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City Council Packet - 08/05/2003 Agenda Item No. Meeting of Minutes for Special City Council Meeting of August 5, 2003 Location - 10305 SW 87`h, Tigard, OR Home of Councilor Sydney Sherwood Mayor Jim Griffith opened the special Council meeting at 2:15 p.m. The purpose of the meeting was to conduct a City Council Strategic Planning Discussion. Present at the meeting at 2:15 p.m. were Mayor Jim Griffith, Councilors Sydney Sherwood, Brian Moore, Craig Dirksen, and Nick Wilson as well as City Manager Bill Monahan. Lucy, Councilor Sherwood's cat, arrived at 3:40 p.m. The Council first discussed its goals for the day. Council emphasized that it was open to identify unique ideas, identify projects to undertake, and suggest unique features for present projects. Immediately there was a discussion of the downtown area and the opportunities present as a result of commuter rail. Councilor Dirksen, the Council liaison to the downtown citizen group, emphasized a need for public projects to encourage private developers to invest in the downtown. He suggested a public plaza or square, housing for elderly needing public transportation, and other public investment. After much discussion, Council suggested that staff contact Jeff Tashman, a consultant on urban renewal. Mr. Tashman will be asked to meet with the downtown task force and the City Council possibly in September or October, 2003. The purpose of the discussion will be to talk about the economics of the downtown area and whether or not the economics can support Tigard's ideas for redevelopment. Mr. Tashman will be asked to discuss the Tualatin experience and opine which elements of the Tualatin concept would conceivably work in Tigard. He also will be asked to give some general advice on financing opportunities, in particular tax increment financing. Council discussed tax increment financing and recognized that a charter amendment exists which prohibits Tigard from undertaking a tax increment financing district without first receiving support of the voters. The charter amendment, placed in the charter in 1983, was formulated at a time that the implications of tax increment financing were different than they are today. Mr. Tashman will be asked to explain to the City Council how tax increment financing presently works. Economic development was also discussed. Bill Monahan explained that an opportunity is scheduled for a discussion with the Economic Development Partners, a non-profit made up of several local jurisdictions as well as Portland Development Commission. In January the City y Council suggested that consideration of an economic development program be discussed r during 2003 as part of its Council Goals. Bill will report to the City Council on August 26 on his recommendation regarding the opportunity to join the Partners and potentially to create the a position of Economic Development Director. Council also discussed Tri-Met service. There is significant interest in creating inner-city bus D service in Tigard. Bill will work with Finance Director Craig Prosser to initiate discussions with Tri-Met to better understand the numbers presented by Tri-Met which, according to Tri-Met, illustrate that Tigard receives more bus service than is paid for by locally generated Tri-Met tax. In essence, Craig will be asked to perform an audit of Tri-Met similar to that performed on other franchises in the City. Tri-Met will be pressed to justify their numbers. Staff will also develop strategy to investigate the feasibility of inner-city bus service. Perhaps a demonstration program can be set up with a local company like RAZ. The City of Wilsonville has a successful Tigard City Council Meeting Minutes - August 5, 2003 Page 1 program, thus staff will check with Wilsonville regarding the costs of delivering an inner-city service. Bull Mountain was discussed. The Council gave direction to staff to continue to move forward in bringing an annexation plan to City Council in September. At the same time, staff will work with Washington County to discuss communication opportunities to present information to the entire community. The White House on the library site was discussed. Council would like to make a decision in the next several months whether the house should be preserved or removed from the site. Council suggested that it would like to tour the house sometime in the next few weeks. It was suggested that to justify preserving the house there needs to be a use, but not an office or house. Once Council has toured the facility, a discussion of options will occur. If a decision is made to save the house, Council suggested that others need to be involved. As the meeting drew to a close, Councilor Wilson suggested that the next discussion topic be transportation. The street maintenance fee is coming back for discussion by Council. If funds are freed up from the gas tax monies, Council needs to give direction on what to do with the freed-up dollars. The meeting concluded at 5:45 p.m. it iam A. Monahan, City Manager Attest: , x4wu) Mayo , City g rd Date: '_P M" _ RT3 1: %DM\CATHY\CC M\2003\030805. D 0C L H _J D a J Tigard City Council Meeting Minutes - August 5, 2003 Page 2 City of Tigard, Oregon Affidavit of Posting CITY OF TIGARD OREGON In the Matter of the Proposed Notice of Special Meeting STATE OF OREGON ) County of Washington ) ss. City of Tigard ) I, &9EEZ A 64S l-61IJ , being first duly sworn (or affirmed), by oath (or affirmation), depose and say: I That I posted in Tigard City Hall, 13125 SW Hall Boulevard, Tigard, Oregon, a copy of Notice of Special Meeting for the City Council meeting of AUOLLST- .5- o?OCZ , with a copy of said Notice being hereto attached and by reference made a part hereof, on the day of uLl , 20_. Signature of Person who Performed Posting Su scribed and sworn (or affirmed) before me this day of 20_0__~. L r n OFFICIAL SEH~ Signa e of Not Public for Oregon ~ J 13ENOTSON J NOTARY PUBLIC OREGON 0 !MISSION NO. 368M e-'PES APR. 27, 2007 J OFFICIAL SEAL J JBENGTSON r' NOTARY PUBLIC-OREGON COMMISSION NO. 368086 MY COMMISSION EXPIRES APR. 27,20D7 1.\ADMIGREER\FORMSWFFIDAVITS\AFFIDAVIT OF POSTING - SPECIAL MEETING.000 t o CITY OF TIGARD NOTICE OF SPECIAL CITY COUNCIL MEETING Please forward to: V Barbara Sherman, Newsroom, Tigard Times (Fax No. 503-620-3433) [Lee Douglas, Regal Courier, (Fax No. 503-968-7397) C~Emily Tsao, The Oregonian, Metro SW (Fax No. 503-968-6061) August 5, 2003 - 2 p.m. 10305 SW 87th Tigard, Oregon Notice is hereby given that a special Tigard City Council meeting is planned to discuss strategic planning for the city. For further information, please contact City Recorder Cathy Wheatley by calling 503-639-4171, ext. 2410. City Recorder Post: City Hall Lobby Date of Notice: July 21, 2003 IL MADMICATHYICCAICC MTG NOTICESWOTICE SPEC MTG 8-5-03.DOC NI _a m W J jj~lii ti City of Tigard, Oregon Affidavit of Notification A4 CITY OF TIGARD OREGON In the Matter of the Proposed Notification of Special Meeting STATE OF OREGON ) County of Washington j ss. City of Tigard ) I, A L7~S/~1V , being first duly sworn (or affirmed), by oath (or affirmation), depose and say: That I notified the following people/organizations by fax of the Special Meeting of the City Council on &(8- COST 4600- with a copy of the Notice of Special Meeting being hereto attached and by reference made a part hereof, on the e1 l °r day of !s7-LLV , 20-i2.:~_. ❑ Barbara Sherman, Newsroom, Tigard Times (Fax No. 503-546-0724) ❑ Lee Douglas, Regal Courier, (Fax No. 503-968-7397) ❑ Emily Tsao, The Oregonian, Metro SW (Fax No. 503-968-6061) Signature of Person who Performed Notification L Sub cri ed and sworn (or affirmed) before me this day of Al~ 20. n Jd~/ 9 J OFFICIAL SEAL Signature of Not Public for Oregon J BENGTSON NOTARY PUBLIC-OREGON COMMISSION NO. 368086 MY COMMISSION EXPIRES APR. 27,2M7 1:VADMIGREERTORMSIAFFIDAVITSXAFFIDAVIT OF NOTIFICATION - SPECIAL MEETING.DOC CITY OF TIGARD NOTICE OF SPECIAL CITY COUNCIL MEETING Please forward to: 9 Barbara Sherman, Newsroom, Tigard Times (Fax No. 503-620-3433) VLee Douglas, Regal Courier, (Fax No. 503-968-7397) CREmily Tsao, The Oregonian, Metro SW (Fax No. 503-968-6061) August 5, 2003 - 2 p.m. 10305 SW 87th Tigard, Oregon Notice is hereby given that a special Tigard City Council meeting is planned to discuss strategic planning for the city. For further information, please contact City Recorder Cathy Wheatley by calling 503-639-4171, ext. 2410. City Recorder Post: City Hall Lobby Date of Notice: July 21, 2003 L_ r UADWCATHMMCC MTG NOTICESINOTICE SPEC MfG 8-5-03.DOC r u~ J 07/21/2003 14:03 FAX 5036847297 City of Tigard IM 001 >a~c MULTI TX/RX REPORT ~c TX/RX NO 1816 PGS. 1 TX/RX INCOMPLETE TRANSACTION OK [ 0615035460724 TT Newsroom [ 0915039686061 Oregonian [ 1115039687397 Regal Courier ERROR INFORMATION CITY OF TIGARD NOTICE OF SPECIAL CITY COUNCIL MEETING Please forward to: Qr Barbara Sherman, Newsroom, Tigard Times (Fax No. 503-620-3433) 2/Lee Douglas, Regal Courier, (Fax No. 503-968-7397) "Emily Tsao, The Oregonian, Metro SW (Fax No. 503-968-6061) August 5, 2003 - 2 p.m. 10305 SW 87th Tigard, Oregon Notice is hereby given that a special Tigard City Council meeting is planned to discuss strategic planning for the city. n For further information, please contact laity Recorder Cathy Wheatley by calling a 503-639-4171, ext. 2410. J 0 U 1A) 4Aa&tj, City Recorder Past: City Hall Lobby Date of Notice: July 21, 2003 i.mWCATHY\CCAICC MTG NOTICESW011CE SPEC MTG 8-5.03.OOC F RD CITY COUNCIL ECIAL MEETING CITY OF TIGARD 5, 2003 2:00 p.m. OREGON 5 SW 87TAVENl1E ARD, OR 97223-, AGENDA SPECIAL TIGARD CITY COUNCIL MEETING -PLANNING RETREAT- AUGUST 5, 2003 - 2 P.M. 1. SPECIAL MEETING 1.1 Call to Order - City Council 1.2 Roll Call 2. DISCUSSION: STRATEGIC PLANNING FOR THE CITY OF TIGARD a 3. ADJOURNMENT a H ; W DBAnCATHY\CCAk2003\030805. DOC _m W J COUNCIL AGENDA - AUGUST 5, 2003 page 1 i Tigard City Council Strategic Planning Workshop August 5, 2003 2:00 P.M. 1. Introduction a. Define the goal for today b. What do we want to accomplish c. What is the outcome? 2:15 p.m. 2. Review of work to date towards Strategic Planning a. Vision Task Force Direction Statements - Vision Direction Statements are behind the 2003 tab b. Recent Council Goal Setting Discussions - Material from the 2003 Council Goal Setting is behind the 2003 tab Material from the 2001 and 2002 Council Goal Setting is behind the Reference tab c. City Planning Efforts d. Strategic Finance Plan - Material from Council's April 8, 2003 discussion is behind the 2003 tab 2:20 p.m. 3. Council Discussion a. Council Vision i. Brainstorm ii. Define Council Vision iii. How does this relate to Vision Task Force & other Goal Setting & Planning efforts b. Strategic Plan i. How do we turn the Vision into a Plan? ii. How does this Plan relate to Council Goals? iii. How does this Plan relate to other City planning efforts? 5:30 p.m. 4. Next Steps L a. Additional Strategic Planning Workshops? b. Quarterly Plan/Goal updates? s. c. Coordination with other Goal setting/Planning processes and efforts. _J n u to?,o suk) g7~tL e ew oOLIW- Q Uri i J u - - 2003 Tigard Vision Direction Statements Overall Vision We, as citizens of the Tigard community, are committed to shaping the community's future in agreement with the direction given through this on-going vision process. This process rolies on citizen involvement and participation, and coordinated actions by the community's decision-makers. Tigard is a safe, dynamic community supported by coordinated and efficient public services. Funding for services is stable and recipients pay their share. Citizens are educated about how to access public services and understand their responsibility to participate as members of the community. There are a variety of opportunities for citizens of all ages to access education programs for life-long learning. Our community recognizes and accepts the responsibility each citizen has in promoting and supporting quality education. Small and local businesses thrive. Business owners are involved and take responsibility for the impacts their businesses have on the community. A community value "to respect open spaces and natural features" encourages access to these by our citizens. Many leisure time and recreational opportunities are available for our community. All of these elements work together to promote and protect Tigard's individual identity and quality of life Community Character & Quality of Life Tigard citizens are involved in their community. Involvement is citizen driven and citizens have the tools to communicate effectively with community-wide decision- makers. Volunteer spirit has been maximized through community-wide coordination of volunteers. Our community supports its volunteers with appropriate training and volunteer recognition. Tigard encourages local, regional and community events. City funding priorities go to events, which move toward r financial self-sufficiency, and new community-wide events. Business owners, property owners, and residents of the Main Street Area display strong leadership, ownership, and commitment to downtown development. The Main Street area is seen as a `focal paint' for the community. A clear direction has been established o for a pedestrian-friendly downtown and is being implemented. The Tigard community has a defined, proactive vision for community aesthetics. EM-1 i Growth & Growth Management Tigard continues to grow. Growth is accommodated while protecting the character and livability in new and established neighborhoods. The City encourages and supports private sector programs to maintain diverse and affordable housing, Urban services are provided to all citizens within Tigard's Urban Growth Boundary. Recipients of services pay their share. Local and small businesses are encouraged as an important part of our community and our economy. The City of Tigard is an active participant in regional issues. Its citizens are educated about issues in our region and take advantage of opportunities to participate in decision-making processes. Public Safety Tigard is a safe place to live, play, and do business, with efficient public safety services coordinated by police, fire, and emergency management providers. Citizens and businesses are well educated about public safety services; Tigard's citizens understand their role and responsibilities for the safety of themselves and their community, and businesses take a proactive role for their responsibility in protecting their investment in the community. Public Safety service providers plan for their service delivery in such a way as to minimize the negative impacts of the regional populations that travel to and through our community each day. Stable funding provides uninterrupted public safety services at desired levels. Schools & Education Tigard area residents have access to good quality public and private schools. Residents of our community, whether or not they have children in the school system, understand the importance of education and how they can help promote education of our community. The public schools have stable funding through state and local funding options. Curriculum and extra-curricular programs are important and are well supported through volunteers, local funding, and increased partnerships with business and government. New development assists in paying for new education infrastructure required by growth in the community. Public schools and governmental entities in our community actively partner in day-to-day operations and other costs to facilitate the most efficient delivery of services. L Transportation & Traffic Tigard takes a proactive role in regional transportation planning.. Funding sources are diverse, include regional resources and are adequate to build and maintain our transportation system. Each type of street safely handles the traffic v it is designed to serve. Local traffic is served by a well-connected street network 5 that minimizes traffic impacts on neighborhoods. Tigard's arterials and major collector streets accommodate through-traffic reducing the impact of regional traffic on local neighborhoods. Alternative transportation methods are affordable and available. Use of alternative transportation is encouraged. M-- M Urban & Public Services Basic Urban Services (such as access to parks, recreational opportunities and libraries) are provided to Tigard citizens through property taxes and fees for service. Citizens are charged for enhanced services on a cost-for-service basis. Expansion of the infrastructure necessary to serve growth is paid for by growth. In an effort to facilitate the most efficient delivery of basic urban services, partnerships with businesses, special interest groups, and other communities are encouraged. Citizens are educated about basic urban services, and how to access and preserve the services. _J m J i 2003 Tigard City Council Goals GOAL 1- FINANCIAL STRATEGY GOAL 2-TIGARD CENTRAL BUSINESS DISTRICT GOAL 3-TRANSPORTATION GOAL 4-PARKS AND RECREATION GOAL 5 WATER GOAL 6-GROWTH MANAGEMENT GOAL 7-COMMUNICATION a oc _J m W J 2003 'I igard City Council Goals 2 Craig GOAL 1: FINANCIAL STRATEGY A. Develop a sustainable long-term financial plan or strategy for issues such as: 1. General Fund needs 2. Library 3. Transportation 4. Parks and open space 5. Washington Square Regional Center 6. Central Business District 7. Water System B. Explore the creation of an economic development program. Jim GOAL 2: TIGARD CENTRAL BUSINESS DISTRICT A. Create a common vision for the Central Business District and build the energy to implement that vision through the Downtown Task Force. B. Support the activities of the Downtown Task Force as they provide input to the design of the Tigard commuter rail station and the zoning and development plan standards for the Central Business District. Jim/Gus GOAL 3: TRANSPORTATION A. Aggressively pursue solutions to congestion of state, county and city facilities that cross through Tigard. 1. Reforming the Transportation Financing Task Force. 2. Identify project priorities and funding needs for state and city 'p facilities. 9 u B. Continue working with Tri-Met to identify and fund additional intra- city bus routes. C. Right-of-way management. ® 2003 Tigard City Council Goals 3 Liz/Dan GOAL 4: PARKS AND RECREATION A. Continue the efforts of the Youth Forum. B. Complete or update parks master plans for city facilities. C. Explore the creation of a Parks and Recreation Advisory Board. Ed/Dennis GOAL 5: WATER A. Continue to evaluate options for a long-term water supply. Jim GOAL 6: GROWTH MANAGEMENT A. Continue to evaluate Tigard's role in the provision of urban services outside the city limits. Liz GOAL 7: COMMUNICATION A. Increase Tigard's communication with other elected bodies through active participation of City Council members and staff. B. Improve and expand communication with citizens, particularly communicating successes and future concerns. L o'c Revised at 1/28/03 City council Meeting t I:WDMICITY COUNCIL\GOALS\200312003 TIGARD CITY COUNCIL GOALS.DOC _J J MINUTES TIGARD CITY COUNCIL SPECIAL MEETING ]anuary 6, 2003 Tigard City Hall Red Rock Conference Room 1. Roll Call and Call to Order Roil Call was conducted at 12:27 p.m. Council Present: Mayor Griffith; Councilors Dirksen, Moore, Sherwood and Wilson. Prior to the initiation of the meeting, Deputy City Recorder Liz Newton swore in Mayor Jim Griffith, Councilor Sydney Sherwood, and Councilor Nick Wilson who were elected by the voters in November 2002 for terms initiating in January 2003. Others Present: Finance Director Craig Prosser, City Manager Bill Monahan, citizen Paul Owen, off=duty Police Officer Glen Scruggs. 11. Financial Plan Update Finance Director Craig Prosser gave a PowerPoint presentation on the City's financial picture. He explained the process which has been followed during prior years, and he discussed the status of budget preparation for fiscal year 2003-04. Craig discussed the major causes of our anticipated financial issues. The economy and reduced revenues, coupled with expected increased demand for services were cited. Personnel services costs will increase due to a decision in 2002 to assume the PERS employee pick up, the PERS rate issue statewide, and contractual COLA commitments. In addition, loss of the WCCLS levy election in November will have a significant impact on revenue from WCCLS thus reducing funding available for the Tigard Library budget. Options available to the City include cutting expenses, raising revenues, or reallocation of costs between funds. Mr. Prosser presented some options: i Cut only option using ten percent as a start. This would result in cutting approximately 15.8 positions. The approach would require all general fund departments reduce positions and funding. Craig stated some sample service impacts. TIGARD CITY COUNCIL MINUTES - January 6, 2003 page l If the cut-only option is taken, the financial picture for fiscal year 2003-04 and 2004-05 improves, but the problem remains. • A revenue only option, with voters asked to approve a local option levy, was discussed. The levy could be presented in either May 2004 or November 2004. A May 2004 election would generate funds as of November 2004 while the November 2004 election would not generate funding until November 2005. Possible revenue sources were discussed including increasing fees, adjusting franchise fees, and adopting a street utility fee. Mr. Prosser noted that he and City staff will continue to refine the forecast for the coming year. He asked the Council if there are any options they did not wish to pursue. The Council asked for an explanation of the PERS issue. Mr. Prosser noted that we are receiving some information from PERS, our staff is participating in discussions, and the Oregon Legislature will be addressing the issue over the coming months. Council gave direction to continue looking at fees, particularly where the fee is connected to the service performed. The Council favored a balanced approach of increasing fees and cutting costs. 111. Review Final Report - Goals 2002 City Manager Monahan reported on the status of each of the City Council goals from 2002. Since the Council has received quarterly updates on the goals and received materials in advance of the meeting, it was not necessary that a large amount of time be devoted to reviewing prior goal achievement. However, the following was achieved: Goal 1 - Transportation L Goal information was provided by staff in the packet. The Council was satisfied with r 2 the information presented. Goal 2 - Parks and Recreation Goals were discussed, the Mayor then suggested that it may be time for the Council i to consider establishing a parks and recreation committee. i Goal 3 - Downtown TIGARD CITY COUNCIL MINUTES - )anuari 6, 2003 page 2 Much progress has been made in this goal. The Council made more progress in 2002 than anticipated, as Councilor Dirksen lead formation of the new task force for the area. While the committee met and discussed commuter rail opportunities, the zoning for the area was not reviewed. Goal 4 - Water The City continues to explore the options of joining with Portland or the joint Water Commission. Councilor Moore is now the Council representative to the Bull Run discussions. He suggested that the City may wish to consider placing a ballot measure before the voters at some time to consider using the Willamette River source. The suggestion was to make that option available should it need to be considered in comparison to the other opportunities. Goal 5 - Growth Management No decision has been made whether to pursue annexation of the Bull Mountain area. Studies to gather information on the pros and cons of annexation continue. Progress was made during the past year on the Durham Quarry, affordable housing, and discussion of the implementation of the Washington Square Regional Center. An effort was made to evaluate the opportunity to create a Tigard post office, however, after discussions with the post office and through input from our local congressman, it appears that no opportunity exists to create a Tigard post office. Goal 6 - Library The library goal was achieved as all Council members supported promotion of the Tigard Library construction bond, leading to voter approval in May. Approval of the $13 million bond has allowed the City to make significant steps toward design of a library for initiation of construction in 2003. Goal 7 - Communication The Council concluded that there has been good goal achievement on communication as meetings with local, county, regional and state partners took place throughout the year. Regular meetings have been scheduled so that there is more L communication underway. Efforts to improve and expand communication with C Tigard citizens also improved through the CIT program, Cityscape, web site, cable and other means. In fact, the City was recognized by the League of Oregon Cities to receive the Good Governance Award in recognition of the improved communication with the public. The City also supported English as a Second Language programs in Tigard. 1 J IV. Set Goals for 2003 TIGARD CITY COUNCIL MINUTES - January 6, 2003 page 3 The Council gave input on new goals for 2003. Overall, the Council emphasized the need to find a sustainable financial strategy. All goals therefore are impacted by the financial picture and the availability of revenue to carry out Council direction. Council members expressed their interest in goals for 2003 as follows: Councilor Wilson Councilor Wilson emphasized the need for a transportation goal to improve the function of arterials that are not under the City's control. He also expressed interest in the downtown redevelopment activity. Councilor Sherwood Councilor Sherwood emphasized transportation, noting in particular the need to improve traffic flow on Pacific Highway. She emphasized the need to synchronize the signalization. She identified other signal issues such as the intersection of Hall Boulevard and 99W. Its function at all hours of the day requires attention. Councilor Sherwood also emphasized a need for increased follow through by City staff to make sure that those companies and individuals who cut into the City's right-of-way are held responsible to make sure that any cuts in the street are fixed so that the City's investment is maximized. Councilor Moore Councilor Moore emphasized the need to continue efforts to improve the downtown, complete the task of identifying a long-term water supply, and provide long-term funding for the library. He also emphasized communication, suggesting that we review all of our communication methods and determine where our best results occur. Councilor Sherwood also suggested that we initiate annual meetings with the Washington County Board of Commissioners/Clean Water Services. Council has initiated and carried out discussions with other partners with the exception of Washington County. L Councilor Dirksen Councilor Dirksen emphasized the need to have a financial goal added to the list of City goals. Councilor Sherwood agreed. She stated that the financial goal needs to be 3 the number one goal for the Council. a u Mayor Griffith Mayor Griffith reported that the youth programs in the community have been improved through the Youth Forum, however more action is needed. TIGARD CITY COUNCIL MINUTES - January 6, 2003 page 4 He emphasized the progress made in the downtown program and suggested further work is needed. Mayor Griffith suggested that an economic development concept should be considered at some point by the City Council. In terms of transportation, the Mayor had nothing to add but suggested that contact be made with ODOT staff and commission to make sure that Tigard's issues are kept in front of them. The Mayor also added that the legislative session will require more local input than ever before. The City Council developed seven draft goals for Council consideration at a future Council meeting. The draft goals are as follows: GOAL 1._ FINANCIAL STRATEGY GOAL 2-TIGARD CENTRAL BUSINESS DISTRICT GOAL 3-TRANSPORTATION GOAL 4-PARKS AND RECREATION GOAL 5-WATER GOAL 6-GROWTH MANAGEMENT GOAL 7-COMMUNICATION 9 GOAL 1: FINANCIAL STRATEGY i A. Develop a sustainable long-term financial plan or strategy for issues such as: 1. General Fund needs 2. Library 3. Transportation 4. Parks and open space 5. Washington Square Regional Center TIGARD CITY COUNCIL MINUTES - January 6, 2003 page 5 6. Central Business District 7. Water System B. Explore the creation of an economic development program. GOAL 2: TIGARD CENTRAL BUSINESS DISTRICT A. Create a common vision for the Central Business District and build the energy to implement that vision through the Downtown Task Force. B. Support the activities of the Downtown Task Force as they provide input to the design of the Tigard commuter rail station and the zoning and development plan standards for the Central Business District. GOAL 3: TRANSPORTATION A. Aggressively pursue solutions to congestion of state, county and city facilities that cross through Tigard. 1. Reforming the Transportation Financing Task Force. 2. Identify project priorities and funding needs for state and city facilities. B. Continue working with Tri-Met to identify and fund additional intra-city bus routes. C. Right-of-way management. GOAL 4: PARKS AND RECREATION A. Continue the efforts of the Youth Forum. B. Complete or update parks master plans for city facilities. C. Explore the creation of a Parks and Recreation Advisory Board. i i GOAL 5: WATER s i A. Continue to evaluate options for a long-term water supply. TIGARD CITY COUNCIL MINUTES - January 6, 2003 page 6 GOAL 6: GROWTH MANAGEMENT A. Continue to evaluate Tigard's role in the provision of urban services outside the city limits. GOAL 7: COMMUNICATION A. Increase Tigard's communication with other elected bodies through active participation of City Council members and staff. B. Improve and expand communication with citizens, particularly communicating successes and future concerns. V. Non-Agenda Items: None. The meeting adjourned at 5:30 p.m. Attest: i aim Monahan, City Manager Mayor, City o Tigard Date: L \\TIG333\USR\DEPTS\ADM\CATHY\CCM\030106.DOC 2 J 0 u TIGAR.D CITY COUNCIL MINUTES - January 6, 2003 page 7 ® MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor & City Council PROM: Liz Newton, Assistant to the City Manager z'/ DATE: July 28, 2003 SUBJECT: Strategic Financial Plan Update Attached is an update of the Strategic Financial Plan. This report contains brief summaries of the status of each issue identified in the April 8, 2003, Strategic Financial Plan. The original report and minutes of the Council's April 8 discussion follow this update. I: 1ADULIZISTR4TEGIC FINANCIAL PLAN UPDATE COUNCIL MEMO.DOC L C D J 1 1 1 ® Strategic Financial Plan Update/Status Report August 5, 2003 This report contains brief summaries of the status of each issue identified in the April 8, 2003 Strategic Financial Plan. Please refer to that report for the original summary paper on each issue. Major Issues Tigard Local Option Property Tax Levy No action taken. Projections following adoption of the FY 2003-04 Budget indicate that the projected General Fund deficit has been delayed. This remains a long term issue, but no immediate action is required. Bull Mountain Annexation A draft Annexation Report has been prepared and submitted to Council. This issue is scheduled to be discussed with the Washington County Commission on July 29, 2003. New Revenue Source(s) No action to date. Research and analysis of potential new revenue sources will occur later in 2003. Long Term Water Supply and Water Rates Staff has presented Council with updates on the status of long term water supply options. The two most likely options at this point are a long-term wholesale water contract with the City of Portland and buy in to the Joint Water Commission. A Council decision is pending. Recreation District Creation or Annexation to THPRD A City and School District task force has been formed to discuss school funding options. Creation of a recreation district in the Tigard-Tualatin area remains an option under consideration. Transportation Bond This is a long term issue. No action to date. Parks and Open Spaces Acquisition Bond L No action to date. Otherlssues Parks Reservation Fees Parks Reservations Fees were increased by an average of 56% m effective January 1, 2004; 5% on January 1, 2005; and 5% on January 1, 2006. These increases are reflected in the Master Fee resolution J adopted in June 2003. Room Reservation Fees Room Reservation Fee increases were adopted as part of the Master ® Fee Resolution in June 2003. Traffic Citation Assessment Fee ® This proposal has been dropped. Court fines were increased by order of the Municipal Court judge. Non-Resident Police/Fire Service Fee This proposal has been dropped due to anticipated difficulty in collections. Franchise Fees A Right of Way Management Study was completed in June 2003. One of the recommendations in the study is to increase franchise fees to 5% for gas and electric utilities and 7% for telecommunications utilities. The study also recommended adoption of a Privilege Tax as back up to the franchise fees. Council has indicated support for these recommendations, but asked that implementation be postponed pending a decision on the Street Maintenance Fee. Land Use Fees Revised and Updated Fees are in process. These will be presented to Council in the fall of 2003. Urban Renewal Informational briefings presented to Council. No further action at this time. Water Revenue Bond Bonds for the Alberta Rider School reservoir and possibly buy-in costs for the JWC will be issued later this year. Street Maintenance Fee At Council direction, the Transportation Financing Task Force was reconvened to meet with representatives of The Oregon Grocers' Association (OGA) and other business groups. The OGA proposed an alternative approach towards establishment of the fee. City staff has reviewed the proposal and suggested some amendments at the Task Force meeting on July 21, 2003. The Task Force approved the proposal, with adjustments, for recommendation to the City Council on August 12, 2003. If Council provides direction to proceed with the fee, an ordinance and resolution will be submitted for Council consideration in October or November 2003. Actual inplementation of the new fee is not expected until early 2004. Mechanical Building Fees r Mechanical Building Fees were increased by an average of 21 % as part of the Master Fee resolution in June 2003. Urban Services No action has occurred on this issue, pending resolution of the Urban Growth Boundary expansion and the Bull Mountain Annexation discussions i City Buildings - Maintenance, Repair, Expansion $349,380 was included in the FY 2003-04 CIP for work on City buildings and facilities other than the new Library. The Five year Financial Forecast calls for continuing General Fund contributions to the Facility ® Fund to pay for maintenance and upgrade of City facilities. An ® assessment of long term building needs has not yet been completed. Library Fees WCCLS has increased library fines for all member libraries. City staff are continuing to explore the possibility of a coffee bar in the new library. Skate Park Construction A potential site for a skate park has been Identified on City-owned property at the City Hall complex. A citizen's group Is beginning fund raising for a new skate park, Other Jurisdictions' Issues WCCLS Local Option Levy Washington County is moving forward with pans to put a WCCLS local option property tax levy on the May 2004 ballot. L r J u eznxnciaJAIM • She spoke to the message conveyed to the legislature by the majority of voters who did not support Measure 28. • She noted the Public Employee Retirement System (PERS) Issues. Reform Is in order and it's a crisis that needs a solution. • She referred to Mayor Griffith's support in her pedestrian safety bill to require vehicles to stop when pedestrians are in crosswalks. • She said she is frustrated that education is not being funded adequately but added that education funding is better than that for other programs. There was discussion on local option levies, which Senator Burdick said would require a Constitutional amendment. She said she would vote for anything that would help education; however, she cautioned that the local option levy might run contrary to the school equalization requirements to be applied to schools throughout the state. • She advised she thought the "kicker" rebate to taxpayers when times are good was not a good idea. These dollars could be saved for use when the economy isn't as strong. 6. UPDATE ON NEW LIBRARY Library Director Barnes updated the Council on the progress on the new library. A groundbreaking ceremony will be held on Saturday, May 17, at 10 a.m. The Friends of the Library have successfully raised funds for the past few years, which they are saving for the new library. 7. ANNUAL VOLUNTEER REPORT Volunteer Coordinators Susan Koepping and Trish Stormont presented the annual volunteer report. Volunteers work in all City departments, generously contributing time, energy, skills, and experience. Sandra Thorne (Library), Jim Wolf (Police), and Craig Prosser (Finance) were present and related their experiences and the valuable contributions made by volunteers in their departments. 8. DISCUSSION ON STRATEGIC FINANCIAL PLAN After hearing a brief staff report from Finance Director Prosser, a motion was made by Councilor Moore, seconded by Councilor Sherwood, to adopt the Strategic Financial Plan Report. The motion was approved by a unanimous vote of Council present: Councilor President Dirksen - Yes Councilor Moore - Yes Councilor Sherwood - Yes Councilor Wilson - Yes Tigard City Council Meeting Minutes - April 8, 2003 Page 5 A copy of the Strategic Financial Plan is on file in the City Recorder's office. 9. COUNCIL LIAISON REPORTS Council Sherwood noted that Commissioner Roy Rogers advised her that Tigard does not have any projects submitted for the State Economic Development Projects list. City Manager Monahan responded that because of the requirements needed to submit projects for the list coupled with the fact that there is no funding available, staff decided not to submit any projects. Councilor Sherwood suggested that the City may want to consider submitting projects in the future. 10. NON AGENDA ITEMS: None 11. EXECUTIVE SESSION: Not held 12. ADJOURNMENT: 9:13 p.m. Attest: at erine eat ey, ity ecor er ayor, City o Tigard Date: I: WDMICATHYkCCM1030408.DOC 1 Tigard City Council Meeting Minutes - April 8, 2003 Page 6 AGENDA ITEM # FOR AGENDA OF April 8, 2003 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE _ Strategic Financial Plan Discussion PREPARED BY: Craig Prosser DEPT HEAD OK CITY MGR OK ISSUE BEFORE THE COUNCIL Should the Council adopt the draft Strategic Finance Plan developed at a Council workshop on February 18, 2003? STAFF RECOMMENDATION Adopt the Strategic Finance Plan INFORMATION SUMMARY At the 2003 Goal Setting session, Council identified a Strategic Finance Plan as its number one goal. The City is facing a number of financial challenges over the next several years. On February 18, 2003, the Council discussed upcoming financial issues to put them in context, identify inter-relationships between the various issues, develop a preliminary timeline, and provide preliminary direction to staff on issues to be pursued and issues not to consider. The February 18 discussion focused primarily on the revenue side of the issue. The other element of a Strategic Financial Plan is the expenditure side. That portion will be addressed in the annual Budget Process which is currently underway. At the February 18 workshop, the Council categorized all upcoming issues in to Major and Other categories. The Council then identified the three top priorities within each category. The Strategic Financial Plan shows the results of these discussions. In the major category, the top three priorities are: 1. Local Option Property Tax Levy 2. Bull Mountain annexation 3. New revenue sources In the Other Issue Category, the top three priorities are: 1. Various fee and charge increases 2. Urban Renewal 3. Water Revenue Bond If formally adopted by Council, the Strategic Finance Plan will be presented to the City's Budget Committee for review and consideration as the Budget Committee reviews the FY 2003-04 Budget. The Plan will help to frame Council discussions as it addresses financial issues that arise throughout the year. The Plan will also define the work plan of City staff as they work to implement the Council's priorities. - OTHER ALTERNATIVES CONSIDERED Revise the draft Strategic Finance Plan to reflect different priorities. Do not adopt a Plan. Address issues on a case-by-case basis as they arise. VISION TASK FORCE GOAL AND ACTION COMMITTEE STRATEGY This discussion supports Council Goal #l, Develop a long Range Financial Strategy. In addition, many of the items encompassed within this discussion relate directly to Vision Goals. ATTACHMENT LIST Strategic Finance Plan FISCAL NOTES The potential costs of each issue, if known, are shown in the Strategic Finance Plan. L r n _J 0 9 u Strategic Financial Plan Report March 25, 2003 i i City of Tigard Table of Contents Introduction ..........................................................................................1 Background ..........................................................................................1 Methodology .........................................................................................2 Next Steps in Plan ................................................................................3 Council Priorities Summaries Major Issues ................................................................................5 Other Issues ................................................................................6 Other Jurisdictions' Issues ...........................................................7 Major Issues Tigard Local Option Property Tax Levy .....................................11 Bull Mountain Annexation ..........................................................13 New Revenue Source(s) ...........................................................15 Long Term Water Supply and Water Rates ...............................17 Recreation District Creation, or Annexation to THPRD .............19 Transportation Bond ..................................................................21 Parks and Open Spaces Acquisition Bond ................................23 Other Issues Parks Reservations Fee ............................................................27 Room Reservations Fees ..........................................................29 Traffic Citation Assessment Fee ................................................31 Non-Resident Police/Fire Service Fee .......................................32 Franchise Fees ..........................................................................33 Land Use Fees ..........................................................................35 Urban Renewal ..........................................................................36 Water Revenue Bond ................................................................38 Street Maintenance Fee ............................................................40 L Mechanical Building Fees ..........................................................42 Urban Services ..........................................................................43 a City Buildings - Maintenance, Repair, Expansion .....................44 " Library Fees ...............................................................................46 .i Skate Park Construction ............................................................48 0 u Other Jurisdictions' Issues WCCLS Local Option Levy ........................................................51 Introduction At its 2003 Goal Setting Session, the Tigard City Council identified development of a Strategic Finance Plan as its number one goal for 2003. The Council met in a workshop session on February 18, 2003 to consider information presented by staff on upcoming fiscal challenges and opportunities. Based on that information, the Council identified key priorities to be addressed over the next several years. The following report presents the Council's priorities along with summary-level background information on each of the issues considered by Council. Background Over the past several years, Tigard has enjoyed a sound financial condition. Primary operating fund balances have remained strong. Tigard has worked hard to limit growth of expenditures and to manage existing revenue sources. Nevertheless, the long term outlook for City finances revealed declining fund balances as revenues fail to match the growth in expenditures. The growth in the City's primary General Fund revenue source, property taxes, was limited by Constitutional amendment to no more than 3% per year plus a proportional share of the value of new construction. Other key revenue sources (such as franchise fees and business taxes) are dependent upon the economy and have been affected by the recent recession. On the expenditure side, Cost of Living increases, the cost of health insurance benefits, and increased retirement system costs for a portion of the City workforce have increased labor costs more than 5% per year. And, like the private sector, the City has seen its costs for oil and gas, utilities, and key services increase faster than the overall rate of inflation. In addition, citizens expect increasing levels of service at high quality. The City's most recent five year financial forecast revealed more sharply declining fund balances with a General Fund deficit occurring possibly as early as FY 2003-04. This forecast clearly reflected recent economic conditions and price increases. Based on this information, City administration directed all departments to remove all new initiatives (except for the opening of the new library) from the five-year forecast. Staff also implemented a hiring slow-down and efforts to cut discretionary spending in the 6 current fiscal year (FY 2002-03). The five-year financial forecast was then re-run based C on the new information. The revised forecast projects a General Fund deficit in FY 2004-05. Under the Oregon constitution, governments are prohibited from experiencing deficits. i Because of this outlook, Council directed the development of a long term financial strategy. i 1 Methodology In dealing with any sort of financial issue, there are two basic approaches: Raise revenues and cut expenditures. The FY 2003-04 budget process has been developed to elicit information about how city expenditures might be reduced. This information will be presented to the City Budget Committee as part of the FY 2003-04 Proposed Budget, so it was not specifically addressed by Council as part of its discussions on the Strategic Finance Plan. The Council identified priorities for the City, and gave staff preliminary direction to start developing and researching some new or increased revenue options, but for the most part, will not take any final action on those options until the Budget Committee has had the opportunity to review expenditure plans. In reviewing information presented by staff, Council first developed a list of criteria and factors it used in evaluating issues. These criteria and factors are: ■ Existing services ■ User Fees (voluntary) ■ Broad-based ■ Existing source (increase rather than new) ■ Cost of collection ■ Non-resident contributions The Council then reviewed the list of twenty issues presented by staff. They deleted one issue (Skate Board Park) and added one issue (Library Revenues). Council then organized the 20 remaining issues into two categories: Major and Other. Major issues are large issues affecting a broad range of citizens and businesses, or which require a citywide vote for implem:sntatiun. Other issues are generally narrower in scope, or which may be implemented without a citywide vote. (One issue, Urban Renewal, will require a citywide vote under the Tigard City Charter, but its application L affects only a to-be-defined district within the City.) C Following the identification of the two categories, Council identified three top priorities within each category: i a Major Other Local Option Property Tax Fee Increases Bull Mountain Annexation Urban Renewal New Revenue Sources Water Revenue Bond 2 The following sections contain summary level information on each of the issues considered by Council. Next Steps in the Plan The Strategic Finance Plan is intended to provide a road map for the City over the next two to three years as it addresses financial issues. Not everything identified within the Plan will be implemented. Some things not included within the Plan will be done. The Plan does, however, provide an overall framework to use in approaching financial issues. Staff has already begun to conduct additional research and to develop issues identified as priorities for the Council. This information will be brought to Council within the timeframes identified for each individual issue in the following sections of this report. In the meantime, staff is in the process of developing the City Manager's Proposed FY 2003-04 Budget. As part of this process, staff is looking at options to reduce City spending. The Proposed Budget will be presented to the City Budget Committee on April 28, 2003. With all of this information in hand, the Council and the Budget Committee will determine the appropriate mix of expenditure reductions and revenue increases to address the City's financial challenges. L r 1 D 9 u 3 d OC H vy _J m W J 4 Long Term Financial Issues Council Priorities Major Issues (Citywide vote required and broad impact; big issue) Method of Potential Fund(s) Approval/ Priority Timing Issue Impacted Amount Implementation 1 2004 Tigard Local Option General TBD Citywide vote Property Tax Lev Revenue 2 2004 Bull Mountain General plus Differing Council Annexation others impacts on resolution, (Revenue & various Citywide vote, or Expenditure) funds and Bull Mountain operations vote 3 2004 New Revenue General TBD Council Source(s) (Revenue) Ordinance & Resolution Other TBD Long Term Water Water $80 to $90 Council Supply (Expenditure)_ million Resolution Other TBD Urban Services General plus TBD TBD others (Revenue & Expenditure) Other ? Recreation District General TBD Citywide (or Creation, or (Expenditure) larger) vote, or Annexation to Council initiation Tualatin Hills Parks of annexation and Recreation District Low 2006 Transportation Gas Tax, TIF $25 million Citywide vote General Obligation (Revenue & Bond Ex enditure Low ? Parks and Open Parks CIP, TBD Citywide vote Spaces Acquisition & General Construction General (Revenue & 06ligation Bond Expenditure) 5 Long Term Financial Issues Council Priorities Other Issues (More limited impact, or implemented by Council action) Priority Potential Fund(s) Method of Timing Issue Impacted Amount Approval/ Implementation 1 2003 Parks Reservations General To Be Council Fee Increase (Revenue) Determined Resolution TBD 1 2003 Room Reservations General TBD Council Fee Revenue Resolution 1 2003 Traffic Citation General $10/citation Council Assessment Fee (Revenue) $67,000 per Resolution ear 1 2003 Non-Resident General TBD Council Police/Fire Service (Revenue) Resolution Fee 1 2003 Franchise Fee General $720,000 to Council Increases (Revenue) $989,000 Resolution per year 1 2003 Land Use Fee General TBD Council Increase Revenue Resolution 2 2005 Urban Renewal Several TBD Citywide vote Revenue 3 Summer Water Revenue Water $8.84 to Council 2003 Bond (Revenue) $20.84 Resolution million Other 2003 Street Maintenance Gas Tax $1.6 million Council Fee (Revenue) per year Ordinance & Resolution Other 2003 Mechanical Building Building TBD Council Fees Revenue Resolution Other TBD City Buildings - General $990,000 City Budget Maintenance, (Expenditure) Repair, and Expansion Other TBD Library Revenues General TBD Council (Revenue) Ordinance & J Resolution, WCCLS Contract j 6 Long Term Financial Issues Other Jurisdictions Potential Method of Timing Issue Amount Approval/ Implementation May 2004 WCCLS Operating Levy $50 million over 5 Countywide vote years 26 per $1,000 2003 PERS Increases Employer rates State projected to triple (or more January Failure of Measure 28 TBD State 2003 2003 Tri-Met Payroll Tax Unknown Tri-Met L r n 3 v J 7 r J Strategic Finance Plan Major Issues a ~c w J 9 a o~ J 1Q Tigard Local Option Property Tax Levy Issue Summary Definition: A Local Option Property Tax Levy is allowed under the Oregon Constitution (Measure 50) to increase the local property tax rate to pay for needed services. It cannot exceed a period longer than 5 years, after which, it must be re-approved by voters. It can be used for any purpose (i.e. General Fund support) or it can be dedicated to specific services (i.e. Library, Parks, Police, etc.) Revenue Required/Revenue Potential: It is not yet known how much the City would require from a Local Option Property Tax Levy. That is dependent upon what combination (if any) of additional revenues or cuts in expenditures the Council wishes to pursue. A tax rate of 27¢/$1,000 of assessed valuation will raise $1,000,000 per year. Work Completed to date: No work on a Local Option Property Tax Levy has been done to date. Departments have preliminarily forecasted funding needs, but those forecasts have not yet been reviewed by the Budget Committee. Implementation Action Required: A Local Option Property Tax Levy must be approved by Council and placed on the ballot for approval by Tigard voters. It may only be voted on at one of the following elections: 1. May, subject to double-majority requirement 2. November of an odd-numbered year, subject to double majority requirement 3. November of even numbered year, subject to simple majority. Timing: If a Local Option Levy is approved by voters in May 2004, the first revenues would be received by the City in November 2004. If the Levy is approved by voters in November 2004, the first revenues would be received by the City on November 2005. Advantages: ■ Broad based revenue source Easily understandable (traditional funding source, familiar to voters) L ■ Stable • If approved as a rate per $1,000, it will grow with growth in assessed values n ■ Well-established collection mechanism in place Disadvantages: • Short term solution - it expires after 5 years, and then must be renewed by J voters • Oregon voters have been limiting property taxes for the fast 10 years. Tigard voters may not choose to increase their property taxes. ■ Competition on the ballot from other jurisdictions requesting voters to approve funding measures 11 ■ Competition. and confusion with WCCLS measure likely to be on the ballot in 2004 Recommendation: Continue to research and explore options with the goal of placing this issue before voters in May or November 2004. Council Priority/Discussion: Major Issue -I It will be important to coordinate this levy with other measures on the ballot, particularly the potential WCCLS Local Option Levy. a a r t J °m L7 W J 12 Mimi Bull Mountain Annexation Issue Summary Definition: Annexation of approximately 1,400 acres and 7,300 residents in the Bull Mountain area to the southwest of Tigard. Revenue Required/Revenue Potential: As of November 2001, General Fund Operating costs to serve the Bull Mountain area were estimated at $2.2 million per year. General Fund operating revenues were estimated at $3.8 million per year, so the area would more than pay for operating costs. Several capital funds, however, were projected to experience significant deficits in providing needed capital improvements to the area: Gas Tax - ($345,000), Traffic Impact Fee - ($7.6 million), and Parks CIP $18.3 million). Staff is currently reviewing this previous analysis to refine and update this information. Work Completed to date: This annexation has received extensive review by staff and public discussion. Staff prepared a preliminary annexation report which identified potential operating and capital costs and revenues. Staff is currently updating that study. Council has discussed this annexation on several occasions. In addition, the City has conducted two open houses in the Bull Mountain area to solicit residents' issues and concerns. Implementation Action Required: State law allows several methods for accomplishing an annexation: 1. Double Majority - petition from and majority of residents with a majority of the land value of the area. Annexation would be approved by the City Council. 2. Vote of the subject area - a vote of all residents in the affected area, with a majority deciding the question. 3. Vote of the subject area and the City, with a majority deciding the question. Timing: The timing of further discussion of this issue is not yet determined. Timing of the annexation itself is critical. If the annexation becomes effective after March, the City L will be responsible for providing services for up to a year and a half before residents r start paying for those services. Advantages: o • Improved services to residents of the Bull Mountain area, including police patrol, road maintenance, and other city services. Revenues are projected to more than 'J cover the cost of those services. • Residents obtain a voice in the governing and direction of the City of Tigard. • Residents of the Bull Mountain area would start paying for those services that they currently use, including parks, library, and arterial roads outside of the area. 13 Disadvantages: • The City of Tigard would assume responsibility for major capital needs of the area, primarily parks and roads. Revenues will not cover the costs of these facilities. • Strong resident opposition could create hard feelings which could jeopardize other City initiatives. Recommendation: • Continue working with residents and Washington County to analyze the benefits and costs of annexation. • Update the annexation study to refine cost, revenue and service needs analyses. • Work to educate Bull Mountain and City residents of the issues surrounding annexation of this area. Council Priority/Discussion: Major Issue - 2 L_ r ti J 0 u 14 New Revenue Source(s) Issue Summary Definition: There are many potential sources of revenue used to varying degrees by other jurisdictions within Oregon and nationally. It maybe to the City's advantage to consider one or more of these sources to supplement other General Fund revenues. A partial list of potential sources includes such items as: ■ Construction Excise Tax ■ Local Gas Tax ■ Local Hotel/Motel Tax ■ Local Sales Tax ■ Off-Street Parking Tax ■ Payroll Tax • Renter Service Fee ■ Utility Account Tax Revenue Required/Revenue Potential: Revenue potential of various options has not been determined. Potential candidates (if any) need to be identified before revenue potentials can be researched. Work Completed to date: None Implementation Action Required: Most of these types of revenue sources could be implemented by Council action. They would all be subject to referral, and some are more likely to generate interest in referral than others. Timing: Generally speaking, development of a new revenue source is quite time consuming. In addition to the time required to research identified options and to structure a proposal, it is also generally advisable to develop an extensive public involvement process, which can also be time consuming. Most likely the earliest a new revenue proposal could be brought to Council would be in late 2004. Advantages: Advantages of new revenue source will vary by the specific source developed. In general, however, new revenue sources will help to diversify the City's Y revenue base. This will help to insulate the City from fluctuations in the economy and will spread the burden of paying for City services. If constructed properly, new revenues can also increase equity within the City's revenue structure. :r Disadvantages: New revenue sources are rarely popular. Specific sources may generate high levels of opposition form specific interest groups. This opposition could affect other City initiatives 15 If the source chosen is entirely new, there may not be a readily available collection mechanism. If it is necessary to set up a revenue collection mechanism, administration of the new revenue source could be expensive. Recommendation: Direct staff to identify a preliminary list of potential revenue sources and to research issues related to those sources. Schedule a Council (or Budget Committee) workshop to present the results of that preliminary research. Make a determination following this workshop session whether or not to proceed with any new revenue sources. Council Priority/Discussion: Major Issue - 3 Explore options and potential for a local Beer and Wine Tax. L >C A r J D u a 16 Long Term Water Supply and Water Rates Issue Summary Definition: Tigard's vision document and Council goals both identify securing a long term water supply as an essential objective of the City. Revenue Required/Revenue Potential: Tigard is currently participating in two efforts to secure its long term water supply: the regionalization of the Bull Run system with a collection of approximately 12 agencies, and joining the Joint Water Commission (JWC) and expanding the Scoggins Dam / Henry Hagg Lake complex. The Bull Run regionalization proposal has developed a range of ownership models and scenarios that all hinge on the City of Portland regionalizing its water supply system and establishing a safe price. This option will cost the City of Tigard between $67 and $88 million dollars over the next 20 years. The JWC proposal hinges on the ability to secure permits and approvals to modify Scoggins Dam. The JWC proposal would cost the City of Tigard between $91 and $93 million dollars over the next 40 years. In summary, Tigard could be faced with making financial commitments with costs that best current estimates average approximately $80 to $90 million dollars over the next 20 to 40 year period. Both of these projects are consistent with and addressed specifically in the City's visioning documents. To help put these numbers in perspective, a $5 dollar per month increase in each monthly water bill in the Tigard Water Service area would raise approximately $1 million dollars annually. Work Completed to date: The City has completed two phases of study on the Bull Run regional process and is awaiting the City of Portland's determination of its interest and a sale price. The JWC project is pi- c.eeding through feasibility and environmental impact, and it will be approximately two years until staff can confidently say the project will move ahead. t Implementation Action Required: The Intergovernmental Water Board will initially produce a recommendation to the City Council. Following than, the City Council will need to indicate its approval. The cost of the preferred option will be paid for by issuance of Water Revenue bonds, repaid over a 20 to 30 year period. Council would approve issuance of the Water Revenue Bonds by 1 ordinance. i Timing: Staff is currently beginning the negotiation process with the JWC staff to allow for a limited partnership arrangement for Tigard, hopefully as early as FY 2003/04. This "first 17 increment" of investment could cost up to $12 million dollars. Decisions by Portland on sale price and continuing the regionalization decision are currently on hold, and Portland's schedule is unknown. The next major decision for the Scoggins Dam project is approximately two years away. Advantages: The advantages of securing a permanent supply source are many: control, financial stability, adequate future supply, and quality control top the list. Disadvantages: Cost. Because the Tigard Water Service Area is so late in securing its source the costs are high, and Tigard will not have the benefit of time to spread costs over a long period. Recommendation: Staff will continue to update Council on options and costs, with a future recommendation to authorize issuance of one or more water revenue bond to purchase some portion of future supply as options finalize. Council Priority/Discussion: Major Issue - Other L r J 18 Recreation District Creation, or Annexation to Tualatin Hills Parks and Recreation District Issue Summary Definition: Creation of a new Recreation District to service the Tigard/Tualatin area, or requesting annexation of this area to the Tualatin Hills Parks and Recreation District (THPRD). Such an action would be designed to improve parks and recreation services to area residents and to provide services not currently available. This issue, if implemented could help to address the Skate park Construction issue and the Parks and Open Spaces Bond issue, listed separately in this report. Revenue Required/Revenue Potential: To be determined Work Completed to date: Two years ago, a proposal was placed before area voters to create and fund the Atfalati Recreation District. The proposal was rejected by voters. No further action has been taken. Area residents have begun discussing this option again. Implementation Action Required: For creation of a new district, cities in the proposed area would have to pass resolutions of support, followed by action by the Washington County Commission to place the proposal on the ballot. An approving vote by residents of the proposed district would be required. For annexation to THPRD, it is not yet known what initiating action would be required. Presumably either cities within the area to be annexed and citizens could petition the THPRD Board for annexation. Timing: Unknown. Discussions in the community are at a very preliminary stage. Advantages: Creation of a new special district would provide additional parks and recreation opportunities to area residents if the measure also creates a sufficient funding base (presumably through a new permanent property tax rate for the new i district.) Annexation to THPRD would accomplish the same end, by extending r THPRD's existing tax rate to the newly annexed area. THPRD's permanent operating tax rate is $1.3073 per $1,000 of assessed valuation. 'r Disadvantages: o ■ Either option will increase property taxes to area residents 9 ■ Creation of a new district will multiply the number of overlapping jurisdictions, i which could cause some confusion among residents and coordination issues between jurisdictions. ■ Annexation to THPRD could also cause some confusion among residents and coordination issues between jurisdictions. 19 Recommendation: Take no action at this time. Monitor developments to see how this issue develops. Council Priority/Discussion: Major Issue - Other The City will likely not be the major player on this issue. It appears to be arising through the School District discussions concerning closure of the school pools. If the move to create a new special district gels, however, the City will have to pass a resolution stating its position. If the City passes a resolution of support, this issue may impact the City's ability to achieve other priorities. L r J 0 J J 20 Transportation Bond Issue Summary Definition: A Transportation Bond is a funding mechanism whereby a local jurisdiction can sell bonds to perform transportation-related improvements. It requires a Citywide vote and the repayment of the bonds over a typical 10 or 20 year period would come from an increase in the local property tax rate. Revenue Required/Revenue Potential: Approximately $25 million is the revenue needed to address some of the key transportation-related improvements needed to improve local circulation in the City. The increase in the tax rate needed to support this amount would be dependent on the interest rate, on the City's assessed value, and on the length of the bond issue period. A bond issue for $25 million at an assumed interest rate of 4.75% over a 10 year period would be 90¢ per $1,000 of assessed value. At a 20-year period with an interest rate of 4.50%, the rate would be 55¢ per $1,000 of assessed value. Hence, the expected range in election year 2006 would be between 50¢ and $1.00 per $1,000 of assessed value for a bond issue in the amount of $25 million. Work Completed to date: A Council-appointed Transportation Bond Task Force selected a list of transportation, safety, sidewalk, and pedestrian/bikepath projects to meet the City's goals of improving traffic safety, improving traffic flow, and enhancing pedestrian and bike transportation. Council approved the proposed list of projects and submitted a Proposed Transportation Bond in the amount of $16 million as Ballot Measure 34-20 in the November 7, 2000 general election. The proposed bond issue did not pass. The need to address the major transportation improvement needs of the City has grown even more urgent since then. In January 2002, Council adopted the Tigard Transportation System Plan. This plan provides an extensive list of projects necessary to accommodate current and future traffic. It provides the basis for project selection for a future transportation bond issue. Implementation Action Required: A Citywide vote of approval is needed for a bond issue. This requires simple majority in a general election, but requires a double majority r in any other election. L Timing: The earliest that a bond issue could be submitted is in the 2006 general election. This is in recognition of the other ballot issues that need to be submitted in the 2004 election year. D Advantages: The reasons for proposing a Transportation Bond are as follows: a Accelerates the design and construction of major transportation projects to increase capacity and enhance traffic flow. Some of these improvements are needed now to address current traffic problems. 21 • Improves traffic and pedestrian safety through intersection improvements and separation of various modes of travel (bike lanes and sidewalks) as part of the improvements. Disadvantages: The drawbacks to the Transportation Bond are: • It requires a vote of the citizens to increase their property tax. The voters have not shown an inclination to favor such an increase. • Competition on the ballot from other jurisdictions may work against passage. • May conflict with other City initiatives, depending upon what happens in election year 2004. Recommendation: The recommendation is that the City plan for a Transportation Bond issue in the amount of $25 million to be submitted to the voters in election year 2006. This would require creation of a committee or task force to select projects that voters would deem as essential. It would also require a concerted effort by the City, City Council, and the community to conduct a public awareness campaign to convince the voters to approve the bond issue. Council Priority/Discussion: Major Issue - Low This issue was assigned a low priority primarily because it is not expected to be ready to go to the voters until 2006. a J U J 22 M11 111111M Parks and Open Spaces Acquisition Bond Issue Summary Definition: A Parks and Open Spaces Acquisition Bond is allowed under Oregon Statutes. General Obligation bonds require a citywide vote, and if approved, authorize a special debt service property tax levy. The City could also issue other types of bonds, which do not require voter approval, but would have to identify a source of revenue to be pledged to annual debt service payments. The City currently does not have such a source of revenue. In 1999 the City adopted a 10-year Park System Master Plan. This Park System Master Plan was the result of a comprehensive, collaborative effort between the citizens of Tigard, Tigard staff, and consultants. Tigard's Park System Master Plan is a comprehensive needs assessment and long range plan for meeting the community's parks and recreation needs over a ten-year period. The plan identifies many projects totaling over $21,000,000. The plan examines the impacts of the community's growing demand for services, the effects of related planning efforts, the implications of demographic changes, and the contributions made by the park system in providing relief from high density urban development. Further, the plan sets forth a Capital Improvement Program (CIP) which functions as a framework plan or tentative list of projects for a ten-year period. The CIP is reviewed and updated annually to reflect the changing needs of the community and changes in available funding for financing park capital projects. Decisions regarding the actual expenditure of funds for individual park capital projects are incorporated into the City's annual budget process. Revenue Required/Revenue Potential: The revenue required to accomplish the projects identified for the next 5-years (FY 03-04 thru FY 07-08) is approximately $4,000,000. SDC generated revenue, based on recent actuals, are down over the last few years (approximately $350K per year). As long as the economy remains as it is, it is projected that SDC funds will continue to remain flat during the next few years. A L successful park and open space bond measure would provide the necessary revenues C to acquire and development parks. A tax rate of 27¢ per $1,000 of assessed valuation s will raise $1,000,000 toward annual debt service. Work Completed to date: No work on a Parks and Open Spaces Bond Measure has i been done to date. Implementation Action Required: A bond measure must be approved by Council and placed on the ballot for approval by Tigard residents. Timing: To be determined 23 Advantages: • A bond measure would provide the funds necessary to supplement SDC funds for the acquisition and development of parks and open spaces • Easily understandable (known funding source, familiar to voters) Disadvantages: • Tigard residents have been asked to increase taxes on several occasions over the past several years. Specifically, the successful passage of the new Library Bond and the School District Bond. • Although additional bond funds would be advantageous, the projections show limited funding for parks operations and maintenance. The City may not be able to adequately maintain new facilities. Recommendation: Do not consider a bond measure until the City is able to fund operating costs. Council Priority/Discussion: Major Issue - Other The Council expressed several concerns about this issue: It may conflict with the City's number 1 priority - gaining voter approval for a Local Option Levy, the City does not currently have sufficient funds to maintain and operate the parks it already has, and it is not clear how this issue would relate to the possible creation of a new parks and recreation district. iL OC t- _J t9 aJ J 24 Strategic Finance Plan Other Issues 25 h Nr C J m t7 W J 26 Parks Reservations Fees Issue Summary Definition: Resident and Non-Resident fees and charges for the use of park facilities, primarily shelter rentals, have been in effective for many years. The City currently charges non-resident's double the resident fee. Although funds derived from fees and charges are nominal, they help defray maintenance costs. Revenue Potential: It is possible to increase the amount of revenue derived from fees and charges, thereby recovering a larger proportion of the cost of taking reservations and providing services to groups. Current Park Reservation Fees Application Fee $10.00 Covered Picnic Area Rental Tigard Based Rental Rate Groups up to 50 $6.00/hour 51 to 100 $8.00/hour 101 to 150 $15.00/hour 151 to 200 $20.00/hour 201 to 250 $25.00/hour Non-Tigard Based Rental Rate Groups up to 50 $12.00/hour 51 to 100 $16.00/hour 101 to 150 $30.00/hour 151 to 200 $40.00/hour 201 to 250 $50.00/hour Soccer/Ballfield= Tigard Based Rental Rate $4.00/hour Non-Tigard Based Rentdi Rate $8.00/hour L Work Completed to date: A study of local area 2002 fees and charges has been C completed. Public Works staff is currently preparing a recommendation to increase fees and charges. A substantial fee increase will be necessary if the City is to have fees and charges comparable to surrounding jurisdictions. 3 ry Implementation Action Required: Increased fees and charges must be approved by City Council. Timing: It anticipated that a recommendation to increase fees and charges will be made during the budget approval process. 27 Advantages: • Increased revenues will help to defray increasing maintenance costs • Tigard fees will be more in-line with neighboring jurisdictions. Disadvantages: • Even though a substantial rate increase may be approved, the yield will remain nominal • Residents will not like increase Recommendation: Continue with analysis and make recommendation that puts Tigard's fees more in-line with neighboring jurisdictions. Council Priority/Discussion: Other Issues -I L r r J 0 9 u J r 28 Room Reservation Fees Issue Summary Definition: Room rental fees are currently charged for using the Tigard Senior Center and in limited circumstances the Town Hall and Water Auditorium. A fee could be charged to users for use of all City rooms. Revenue Required/Revenue Potential: At this time, the revenue potential is unknown. Room use fees will be set at a rate that covers the cost of staff time, utilities, and wear on the facilities. With the completion of the new Library there will be additional revenue potential through that complex. In addition to the community room, there are two rooms within the Library that may be made available for renting during the Library's business hours. Also, the proposed re-model configuration for the current Library building allows for two meeting rooms that could be rented by the public during non-business hours. Current Meeting Room Reservation Fees & Deposits Cleaning Deposit (Non-Senior Center) Groups of 80 or less $150.00 Groups of more than 80 $250.00 Cleaning Deposit (Senior Center) Groups of 80 or less - no food/bev $50.00 Groups of 80 or less - food/bev $150.00 Groups of more than 80 - no food/bev $100.00 Groups of more than 80 - food/bev $250.00 Red Rock Creek Conference Room Class 1 and 2 $0.00 Class 3 $10.00/hr Class 4 $15.00/hr Richard M. Brown Auditorium L Class 1 and 2 $0.00 Class 3 $30.00/hr n Class 4 $35.00/hr Senior Center Activity Room Class 1 and 2 $0.00 o Class 3 $10.00/hr u Class 4 $20.00/hr Class 5 $25.00/hr 29 Senior Center Classroom or Craft Room Class 1 and 2 $0.00 Class 3 $5.00/hr Class 4 $10.00/hr Class 5 $15.00/hr Town Hall Class 1 and 2 $0.00 Class 3 $20.00/hr Class 4 $25.00/hr Water Lobby Conference Room Class 1 and 2 $0.00 Class 3 $10.001hr Class 4 $15.00/hr Work Completed to date: No significant work has been done to date. Implementation Action Required: Room use fees are part of the City's Room Use Policy which was adopted by City Council. Policy changes, including the classification of room users and room rental fees, will need to be approved by City Council. Timing: Present the changes to the Room Use Policy to City Council by the end of May. If City Council approves the changes to the Room Use Policy, the changes in classification and fee amounts will become effective for reservations made from July 1, 2003 forward. Advantages: • The City will recover a larger portion of the cost of operating the program. • It is a benefit-related fee. In other words, only those who use the rooms will incur the cost. • The City will be providing citizen's with a low cost alternative for their personal room use. Disadvantages: L Current room users will perceive the fee as a reduction in services. This will be C especially true of non-profit groups. Recommendation: Proceed with updating the City's Room Use Policy. 0 9 Council Priority/Discussion: Other Issues -I u 30 Traffic Citation Assessment Fee Issue Summary Definition: A Traffic Citation Assessment Fee is an additional charge levied on all persons who plead or are found guilty of committing a traffic violation. This charge is in addition to any fine or assessment levied by the municipal court. Revenue Required/Revenue Potential: The current base fine for a traffic violation is $50. In addition, the court collects additional charges for the Oregon Court System (unitary assessment) and Washington County. These additional costs total $49. The total to the offender is therefore $99. (A portion of this may be waived by the judge.) A Traffic Citation Assessment Fee would be $10 per ticket, raising the total cost to the offender to $109. Based on 6,700 citations issued per year, this charge would raise $67,000. Work Completed to date: Information on a similar charge imposed by the City of Milwaukie has been collected. Tigard's charge could be modeled on the City of Milwaukie ordinance. Implementation Action Required: Council would have to amend Tigard Municipal Code to create authority for the assessment. The Council would then have to add this charge to the Master Fee Resolution. Timing: To be determined. This charge could be implemented by June 2003. Advantages: ■ The charge would help pay for police programs, including traffic enforcement, training, education, and community programs. ■ The charge is targeted to those who generate costs in the Police department through violation of traffic codes. Disadvantages: L ■ The addition of this charge would raise total costs charged to traffic offenders to an amount greater than the base fine ($59 vs. $50) e ■ Unless otherwise specified in Code, the municipal judge could waive this charge, thereby reducing collections 3 Recommendation: Consider adopting a Traffic Citation Assessment Fee by June 7 2003. Council Priority/Discussion: Other Issues -I 31 Non-Resident Police/Fire Service Fee Issue Summary Definition: A Non-Resident Police/Fire Service Fee is a special fee charged to non- City, adult residents each time they receive service from the City. This type of fee is charged by several fire departments, including the City of McMinnville, for a variety of services, including traffic accidents. Revenue Required/Revenue Potential: To be determined Work Completed to date: None. Some minimal research has been done by the Police Department, but no in depth work has been done. Implementation Action Required: Council would adopt an ordinance authorizing a fee and would then adopt a resolution amending the City's Master Fee Resolution Timing: The Police Department reports that it could have research completed in about one month. Following that, Council could adopt this fee by June 2003. Advantages: ■ Non-residents would pay for services they receive that they do not currently pay for through payment of taxes or other means. ■ This would help off-set Tigard taxpayers' costs for providing services to major regional attractors, such as Washington Square and Highway 99. ■ Money raised would help pay for services in the Police Department which might otherwise have to be scaled back. Disadvantages: ■ Collection could be difficult since, by definition, all payers would be out-of-town residents. ■ Other communities could feel that the reciprocity by which they provide services to Tigard residents while they are in other communities may be compromised. L Recommendation: Continue to research this proposal, with particular emphasis on the IC collection mechanism. Prepare a report for Council consideration within the next two e months. Council Priority/Discussion: Other Issues 1 0 Although this item was ranked as a #1 priority with the Other Issues category, along with other new fees and fee increases, Council expressed concern that this would be a difficult fee to collect. Staff was directed to research this issue further, but it may be dropped from further consideration. 32 - -M Franchise Fees Issue Summary Definition: The City charges private utility companies a fee for use of public rights-of- way to string their wires, or lay pipes and conduit. The fee is calculated as a percentage of the utility's gross revenues collected within the City of Tigard. State law limits the maximum fess and taxes to no more than 5% for gas and electric and 7% for telecommunications. The City currently charges the electric utility 3.5%, the natural gas utility 3%, and telecommunications companies 5%. The City does not charge its water and sewer utilities any fee, though many cities do. Revenue Required/Revenue Potential: Raising electric and natural gas franchise fees to 5% (the same as telecommunications) would raise approximately $720,000 per year for the General Fund. Raising telecommunication franchise fees from 5% to 7% would raise approximately $134,000. Charging a 5% franchise fee to the City's water utility would raise approximately $135,000 per year. Work Completed to date: No work has been done on this issue to date. Implementation Action Required: Council resolution or ordinance. Timing: The Northwest Natural Gas franchise agreement and many telecommunications franchise agreements require 180 days notice before any increase in the franchise fee. Advantages: ■ Builds off an existing collection that is in place and well established ■ Broad based - it affects a wide variety of payers (though utility bills) ■ Relatively stable revenue source ■ Electric and natural gas utility rates have recently been lowered (following large increases last year). This will minimize impact on utility customers. ■ Increasing gas and electric franchise fees to 5% would achieve equity among the private utilities. Disadvantages: ■ Increased fees will be passed on to utility customers, thereby increasing their bills ■ Under state law, the incremental increase suggested would be itemized on customer bills ■ Telecommunications companies are challenging local franchise authority nationally and in Oregon. Increasing franchise fees could add to this push. Recommendation: ■ Consider raising gas and electric franchise fees to 5% 33 ■ Do not increase telecommunications franchise fees. Maintain those at 5% to achieve equity among the private utilities ■ Explore options for charging a franchise fee of no more than 5% on public utilities (water and sewer.) If options are feasible, consider instituting water and sewer franchise fees. Council Priority/Discussion: Other Issues -I IL oc _J fd W J 34 Land Use Fees Issue Summary Definition: The City charges applicants for land use actions a variety of fees to recover costs associated with those applications. Fees were last increased in 2002, but that fee increase did not include any costs incurred by Engineering and Public Works in reviewing and processing applications. Support for Long Range Planning activities directly relating to development activity was also not recognized. Revisions to land use and building fees are necessary to capture costs associated with processing of land use applications. Revenue Required/Revenue Potential: To be determined. This issue will be studied to develop a fee structure that will include recovery of costs for time worked by Engineering, Public Works, and Long Range Planning, in addition to time worked by Current Planning. The total revenue potential cannot be accurately determined until that study takes place. Work Completed to date: Limited work has occurred to date. Time tracking procedures will be in place shortly. Implementation Action Required: Council approval Timing: Revised fees could be acted upon by Council by July 2003 Advantages: e Development pays proportionate share of direct and indirect costs associated with processing land use and building applications. e General Fund support of development activities would be reduced. Disadvantages: e Land use fees increase. L e Development-related fees could be higher in Tigard than in surrounding g jurisdictions. e Development-related fees supporting Long Range Planning activities are not common. J p" Recommendation: e Proceed with analysis; include time tracking to determine costs. s e Develop a fee proposal to present to Council by July 2003 Council Priority/Discussion: Other Issues - 1 35 Urban Renewal Issue Summary Definition: Creation of one or more urban renewal districts to generate dedicated revenues to pay for needed improvements in the Washington Square Regional Center, Downtown Tigard, and/or Commuter Rail Line. The Tigard Charter currently prohibits any renewal districts without an approving vote of the people. Revenue Required/Revenue Potential: To be determined. The Washington Square regional Center Plan identifies substantial improvements needed in that area, with costs to match. These costs can only be partially covered by existing revenues and fund sources. Work Completed to date: Council has received three informational briefings of the mechanics of urban renewal and urban renewal financing. Council has approved the Washington Square Regional Center Plan and the Washington Square Regional Center financing plan, which identify needed improvements and potential costs. Washington County is actively pursuing funding for the Commuter Rail Line and is exploring urban renewal as a means of providing funding for a portion of the improvements required, particularly in the area of Commuter Line Stations, of which Tigard will have two. The Central Business District has discussed plans for needed improvements, but to date, not central vision or plan has emerged. Implementation Action Required: City Charter prohibits the formation of any urban renewal district without an affirmative citywide vote. Council could refer one of two measures to the people: 1. An amendment of City Charter to remove the requirement for a citywide vote, or 2. Approval of one or more urban renewal districts. Z 0) Timing: To be determined Advantages: ® Creation of a dedicated funding source, that grows with growth in assessed values in the urban renewal district, that can be used to pay for needed improvements. • Public improvements paid for by urban renewal will spur private investment that will further increase values in the district, and will accommodate job and housing growth 36 • Once the urban renewal plan is accomplished and all costs are paid for, the assessed value is returned to the general tax roles and help pay for citywide service. Disadvantages: • Urban renewal "locks up" growth in assessed values during the life of the urban renewal plan, thereby limiting growth in tax revenues for all overlapping taxing jurisdictions. • Urban renewal mechanics are complicated and difficult to explain to the public in an election setting. • Creation of an urban renewal district requires the active support of major property owners within the proposed district. Recommendation: • Continue to explore urban renewal as an option for Tigard • Work with property owners in the Washington Square Regional Center and the Tigard Central Business district, and with Washington County to assess the level of interest and support for urban renewal. • Develop a proposed timeline for resolution of this question. Council Priority/Discussion: Other Issues - 2 Council recognized that this issue will require a citywide vote, either to form the district(s) or to remove the charter requirement for a citywide vote to remove the charter provision. This was placed in the Other Issues Category because it will primarily affect those areas chosen for inclusion within an urban renewal district, should one be formed. If the decision is made to attempt to amend the City charter to remove the provision requiring a citywide vote to form a district, this issue will proceed in a two-step process (charter amendment, then formation of one or more districts). i 37 Water Revenue Bond Issue Summary Definition: A water revenue bond is a type of bond backed by future water revenues (as compared to a general obligation bond which pledges property taxes as repayment). Tigard is considering this type of bond to finance capital improvements and possibly the up front or "buy in "costs the City would incur to secure a long term water supply. Revenue Required/Revenue Potential: The City will be considering the use of water revenue bonds to finance all or a portion of the upcoming water reservoir/pump station/transmission piping project package, named the 550 ft Service Zone Water Supply System Improvements. This group of projects is currently estimated to cost $8.84 million dollars. In addition to the above, the City has been invited to enter into negotiations to become a partner in the Joint Water Commission (JWC). The City hopes to negotiate an ownership percentage that would allow the City to obtain up to 4 million gallons per day (MGD), and to allow the costs to Tigard to be paid overtime as a component of water purchase costs. The JWC could require this to be a cash arrangement. Staff anticipates completing this negotiation by April, 2003. Buy in costs could range from $2 to $3 per gallon. Assuming the most expensive, where the City would be successful in obtaining 4MGD at a cost of $3 per gallon and the current JWC owners demanded cash, Tigard would need to raise an additional $12 million dollars via revenue bonds. In summary, Tigard could be looking to issue up to $20 million dollars of revenue bonds within the next two years. Both of these projects are consistent with and addressed specifically in the City's visioning documents. Work Completed to date: The City has currently done two things in anticipation of these expenses: the Council passed a resolution that sets water rates for the next three fiscal years, and the City has retained a consultant to develop a water financial planning and rate model to better evaluate out options and scenarios. This rate model also will L be important in the issuance of water revenue bonds. e Implementation Action Required: The Intergovernmental Water Board will initially produce a recommendation to the City Council. Following that, the City Council may authorize the issuance of revenue bonds by ordinance. D Timing: Staff work will begin soon, with the actual issuance of the bonds anticipated late in 2003 or early 2004 Advantages: Revenue bonds are excellent funding mechanisms for utility capital improvements for three reasons: (1) they do not compete with other public funding 38 based on general revenues and they do not require voter approval, (2) they extend the concept of "cost of service" principles where a user of a utility pays their proportional share of the cost to provide that specific service, and (3) they spread the cost of an improvement to future users of that improvement (intergenerational equity). Revenue bond repayment periods are generally also shorter than the useful life of the project they fund. In addition the current costs of borrowing money are very favorable. Disadvantages: Not using bonding of some type puts our utilities into the business model of pay cash as you go which is not viable where such large amounts of capital are needed. In addition, revenue bonds carry have a higher interest rate than general obligation bonds, because their repayment is based on the financial stability of the system and not on an unlimited power to tax. Recommendation: Staff will continue to update Council on options and costs, with a future recommendation probably being to authorize issuance of one or more water revenue bond issuances. Council Priority/Discussion: Other Issues - 3 C 't I i 39 Street Maintenance Fee Issue Summary Definition: The Street Maintenance Fee is a monthly fee based on use of the transportation system, and is typically based on trip generation rates. The fee would be charged to each household and business in the City and would be collected through the City's regular monthly sewer and water bill. The intent is to have the users of the road system share the costs of the corrective and preventative maintenance needed to keep the street system operating at an adequate level. The revenue received through the fee would be dedicated to maintenance of the street system. Revenue Required/Revenue Potential: Approximately $1,605,000 is needed for the following: $800,000 for street maintenance, $445,000 for street light and traffic signal system energy and maintenance costs, $270,000 for rights-of-way maintenance on collectors and arterials, and $90,000 for sidewalk maintenance on collectors and arterials. The proposed charge for single family residential structures is $2.54 per month, and for multi-family units $1.76 per month per unit. Work Completed to date: The implementation of this fee was recommended to the City Council over a year and a half ago by the City's Transportation Financing Strategies Task Force, a citizen task force formed to evaluate and recommend to Council feasible alternative funding sources for street maintenance and street expansion needs. The Task Force conducted an extensive public process to enhance citizen awareness of the need for the proposed fee and to receive input from citizens and businesses. The proposed fee has been discussed with Council several times and is again scheduled for further Council discussion at the March 18, 2003 workshop meeting. Council direction on the possibility of adoption will be requested at that meeting. Implementation Action Required: Council has the authority to establish the Street Maintenance fee. The proposed fee would be adopted by ordinance and the rates to be charged would be established by resolution. r Timing: If Council does approve implementation, the effective date for the fee would be set several months after Council adoption of the ordinance and resolution. This would give the City of Tigard staff sufficient time to set up the fund and do the necessary work j to ensure that the amounts can be incorporated on the utility bills without a glitch in the billing process. i Advantages: The following are the reasons for adopting the fee: Would provide a new, stable source of revenue for street system maintenance. 40 • The gas tax revenues are not restricted to maintenance, but can be used for a wide variety of needed street improvements. However, these funds have been used primarily for maintenance because of the large maintenance backlog and the inadequacy of the current gas tax rate to address anything beyond that. The proposed Street Maintenance Fee would supplement the gas tax and would be used in the maintenance of the street system. This would allow use of some gas tax revenues to address reconstruction, installation of crucial pedestrian connections, and other street improvement needs. • Would allow the City to establish a long-term plan to address the $4 million backlog in street maintenance needs. • Early adoption of the fee could establish that new revenue source before the state legislature proposes any preemptive action directed against implementation of street utility fees. Disadvantages: The following are the drawbacks to adoption of the fee: • The fee would have residential land uses pay 28% of the total amount with the rest coming from non-residential land uses. Some businesses oppose it because of its heavy charges to the commercial sector. • Some opponents are labeling the fee as a tax. Depending upon how the fee is structured, it could be construed as a tax. • The Oregon Grocery Industry Association has threatened to take legal action to stop implementation of the fee. • It could be referred to the voters through the initiative process. • The implementation of the fee could interfere with other City initiatives, such as a possible operating levy and a transportation bond issue. Recommendation: The recommendation is that City Council adopt the fee and direct implementation. This would raise new revenue for urgently needed maintenance of the street system. Many cities have either taken actin i or are seriously contemplating initiation of a similar fee. Future legislative action could affect the fee adoption, if delayed. Council Priority/Discussion: Other Issues - Other The Council position on this issue has not yet been decided. Some members have expressed strong support. Some members have expressed strong reservations, particularly about the timing of this issue. Council will hold further discussions on this issue. 41 Mechanical Building Fees Issue Summary Definition: Mechanical Building fee increase to recover costs. Fees for building and plumbing are not proposed for increase. These fee increases will not affect the General Fund. Revenue Required/Revenue Potential: Unknown at this point. Mechanical fees are budgeted in the Building Fund. Overall, the Building Fund is in good condition due to cost recovery of the other specialty fees for other trades (building, plumbing, etc.), but fees from the other trades are subsidizing the mechanical trades. Policy established by state law discourages (but does not prohibit) subsidies between the trades. Work Completed to date: All building fees were increased in 1999 and 2000 after 20 or more years of no increases. These increases were accomplished following a building study and several public hearings. No work has been done since 2000 on any building fee increases. Implementation Action Required: Adoption of resolution establishing revised fees following a public review process mandated by state law. Timing: Fee increase should be coordinated with yearly fee updates in June 2003. Advantages: Mechanical permit fees will be made current and will pay for the cost of providing service. o A mechanical fee increase will decrease the subsidy from other building specialty trades for the cost of mechanical inspections and plans checks. Disadvantages: • Any increase will increase costs for builders and remodelers and could be passed on the purchasers of new and remodeled buildings. L • The building industry has traditionally opposed Tigard building fee increases. "r Recommendation: Proceed with fee study and consider increasing fees by June 2003. Council Priority/Discussion: Other Issues - Other D a 42 Urban Services Issue Summary Definition: Services for areas outside existing City limits, but within the City's urban services boundary (other than Bull Mountain). This includes the areas to the south and west of Bull Mountain soon to be brought into the urban growth boundary. Revenue Required/Revenue Potential: Unknown at this point. Work Completed to date: No work has been completed to date on this issue. Implementation Action Required: At some point, the City will be required to provide public services to areas outside the existing City limits but within the City's urban services boundary. This will not occur until after those areas are annexed. No work to identify those potential costs and revenues has been done to date. Public Facilities and Service Plans are needed to assess existing and future needs. Timing: To be determined. Considerable resources will be necessary to complete necessary studies. Advantages: • Improved services to residents of the urban services area, including police patrol, road maintenance, and other city services. • Residents obtain a voice in the governing and direction of the City of Tigard. • Residents of the urban services area would start paying for those services that they currently use, including parks, library, and arterial roads outside of the area. Disadvantages: • The City of Tigard would assume responsibility for capital needs of the areas. These needs could be substantial. • Resident opposition could create hard feelings which could jeopardize other City initiatives. L r Recommendation: • Conduct a preliminary, high-level survey to attempt to define major service issues within these areas. • Identify logical areas of opportunity /need. o . Prepare a preliminary timeline for additional work, consistent with existing staff resources and workload. Council Priority/Discussion: Other Issues - Other 43 City Buildings - Maintenance, Repair, Expansion Issue Summary Definition: The City owns and operates several buildings, including City Hall, the old Library, the Police Department, the Niche, the Senior Center, the Public Works Building and annex, and Canterbury Water facility. In addition, the City operates the Water Building, which is owned by the Tigard Water District. The City does not have a dedicated source of funding to provide for the maintenance, repair or expansion of these facilities. The City has traditionally set aside General Funds in anticipation of future building needs. Revenue Required/Revenue Potential: Projects identified to date include: • FY03104 Projects o HVAC Replacement Project for the Senior Center - $50,000 o Seismic Upgrade Project for the Police Dept. - $40,000 o Access Control for Water Building Facility & Canterbury Water Facility security - $90,000 o Space Planning for the Water Building - $30,000 o Construction Drawings & Construction Administration for Old Library/City Hall Remodel - $136,050 o Office Renovations Old Library/City Hall - $500,000 • FY04/05 Projects o Office Renovations Old Library/City Hall - $600,000 • FY05/06 Projects o Water Building Renovations - $500,000 • FY.06/07 Projects o Senior Center Seismic Upgrade - $45,000 C In addition to identified projects, there is a need for contingency funds for needs that may arise during the planning period. The total cost of remodeling and upgrading the old library and City Hall for new uses is i estimated to cost $1.16 million. The City currently has a set aside of $1 million for this i project. i i No set aside exists for other identified needs. Work Completed to date: A seismic study of city facilities was performed in 2000 to identify the seismic upgrade needs of the facilities. A consultant was hired this fiscal 44 year to identify current and future space needs for the City and to provide a layout of the space usage of the old library and the City Hall based on those needs. This study is near completion. Implementation Action Required: Projects will be identified and approved in the City's Capital Improvement Plan. Annual funding is provided through approval of the City Budget. Timing: It is anticipated that the projects identified will be implemented according to the budget approval of the fiscal years indicated if necessary funding is available. Advantages: • Provides for greater security of facilities • Meets the long term growth needs of the City • Provides for a safe and effective work environment for staff and the public • Improved use of facilities to provide better customer service • Provides for more meeting rooms for public use Disadvantages: • No dedicated funding source. Capital funding need must compete with operating funding needs. • Delaying projects would result in increased cost of projects and increased safety and or security risks Recommendation: • Develop a capital plan for all City facilities, including identifying renewal and replacement and upgrade needs. • Develop a policies and a plan for funding renewal and replacement needs during the annual budget process. • Present recommendations to the City Budget Committee and the City Council for their review and approval. Council Priority/Discussion: Other Issues - Other 's i i 45 LibrElry Revenues Issue Summary Definition: Several potential sources of revenue have been used to varying degrees by other public libraries within Oregon and nationally. If the City wishes to explore other revenue sources to supplement General Fund revenues, a partial list of potential sources could include: • Increase existing fine structure • Potential Coffee Bar-New Library • Review current level of existing fees • Develop new or increased fees for some services • Investigate charging a fee for circulation of specific items within the collection • Work with other libraries in the County cooperative to revise the funding formula to more accurately reflect how libraries are used. Revenue Required/Revenue Potential: Revenue potential of various options has not been determined. Potential candidates (if any) should be identified before focusing research on specific revenue potentials. Work Completed to Date: Preliminary research has been conducted on increasing the existing fine structure. All members of Washington County Cooperative Library Services must agree to an increase in the fine structure in order for that increase to be implemented. Some other potential revenue items must also be reviewed within the context of the existing contractual agreement between the City of Tigard and Washington County for providing library services. The City has completed a preliminary analysis and development of an RFP for the selection of a coffee bar vendor. The coffee bar for the new library may draw people to visit the library and provide an enhanced overall experience for the public. Further research would be required to determine how much revenue the coffee operation may generate for the City. More people visiting the library and borrowing materials will help a, to generate additional revenue from WCCLS as the current formula is heavily dependent upon the level of circulation of library materials. Tigard Library has been involved in extensive discussions regarding revisions of the Washington County Cooperative Library Service (WCCLS) funding formula to better n reflect the changing ways in which libraries are used. The current formula generates $1,224,590 for the Tigard Library in FY 2002-03. This level of funding is expected to U J drop approximately $150,000 next fiscal year due to the loss of the WCCLS Local Option Levy last November. The current funding formula is heavily dependent upon circulation increases. To the extent that circulation at any one library increases at a lower rate than the average for the system as a whole, that library loses funding. This 46 has happened to the Tigard Library over the past few years. The current formula does not recognize the population served, nor does it recognize the amount of taxes that service population pays to WCCLS. The City is continuing efforts to revise the funding formula. A member of the City Council has also suggested exploring fees for borrowing a portion of the collection, such as videos and DVDs. Such a fee is feasible, but it would counter the historical mission of public libraries to provide free materials to the public. It may also lower circulation, which would, in turn, lower funding from WCCLS. Implementation Action Required: Some types of revenue sources would need to be implemented by agreement with WCCLS. Others could be implemented by Council action. Timing: The time required to implement new or increased fees and charges at the Library is unknown. It would vary by type of fee or charge. Discussions with WCCLS member libraries would likely take time. In addition, a total new fee, such as a video rental fee, would most likely require an extensive public involvement/review process. Most likely, the earliest a new revenue proposal could be brought to Council would be in late 2003. Advantages: New revenue sources could help diversify the City's revenue base. This might help to insulate the City from fluctuations in the economy and will spread the burden of paying for City services. Disadvantages: The WCCLS contract guarantees free access to collections for everyone in the County in accordance with the nation's historic commitment to public libraries. Charging fees for library materials and services could have a number of negative impacts. The increase in library use has been attributed partly to the recession as an alternative for people to look for new jobs and provide educational opportunities for their families in these tight economic times. Specific sources may generate high levels of opposition from library users. This opposition could affect other City initiatives, as well as a possible effort to pass the countywide library levy in 2004. Directly, it may affect the positive community support L for the new library. If the source chosen is entirely new, there may riot be a readily available collection mechanism. Recommendations: • Continue to work to revise the WCCLS funding formula to obtain a more equitable distribution of funds. • Research potential revenue generation from coffee bar in new library. • Work with other WCCLS libraries on a possible library fine increase. Review revenue options to identify possible new sources. Council Priority/Discussion: Other Issues - Other 47 Skate Park Construction Issue Summary Definition: A local Skate Park Task Force recommended to Council that the City provide funding for the design of a potential skate park facility in Tigard. The council approved up to $20,000 to design a facility. The design was approved by Council on November 26, 2002. The design can be built in three phases (15K, 20K & 25K square feet). Currently the Task Force has not been able to find a site for the skate park. Locations at a City park and on School District property have run into strong opposition due primarily because of locations close to neighboring homes. Further, fundraising efforts have not gotten off the ground, having been delayed by the inability to secure a site location. Revenue Required/Revenue Potential: The following revenues are required for construction of a skate park in Tigard. • 15K sq. ft. $642,000, fundraising = $392,000 and $250,000 - funding source undetermined at this time (auxiliary costs such as parking, infrastructure, street improvements, restrooms, etc.) • 20K sq. ft. $769,000, fundraising = $519,000 and $250,000 - funding source undetermined • 25K sq. ft. $877,000, fundraising = $627,000 and $250,000 - funding source undetermined Potential revenues for the construction of the Skate Park and auxiliary costs are 1) dependent on any fundraising efforts by the Task Force, and 2) making a determination as to who will pay for the auxiliary costs estimated at $250,000. With the economy being what it is right now, and into the foreseeable future as well, it will undoubtedly be a daunting task for the Task Force to raise anywhere from $392,000 to $877,000. Further, operational funds are decreasing significantly, making it difficult, if not impossible, to keep up with the expanding maintenance workload. New facilities would L only exacerbate this condition. Work Completed to date: A skate park design has been approved by Council. A comprehensive site location process continues. Fundraising has not begun. Implementation Action Required: If a site is secured, Council, along with the Task a Force leadership must decide how the $250,000 in auxiliary costs, construction drawing u and specifications, etc. will be funded. Construction drawings and specifications must be completed. Either the Task Force or the City will seek bids for the construction of the skate park. This also must be determined. 48 Timing: Two major processes remain incomplete at the present time. Securing a site has proven as daunting a task as is a fundraising campaign in the current economy. Reductions in funding for operational costs to adequately cover current and upcoming increases in maintenance, services, and capital outlay, create a heavy burden on the existing staff to handle the parks division workload. Advantages: • Building a skate park now would be well received by the kids in Tigard. • Building now would, more than likely, cost less than building in the future. Disadvantages: • A huge fundraising campaign would be difficult in any economic condition. However, during current economic conditions, the Task Force's fundraising process will not only daunting, but probably unattainable at the present time. • A site has not been secured. • At the present time, and in the foreseeable future, increased operational funds are not available to cover the additional workload created by a new facility of this magnitude. Recommendation: 1) Continue looking for a location for the skate park. 2) Before the City contribute funds (if Council decides to do so) to the construction of the Skate Park, the following issues must be resolved: • A site must be secured • Economic conditions must improve • A decision must be made regarding who will be responsible for the auxiliary costs associated with the construction of the skate park • Long term funding for Parks operations and maintenance must be secured • A successful fundraising campaign must be completed or be well-on-its-way Council Priority/Discussion: Other Issues - Delete 6 Council directed to delete this item from further consideration as a financial issue. If the skateboard park is to proceed, it will need to be funded entirely by donations and fund raising. No City money will be used to construct the park. 49 Other Jurisdictions' Issues _m J 50 WCCLS Local Option Levy Issue Summary Definition: A countywide Local Option Property Tax Levy for library services is allowed under the Oregon Constitution (Measure 50) to increase the local property tax rate for needed services. It cannot exceed a period longer than 5 years, after which it must be re-approved by voters. Funding from a countywide levy would be distributed to all member libraries through a formula based on circulation and a variety of other factors. Revenue Required/Revenue Potential: It is projected that the tax rate of this levy will be approximately 26¢/$1,000 of assessed valuation. This will raise approximately $10,000,000 per year. Work Completed to Date: A countywide levy for library operational funding was placed before voters in November 2002. The measure failed by approximately 600 votes. A Needs Analysis for the levy was completed in 2002, as was a phone survey. A citizens' group was formed in 2002 to provide information to Washington County voters concerning the benefits of the levy. Significant background information has been compiled concerning this issue. Tigard has been actively working with WCCLS staff and other member libraries to revise and update the existing funding distribution formula. Implementation Action Required: A WCCLS Local Option Property Tax Levy must be approved by the County Board of Commissioners and placed on the ballot for approval by Washington County voters. It may only be voted on at one of the following elections: 1. May, subject to double-majority requirement 2. November of an odd-numbered year, subject to double-majority requirement 3. November of an even-numbered year, subject to simple majority. Timing: If the WCCLS Local Option Levy is approved by county voters in May 2004, L the first revenues would be received by the County in November 2004. If the Levy is oC approved by the voters in November 2004, the first revenues would be received by the County in November 2005. Advantages: Easily understandable--will be used to restore cuts to library service countywide. . Well-established collection mechanism in place Broad-based revenue source • Historically, Washington County voters have supported library levies 51 Disadvantages: • Short-term solution--it expires after 5 years, and then must be renewed by the voters • Competition on the ballot from other jurisdictions requesting voters to approve funding measures • Competition and confusion with the Tigard local option levy likely to be on the ballot in 2004 • Washington County voters have been reluctant to vote for tax levies in the recent past. Successful passage may be related to factors outside government control Recommendation: • Continue to research and explore options to create stable library revenue sources. • Support the information campaign about the WCCLS levy if it is placed before voters in May or November 2004. • Continue to work with Washington County and other WCCLS libraries to develop an equitable formula for distribution of WCCLS revenues. Council Priority/Discussion: The Council discussed this issue, its importance for the finding of the library, and the importance of coordinating this issue with other City initiatives. The Council took no position on this issue at this time. o. H J m D W 52 MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor and City Council Members FROM: Bill Monahan DATE: J*-2 , _ ~ . I ~G SUBJECT: Council Goals for 2001 Draft Council Goals were before the City Council on January 23 for review and comment. Several corrections were suggested which are shown in this draft. Once reviewed, Council should adopt the goals or give direction for further changes. Background The Tigard City Council met on Tuesday, January 16, 2001, to review the progress made on the goals for 2000 and to set goals for 2001. Council reviewed the definitions of the Council goals, tasks, and issues. Council revised the definitions to read as follows: Goal A specific direction that Council is taking. Reaching the goal may not be achieved in one year. Task A specific activity taken in furtherance of the goal which can be achieved within a specific period of time. Issue Matters of concern to the Council or raised by citizens over which Council may or may not have direct control for policy setting or a decision making, but the City can contribute. i~ s- City Council Goals for 2001 The goals set by Council for the year 2001 appear as Goals followed by the tasks identified for the year 2001. U J Goal1 Transportation Continue the City's Transportation Improvement Program: a. Complete the City Transportation System Plan, discuss funding mechanisms and initiate implementation. b. Support and promote commuter rail. Page 1 of 4 1AADWCITY COUNCIL\GOALS\2001\GOALS ADOPTED 2.13-01.DOC c. Develop a fixed route bus program for Tigard intra-city service. d. Revisit Transportation Improvement Projects (the 2000 bond measure) and potential funding sources. e. Promote resolution of 99W issues (and other state owned facilities in Tigard). Tasks: 1. Reconstitute the Bond Measure Task Force. 2. Review the bond measure options. 3. Discuss alternative funding solutions 4. Work with Washington County to promote funding of commuter rail. 5. Address issues of Hwy 99W with ODOT and raise issues to the 2001 legislature. 6. Continue to improve pedestrian/pathway connections. 7. Review the need for sidewalk and street lighting improvements, even on trails. 8. Implement the City Transportation Improvement Program. 9. Promote opportunities to travel through the City of Tigard without accessing Hwy 99W. Goal 2 Provide recreational opportunities. Tasks: 1. Develop and define a strategy to provide recreation opportunities for all citizen needs including: a. Programs b. Facilities c. Activities 2. Evaluate the need for a separate Parks and Recreation Committee. Goal 3 Support the efforts of the Tigard Central Business District Association (TCBDA) and their plan to revitalize the z downtown. `r `p Tasks: 1. Assist in getting funding for implementation of the TCBDA downtown program. 2. Determine the level of City financial support to the f revitalization effort. i t 3. Review development code requirements that affect the downtown (i.e., parking, etc.). Goal 4 Continue to implement the City Park Master Plan. Page ? of 4 I:1ADKCITY COUNCIOGOALS001WALS ADOPTED 2.13-01.DOC Tasks: 1. Apply funding to the plan. 2. Urge that Washington County establish a Parks Systems Development charge for the Tigard Urban Services area. 3. Complete the Summerlake Park plan. 4. Update the City Park master plan elements as land is added to the City system. 5. Continue to implement the Cook Park master plan. 6. Continue discussions with the Tigard-Tualatin School District for creation of a City Park associated with the proposed Alberta Rider School. Goal 5 Determine the City's long-term water supply. Tasks: 1. Evaluate the three options presently under review. Goal 6 Establish an annexation policy for non-island areas. Tasks: 1. Consider options available to apply to annexation proposals. 2. Determine if the City should actively encourage annexation of. a. Parcels b. Areas Goal 7 Encourage and support private sector programs to rehabilitate existing, and develop new, affordable housing. Tasks: 1. Continue to enforce the housing code. 2. Consider ways to support provision of affordable housing. Goal 8 Review the report of the New Tigard Library Construction Committee (NTLCC) and provide direction. Tasks: j 1. i~car the report of the NTLCC regarding programming and o potential sites for construction. 2. Provide direction on: a. Size b. Cost c. Location d. Funding Page 3of4 I:WDATCITY COUNCILMALM2001MALS ADOPTED 2-13-01.DOC 3. Determine when a bond measure for construction of a new library should be placed before the voters. Goal 9 Develop a new City-wide sewer completion policy. Tasks: 1. Develop a City-wide sewer program which includes: a. Cost alternatives and options; b. A proposed construction sequence; 2. Take into consideration how to make the program equitable for those property owners who previously participated in the City sewer reimbursement program. Goal 10 Expand citizen involvement opportunities. Tasks: 1. Focus on improved ways to inform the public. 2. Expand citizen involvement opportunities. 3. Make more effective use of media (Cityscape, cable television, City Web Page, press coverage, meetings, and public contact). 4. Strive toward a consistent public involvement effort. 5. Conduct a "City 101" education program for the public. Goal 11 Participate in the 2001 Oregon Legislative session. Tasks: 1. Provide input to discussions of the Oregon Legislature regarding retention of telecommunication franchise fees for local government. 2. Provide input to the Oregon Legislature as it addresses concerns raised by voter approval of Measure 7. Among other topics discussed by Council at the goal setting session was the concept of developing public art. The Council supports the concept outlined in the memo prepared by Volunteer Coordinator Susan Koepping. Council also heard a proposal from Bill Monahan to review the Municipal Code and bring forth to Council sections r,:quiring update and revision. The review process would take at least one year. Council expressed support of the program. Page 4 of 4 IMOFACITY COUNCILIGOALS120011G0ALS ADOPTED 2-13-01.DOC Tigard City Council Goal Setting Workshop Meeting Tuesday, January 16, 2001 Meeting Minutes Meeting called to order at 1:30 p.m. Members of Council Present: Mayor Jim Griffith, Councilor Craig Dirksen, Councilor Brian Moore, Councilor Joyce Patton, Councilor Ken Scheckla Staff Present: Bill Monahan, City Manager Others Present: Citizens Bev Froude, Martha Bishop, Paul Owen, and Erica Harrison of the Tigard Times Bill Monahan briefed Council on the process used in prior years for Council Goal Setting. Council had received a packet of information which had a detailed summary of achievements of Council Goals for 2000. Council reviewed the definitions used for goal, task, and issue. Council agreed to change the definition of goal, task, and issue. The changes are as follows: Old Definition New Definition Goal: A specific new direction Council A specific direction that Council is wants to take or a specific change in taking. Reaching the goal may not be past direction, or a specific position achieved in one year. the City wants to advocate. Task: A specific activity that is part of a A specific activity taken in department's assigned respons- furtherance of the goal which can be ibilities, part of a department or achieved within a specific period of i individual's work program. time. Issue: Matters of concern to the Council Matters of concern to the Council or or raised by citizens over which raised by citizens over which Council has little or no direct Council may or may not have direct control for policy-setting or control for policy setting or decision decision-making, but the City can making, but the City can contribute. contribute. The City Council then discussed the goal achievement for each of the year 2000 goals. Council discussion was as follows: Goal 1 The Transportation goal was addressed throughout the year with a bond measure election in November. The bond measure failed. Now the transportation system plan is nearing completion. Council needs to address funding options. Goal 2 The City Council completed the Recreation goal as described. There is still a need for addressing recreation needs in the community. Goal 3 The Central Business District Plan was developed. The goal was completed. Council recognized the need for a new goal for the year 2001. Goal 4 Park Master Plan- Most of the work on the Park Master Plan was completed. Funding is an issue for the future. Discussion of Summerlake Park, Cook Park, Northview Park, and others will take place in 2001. Goal 5 Water - Council recognized the need to continue the goal. Goal 6 Annexation Policy- During the course of the year the Council annexed all of the islands. There is now a need to develop a policy for other unincorporated areas in the City's area of interest. Goal? Housing- Council supported the efforts of Community Partners for Affordable Housing. Council also will consider strategies to provide additional affordable housing. The City Community Housing Code has been implemented. Mayor Griffith noted that he would like to put more emphasis on offering services to Tigard homeowners so they can be aware of ways to upgrade their properties, preserving their investment. The City may consider making tools and resources i available to homeowners. i ! Goal8 Tri-Met- The City has stressed the need for intra-City bus service. During the past year progress was made with the addition of a demonstration program. Council members then gave suggestions on areas to consider for goals for 2001. Councilor Patton- Expressed an interest in those areas and goals that the community has not completed. She cited water and Library specifically. Councilor Moore- Expressed interest in expanding citizen education, Library needs, looking at the Transportation bond measure to determine what to do about funding transportation issues. In addition, he stated that he is interested in having recreation or the City support youth activities. He stated that the City should help coordinate what Atfalati team and Linda Eaton's group are doing. He also suggested the Council continue support of the downtown area. Councilor Scheckla- Would like a policy that no construction activity be allowed during Christmas season. In addition, he would like to bring the Fire District in to discussion about street humps. He suggested that the telecommunication legislation before the Legislature should be monitored. Councilor Dirksen- Expressed interest in working further on the goals related to recreation and Park Master Plan. He suggested that Council consider resurrecting the Park Board, making it a Park and Recreation Board. He also thinks that the City should take a more active role in promoting the commuter rail line. Mayor Griffith- Expressed interest in creating an advisory committee to the Mayor. Audience Comments: Bev Froude- Expressed interest in the Council improving communication with the public, educating people on how they may become • involved. Also, she noted that the Vision Statement is valid and i she hopes the Council reads the latest updates and takes them into consideration in all of its votes. The efforts of the citizens are validated when the Council considers the input shown in the Vision. Council then discussed goals for the year 2001. Direction given for the formulation of goals was as follows: GoaI1 Transportation Continue the City's Transportation Improvement Program: a. Complete the City Transportation System Plan, discuss funding mechanisms, and initiate implementation. b. Support and promote commuter rail. c. Develop a fixed route bus program for Tigard intra-city service. d. Revisit Transportation Improvement Projects (the 2000 bond measure) and potential funding sources. e. Promote resolution of 99W issues (and other state owned facilities in Tigard). Tasks for the year 2001 are: 1. Reconstitute the Bond Measure Task Force. 2. Review the bond measure options. 3. Discuss alternative funding solutions 4. Work with Washington County to promote funding of commuter rail. 5. Address issues of Hwy 99W with ODOT and raise issues of the 2001 legislature. 6. Continue to improve pedestrian/ pathway connections. 7. Review the need for sidewalk and street lighting improvements, even on trails. 8. Implement the City Transportation Improvement Program. 9. Promote opportunities to travel through the City of Tigard without accessing Hwy 99W. Goal 2 Provide recreational opportunities. Tasks include: t` 1. Recreation opportunities for all citizen needs including: a. Programs • b. Facilities i c. Activities ! 2. Evaluate the need for a separate Parks and Recreation i i Committee. Goal 3 Support the efforts of the Tigard Central Business District Association (TCBDA) and their plan to revitalize the downtown. Tasks: 1. Assist in getting funding for implementation of the TCBDA downtown program. 2. Determine the level of City financial support to the revitalization effort. 3. Review development code requirements that affect the downtown (i.e., parking, etc.). Goal 4 Continue to implement the City Park Master Plan. Tasks: 1. Apply funding to the plan. 2. Urge that Washington County establish a Parks Systems Development charge for the Tigard Urban Services area. 3. Complete the Summerlake Park plan. 4. Update the City Park master plan elements as land is added to the City system. 5. Continue to implement the Cook Park master plan. 6. Continue discussions with the Tigard-Tualatin School District for creation of a City Park associated with the proposed Alberta Rider School. Goals Determine the City's long-term water supply. Tasks: 1. Evaluate the three options presently under review. Goal 6 Establish an annexation policy for non-island areas. 1 Goal 7 Encourage and support private sector programs to rehabilitate existing, and develop new, affordable housing. a Goal 8 Review the report of the New Tigard Library Construction 0 g Committee (NTLCC) and provide direction. u Tasks include: 1. Hear the report of the NTLCC regarding programming and potential sites for construction. 2. Provide direction on: a. Size b. Cost c. Location d. Funding 3. Determine when a bond measure for construction of a new library should be placed before the voters. Goal 9 Develop a new citywide sewer completion policy. Tasks include development of the following; 1. The program; 2. Cost alternatives and options; 3. A proposed construction sequence; 4. A proposal on how to make the program equitable for those property owners who previously participated in the sewer reimbursement program. Goal 10 Expand citizen involvement opportunities. Tasks include: 1. Focus on improved ways to inform the public. 2. Expand citizen involvement opportunities. 3. Make more effective use of media (Cityscape, cable television, City Web Page, press coverage, meetings, and public contact). 4. Strive toward a consistent public involvement effort. 5. Conduct a "City 101" education program for the public. Goal 11 Participate in the 2001 Oregon Legislative session. Tasks include: 1. Provide input to discussions of the legislature regarding retention of telecommunication franchise fees for local oC government. 2. Provide input to the legislature as it addresses concerns raised by voter approval of Measure 7. m Among other topics discussed by Council at the goal setting session was the concept of developing public art. The Council supports the concept outlined in the memo prepared by Volunteer Coordinator Susan Koepping. Council also heard a proposal from Bill Monahan to review the Municipal Code and bring forth to Council sections requiring update and revision. The review process would take at least one year. Council expressed support of the program. The Council then reviewed the January 9 list of liaison appointments and made recommended changes. An updated list of liaison appointments will be presented to the City Council. The meeting adjourned at 6:45 p.m. Attest: Bill Monahan, City Manager Mayor, City of Tigard Date: I:ND1.7\CITY COUNCIOGOALS1200140AL SETTING MTG 1.10-01.DOC 0 u 2002 Tigard City Council Goals GOAL I -TRANSPORTATION GOAL 2-PARKS & RECREATION GOAL 3-DOWNTOWN GOAL 4-WATER GOAL 5-GROWTH MANAGEMENT GOAL 6-LIBRARY GOAL 7-COMMUNICATION L_ 2 In consideration of the 2002 Goals, the City Council stated the following: "The present state of the economy is a concern that could 0 impact the council's completion of the 2002 Goals. Each of the 2002 Goals could be impacted if the state, federal, or local economic situation results in a decrease in available funds for Tigard operations and projects." 2002 Tigard City Council Goals 2 Engineering/Community Development: Gus/Jim GOAL 1: TRANSPORTATION A. Explore funding sources for transportation needs. Funding for maintenance and capital are needed for the following- 1. Roads 2. Trails/Bicycles 3. Pedestrian Safety (Sidewalks, streetlights, crosswalks) 4. Bridges B. Work with Tri-Met to develop intra-city bus service and Park-and- Ride locations. C. Work with ODOT on state-funded facilities. Community Development/Public Works: Jim/Ed GOAL 2: PARKS AND RECREATION A. Complete master plans for city parks (Summerlake, Fanno Creek Park expansion, Dog Park, etc.) B. Continue to work with and support the Youth Forum and youth activities (before and after school programs, Skateboard Park Committee). Community Development: Jim GOAL 3: DOWNTOWN A. Plan for the commuter rail station. L B. Review zoning and comprehensive plan standards in the downtown. C B. Work in conjunction with the Tigard Central Business District Association, Tigard Area Chamber of Commerce, and other interest groups on a downtown redevelopment plan. 1 i L 2002 Tigard City Council Goals g Public Works: Ed GOAL 4: WATER A. Continue to evaluate options for a long-term water supply. Community Development/Administration: Jim/Liz GOAL 5: GROWTH MANAGEMENT A. Continue to evaluate the results of the Bull Mountain study and discuss the findings with the residents. Cooperatively develop a course of action. B. Monitor the progress of the Durham Quarry development, receiving regular council updates. C. Consider ways to support the provision of affordable housing. D. Actively support implementation of the Washington Square Regional Center Plan. E. Evaluate the need and feasibility of having the Tigard Post Office Branch become the Tigard Post Office. Library: Margaret GOAL 6: LIBRARY A. Council members will individually support promotion of the library construction bond. Administration: Liz GOAL 7: COMMUNICATION A. Continue to meet with local, county, regional and state partners. L B. Continue to improve and expand communication with Tigard citizens through the CIT program, Cityscape, Website, cable, media, Community Connectors, and other means. p C. Support English-as-a-Second-Language programs in Tigard. 7 u ® 2002 Tigard City Council Goals 4 IAAWCITY COUNCILIGOALSVO0212002 TIGARD CITY COUNCIL GOALSAOC L 1 r J l MINUTES TIGARD CITY COUNCIL GOAL SETTING WORKSHOP MEETING JANUARY 14, 2002 1. WORKSHOP MEETING 1.1 Mayor Griffith called the meeting to order at 1:00 p.m. 1.2 Roll Cali: Mayor Griffith and Councilors Dirksen, Moore, Patton and Scheckia were present. 1.3 Call to Council and Staff for Non Agenda Items City Manager Bill Monahan distributed additional information for Council consideration including draft goals suggested by city department heads and a list of recurring meetings involving the City Council and the City's partners. Additional information for the City Council meeting of January 15 was distributed, namely a letter submitted by Gretchen Buehner for Agenda Item No. 8. 2. DISCUSSION - VISION FOR TIGARD Mayor Griffith introduced this item. He mentioned that the City has a good idea for direction for the Tigard Triangle and Washington Square, but not for the downtown loop. He described the loop as Fanno Creek to Hall Boulevard to Pacific Highway. Mayor Griffith noted that the Council could decide to take a more aggressive role in deciding what is desired in this area. Commuter rail is coming to the community in the next few years presenting an opportunity. Zoning, standards, financing and other issues could be addressed before commuter rail arrives. The City could take steps to promote shopping, parking, or other needs. He questioned what do the City Council and the citizens of Tigard want in the downtown. Based on a conversation that the Mayor had recently with County Board Chair Tom Brian, it does not seem that the downtown merchants are further along in their 1 efforts than they were several years ago. Mayor Griffith has also talked with non- I downtown business people who agree that downtown improvement is a positive thing that would help businesses throughout Tigard. Mayor Griffith suggested considering creating a task force to address the issue, before commuter rail occurs. COUNCIL MINUTES -January 14, 2002 page 1 ME ~illillillillilill. There was some discussion by Council of the role of, and Impact on, small business in the downtown area If redevelopment occurs following a redevelopment plan. A suggestion of buying a parcel of land for development to start downtown renewal, such as for the creation of a parking garage, was mentioned. Creating a plan for the area, noting that commuter rail is coming, would be a help. A focused plan on commuter rail involving zoning, parking, and types of desired businesses could be created. A mix of uses, having residential development as part of mixed use developments may also be an option. Whether warehousing should continue to be an allowed use in the downtown was questioned. Councilor Moore pointed out that the Tigard Beyond Tomorrow document has a goal for downtown. The goal calls for the City to work proactively with the Tigard Central Business District Association (TCBDA) businesses and property owners and citizens of Tigard to set the course for the future of the central business district. He suggested that we might need to meet with the TCBDA to continue to support them and determine how we can help them. It was noted that there are things that TCBDA can't do such as change zoning. Council questioned whether we should start reviewing the development standards for the downtown even without the funding mechanism in place. Council wondered if the City should offer resources to help TCBDA to continue the efforts. The commuter rail is the opportunity on the horizon that could help the downtown group and others to identify a course of action. The Council may want to go back to the Vision document and determine where the focus should be so Council can choose where to give priority. The Mayor feels the emphasis should be on the downtown because of the commuter rail schedule. 3. REVIEW FINAL REPORT - GOALS 2001 City Manager Monahan facilitated a review of goal achievement for the past year. The results of the facilitated discussion are as follows. i GOAL 1: TRANSPORTATION i A. Complete the City Transportation System Plan, discuss funding mechanisms, and initiate information. COUNCIL MINUTES - January 14, 2002 page 2 The City Council adopted the Transportation System Plan In January 2002. B. Support and promote commuter rail. The City Council supported commuter rail as it obtained funding at the state and federal level. C. Develop a fixed route bus program for Tigard intra-city service. The City made some progress by contacting Tri-Met and initiating discussions and data gathering. The city shared Information with Tualatin and will align for future discussions with Tri-Met. The City will continue to communicate its needs to TH-Met with an objective of establishing a fixed-route bus program for Tigard intra-city service. D. Revisit transportation improvement projects (the 2000 bond measure) and potential funding sources. The City did this, reconstituting the bond measure committee to be the Transportation Financing Strategies Task Force. This is an ongoing effort. E. Promote resolution of 99W issues (and other state-owned facilities in Tigard). Input was given when opportunities were present; there is more work to be done. GOAL 2: PROVIDE RECREATIONAL OPPORTUNITIES Tasks: 1. Develop and define a strategy to provide recreation opportunities for all citizen needs including-- 's a. Programs b. Facilities j c. Activities The City effort was focused at forming and facilitating a Youth Forum to Involve all youth recreation and services providers in developing a strategy to provide recreation opportunities. There was good success in this effort. Of the COUNCIL MINUTES - January 14, 2002 page 3 City efforts for recreation opportunities for citizens other than youth were the Dog Park (good success), volunteer opportunities, and the development of a Library plan which will have capacity for providing some of the recreation program opportunities at the Library. In addition, the City initiated a Skateboard Park Committee. 2. Evaluate the need for a separate Parks and Recreation Committee. The City decided that the use of task forces and forums was a more viable way to address parks and recreation needs and issues. Therefore, we may not need to form a separate Parks and Recreation Committee. GOAL 3: SUPPORT THE EFFORTS OF THE TIGARD CENTRAL BUSINESS DISTRICT ASSOCIATION (TCBDA) AND THEIR PLAN TO REVITALIZE THE DOWNTOWN Tasks: 1. Assist in getting funding for implementation of the TCBCA downtown program. The Council completed its effort by providing the opportunity for TCBDA to seek a Business Improvement District (BID) and Economic Improvement District (EID). At the request of the TCBDA and the downtown property owners, the request for funding mechanism was withdrawn. Thus, the Council completed its task, however, funding is not available. 2. Determine the level of City financial support to the revitalization effort. The City provided financial support to each activity undertaken by the TCBDA. The long=te; m level of City financial support tc the revitalization effort has not been determined. 3. Review development code requirements that affect the downtown (i.e., N parking, etc.). m Tine City did complete the parking standard review, however, additional code c~ sections require attention. This was put on hold at the time the BID and E1D funding did not move forward. COUNCIL MINUTES - January 14, 2002 page 4 L r 0 J J COUNCIL MINUTES - January 14, 2002 page 5 GOAL 4: CONTINUE TO IMPLEMENT THE CITY PARK MASTER PLAN Tasks: 1. Apply funding to the plan. The City did that with significant results at Cook Park 2. Urge that Washington County establish a Parks Systems Development charge for the Tigard Urban Services area. Two separate efforts were made to urge the establishment of this charge. The effort continues. 3. Complete the Summeriake Park plan. Further meetings were held to complete the plan. At this point, the draft plan is headed to the Planning Commission for review. 4. Update the City Park Master Plan elements as land is added to the City system. This is a continuing task S. Continue to implement the Cook Park Master Plan. Good progress was made as additional funding was obtained through a grant from the State of Oregon and a loan which allowed the City to move forward faster with improvements in the original plan. Phase I of the Master Plan is complete. 6. Continue discussions with the Tigard-Tualatin School District for creation of a City park associated with the proposed Alberta Rider School. During the CounciPs annual meeting with the Tigard Tualatin School District information was presented to the Board on this issue. In addition, earlier discussions vvere held with the superintendent of schools to keep this project i active so when the District constructs the school, the City investment can take i place simultaneously. a COUNCIL MINUTES - January 14, 2002 page 6 GOAL 5: DETERMINE THE CITY'S LONG-TERM WATER SUPPLY Task: 1. Evaluate the three options presently under review. The City evaluated the three options and determined that the South Fork option is no longer feasible. The City will continue to evaluate the options for long-term water supply presented to us - The City of Portland and the Joint Water Commission. GOAL 6: ESTABLISH AN ANNEXATION POLICY FOR NON-ISLAND AREAS Tasks: 1. Consider options available to apply to annexation proposals. The city considered all options and is ready to apply appropriate options. 2. Determine if the city should actively encourage annexation of- a. parcels b. areas The City Council reviewed the options and determined that the Bull Mountain area is the only area to be addressed at this time. The City prepared a complete analysis of the Bull Mountain area annexation opportunities and issues following a workshop meeting in July involving area residents. Also initiated discussions with the community and discussions are ongoing. The council also processed annexation requests for those property owners seeking annexation, on a case-by-case basis. °r GOAL 7: ENCOURAGE AND SUPPORT PRIVATE SECTOR PROGRAMS TO REHABILITATE EXISTING, AND DEVELOP NEW, AFFORDABLE HOUSING i! Tasks: 1. Continue to enforce the housing code. COUNCIL MINUTES - January 14, 2002 page 7 This task was carried out with good success. 2. Consider ways to support provision of affordable housing. The Council supported the request of CPAH for property tax abatement for three projects. In addition, CPAH has broken ground for a new project with council waiving of permit fees. The City Council gave direction that it wishes to evaluate other ways to support affordable housing programs. The staff is evaluating other opportunities prior to the FY 2002-03 budget cycle. GOAL 8: REVIEW THE REPORT OF THE NEW TIGARD LIBRARY CONSTRUCTION COMMITTEE (NTLCC) AND PROVIDE DIRECTION. Tasks: 1. Hear the report of the NTLCC regarding programming and potential sites for construction. 2. Provide direction: a. Size, b. Cost, c. Location, at d. Funding 3. Determine when a bond measure for construction of a new library should be placed before the voters. The City Council completed this task. It heard reports of the Committee on all issues. Direction was given for creation of a 47,000 sq. ft. library at $14.2 million to be located on a site on the east side of Hall Boulevard with funding via City funds, proceeds of two bequests, and a $13 million bond to be placed on the May 21, 2002, ballot. GOAL 9: DEVELOP A NEW CITYWIDE SEWER COMPLETION POLICY Tasks: 1. Develop a city-wide sewer program which includes- a. cost alternatives and options; b. a proposed construction sequence. 2. Take into consideration how to make the program equitable for those property m owners who previously participated in the city sewer reimbursement program. COUNCIL MINUTES - January 14, 2002 page 8 The City Council did establish a sewer program taking Into account cost alternatives and options. Consideration was given to making the program equitable to those who had already participated. In fact, reimbursement checks were sent to 32 property owners who paid the higher fees under the old sewer incentive program. The goal was completed so the carrying out of the policy now becomes a task. GOAL 10: EXPAND CITIZEN INVOLVEMENT OPPORTUNITIES Tasks: 1. Focus on improved ways to inform the public, 2. Expand citizen involvement opportunities. 3. Make more effective use of media (Cityscape, cable television, City web site, press coverage, meetings, and public contact). 4. Strive toward a consistent public involvement effort. 5. Conduct a "City 101" education program for the public. The City achieved its goal expanding citizen involvement opportunities at all levels. Greater attention was paid to the Cityscape, the City web site, cable television production, meetings, and public contact. Opportunities were given to citizens to participate in new task forces and committees to address issues. Our effort to increase cable television capabilities and production options were limited due to difficulties in obtaining a contract with TVCA. The City web site was improved throughout the year with introduction of the new City web site on January 2, 2002. A webmaster was hired during the year to spearhead this effort. Citizen involvement opportunities through committees improved, however, C1Tattendance did not increase. The CIT program was changed by having one tape-delayed meeting and initiation of e-mail messaging to the CIT. A "City 10 1 " education program was conducted in conjunction with a C1T meeting early in the year. GOAL 11: PARTICIPATE IN THE 2001 OREGON LEGISLATIVE SESSION Tasks: 1. Provide input to discussions of the Oregon Legislature regarding retention of telecommunication franchise fees for local government. 2. Provide input to the Oregon Legislature as it addresses concerns raised by voter approval of Measure 7. COUNCIL MINUTES - January 14, 2002 page 9 Throughout the year the City Council met with Representative Max Williams and Senator Ryan Deckert. In those meetings, both tasks were addressed. 4. SET GOALS FOR 2002 Prior to discussion of goals for 2002, Council reviewed the definitions for "goal," "task," and "issue" as used in prior goal setting sessions. Council determined that the definitions are appropriate for use in 2002. City Manager Monahan then gave an overview of the issues which he sees in each of the city departments. Council noted that the issues identified were primarily administrative under his authority. Council then proceeded to discuss goals for 2002 and established the following goals. GOAL 1-TRANSPORTATION GOAL 2-PARKS 8t RECREATION GOAL 3-DOWNTOWN GOAL 4-WATER GOAL 5-GROWTH MANAGEMENT GOAL 6-LIBRARY GOAL 7-COMMUNICATION GOAL 1: TRANSPORTATION A. Explore funding sources for transportation needs. Funding for maintenance and capital are needed for the following- 1. Roads 2. Trails/Bicycles 3. Pedestrian Safety (sidewalks, streetlights, crosswalks) 4. Bridges B. Work with Tri-Met to develop intra-city bus service and Park-and-Ride locations. COUNCIL MINUTES - January 14, 2002 page 10 C. Work with ODOT on state-funded facilities. ,.Y GOAL 2: PARKS AND RECREATION A. Complete master plans for City parks (Summerlake, Fanno Creek Park expansion, Dog Park, etc.) B. Continue to work with and support the Youth Forum and youth activities (before and after school programs, Skateboard Park Committee). GOAL 3: DOWNTOWN A. Plan for the commuter rail station. B. Review zoning and comprehensive plan standards in the downtown. C. Work in conjunction with the Tigard Central Business District Association, Tigard Area Chamber of Commerce, and other interest groups on a downtown redevelopment plan. GOAL 4: WATER A. Continue to evaluate options for a long-term water supply. GOAL 5: GROWTH MANAGEMENT A. Continue to evaluate the results of the Bull Mountain study and discuss the ndings with the residents. Cooperatively develop a course of action. B. Monitor the progress of the Durham Quarry development, receiving regular Council updates. u C. Consider ways to support the provision of affordable housing. COUNCIL MINUTES - January 14, 2002 page 11 D. Actively support implementation of the Washington Square Regional Center Plan. E. Evaluate the need and feasibility of having the Tigard Post Office Branch become the Tigard Post Office. GOAL 6: LIBRARY A. Council members will individually support promotion of the library construction bond. GOAL 7: COMMUNICATION A. Continue to meet with local, county, regional and state partners. B. Continue to improve and expand communication with Tigard citizens through the CIT program, Cityscape, web site, cable, media, Community Connectors, and other means. C. Support English-as-a-Second-Language programs in Tigard. 5. CITY MANAGER'S REVIEW Council reviewed the City Manager's memo of January 8, 2002, which sets out a schedule for conducting the review. Councilor Moore noted that the format used at PGE may be a suitable format to use in 2002. Council agreed to follow the schedule on the January 8 memo. Council will start with review of Oe performance format, taking the format used last year and reformatting it as necessary. r` 6. NON-AGENDA ITEMS Council reviewed the list of Council Liaison appointments and updated the list to ! reflect participation on transportation committees. The updated list will be provided r to Council at an upcoming meeting. COUNCIL MINUTES - January 14, 2002 page 12 Council returned to the discussion of goals and agreed that there should be a statement, suggested by Councilor Dirksen, that recognizes the state of the economy and the potential impact on goal achievements. The statement is: "The present state of the economy is a concern which could impact the Council's completion of 2002 goals. Each of the 2002 goals could be impacted if the state, federal, or local economic situation results in a decrease in available funds for Tigard operations and projects." Meeting adjourned at 5:47 p.m. Attest: William A. Monahan, City Manager Mayor, City o Tigard Date: I: AMACATHMCK020114.000 COUNCIL MINUTES - January 14, 2002 page 13 ICOLN^Ct ~~►-Do Cable television showcase programs for this year are planned for the Library and the 40' Birthday Celebration. Suggestion: Include the Budget Committee minutes on the website. A copy of the first "Goal Guide" was distributed to the City Council. 4. DURHAM QUARRY UPDATE Community Development Director Hendryx introduced this agenda item and also distributed information to the City Council. He introduced Larry Eisenberg from Washington County who updated the City Council on the status of the Durham Quarry. This has been a collaborative process among the jurisdictions of Washington County and the cities of Tigard, Tualatin and Durham. Mr. Eisenberg recapped the history of this property and the plans envisioned for its future to create a mixed-use, destination development. He also discussed the current high volumes and traffic situation, and described how these issues could be addressed. Council received information about proposals from "world class developers" from Teresa Wilson, Property Manager for Washington County. A staff recommendation for a developer will be submitted to the Washington County Board of Directors on May 22. > Russ Rutledge, Tigard High School Envoy, gave his update to the City Council. A copy of his Student Envoy Report is on file with the City Recorder. Mr. Rutledge introduced Mr. Nathan Leamy who will be the City Council Envoy for the next school year. It was noted that Mr. Rutledge received the "Community Leader of the Year Award." 5. STRATEGIC PLANNING OF FUNDING FOR THE LIBRARY, TRANSPORTATION, RECREATION AND PUBLIC FACILITY NEEDS/GENERAL FUND City Manager Monahan introduced this agenda item. A copy of the PowerPoint presentation illustrating the highlights of the information offered to the City Council is on fife with the City Recorder. Finance Director Prosser reviewed the financial forecast. City Manager Monahan reviewed the election requirements, potential dates, and "realities." Discussion followed, with key issues identified (brainstormed) as followed: 1. Library 2. Transportation COUNCIL MEETING MINUTES - May 15, 2001 page 3 Elements: major collectors; alternatives to Pacific Highway 99 Operations and maintenance of roads 3. Local Operating Levies 4. Washington Square Implementation Transportation Open space Drainage 5. Recreation Programs Facilities 6. Water Supply Revenue Bond 7. Downtown Redevelopment 8. City Facilities Renovate library building for offices Renovate City Hall offices (possibly from funds set aside now for the Library) Determine whether feasible or desirable to purchase the water building Relocate public works Determine whether to sell the current Public Works yard Extend life of police building by utilizing the "Niche" building 9. Parks and Trails Acquisition Development 10. Sewer Extension Program 11. Commuter Rail 12. Bus System and Shelters 13. Sidewalks 14. Annexation - Operating and Equipment Costs 15. Urban Growth Boundary Expansion 16. Social Services 17. Affordable Housing 18. Population Diversity 19. Funding Mechanism for Development - Infrastructure - Downtown - Triangle » - Washington Square J o City staff will review the above list and come back to the City Council at its June 19 5 workshop meeting with timelines (trigger points) and funding information. J Councilor Patton noted the urgency to move forward on the library in light of the tight timelines. COUNCIL MEETING MINUTES - May 15, 2001 page 4 Council consensus was that the library would be addressed first. Components of transportation could also be addressed as a high priority. The Transportation Financing Strategies Task Force is not ready to make a proposal, according to City Engineer Duenas. Meeting recessed at 9:17 p.m. Meeting reconvened at 9:21 p.m. 6. REVIEW OF PROPOSED REVISIONS TO TIGARD MUNICIPAL CODE CHAPTER 13.09, REIMBURSEMENT DISTRICTS City Engineer Duenas reviewed this agenda item. A copy of the staff report and the PowerPoint presentation is on file with the City Recorder. After brief discussion, Council agreed to the staff recommendations updating the TMC, as outlined by staff: • Retain the flexibility of the existing ordinance. • Allow administrative overhead costs to be included in the reimbursement fee. • Allow the cost of purchasing an easement within the reimbursement district to be included in the reimbursement fee. Staff will propose an incentive program on June 12, 2001. 7. DISCUSSION OF CITY ATTORNEY RATE INCREASE City Manager Monahan noted this agenda item was a continuation of the discussion from the May 8, 2001, City Council meeting. A copy of the staff report outlining the rate increase proposed by City Attorney staff is on file with the City Recorder. Staff recommended that the City Council approve the rate increase effective July 1, 2001. Council consensus was for staff to proceed by placing this item on the Council business agenda. (Note: Item No. 10, Non Agenda Items, was discussed at this time.) Y n 8. CITY MANAGER REVIEW w J o Mayor Griffith distributed a summary of tabulated results of a performance review form that was completed by the City Council for City Manager Monahan. He advised that, primarily, all areas of performance were commented on favorably. Areas of concern were in "organization and planning" insofar as comments were made that Council members would like to see the City Manager place greater emphasis on long- range planning, with more day-to-day items delegated to the department heads. COUNCIL MEETING MINUTES - May 15, 2001 page 5 AGENDA ITEM # 5 FOR AGENDA OF 5 i 5 OI CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE: Strategic Planning of Funding for Library. Transportation. Recreation & Public Facility Needs/ General Fund. PREPARED BY: William A. Monahan DEPT HEAD OK i A CITY MGR OK ISSUE BEFORE THE COUNCIL Council should have a discussion of the major funding issues which are pending requiring Council review and decisions over the next few years. Since the resources that are available to the community are limited, some prioritization of needs should occur as well as scheduling potential bond measures. STAFF RECOMMENDATION Staff recommends that the City Council discuss the major funding issues facing the community and determine a tentative schedule for addressing these needs. INFORMATION SUMMARY The City has several financial issues facing it in the next several years related to the availability of general fund revenue and the need for providing improved public facilities and programs. In recent years, the City has failed to obtain voter approval of both a public facility bond in 1998 and a transportation funding package in 2000. In addition, voters rejected the Atfalati Recreation District proposal in 2000. Presently, the City Council, staff, and citizen committees are evaluating the need and funding options for a new library facility as well as transportation improvements. Meanwhile, the Atfalati Recreation District or some other entity may consider seeking funding at some time for recreation programs and facilities. C With several funding issues facing the City, it is important that the City Council be briefed on the City's financial situation, possible funding sources, and the potential funding needs for a new library and road improvements. Each of the issues impacts the other. In addition, because the City has not been successful in passing voter approved i bonds to finance major improvements, there is a need for a coordinated effort and planned out scheduling of any ! financial package that goes to the voters. I I On May 15 staff will lead a discussion with Council on the information presently known on the funding needs for a new library, trends and costs related to transportation improvements under the City's jurisdiction, and other general fund related issues. Craig Prosser will brief the Council on the Financial Plan and the options available to the City to reverse the direction of the general fund. A local option levy, as allowed by Oregon law, should be explored as an option to provide additional general fund dollars for City operations in future years. Based upon the discussion on May 15, the Council and staff should continue to prepare a prioritization and sequence of activities which can then be used to guide the plans and actions of Council, advisory groups, and staff For instance, if the Council chooses to place a library facility bond on the ballot in 2002, ahead of other funding requests, what would the logical next package entail and when would it be considered by the voters? Based upon the direction given by Council, staff can return with alternatives and information on the impact that the alternatives have on the City's financial position. Citizen members of the Budget Committee will be invited to attend the workshop session and participate. While no final decisions on the specifics of a strategic plan for funding are necessary at this time, if direction is given, better long-range planning can result. OTHER ALTERNATIVES CONSIDERED Address each municipal funding issue independently as it comes before Council. VISION TASK FORCE GOAL AND ACTION COMMITTEE STRATEGY ATTACHMENT LIST FISCAL NOTES Once a final decision is made on a strategic plan, each individual element of the plan will have fiscal consequences. i r J D u 1.,WnW lTy COUNC ID"CIL AGENDA ITEM SUMMARIESISTRATEGIC RANNING OF FUNDINGDOC lrulx~ r 4EGIBILIT'~ STRIP O 1 i LEGIBILITY STRIP I ~o [J LEGIBILITY S-rRlp 1 I t 1 1 1 f 1 I III ~ r ! 1 1 1 I 1 1 4 i I• - i t , t , t "I Ul I~- i 1 Y- I ' t , t s s LEGIBILI'T`Y S~R1P ism= 0 1 i c - - - - - - - - J LEGIBILITY STRIP - 00 ~tldvvlc Haw L toL 0 u J i 3 10 CA-)Ianca B-28-04 MINUTES TIGARD CITY COUNCIL MEETING AUGUST 28, 2001 Council Present: Mayor Griffith, Councilors Dirksen, Moore, Patton, and Scheckla • EXECUTIVE SESSION: The Tigard City Council went into Executive Session at 6:32 p.m. to discuss labor negotiations under ORS 192.660(1 d). Council convened into Study Session at 7:00 p.m. • STUDY SESSION > STRATEGIC PLANNING DISCUSSION City Manager Monahan led the discussion on strategic planning. Mr. Monahan reviewed the information that discussed and then summarized from an Executive Staff review of the strategic plan. Mr. Monahan reviewed the financial issues facing the City of Tigard. Council discussed tax increment financing options that may work for the Washington Square area. In response to a comment from Councilor Scheckla that Metro should also contribute to the Washington Square area, Mr. Monahan advised that Metro is a clearinghouse for funding, therefore it is valuable to have a plan in place to justify requests for funding. Mr. Monahan referred to information distributed to the City Council with regard to the Washington County cities' tax rate comparison. (Tax rate comparison table is on file with the City Recorder.) He noted that Tigard compares favorable to other cities in Washington County. Another project needed is for the staff to evaluate current L fees and consider potential fees to determine if the appropriate people requesting 2 service are paying for services. With regard to the information distributed to the City 0 Council, Mr. Monahan noted that the Financial Plan is a living document that is a tool for planning and adjusting. Councilor Dirksen noted the benefit of establishing a j priority list is to promote a "domino effect" which make it more clear as to which priority must be addressed first before another can be brought forward. 7 > ADMINISTRATIVE ITEMS • Council reviewed a memorandum from Barbara Shields, Long Range Planning Manager regarding Metro 2040 Fundamentals Discussion. A COUNCIL MINUTES - August 28, 2001 page 1 AGENDA ITEM # Study Session FOR AGENDA OF 8/28/01 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE Strategic Planning Discussion PREPARED BY: Bill Monahan DEPT HEAD OK CITY MGR OK ISSUE BEFORE THE COUNCIL In a study session format, staff is returning to Council to discuss the potential prioritization of the major funding issues that face the community over the next several years. The questions before Council include, 1) is Council in agreement with the priorities noted, 2) are other issues either present or anticipated that should be added to the list or replace other issues presently noted, and 3) are the preliminary dollar figures assigned about right, too high, or too low? STAFF RECOMMENDATION Staff recommends that the City Council engage in a discussion with staff about the strategic plan issues, determine if the priority list developed is acceptable for now or suggest changes, and select a future meeting date when the list should be revisited. INFORMATION SUMMARY Over the past several months, the city Executive Staff and City Council have identified and discussed several financing issues that will require action by the community over the next several years. The issues are primarily impacted by the availability of general fund revenues to provide improved public facilities and programs. In recent years, the City has been unsuccessful in attempts to obtain voter approval of money measures. A plan to address the community financial needs in a systematic manner would appear to increase the likelihood of success while addressing the most significant needs first. On May 15, 2001, in a workshop setting, Council gave input to the preliminary list of issues identified by staff. Council asked the Executive Staff to continue working on the question and attempt to further refine the timelines, priorities, and financial need estimates. The staff has completed that effort and prepared a list showing issues that likely should be addressed in 2002 and 2004 while noting that several other issues loom "on the horizon" which must be taken into account. Council should discuss the work product to date and provide additional input. OTHER ALTERNATNES CONSIDERED Address each individual municipal financial issue independently as it comes before City Council. VISION TASK FORCE GOAL AND ACTION COMMITTEE STRATEGY Several of the issues being reviewed are mentioned in the Tigard Beyond Tomorrow document. Specifically, the need to evaluate the need to construct a new library is mentioned, as well as the need to identify and develop funding resources to address growing transportation and traffic needs are mentioned in the visioning document. ATTACHMENT LIST 1. Strategic Plan Memo - August 21, 2001 2. May 15, 2001 Council Agenda Item Summary - Strategic Planning of Funding for Library, Transportation, Recreation and Public Facility Needs/General Fund. 3. Minutes of the May 15, 2001 Council discussion of the agenda topic 4. Power Point presentation given at the May 15 City Council workshop 5. Strategic Planning List developed by the Executive Staff since May 15, 2001. FISCAL NOTES Each component of the strategic plan has a financial consequence. The Strategic Planning List shows preliminary estimates of cost. iAAWCRY COUNCILVCOUNCIL AGENDA ITEM SUMMARIESISTRATEGIC PLANNING OISCUSSION.DGC L y_3 M L J MEMORANDUM CITY OF TIGARD, OREGON TO: Honorable Mayor and City Council Members FROM: Bill Monahan DATE: August 21, 2001 SUBJECT: Strategic Plan On May 15, 2001, in a workshop setting, City Council discussed the major funding issues which are pending for the next five years. Following a financial forecast presentation by Finance Director Craig Prosser, I reviewed election requirements for future bond issues, the potential election dates for future actions, and some of the "knowns" that are in place. Council identified a series of issues which face the community. The consensus of council was that the library was the highest priority requiring attention. An election for a construction bond likely will be placed before voters in 2002. Council also suggested that transportation improvement needs were high on the list. Council directed the City Manager and executive staff to review the list of issues which were identified and return with additional timelines and funding information, if known. The executive staff met on a couple occasions after the May workshop. A list of issues, prioritized as to a time frame of 2002 or 2004, was developed. The attached Strategic Planning List was developed by the executive staff. At this point, council's review of the issue list and acknowledgement that the issues represent the focus of City Council and staff energies is sufficient. The list then will be consulted periodically to determine if adjustments to the schedule and priorities are appropriate. 1 aft n J 0 1ADMOWSTRATEGACC MEMO 2001-05 PLAN DOC u J G Attachment 2 AGENDA ITEM # 5 FOR AGENDA OF 5-15-01 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE: Strategic Planning of Funding for Library, Transportation, Recreation & Public Facility Needs/ General Fund. PREPARED BY: William A. Monahan DEPT HEAD OK CITY MGR OK ISSUE BEFORE THE COUNCIL Council should have a discussion of the major funding issues which are pending requiring Council review and decisions over the next few years. Since the resources that are available to the community are limited, some prioritization of needs should occur as well as scheduling potential bond measures. STAFF RECOMMENDATION Staff recommends that the City Council discuss the major funding issues facing the community and determine a tentative schedule for addressing these needs. INFORMATION SUMMARY The City has several financial issues facing it in the next several years related to the availability of general fund revenue and the need for providing improved public facilities and programs. In recent years, the City has failed to obtain voter approval of both a public facility bond in 1998 and a transportation funding package in 2000. In addition, voters rejected the Atfalati Recreation District proposal in 2000. Presently, the City Council, staff, and citizen committees are evaluating the need and funding options for a new library facility as well as transportation L improvements. Meanwhile, the Atfalati Recreation District or some other entity may consider seeking funding at some time for recreation programs and facilities. ~ With several funding issues facing the City, it is important that the City Council be briefed on the City's financial J situation, possible funding sources, and the potential funding needs for a new library and road improvements. Each of the issues impacts the other. In addition, because the City has not been successful in passing voter approved u bonds to finance major improvements, there is a need for a coordinated effort and planned out scheduling of any J financial package that goes to the voters. On May 15 staff will lead a discussion with Council on the information presently known on the funding needs for a new library, trends and costs related to transportation improvements under the City's jurisdiction, and other general fund related issues. Craig Prosser will brief the Council on the Financial Plan and the options available to the City to reverse the direction of the general fund. A local option levy, as allowed by Oregon law, should be explored as an option to provide additional general fund dollars for City operations in future years. Based upon the discussion on May 15, the Council and staff should continue to prepare a prioritization and sequence of activities which can then be used to guide the plans and actions of Council, advisory groups, and staff. For instance, if the Council chooses to place a library facility bond on the ballot in 2002, ahead of other funding requests, what would the logical next package entail and when would it be considered by the voters? Based upon the direction given by Council, staff can return with alternatives and information on the impact that the alternatives have on the City's financial position. Citizen members of the Budget Committee will be invited to attend the workshop session and participate. While no final decisions on the specifics of a strategic plan for funding are necessary at this time, if direction is given, better long-range planning can result. OTHER ALTERNATIVES CONSIDERED Address each municipal funding issue independently as it comes before Council. VISION TASK FORCE GOAL AND ACTION COMMITTEE STRATEGY ATTACHMENT LIST FISCAL NOTES Once a final decision is made on a strategic plan, each individual element of the plan will have fiscal consequences. L n J 0 U J Excerpt of Council Minutes - May 15, 2001 Attachment 3 5. STRATEGIC PLANNING OF FUNDING FOR THE LIBRARY, TRANSPORTATION, RECREATION AND PUBLIC FACILITY NEEDS/GENERAL FUND City Manager Monahan Introduced this agenda item. A copy of the PowerPoint presentation illustrating the highlights of the information offered to the City Council is on file with the City Recorder. Finance Director Prosser reviewed the financial forecast. City Manager Monahan reviewed the election requirements, potential dates, and "realities." Discussion followed, with key issues identified (brainstormed) as followed: 1. Library 2. Transportation Elements: major collectors; alternatives to Pacific Highway 99 Operations and maintenance of roads 3. Local Operating Levies 4. Washington Square Implementation Transportation Open space Drainage 5. Recreation Programs Facilities 6. Water Supply Revenue Bond 7. Downtown Redevelopment 8. City Facilities Renovate library building for offices Renovate City Hall offices a (possibly from funds set aside now for the Library) Determine whether feasible or desirable to purchase the water building }y}.. Relocate public works j Determine whether to seil the current Public Works yard Extend life of police building by utilizing the "Niche" building t7 9. Parks and Trails J Acquisition Development 10. Sewer Extension Program 11. Commuter Rail 12. Bus System and Shelters 13. Sidewalks 14. Annexation - Operating and Equipment Costs 15. Urban Growth Boundary Expansion 16. Social Services 17. Affordable Housing 18. Population Diversity 19. Funding Mechanism for Development - Infrastructure - Downtown - Triangle - Washington Square City staff will review the above list and come back to the City Council at its June 19 workshop meeting with timelines (trigger points) and funding information. Councilor Patton noted the urgency to move forward on the library in light of the tight timelines. Council consensus was that the library would be addressed first. Components of transportation could also be addressed as a high priority. The Transportation Financing Strategies Task Force is not ready to make a proposal, according to City Engineer Duenas. a oc J_ m W J avow Attachment 4 STRATEGIC PLAN Issues MMS 0 Issue$ Do plan a h ` N} F t9 W J ~ ~I Issues - Funding for existing . . more scarce - To address needs requiring construction will rcq uire new funding . Recent voter reaction to City bond measures have been negative , , p'pproval of levies and i Our financing situation rrqu ires ottenpon, as: -Our attention -Our ability to borrow-for capita) faciiiiies is limited by voter approNal update I I I can hecompleted. pv Council has established several goals which require action and"major funding. Not It ~7 • Planned fm without decisions . pHority and choice ofdates'that measures will be placed before the vo(crs.. I f • I 2 I j ~I i Tonight's Discussion Craig Prosser will discuss the Financial Forecast Issues will be presented Initial direction .be gimi Future steps can be discussed. i "FinancialTofecast City ofTigard FY 2001-02 Proposed Bud,-,ct I Ti.pancial ' . • L_ Past tren& ~ I 1 0 7 3 i Expcndit~rcs less wic-tim Capital Outlay - 3", pit 11 . ' t 1 1 1 ! I I i i o• .s P • ' w ~ t 1 1 l 1 1 1 4 • 1 Funds I r r e f~ SeWer. Funds i h l~ J u s j i I I II I F. I I +i I I IJI +I I I Election rcq~jrcfncfjj 'e% en numbered • I Ir I I f May 200, r6 . ya Ovember 2002 ow - No% ember 2004 May 201)6 i I I I I LEGIBILITY STRIP s r LEGIBILITY STRIP-A- 00 i For moV ahead successfully to improvements. needs Strategic.Plan , ii scale the project, to need eonsiderina - Cost 1 to , , Continue r funding~wisely to deli~cir service day t6 day n : 9 u J ' 9 G? dIZ1~.s ~U91`J3" 1 2002 - 2004 Strategic Planning List CITY OF TIGARD OREGON 2002 ♦ May - November, Library, $17 million, City ♦ Water Revenue Bond, City or IWB participants (Referred by voters) ♦ Transportation User Fee - Creating fee/ maintenance, City e November Youth Activities/ Operating Funds (Facility and/or Program), City, Recreation District, or other Horizon: ♦ Discussion of Funding for Washington Square Infrastructure • Options: Tax Increment Financing Private Financing through Impact Fee ♦ General Fund Condition • Evaluate fees on a regular basis • Consider a local option levy to supplement general fund revenues to continue providing service at established levels (see 2004) e Additional Water Supply - (Studies, agreements, infrastructure connections, major capital) e Plan for and make decisions on reuse of library, remodeling of office space in library and City Hall ♦ Annexation of Bull Mountain Study o Parks - Acquisition, development, maintenance ♦ Property Sale - Sell Ash Avenue parcels to help offset library costs 2004 Transportation Bond $12 million s General Fund concern - Operating Levy? Include consideration of library staffing and programs for the new library. DC ♦ Youth Activity - Capital Funding Request? yj ♦ Water $4 million for improvements (Estimated by Ed Wegner) ♦ Renovate City Facilities: • Using up to $3 million set aside in the capital facilities account over four budget years. J ♦ Buy Water Building (Remaining portions from our partners) ♦ Moving Expenses e Washington Square Funding Horizon: Recreation Programs/ Facilities Pill ONES 03 In response to a question from Councilor Wilson, Public Works Director commented that at the time Northview Park was established, the neighbors understood that development of this park would not occur until after the completion of the projects identified in the Parks Master Plan. 4. REVIEW OF THE TRANSPORTATION SYSTEM PLAN (TSP) Associate Planner Hajduk reviewed: The purpose of the TSP The steps taken in Tigard's adoption of the TSP Transportation elements covered in the TSP Key transportation capacity and circulation issues raised in the TSP Additional issue and impacts resulting from the adopted TSP An update and recent activity to implement key aspects in the TSP A copy of the PowerPoint presentation is on file in the City Recorder's office. During discussion it was noted that the TSP is a dynamic tool insofar as it can be amended to meet future demands or changes in circumstances. The City Engineering Department will be responsible for the "lion's share" of the Plan. There was some discussion on arterials and how to mitigate impacts by doing smaller, less costly improvements. Councilor Wilson suggested a modeling and technical information review to determine what other steps can be taken before focusing on funding amounts and sources. It was suggested that a priority list be created outlining actions to be taken to alleviate congestion. City Engineering staff will update the Council on how project priorities were selected; this will be set for a future agenda. 5. DISCUSSION OF STRATEGIC FINANCIAL PLAN Finance Director Prosser reviewed this item with Council. Mr. Prosser distributed a summary of recent City of Tigard election results on Measure 28, WCCLS Local Option Levy, Washington County Exhibition Center, Tigard Library Bond, Tigard- 2 Tualatin School Bond, and Atfalati Park and Recreation District. Two measures were approved by Tigard voters: the Library and the School Bond. B After a review of upcoming financial issues, Council members agreed on the u following in priority order: Major Issues #1 - Local Option Levy - target for 2004 election. #2 - Bull Mountain Annexation Tigard City Council Meeting Minutes - February 18, 2003 Page 3 i #3 - Explore new revenue sources. #4 - Consider increases to selected franchise fees Other Issues A. Fee increases (including franchise fees) B. Urban renewal for Washington Square and Downtown (possible revision to City Charter) C. Water revenue bond. The Council removed funding for the proposed skate park from the list of financial issues to resolve. Councilors Wilson and Sherwood expressed concerns about implementation of a street maintenance fee at this time because of the economy and the fact that the library bond and school bond increased Tigard resident's property tax bill this year. Finance Department will memorialize Council's direction on the Strategic Financial Plan for formal adoption at an upcoming Council meeting. 6. COUNCIL LIAISON REPORTS West Economic Alliance - Councilor Wilson reported on a recent meeting he attended for the Westside Economic Alliance. He referred to a Transportation Investment Task Force report and recommendations on freeways, transit, and community projects. This report prioritizes projects; however, no funding has been identified at this time. He also noted that Olivia Clark of TriMet was at this meeting seeking support for TriMet's proposed payroll tax. Ms. Clark stated that 5 percent of the payroll tax TriMet receives comes from Tigard and 8 percent of TriMet's service is delivered to the Tigard area. Tigard staff does not agree with these percentages; staff will L follow up with TriMet to determine how TriMet arrived at these figures. r Tualatin Riverkeepers - Mayor Griffith noted an invitation to attend a meeting a sponsored by the Tualatin Riverkeepers on March 10. Councilor Sherwood advised she planned to attend. City staff will not be asked to attend. i i City Manager noted that the City has submitted an application to be considered for Tualatin Riverkeepers Green Heron Award for two significant projects that support the Riverkeepers' mission: the creation of a new 4.5 acre wetland at Cook Park and the purchase of a 14.7 acre library site, 9.7 acres of which will be an extension of Fanno Creek Park. Tigard City Council Meeting Minutes - February 18, 2003 Page 4 AGENDA ITEM # FOR AGENDA OF February 18, 2003 CITY OF TIGARD, OREGON COUNCIL AGENDA ITEM SUMMARY ISSUE/AGENDA TITLE Strategic Financial Plan Discussion PREPARED BY: Craig Prosser DEPT HEAD OK CITY MGR OK ISSUE BEFORE THE COUNCIL Discussion of future financial needs of the City, possible new or increased revenue sources, and possible timelines. This discussion will be the first step in putting together a Strategic Financial Plan for the City in accordance with Council's Goal #l for 2003. STAFF RECOMMENDATION Discuss issues presented by staff, add or delete issues as needed, develop a preliminary timeline, and develop an action plan for next steps. INFORMATION SUMMARY At the 2003 Goal Setting session, Council identified a Strategic Finance Plan as its number one goal. The City is facing a number of financial challenges over the next several years. This discussion will attempt to identify all upcoming issues so that they may be placed in context, identify inter-relationships between the various issues, develop a preliminary timeline, and provide preliminary direction to staff on issues to be pursued and issues not to consider. This discussion will focus primarily on the revenue side of the issue. The other element of a Strategic Financial Plan is the expenditure side. That portion will be addressed in the annual Budget Process which is currently underway. In 2002, the City Council held a workshop session to develop a list of Strategic Financial issues. In that workshop, the Council developed a list of issues to pursue in Fiscal Years 2001-02 through 2003-04. The number one issue on that list was to win voter approval for a general obligation bond to build a new library. That goal was successfully 9 attained in May 2002. The results of that Council Workshop session are attached to this Agenda Summary Report as Attachment A. i The Executive Staff of the City met in an all-day retreat on January 24. As part of that retreat, Executive Staff developed an initial brainstorm list of upcoming issues and identified a preliminary timeline for these issues. That list is included as Attachment B to this summary. Following the Executive Staff Retreat, Departments prepared short summaries (no more than two pages) of each City and County issue on the list. These summaries are not intended to be exhaustive; rather they are intended to briefly frame each issue to aid Council's discussion or to remind Council of any work done to date. If Council chooses to pursue any of these issues, more thorough research and analyses will be prepared. All issues summaries are included as Attachment C to this Agenda Summary. The Executive Staff s brainstorm list includes three statewide or regional issues for which no summaries have been prepared. These three issues - PERS, Measure 28, and TrWet Payroll Tax - do not have direct impacts on the City or have been fully discussed and analyzed in the media recently. Staff has no additional information on these issues at this time. These issues do, however, need to be considered when building a Strategic Financial Plan for the City. Finally, Attachment D to this Agenda Summary contains a list of known or potential financial measures which may be presented to voters in 2004. This information is based on a survey of all jurisdictions in the metropolitan region. Not all jurisdictions responded to this survey, so this list cannot be considered complete. It does, however, provide an indication of issues likely to be presented to voters in the near future. OTHER ALTERNATIVES CONSIDERED None. This discussion will identify all known alternatives. VISION TASK FORCE GOAL AND ACTION COMMITTEE STRATEGY This discussion supports Council Goal #1, Develop a long Range Financial Strategy. In addition, many of the items encompassed within this discussion relate directly to Vision Goals. ATTACHMENT LIST Attachment A - 2002 - 2004 Strategic Planning List Attachment B - Executive Staff Retreat - Long Term Financial Issues Attachment C - Strategic Financial Plan Issues Summaries Attachment D - Potential Upcoming Ballot Measures in the Region FISCAL NOTES The potential costs of each issue, if known, are shown on Attachment B to this Agenda Summary. L Y a J 1 Attachment A 2002 - 2004 Strategic Planning List CITY OF TIGARD OREGON 2002 ♦ May - November, Library, $17 million, City ♦ Water Revenue Bond, City or IWB participants (Referred by voters) ♦ Transportation User Fee -Creating fee/ maintenance, City ♦ November Youth Activities/ Operating Funds (Facility and/or Program), City, Recreation District, or other Horizon: ♦ Discussion of Funding for Washington Square Infrastructure cp Options: Tax Increment Financing Private Financing through Impact Fee ♦ General Fund Condition T Evaluate fees on a regular basis cp Consider a local option levy to supplement general fund revenues to continue providing service at established levels (see 2004) ♦ Additional Water Supply - (Studies, agreements, infrastructure connections, major capital) ♦ Plan for and make decisions on reuse of library, remodeling of office space in library and City Hall ♦ Annexation of Bull Mountain Study ♦ Parks - Acquisition, development, maintenance ♦ Property Sale - Sell Ash Avenue parcels to help offset library costs 2004 o Transportation. Bond $12 million ♦ General Fund concern - Operating Levy? Include consideration of library staffing and programs for the new library. L ♦ Youth Activity - Capital Funding Request? ♦ Water - $4 million for improvements (Estimated by Ed Wegner) A ♦ Renovate City Facilities: cp Using up to $3 million set aside in the capital facilities account over four budget years. D 7 ♦ Buy Water Building (Remaining portions from our partners) ♦ Moving Expenses ♦ Washington Square Funding Horizon: ♦ Recreation Programs/Facilities 0DVaUWMTEOr.-ftATt0Z PLAN µ5T ppC e.E~~ee ffy S7~P attachment B Financial Issues Retreat - Long -Term Executive Sta USSOo n p►ur uses ®ni For Disc ncilor Notesl DRAFT Method of priorities Approval) Amount Imp1ementation issue council $1.6 million per ordinance & potential Timing year Resolution Council aintenance Fee 84 to $20.84 Resolution 2003 Street Council million Bond TO Be fined Resolution Water Revenue peter summer m bons Fee Increase ~T8D) Council 2003 Pates Reserva T130 Resolution 2003 Council ions Fee $10tcitation Resolution Room Reserv $67 ,000 per 2003 ear council EteSOIUtlon Traffic Citation Assessment Fee TBD 2003 Council ervice Fee $720,0p0 to Resoluton Resident policelFire S $989000 Per 2003 Non- ee increases year Council Selected Franchise f T8D Resolution 2003 Council Fee Increase T8D Resolution 2003 land use Mechanical Building Fees 2003 Page 1 of 3 DRAFT - For Discussion purposes On/v Potential (Method of Councilor Notes/ Timing Issue Amount Approval/ Priorities Implementation 2004 Bull Mountain Annexation Differing impacts Council on various funds resolution, and operations Citywide vote, or Bull Mountain vote 2004 Tigard Local Option Property Tax Levy TBD Citywide vote 2004 New Revenue Source(s) TBD Council Ordinance & Resolution 2005 Urban Renewal TBD Citywide vote 2006 Transportation General Obligation Bond $25 million Citywide vote ? Recreation District Creation, or TBD Citywide (or Annexation to Tualatin Hills Parks and Recreation larger) vote, or District Council Resolution to initiate annexation ? Parks and open Spaces Acquisition & Construction TBD Citywide vote General Obligation Bond TBD Long Term Water Supply $80 to $90 Council million Resolution TBD Urban Services TBD TBD TBD City Buildings- Maintenance, Repair, and $990,000 City Budget Expansion TBD Skate Park Construction $642,000 to City Budget $877,000 and/or Fund Raisin Page 2 of 3 sjloF Financial Issues Long T erm Retreat'' Lions Executive sta. other Jurisdic oses one ;sCUSS1~n PUS" Councilor Notesl oties OFT FT For ® Method of Pri ri Q~ APProvtation Amount Imply . e vote over Gou ~ issue $50 million potential 5Yeas $1,000 State ing 26~ P rates ritn W GGLS operafin9 ~evY EmoBectYed to May 2004 n 1e or more State PERS Increases TBO Tri-Met 2003 Unknown 8 re Measure 2 Failu of janu 2003 t Payroll Tax Me Tn~ 2003 kl Page 3 of 3 Attachment C strategic Financial Plan Issues Summaries February 18, 2003 i i 1 Table of Contents City of Tigard Issues Street Maintenance Fee ......................................................................3 Water Revenue Bond ..........................................................................5 Parks Reservations Fee ......................................................................7 Room Rental Fees ...............................................................................9 Traffic Citation Assessment Fee ......................................................11 Non-Resident Police/Fire Service Fee ............................................12 Franchise Fees ...................................................................................13 Land Use Fees ...................................................................................15 Mechanical Building Fees .................................................................16 Bull Mountain Annexation .................................................................17 Local Option Property Tax Levy .......................................................19 New Revenue Source(s) ...................................................................21 Urban Renewal ...................................................................................23 Transportation Bond ..........................................................................25 Recreation District Creation, or Annexation to THPRD ...............27 Parks and Open Spaces Acquisition Bond ....................................29 Long Term Water Supply and Water Rates ...................................31 Urban Services ...................................................................................33 City Buildings - Maintenance, Repair, Expansion ........................34 Skate Park Construction ...................................................................36 Other Jurisdictions' Issues WCCLS Local Option Levy ...............................................................39 L r J 0 2 Street Maintenance Fee Issue Summary Definition: The Street Maintenance Fee is a monthly fee based on use of the transportation system, and is typically based on trip generation rates. The fee would be charged to each household and business in the City and would be collected through the City's regular monthly sewer and water bill. The intent is to have the users of the road system share the costs of the corrective and preventative maintenance needed to keep the street system operating at an adequate level. The revenue received through the fee would be dedicated to maintenance of the street system. Revenue Required/Revenue Potential: Approximately $1,605,000 is needed for the following: $800,000 for street maintenance, $445,000 for street light and traffic signal system energy and maintenance costs, $270,000 for rights-of-way maintenance on collectors and arterials, and $90,000 for sidewalk maintenance on collectors and arterials. The proposed charge for single family residential structures is $2.54 per month, and for multi-family units $1.76 per month per unit. Work Completed to date: The implementation of this fee was recommended to the City Council over a year and a half ago by the City's Transportation Financing Strategies Task Force, a citizen task force formed to evaluate and recommend to Council feasible alternative funding sources for street maintenance and street expansion needs. The Task Force conducted an extensive public process to enhance citizen awareness of the need for the proposed fee and to receive input from citizens and businesses. The proposed fee has been discussed with Council several times and is again scheduled for further Council discussion at the March 18, 2003 workshop meeting. Council direction on the possibility of adoption will be requested at that meeting. Implementation Action Required: Council has the authority to establish the Street Maintenance fee. The proposed fee would be adopted by ordinance and the rates to be L charged would be established by resolution. r Timing: If Council does approve implementation, the effective date for the fee would be n set several months after Council adoption of the ordinance and resolution. This would give the City of Tigard staff sufficient time to set up the fund and do the necessary work to ensure that the amounts can be incorporated on the utility bills without a glitch in the D billing process. u Advantages: The following are the reasons for adopting the fee: o Would provide a new, stable source of revenue for street system maintenance. 3 • The gas tax revenues are not restricted to maintenance, but can be used for a wide variety of needed street improvements. However, these funds have been used primarily for maintenance because of the large maintenance backlog and the inadequacy of the current gas tax rate to address anything beyond that. The proposed Street Maintenance Fee would supplement the gas tax and would be used in the maintenance of the street system. This would allow use of some gas tax revenues to address reconstruction, installation of crucial pedestrian connections, and other street improvement needs. • Would allow the City to establish a long-term plan to address the $4 million backlog in street maintenance needs. • Early adoption of the fee could establish that new revenue source before the state legislature proposes any preemptive action directed against implementation of street utility fees. Disadvantages: The following are the drawbacks to adoption of the fee: • The fee would have residential land uses pay 28% of the total amount with the rest coming from non-residential land uses. Some businesses oppose it because of its heavy charges to the commercial sector. • Some opponents are labeling the fee as a tax. Depending upon how the fee is structured, it could be construed as a tax. • The Oregon Grocery Industry Association has threatened to take legal action to stop implementation of the fee. • It could be referred to the voters through the initiative process. • The implementation of the fee could interfere with other City initiatives, such as a possible operating levy and a transportation bond issue. Recommendation: The recommendation is that City Council adopt the fee and direct implementation. This would raise new revenue for urgently needed maintenance of the street system. Many cities have either taken action or are seriously contemplating initiation of a similar fee. Future legislative action could affect the fee adoption, if delayed. L r J 4 Water Revenue Bond Issue Summary Definition: A water revenue bond is a type of bond backed by future water revenues (as compared to a general obligation bond which pledges property taxes as repayment). Tigard is considering this type of bond to finance capital improvements and possibly the up front or "buy in "costs the City would incur to secure a long term water supply. Revenue Required/Revenue Potential: The City will be considering the use of water revenue bonds to finance all or a portion of the upcoming water reservoir/pump station/transmission piping project package, named the 550 ft Service Zone Water Supply System Improvements. This group of projects is currently estimated to cost $8.84 million dollars. In addition to the above, the City has been invited to enter into negotiations to become a partner in the Joint Water Commission (JWC). The City hopes to negotiate an ownership percentage that would allow the City to obtain up to 4 million gallons per day (MGD), and to allow the costs to Tigard to be paid over time as a component of water purchase costs. The JWC could require this to be a cash arrangement. Staff anticipates completing this negotiation by April, 2003. Buy in costs could range from $2 to $3 per gallon. Assuming the most expensive, where the City would be successful in obtaining 4MGD at a cost of $3 per gallon and the current JWC owners demanded cash, Tigard would need to raise an additional $12 million dollars via revenue bonds. In summary, Tigard could be looking to issue up to $20 million dollars of revenue bonds within the next two years. Both of these projects are consistent with and addressed specifically in the City's visioning documents. Work Completed to date: The City has currently done two things in anticipation of these expenses: the Council passed a resolution that sets water rates for the next three fiscal years, and the City has retained a consultant to develop a water financial planning and rate model to better evaluate out options and scenarios. This rate model also will be important in the issuance of water revenue bonds. Implementation Action Required: The Intergovernmental Water Board will initially produce a recommendation to the City Council. Following that, the City Council may authorize the issuance of revenue bonds by ordinance. i Timing: Staff work will begin soon, with the actual issuance of the bonds anticipated late in 2003 or early 2004 Advantages: Revenue bonds are excellent funding mechanisms for utility capital improvements for three reasons: (1) they do not compete with other public funding 5 based on general revenues and they do not require voter approval, (2) they extend the concept of "cost of service" principles where a user of a utility pays their proportional share of the cost to provide that specific service, and (3) they spread the cost of an improvement to future users of that improvement (intergenerational equity). Revenue bond repayment periods are generally also shorter than the useful life of the project they fund. In addition the current costs of borrowing money are very favorable. Disadvantages: Not using bonding of some type puts our utilities into the business model of pay cash as you go which is not viable where such large amounts of capital are needed. In addition, revenue bonds carry have a higher interest rate than general obligation bonds, because their repayment is based on the financial stability of the system and not on an unlimited power to tax. Recommendation: Staff will continue to update Council on options and costs, with a future recommendation probably being to authorize issuance of one or more water revenue bond issuances. L r J D 9 6 Parks Reservations Fees Issue Summary Definition: Resident and Non-Resident fees and charges for the use of park facilities, primarily shelter rentals, have been in effective for many years. The City currently charges non-resident's double the resident fee. Although funds derived from fees and charges are nominal, they help defray maintenance costs. Revenue Potential: It is possible to increase the amount of revenue derived from fees and charges, thereby recovering a larger proportion of the cost of taking reservations and providing services to groups. Current Park Reservation Fees Application Fee $10.00 Covered Picnic Area Rental Tigard Based Rental Rate Groups up to 50 $6.00/hour 51 to 100 $8.00/hour 101 to 150 $15.00/hour 151 to 200 $20.001hour 201 to 250 $25.00/hour Non-Tigard Based Rental Rate Groups up to 50 $12.00/hour 51 to 100 $16.00/hour 1'01 to 150 $30.00/hour 151 to 200 $40.00/hour 201 to 250 $50.00/hour Soccer/Ballfields Tigard Based Rental Rate $4.00/hour Non-Tigard Based Rental Rate $8.00/hour L Work Completed to date: A study of local area 2002 fees and charges has been C completed. Public Works staff is currently preparing a recommendation to increase fees and charges. A substantial fee increase will be necessary if the City is to have fees and charges comparable to surrounding jurisdictions. Implementation Action Required: Increased fees and charges must be approved by City Council. Timing: It anticipated that a recommendation to increase fees and charges will be made during the budget approval process. 7 Advantages: • Increased revenues will help to defray increasing maintenance costs • Tigard fees will be more in-line with neighboring jurisdictions. Disadvantages: • Even though a substantial rate increase may be approved, the yield will remain nominal • Residents will not like increase Recommendation: Continue with analysis and make recommendation that puts Tigard's fees more in-line with neighboring jurisdictions. s 'r i 8 Room Rental Fees Issue Summary Definition: Room rental fees are currently charged for using the Tigard Senior Center and in limited circumstances the Town Hall and Water Auditorium. A fee could be charged to users for use of all City rooms. Revenue Required/Revenue Potential: At this time, the revenue potential is unknown. Room use fees will be set at a rate that covers the cost of staff time, utilities, and wear on the facilities. With the completion of the new Library there will be additional revenue potential through that complex. In addition to the community room, there are two rooms within the Library that may be made available for renting during the Library's business hours. Also, the proposed re-model configuration for the current Library building allows for two meeting rooms that could be rented by the public during non-business hours. Current Meeting Room Reservation Fees & Deposits Cleaning Deposit (Non-Senior Center) Groups of 80 or less $150.00 Groups of more than 80 $250.00 Cleaning Deposit (Senior Center) Groups of 80 or less - no food/bev $50.00 Groups of 80 or less - food/bev $150.00 Groups of more than 80- no food/bev $100.00 Groups of more than 80- food/bev $250.00 Red Rock Creek Conference Room Class 1 and 2 $0.00 Class 3 $10.00/hr Class 4 $15.001hr L Richard M. Brown Auditorium Class 1 and 2 $0.00 Class 3 $30.00/hr y Class 4 $35.00/hr 3 Senior Center Activity Room d Class 1 and 2 $0.00 Class 3 $10.00/hr Class 4 $20.00/hr J Class 5 $25.00/hr 9 Senior Center Classroom or Craft Room Class 1 and 2 $0.00 Class 3 $5.00/hr Class 4 $10.00/hr Class 5 $15.00/hr Town Hall Class 1 and 2 $0.00 Class 3 $20.00/hr Class 4 $25.00/hr Water Lobby Conference Room Class 1 and 2 $0.00 Class 3 $10.00/hr Class 4 $15.00/hr Work Completed to date: No significant work has been done to date. Implementation Action Required: Room use fees are part of the City's Room Use Policy which was adopted by City Council. Policy changes, including the classification of room users and room rental fees, will need to be approved by City Council. Timing: Present the changes to the Room Use Policy to City Council by the end of May. If City Council approves the changes to the Room Use Policy, the changes in classification and fee amounts will become effective for reservations made from July 1, 2003 forward. Advantages: • The City will recover a larger portion of the cost of operating the program. • It is a benefit-related fee. In other words, only those who use the rooms will incur the cost. • The City will be providing citizen's with a low cost alternative for their personal room use. Disadvantages: L Current room users will perceive the fee as a reduction in services. This will be r especially true of non-profit groups. Recommendation: 3 Proceed with updating the City's Room Use Policy. 9 u 10 Traffic Citation Assessment Fee Issue Summary Definition: A Traffic Citation Assessment Fee is an additional charge levied on all persons who plead or are found guilty of committing a traffic violation. This charge is in addition to any fine or assessment levied by the municipal court. Revenue Required/Revenue Potential: The current base fine for a traffic violation is $50. In addition, the court collects additional charges for the Oregon Court System (unitary assessment) and Washington County. These additional costs total $49. The total to the offender is therefore $99. (A portion of this may be waived by the judge.) A Traffic Citation Assessment Fee would be $10 per ticket, raising the total cost to the offender to $109. Based on 6,700 citations issued per year, this charge would raise $67,000. Work Completed to date: Information on a similar charge imposed by the City of Milwaukie has been collected. Tigard's charge could be modeled on the City of Milwaukie ordinance. Implementation Action Required: Council would have to amend Tigard Municipal Code to create authority for the assessment. The Council would then have to add this charge to the Master Fee Resolution. Timing: To be determined. This charge could be implemented by June 2003. Advantages: • The charge would help pay for police programs, including traffic enforcement, training, education, and community programs. ■ The charge is targeted to those who generate costs in the Police department through violation of traffic codes. Disadvantages: • The addition of this charge would raise total costs charged to traffic offenders to an amount greater than the base fine ($59 vs. $50) » ■ Unless otherwise specified in Code, the municipal judge could waive this charge, a thereby reducing collections J n Recommendation: Consider adopting a Traffic Citation Assessment Fee by June 9 J 2003. 11 Non-Resident Police/Fire Service Fee Issue Summary Definition: A Non-Resident Police/Fire Service Fee is a special fee charged to non- City, adult residents each time they receive service from the City. This type of fee is charged by several fire departments, including the City of McMinnville, for a variety of services, including traffic accidents. Revenue Required/Revenue Potential: To be determined Work Completed to date: None. Some minimal research has been done by the Police Department, but no in depth work has been done. Implementation Action Required: Council would adopt an ordinance authorizing a fee and would then adopt a resolution amending the City's Master Fee Resolution Timing: The Police Department reports that it could have research completed in about one month. Following that, Council could adopt this fee by June 2003. Advantages: ■ Non-residents would pay for services they receive that they do not currently pay for through payment of taxes or other means. ■ This would help off-set Tigard taxpayers' costs for providing services to major regional attractors, such as Washington Square and Highway 99. ■ Money raised would help pay for services in the Police Department which might otherwise have to be scaled back. Disadvantages: ■ Collection could be difficult since, by definition, all payers would be out-of-town residents. ■ Other communities could feel that the reciprocity by which they provide services to Tigard residents while they are in other communities may be compromised. Z Recommendation: Continue to research this proposal, with particular emphasis on the L collection mechanism. Prepare a report for Council consideration within the next two e months. 3 7 u 12 Franchise Fees Issue Summary Definition: The City charges private utility companies a fee for use of public rights-of- way to string their wires, or lay pipes and conduit. The fee is calculated as a percentage of the utility's gross revenues collected within the City of Tigard. State law limits the maximum fess and taxes to no more than 5% for gas and electric and 7% for telecommunications. The City currently charges the electric utility 3.5%, the natural gas utility 3%, and telecommunications companies 5%. The City does not charge its water and sewer utilities any fee, though many cities do. Revenue Required/Revenue Potential: Raising electric and natural gas franchise fees to 5% (the same as telecommunications) would raise approximately $720,000 per year for the General Fund. Raising telecommunication franchise fees from 5% to 7% would raise approximately $134,000. Charging a 5% franchise fee to the City's water utility would raise approximately $135,000 per year. Work Completed to date: No work has been done on this issue to date. Implementation Action Required: Council resolution or ordinance. Timing: The Northwest Natural Gas franchise agreement and many telecommunications franchise agreements require 180 days notice before any increase in the franchise fee. Advantages: ■ Builds off an existing collection that is in place and well established ■ Broad based - it affects a wide variety of payers (though utility bills) ■ Relatively stable revenue source • Electric and natural gas utility rates have recently been lowered (following large increases last year). This will minimize impact on utility customers. ■ Increasing gas and electric franchise fees to 5% would achieve equity among the private utilities. r Disadvantages: n ■ Increased fees will be passed on to utility customers, thereby increasing their bills u • Under state law, the incremental increase suggested would be itemized on n customer bills ■ Telecommunications companies are challenging local franchise authority nationally and in Oregon. Increasing franchise fees could add to this push. Recommendation: • Consider raising gas and electric franchise fees to 5% 13 ■ Do not increase telecommunications franchise fees. Maintain those at 5% to achieve equity among the private utilities ■ Explore options for charging a franchise fee of no more than 5% on public utilities (water and sewer.) If options are feasible, consider instituting water and sewer j franchise fees. i 14 Land Use Fees Issue Summary Definition: The City charges applicants for land use actions a variety of fees to recover costs associated with those applications. Fees were last increased in 2002, but that fee increase did not include any costs incurred by Engineering and Public Works in reviewing and processing applications. Support for Long Range Planning activities directly relating to development activity was also not recognized. Revisions to land use and building fees are necessary to capture costs associated with processing of land use applications. Revenue Required/Revenue Potential: To be determined. This issue will be studied to develop a fee structure that will include recovery of costs for time worked by Engineering, Public Works, and Long Range Planning, in addition to time worked by Current Planning. The total revenue potential cannot be accurately determined until that study takes place. Work Completed to date: Limited work has occurred to date. Time tracking procedures will be in place shortly. Implementation Action Required: Council approval Timing: Revised fees could be acted upon by Council by July 2003 Advantages: • Development pays proportionate share of direct and indirect costs associated with processing land use and building applications. • General Fund support of development activities would be reduced. Disadvantages: • Land use fees increase. • Development-related fees could be higher in Tigard than in surrounding jurisdictions. i • Development-related fees supporting Long Range Planning activities are not common. Recommendation: • Proceed with analysis; include time tracking to determine costs. • Develop a fee proposal to present to Council by July 2003 15 Mechanical Building Fees Issue Summary Definition: Mechanical Building fee increase to recover costs. Fees for building and plumbing are not proposed for increase. These fee increases will not affect the General Fund. Revenue Required/Revenue Potential: Unknown at this point. Mechanical fees are budgeted in the Building Fund. Overall, the Building Fund is in good condition due to cost recovery of the other specialty fees for other trades (building, plumbing, etc.), but fees from the other trades are subsidizing the mechanical trades. Policy established by state law discourages (but does not prohibit) subsidies between the trades. Work Completed to date: All building fees were increased in 1999 and 2000 after 20 or more years of no increases. These increases were accomplished following a building study and several public hearings. No work has been done since 2000 on any building fee increases. Implementation Action Required: Adoption of resolution establishing revised fees following a public review process mandated by state law. Timing: Fee increase should be coordinated with yearly fee updates in June 2003. Advantages: • Mechanical permit fees will be made current and will pay for the cost of providing service. • A mechanical fee increase will decrease the subsidy from other building specialty trades for the cost of mechanical inspections and plans checks. Disadvantages: • Any increase will increase costs for builders and remodelers and could be passed on the purchasers of new and remodeled buildings. L • The building industry has traditionally opposed Tigard building fee increases. Recommendation: Proceed with fee study and consider increasing fees by June 2003. J D U r 16 Bull Mountain Annexation Issue Summary Definition: Annexation of approximately 1,400 acres and 7,300 residents in the Bull Mountain area to the southwest of Tigard. Revenue Required/Revenue Potential: As of November 2001, General Fund Operating costs to serve the Bull Mountain area were estimated at $2.2 million per year. General Fund operating revenues were estimated at $3.8 million per year, so the area would more than pay for operating costs. Several capital funds, however, were projected to experience significant deficits in providing needed capital improvements to the area: Gas Tax - ($345,000), Traffic Impact Fee - ($7.6 million), and Parks CIP - $18.3 million). Staff is currently reviewing this previous analysis to refine and update this information. Work Completed to date: This annexation has received extensive review by staff and public discussion. Staff prepared a preliminary annexation report which identified potential operating and capital costs and revenues. Staff is currently updating that study. Council has discussed this annexation on several occasions. In addition, the City has conducted two open houses in the Bull Mountain area to solicit residents' issues and concerns. Implementation Action Required: State law allows several methods for accomplishing an annexation: 1. Double Majority - petition from and majority of residents with a majority of the land value of the area. Annexation would be approved by the City Council. 2. Vote of the subject area- a vote of all residents in the affected area, with a majority deciding the question. 3. Vote of the subject area and the City, with a majority deciding the question. Timing: The timing of further discussion of this issue is not yet determined. Timing of L the annexation itself is critical. If the annexation becomes effective after March, the City C` will be responsible for providing services for up to a year and a half before residents start paying for those services. Advantages: i Improved services to residents of the Bull Mountain area, including police patrol, road maintenance, and other city services. Revenues are projected to more than cover the cost of those services. Residents obtain a voice in the governing and direction of the City of Tigard. • Residents of the Bull Mountain area would start paying for those services that they currently use, including parks, library, and arterial roads outside of the area. 17 Disadvantages: • The City of Tigard would assume responsibility for major capital needs of the area, primarily parks and roads. Revenues will not cover the costs of these facilities. • Strong resident opposition could create hard feelings which could jeopardize other City initiatives. Recommendation: • Continue working with residents and Washington County to analyze the benefits and costs of annexation. • Update the annexation study to refine cost, revenue and service needs analyses. • Work to educate Bull Mountain and City residents of the issues surrounding annexation of this area. H _J U J 18 Local Option Property Tax Levy Issue Summary Definition: A Local Option Property Tax Levy is allowed under the Oregon Constitution (Measure 50) to increase the local property tax rate to pay for needed services. It cannot exceed a period longer than 5 years, after which, it must be re-approved by voters. It can be used for any purpose (i.e. General Fund support) or it can be dedicated to specific services (i.e. Library, Parks, Police, etc.) Revenue Required/Revenue Potential: It is not yet known how much the City would require from a Local Option Property Tax Levy. That is dependent upon what combination (if any) of additional revenues or cuts in expenditures the Council wishes to pursue. A tax rate of 27¢/$1,000 of assessed valuation will raise $1,000,000 per year. Work Completed to date: No work on a Local Option Property Tax Levy has been done to date. Departments have preliminarily forecasted funding needs, but those forecasts have not yet been reviewed by the Budget Committee. Implementation Action Required: A Local Option Property Tax Levy must be approved by Council and placed on the ballot for approval by Tigard voters. It may only be voted on at one of the following elections: 1. May, subject to double-majority requirement 2. November of an odd-numbered year, subject to double majority requirement 3. November of even numbered year, subject to simple majority. Timing: If a Local Option Levy is approved by voters in May 2004, the first revenues would be received by the City in November 2004. If the Levy is approved by voters in November 2004, the first revenues would be received by the City on November 2005. Advantages: ■ Broad based revenue source ■ Easily understandable (traditional funding source, familiar to voters) r ■ Stable ■ If approved as a rate per $1,000, it will grow with growth in assessed values ■ Well-established collection mechanism in place J Disadvantages: 0 ■ Short term solution - it expires after 5 years, and then must be renewed by voters ■ Oregon voters have been limiting property taxes for the last 10 years. Tigard voters may not choose to increase their property taxes. ■ Competition on the ballot from other jurisdictions requesting voters to approve funding measures 19 • Competition and confusion with WCCLS measure likely to be on the ballot in 2004 Recommendation: Continue to research and a)plore options with the goal of placing this issue before voters in May or November 2004. EC _J m W J 20 New Revenue Source(s) Issue Summary Definition: There are many potential sources of revenue used to varying degrees by other jurisdictions within Oregon and nationally. It may be to the City's advantage to consider one or more of these sources to supplement other General Fund revenues. A partial list of potential sources includes such items as: ■ Construction Excise Tax ■ Local Gas Tax ■ Local Hotel/Motel Tax ■ Local Sales Tax ■ Off-Street Parking Tax • Payroll Tax ■ Renter Service Fee ■ Utility Account Tax Revenue Required/Revenue Potential: Revenue potential of various options has not been determined. Potential candidates (if any) need to be identified before revenue potentials can be researched. Work Completed to date: None Implementation Action Required: Most of these types of revenue sources could be implemented by Council action. They would all be subject to referral, and some are more likely to generate interest in referral than others. Timing: Generally speaking, development of a new revenue source is quite time consuming. In addition to the time required to research identified options and to structure a proposal, it is also generally advisable to develop an extensive public involvement process, which can also be time consuming. Most likely the earliest a new revenue proposal could be brought to Council would be in late 2004. Advantages: Advantages of new revenue source will vary by the specific source developed. In general, however, new revenue sources will help to diversify the City's revenue base. This will help to insulate the City from fluctuations in the economy and will spread the burden of paying for City services. If constructed properly, new revenues can also increase equity within the City's revenue structure. 3 Disadvantages: New revenue sources are rarely popular. Specific sources may u ~ generate high levels of opposition form specific interest groups. This opposition could affect other City initiatives 21 If the source chosen is entirely new, there may not be a readily available collection mechanism. If it is necessary to set up a revenue collection mechanism, administration of the new revenue source could be expensive. Recommendation: Direct staff to identify a preliminary list of potential revenue sources and to research issues related to those sources. Schedule a Council (or Budget Committee) workshop to present the results of that preliminary research. Make a determination following this workshop session whether or not to proceed with any new revenue sources. L DC a a U J 22 Urban Renewal Issue Summary Definition: Creation of one or more urban renewal districts to generate dedicated revenues to pay for needed improvements in the Washington Square Regional Center, Downtown Tigard, and/or Commuter Rail Line. The Tigard Charter currently prohibits any renewal districts without an approving vote of the people. Revenue Required/Revenue Potential: To be determined. The Washington Square regional Center Plan identifies substantial improvements needed in that area, with costs to match. These costs can only be partially covered by existing revenues and fund sources. Work Completed to date: Council has received three informational briefings of the mechanics of urban renewal and urban renewal financing. Council has approved the Washington Square Regional Center Plan and the Washington Square Regional Center financing plan, which identify needed improvements and potential costs. Washington County is actively pursuing funding for the Commuter Rail Line and is exploring urban renewal as a means of providing funding for a portion of the improvements required, particularly in the area of Commuter Line Stations, of which Tigard will have two. The Central Business District has discussed plans for needed improvements, but to date, not central vision or plan has emerged. Implementation Action Required: City Charter prohibits the formation of any urban renewal district without an affirmative citywide vote. Council could refer one of two measures to the people: 1. An amendment of City Charter to remove the requirement for a citywide vote, or L 2. Approval of one or more urban renewal districts. Timing: To be determined Advantages: • Creation of a dedicated funding source, that grows with growth in assessed 9 values in the urban renewal district, that can be used to pay for needed J improvements. Public improvements paid for by urban renewal will spur private investment that will further increase values in the district, and will accommodate job and housing growth 23 M I • Once the urban renewal plan is accomplished and all costs are paid for, the assessed value is returned to the general tax roles and help pay for citywide service. Disadvantages: • Urban renewal "locks up" growth in assessed values during the life of the urban renewal plan, thereby limiting growth in tax revenues for all overlapping taxing jurisdictions. • Urban renewal mechanics are complicated and difficult to explain to the public in an election setting. • Creation of an urban renewal district requires the active support of major property owners within the proposed district. Recommendation: • Continue to explore urban renewal as an option for Tigard • Work with property owners in the Washington Square Regional Center and the Tigard Central Business district, and with Washington County to assess the level of interest and support for urban renewal. • Develop a proposed timeline for resolution of this question. a t9 24 I- M - 0 Transportation Bond Issue Summary Definition: A Transportation Bond is a funding mechanism whereby a local jurisdiction can sell bonds to perform transportation-related improvements. It requires a Citywide vote and the repayment of the bonds over a typical 10 or 20 year period would come from an increase in the local property tax rate. Revenue Required/Revenue Potential: Approximately $25 million is the revenue needed to address some of the key transportation-related improvements needed to improve local circulation in the City. The increase in the tax rate needed to support this amount would be dependent on the interest rate, on the City's assessed value, and on the length of the bond issue period. A bond issue for $25 million at an assumed interest rate of 4.75% over a 10 year period would be 90¢ per $1,000 of assessed value. At a 20-year period with an interest rate of 4.50%, the rate would be 55¢ per $1,000 of assessed value. Hence, the expected range in election year 2006 would be between 50¢ and $1.00 per $1,000 of assessed value for a bond issue in the amount of $25 million. Work Completed to date: A Council-appointed Transportation Bond Task Force selected a list of transportation, safety, sidewalk, and pedestrian/bikepath projects to meet the City's goals of improving traffic safety, improving traffic flow, and enhancing pedestrian and bike transportation. Council approved the proposed list of projects and submitted a Proposed Transportation Bond in the amount of $16 million as Ballot Measure 34-20 in the November 7, 2000 general election. The proposed bond issue did not pass. The need to address the major transportation improvement needs of the City has grown even more urgent since then. In January 2002, Council adopted the Tigard Transportation System Plan. This plan provides an extensive list of projects necessary to accommodate current and future traffic. It provides the basis for project selection for a future transportation bond issue. Implementation Action Required: A Citywide vote of approval is needed for a bond issue. This requires simple majority in a general election, but requires a double majority in any other election. Timing: The earliest that a bond issue could be submitted is in the 2006 general election. This is in recognition of the other ballot issues that need to be submitted in the 0 2004 election year. 7 u Advantages: The reasons for proposing a Transportation Bond are as follows: J • Accelerates the design and construction of major transportation projects to increase capacity and enhance traffic flow. Some of these improvements are needed now to address current traffic problems. 25 • Improves traffic and pedestrian safety through intersection improvements and separation of various modes of travel (bike lanes and sidewalks) as part of the improvements. Disadvantages: The drawbacks to the Transportation Bond are: • It requires a vote of the citizens to increase their property tax. The voters have not shown an inclination to favor such an increase. • Competition on the ballot from other jurisdictions may work against passage. • May conflict with other City initiatives, depending upon what happens in election year 2004. Recommendation: The recommendation is that the City plan for a Transportation Bond issue in the amount of $25 million to be submitted to the voters in election year 2006. This would require creation of a committee or task force to select projects that voters would deem as essential. It would also require a concerted effort by the City, City Council, and the community to conduct a public awareness campaign to convince the voters to approve the bond issue. v. s- J U 26 Recreation District Creation, or Annexation to Tualatin Hills Parks and Recreation District Issue Summary Definition: Creation of a new Recreation District to service the Tigard/Tualatin area, or requesting annexation of this area to the Tualatin Hills Parks and Recreation District (THPRD). Such an action would be designed to improve parks and recreation services to area residents and to provide services not currently available. This issue, if implemented could help to address the Skate park Construction issue and the Parks and Open Spaces Bond issue, listed separately in this report. Revenue Required/Revenue Potential: To be determined Work Completed to date: Two years ago, a proposal was placed before area voters to create and fund the Atfalati Recreation District. The proposal was rejected by voters. No further action has been taken. Area residents have begun discussing this option again. Implementation Action Required: For creation of a new district, cities in the proposed area would have to pass resolutions of support, followed by action by the Washington County Commission to place the proposal on the ballot. An approving vote by residents of the proposed district would be required. For annexation to THPRD, it is not yet known what initiating action would be required. Presumably either cities within the area to be annexed and citizens could petition the THPRD Board for annexation. Timing: Unknown. Discussions in the community are at a very preliminary stage. Advantages: Creation of a new special district would provide additional parks and recreation opportunities to area residents if the measure also creates a sufficient funding base (presumably through a new permanent property tax rate for the new district.) Annexation to THPRD would accomplish the same end, by extending THPRD's existing tax rate to the newly annexed area. THPRD's permanent operating tax rate is $1.3073 per $1,000 of assessed valuation. r Disadvantages: ■ Either option will increase property taxes to area residents • Creation of a new district will multiply the number of overlapping jurisdictions, which could cause some confusion among residents and coordination issues between jurisdictions. ■ Annexation to THPRD could also cause some confusion among residents and coordination issues between jurisdictions. 27 Recommendation: Take no action at this time. Monitor developments to see how this issue develops. 1 g 3 9 u 28 Parks and Open Spaces Acquisition Bond Issue Summary Definition: A Parks and Open Spaces Acquisition Bond is allowed under Oregon Statutes. General Obligation bonds require a citywide vote, and if approved, authorize a special debt service property tax levy. The City could also issue other types of bonds, which do not require voter approval, but would have to identify a source of revenue to be pledged to annual debt service payments. The City currently does not have such a source of revenue. In 1999 the City adopted a 10-year Park System Master Plan. This Park System Master Plan was the result of a comprehensive, collaborative effort between the citizens of Tigard, Tigard staff, and consultants. Tigard's Park System Master Plan is a comprehensive needs assessment and long range plan for meeting the community's parks and recreation needs over a ten-year period. The plan identifies many projects totaling over $21,000,000. The plan examines the impacts of the community's growing demand for services, the effects of related planning efforts, the implications of demographic changes, and the contributions made by the park system in providing relief from high density urban development. Further, the plan sets forth a Capital Improvement Program (CIP) which functions as a framework plan or tentative list of projects for a ten-year period. The CIP is reviewed and updated annually to reflect the changing needs of the community and changes in available funding for financing park capital projects. Decisions regarding the actual expenditure of funds for individual park capital projects are incorporated into the City's annual budget process. Revenue Required/Revenue Potential: The revenue required to accomplish the projects identified for the next 5-years (FY 03-04 thru FY 07-08) is approximately $4,000,000. SDC generated revenue, based on recent actuals, are down over the last few years (approximately $350K per year). As long as the economy remains as it is, it is projected that SDC funds will continue to remain flat during the next'few years. A L successful park and open space bond measure would provide the necessary revenues to acquire and development parks. A tax rate of 27¢ per $1,000 of assessed valuation will raise $1,000,000 toward annual debt service. i Work Completed to date: No work on a Parks and Open Spaces Bond Measure has been done to date. Implementation Action Required: A bond measure must be approved by Council and placed on the ballot for approval by Tigard residents. Timing: To be determined 29 Advantages: • A bond measure would provide the funds necessary to supplement SDC funds for the acquisition and development of parks and open spaces • Easily understandable (known funding source, familiar to voters) Disadvantages: • Tigard residents have been asked to increase taxes on several occasions over the past several years. Specifically, the successful passage of the new Library Bond and the School District Bond. • Although additional bond funds would be advantageous, the projections show limited funding for parks operations and maintenance. The City may not be able to adequately maintain new facilities. Recommendation: Do not consider a bond measure until the City is able to fund operating costs. a. a H _J m 0 W J 30 Long Term Water Supply and Water Rates Issue Summary Definition: Tigard's vision document and Council goals both identify securing a long term water supply as an essential objective of the City. Revenue Required/Revenue Potential: Tigard is currently participating in two efforts to secure its long term water supply: the regionalization of the Bull Run system with a collection of approximately 12 agencies, and joining the Joint Water Commission (JWC) and expanding the Scoggins Dam / Henry Hagg Lake complex. The Bull Run regionalization proposal has developed a range of ownership models and scenarios that all hinge on the City of Portland regionalizing its water supply system and establishing a sale price. This option will cost the City of Tigard between $67 and $88 million dollars over the next 20 years. The JWC proposal hinges on the ability to secure permits and approvals to modify Scoggins Dam. The JWC proposal would cost the City of Tigard between $91 and $93 million dollars over the next 40 years. In summary, Tigard could be faced with making financial commitments with costs that best current estimates average approximately $80 to $90 million dollars over the next 20 to 40 year period. Both of these projects are consistent with and addressed specifically in the City's visioning documents. To help put these numbers in perspective, a $5 dollar per month increase in each monthly water bill in the Tigard Water Service area would raise approximately $1 million dollars annually. Work Completed to date: The City has completed two phases of study on the Bull Run regional process and is awaiting the City of Portland's determination of its interest and a sale price. The JWC project is proceeding through feasibility and environmental impact, and it will be approximately two years until staff can confidently say the project will move ahead. Implementation Action Required: The Intergovernmental Water Board will initially produce a recommendation to the City Council. Following that, the City Council will need to indicate its approval. The cost of the preferred option will be paid for by issuance of Water Revenue bonds, repaid over a 20 to 30 year period. Council would approve issuance of the Water Revenue Bonds by ordinance. Timing: 31 Staff is currently beginning the negotiation process with the JWC staff to allow for a limited partnership arrangement for Tigard, hopefully as early as FY 2003104. This "first increment" of investment could cost up to $12 million dollars. Decisions by Portland on sale price and continuing the regionalization decision are currently on hold, and Portland's schedule is unknown. The next major decision for the Scoggins Dam project is approximately two years away. Advantages: The advantages of securing a permanent supply source are many: control, financial stability, adequate future supply, and quality control top the list. Disadvantages: Cost. Because the Tigard Water Service Area is so late in securing its source the costs are high, and Tigard will not have the benefit of time to spread costs over a long period. Recommendation: Staff will continue to update Council on options and costs, with a future recommendation to authorize issuance of one or more water revenue bond to purchase some portion of future supply as options finalize. L A J 0 32 Urban Services Issue Summary Definition: Services for areas outside existing City limits, but within the City's urban services boundary (other than Bull Mountain). This includes the areas to the south and west of Bull Mountain soon to be brought into the urban growth boundary. Revenue Required/Revenue Potential: Unknown at this point. Work Completed to date: No work has been completed to date on this issue. Implementation Action Required: At some point, the City will be required to provide public services to areas outside the existing City limits but within the City's urban services boundary. This will not occur until after those areas are annexed. No work to identify those potential costs and revenues has been done to date. Public Facilities and Service Plans are needed to assess existing and future needs. Timing: To be determined. Considerable resources will be necessary to complete necessary studies. Advantages: • Improved services to residents of the urban services area, including police patrol, road maintenance, and other city services. • Residents obtain a voice in the governing and direction of the City of Tigard. • Residents of the urban services area would start paying for those services that they currently use, including parks, library, and arterial roads outside of the area. Disadvantages: • The City of Tigard would assume responsibility for capital needs of the areas. These needs could be substantial. • Resident opposition could create hard feelings which could jeopardize other City initiatives. r Recommendation: • Conduct a preliminary, high-level survey to attempt to define major service issues within these areas. 3 • Identify logical areas of opportunity /need. o • Prepare a preliminary timeline for additional work, consistent with existing staff resources and workload. u 33 City Buildings - Maintenance, Repair, Expansion Issue Summary Definition: The Cityowns and operates several buildings, including City Hall, the old Library, the Police Department, the Niche, the Senior Center, the Public Works Building and annex, and Canterbury Water facility. In addition, the City operates the Water Building, which is owned by the Tigard Water District. The City does not have a dedicated source of funding to provide for the maintenance, repair or expansion of these facilities. The City has traditionally set aside General Funds in anticipation of future building needs. Revenue Required/Revenue Potential: Projects identified to date include: • FY03/04 Projects o HVAC Replacement Project for the Senior Center - $50,000 o Seismic Upgrade Project for the Police Dept. - $40,000 o Access Control for Water Building Facility & Canterbury Water Facility security - $90,000 o Space Planning for the Water Building - $30,000 o Construction Drawings & Construction Administration for Old Library/City Hall Remodel - $136,050 o Office Renovations Old Library/City Hall - $500,000 • FY04/05 Projects o Office Renovations Old Library/City Hall - $600,000 • FY05/06 Projects o Water Building Renovations - $500,000 • FY06/07 Projects o Senior Center Seismic Upgrade- $45,000 In addition to identified projects, there is a need for contingency funds for needs that o. may arise during the planning period. The total cost of remodeling and upgrading the old library and City Hall for new uses is estimated to cost $1.16 million. The City currently has a set aside of $1 million for this project. n JJ No set aside exists for other identified needs. J Work Completed to date: A seismic study of city facilities was performed in 2000 to identify the seismic upgrade needs of the facilities. A consultant was hired this fiscal year to identify current and future space needs for the City and to provide a layout of the 34 space usage of the old library and the City Hall based on those needs. This study is near completion. Implementation Action Required: Projects will be identified and approved in the City's Capital Improvement Plan. Annual funding is provided through approval of the City Budget. Timing: It is anticipated that the projects identified will be implemented according to the budget approval of the fiscal years indicated if necessary funding is available. Advantages: • Provides for greater security of facilities • Meets the long term growth needs of the City • Provides for a safe and effective work environment for staff and the public • Improved use of facilities to provide better customer service • Provides for more meeting rooms for public use Disadvantages: • No dedicated funding source. Capital funding need must compete with operating funding needs. • Delaying projects would result in increased cost of projects and increased safety and or security risks Recommendation: • Develop a capital plan for all City facilities, including identifying renewal and replacement and upgrade needs. • Develop a policies and a plan for funding renewal and replacement needs during the annual budget process. • Present recommendations to the City Budget Committee and the City Council for their review and approval. 2 R J i 35 Skate Park Construction Issue Summary Definition: A local Skate Park Task Force recommended to Council that the City provide funding for the design of a potential skate park facility in Tigard. The council approved up to $20,000 to design a facility. The design was approved by Council on November 26, 2002. The design can be built in three phases (15K, 20K & 25K square feet). Currently the Task Force has not been able to find a site for the skate park. Locations at a City park and on School District property have run into strong opposition due primarily because of locations close to neighboring homes. Further, fundraising efforts have not gotten off the ground, having been delayed by the inability to secure a site location. Revenue Required/Revenue Potential: The following revenues are required for construction of a skate park in Tigard. • 15K sq. ft. $642,000, fundraising = $392,000 and $250,000 - funding source undetermined at this time (auxiliary costs such as parking, infrastructure, street improvements, restrooms, etc.) • 20K sq. ft. $769,000, fundraising = $519,000 and $250,000 - funding source undetermined • 25K sq. ft. $877,000, fundraising = $627,000 and $250,000 - funding source undetermined Potential revenues for the construction of the Skate Park and auxiliary costs are 1) dependent on any fundraising efforts by the Task Force, and 2) making a determination as to who will pay for the auxiliary costs estimated at $250,000. With the economy being what it is right now, and into the foreseeable future as well, it will undoubtedly be a daunting task for the Task Force to raise anywhere from $392,000 to $877,000. Further, operational funds are decreasing significantly, making it difficult, if not impossible, to keep up with the expanding maintenance workload. New facilities would only exacerbate this condition. Work Completed to date: A skate park design has been approved by Council. A comprehensive site location process continues. Fundraising has not begun. J Implementation Action Required: If a site is secured, Council, along with the Task a Force leadership must decide how the $250,000 in auxiliary costs, construction drawing and specifications, etc. will be funded. Construction drawings and specifications must be completed. Either the Task Force or the City will seek bids for the construction of the skate park. This also must be determined. 36 Timing: Two major processes remain incomplete at the present time. Securing a site has proven as daunting a task as is a fundraising campaign in the current economy. Reductions in funding for operational costs to adequately cover current and upcoming increases in maintenance, services, and capital outlay, create a heavy burden on the existing staff to handle the parks division workload. Advantages: • Building a skate park now would be well received by the kids in Tigard. • Building now would, more than likely, cost less than building in the future. Disadvantages: • A huge fundraising campaign would be difficult in any economic condition. However, during current economic conditions, the Task Force's fundraising process will not only daunting, but probably unattainable at the present time. • A site has not been secured. • At the present time, and in the foreseeable future, increased operational funds are not available to cover the additional workload created by a new facility of this magnitude. Recommendation: 1) Continue looking for a location for the skate park. 2) Before the City contribute funds (if Council decides to do so) to the construction of the Skate Park, the following issues must be resolved: • A site must be secured • Economic conditions must improve • A decision must be made regarding who will be responsible for the auxiliary costs associated with the construction of the skate park • Long term funding for Parks operations and maintenance must be secured • A successful fundraising campaign must be completed or be well-on-its-way 6 C ~J J 37 i Other Jurisdictions' Issues L9 W J 38 WCCLS Local Option Levy Issue Summary Definition: A countywide Local Option Property Tax Levy for library services is allowed under the Oregon Constitution (Measure 50) to increase the local property tax rate for needed services. It cannot exceed a period longer than 5 years, after which it must be re-approved by voters. Funding from a countywide levy would be distributed to all member libraries through a formula based on circulation and a variety of other factors. Revenue Required/Revenue Potential: It is projected that the tax rate of this levy will be approximately 26¢/$1,000 of assessed valuation. This will raise approximately $10,000,000 per year. Work Completed to Date: A countywide levy for library operational funding was placed before voters in November 2002. The measure failed by approximately 600 votes. A Needs Analysis for the levy was completed in 2002, as was a phone survey. A citizens' group was formed in 2002 to provide information to Washington County voters concerning the benefits of the levy. Significant background information has been compiled concerning this issue. Tigard has been actively working with WCCLS staff and other member libraries to revise and update the existing funding distribution formula. Implementation Action Required: A WCCLS Local Option Property Tax Levy must be approved by the County Board of Commissioners and placed on the ballot for approval by Washington County voters. It may only be voted on at one of the following elections: 1. May, subject to double-majority requirement 2. November of an odd-numbered year, subject to double-majority requirement 3. November of an even-numbered year, subject to simple majority. Timing: If the WCCLS Local Option Levy is approved by county voters in May 2004, the first revenues would be received by the County in November 2004. If the Levy is approved by the voters in November 2004, the first revenues would be received by the County in November 2005. Advantages: • Easily understandable--will be used to restore cuts to library service countywide. • Well-established collection mechanism in place • Broad-based revenue source • Historically, Washington County voters have supported library levies 39 a Disadvantages: • Short-term solution--it expires after 5 years, and then must be renewed by the voters • Competition on the ballot from other jurisdictions requesting voters to approve funding measures • Competition and confusion with the Tigard local option levy likely to be on the ballot in 2004 • Washington County voters have been reluctant to vote for tax levies in the recent past. Successful passage may be related to factors outside government control Recommendation: • Continue to research and explore options to create stable library revenue sources. • Support the information campaign about the WCCLS levy if it is placed before voters in May or November 2004. • Continue to work with Washington County and other WCCLS libraries to develop an equitable formula for distribution of WCCLS revenues. L r M J 6 u J 40 Attachment D Potential Upcoming Ballot Measures in the Region 1-0 Operatitig Levy Vote? "Planned Planned Bond Vote? Election Date ,:Amount Election Date Beaverton None None None None None None Fairview None None None None None None Forest Grove None None Passed Nov. 02 None None None Gresham None None None None None None Possible Park Happy Valley Levy Unknown Unsure None None None Library Bond failed in Nov. 2002. Council to consider when/if to go back on Hillsboro None None None ballot. None None Lake Oswego None None None None None None Metro None None None None None None Milwaukie None None None None None None Unknown, but maybe public Newberg safety Unknown Unknown None None None Oregon City None None None None None None Portland None None None None None None Sherwood None None None None None None Police and general Tigard operations Unknown May/Nov. 04 None None None Troutdale None None None None None None Potential - Potential - Replacements & Still in discussion Maintenance & Capital - Probably $10 to Tualatin Hills Parks & Rec program support Still in discussion Nov. 04 Improvements $20 million Nov. 04 Tualatin Valley Water Dist. None None None None None None Regional Budget Assumptions Survey Page 1 of 2 LEGIBILITY STRIP Attachment D Potential Upcoming Ballot Measures in the Region P leinned Operating Levy Vote?, Planned Bond Vote? Election Date • • Arnount Election Date WCCLS `26¢ per $1,000 May 2004 Washington County Public Safety unknown Nov. 2004 None None None Currently unknown. Police and library Possibly $0.70 to Wilsonville operating $1.00 per $1,000 May or Nov. 2004 None None None Wood Village None None None None None None YamhillCounty None None None None None None Regional Budget Assumptions Survey Page 2 of 2