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05/23/1997 - Minutes City of Tigard, Oregon Budget Committee Meeting Minutes May 23, 1997 Members Present: George Burgess, Craig Dirksen, Gene Farnstrom, Paul Hunt, Brian Moore, Jim Nicoli, Joyce Patton, Bob Rohlf and Max Williams. Members Absent: Ken Scheckla Staff Present: Wayne Lowry, Bill Monahan, and Michelle Wareing. Guests Present: Kathy Davis, Library Director; Paul deBruyn,Network Services Director; Gus Duenas, City Engineer; Jim Hendryx, Community Development Director; Chief Ron Goodpaster, Police; and Ed Wegner, Public Works Director. Call to Order: The meeting was called to order at 6:35pm by Joyce Patton, Committee Chair. The record shows that all Committee members except Ken Scheckla were present. Mayor Jim Nicoli arrived at 6:45pm. Minutes: The May 19, 1997 minutes were approved as written. MSP Budget Adjustment Proposals: Bill Monahan presented the proposed budget adjustments. A packet detailing the adjustments was distributed at the beginning of the meeting. The Operating Budget was originally budgeted at $18,632,059. With the proposed adjustments, the Operating Budget would be $18,989,045 for fiscal year 1997/98. Bill stated that the breakdown of the departments' proposed budget adjustments were located on pages 3 - 9 of the distributed packet. The proposed Police adjustments are described on page 3. The adjustments take into account the staffing concerns expressed by the Committee and the passage of M50. Bill proposed to the Committee for their consideration the following Police adjustments. Three senior officers will be retiring in fiscal year 1997/98. It has been requested that three new officers be hired early to replace the retiring officers. The cost for the overlap of staff will be $42,300. Under the 5 Year Plan, two new officer position were supposed to be added in 1997/98. The 1997/98 Budget draft cut these positions because of M47. Since M50 passed, it has been requested that the two positions be put back into the Budget. The total cost is $119,484 if the positions are filled on July 1,1997. The final adjustment is a correction of an error in the draft Budget. The draft Budget had Special Department Expense budgeted for$0. Actually,the figure should be $69,276. The total cost for all the adjustments is $231,060. 1 The second proposal is for the Library and is located on pages 4 and 5. Bill stated that the adjustments were not recommended by the Committee,but he thought the Library Budget should be reviewed since M50 passed. Bill stated that to comply with the direction of the 5 Year Plan and fulfill voters expectations, about $30,000 needed to be put back into the Library Budget. The proposed Library adjustments total $29,376. The adjustments includes increases to current staff hours at a cost of$25,376,but doesn't include any new positions. New shelving has been requested at a cost of$4,000. The third adjustment proposed is for$54,500 to add a new Technician position to the Network Services Division. The position was cut from the Budget because of M47. Paul deBruyn, Network Services Director, gave a presentation on May 5,1997 to the Budget Committee and at that time, the Committee agreed there was a need for additional staffing. Bill stated that a list of other proposed adjustments were located on pages 8 and 9. An increase of$50 to Social Agency/Art and Events funding was proposed. Bill stated that the increase was due to an earlier typographical error. The City's Engineering department had recommended starting a wood light pole replacement program in 1996/97. The program was created to replace old, deteriorating wood light poles with new fiberglass ones. It has been determined that it will be cheaper to replace the poles over ten years than to wait for them to fall over and cause damage. It has been proposed that the $42,000 that was appropriated for 1996/97, but not spent,be carried over to the 1997/98 Budget. Other proposed adjustments are: an increase of$200,000 in the General Fund contingency, $166,800 for the 91st Avenue sidewalk grant project(Gen CIP) and$102,980 for Water Quality/Quantity CIP (USA storm SDC increase). The total increase to the Operating Budget to account for all the proposed adjustments is $357,000 for a new Operating Budget of $18,989,045. With the passage of M50 and some of the expense adjustments, several of the revenue estimates need to be adjusted. The General Fund needs to be increased by$831,000 to reflect the anticipated increase in tax revenues because of M50. The City will be taking on some of the responsibilities that were provided by the Unified Sewerage Agency in the Urban Services area which will bring in an additional $13,950 in revenues for the Urban Service Fund. The City will also be responsible for some of the water quality/quantity as part of the Urban Services agreement which correlates to a$102,980 increase. State Gas Tax beginning fund balance will be increased by$42,000 to account for the money carried forward for the light pole replacement. Bill concluded his presentation. Bill stated that with the passage of M50,the City Council will be discussing when the City should review its space needs. Bill stated that if the Council decides to put together a Bond measure a consultant will need to be hired. Bill stated that the Budget Committee could increase Contractual Services expense by$10,000 to cover the cost of the consultant. Bill reported that 2 Paul Hunt had requested that there be enough money to cover such an expense. However, Bill stated that there is already sufficient funds in Contractual Services to pay a consultant. Bill stated that he and Wayne Lowry had decided that adjustments would not be made to Materials and Services in each department's budget even though M50 passed. Bill reported that dramatic cuts had been made to account for M47 tax decreases,but he thought it would be best for the City to try to live with the cuts. Bill stated that adjustments could be made during the year if necessary. Wayne Lowry clarified the $50 increase to Social Agency/Art and Events fund. Wayne stated that the appropriation budget approved by the Budget Committee exceeded the budgeted amount of$83,700 by $50. The $50 must be added to meet the amount approved by the Committee. Wayne stated that increase of$102,980 to Water Quality/Quantity CIP is not related to Urban Services. The Unified Sewerage Agency is increasing their SDC for storm drainage. The City is recognizing the increase in revenues by putting the additional funds into capital improvement programs. Wayne stated that the City was awarded a grant to put sidewalks in on 91 st avenue. The revenue received was put into the 1997/98 budget, however, appropriation of the funds was left out. The increase of$166,800 to the General CIP accounts for this error. Wayne stated that the increase of$831,000 in tax revenues should not be viewed as an actual increase. The City is still losing tax revenues under M50,but not as much as was budgeted under M47. Brian Moore asked if more money could be given to Social Agencies since M50 passed? Wayne responded that the Budget Committee could increase the amount given. However, Wayne and Bill Monahan recommended that adjustments not be made to Material and Services expenses which is the line item that Social Agency contributions fall under. Bill stated that tax revenue figures are just estimates. Bill advised the Committee to wait and see how much the City will actually receive in tax revenues under M50. Paul Hunt asked how will M50 affect the Ending Fund balance (EFB). Will it have more money or less at the end of the 5 Year Plan? Wayne responded that the EFB will be greater than previously projected. Wayne stated that he did some recalculation of the Budget to determine if the City could provide everything promised in the 5 Year Plan under M50. Wayne stated that he put everything back into the Budget that was cut in response to M47 except the reductions in materials. In year 2001 which is the end of the 5 Year Plan, the EFB is projected to be $2.264 million. In year 2002, the EFB will be $1.3 million. Wayne reported that the City can provide almost everything that was proposed in the original 5 Year Plan. Bob Rohlf asked if Wayne's projections included adding back in the staff positions that were cut from the Plan? Wayne responded that his calculations did include the cut staff positions and the police car budget that was taken out in 1999. 3 Bill Monahan noted that the Police adjustments are what the Police Department requested. Chief Ron Goodpaster stated that his department did a lot of research to prepare accurate figures for the tax base increase that was voted on in 1994. The Chief stated that the Police Department was counting on the having the new positions to provide the service that was guaranteed to the public when they voted on the tax increase. The Chief stated that the Police will be able to meet its work load requirements and goals with the addition of the proposed adjustments. Joyce Patton asked if the proposed adjustments will make it possible for the drug education program and other community services to continue? The Chief responded that the proposed adjustments will make it possible to continue those programs. Gene Farnstrom asked if the police officer positions that were cut from the Budget because of M47 were going to be put back into the Budget? Wayne stated that the two proposed positions are the two positions that were cut. Wayne stated that the M47 Budget had not budgeted for any new officer positions in 1997/98. By adding the two proposed positions, the Police Department would be back on track in complying with the original 5 Year Plan. Joyce Patton stated that the adjustment proposal also includes transition time for retiring officers and new officers to replace them. The Chief stated that the transition time is very important because it takes 8 to 10 months to get a new officer on the street working. The Chief reported that the Police Academy is doubling the amount of training hours a new officer must complete. The Chief stated that with the new training hours, it will take 10 to 12 months before a new officer can work the streets. Bill Monahan stated that the Police Department is trying a new hiring strategy. Instead of hiring officers throughout the year, it is being proposed that all new officers be hired July 1, 1997. If there is a sufficient pool of applicants, the Police Department might hire six to seven officers. This strategy might use training revenues more efficiently. However, it might put a strain on the training process. Bill stated that if this strategy proves effective, it could be instituted in future budgets. The Chief stated that this new strategy will be very beneficial to the Police Department. The Chief reported that 21 officers, not including the three officers who will retire in 1997/98, will be eligible for retirement in the next six to seven years. The Department is getting younger and staff requires more training and supervision. By hiring new officers earlier, the Police will be able to provide consistent service and will not have to pull officers from special assignments to cover patrol during transition times. Brian Moore asked if there would be any changes to the Parks budget now that M50 passed. Would there be more money for mowing? Bill Monahan stated that no changes would be made to the Parks budget. Ed Wegner, Public Works Director, stated that under the current budget that Parks Department will be able to hire a full-time Parks Supervisor. By adding the position, Parks will be able to put another position back into the fields. Jeff Munro, a Senior Utility Worker,has been acting 4 Parks Supervisor for the last nine months. Jeff will be returning to his regular duties which will ease the workload. This will help the park mowing situation. Ed stated that he, Bill Monahan and John Roy checked out the mowing situation at Englewood Park last week. Ed stated that situation was not as bad as portrayed. Ed stated that the area between the walkways and the residents yards has grown up. The residents want the grass manicured up to their fences which is not currently being done. Some of the residents have mowed pathways from their backyards to the walkways. Ed stated that the Parks Department has agreed to keep those pathways up. Ed stated that he sent a letter to Mr. Hanson, Englewood resident, stating that Englewood Park would be mowed about every four to six weeks. The mowing schedule and areas would be reevaluated at the end of the year. Ed stated that decreases to walkway mowing was happening at all the parks. Bill Monahan stated that the new Parks Supervisor will be responsible for reviewing all the parks. The Parks Supervisor will analyze each park and determine its needs. The Supervisor will develop a mowing, fertilizing, and planting strategy for each park. Ed noted that the only Englewood resident he had heard from was Mr. Hanson. Ed stated that Englewood Park was mowed the day following Mr. Hanson's appearance at Budget Committee (May 12, 1997). Bob Rohlf asked Wayne Lowry, if Wayne new of any opposition or challenges to M50? Wayne stated that he does not know of any challenges. Wayne noted that M50 has not yet been adopted into the legislation, so there is a possibility that things could change. Joyce Patton reminded the Committee that Budget motions still needed to be approved. She asked the Committee if they had anymore questions before she opened the meeting to the public. George Burgess asked Wayne, now that the City was back on the 5 Year Plan. Are the positions that were frozen going to be unfrozen and filled? Wayne stated that only the 1996/97 positions were frozen and that they would be filled. Wayne noted that the future positions, that were cut under M47, are being put back into the Budget. Brian Moore noted that the 1997/98 Budget is still a status quo budget. The adjustments and additions of positions should not be viewed as an increase in service. The City will be maintaining its current level of service and is not adding anything new. Bill Monahan stated that every department made cuts in materials and services. There is a potential in the future that service levels will decrease. Each department will be monitored closely to determine how the cuts affect its service level. Wayne Lowry stated that if the Urban Services program was taken out of the 1997/98 Budget, there is about a 0% increase in the Operating Budget over the current year budget(1996/97). 5 'mow► Bill Monahan stated that the 1997/98 Budget does not take into account inflation, increases in population or increased costs for materials and services. The 1997/98 Budget is a minimum budget and should not be viewed as a"business as usual"budget. Craig Dirksen stated that he was pleased that the City had not gone back into the Budget and made changes now that M50 passed. Craig stated that this decision should send a message to the citizens that the City is trying to run on a lean budget. Joyce Patton stated that she was glad that the City was taking a conservative approach in its budgeting. No one knows how M50 will actually affect revenues and reductions right now. It is better that the City keep its proposed budget and make adjustments during the year if necessary. Paul Hunt asked Wayne Lowry,how the tax base rate will be computed under M50 in 1997/98 and the future? Will tax revenues stay the same or will there be more money? Wayne responded that once the rate is computed, it will stay the same forever. For 1997/98, the City's rate will be computed by the assessor. The City's 1997/98 levy authority or full tax base will be divided by the rollbacked and reduced assessed value. This figure will be the 1997/98 assessed value for all the properties in Tigard. Wayne stated that he had calculated this figure to be about $2.30. This figure will be applied to all future assessed value. Joyce Patton opened the Budget Committee meeting up to public questions and comments. Kari Jensen, a Tigard Times reporter, stated that she had spoken to a resident of the Englewood Park area. The resident had told her that three or four years ago, the City trimmed lower tree branches because of a crime situation. The resident was concerned that now that the grass was not being trimmed,people could hide in it and view the residents' homes. Kari asked either Ed Wegner or Chief Goodpaster if they were aware of the tree trimming program. Both Ed and the Chief stated that they knew nothing about the tree trimming. Ed stated that the grass at Englewood Park is only about a foot high and that it would be difficult for anyone to hide in the grass. Ed stated that there were not that many trees in the park,but if Kari had the resident's address he would check out the situation. Joyce Patton closed the Budget Committee Meeting to public questions and comments Gene Farnstrom asked which Department was going to oversee the proposed Network Services Technician position? Bill Monahan responded that Network Services is a division in the City Administration Department. The new position will be added to the Network Services division and will supervised by Paul deBruyn,Network Services Director. The Network Services Division provides central support for the City and works with individual departments. Bill stated that in the future, the positions in individual departments that provide software support to the departments will be reviewed. The City will need to determine if those positions should be taken out and placed in Network Services to provide central and network support for the City. Bill stated that in 1994 a study of the City's network was done by Beckley and Associates. The City needs to review this study and determine what its future needs are. 6 Gene Farnstrom stated that the City needs to revisit the network issues quickly since technology is changing. He asked if the City can make changes with the current resources? Paul deBruyn responded that the proposed Budget could not support additional positions. Paul stated that the 1994 study did not address staffing issues. The study evaluated the City's equipment and software needs to improve the network as a whole. Paul stated that he developed a five year plan that showed the increase in computer users, staff and periodic replacement of equipment. Gene Farnstrom stated that the Network division needs to be worked on. He suggested that a consultant be hired to determine future staffing needs and the reassignment of positions to be more efficient. Bill Monahan responded that the City does not need to hire a consultant to review staffing needs. Bill stated that Paul deBruyn is already evaluating his department's staffing needs. Bill stated that the City staff will discuss its computer needs and how the City should meet them. Staff will determine when to make changes and how to move forward with its decisions. Bob Rohlf suggested that the City communicate regularly with its citizens about taxes and how their money is spent. Bob stated that Cityscape could be used to inform voters on how tax revenue is received and how it is spent. Citizens need to know how measures like M47 affect schools,police and fire services. Joyce Patton stated that she and Max Williams had been discussing tactics to be used in going to voters in the future. The City will not have the ability to go to the voters to fund five year plans. Tactics need to be developed soon, so the City does not have to go into another crisis mode. Citizens need to be educated about what the City is doing to deal with future funding issues. Max Williams stated that citizens need to be told now about what is going to happen to funding in five years. Citizens need to know how the change in the taxing mechanism will affect the City and the services it provides. Wayne Lowry stated that the City would not be worried about future taxing mechanisms if M47 had not passed. However, under M47 and now M50, the City is precluded from asking for taxbase increases. The $2.30 rate for assessed value will remain the same forever. The City's only option is to do short-term levies outside the tax rate. The City will no longer be able to fund five year plans like it did in the past. City staff has already begun exploring other funding alternatives. Bob Rohlf stated that he would like the City to provide an educational program for its citizens about taxbases and cuts. Bob wants the citizens prepared for future Sizemore initiatives and how the initiatives will affect services provided by the City. Bill Monahan stated that although the majority of citizens voted for M47, the citizens of Tigard have always passed the City's request for tax base increases. The City can educate its citizens, but not the entire State. Bill stated that the City already uses Cityscape and its Visioning Committees to educate. Bill stated the City now needs to understand M50 and disseminate that information to public. Bill noted that the City uses every opportunity to educated the citizenry. 7 Bob Rohlf stated that past attempts to educated must not be working since M47 passed. Citizens need to be told how their money is being spent. Bill Monahan responded that the citizens do understand how the money is spent,but that they still do not understand how the City gets the money from property taxes. Bob stated that if the City starts educating now, citizens will be prepared when the City requests more money in the future. Brian Moore stated that the City Council is also trying to be more proactive in educating and communicating with the voters. Bob Rohlf stated that he would like to congratulate the City staff for doing an excellent job on the Budget under the current circumstances. Joyce Patton stated if there were no more questions or issues of discussion, the Committee need to vote on the motions. Motion#1: Motion to approve the tax levies for the taxbase and for debt service as presented on page 8 of the proposed budget. These amounts are$6,891,858 for the taxbase and$1,652,289 for debt service. Craig Dirksen asked if the figures should be changed since they reflected the numbers under M47 instead of M50? Wayne Lowry responded that figures should not be changed. The figures actually reflect the City's full taxing authority, not revenues to be received. The motion was approved. MSP Motion#2: Motion to approve the Summary of Proposed adjustments presented tonight. The motion was approved. MSP Motion#3: Motion to approve the proposed budget as amended by the Budget Committee. The motion was approved. MSP Other Business: Wayne Lowry noted that Bill Sizemore has submitted three measures to the State Attorney's Office. The first measure is proposing to get rid of Metro. The second measure allows private businesses to compete for government services. The third measure puts a limit on State revenue collection and spending. Tax rate increases will be based on inflation and population growth. However, signatures have not been collected yet. Wayne stated that the City will be watching these initiatives. Paul Hunt stated that it was unfortunate that more was not done to educate the voters about M47. With these new initiatives coming up, citizens need to know how it will affect the City and its services. 8 rrr ^. Bill Monahan responded that City staff is very limited on what it can do and say about measures. Bill stated that elected officials and committee members are not as limited and can go to the voters regarding tax measures. George Fernstrom wanted to formally recognize the staff for doing such a tremendous job on the Budget under the circumstances. All the Committee members agreed. Bill Monahan responded that he would pass the Committee's comments on to the staff. Joyce Patton thanked all the Committee members for their work. The Budget Committee was adjourned at 7:30pm. 9