has experienced unanticipated attorney costs due to union contract negotiations,
LUBA(Land Use Board of Appeals)filings,and labor issues;and
WHEREAS,the adopted FY 2003-04 budget for City Attorney expenditures is not sufficient to cover the
total estimated costs for attorney fees;and
WHEREAS,Oregon State Budget Law prohibits jurisdictions from over spending appropriations.
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
SECTION 1: The FY 2003-04 Adopted Budget of the City of Tigard is hereby amended as shown in
Attachment A to this resolution.
SECTION 2: This resolution is effective immediately upon passage.
PASSED: This�day of r B_ 2004.
Mayorl-City of Tigard
ATTEST:
a Greer A.Gaston,Deputy City Recorder
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RESOLUTION NO.04- �y
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Attachment A
FY 2003-04
Budget Amendment#21
FY 2003-04 Budget FY 2003-04
Current Amendment Revised
Budget #21 Budget
Central Services Fund
Resources
Beginning Fund Balance 523,050 523,050
Interest Earnings 10,461 10,461
Transfers In from Other Funds 4,458,623 4,458,623
Total $4,947,134 $0 $4,947,134
Requirements
Policy&Administration Program 3,629,803 3,629,803
General Government 394,920 100,000 494,920
Program Expenditures Total $3,974,723 $100,000 $4,074,723
Debt Service $0 $0
Capital Improvements $0 $0
Transfers to Other Funds $73,614 $73,614
Contingency $237,272 ($100,000) $137,272
Total Requirements $4,290,609 $0 $4,290,609
Ending Fund Balance 656,525 656,525
Grand Total $4,947,134 $0 $4,947,134
MEMORANDUM
TO: Craig Prosser,Finance Director
FROM: Michelle Wareing,Management Analy
RE: City Attorney Budget Amendment
DATE: May 26,2004
Due to union contract negotiations and unanticipated labor issues and land use
appeals, it is anticipated that the City Attorney expenditures will exceed the budget
amount of$185,000. As of May 26,2004,total City Attorney expenditures for FY 2003-
04 are$176,403.53. This amount is for attorney services through April 30,2004. There
are still two months of attorney expenditures to be received.
have consulted with Sandy Zodrow,Human Resources Director, on what the labor
attorney costs could be for May and June 2004. Sandy indicated that more attorney
time is being spent on negotiations and that several labor issues, non-contract related,
have arisen. These labor issues could either be resolved quickly or could become
larger issues. Also,the labor attorney has requested to increase the billing rates,but
this is still under negotiation. Sandy has estimated that labor attorney bills will be
approximately$35,000 for May and June, but this doesn't include any billing rate
increase or the new labor issues.
In addition to labor attorney costs,the City has experienced large attorney costs
associated with land use appeals to LUBA(Land Use Board of Appeals). Currently,
there are three appeals with LUBA and one with the Court of Appeals. When these
appeals go to trial is unknown. Attorney costs increase significantly when a case
actually goes to trial. It is being estimated that the minimum cost for the remaining two
months of the year will be$10,000,but could be much larger if any of the cases go to
trial
Besides the labor and LUBA attorney costs, the City incurs other attorney costs on
monthly basis. These monthly costs vary depending on usage. In June,the City
Council will be discussing the Bull Mountain Annexation and it is anticipated that there
i will beat least three additional special sessions. it is the intent of the City to have the
i City Attorney be present at these additional meetings. Currently, the City Attorney only
attends one Council meeting per month. It is estimated that non-labor and non-LUBA
attorney costs will be about$10,000 total for both May and June. This amount is based
on past,regular usage. However,this estimate doesn't include the cost of the additional
meetings or any"out of the ordinary"issues.
Last fiscal year, a budget arnendment was done at the end of the year for City Attorney
costs. The original budget was$192,100 and it was amended by$25,000,thereby
producing a new budget of$217,100. The actual expenditures for FY 2002-03 were
$226,493. Even with the amendment, City Attorney costs still exceeded the budgeted
amount,which is a violation of State Budget Law. This violation had to be noted in the
City's Comprehensive Annual Financial Report(CAFR). The City cannot allow the City
Attorney budget to be over-expended again.
I am recommending that the City Attorney budget for FY 2003-04 be amended by
$100,000. Although this amount is higher than what is estimated to actually be spent,
believe it is necessary. As stated above,total City Attorney expenditures through April
2004 are$176,543. In FY 2002-03,the last two months of attorney bills equaled
$73,398. Assuming the same expenditure amount,the FY 2003-04 City Attorney
budget would need to be amended by$65,000. 1 have added a$35,000 cushion due
the many unknowns that have the potential to generate large attorney bills. It should be
noted that any unused portion of the City Attorney budget will be rolled into the fund
balance.
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