05/16/2005 - Packet Tigard Budget Committee 2005
(Note: Items not completed at scheduled meeting will be held over to following
meeting.)
May 16, 2005
6:30 p.m.
Library Community Room
13500 SW Hall Blvd.
• Call to Order
• Approval of Minutes
• Discussion of Department Budgets
o Community Development
o Engineering
o CIP
• Technical Adjustments
• Finance Direction
• Final Decisions
• Public Comment
• Approve Budget
• Process Debriefing
• Role of Budget Committee in mid year
• Budget Committee Schedule for FY 2005-2006
• Adjourn
(Note: If agenda not completed, items will be carried over to May 23, 2005
meeting)
Budget Committee Meeting
May 16, 2005
Sign In Sheet
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City of Tigard, Oregon
44W Budget Committee
Meeting Minutes
May 9, 2005
Members Present: Mike Benner, Craig Dirksen, Mark Haldeman, Sally Harding, Katie Schwab, Sydney
Sherwood, Nick Wilson, Tom Woodruff, Susan Yesilada and Jason Snider(to be appointed).
Staff Present: Roger Dawes, Maureen Denny, Bill Dickinson, Tom Imdieke,Al Orr, Craig Prosser, and
Michelle Wareing.
Visitors: Martha Bishop, Gretchen Buehner, and Kevin Harding
Call to Order: Mark Haldeman called the meeting to order at 6:30 PM.
Approval of Minutes: Initially the meeting minutes of May 2, 2005 were approved, however upon further
discussion later in the meeting, it was noted that Public Comment was not included. The minutes from
May 2, 2005 will be revised and redistributed for approval.
Handouts: Tom lmdieke discussed the three handouts. The first memo from Margaret Barnes addressed
the question raised last week about which day was the least busy at the Library. Based on an analysis of
March 2005, Thursdays register the lowest in average numbers of visitors per hour and items checked
out per hour. Margaret Barnes stated no one day logs the lowest statistics in all categories and the
amount of activity on any given day of the week may also differ from month to month.
The second memo from Roger Dawes was in response to the question asking how many legal FTEs our
*4w" current attorney might use during a fiscal year. Based on FY 2003-04 data, the memo states that
attorney hours were 48% of an FTE, legal aide hours were 5% of an FTE, and clerical hours were 5%of
an FTE. Billings from July 1, 2004 through March 31, 2005 reflect that attorney hours are 38%of an FTE,
legal aide hours are 1% of an FTE, and clerical hours are 2%of an FTE.
The third memo prepared by Michelle Wareing addressed the impact of the Travel and Training budgets
on Materials and Services. Total citywide proposed budget for Travel and Training is$210,873 which is
an increase of$22,889 over current fiscal year. Of the total citywide travel and training budget for
FY 2005-06, $63,336 (about 30%) is for mandatory or liability-related training for Police, Public Works,
and Building Inspection staff. Of the$63,336 amount, a little over$13,000 will be paid for by grants or
other funds. A spreadsheet was attached to the memo showing different comparisons of expenditures.
Tom Imdieke encouraged Committee members to review the memos and raise any questions at the next
meeting.
Police: Chief Bill Dickinson and Assistant Chief AI Orr presented the Police budget. The primary mission
of the Police Department is to respond to emergency calls(911 calls), followed by responses to all other
calls for service. These calls are prioritized and dispatched by WCCCA.
The second priority is follow-up investigation. A certain percentage of calls the Department responds to
involve criminal action, the most serious of which are investigated through the Detective Unit and the less
serious of which are investigated by Patrol Officers. Most calls involve some follow-up activity.
The third priority is prevention and education. When the Department is not responding to calls for
service, one goal is to reduce the calls. The Department is constantly working towards trying to educate
the public on crime prevention.
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Funding sources for the Department come from the General Fund. Fines, penalties, and alarm permit
fees generated by the Police activities go into the General Fund. Since 1999, the Department has
aggressively pursued grants and has received funds of approximately$500,000,from federal and state
grants. The Department has recently entered into a contract with Tri-Met that covers the cost to field an
officer. The Department receives some overtime reimbursement from contracts and grants.
Major factors affecting the budget are:
1. Replacement of patrol cars. The City has cut back on vehicle replacements in the past few years.
Only wrecked vehicles have been replaced. Now, several vehicles have high mileages and are
becoming costly to keep on the road. The Department would like to be able to turn over five cars
per year on a five-year replacement cycle. The recommendation for vehicle replacement has
come from the City's Fleet Manager.
2. A total of about$250,000 in grant funded equipment is included in the Police Department budget.
The majority of the grant dollars will be used to replace portable radios and purchase new
satellite phones. Also, the remaining mobile data terminals(MDTs)will also be replaced. The
Department replaced the majority of the MDTs in FY 2004-05, which was also funded partially
with a grant. This equipment will not be purchased, if the grant dollars are not received.
3. Training --an unfunded mandate. Handouts were presented showing requirements from the
state and from the City's insurance company for training. The training budget has increased due
to the increase in requirements.
4. Overtime. The overtime is lower than FY 2000-01. If the officers claim the money versus
compensatory time off, they must be paid per the terms of their labor contract.
Tom Woodruff asked if the labor agreement requires a minimum overtime. Chief Dickinson said it
would depend on the circumstances. If an officer is called back to work within an hour of their
shift, it is considered a shift extension. If there is more than an hour or on a day off, they will be
paid a minimum of three hours (referred to as a"call-back").
Mayor Dirksen asked if overtime is primarily due to officers needing to work their shift and also
required to be at court. Chief Dickinson stated there are several different categories; operational
—coverage for shift minimums; operational—significant crime call at the end of a shift requiring
the officer to finish necessary paperwork; training related; and court time. Craig Prosser pointed
out the Department had prepared Issue Paper#6 which goes into the factors affecting overtime.
It also includes an article from the National Institute of Justice examining key issues regarding
Police overtime.
Councilor Woodruff asked if overtime decreased by adding back the two officers, noting that the
proposed budget is a significant increase from before the two officers were added. Chief
Dickinson stated the Department is in the red for its overtime budget. The Department took a
reduction in the overtime budget for FY 2004-05 and he is asking for a budget that more
accurately reflects what occurs.
Mark Haldeman recalled last year, that the Tigard Police Officers Union was the one claiming the
additional officers would decrease overtime. He recalled the Chief thought it would be more of a
wash. Chief Dickinson agreed. If the Department could eliminate the shift coverage overtime,
the maximum savings would be$28,000.
Councilor Harding asked where the savings of overtime came from. Chief Dickinson stated one
of the low years was due to the Balloon Festival not taking place. The Department budget has
not included staffing of events such as the Balloon Festival or 4th of July. This year, the budget
reflects the cost for these events. Councilor Harding asked if the Department could use other
agencies reserve officers so the City could save money. Reserves from many different reciprocal
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agencies are used already. The Tigard reserve unit is currently working at two-thirds of optimum
capacity and the Department is working to try fill some of the vacancies. Councilor Harding
asked for a breakdown of the overtime. Craig Prosser referred the Committee to the previously
mentioned issue paper.
5. Addition of two officers. Chief Dickinson stated that one position is for another motorcycle officer
to help improve traffic pursuant to Council goals. The Chief stated that he feels the ratio of
officers to citizens is too low. The Department covers 1-5, Hwy 217, and 99W. If the state
troopers are unavailable, which is common as only a few troopers are assigned to the area,
Tigard is responding to most of the calls even though they are state roads and highways.
Councilor Sherwood asked how many of the calls to the Department regard meth-related crimes.
Chief Dickinson stated some sources claim as high as 85%, but he feels if all meth-related crimes
were eliminated, the crime rate would not go down by 85%. The property crimes are higher than
average while the violent crimes are less than average in Tigard. Fraud and identity crimes are a
large percentage of the property crimes, as well as shop-lifting at Washington Square. About
28%of the call load is associated with the Washington Square business district.
Mayor Dirksen asked as the call volume goes up, is there a maximum number of calls per officer
that can be sustained and is the answer to reducing the calls per officer increasing the number of
officers. The Chief stated he would like to have a staffing ratio that is higher than what the
Department currently has. Mayor Dirksen asked if the call-ratio was a good basis for calculating
the staffing levels needed. The Chief stated that there is a point where additional staffing is
needed or there is a reduction in services if the call-level is too high. Some communities decide
not to respond to private security company alarms or minor traffic violations, for example.
Katie Schwab asked if areas that do not provide full Police service, if there were private
companies that provided alarm response. In the case of alarms, there are private security
companies that will respond. Some companies will verify it is not a false alarm and then contact
the authorities. Katie Schwab asked if there were any studies that showed if crime increased
under this scenario. Chief Dickinson stated this is fairly new and there are only a few agencies
across the country trying this out.
Councilor Woodruff asked if the Department charges for false alarms. After 3 false alarms there
is a charge. If there is another one within a certain time frame, the fine increases. The fee
increased in last year's fee schedule.
The Department's authorized staffing level has not changed greatly since FY 2000-01. The
increase reflects the Tri-Met funded position. The Department anticipates the expansion of
Washington Square and the opening of Bridgeport Village will increase police activity.
Councilor Sherwood asked if Washington Square might fund a position. The Chief responded
that the Washington Square management is willing to provide a storefront, but not funds for a
position. The Department budget has no provisions for staffing a storefront. Mayor Dirksen
stated with the eventual expansion of the Police Department facilities, perhaps a substation at
Washington Square would postpone the need for capital funds. Craig Prosser mentioned that
prior to 1999, the City did an analysis of the cost of serving Washington Square and the revenues
generated. As this was prior to his working for the City, he did not know off-hand what the results
were. One thing the staff could do this summer is to take another look and see if this would
provide data leading towards a storefront. Councilor Wilson noted that in the budget document
Washington Square is one of the top 10 property taxpayers in Tigard and the enterprises may feel
they are already sufficiently paying for Police service through their taxes.
Chief Dickinson summarized what the Department would deliver for the funds budgeted:
- A full service Police Department;
Answer all calls;
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Decrease crime by working with and educating youth;
Work with citizens and businesses in crime prevention;
Community policing;
Streamline hiring, improve retention;
Update policy to gain accreditation;
- Reduce lawsuits; and
Maintain commitment to traffic safety.
Mark Haldeman asked for an update for the approved positions from last year. The positions were hired
and have gone through the academy. Unfortunately, the Department lost a few officers to other agencies.
Two officers have gone to Portland Police Department, which pays more than Tigard. Tigard's pay scale
is equivalent to cities with similar population.
Mark also asked for an explanation for the Professional and Contract line item increase of$48,000. This
is due to contract services to support and maintain the many databases used within the Department, plus
the connections to other agencies databases. This year the Department is adding 25 MDCs. The
Department requests two part-time, contracted positions for installation of the hardware and software.
The upgrade of the MDCs is required by federal mandates for encrypted communications. The Small
Tools and Equipment line item includes$156,500 for portable radios which are contingent upon receiving
federal grants. This also includes a contracted position to improve the crime analysis function.
Councilor Woodruff asked if no changes were made, how much would the budget increase over last year.
Mark Haldeman estimated that if vehicles were not replaced and the grant-contingent expenditures were
removed, the increase would be approximately$200,000.
Sue Yesilada asked about the 30% increase in costs for the additional benefits from FY 2004-05 and
FY 2005-06. Chief Dickinson stated that the cost for the additional two FTEs is approximately$150,000.
Craig Prosser stated the sworn Police Officers are the only City employees that are members of PERS
and there was a pension contribution rate increase of about 14%that contributes to the overall benefits
increase.
Finance: Tom Imdieke, Interim Finance Director, presented the Finance Department budget. The total
Department budget is up 4.7%and actually one of the smaller City Departments at 6%of the City's total
operating budget.
The Finance Department is composed of Finance Administration. This Division has 3 FTEs—Finance
Director, Management Analyst, and Administrative Assistant. Finance Administration is responsible for
debt management, business tax, special assessment billings, financial forecast and budgeting, financial
analysis, and franchise management.
The City has been working in cooperation with other cities in Oregon in putting together a regular program
of auditing the franchised utilities to insure they are paying the full amount due to.the City. The PGE audit
resulted in a payment of$300,000. The Northwest Natural audit is still ongoing; however, the audit is not
finding many discrepancies. Qwest and Verizon are putting up a lot of resistance and progress is slow.
Katie Schwab asked if the City would be impacted by the utilities asking the State to create a new bill
allowing them not to pay franchise fees. Craig Prosser said yes, the City would be affected. He
mentioned that HB 3353, which was written by telecommunications industry, would prohibit all fees and
charges. The bill appears to be dead at this time.
The second division is Financial Operations, which handles Utility Billing, Payroll, Purchasing,
Accounting, and Cash Investments. Staff remains constant. The increase in the budget is mainly due to
the licensing and maintenance costs for the accounting software. Travel&Training is up in anticipation
of several new modules of the existing financial software being added in FY 2005-06. The mailing and
receipting of utility bills has been outsourced to Clark County Public Utilities. This saves the Department
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from having to purchase new equipment and hire additional staff to handle the increase in utility bills.
Also, the mailing of the utility bills has been outsourced.
Administrative Services is listed in two sections; one is Office Services. This Division contains the City
Recorder, switchboard, central mail facility, website support, desktop publishing, room reservations,
clerical support, records and file management, and copier maintenance.
The other part of Administrative Services is Municipal Court. This includes parking and minor traffic
citations, limited misdemeanors, municipal code violations, and the City's youth court.
Overall there are no changes in the total FTE in the proposed budget. The function of City Recorder was
transferred to Office Services during the fiscal year and absorbed in the FTE count for that section.
Factors affecting the budget include the need to replace a high capacity printer in Utility Billing. Over
108,000 utility bills are printed every year along with late notices. The printer is over five years old and is
experiencing significant maintenance and performance problems. It is recommended it be replaced.
Another factor affecting the budget is the anticipated increase in postage. This affects the Office Services
Division that does the bulk mailings on a citywide basis as well as the Financial Operations Division
because of utility bill mailings. The impact is calculated to be well over$3,500.
There are also some smaller increases to meet the contract terms for an outside auditor, maintenance
fees for the financial software, and the contract with the Municipal Court Judge.
The Department has included additional training dollars for the City Recorder and for staff, if additional
financial software modules are implemented.
With the exception of Municipal Court,which is funded through the General Fund, the rest of the Finance
Department is funded by multiple City funds based on projected usage and budgeted in the Central
Services Fund.
Some of the major goals next year will include accepting passport applications at the City Hall front
counter. This will hopefully generate up to an additional$160,000 in revenue to the City if the program is
similar to surrounding cities. The Department is exploring the opportunity for Municipal Court to be able
to receive payment of fines for tickets or submitting explanatory letters regarding traffic citations over the
web. The Department would like to look at the possibility of grant dollars to supplement the Youth Court
operations.
Finally, there will be a high level of effort regarding financial analysis associated with the possible
formation of an urban renewal district in the City.
Sue Yesilada asked about the increase over the last few years in wages. Tom Imdieke explained that the
individual that is in the City Recorder position is a long term City employee and therefore is at a higher
step in salary. There are two other positions in a similar situation.
Councilor Harding asked about the increase in Office Expenses line item in the Financial Operations
Division. Tom Imdieke responded that this primarily relates to the increase of postage for utility bill
mailings.
Councilor Harding asked why Clark County processed the City's utility bills. Tom Imdieke responded that
after analysis, it was more cost effective to contract this with Clark County instead of investing in
equipment and staff to continue to process payments in house.
Social Services and Community Events: Michelle Wareing presented the Social Services and
Community Events budget. The policy is to set total community events and social service grants at.5%
"" of the prior year's operating budget. In addition, the City budgets two set-asides, each for$10,000. The
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emergency housing fund assists occupants of housing declared to be unsafe, and the Affordable Housing
set-aside assists providers of low-income housing. The Proposed Budget includes$122,500 for Social
Services and $51,375 for Community Events.
Several of the Social Services grant applications were not awarded at the full request amount due to the
number of requests and amount of the requests. Three Community Events—Balloon Festival, Broadway
Rose,and 4th of July are guaranteed a certain level of funding. All Community Events grants were funded
at full request.
There is a technical adjustment to reduce the amount granted to Tualatin River Keepers by$3,200 as
they originally requested funds through the Social Services and the Community Events. The Social
Services subcommittee decided to show both requests as Community Events. The request was moved to
the Community Events but was double counted in Community Events. This will reduce the total Social
Services and Community Events to$170, 675. Less the$20,000 set-asides, total Social Services and
Community Events grants will be within the goal of$151,000.
Debt Service: Michelle Wareing presented the Debt Service budget. The City has three types of debt
outstanding currently. The first one is for a general obligation bond (GO)that is paid from collection of a
special property tax levy. Assessments,which are paid with money collected from property owners in the
Local Improvement District (LID), are the second type of debt and the final type is a loan through the
Oregon Economic Community Development Department(OECDD) used to expand Cook Park. This loan
is being paid from Park system development charges(SDCs). Total Debt Service is$2,225,175 and
includes$400,000 for additional bond calls.
Public Comment: Gretchen Buehner asked what the cost of the Friday Night Music program. She would
like to see it reinstated, even if it was quarterly instead of monthly.
She would also like to set up a program for the Portland Baroque Orchestra to perform at the Library. It
was recommended the orchestra apply for a Community Events grant next fiscal year. She will provide
contact information so she can receive the application packet next year.
The Budget Committee was recessed at 8:45 PM until May 16, 2005.
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Tom lmdieke-bud e4fridayhours05 doc Pae 1 r
CITY OF TIGARD
MEMORANDUM
TO: City of Tigard Budget Committee
FROM: Margaret Barnes, Library Director
DATE: May 10,2005
SUBJECT: Friday Night Music
C: Craig Prosser, Interim City Manager
Tom Imdieke, Interim Finance Director
The Friday Night Music Program began in June 2001 when the library first opened on Friday
evenings. It was a way to raise public awareness about the extended Friday hours, as well as
enhance the overall experience for the patrons when they came to the library.
Friday Night Music was eliminated when Friday hours were reduced as a result of the failure of
the WCCLS operational levy in May 2004. The library currently closes at
5 p.m.on Fridays.
In the library's annual survey in February 2005,patrons were asked which hours they would like
the library to restore. An overwhelming majority(71%)asked for Sundays. The second highest
response was Friday evenings(19%). When the library is able to restore additional hours, Friday
evenings would receive strong consideration. Friday Night Music would be an excellent way to
once again attract patrons back to the library on those evenings.
In the meantime,the Library continues to provide musical programs for adults,children and
families. Like other Library programs,the intent of our cultural programming is not only to
entertain but also to educate. The goal is to schedule these programs when the library is open so
that the audience can use the library to learn more about the music they are experiencing.
General Fund
Recap of Enhancements by Department
Total
Total Current Operating
Transfers In Revenues Transfers Out Expenditures Use of
Current (Operating with Operating (Operating with Transfers Fund
Budget Revenue Support Only) Transfers In Expenditures Support Only) Out FTE Balance
FY 2004/05 Adopted $16,405,935 $2,145,314 $18,551,249 $16,409,209 $3,198,056 $19,607,265 265.2
FY 2005/06 Status Quo $17,091,900 $2,353,897 $19,445,797 $17,264,410 $3,664,287 $20,928,697 265.2 ($1,482,900)
FY 2005/06 Proposed $17,091,900 $2,385,250 $19,477,150 $18,145,495 $3,682,422 $21,827,917 269.2 ($2,350,767)
FY 2005/06 Enhanced
Portion of Proposed Budget $0 $31,353 $31,353 $881,085 $18,135 $899,220 4.0 ($867,867)
Police Department $391,408
Library $150,257
Long Range Planning $255,102
Parks $32,000
Street Maintenance $3,000
Public Works Administration $36,100
$867,867
CITY OF TIGARD
Community Development
Shaping A Better Community
MEMORANDUM
CITY OF TIGARD
TO: Mayor Dirksen, City Council, and Budget Committee
FROM: James Hendryx, Director of Community Developmen
�r
DATE: May 16, 2005
SUBJECT: Urban Services and Urban Services TIF Funds
There have been concerns expressed by some residents of unincorporated Bull
Mountain that the City is being subsidized by development in that area. The purpose of
this memorandum is to clearly demonstrate that the City is not subsidized in any way by
the services provided through the Intergovernmental Agreement (IGA) between the City
and Washington County. It provides a brief overview of the IGA, describes the services
rendered, explains how the funds are collected and accounted for in the Urban Services
Area, as well as the process through which the funds are budgeted and expended to
provide the services required by the agreement.
OVERVIEW
Tigard and Washington County entered into an Intergovernmental Agreement (IGA) in
1997 in which the City provides development related planning, building, and engineering
services to portions of unincorporated Washington County, primarily including Bull
Mountain and a small portion adjacent to the Tualatin River. The agreement period was
for a five-year period and was renewed in 2002. The agreement is fiscally neutral for the
City and is totally supported by fees and charges assessed for work performed.
The IGA is based on long term policies and agreements with Washington County, Clean
Water Services, King City, and Beaverton which identify Tigard as being the long-term
service provider for the area. It has helped advance policy development with the
County on eventual annexation of Tigard's entire Urban Services Boundary and
potentially including Bull Mountain and Metzger in the update of Tigard's
Comprehensive Land Use Plan. Likewise, Tigard's lead role for the planning and
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ultimate annexation of the two areas recently brought into the Urban Growth Boundary
(Areas 63 and 64) are under discussion.
REVENUE COLLECTIONS IN THE URBAN SERVICES AREA
The Urban Services Fund: In order to track activity levels, revenue, and expenses,
the City created a separate fund for the Urban Services Area. The fund is identified as
the Urban Services Fund within the City of Tigard budget. All revenues and expenses
to this fund are tracked through the budget via this fund. In the beginning,
intergovernmental revenue was transferred from the County to the City for initial start up
costs in recognition of additional service demands and to provide funds for street
maintenance. Beginning in Fiscal Year 2001-02, the transfer of funds from County to
the City was no longer necessary.
The Urban Services Traffic Impact Fee (TIF) Fund: The City of Tigard has been
collecting the County TIF in the Urban Services Area since 1997 when the original IGA
was executed. Those collections included the Walnut Island and ancillary islands. The
City continues to collect the TIF in the Urban Services Area.
ACTIVITY LEVELS
As within the City, activity levels within the URB fluctuate yearly. Significant changes
can occur at the program level monthly. Over the course of the IGA when activity levels
have been high within the City, they have been lower in the URB and vise versa.
Numerous land use applications have been processed over the last several years.
Several subdivisions are nearing completion, awaiting building permits.
Although the activity level through this fiscal year has dropped from previous years,
there are some upcoming substantial projects. The majority of them are single-family
subdivisions with the exception of the Alberta Rider School. Overall, the URB fund
revenues are projected to increase next fiscal year approximately 8% over the current
fiscal year.
The Urban Services TIF revenue likewise fluctuates with development within the Urban
Service Area. The net revenue is sometimes less than the computed charges because
of the TIF credits that are awarded upon request for improvements performed (as part
of their land use conditions) by developers on collectors and arterials.
USE OF URBAN SERVICES REVENUES
Urban Services Fund Revenues: The Urban Services Fund tracks all revenues
associated with development in the Urban Services Area. This fund covers the costs for
the corresponding Building, Engineering, and Planning services in the area. With the
exception of FY 1999-00 when the County provided additional funding because costs
were exceeding revenues, the URB program has been a self supporting fund. A majority
of the revenue over the years has consisted of building permit revenue to the Building
Division.
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The total operating budgets for Engineering, Current Planning, Community
Development Administration, and Public Works Administration are budgeted in the
City's General Fund. The total operating budget for the Building Inspection Division is
budgeted in the Building Fund. Based upon the level of activity and expenses incurred,
funds are transferred from both the Urban Services and Urban Services TIF Fund to pay
for the services provided. The basis of the transfer is set each year during the budget
process based upon the projected level of service. In addition, both the Urban Services
Fund and Urban Services TIF Fund will be charged their portion of City support
programs that are budgeted in the Central Services Fund and Fleet/Property
Management Fund.
The activities provided by Current Planning, Building, and Engineering for the area
covered by the IGA are fully supported by permit fees within this program. These
activities are not supported by the General Fund or other funds. The charge to provide
service to this program is based on activity levels. This is monitored throughout the
fiscal year and adjusted annually.
Urban Services TIF Fund Revenues: TIF revenues in the unincorporated areas
covered by the original IGA have been collected since 1997. The collections included
the unincorporated Walnut Island area and ancillary islands. Washington County had
responsibility for maintaining and upgrading the streets in the unincorporated areas of
Walnut Island. The Walnut Island area was annexed in May 2000 and transfer of
jurisdiction for the streets in the Walnut Island (Gaarde Street, Walnut Street, and 121 st
Avenue) took place in August 2000. Those collector streets were in fair to good
condition, but were narrow, lacked shoulders and sidewalks, and needed
reconstruction, realignment, and widening to ultimate width. Prior to the annexation of
Walnut Island, the City asked the Board of Commissioners for funding assistance to
upgrade these three streets. The response from the Chair of the Board of
Commissioners is that the County would provide assistance through its MSTIP and TIF
programs for the upgrading of the infrastructure. The use of Urban Services TIF funds
for upgrading these three streets was discussed and approved in principle by the
County Engineer at that time. With those assurances, the streets were accepted as is
as part of the Walnut Island annexation.
As a result, the City has been using part of the TIF collections in the Urban Services
Area to supplement City TIF funds in upgrading Gaarde Street, Walnut Street, and
121st Avenue. Attached is a letter dated March 3, 2005 from the Tigard City Engineer to
County Commissioner Roy Rogers providing a more detailed explanation on the use of
the Urban Services TIF fund for improvements to former County roads annexed during
the term of the original IGA.
The Urban Services TIF fund is also providing the funding for the Roshak Road/Bull
Mountain road intersection safety improvement project, which is located in the still
unincorporated Urban Services Area. Any future street-related improvements using the
Urban Services TIF Fund in the Urban Services Area will be jointly approved by both the
County and the City.
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f
SUMMARY
The City provides development-related services in the Urban Services Area through an
IGA with Washington County. The revenue collected through the Urban Services and
Urban Services TIF Funds are used to support the planning, building and engineering
services provided through that agreement. The collections for each fund are tracked
and are incorporated into the City's budget for use in providing these services each
fiscal year. The effort by the City is fiscally neutral and is totally supported by fees and
charges assessed for work performed. The City recovers overhead charges from all of
its operations regardless of funding source to reflect the true costs of these operations.
Hence, both the Urban Services Fund and the Urban Services TIF Fund are charged
along with other funds for City overhead costs. The amounts identified for this support
effort are transferred into the City's General Fund and are allocated from this fund to the
Departments that provide the services and to cover the City's overhead charges. In
addition, the Urban Services TIF Fund has been used, with County approval, to
supplement City TIF funds in the upgrading of collectors and arterials that were formerly
County roads prior to annexation during the term of the original IGA.
In conclusion, the revenue collections in the Urban Services Area do not subsidize the
City operations in any way. The charges made to the Urban Services and Urban
Services TIF Funds are to fully compensate the City for the services provided and to
supplement the City's efforts to upgrade former County roads that were substandard in
width and in need of expansion to meet current and future traffic demands. The
allocations made from these funds are appropriate, are in accordance with standard
business principles and practices, and have been reviewed and audited by the City's
independent financial auditor.
Attachment
4
Revenue and Expenditure History
Urban Services and Urban Services TIF Fund
(Actual Expenditures)
Urban
Services
Fund TIF Fund Total
Current Revenue
FY 96/97 $266,357 $35,480 $301,837
FY 97/98 $476,906 $269,786 $746,692
FY 98/99 $528,084 $258,100 $786,184
FY 99/00 $675,034 $158,335 $833,369
FY 2000/01 $960,999 $563,794 $1,524,793
FY 2001/02 $682,691 $263,898 $946,589
FY 2002/03 $482,674 $231,452 $714,126
FY 2003/04 $485,618 $285,554 $771,172
Total $4,558,363 $2,066,399 $6,624,762
Total Expenditures
FY 96/97 $75,640 $0 $75,640
FY 97/98 $577,627 $24,660 $602,287
FY 98/99 $618,045 $29,521 $647,566
FY 99/00 $671,144 $30,896 $702,040
FY 2000/01 $479,417 $37,490 $516,907
FY 2001/02 $437,626 $14,840 $452,466
FY 2002/03 $449,835 $531,458 $981,293
FY 2003/04 $498,297 $638,698 $1,136,995
Total $3,807,631 $1,307,563 $5,115,194
FY 2004-05 actual informatioin will be available June 30, 2005
MEMORANDUM
TO: City of Tigard Budget Committee
FROM: Tom Imdieke, Interim Finance Direct
RE: Amendments to the FY 2005-06 Prop ed Budget
DATE: May 16, 2005
Several adjustments to the FY 2005-06 Proposed Budget have been identified during the
budget meetings. These adjustments need final decision by the Budget Committee before the
Proposed Budget is approved by the Committee. This memo lists all adjustments identified
through the May 9, 2005 meeting and some to be discussed during the May 16th meeting. We
will review these adjustments and respond to any questions prior to your final vote to approve
the budget.
Operating Budget Amendments
1. Additional Travel and Training Funding for City Council, The Mayor & Council proposed
budget includes $6,020 for three Council members to attend the National League of
Cities (NLC) conference in North Carolina. There is an opportunity for Council to attend
the Congressional City conference in Washington DC in lieu of the NLC conference.
The additional amount needed for three Council members to attend the Congressional
City conference is $722. For four Council members to attend, the additional amount
needed is $3,060. For five Council members to attend, the additional amount needed is
$5,398.
2. Parks and Grounds Division — Increase Materials & Services by $25,000
Public Works staff provided an issue paper on the Parks and Grounds Division
providing recreation grants to organizations that currently provide recreational or after
school programs. This grant program was envisioned to be a transitional plan until
funding for a broader recreation program is secured and to respond to citizens' request
for recreational programs.
3. Street Maintenance Division — Increase Materials & Services by $25,000
Public Works staff provided an issue paper on the Street Maintenance Division
providing Right of Way (ROW) grants to property owners to assist them in their
obligation to clean up/enhance their ROW frontage. This grant program was developed
to address the City Council's desire to maintain and/or enhance the ROW's in Tigard.
4. Social Services & Community Events — Decrease Materials & Services by $3,200
The Tualatin River Keepers submitted two grant applications. One was originally
submitted as a Social Services grant and the other was submitted as a Community
Event grant. The Social Services Sub-Committee referred the social service grant
submittal to the Community Events review and also reduced the amount allocated for
Social Services by the grant amount, so it could be funded as a Community Events
grant. During final proposed budget preparations, the amount to be awarded for this
grant was entered twice by Finance staff. Therefore, the amount to be awarded to the
Tualatin River Keepers need to be reduced by $3,200.
5. Social Services & Community Events — Increase Materials & Services by no more than
$5,125
On October 12, 2004, the City Council adopted a resolution establishing a Residential
Services Agency Emergency Fund. The purpose of the fund would be to address
limited, one-time or emergency funding needs for agencies that provide food and
housing services for Tigard residents in need. The amount of grant set-aside cannot
exceed five percent of the total allocated for social service grants. A total of$122,500
was budgeted for social service grants; however, $20,000 is for two existing City set-
asides. Therefore, total social service grants allocated is $102,500 and five percent of
this amount is $5,125.
6. Citywide Personal Services Budget— Decrease of $82,516
The proposed budget included a 15% increase in health benefits; however, actual rates
have been received and the increase is 14.5%. A 2% COLA was also included for
OPEU/SEIU and professional/management staff. A 2.5% COLA was used for TPOA
staff per their contract. The CPI used for calculating the OPEU/SEIU COLA requires a
2.3% increase. Professional/management staff traditionally receives the same COLA
as OPEU/SEIU staff. TPOA COLA will remain 2.5% per their contract. The net
decrease between these two changes is $82,516. The impact by fund is below.
• General Fund — ($62,796)
• Sanitary Sewer Fund — ($2,533)
• Storm Sewer Fund — ($1,777)
• Water Fund — ($4,692)
• Building Fund — ($3,533)
• Central Services Fund — ($6,345)
• Fleet/Property Management Fund — ($840)
7. Water Fund and General — Decrease revenues by $80,000 in Water Fund and
increase revenues by $80,000 in General Fund
Due to staff and workload changes, a developer fee will not longer be charged for Water
Division staff involvement in subdivision review. Instead, this review will now be
conducted by Engineering staff and the revenue will be placed in the General Fund
instead of the Water Fund.
*NW
Capital Improvement Projects Amendments
1. Water CIP Fund — Carryover of$400,000 and add an additional $648,500
This is for the cost of construction of the Aquifer Storage Recovery (ASR) well #2. It
was originally planned that the ASR well #2 would have a distribution capacity of 1.0
MGD during the summer months. After testing, it has been determined that this well
could have 2.5MGD distribution capacity. Construction of the well started later than
planned, so $400,000 of the original budget in FY 2004-05 needs to be carried over and
an additional $648,500 needs to be added. The total project cost for this well in FY
2005-06 will be $1,048,500.
2. Storm Sewer Fund — Carryover of$37,500 and an additional $47,500
This funding is for the construction of a Storm Debris Process Center, which is a joint
project between Tigard, Tualatin, and Sherwood. Due to permitting issues, this project
has been delayed and will not be completed until March 2006. The carryover of
$37,500 is the total amount budgeted in FY 2004-05. The Storm Debris project was
supposed to be included in the FY 2005-06 CIP, but due to Storm Division staff
oversight, it was not included. The $47,500 is amount that should have been included
in the FY 2005-06 Proposed budget.
To implement these adjustments, it is necessary to adjust the Resources and Requirements of
several funds. The following charts show the adjustments in each fund. Please note,
however, that in addition to the adjustments shown in the attached charts, some of these
adjustments will also cause adjustments in transfers between funds. We expect these
changes to be minor and, therefore, have not included them on the attached chart. Also, it
was assumed in the General Fund that only $722 would be added to Mayor & Council's
Travel/Training budget. If more is added, it will change the amount shown in Policy &
Administration line item under Requirements.
City of Tigard
FY 2005-06 Proposed Budget Amendments
May 16,2005
Subject to change due to the re-running of the cost allocation plan.
General Fund Building Fund Sanitary Sewer Fund Storm Sewer Fund Water Fund
Proposed I Chane I Revised Proposed Chane I Revised Proposod I Chane Revised Proposed Chane Revised Proposed I Chane I Revised
Resources
Beginning Balance $8,671,679 $0 $8,671,679 $1,619,687 $0 $1,619,687 $8,569,263 $0 $8,569,263 $1,036,459 $37,500 $1,073,959 $7,204,703 $7,204,703
Transfers In 2,681,195 0 2,681,195 389,916 0 389,916 0 0 0 0 0 0 63,701 63,701
Current Propety Taxes 9,407,474 0 9,407,474 0 0 0 0 0 0 0 0 0 0 0
All Other Revenues 7,684,427 80,000 7,764,427 1,420,406 0 1,420,406 2,257,957 0 2,257,957 1,114,500 0 1,114,500 7,537,358 (80,000) 7,457,358
Total Resources $28,444,775 $80,000 $28,524,775 $3,430,009 $0 $3,430,009 $10,827,220 $0 $10,827,220 $2,150,959 $37,500 $2,188,459 $14,805,762 ($80,000) $14,725,762
Requirements
Community Services $12,218,688 ($46,588) $12,172,100 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Public Works 2,632,492 45,524 2,678,016 0 0 0 901,944 (2,533) 899,411 878,897 (1,777) 877,120 5,254,225 (4,692) 5,249,533
Development Services 2,949,659 (8,236) 2,941,423 1,724,464 (3,533) 1,720,931 0 0 0 0 0 0 0 0 0
Policy and Administration* 344,656 (849) 343,807 0 0 0 0 0 0 0 0 0 0 0 0
General Government 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Operating $18,145,495 ($10,149) $18,135,346 $1,724,464 (3,533) $1,720,931 $901,944 (2,533) $899,411 $878,897 (1,777) $877,120 $5,254,225 (4,692) $5,249,533
Capital Improvements $0 $0 $0 $0 $0 $0 $2,990,000 $0 $2,990,000 $589,000 $85,000 $674,000 $1,130,250 $1,130,250
Transfers Out 4,515,792 0 4,515,792 399,347 0 399,347 574,619 0 574,619 411,793 0 411,793 7,337,586 0 7,337,586
Contingency 1,000,000 0 1,000,000 300,000 0 300,000 679,000 0 679,000 150,000 0 150,000 1,000,000 0 1,000,000
Debt Service&Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Budget $23,661,287 ($10,149) $23,651,138 $2,423,811 ($3,533) $2,420,278 $5,145,563 ($2,533) $5,143,030 $2,029,690 $83,223 $2,112,913 $14,722,061 ($4,692) $14,717,369
Ending Balance $4,783,488 $90,149 $4,873,637 $1,006,197 $3,533 $1,009,730 $5,681,657 $2,533 $5,684,190 $121,269 ($45,723) $75,546 $83,701 ($75,308) $8,393
Reserves for Future Requirements 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Requirements $28,444,775 $80,000 $28,524,775 $3,430,008 $0 $3,430,009 $10,827,220 $0 $10,827,220 $2,150,959 $37,500 $2,188,459 $14,805,762 $80,000 $14,725,762
*Assumes only$722 will be added for Mayor&Council Travel/Training
1
City of Tigard
FY 2005-06 Proposed Budget,
May 16,2005
Subject to change due to the re-n
Water CIP Fund Central Services Fund Fleet/Property Fleet/PropertyManagement Fund
Proposed Chane Revised Proposed I Chane Revised Proposed Chane I Revised
Resources
Beginning Balance $1,571,127 $400,000 $1,971,127 $1,314,517 $0 $1,314,517 $60,000 $0 $60,000
Transfers In 6,570,476 0 6,570,476 4,644,542 0 4,644,542 1,259,836 0 1,259,836
Current Propety Taxes 0 0 0 0 0 0 0 0 0
All Other Revenues 450,000 0 450,000 30,000 0 30,000 3,350 0 3,350
Total Resources $8,591,603 $400,000 $8,991,603 $5,989,058 $0 $5,989,058 $1,323,186 $0 $1,323,186
Requirements
Community Services $0 $0 $0 $0 $0 $0 $0 $0 $0
Public Works 0 0 0 0 0 0 1,141,988 (840) 1,141,148
Development Services 0 0 0 0 0 0 0 0 0
Policy and Administration' 0 0 0 4,109,622 (6,345) 4,103,277 0 0 0
General Government 0 0 0 417,682 0 417,682 0 0 0
Total Operating $0 $0 $0 $4,527,304 ($6,345) $4,520,959 $1,141,988 ($840) $1,141,148
Capital Improvements $2,490,493 $1,048,500 $3,538,993 $0 $0 $0 $0 $0 $0
Transfers Out 0 0 0 201,456 0 201,456 82,050 0 82,050
Contingency 373,500 0 373,500 718,625 0 718,625 90,000 0 90,000
Debt Service&Other 0 0 0 0 0 0 0 0
Total Budget $2,863,993 $1,048,500 $3,912,493 $5,447,385 ($6,345) $5,441,040 $1,314,038 ($840) $1,313,198
Ending Balance $5,727,610 ($648,500) $5,079,110 $541,674 $6,345 $548,019 $9,148 $840 $9,988
Reserves for Future Requirements 0 0 0 0 0 0 0 0
Total Requirements $8,591,603 $400,000 $8,991,603 $5,989,058 $0 $5,989,058 $1,323,186 $0 $1,323,186
`Assumes only$722 will be added for Mayi i
f
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