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05/17/1999 - Packet AGENDA BUDGET COMMITTEE MEETING MAY 17, 1999 1. Call to order: 6:30pm 2. Approval of May 10, 1999 minutes 3. Old Business • Review of proposed changes 4. New Business • Budget Presentations: ♦ Police —Ron Goodpaster ♦ Library—Melinda Sisson ♦ Finance — Cyndi Turner 5. Conclude meeting: 8:30pm to continue Monday May 24th 6:30pm City of Tigard, Oregon Budget Committee Meeting Minutes May 10, 1999 Members Present: Mike Benner, George Burgess, Craig Dirksen, Gene Farnstrom, Paul Hunt, Brian Moore, Jim Nicoli, Joyce Patton, Ken Scheckla and Darlene Stevens. Staff Present: Gus Duenas, Eric Hand, Jim Hendryx, Mike Miller, Bill Monahan, John Roy, Cyndi Turner, Michelle Wareing and Ed Wegner. Call to Order: Gene Farnstrom, Budget Chair, called the meeting to order at 6:35pm. All members were present except Mike Benner, who arrived at 6:40pm. Approval of Minutes: The minutes of May 3, 1999 were approved with corrections. MSP On page 2, first paragraph of the minutes, it should read: "The increase is due to the "peaking" penalty imposed by the City of Portland because of high water usage by the Tigard water system." George Burgess noted that on page 6, paragraph 5, the percentage increase is incorrect. The increase in network storage space should be 5000%, not 6000%. Old Business: Cyndi Turner stated that she had the information that was requested at the last meeting. Cyndi distributed two handouts. The first handout was a breakdown of consulting services costs by department. The second was a breakdown of computer software costs by department. Cyndi noted that all computer software costs have been allocated to the Network Services budget. Gene Farnstrom stated that there was an error in the budget on page 85. Dial-A-Ride has been allocated $0 and Red Cross Transportation has been allocated $1,000. Gene noted that these are the same organization. The money needs to be allocated to Dial- A-Ride and Red Cross Transportation needs to be removed as a requestor. Public Works Budget: Ed Wegner, Public Works Director, presented his budget which starts on page 88. Ed stated that Public works is comprised of Administration, Sanitary Sewer, Storm Sewer, Street Maintenance, Fleet Maintenance, Property Management, Water and Parks. Ed introduced Mike Miller, John Roy and Eric Hand. Mike Miller is the Public Works Utility Manager and oversees Water, Sanitary Sewer and Storm Sewer. John Roy, Property Manager, manages the Street Maintenance, Parks, Fleet Maintenance and Property Management divisions. Eric Hand is the Supervisor of Sanitary and Storm Sewer. Ed stated that Public Works has a total of 64 FTE positions, making it the second largest department in the City. Ed stated that the budget is an operating and maintenance budget. It doesn't contain any new programs or major expenditures. Ed noted that the Park improvements, which were identified in the Parks Master Plan, are not included in the Parks budget unit. The improvements will be paid for with park improvement funds that are part of the Capital Improvement Program. The Water budget is not technically a City budget. It is actually a Tigard Water District budget. The City oversees the budget, but needs the Intergovernmental Water Board's approval. Ed stated that the City has an intergovernmental agreement with Washington County to take over street maintenance in the urban services area and the costs are included in the FY 99/00 budget. Ed noted that the City is negotiating an agreement with the Unified Sewerage Agency (USA) to provide sanitary and storm sewer maintenance in the urban services area. These costs are not in the budget. The Parks budget unit is located on pages 87 and 88. There is a request for 1 new FTE. This Senior Utility Worker position will work primarily at Summerlake Park. The equipment costs are for the replacement of existing equipment. No new equipment is being added. Joyce Patton noted that on page 87, the Urban Forester position should be changed to Arborist. Also, the FTE position figures for FY 98/99 do not add up to 8.5 because the Urban Forester position was not included. Ken Scheckla asked if the new Park position was only going to work at Summerlake. Ed responded that the position will work primarily at Summerlake, but will provide assistance elsewhere when needed. Ed stated the position is actually an upgrade of a Utility Worker II. Once the staff person is upgraded to Senior Utility Worker, then his Utility Worker II position will be opened. Ken Scheckla asked if the Arborist was an all-year position. Ken stated he thought the City was contracting out for the falling of trees. Ken asked what the cost was for the Arborist and the contracts. Ed responded that the Arborist is not a new position. The position was approved and filled in the FY 98/99 budget. The Arborist works year round. He works in the Parks division, but has trained all crews in proper pruning and care techniques. He also works with citizens in removing trees and recommending 2 trees for different areas. He is working with the development engineers and planners on the Street Tree program in new developments. Ed stated that the City only contracts out for arborist services when large, hazardous trees in parks and street right-of-ways need to be removed. Ed noted that the cost of hiring a full-time forester and equipping the position was too expensive. The City downgraded the Forester position to the Arborist. Ken Scheckla stated that Washington County has arborists. Ken asked if the City could use them since they were certified. Ed responded that the City's Arborist is certified and has over 20 years experience in the nursery industry. Ed noted that using the County's arborists was not an option. Craig Dirksen stated that the City did a cost/benefit analyst last year to determine if it was cost efficient to add the Arborist position. Ken Scheckla asked how much new equipment was purchased for the Arborist. Ed responded that a new chainsaw was purchased and that was it. Gene Farnstrom asked if the Public Works was using volunteers. Ed responded that volunteers are being used in a variety of programs including Adopt-A-Street, fire hydrant painting, and Adopt-A-Path. Ed noted that an Adopt-A-Stream program is currently being developed. George Burgess asked why the Professional & Contract Services line item was double the cost of last fiscal year (p.88). Ed responded that the cost is for attorney fees for the park land acquisition. The Public Works Administration budget unit is located on page 92. There is a request for a new Program Assistant position. More support staff is needed to assist the managers. Ed stated that $5,000 has been allocated for the Emergency Operation Center (EOC). The Water Auditorium is the base for the EOC. The stage in the Auditorium is going to be walled off to provide a storage supply area. Ed noted that there will be two Emergency drills this coming fiscal year. The first drill will be in September. Ed stated that staff will be available between December 28, 1999 and January 3, 2000 to deal with any possible Y2K emergencies. The Sanitary Sewer and Storm Sewer budgets are located on pages 95 and 98 respectively. The costs are paid for with fees generated by USA charges. Ed stated that no new positions are being added. There is a major equipment expense that will be shared between the two divisions. One of the City's two Vactors needs to be replaced. A Vactor is a large truck that cleans sewer lines. Joyce Patton asked what is its useful life. Ed responded that the useful life of a Vactor is about ten years. Ken Scheckla asked if Ed could elaborate on the breaking of the TV equipment. Ed responded that USA requires the City to videotape sewer lines on a regular basis. On older sewer lines the video camera can get stuck. Sometimes the crews are able to pull the camera loose. Other times, the sewer line has to be broken open, so the camera can be retrieved. Ed stated that camera has never been broken only the sewer lines. Ken Scheckla asked if there were different camera sizes. Ed responded that there are different sizes and that the City will be purchasing a smaller camera in FY 99/00. Joyce Patton noted that on page 95, the Vehicle expense is $135,000, but the schedule of equipment on page 186 shows the Vactor cost as $125,000. Cyndi Turner responded that the Vehicle expense includes more than just the cost of the Vactor. The Street Maintenance budget unit is located on page 101. Ed stated that the Streets division is responsible for putting in the speed humps designated by the Speed Hump program. The City determined that it is more cost effective to do the work in-house. Ed noted that this budget unit contains a lot of summer help and two urban services positions. Ed stated that Washington County rents the trucks and pays for the supplies used by the urban services positions. Joyce Patton noted that the amount of crack seal to be applied to in FY 99/00 is double last fiscal year's amount. Joyce asked how that was going to be accomplished. Ed stated that a new Utility Worker II position is being added in FY 99/00. This position's main responsibility will be the crack seal and speed hump programs. Cyndi Turner stated that there are several budget changes in this unit. First, an additional $32,542 needs to be added to the wages line item. The urban services temporary staff costs were left out. Also, the overtime line item should be $9,614. The total changes to Personal Services is $46,664 which includes taxes on the above mentioned wages. Ken Scheckla asked why so much money was being allocated for overtime. Ed responded that overtime is budgeted for emergency storm situations. Bill Monahan clarified that the overtime is not specific to the urban services area. The overtime amount is for the entire Streets division. The Fleet Maintenance budget unit is located on page 104. This division is responsible for maintaining all city vehicles and equipment. It also does routine maintenance on all leased vehicles. The State of Oregon reimburses the City for the cost of major repairs on leased vehicles. Ed noted that Fleet is also responsible for fitting police cars with all necessary equipment. The Fleet division is comprised of three FTEs. 4 Paul Hunt noted that the total number of rolling stock for FY 98/99 is incorrect (page 103). It should be 122. Ed stated that in FY 98/99 the City had a Fleet/Facility Supervisor. This position was responsible for overseeing the fleet maintenance and building maintenance. It was determined that this was too much work and responsibility for one person. It was decided that in FY 99/00 that position would be eliminated and the City would have a Fleet Maintenance Supervisor and a Building Maintenance Supervisor. Gene Farnstrom noted that there are now 3 FTEs in Fleet, but they are doing about the same amount of work as in FY 97/98 when there was only 2 FTEs. Gene asked why the third position is necessary. Ed responded that there was a third person working in Fleet in FY 97/98. However, that person's salary cost was allocated to another division. The staff person was on "light" duty and was helping out in Fleet. The staff person returned to his regular duties and it was then necessary to hire a third position. The Property Management budget unit is located on page 107. This division is responsible for the maintenance and repair of all City facilities. It also administers the janitorial contract for the cleaning of the City facilities. This division has grown over the last few years. As more people are working in the buildings and as the buildings age, more maintenance and repair is required. Ed stated that 1 new position is being added. The Building Maintenance Coordinator position will be a half-time supervisor and a half-time technician. This position is being added because John Roy, Property Manager, is spending an incredible amount of time on building maintenance issues such as the HVAC System. The Building Maintenance Coordinator will take over these responsibilities freeing John to work on Park issues. Ed noted that the City facilities include the City Hall complex, Water building, the Niche, Public Works, the two modulars, the Senior Center, Canterbury, the building that Interfaith Outreach uses, all park facilities and four rental properties. All these buildings and structures require constant maintenance and repair. Ed stated that a lot of maintenance costs were deferred in the last two years because of the building expansion bond measure. The City did not want to make any major repairs incase the bond measure was approved. Since the bond measure failed, these repairs need to be made now. Ken Scheckla noted that the Building & Improvements line item is $125,900. Ken asked what the costs are. Joyce Patton responded that a break down of the costs were located on pages 187 and 188. Ed stated that each facility needs specific maintenance and repair. Ken Scheckla noted that there were no expenses in Building & Improvements in FY 97/98 and FY 98/99. Ken asked why there was such a large expense in FY 99/00. Ed 5 responded that the City had deferred maintenance costs because of the bond measure for the expansion of City facilities. Bill Monahan stated that after the bond measure failed, he met with John Roy to develop a five-year plan for improvements to existing facilities. FY99/00 is the first year of the Plan. Gene Farnstrom asked if the next few budget years will continue to have such large Building & Improvement expenses. John Roy responded that the improvement expenses will continue over the next few years. Jim Nicoli stated that when he became Mayor, the City facilities were not being maintained adequately. It was decided that the City would invest in its facilities, so they would not deteriorate. Jim noted that the City has spent over $300,000 in the last few years to repair City Hall, Library and Police roofs and windows. Jim stated that Building & Improvements expense for FY99/00 is necessary. The Water budget unit is located on page 110. Ed stated that this budget is driven by water rates from the Tigard Water Service Area. The Tigard Water Service Area is comprised of the cities of Durham, King City, two-thirds of Tigard and the unincorporated areas of the Walnut Island and Bull Mountain. Ed stated that Water Costs have increased significantly because of the $1.1 million peaking penalty imposed by City of Portland. Ed stated the total cost of repair, upgrade and analysis of the current SCADA system is approximately $91,000. The SCADA system monitors the City's water supply. It shows where the City's water is coming from and how much water the City is receiving. It also monitors the water flows. The Canterbury water storage tanks will be cleaned, sealed and repainted in FY 99/00. The preventive maintenance program for the pumps will continue. The pumps and motors receive regular maintenance and are rebuilt when necessary. A Water Conservation Specialist was hired in FY 98/99 as part of the water supply review. This staff person goes to schools to teach children about water conservation. Ed stated that a new Water Resource Specialist position is being added. This position will be responsible for producing water quality reports required by the EPA. The EPA changed its regulations, so the City must now produce these reports since it receives water from three different sources — Portland, Lake Oswego and the City's reservoirs. Paul Hunt asked if the City will have to test each water supply. Ed responded that the City will only have to test its reservoirs and will get the water information from the other water suppliers. The City will use this information to generate its reports. 6 Ed reported that Operation Equipment includes $70,000 for a new backhoe. Ed stated that several reservoirs will be cleaned in FY 99/00. This is the third year of a four-year program. Ed noted that special divers are used to clean the reservoirs. The reservoirs are cleaned while full and operating. In the past, the reservoirs were drained and shut down to be cleaned. Ken Scheckla asked how many reservoirs the City has. Mike Miller responded that the City has 13 reservoirs. Mike Benner asked why the Advertising & Publicity expense increased so significantly. Ed responded that the City is required to publish a water quality report that must be delivered to all residents in the service area. The increase includes the cost of designing, printing and mailing this report. Gene Farnstrom asked why the cost of paving and sealing the Water building parking lot is in Water's budget and not Property Management's. Ed responded that the Tigard Water District owns the Water building, so its costs come out of the water fund. Engineering Budget: Gus Duenas, City Engineer, presented his budget which starts on page 126. Gus stated Engineering is responsible for the design and construction of the Capital Improvement projects and review of private developments including projects in the urban services area. The department has a total of 15.5 FTEs. The Engineering Department has two Engineering managers. One oversees the CIP and the other oversees private development. Gus highlighted projects completed in FY 98/99. The Pavement Maintenance Program was initiated. The Speed Hump program was continued. Bonita Road Phases I, II and III were completed. 91St Street and 217/Greenburg Rd overpass were widened. The Walnut/Tiedeman realignment design was completed. A Bond Task Force was created to review and select streets for a road bond in 2000. The total Engineering budget is $1.04 million. The Financial Plan had an Engineering Technician to be added in FY 99/00. However, the Engineering Department is requesting that the position be upgraded to a Project Engineer. A Project Engineer will be able to review projects and provide more of the skills that the Engineering Department needs. Gus noted that the overtime cost of$7,500 was left out of the budget. He requested that the cost be added back into the budget. Brian Moore asked what the cost difference was between the Engineering Technician and Project Engineer positions. Gus responded that there is an increase of$12,000 in salary and total cost including taxes would be about $20,000. Gus stated that the Project Engineer will act as a liaison between the Engineering technicians and the Managers. Gus noted that as the City receives more money from gas taxes, the amount of projects will increase. Ken Scheckla asked where the new staff person would work. Gus responded that the building modular has been rearranged and the staff person will work in there. Gus noted that there are already two Engineering staff members working in the building modular. Professional & Contract Services expense has decreased. FY 98/99 had start up costs for the Pavement Maintenance Program and temporary drafting support. The temporary drafting support won't be necessary in FY 99/00 because of the new Project Engineer. Repair & Maintenance expense has also decreased. Engineering is purchasing a new car, so the costs of maintaining the old car are eliminated. Special Department Expense increase is due to the purchase of aerial photos for $3,000. The City is currently using photos from 1996. The photos are needed for the GIS mapping system. Office Supplies has a slight increase, which can be attributed to increase in supply and copy costs. Gus noted that computer software costs have been allocated to the Network Services budget. However, Engineering computer software costs include upgrades to the AutoCAD, StormCAD and Pavement Management Systems. Vehicle expense of$5,000 is for replacement of a 1986 Horizon with a refurbished police car. Office Furniture & Equipment of$16,950 includes $8,000 for 4 ergonomic workstations, $7,500 for an End tab file system, $650 for display phones and $800 for a digital camera. Operation Equipment of$16,500 includes $15,000 for new survey equipment that is Y2K compatible and $1,500 for a traffic counter. Jim Nicoli asked how many registered engineers there are in the department. Gus responded a total of 4, including himself. 8 Jim Nicoli asked how the State's new continuing education regulations for engineers affected the budget. Gus responded that $1,000 was allocated to pay for continuing education classes. Jim Nicoli stated that he thought that more money should be allocated for training. Jim stated that each person should have a minimum of$500 to spend on training for a total of $2,000. Paul Hunt asked why the amount requested for ergonomic furniture was cut in half. Paul stated that he thought all the workstations should be replaced at once. Bill Monahan responded that the City is adding ergonomic furniture in steps and as space allows. Darlene Stevens left at 8:17pm. Gus stated that 3 workstations have already been converted and that the FY 99/00 budget includes costs to convert 4 workstations. Gus noted that the budget had originally included 8 workstations, but it was decided that the 4 could wait until next budget cycle. Gus stated that he had to take into consideration what other departments were doing in regards to workstation conversion. Ken Scheckla stated that if Engineering changes its budget to include all the workstation conversions then changes would need to be made to all the other departments who have put off buying ergonomic furniture. Joyce Patton noted that on page 189, the number of workstations should be 4 not 9. Street Lights & Signals budget unit is on page 129. Repair & Maintenance expense of$80,000 includes $45,000 for contract with Washington County to replace chips in lights to be Y2K compatible, $25,000 for new streetlights and $10,000 for refurbishment of existing street lights. Utilities expense of $350,000 is the cost of electricity used. Community Development Budget: Jim Hendryx, Community Development Director, presented his budget which starts on page 112. Jim stated that his department is comprised of four divisions, which are Administration, Building Inspection, Current Planning and Long Range Planning. Jim noted that Administration includes the Development Services Technicians. Building Inspection includes plan review, inspections and the new housing program. Current Planning includes Code Enforcement. Long Range Planning is responsible for Metro 2040, greenspace acquisition and GIS. 9 Jim noted that total staff was reduced by 4.0 FTE. The four positions were unfilled and it was determined that they were not necessary due to lower building activity than originally estimated. Jim highlighted projects completed in FY 98/99. The Permit*Plan database system was upgraded to a windows version. Rewrote the Community Development Code. The Housing Inspection Program was implemented. The Administration budget unit is located on page 115. Professional & Contract Services expense includes $30,000 for attorney fees. Money has also been allocated for additional work on the Permit*Plan system and link to Finance's new Springbrook system. Repair & Maintenance cost is for the maintenance of the mapping system. Fees/Dues includes certification of the Development Service Technicians (DST). The DST's are the first in the State to become certified in this new program. Travel & Training includes the cost of training staff on the new Permit*Plan system. Jim noted that, in the past, only one staff member was trained in depth on the system. However, this caused a problem when the staff person left. Money has been allocated to train two staff members. Office Furniture expenses includes the cost of two ergonomic workstations. Building Inspection budget unit is located on page 118. This unit's FTEs were decreased by 4.0. Professional & Contract Services expense includes $13,000 for attorney fees related to the Housing Program, $15,000 for a department evaluation/audit and $10,000 for plan reviews for multi-storied buildings that are contracted out. The remaining costs are for temporary staff to cover when inspectors are out sick or on vacation. Special Department expense includes $10,000 for temporary housing as part of the new Housing Program. In the event that an apartment complex is deemed uninhabitable, tenants need to be provided with temporary housing. The property owners will be responsible for reimbursing the City for the cost of the temporary housing. Travel & Training cost is for the mandatory training of inspectors to keep their certifications current. Rents & Leases include the cost of the building modular and the leasing of 5 vehicles from the State. Office Furniture includes the cost of one ergonomic workstation. 10 Jim stated that $57,000 has been allocated for computer software. The software is for an Interactive Voice Response (IVR) system. Currently, people call in to the inspection line to request an inspection. A staff member takes the requests off the system and prepares them for the inspectors. The IVR is an automated system that people will be able to access 24 hours a day. The IVR system will generate reports for the inspectors each morning. People will also be able to check the status of their inspections. Jim stated that the IVR would be paid for with dedicated building fees. Jim noted that the fee increase has been appealed. If the building fees are not increased, then the IVR system will not be purchased. Current Planning budget unit is located on page 121. Professional & Contract expenses include money for abatements, Hearings Officer's contract, and minutes transcriptions. Office Furniture includes the cost of one ergonomic workstation. Long Range Planning budget unit is located on page 124. Total Personal Services has increased because money has been allocated for two interns. One of the interns will work on GIS. The other one will assist in the Washington Square project. Professional & Contract Services includes $50,000 for a Downtown Plan. The money will be used by the Tigard Central Business District Association to further renovate the Downtown area. Also, a study will be done. Jim noted that $24,000 of the $50,000 was carried over from FY 98/99. Travel & Training expenses has decreased because the GIS staff person who was taking college courses has left the City. Office Furniture includes the cost of one ergonomic workstation. Ken Scheckla asked where the attorney fees were for each division. Jim Hendryx responded that attorney fees for Current and Long Range Planning are included in Community Development's Administration budget. The total attorney fees are $30,000. Cyndi Turner gave a recap of proposed changes to the budget. The Streets division's needs an additional $46,664 in Personal Services. Engineering needs $7,500 in Overtime plus taxes. Also, another $1,000 to be allocated to Travel & Training for continuing education classes for the engineers. The Budget Committee was concluded at 8:50pm and discussions will be continued at the May 17, 1999 meeting. li VISITOR SIGN-IN SHEET BUDGET COMMITTEE MEETING MAY 17, 1999 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. s Finance Department Proposed Budget Recap May 17, 1999 ♦ Finance Division — Page 149 => No new positions added ==> Attorney Fee reduction - $10,500 => Fees for Water Supply Revenue Bonds - $1,200 ♦ Accounting Division — Page 152 I new position — Budget Analyst ➢ Revenue Analysis ➢ Matrix Relationships ➢ Budget Document => Outsourcing Utility Billing Mailings ➢ Improve mailing function ➢ Reduces Capital Equipment costs by $25,000 ➢ Improves customer service ■ Water Division ■ Conservation Information ■ USA Flyers ➢ Reduces Postage Costs by approx. $5,000 => Software Upgrade - $20,000 Carryover Capital Purchases ➢ 2 Ergonomic workstations ➢ Partitions for Note Taker Extraordinaire ➢ Technology Upgrades ■ 5 Computer Replacements ■ 2 Laser Printers ■ Scanner ■ Barcode Reader/Scanner ♦ Office Services — Page 156 No New Positions Added Increase in Office Supplies ➢ General Postage Costs — Increased $10,000 ➢ Cityscape Postage Costs — Increased $2,400 2 Ergonomic workstations ♦ Records Division — Page 159 =:> Addition of.5 FTE — Microfilming project => Reduced costs for outside storage - Canterbury => 2 Ergonomic workstations =:> 2 Computer upgrades — Tidemark requirements ♦ Municipal Court— Page 162 => No New Positions Added => Reduce Professional & Contract Services by $20,000 =:> FullCourt Licensing fee - $3,700 (Network Services) => Replace Court copier Personal Services Positions 205.61 226.16 242.51 252.20 0.00 252.20 Wages 7,692,796 8,657,654 10,052,286 10,837,401 32,542 10,869,943 Overtime 186,324 257,640 339,486 285,080 17,155 302,235 Worker's Compensation 100,982 190,535 163,687 154,196 154,196 Payroll Taxes 669,990 753,387 896,444 938,533 5,952 944,485 Retirement 972,086 851,390 1,087,884 1,037,245 1,037,245 Group Insurance 711,521 745,801 939,596 1,120,664 1,120,664 Total Personal Services 10,333,699 11,456,407 13,479,383 14,373,120 55,649 14,428,769 Materials & Services Water Costs 2,162,943 2,094,245 2,264,040 3,275,100 3,275,100 Prof. &Contract Services 1,541,928 1,749,946 1,812,508 1,953,891 1,953,891 Repair& Maintenance 572,374 514,109 779,827 867,098 867,098 Special Dept. Expense 166,268 200,823 215,507 242,724 242,724 Office Supplies 260,591 247,414 284,776 317,929 317,929 Advertising & Publicity 82,553 74,078 84,845 137,520 137,520 Fees/Dues/Subscriptions 77,080 67,568 89,698 90,738 90,738 Travel &Training 109,156 132,057 225,225 249,971 1,000 250,971 Fuel Expenses 94,555 85,185 102,095 124,939 124,939 Computer Software 23,847 42,435 139,900 151,400 151,400 Rents& Leases 20,829 29,943 130,111 123,479 123,479 Utilities 460,954 497,672 576,742 582,202 582,202 Insurance 171,726 182,326 228,096 225,340 225,340 Library Materials 211,891 200,247 193,721 205,000 205,000 Total Materials & Services 5,956,695 6,118,048 7,127,090 8,547,331 1,000 8,548,331 Capital Outlay Land & Improvements 0 46,826 82,000 36,500 36,500 Building & Improvements 4,107 5,576 3,800 125,900 125,900 Vehicles 172,635 150,075 241,000 590,100 590,100 Office Furniture& Equipment 58,333 56,350 100,207 111,495 111,495 Computer Equipment 166,609 186,825 183,237 107,935 107,935 Operation Equipment 274,140 153,350 325,147 361,860 361,860 Total Capital Outlay 675,824 599,002 935,391 1,333,790 0 1,333,790 Total Operating Budget 16,966,218 18,173,457 21,541,864 24,254,240 56,649 24,310,890 Finance Department Proposed Budget Recap May 17, 1999 ♦ Finance Division — Page 149 No new positions added Attorney Fee reduction $10,500 => Fees for Water Supply Revenue Bonds - $1,200 ♦ Accounting Division — Page 152 => 1 new position — Budget Analyst ➢ Revenue Analysis ➢ Matrix Relationships ➢ Budget Document Outsourcing Utility Billing Mailings ➢ Improve mailing function ➢ Reduces Capital Equipment costs by $25,000 ➢ Improves customer service ■ Water Division ■ Conservation Information ■ USA Flyers ➢ Reduces Postage Costs by approx. $5,000 => Software Upgrade - $20,000 Carryover Capital Purchases ➢ 2 Ergonomic workstations ➢ Partitions for Note Taker Extraordinaire ➢ Technology Upgrades ■ 5 Computer Replacements ■ 2 Laser Printers ■ Scanner ■ Barcode Reader/Scanner ♦ Office Services — Page 156 ==> No New Positions Added => Increase in Office Supplies ➢ General Postage Costs — Increased $10,000 ➢ Cityscape Postage Costs — Increased $2,400 => 2 Ergonomic workstations ♦ Records Division — Page 159 Addition of.5 FTE — Microfilming project Reduced costs for outside storage - Canterbury => 2 Ergonomic workstations => 2 Computer upgrades — Tidemark requirements ♦ Municipal Court — Page 162 => No New Positions Added => Reduce Professional & Contract Services by $20,000 => FullCourt Licensing fee - $3,700 (Network Services) => Replace Court copier 1999k001,,-,, Propos ed, Bud et f s T City pTurd,Ar"gpn , Total©perating Budget Actual Actual Adopted Prtp©sed; Prpposed Adjusted A. Description 9996197 1997198 1958/99 .._1999it1[1 Changes 1999/00 Personal Services Positions 205.61 226.16 242.51 252.20 0.00 252.20 Wages 7,692,796 8,657,654 10,052,286 10,837,401 32,542 10,869,943 Overtime 186,324 257,640 339,486 285,080 17,155 302,235 Worker's Compensation 100,982 190,535 163,687 154,196 154,196 Payroll Taxes 669,990 753,387 896,444 938,533 5,952 944,485 Retirement 972,086 851,390 1,087,884 1,037,245 1,037,245 Group Insurance 711,521 745,801 939,596 1,120,664 1,120,664 Total Personal Services 10,333,699 11,456,407 13,479,383 14,373,120 55,649 14,428,769 Materials & Services Water Costs 2,162,943 2,094,245 2,264,040 3,275,100 3,275,100 Prof. & Contract Services 1,541,928 1,749,946 1,812,508 1,953,891 1,953,891 Repair& Maintenance 572,374 514,109 779,827 867,098 867,098 Special Dept. Expense 166,268 200,823 215,507 242,724 242,724 Office Supplies 260,591 247,414 284,776 317,929 317,929 Advertising & Publicity 82,553 74,078 84,845 137,520 137,520 Fees/Dues/Subscriptions 77,080 67,568 89,698 90,738 90,738 Travel &Training 109,156 132,057 225,225 249,971 1,000 250,971 Fuel Expenses 94,555 85,185 102,095 124,939 124,939 Computer Software 23,847 42,435 139,900 151,400 151,400 Rents& Leases 20,829 29,943 130,111 123,479 123,479 Utilities 460,954 497,672 576,742 582,202 582,202 Insurance 171,726 182,326 228,096 225,340 225,340 Library Materials 211,891 200,247 193,721 205,000 205,000 Total Materials & Services 5,956,695 6,118,048 7,127,090 8,547,331 1,000 8,548,331 Capital Outlay Land & Improvements 0 46,826 82,000 36,500 36,500 Building & Improvements 4,107 5,576 3,800 125,900 125,900 Vehicles 172,635 150,075 241,000 590,100 590,100 Office Furniture& Equipment 58,333 56,350 100,207 111,495 111,495 Computer Equipment 166,609 186,825 183,237 107,935 107,935 Operation Equipment 274,140 153,350 325,147 361,860 361,860 Total Capital Outlay 675,824 599,002 935,391 1,333,790 0 1,333,790 Total Operating Budget 16,966,218 18,173,457 21,541,864 24,254,240 56,649 24,310,890 ...:::......., ` ''`aid:> e tl sits€> <>>[[> z 3#' runt i' ` > < <;<[«< '> <[ >[ < ><> > > > >>< '> > < << ................. .ift,.. . : ' 't d€€€...A ' «><<€:ern"'ash... ..........................::::::::::::::::......................................................................................:..::.:::.:::::::::::.p.:::::::.::::.:::::::::. :::. ::::::::.:::::::::::::::::::::. va : » Personal Services Positions 8.00 8.00 9.00 10.00 0.00 0.00 Wages 289,684 300,841 341,942 388,444 0 0 Overtime 200 702 0 0 0 0 Worker's Compensation 708 1,076 797 792 0 0 Payroll Taxes 24,654 25,284 29,638 33,142 0 0 Retirement 33,551 32,887 37,038 40,685 0 0 Group Insurance 31,190 31,743 34,234 45,353 0 0 Total Personal Services 379,987 392,533 443,649 508,416 0 0 Materials & Services Water Costs 0 0 0 0 0 0 Prof. & Contract Services 35,851 58,526 57,985 43,567 0 0 Repair& Maintenance 5,029 4,290 5,512 1,800 0 0 Special Dept. Expense 718 117 0 40 0 0 Office Supplies 48,573 53,895 56,029 63,019 0 0 Advertising & Publicity 777 835 2,375 3,045 0 0 Fees/Dues/Subscriptions 947 3,049 3,401 3,515 0 0 Travel & Training 3,115 3,595 6,170 13,184 0 0 Fuel Expenses 0 0 0 0 0 0 Computer Software 0 8,254 72,025 0 0 0 Rents & Leases 805 1,199 1,620 1,464 0 0 Utilities 0 0 0 100 0 0 Insurance 0 0 0 0 0 0 Library Materials 0 0 0 0 0 0 Total Materials & Services 95,815 133,760 205,117 129,734 0 0 Capital Outlay Land & Improvements 0 0 0 0 0 0 Building & Improvements 0 0 0 0 0 0 Vehicles 0 0 0 0 0 0 Office Furniture & Equipment 2,583 187 3,765 8,350 0 0 Computer Equipment 6,714 6,096 1,500 0 0 0 Operation Equipment 0 0 1,350 6,050 0 0 Computer Software 0 0 0 0 0 0 Total Capital Outlay 9,297 6,283 6,615 14,400 0 0 Total Budget Unit 485,099 532,576 655,381 652,550 0 0 City of Tigard Outsourcing UB Mailing Services FY 1999/00 Costs associated with in-house mailing services: Weekly Annual Annual Costs Rate Costs Costs Excl. Staff Staff Labor 22 87 4,536 Staff Overhead 210 10,945 (excluding equip/maint/postage below) Equipment 31 1,620 1,620 Maintenance 62 3,228 3,228 Postage 31,649 31,649 Sub total = 51,979 36,497 " Note: To keep mailing in-house,folder/inserter would need to be replaced. Annual costs for new equipment not included in above numbers: Annual Buy Lease New Folder/Inserter= 15,807 4,428 4,428 Postage meter N/A 1,133 1,133 Grand Total = 57,539 42,058 Costs associated with outsourcing mailing services: Equipment Folder(Urgents) 28 1,464 1,464 Maintenance Folder(Urgents) None- 1 st yr - $41/mo after 1 st yr. Postage 26,870 26,870 Outsourcing $65.00/1,000 2,000 6,760 6,760 Grand Total = 35,094 35,094 Equip/Postage Annual Savings= 22,445 6,964 By outsourcing the utility bill mailings, we will save significant staff time (which can be better used), as well as eliminate the need to purchase expensive mailing equipment. The proposal to outsource mailings will eliminate all equipment and maintenance costs, except for a small desk top folder, which will be used for Business Tax and Urgent utility notices. All office mail will be forwarded to Office Services for postage. Employee overhead will not be eliminated, but employee will be able to focus on other tasks, versus weekly mailings. Thus, I included the overhead and salary figures in the annual savings figure, in the first column. I have also calculated savings excluding staff labor and overhead. These figures are in the second column. Outsourcing should save us approximately .05 cents per barcoded piece of mail. If we estimate 86% of our bills can be metered at the best bulk rate, the postage savings alone equals$4,779. This covers over 1/2 of the cost of outsourcing. The City of Beaverton currently outsources their utility bill mailing, which has proven to be a very successful program.