02/28/1989 - Packet CITY OF TIGARD
` BUDGET COMMITTEE
Agenda for Meeting of February 28' 1989
7:00 p.m. ' Town Hall Conference Room
l . Call to Order and Roll Call .
2. Minutes of January 24' 1989.
3 . Consideration of Proposed 1088/80 Supplemental Budget.
4. Other Business.
5. Adjournment.
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MEMORANDUM
CITY OF TIGARD, OREGON
TO: Budget Committee Members Respond
FROM: Wayne Lowry, Finance Director � t,-"For Your Information
DATE: February 10, 1989 Sign and Return
SUBJECT: Budget Committee Meeting — Supplemental
We have scheduled a Budget Committee meeting for Tuesday, February 28, 1989,
at 7:00 p.m. in the Town Nall Conference Room. The purpose of the meeting
will be to discuss a proposed supplemental budget for the 1988-89 fiscal year
and to forward a recommendation to the City Council to be approved after a
public hearing in March 1989.
As we discussed at our last meeting, the supplemental budget will include fund
balance adjustments, revenue adjustments, and certain expenditure adjustment
requests.
The supplemental budget information will be sent to you on February 21, 1989,
so that you will have the opportunity to review it prior to the meeting.
If you have any questions, please call me at 639-4171, ext. 345.
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CITY 0F TIGARD BUDGET REPORT
Minutes of January 24, 1980
7:00 PM — Town Hall Conference Room
City Hall
Members Present: Judy Christensen, Valerie Johnson, Jou Kasten, John
Schwartz, Jerry Edwards, Floyd Bergmann, Deborah Hinton'
George Burgess
Staff Present: Pat Reilly' Wayne Lowry, Jill Munley' Dun Palmer
The meeting was called to order at 7:05 p.m.
Pat Reilly opened the meeting with an outline of what we hoped to accomplish
in this meuting. A report from John Dethman on the 1087-88 CAFR, an overview
of the City's financial activities through December 1088, and a discussion of
the upcoming budget process ,
John Dethman from Coopers and Lybrand was introduced. He gave a comparative
analysis of several important financial factors in relation to a sample of
cities and led the Committee through the Financial Report. He answered
several questions regarding the special assessment fund and related accounting
standards .
Wayne Lowry, the Finance Director, proceeded with a visual presentation which
included an overview of revenue and expenditure trends through December 1988,
and projections of revenue through the end of the current fiscal year.
The revenue and expenditure discussion ended with the fact that revenue and
expenditure projected changes through year—end would he incorporated into a
supplemental budget to be presented to the Budget Committee in late February
1080.
An analysis of the Bancroft Debt Service Fund was then presented showing the
projected cash flow of the fund.
The following reasons were give for the projected deficiency:
1 . Assessment Delinquencies
2. Early Payoffs
3 . Bancroft Terms
4. Interest Rate Spreads — Bonds vs. Anuuuomuntu
Wayne laid out solutions to the problem as follows :
1 . Specific investment of special assessment cash
2. Proceed with collection/foreclosure
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3 . Call bonds at early redemption date
4. Provide $200,000 over next 4 years from other source
2 Options: l . $50,000/yr over next 4 years from yewer, storm, street funds
2. Debt Service Tax Levy @ 41/1'000
Decision to be made after more analysis at later Budget Committee meeting.
Jerry Edwards encouraged staff to begin collection process through Council as
necessary as soon as possible,
Pat Reilly' City Administrator, then gave his philosophy on the budget
process . The main point being that the proposed budget will be the only
budget submitted to the Committee and that it will be fully supported by Pat
and agreed upon by department heads prior to Budget Committee.
Judy Christensen was elected to remain the Committee Chairperson by a
unanimous vote of those present.
Some discussion followed regarding the Budget Committee' s function after the
budget is approved. Valerie Johnson suggested that non—Council Budget
Committee members receive information each time Cuunoil makes a budgetary
decision.
H budget calendar was distributed and revised.
The next Budget Committee meeting will be late in February to discuss a
supplemental budget. The actual date and time to be announced
.
Meeting adjourned 0 18: 15 p.m.
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MEMORANDUM
CITY OF TIGHRD^ OREGON
TO: Budget Committee Members Respond By
FROM: Wayne Lowry, Finance Director For Your Information
DATE: February 21' 1989 _Sign and Return
SUBJECT: Supplemental Budget
Attached you will find the 1988/89 supplemental budget packet for your review
and consideration at our meeting of February 28, 1089.
The supplemental budget proposal consists of 3 pages. Page 1 summarizes
revenue and fund balance changes by fund. Page 2 details mid—year operating
budget appropriation ruqueoto. Most of these requests are related to
expenditures that were not anticipated in the 1988y80 adopted budget. Page 3
contains summarized appropriation adjustments for capital improvements and
contingency/reserves, resulting from the revenue adjustments.
Following the three supplemental budget pages, you will find detailed
footnotes related to selected revenue and expenditure proposed adjustments to
aid you in your consideration of this proposal .
If you have any questions prior to our meeting on the 28th, please call me at
639-4171, ext, 345.
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Attachments
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City of Tigard
Proposed 1988/89 Supplemental Budget
Schedule of Revenue Adjustments
1988-89 Fund Proposed Total Revised
Adopted Balance Revenue Revenue After
Budget Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
GENERAL FUND
TAXES 2,212,833 0 0 2,212,833
OTHER AGENCIES 932,543 (14,565) (14,565) 917,978
FEES AND CHARGES 707,000 97,000 97,000 804,000
COURT FINES 284,000 (36,000) (36,000) 248,000
FRANCHISE FEES 800,077 116,498 116,498 916,575
USE OF MONEY/PROP 179,000 (25,400) (25,400) 153,600
OTHER REVENUE 161,900 (6,141) (6,141) 155,759
FUND BALANCE 1,362,929 (25,626) 0 (25,626) 1,337,303
----------- ----------- ----------- ----------- -----------
TOTAL GENERAL FUND 6,640,282 (25,626) 131,392 105,766 6,746,048
Note 1
ALL OTHER FUNDS
STATE GAS TAX 899,539 21,073 18,000 39,073 938,612
COUNTY GAS TAX 167,408 19,926 1,000 20,926 188,334
COUNTY ROAD LEVY 63,000 7,414 0 7,414 70,414
STREETS SDC 730,000 276,137 230,000 506,137 1,236,137
PARKS SDC 150,000 64,831 47,500 1121331 262,331
SEWER FUND 1,428,927 (111,487) 175,000 630,513 1,492,440
STORM DRAINAGE FUND 611,942 287,495 (20,000) 267,495 879,437
SPEC ASSMT CIP 2,370,000 (1,615,507) 3,615,507 2,000,000 4,370,000
ROAD BOND CIP FUND 0 0 8,640,500 8,640,500 8,640,500
BANCROFT BOND DEBT 3,785,955 832,421 0 832,421 4,618,376
GENERAL BOND DEBT 257,037 14,426 0 14,426 271,463
FORFEIT-CRIM ACTIVITY 0 45,242 195 45,437 45,437
----------- ----------- ----------- ----------- -----------
TOTAL REVENUE-ALL FUNDS 17,104,090 (183,655) 12,839,094 12,655,439 29,759,529
Page 1
City of Tigard
Proposed 1988/89 Supplemental Budget
Schedule of Expenditure Adjustments
1988/89 Proposed 1988/89
Adopted Expenditure After
Budget Adjustment Adjustment
----------- ----------- -----------
Police (Note 7) 2,266,298
Crim Forf BFB 45,437
Police Retirement 29,900
Support Serices Shelving 9,700
Patrol Car Replacement 12,750
Police Vehilce Collisions 8,360
----------- ----------- -----------
Total Police 2,266,298 106,147 2,372,445
CS-Admin (Note 8) 177,192
Build Remodel 11,325
----------- ----------- -----------
Total CS-Admin 177,192 11,325 188,517
Library (Note 9) 456,923
Stefanoff gift 5,100
Computer Table 1,060
Books/Circulation 5,000
Recreation Program 3,000
----------- ----------- -----------
Total Library 456,923 14,160 471,083
PW-Parks and Grounds (Note 10) 229,900
Emergency Tree Removal 1,200
Cook Park Vandelism 6,092
Stolen Equipment 4,152
Summerlake CIP 5,700
----------- ----------- -----------
Total Parks 229,900 17,144 247,044
City-Wide Non-Dept (Note 11) 741,515
Labor Negotiations 9,500
Cable Coverage 3,000
----------- ----------- -----------
Total City Wide Support 741,515 12,500 754,015
------------
Total Operating Budget Adjustments ----161,276-
Page 2
City of Tigard
Proposed 1988/89 Supplemental Budget
Schedule of Expenditure Adjustments
CIP and Contingency/Reserves
1988/89 Proposed 1988/89
Adopted Expenditure After
Budget Adjustment Adjustment
----------- ----------- -----------
CIP-General (Note 12)
Civic Center Exp 450,000 (430,000) 20,000
Senior Center-Improvement 106,893 84,107 191,000
Park Land Acq 117,500 20,000 137,500
Parking Lot Landscape 0 16,350 • 16,350
Library 0 8,100 8,100
Civic Center misc repairs 0 21,739 21,739
Chamber Repairs 0 2,265 2,265
----------- ----------- -----------
Total General CIP 674,393 (277,439) 396,954
CIP-Wastewater
Sewer 300,000 63,513 363,513
Storm Drain 173,335 267,495 440,830
----------- ----------- -----------
Total Wastewater CIP 473,335 331,008 804,343
CIP-Streets
State Gas Tax 61,700 29,073 90,773
County Gas Tax 5,301 15,926 21,227
County Road Levy 63,000 7,414 70,414
Streets SDC 605,000 456,137 1,061,137
----------- ----------- -----------
Total Streets CIP 735,001 508,550 1,243,551
CIP-Road Bond 0 8,640,500 8,640,500
CIP-Parks 140,000 112,331 252,331
CIP-LID (Note 13) 2,370,000 2,000,000 4,370,000
----------- ----------- -----------
Total CIP 4,392,729 11,314,950 15,707,679
Contingency & Reserves (Note 14)
Equip Replace Reserve 45,000 0 45,000
General Fund Oper 73,543 50,000 123,543
Syr Plan Reserve 722,997 227,102 950,099
Sewer 156,235 (4,977) 151,258
Storm Drain 19,360 (1,856) 17,504
State Gas Tax (1,529) 7,632 6,103
County Gas Tax 1,792 4,464 6,256
Streets SDC 50,054 50,000 100,054
Parks SDC 10,000 0 10,000
Bond Debt 0 14,426 14,426
Bancroft-Rese For Future 0 832,421 832,421
----------- ----------- -----------
Total Contingency 1,077,452 1,179,212 2,256,664
Total CIP & Contingency 5,470,181 12,494,162 17,964,343
Page 3
NOTES TO SUPPLEMENTAL BUDGE
l
General Fund proposed revenue adjustments are detailed as follows :
Projected Proposed
Other Agencies
CDBG Senior Center Grant $ 86'212 $ 30'000 $ (56'213)
Cigarette Tax 87'500 89' 148 1'648
Hotel/Motel Tax 158'008 190'000 _40>/000
Total Other Agencies (14'505)
Fees and Charges
Business Tax 145'000 $ 130'000 (15'000)
Building Permits 200'000 250'000 50'000
Plan Check Fees 125,000 175'000 50'000
Engineering Permits 80,000 65'000 (15'O00)
Planning Fees 28,000 53'000 25'080
Misc. Fees and Charges 15'000 17'000 2,000
Total Fees and Charges 97^000
Court Revenue
Fines 235,000 215,000 (20'080)
Court Costs Revenue 36,000 20.000 {l/6/{)9(1
Total Court Revenue (36,000)
Franchise Fees
Electric 520'000 550'000 30,000
Gas 120^000 142,000 22,008
Telephone 57^077 83,575 26,408
Garbage 05^000 02'000 27^000
Cable TV 38'800 49,000 _11,000,
Total Franchise Fees 110,408
Use of Money/Property
Interest 175'000 150,000 (25,000)
Rent 4'000 8'080 {400}
Total Use of Money/Property (25'408)
Other Revenue 161.900 155'759 (0' 141)
Fund Balance 1'302'920 1'387'303 _(25,626).
Total General Fund Proposed Revenue Adjustments 105^760
2. SDC revenues are projected to be substantially greater than anticipated due to
a higher than expected level of development activity particularly in the area
of commercial and multi—family construction.
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3 . The 1988/89 adopted budget assumed that proceeds from interim financing on both
Dartmouth and 135th LIDS would have been received prior to July 1, 1988. Due
to delays in the Dartmouth project, financing has not yet been obtained,
therefore, reducing beginning fund balance from the original estimate.
Financing for Dartmouth and the new proposed PacTrust: LID may be obtained yet
this fiscal year, therefore, the revenue estimate is increased .
4. The voter approved general obligation bonds for• road improvements are
tentatively scheduled to be sold in April 1989. The proceeds of the sale and
interest earnings through June 30, 1989, will be recorded in this new fund.
5. The fund balance adjustment is a result of the split of the special assessments
fund into a CIP fund and debt ser•vic.e fund . The adopted revenue estimate
assumed the sale of Bancroft Bonds for both Dartmouth and 135th LIDS in June of
1989.
6. Forfeitures from criminal activity of approximately $50,000 were received in
June of 1988. Ordinance 87-60 dated November 2, 1987, specifies that the
proceeds of such forfeitures shall be used by the City of Tigard Police for law
enforcement purposes . About $5,000 was spent in the prior fiscal year with the
balance carried forward into 1988/89 as beginning fund balance.
7. Police Department
Criminal Forfeitures — Revenue from this source is to be used for law
enforcement purposes . Beginning fund balance was riot included in the adopted
budget, and therefore, must be appropriated in the Police portion of the
Community Services program. (See note 6. )
Retirement -- The retirement plan for sworn Police personnel consists of both a
defined contribution and a defined benefit plan. The defined benefit plan
payment is made annually based upon an actuarial evaluation of the plan and its
participants . The required contribution by the City for the defined benefit
was greater than anticipated in the adopted budget.
Support Services Shelving — Due to limited space in the Police area, movable,
flexible shelving is being requested for use in the Police Evidence Room. The
Evidence Room is currently overflowing with material from criminal activity
that must be logged, sorted, and stored under strict rules and regulations that
provide security, accountability, and controlled accessibility. Due to the
growing volume of evidence materials, such shelving will provide a more
efficient use of the limited space, and help ensure the timely processing of-
criminal cases.
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Patrol Car Replacement — The Patrol Division currently has nine patrol cars . A
1981 and a 1983 Malibu with 103,375 and 105,303 miles respectively, are being
`we replaced out of the current adopted budget. The Police Department requests
this appropriation to replace the last 1982 Malibu in the fleet, which by
June 30, 1989, will have an estimated 10P,000 miles on it. This vehicle
currently has 94,000 miles. k
Vehicle Collisions --- Several police vehicles have been involved in collisions
and have been repaired . In all instances, insurance proceeds less deductibles
have been received . Budgetarily, the Council or Budget Committee must take
action to appropriate the insurance proceeds, therefore, this amount has been
included in this supplemental budget:.
8. Community Services — Administration
Building Remodel. — Remodel work in the Community Services area was anticipated
to be completed in June 1988, however, was riot completed and paid for until
July 1988. This carryover must be reappropri.ated in the current year.
9. Library
Gift — The Library received a gift of $5,000 last year. The funds were placed
into a special deposit account pending direction from the Library. The Library
now wishes to spend the gifted funds, but must first recognize the revenue and
appropriate it in this supplemental budget.
liiwe Books/Circulation -- The Library Board has requested an additional -appropriation
of $5,000 for the purchase of library books.
Recreation Program - $3,000 is requested to fund a pilot recreation program
this spring.
Computer Table -- $1,060 is requested to purchase computer tables for the
library computer equipment.
10, Parks and Grounds
Emergency Tree Removal — Unanticipated expenditures for the emergency removal
of damaged trees from City greenways have been incurred. Parks has requested
additional appropriations to cover these expenditures.
Vandalism/Stolen Equipment — Repairs to vandalized property as well as
replacement of stolen equipment have occurred. Insurance proceeds were
received to cover the stolen equipment. Budgetarily, insurance proceeds must
be appropriated by the Budget Committee or governing body.
Page 6
Summerlake CIP -•- Turf renovation in Summerlake Park was completed in-•-house
rather than through a contractual arrangement. The adopted budget did not
anticipate this, therefore, unanticipated expenditures have been incurred in
` the Parks program and funds should be appropriated to cover them.
11. . City-.-wide Non department
Labor Negotiations - Additional amounts requested ar•e as follows:
TPOA Arbitrator $1,500
TPOA Negotiator 5,000
OPEU Negotiator 3,_000
TotalQQ
$5,000 in the adopted budget has already been spent on TPOA negotiations .
Cable TV Coverage - In order to continue cable coverage of Council meetings, an
additional $3,000 must be appropriated.
12. CIP - General
Civic Center Expansion - The expansion of the Tigard Civic Center has been
postponed into future years, therefore, the majority of the the appropriation
is not: necessary this fiscal year.
The Senior Center improvement proposal has been expanded. The CDBG grant
remains at $83,000, therefore, any additional expenditures must be funded
through the General Fund.
Park Land Acquisitions -- One additional piece of land in the Summerlake area
will be acquired in March 1984. Due to projected increases in Parks SDC
revenue, only $20,000 of additional General Fund appropriation is needed
bringing the General Fund' s participation in Park Land Acquisitions to
$137,500. This amount will be paid back over the next two years by the Parks
SDC fund.
Parking Lot Landscape - The estimated appropriation necessary to landscape the
new parking lot and the circle in front of the Library is $16,350.
Library, City Hall, and Chamber Repairs/Improvements - Such repairs and
improvements have been identified totaling $32, 104. The following items are
included in this request:
Library
Power Vent Installed, Library Study Room $ 1,800
Install New lighting in Library Center Area 6,300
Total $ 8, 100
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City Hall
Install 2 Wall Fixtures — Court Yard 935
Seal Exterior Brink — Silane 2,476
Power Wash Entire Building 4' 128
Install Overflows and Downspouts on Roof 2' 700
Replace Public Works Ceiling 500
City Hall Interior Improvements 7'000
Civic Center Sidewalk Improvements _4,000
Total . $21'739
Chamber Building
Window Replacement $ 2'265
18 . CIP — LID — $2'000,000 is the estimated cost of the proposed PaoTruyt local
improvement district to be located on 72nd Street between Bonita, I-5^ and
Booney Ferry Road.
14. Conti ngency/Ruserves — Contingency adjustments are the. result of the revenue
and expenditures changes requested in this supplemental budget proposal. Note
that the General Fund operating contingency in being increased to what it was
in the original adopted budget and that the net CIP—General decrease in
appropriation is being returned to the 5—YR Plan reserve.
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