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05/20/2002 - Minutes City of Tigard, Oregon Budget Committee Meeting Minutes May 20, 2002 Members Present: Jim Griffith, Mike Benner(arrived at 6:55 PM), George Burgess, Irene Moszer, Sydney Sherwood, Greg Zuffrea, Craig Dirksen, Brian Moore, Joyce E. Patton, and Ken Scheckla. Members Absent: None. Staff Present: Bill Monahan, Craig Prosser, Tom Imdieke, Heather Block, Michelle Wareing, Margaret Barnes, Ed Wegner, and Dennis Koellermeier. Call to Order: George Burgess called the meeting to order at 6:34 PM. Approval of Minutes: The meeting minutes of May 13, 2002 were approved. MSP Library: The Library Department is comprised of Administration, Readers' Services, Technical Services, and Circulation. The overall Proposed Budget for the Library Department is up 4.22%. The Administration Division is up 12.50% and there is a reduction of.25 FTE. This position was added as .5 FTE in FY 2001-02 to assist with the new library bond. Personal Services are up 16.01%. This is mainly due to increased salary costs. Readers' Services Division is up 4.16% and .20 FTE. Professional Services appears to be up,but it includes expenditures that will be paid for with grant funds. The Technical Services Division is up 9.89%. Personal Services are up 10.11% due to a reclassification of a position that was not picked up in the FY 2001-02 budget. Materials and Services are up 7.38% mainly due to expenditures that had previously been budgeted in other divisions. Circulation is down 1.54%. This budget continues to maintain current services levels. Margaret Barnes updated the Committee on the Library status. The Library continues to stay open an additional four hours on Friday nights until 9:00 PM. This has been a successful program,bringing in over 200 citizens each week. Staff has also been working on the proposal for the new Library for the last eight months. Jim Griffith asked how the WCCLS funds are captured in the budget? Craig Prosser responded that funds are captured in the revenue section and the fund summary section and are then distributed to support the Library programs. Public Works: The Public Works Department is comprised of Administration, Parks and Grounds, Sanitary Sewer, Storm Sewer, Street Maintenance, Fleet Maintenance, Property Management, and Water. This Department went through reorganization in FY 2001-02 and is now reflecting the first full year of the reorganization in the FY 2002-03 Proposed Budget. The overall budget for the Department is up 8.21%. The Administration budget is up 13.69% and .5 FTE. This is due to the Assistant Public Works Director that started in January. Ed Wegner reported that the Administration Division continues to work on training of staff and citizens to effectively operate the Emergency Operations Center. Parks and Grounds had an overall increase of 4.56% and .5 FTE. This includes the addition of a Utility Worker II position to help maintain park facilities developed in FY 2001-02. Capital Outlay is up 28.52%. This is due to a replacement mower($80,000), resurfacing Summerlake basketball courts ($12,000), ADA upgrades for Cook Park ($8,000), and an irrigation system for the Woodard Park fields($4,000). Ed Wegner suggested that one aquatic wheat harvest be eliminated from Summer Lake Park and that the money be spent to better the park in other ways. The Sanitary Sewer Division had an increase of 6.76%. Materials and Services are up 28.25% and include $10,000 to assume maintenance responsibility for sewer laterals in the public rights-of-way. This Division includes a reserve for major equipment purchases in contingency. The purpose of the reserve is to build over time to make sure that there w are sufficient funds to replace major equipment when needed. Storm Sewer had an overall increase of 11.98%. This includes the addition of$6,145 in Materials and Services for an enhanced fall leaf pick up and removal program. It also includes a reserve for future replacement of major equipment when needed. Ed Wegner mentioned to the Committee that the Storm Sewer Division has recently had an increase in the number of Water Quality Facilities that need to be maintained. The Street Maintenance Division is up 3.14%. This is primarily due to the replacement of a one-ton truck with man lift,which increased Capital Outlay. Ed informed the Committee that Streets is the most visible operation next to the Parks Division. They are responsible for crack sealing, installation of speed humps,replacing signs and othersuch duties around the City. Fleet Maintenance had a decrease of 9.4§%. There was a decrease of 100.00% in Capital Outlay due to not replacing any pool cars in FY 2002-03. If needed, pool cars will be replaced by rotating out police sedans. Ed informed the Committee that they are looking at the next pool car potentially being a hybrid. George Burgess asked why there was -$2,500 in Miscellaneous Expenses? Craig responded that with the new cost allocation system, other departments are being charged for pool car use. The Property Management Division is up 10.48%. A major portion of Materials and Services is for utility costs. The budget assumes an overall increase of 7% for utility costs. Materials and Services also include funds for increased electrical and security system maintenance and the replacement of small equipment such as water heaters, fans, and appliances. This Division is working with the local school district to have outside vendor's work on multiple projects in both the school and the City under the same contract. Water had an overall increase of 10.01%. Materials and Services includes a projected 7% increase in the cost of water purchased from Portland and the Tualatin Valley Water District and a 72% increase in the cost of water purchased from the Joint Water Commission. Capital Outlay increased 283.35% for the replacement of one dump truck and one one-ton truck. Ed also added that money was included in the budget for security increases, and a water conservation rebate program. Jim Griffith asked why the overtime costs were so high? Ed Wegner responded that an employee is on-call 24 hours a day all year round in this Department. Ken Scheckla asked if the overtime person rotated? Ed replied that there was a core group of people who were trained to work on-call. Mike Benner asked if vehicles that were rotated out had any value? Ed responded that most of them do and are sold at the State auction. , Ed Wegner went over the CIP projects that affected the Public Works Department with the Committee. Amendments: Craig Prosser distributed a memo to the Committee of Amendments to the FY 2002-03 Proposed Budget. The changes are as follows: Reduce Materials and Services in City Management by $48,000. The City is terminating its contract with Randall Group,which is the firm that researches grant opportunities for agencies. Increase Materials and Services by$10,000 in the Social Services Division. The Budget Committee voted to add $10,000 to the Social Services budget to support affordable housing. This money cannot be used until the City Council adopts criteria for its use. Increase Personal Services in the Police Department by$62,144 to pay the costs of picking up Police Management PER'S employee contributions as directed by the City Council. The City Council agreed to establish a$750 insurance allowance for Department Directors to allow more flexibility in choosing between life insurance or long-term care insurance. Changes need to be adjusted to reflect: increase Police Administration by $55; increase Library Administration by $750; increase Public Works Administration by $187; increase Community Development Administration by$750; increase Engineering by $62; and increase Finance Administration $345. The Council directed the Budget Committee that the one time payment from the PGE Audit should be used for a future utility audit, a study of City rights-of-way, and energy conservation improvements to City Hall and the old library building. To accomplish this, the General Fund Beginning Balance needs to be increased by the amount of the PGE Audit payment of$310,746 and transfers to the Central Services Fund need to be increased by$45,000 and the Facilities Fund by $256,746. Traffic revenue in the General Fund needs to be increased by$45,000 as a revised revenue projection for Traffic Citation Revenue. The Library Director submitted revised revenue projections for WCCLS revenue. The General Fund County Revenues needs to be increased by $1,346 and an increase in Library Administration- Special Department Expense needs to be made for the same amount. State Gas Tax revenue needs to be decreased by $81,271. The League of Oregon Cities notified the City that State Gas Tax Share revenues would be less than had been anticipated. To off set the decrease in revenue, the Ending Fund balance will be eliminated and Contingency will decrease by $76,054. A transfer of$100,000 from the Insurance Fund to the Central Services fund needs to be made in the event that actual insurance premiums exceed the budgeted amounts. Risk Management has been told that insurance premiums could increase by as much as 200% this fiscal year. Increase Bancroft Debt Service Fund by $550,000 and reduce Ending Fund Balance by $550,000. This money will be used to call bonds and make additional principal and interest payments. Decrease Water SDC Fund CIP by $394,875 and transfer this same amount to the Water Fund. The full cost of the Menlor Pump Station was budgeted in the Water SDC Fund, However, part of the project is to be funded using Water SDC funds. Increase the General Fund Beginning Fund Balance by $10,000 and increase CIP funding by the same amount. This project was authorized in FY 2001-02, but will be postponed until a new HVAC system is installed at City Hall. Decrease Parks Capital Fund CIP by$295,000 and increase Parks Capital Fund Debt Services by$277,861. The principal and interest payment for the OECDD loan for Cook Park Expansion was budgeted as a capital project and not debt service and at a higher level than necessary. Increase Parks Capital Funding Beginning Fund Balance by $25,000 and increase Federal Grants by $21,000. Also, increase the CIP for Woodard Park Shelter by $46,000. The Woodard Park Shelter was authorized in FY 2001-02,but will not be implemented until FY 2002-03. Increase Traffic Impact Fee Fund CIP by $69,000 to budget for the revised project costs. The Ending Fund Balance is reduced by $9,994 and the Contingency is reduced by $59,006 to cover the additional appropriation needed. Tom Imdieke presented the Committee with a chart showing how the adjustments impacted the Funds. Craig Prosser noted to the Committee that in addition to the adjustments shown in the charts, some of these adjustments would also cause adjustments in transfers between funds. He expects these changes to be minor and, therefore, did not include them on the chart. Craig Prosser distributed a memo sent to him by Renee Bruce of Community Action Organization. Renee is requesting that the City of Tigard reevaluate their request for a $15,000 Social Services Grant. The City of Tigard agreed upon the grant amount of $12,000. Members of the Social Services subcommittee responded to this memo stating that several attempts have been made to get additional information from CAO showing the distribution of money spent in Tigard. Bill Monahan suggested that time be taken to meet with the different Social Service agencies. Ken Scheckla motioned to increase the Social Service Grant to Community Action Organization by $3,000. No second was given. Motion died. The Committee agreed to look at having a session during the August workshop meeting to discuss funding of Social Services agencies with the agency representatives. This meeting would focus on grant applicants who have not provided enough information in the past. State Revenue Sharing Hearing: George Burgess opened the State Revenue Sharing Hearing to the public at 7:55 PM. Tom Imdieke noted that the City would receive $208,887 in State Revenue Sharing Funds for FY 2002-03. Tom also noted that the City would receive three other State funds. The funds are as follows: Cigarette Taxes - $85,800; Liquor Taxes - $371,065; and State Gas Taxes—$1.6 million. There was no comment from the public regarding the State Revenue Shared funds. The State Revenue Sharing Hearing was closed to the public at 7:57 PM. Budget Approval: George Burgess moved that the approval of the amendments to the FY 2002-03 Proposed Budget as presented in the May 16, 2002 memo from Craig Prosser, along with any adjustments to inter-fund transfers resulting from the identified amendments be approved. Sydney Sherwood seconded the motion. All committee members were in favor. MSP George Burgess moved for approval to levy the City of Tigard's permanent tax rate of $2.5131 per$1,000 and to levy taxes necessary to pay $256,638 in debt service on the City's 1993 General Obligation Refunding Bond and to pay up to $1,067,500 in debt service on the City's General Obligation Library Bond. Jim Griffith seconded the motion. All committee members were in favor. MSP George Burgess moved for the approval of the FY 2002-03 City of Tigard Budget as amended, with the following directive: If the Library Bond does not receive a majority vote or if the voter turn-out does not reach 50% at the election, staff is directed to remove debt service for the Library Bond from the FY 2002-03 Budget. Jim Griffith seconded the motion. All committee members were in favor. MSP Process Debriefing: Craig Prosser asked the committee if there were any comments or suggestions for the budget adoption process. The Committee had no comments or suggestions. Future Meetings: The Budget Committee will continue to meet on a quarterly basis with the next meeting being in August 2002. Public Comment: There was no public comment. The Budget Committee was adjourned at 8:02 PM. MSP