04/05/1999 - Minutes City of Tigard, Oregon
Budget Committee Orientation Meeting
Monday, April 5, 1999 7p. to 8:30
Minutes
Members present: George Burgess, Gene Farnstrom, Mike Benner, Darlene
Stevens, Paul Hunt, Brian Moore, Ken Scheckla, Jim Nicoli.
Staff Present: Wayne Lowry, Bill Monahan, Cyndi Turner
The meeting began at 7:15 pm.
The committee began by discussing the budget calendar. After some discussion,
it was determined that the budget committee meetings will be held on Mondays
at 6:30 with a light dinner provided at 6:00. Meetings will be Monday, May 3,
May 10, May 17 and May 24. All meetings will be held at the Water Auditorium.
Wayne discussed the budget process and described the duties of the budget
committee as set forth in local budget law. He also called the committee
member's attention to several pages out of the Department of Revenues budget
manual describing the Budget committee role.
Wayne then reviewed the current budget document and gave an overview of the
current Long Term financial plan. Wayne also talked briefly about the current
financial status of the City and handed out the most recent audit report. Wayne
noted that most revenues are coming in as expected except development
revenues which are lower than anticipated.
The next meeting of the budget committee is set for Monday, May 3 at 6:30 with
dinner provided at 6:00.
The meeting was adjourned at 8:30.
City of Tigard, Oregon
1999/00 Proposed Budget
Budget Message
Honorable Mayor Nicoli, members of the City Council and Citizen members of the Budget
Committee, I hereby submit for your consideration the 1999/00 Proposed Budget for the
City of Tigard.
The City of Tigard has been fiscally prudent on a consistent basis throughout the past
decade and as a result finds itself in a strong fiscal position. The City continues to operate
within the guidelines of the financial plan, which was established in 1995. The Plan
projects City revenues and expenditures through 2006 for all funds and activities. The
financial plan provides for the addition of 53 positions through 2006 allowing the City to
continue quality services to the growing community.
Major Issues
Several major issues influenced the preparation of this budget. The largest issue facing
the City at this time and for the next several years is water supply. A multi-year process
has culminated in the decision to tap the Willamette River for drinking water. The City will
continue working with its westside partners to develop this project. The City Council
intends to issue revenue bonds in the near future to fund Tigard's share of design and
construction. This budget proposal includes appropriations of$4,000,000 to begin work on
this project. Tigard's share of the total cost of the construction project is $42,000,000.
As you know, the City currently purchases the majority of its water supply from the City of
Portland Water Bureau through a contract that extends through 2007. Due to high water
usage during several periods last summer and fall, the City will be penalized under
Portland's contract for "peaking". The penalty increased our water cost from Portland from
$.65 per unit to $1.22 per unit effective 7/1/99. This increase results in increased water
costs estimated at $1,100,000 for 1999/00. The City Council along with the
Intergovernmental Water Board are considering a water rate increase of$.50 per unit. The
increased cost of water has been included in the budget proposal.
The City Engineer has identified a list of potential road improvements. A transportation
advisory committee is currently evaluating needed road improvements. After completing
it's work the Committee will make a recommendation prioritizing the projects to the City
Council. The Council will then consider placing a measure on the November 2000 ballot
for bonds to fund the selected projects.
The City Council recently received the Park System Master Plan, which identifies over
$20,000,000 in park improvements throughout the City. Over the next year, the Council
will discuss how to fund the park improvements. A related issue is the progress of the
Atfalati Recreation District Group. They are exploring the feasibility of establishing a Park
district that would cover an area which could include Tigard, Tualatin, Sherwood and
Durham areas.
Technology will always be a major issue for the City of Tigard. The City's computer
network and related hardware and applications provide employees and citizens with
greater access to information and a higher level of service. We are following through on a
regular schedule of equipment replacement to ensure that equipment does not become
outdated or unproductive given the industry's constantly changing technology.
The City has worked hard to identify and correct all potential year 2000 issues with
equipment and software. The year 2000 plan has been staffed by executive staff leaders
and has involved many staff throughout all levels of the organization.
1999/00 Budget Proposal
The 1999/00 budget proposal has been designed to ensure the continued provision of
quality services to the community while at the same time recognize those areas of City
operations that need more resources. Department Heads were instructed to budget in
accordance with the financial plan guidelines. Although there were some exceptions in
certain budget units, the overall proposed budget is below the financial plan limit.
The total proposed operating budget of $24,254,240 represents an increase of 12.6% over
the 1998/99 Adopted Operating Budget. Without the water cost increase noted above, the
increase in the operating budget would have been 7.5%. The financial plan limit for the
total operating budget was $24,402,691, thus the Proposed Operating Budget is below our
financial plan limit.
The Proposal includes 9.7 additional FTE's. 3.0 new positions are slated for the Police
department, 2.2 for the Library, 6.0 for Public Works, 1.0 for Engineering and 1.5 for
Administration. Offsetting these new positions is a reduction of 4.0 positions from the
building inspection unit.
The proposal includes $1,333,790 in capital equipment and $19,796,800 in capital
improvements. The capital equipment proposal includes replacement of 7 Police vehicles;
2 new vehicles and a Rotary deck mower for the Parks Division; replacement of an old
Line Cleaning truck for the Sewer and Storm Divisions; ADA property improvements; and
replacement of old Backhoe for the Water Division.
The 1999/00 budget proposal was designed to provide continued quality services and to
address a variety of significant issues as follows:
Police
The budget proposal includes the addition of three Police positions. One officer and one
records clerk are included in the financial plan and an additional officer being added is
funded by a grant. Also included are the continuation off programs such as DARE,
GREAT and Peer Court. Funds have also been included to purchase two fully trained
Police canines to compliment the force.
Library
Library funding from Washington County is estimated to increase by 6.7%. Washington
County continues to honor its commitment to fund the Library system even in the face of
Measure 50 which generally reduced property taxes. The Library, still responding to
growth, will add just over two FTE's bringing their staffing level up to 29.7 FTE.
Technology continues to enhance the access to information provided to Library patrons.
The Proposed Budget includes funds to continue renewing and adding to the collection of
online databases and computer oriented materials, as well as customary Library collection.
Public Works
Although the focus of Public Works has been the water supply issue, many other issues
related to the maintenance of City infrastructure are addressed in the budget proposal. Six
new positions have been included in the budget proposal for Public Works, along with
related equipment purchases and replacements.
The Parks program continues to grow as more land is added to the system. One new
position is being proposed for park maintenance. In addition, several large pieces of
equipment are in the parks budget to enhance or maintain the maintenance of park and
greenspace property. Equipment includes two replacement vehicles, a new rotary deck
mower and a multi-use maintenance vehicle to be used at Cook and Summerlake parks.
Public Works Administration has proposed a new position to support the water supply
project and the relationship with the water partners. Also included is the replacement of
the Directors vehicle.
The Storm and Sanitary Sewer units will continue with the same number of positions
through the next year. Both units propose to split the cost of replacement Combination
Sewer line cleaning truck estimated at $250,000. This type of equipment is used regularly
to carry out the work requirements set forth by the Unified Sewerage Agency.
The Street maintenance unit will add a utility worker position to enhance the capability of
the street maintenance crew to address the increasing demand in the City and in the
Urban Service area. The County has pledged $120,000 for services in the Urban area of
the County serviced by Tigard. The proposal also contains a replacement sign machine
and a replacement crack sealer.
The property management unit manages the maintenance of City buildings. Included in
this budget are janitorial costs and other costs associated with the maintenance of City
facilities. Also included are a series of projects related to compliance with the ADA and
projects at various facilities requested by departments. Proposed projects total an
estimated $125,900.
The water system budget proposal is significantly greater than the previous year. It
includes two new utility worker positions to assist with water projects and maintenance
activities. Capital equipment requests include the replacement of two maintenance
vehicles and a backhoe. Significant funds are also included to review and upgrade the
SCADA system. The most notable change in the water budget is the addition of just over
$1,100,000 for purchased water from the City of Portland. Due to the peaking language in
the Portland surplus water agreement, the City will be penalized in its cost of water from
Portland beginning July 1, 1999. The rate the City pays for wholesale water will increase
from $.66 to $1.22 per unit of water.
Community Development
Most units in the Community Development program reflect no unusual budget changes
from the previous year. The Building unit reduced their FTE requirements by four positions
due to a general slow down in development activity. A building fee increase proposal was
approved by the City Council in April 1999. The proposal was then appealed by the
Homebuilders association. The proposal included a 52% increase in building fees, which
have not been increased for many years. Assuming the appeal does not succeed, the
higher fees will be collected starting in July 1999.
The Building budget proposal also includes the purchase and installation of an interactive
voice response system which will automate the inspection and information request
functions.
The Long Range Planning unit has included $70,000 for two planning studies. One is for
the preparation of a plan for the Downtown and the other is for the follow up and
implementation of the Washington Square regional plan.
The Engineering department is proposing the addition of a Project Engineer to increase
the capacity of the department to complete more projects approved by the Council. The
Engineering budget also includes the replacement of a number of computer workstations
and various pieces of survey equipment.
City Administration
Total staffing in City Administration is proposed to increase by 1.5 positions. A Budget
Analyst position is being added to the Finance department to assist with the allocation of
costs between the various work units and funds and to periodically review fees and
charges and other revenue sources.
The City Administration budget includes $10,000 for a citizen survey and related consulting
services, as part of the City's Visioning program. It also anticipates publishing 12 issues of
the Cityscape.
The Human Resources budget proposal includes a classification and compensation study
for the Management Professional group and trainer services for Citywide Supervisory
training and other training programs.
The Network Services budget includes all computer equipment from all work units. Such
purchases were distributed to the various work units in the past and have been pulled
together in this budget to allow for more consistent management of equipment and
replacement parts.
The Accounting budget includes the costs of the annual audit in the second year of the
contract with the selected audit firm. This budget also anticipates the outsourcing of utility
bill mailings rather than the replacement of significant mailing equipment. Also included is
the last series of software upgrades to the financial system to bring it into compliance with
the year 2000.
The central records unit budget proposal includes the addition of a half time position to
assist with the increasing volume of records maintenance activities including microfilming
and storage.
General Government
General Government expenditures include City dues and subscriptions to various
organizations and utilities for all City facilities. Also included are funds for signing and
interpretation at public meetings. The City attorney budget for litigation and miscellaneous
matters is estimated at $60,000. The balance of City attorney services are budgeted in the
various departments.
Capital Improvements
This budget proposal appropriates all funds which were identified for Capital Projects in the
financial plan. The Capital Improvement Project process is currently underway with the
City Engineer leading the way through a series of public meetings. The results of this
process will identify a list of improvement projects to be funded.
The list of Improvement priorities will be presented to the City Council at the Budget
Hearing meeting for approval and inclusion in the budget. The total Capital Improvements
included in the budget proposal are $19,796,800.
Debt Service
General Obligation debt service has decreased dramatically compared to the previous
year. The last year of the 1989 road bonds matured and were paid in 1998/99. The
remaining General Obligation bonds are those related to the construction of the Civic
Center in 1984 and will mature in 2003. The balance of debt service is related to Local
Improvement Districts and will be repaid by assessments from participating property
owners.
Awards
The City continues to participate in the Government Finance Officers Association awards
programs for Financial Reports and Budgets. The City was awarded the Certificate of
Achievement for Excellence in Financial Reporting for the year ending June 30, 1998. The
City also received the Distinguished Budget Presentation award for the 1998/99 budget.
The City will continue to produce quality financial documents that meet the requirements of
both of these programs.
Conclusion
The City of Tigard proposed budget has been thoughtfully prepared to address areas of
growth and to fall within the guidelines of the financial plan. Approval of the budget as
proposed will ensure the continued provision of quality services to the public and will also
allow the provision of those services well into the next century.
I want to thank the City Council for their support throughout this budget process and the
Citizen members of the Budget Committee for taking their time to be involved in this
important civic endeavor. I also want to thank all department heads and their staff for their
sincere efforts at producing a budget that will provide the best value to the citizens of
Tigard.
Respectfully Submitted,
William A. Monahan
City Manager