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05/15/2006 - Packet Tigard Budget Committee 2006 REVISED (Note:Items not completed at scheduled meeting will be held over to following meeting) May 15,2006 6:30 p.m. TWD Auditorium 8777 Burnham • Call to Order • Approval of Minutes • Discussion of Department Budgets o Police ■ Issue Paper# 11- Vehicle Replacement ■ Issue Paper# 12- Overtime • Technical Adjustments • Final Decisions • Public Comment • Approve Budget • Process Debriefing • Role of Budget Committee in mid year • Budget Committee Schedule for FY 2006-2007 • Adjourn (Note: If agenda not completed,items will be carried over to May 22,2006 meeting) +Wires' x � � 5 City of Tigard, Oregon Allow Budget Comn-iittee Meeting Minutes May S,2006 Members Present: Craig Dirksen,Mark Haldeman, Sally Harding,Kevin Luby, Rick Parker,Katie Schwab,Sydney Sherwood,Jason Snider,Nick Wilson, and Susan Yesilada. Members Absent: Tom Woodruff. Visitors:Pat Biggs,Gretchen Buehner,Rich Carlson,Daniel Ness,Tim Ness, Eric Weiring,John Rawley,Laura Hansen,Tanner Elllerson,Matt Minzghar,Trever Ellernson,Margaret Ellenson,Sean Beveal, Connie Ramackus, Tyler Nelson, Chip Terhune,Dana Terhune, Garrett Rawley, Scott Bankhead,Tanner Green,Porter Green,Mark Merklin, Steven Merklin, Tonia Bankhead,Sammy Carlson,Simon Dumont,Dan Richards,Shannon Richards, and Marco Cabanillas. Staff Present: Tom Coffee, Carissa Collins,Maureen Denny, Gus Duenas, Tom Imdieke, Gary Lampella, Craig Prosser, Bob Sesnon,and Michelle Wareing. Approval of Minutes: Sydney Sherwood moved for approval of the minutes of May 1,2006. Nick Wilson seconded the motion. The minutes were approved.MSP As agreed at the last meeting,Public Comment was held for supporters of the Skate Park Several visitors spoke for approximately 20 minutes explaining what they have accomplished. They urged the Budget Committee to continue to provide financial support for the Skate Park Community Development: Tom Coffee presented the budget for Community Development. He is the Interim Director for Community Development and has been with the City since September 2005. The budget is up 2.2% overall. Administration is up by 5%, Current Planning increased by 1.5%, Long Range Planning has decreased by 6%,and Building Inspection increased by 5.2%. The Building Inspection budget includes two new positions which have been eliminated due to the terminated agreement with Washington County to provide urban services. With the two cancelled positions,the budget is actually down overall by 1%. There is a technical adjustment of$110,035 to remove the two new positions from the budget. There is a$10,000 carryover requested for contracted services in the Building Division for software and computer work that will not be spent in this fiscal year. There is a new position for an Administrative Specialist position in Long Range Planning. Long Range Planning has not had administrative clerical support and planners are doing that work With the Comprehensive Plan update and amount of public outreach the City wants to do,there is a lot of clerical work Jason Snider asked how much revenue will decrease as a result of the cancelled agreement with Washington County. Tom Imdieke stated the impact would be a reduction of approximately $300,000 per year. Tom Coffee stated the agreement with the County to terminate services on Building Inspections takes place on June 1,2006. The City has committed to the county that any application that is submitted by that date will be plan reviewed and inspected in the field through the Allow final inspection.This can take a year or longer. The City will be carrying over some of the work and some of the revenue to cover these costs. With the contract being terminated on June 1,2006 for 1 � 1 new inspections,there will be up to 227 active cases that will need to be finished by the Building Inspection Division. Any remaining revenues in the Urban Services Fund would have to be dedicated to complete these inspections. Craig Prosser said the City is still in discussions with the County on the details of the transition. There are two funds tracking the revenues and expenses associated with the urban services area,Urban Services Fund and Urban Services TIF. Once the transition is complete,the fund balance for these funds will be returned to the County. Nick Wilson asked when fees are updated. Michelle Wareing stated the fee schedule will be presented to Council on June 13`h. Nick Wilson asked if it was possible to temporarily remove the fee for individual residents to annex into the City. He felt the fees could be a barrier for those who would like to annex. The current cost for an individual residence to annex is $2,337. Since it is the City's long standing policy to encourage people to join the City,he feels the fee should be reviewed. Sydney Sherwood asked if the budget should be adjusted to reflect the removal of the fee. Craig Prosser stated if the Council and the Budget Committee are interested,the Master Fee resolution could be adopted in June,removing the fee with an effective date of January 1,2007 for a specified period of time. Engineering: Tom Imdieke stated there was an error in the proposed budget document. On page 181,the proposed budget should reflect an additional$70,000 in the Vehicle line item for replacement of three vehicles. This is a technical adjustment. Gus Duenas presented the Engineering and Street Lights budgets. There are 15.5 positions in Engineering,there are no new positions this year. The overall increase in the budget is 9%. Of this increase, 7.5% are for two items. The Hansen payment management module was purchased, however it was not able to be deployed due to issues with servers and a needed power supply upgrade to the Niche. The road system re-rating also needs to be completed.. Gus Duenas is recommending hiring a consultant for$30,000. This would allow the rating to be completed in three weeks rather than trying to use Public Works staff and paying over-time. The rating needs to be completed this summer so the Street Maintenance Fee can be reevaluated. The other major increase is the replacement of the three older vehicles. Gus Duenas is also asking for a reclassification of an Engineering Tech II position to a Senior Engineering Tech. The Community Investment Program has a heavyworkload. The Engineering Department will work with companies to provide additional staff as part of the contract. Once the project is over, there will be no need for additional staff. Sally Harding asked about the Travel/Training expenses. The training is necessary for new staff. The AutoCAD training has decreased,however,the size of the staff has increased. Training has been held to a minimum in past years and the Department is trying to catch up. Kevin Luby asked what type of vehicles were being purchased for replacements. Gus Duenas stated the vehicles were Astro vans that allowed inspectors to cant'equipment in the back. Kevin Luby also asked if Engineering had a performance audit done. His concern was the ratio of managers to staff. Mayor Dirksen asked if the manager roles were supervisory or if they actively participated in operations. Gus Duenas stated they are working managers,do in-house design,and monitor contracts,in addition to supervising staff. *40 2 a The Budget Committee had a discussion on fuel efficient vehicles. Mayor Dirksen stated that the Aftw types of vehicles any department in the City uses should be a policy issue for the Council. Craig Prosser stated the City is in the process of an energy review. The review would include heating, lighting, and fuel. The results of the review will be presented to Council which may be the time to talk about heating,lighting, and vehicles. Jason Snider asked if the City would be able to purchase electricity at bulk rates. Craig Prosser did not think the City was large enough but would double check Katie Schwab mentioned solar power and wind power could be used on a small basis. The budget for Street Lights and Signals has increased by 3% for increase in energy and maintenance costs. The budget is at the minimum level. PGE indicated that it would seek increases in power rates up to 24%. Nick Wilson asked if the street lights were metered.Most of the street lights are not metered. He suggested this may be a good place to look at for auditing. Community Investment Program: Gus Duenas presented the budget for the Community Investment Program(formerly known as the Capital Improvement Program). The Community Investment Program(CIP) is reviewed and approved each year by the City Council. The CIP for FY 2006-07 was developed through a comprehensive process involving opportunities for public input, as well as Planning Commission and City Council input,prior to submission to the Budget Committee. Highlights of the last year include completing the signalization of the Hall Blvd/Wall Street intersection;completion of two sewer reimbursement district projects, and the participation in the Walnut Street improvement project between 1215`Avenue to 135`h Avenue. Major factors affecting the budget are the limited TIF funds for major street expansion projects,the decline of the Sanitary Sewer Fund,and the limits of the Stormwater Fund. The Street Maintenance Fund continues to provide a stable source of revenue for street maintenance. In the last year,the program has made significant progress in moving ahead with the catalyst projects for the Tigard downtown. The streetscape design project is well underway and should be completed by August. The Burnham Street conceptual design has been established and will be moving ahead with design work and right-of-way acquisition in the next fiscal year. Some major projects coming up in FY 2006-07 are to initiate and complete the 99W corridor improvement and management study,flesh out the recommendations of the Greenburg Road alternatives study and develop a plan for implementation, and the extension of Wall Street to provide joint access to the Library and Fanno Pointe Condos. There are signalization projects for 108`h and Durham and Dartmouth and72nd. The program addresses growth,park land acquisition, and consolidating the Public Works staff in the Water Building. Sydney Sherwood stated she heard the Senior Center was going for funds to build a new center and asked if it made sense to put the money into seismic upgrades. Gus Duenas thought the application was for renovations but if they did build a new center the money would not be spent on the upgrades. Mark Haldeman asked for clarification on the 99W corridor study. The study,funded by a federal grant, is to look at corridor redevelopment. The study will evaluate ways to draw traffic off of 99W through alternative routes or land use changes. The City has partnered with ODOT for the study. The portion of the study funded by the grant is $176,000 with the City contributing$24,000. 3 There may be an additional$50,000 available from ODOT if the land use portion requires more work. Kevin Luby also asked about the cost of consolidating Public Works into the Water Building. They are currently doing a study on how to efficiently use the space. The intent is to eventually vacate some of the houses being used on Ash Street. The 3 to 4 acres that would be available after vacating the houses is Fanno Creek frontage. This area has been identified in the Downtown Improvement Plan for combination use as public open space and/or could also be sold for private development. Craig Prosser stated the $630,000 included a new HVAC for the building as well as seismic upgrades. The Water Building is the City's Emergency Operations Center(EOO and he has concerns if there was a major earthquake whether the EOC could be operational. Nick Wilson asked if the City had clarified ownership of the Water Building facilities. Craig Prosser's understanding is for the pipes in the ground that supply the water belongs to the jurisdiction where the pipes are located. For common assets,such as the building, it's a percentage ownership determined according to the percent of customers that are within the jurisdiction. Tigard owns the majority of the building. King City,Durham, and the Water District also own a percentage also. In the past,any improvements were made to the building were not reimbursed by the other jurisdictions. The revenues are fully accounted for in the Water Fund. The other jurisdictions receive a payment of 1% of the water sales in their jurisdiction. It was suggested the City buy the other jurisdictions out and then lease back their portion to them. Mayor Dirksen stated the City should clarify the current agreements. Kevin Luby asked why the Library parking lot extension would cost $180,000 and if it was worth the money.Rick Parker asked if the Library Projects—Houghton/Root Donations project could be used for Parking Lot Expansion. The terms of the bequest will not allow funds to be used for the parking lot expansion. The funds are dedicated to the Library and will be used for things like public art and making other similar improvements. Gus Duenas stated when the Library was built,it called for 118 parking spaces, currently there are 105. With the Wall Street realignment,the main entrance to the Library will be relocated which will allow expansion of the parking lot. This will bring it up to the minimum required by code. The current entrance was intended to be an interim entrance. The permanent location will be lined up with the book return. Some items on next week's agenda were moved forward to this meeting. Finance: Bob Sesnon presented the budget for Finance. The Department's budget is $2.1 million and has 24.1 FTE. The Department consists of Finance Administration,Financial Operations, Office Services,and Municipal Court. The majority of the Department is funded by the Central Services Fund. The exception is Municipal Court,which is funded by the General Fund. The Municipal Court has a budget of$236,000 which is about half of the revenues from fines. The Judge is contracted and the cost is reflected in Professional Services.Kevin Luby asked for a breakdown of hours for Judge and if the City has done a comparison for costs with other cities. The judge retainer is approximately$40,000 per year. Tom Imdieke will verify the information with the Court Administrator and bring additional information to the next budget meeting. 4 r Katie Schwab asked about the Travel/Training costs. The Court Administrator attends training to %W remain current with the laws,customer service training,and software training. Some training is included for the Judge. Debt Service: Michelle Wareing presented the Debt Service budget. The City currently has three types of debt outstanding: General Obligation Bonds for Library Bancroft bonds for two Local Improvement Districts—69`h Ave &Dartmouth Loan from the Oregon Economic Community Development Department for Cook Park Expansion GO Bonds are paid with property taxes. Each year the City levies a dollar amount. In FY 06-07 this will be $928,065. The County Tax Assessor then turns this dollar amount into a tax rate per thousand that is paid by property owners in the City of Tigard. As part of the Budget Approval process,the Budget Committee will have to levy this dollar amount along with the City's permanent tax rate. The City has two Bancroft Bonds outstanding. 69`h Bond was issued in June 2002. The Dartmouth 2003 Bond was issued in December 2003. This bond was issued for assessments that had been in litigation. In September 2003,the Court ruled in favor of the City. In FY 05-06, one of the property owners paid-off his share of an assessment on one property and paid-off in full the assessment on one of his other properties. In FY 06-07,the budget includes $1 million for additional bond calls. The majority of this will be used to call a large portion of the Dartmouth 2003 bond in November 2007. OECDD loan is repaid with Park SDCs. It is anticipated that if the Tigard Triangle LID# 1 creation is approved by Council in FY 06-07,the City will sell a bond anticipation note in the amount of$1,750,000. Once the construction is completed and all costs are assessed to the property owners,the City will issue a Bancroft Bond to payoff the BAN. This Bancroft Bond will then be repaid by the payments received by assessed property owners. Community Events and Social Services: The Social Services subcommittee met in March to discuss the social services grant applications and make a recommendation of the proposed amount. The City Council reviewed the Community Events applications and made their recommendation for the proposed amount. Social Services grants totaled$138,692 and the Community Events totaled$48,400. By resolution of City Council,the Broadway Rose,Festival of Balloons,and Fourth of July events, are guaranteed a certain amount each year. There are three set-asides in Social Services which are not included in the allocated amount of one half of one percent of the previous year's operating expenditures. Sally Harding asked if Family Fest could be moved from Council's budget to the Community Events budget. Craig Prosser stated it could be moved very easily. Mayor Dirksen stated that if the City is 5 going to continue to have the Family Fest, it should come out of the Social Services/Community Events budget. Sydney Sherwood voiced her concern about the validity of the information provided by the Social Services applicants. She is concerned that Neighborshare is not providing the amount and types of services listed on their application. Staff will verify the information for Neighborshare and Loaves & Fishes and report back to the Budget Committee. Sydney Sherwood suggested the application process be reviewed to ensure the funds are given to appropriate agencies. Craig Prosser suggested the application process would be a topic to be discussed at a quarterly Budget Committee meeting. Public Comment Gretchen Buehner spoke on three topics. The first referred back to the discussion about street lights. She mentioned the street lights on Walnut between 121" and 128`h have not worked for over a year. The next topic concerned the inconsistencies in the Intergovernmental Water Board contract. She urged the City to review the contract and take action. Lastly,she expressed her concern about the staffing in the Current Planning Division. Gretchen Buehner noted the high turnover for Planners and asked the City to review the pay rate offered for these positions. Tom Coffee stated the results from the recruitment process did not provide the quantity or quality of candidates he expected. The City will continue to review the compensation for these positions. The Budget Committee was recessed at 9:55 PM until May 15,2006. 6 MEMORANDUM TO: City of Tigard Budget Committee FROM: Robert Sesnon,Finance Director RE: Adjustments to the FY 2006-07 Proposed Budget DATE: May 15,2006 Several adjustments to the FY 2006-07 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 8, 2006 meeting and some to be discussed during the May 15`h meeting. We will review these adjustments and respond to any questions prior to your final vote to approve the budget. The adjustments are listed within in each of the funds that they affect. General Fund ate,, 1. Mayor& Council Division—Decrease Materials &Services by$7,065 The Proposed Budget includes a total of$16,103 for travel and training with$11,435 of it for all five Council members to attend the Congressional City conference in Washington DC. The Council has requested that this amount be reduced and that three Council members instead attend the National League of Cities conference in Reno. The cost for three Council members to attend the NLC conference is $4,370. The difference is $7,065. 2. Street Maintenance Division—Increase Capital Outlay by$70,000 Public Works staff presented a memo May 1,which stated that due to delays with the vehicle manufacturer, those vehicles that were to be purchased in FY 05-06 would not be delivered by June 30. It was requested that the funding for the vehicles for current fiscal year be carried over to FY 06-07. 3. Engineering Department—Increase Capital Outlay by $70,000 The Engineering Requested Budget had included$70,000 for vehicle replacement and was given approval by the City Manager to be included in the Proposed Budget. Due to a linking error,the amount did not appear in the Proposed Budget document. It is being requested that this amount be added to the budget as it was an error that it was left out. 4. Police Department—Increase Personal Services by$128,534 When the Proposed Budget was created, the Tigard Police Officers Association (TPOA) union was in contract negotiations. It is the practice of the City not to budget cost of living adjustments (COLAs)while contracts are being negotiated. The City and TPOA have come to an agreement and Council will be adopting the new bargaining contract on 1 May 23. It is being requested that the COLA identified in the agreement (3.2%),which will take effect on July 1,2006,be added to the budget. 5. Decrease health insurance costs in Personal Services by a total of$104,465 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. The decreases in health insurance by program are as follows: • Community Services - $74,388 • Public Works - $12,736 • Development Services - $17,583 • Policy&Administration-$3,361 6. Police Department—Increase Personal Services by$4,264 A reclassification of a Community Services Officer to a Program Development Specialist has been approved by Human Resources and the City Manager. This position currently oversees the DARE camp and Peer Court. This position will be taking over additional work related to Tigard youth from Liz Newton. 7. Mayor&Council—Decrease Materials & Services by$8,400 and Social Services/Community Events—Increase Materials &Services by$8,400 The costs related to Family Week have been included in the Mayor& Council budget as it was at the Mayor's suggestion that this event be initiated. It was requested that the costs related to this event be moved to Social Services/Community Events as Family Week is a community event. 8. Current Planning—Increase Materials &Services by$4,000 and Engineering—Increase Materials & Services by$4,000 At the May 86 meeting,Community Development staff requested that$10,000 that had been budgeted for the upgrade of the permit software,Tidemark,be carried over to FY 06-07. This project has not been started and will not be completed by June 30. Upon further investigation,it was discovered that the total project cost is $20,000 with the cost being split between Building (60%), Current Planning (20%), and Engineering(20%). Therefore,it is being requested that the Budget be increased by$4,000 for the Current Planning and Engineering Divisions respectively. 9. General Fund Additional Revenues—Increase by$46,500 The FY 2006-07 Proposed Budget included$472,500 for Fines &Forfeitures—Traffic and $32,000 for Civil Infractions. These figures have been reevaluated based on current revenues and trends and it is being recommended that Fines &Forfeitures —Traffic be increased by$42,500 for a new amount of$515,000 and Civil Infractions be increased by $4,000 for a new amount of$36,000. 2 10. General Fund Transfers Out—Increase by$287,012 ,,,.► In FY 05-06,it was budgeted that the General Fund would transfer money to Parks Capital Fund to fund the non-SDC portion of park land acquisition. It was projected that$579,513 ($342,501 —SDC and$237,012—non-SDC)would be spent on park land purchase in FY 05-06. It has now been determined that park land will not be purchased this year. It is being requested that the General Fund contribution be carried over to FY 06-07. Also,it was budgeted that park signs in the amount of$50,000 would be constructed in FY 05-06. Due to the timing and release of the new City logo, these signs will not be constructed and installed before June 30. As these signs are not SDC eligible, the General Fund needs to transfer$50,000 to the Parks Capital Fund to fund this project. 11. General Fund Beginning Fund Balance—Increase by$899,434 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $6,902,180. It is now being projected that the FY 06-07 Beginning Fund Balance will be $7,801,614. This increase is due to the projects identified above not occurring and the need to carry over the funds and updating of the revenue,expenditure, and transfer projections that were originally done in January 2006. Sanitary Sewer 1. Decrease health insurance costs in Personal Services by$4,119 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. 2. Increase Capital Outlay by$5,000 The FY 05-06 budget included$5,000 for Sanitary Sewer to share in the cost of purchasing a shoring trailer with the Stormwater and Water Divisions. Due to delays, this trailer will not be purchased in FY 05-06. It is being requested that the funds for this be carried over to FY 06-07. 3. Increase Capital Improvements by$20,000 The FY 05-06 budget included$40,000 for the Benchview Terrace Sanitary Sewer Access Road. It was projected that these funds would be fully expended in FY 05-06; however,it has now been determined that only$20,000 will be spent. It is being requested that the unspent$20,000 be carried over to FY 06-07. 4. Decrease Beginning Fund Balance by$21,031 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $7,582,200. It is now being projected that the FY 06-07 Beginning Fund Balance will be $7,561,169. This decrease is due to the updating of the revenue, expenditure,and transfer projections that were originally done in January 2006. It should be noted that the decrease would have been larger if the project funds listed above were not being carried over. 3 Stormwater Fund 1. Decrease Personal Services by$3,012 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. 2. Increase Capital Outlay by$78,000 Public Works staff presented a memo May 1,which stated that due to delays with the vehicle manufacturer, those vehicles that were to be purchased in FY 05-06 would not be delivered by June 30. It was requested that the funding for the vehicles for current fiscal year be carried over to FY 06-07. 3. Increase Capital Outlay by$5,000 The FY 05-06 budget included $5,000 for Stormwater to share in the cost of purchasing a shoring trailer with the Sanitary Sewer and Water Divisions. Due to delays, this trailer will not be purchased in FY 05-06. It is being requested that the funds for this be carried over to FY 06-07. 4. Increase Beginning Fund Balance by$100,647 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $672,770. It is now being projected that the FY 06-07 Beginning Fund Balance will be $773,417. This increase is due to the projects identified above not occurring and the need to carry over the funds and updating of the revenue, expenditure,and transfer projections that were originally done in January 2006 Water Fund 1. Decrease Personal Services by$8,418 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. 2. Increase Materials &Services by$1,200 The Intergovernmental Water Board (IWB) consists of five members and was established through an intergovernmental agreement between the cities of Tigard, Durham,and King City,and the Tigard Water District.The IWB meets once a month at which dinner meals are provided to the members. The cost of these meals was not included in the Proposed Budget. It is being requested that this cost be added to the Water Division's operating budget. *400 4 3. Increase Capital Outlay by$5,000 The FY 05-06 budget included $5,000 for Water to share in the cost of purchasing a shoring trailer with the Sanitary Sewer and Stormwater Divisions. Due to delays,this trailer will not be purchased in FY 05-06. It is being requested that the funds for this be carried over to FY 06-07. 4. Increase Beginning Fund Balance by$37,962 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $2,064,656. It is now being projected that the FY 06-07 Beginning Fund Balance will be $2,102,618. This increase is due to the project identified above not occurring and the need to carry over the funds and updating of the revenue, expenditure,and transfer projections that were originally done in January 2006 Water Quality/Quantity Fund 1. Increase Capital Improvements by$25,000 Public Works staff presented a memo May 1,which stated that the water quality facility enhancements project in the amount of$25,000 would not be completed in FY 05-06 due to extensive permitting and mitigation requirements. It was requested that the funding for the project for current fiscal year be carried over to FY 06-07. 2. Increase Beginning Fund Balance by$28,050 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $1,820,785. It is now being projected that the FY 06-07 Beginning Fund Balance will be $1,845,785. This increase is due to the water quality facility enhancement project not being completed in FY 05-06 as projected and updating of the revenue, expenditure,and transfer projections that were originally done in January 2006. Water SDC Fund 1. Increase Capital Improvements by$30,000 The FY 05-06 Budget included$50,000 for water main line oversizing and it was projected that$30,000 of this appropriation would be spent. It has now been determined that none of these funds will be spent and it is being requested that the $30,000 be carried over to FY 06-07 as it is anticipated that there will be more than the normal amount of water main line oversizing projects in FY 06-07. 2. Increase Beginning Fund Balance by$360,000 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $1,090,618. It is now being projected that the FY 06-07 Beginning Fund Balance will be $1,450,618. This increase is due to the water main line oversizing project not being completed in FY 05-06 as projected and updating of the revenue, expenditure,and transfer projections that were originally done in January 2006. 5 v Building Fund 1. Decrease Personal Services by$110,035 The FY 06-07 Proposed Budget included two new FTE positions, an Inspector I and a Plans Examiner. Since the City and the County are terminating their Urban Services Agreement, these additional positions are no longer necessary. It is being requested that they be removed from the budget. 2. Decrease Personal Services by$19,927 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. 3. Increase Materials &Services by $12,000 At the May 8" meeting, Community Development staff requested that$10,000 that had been budgeted for the upgrade of the permit software,Tidemark,be carried over to FY 06-07. This project has not been started and will not be completed by June 30. Upon further investigation,it was discovered that the total project cost is $20,000 with the cost being split between Building (609/6), Current Planning (20%), and Engineering (209/6). Therefore,it is being requested that the Budget be increased by$12,000 for the Building Division. 4. Decrease Beginning Fund Balance by$8,830 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $1,707,388. It is now being projected that the FY 06-07 Beginning Fund Balance will be $1,698,558. This decrease is due to the updating of the revenue, expenditure, and transfer projections that were originally done in January 2006. Gas Tax Fund 1. Increase Capital Improvements by$350,000 There were four projects budgeted in FY 05-06, 72"d/Dartmouth intersection,Hall Blvd. Sidewalk,Downtown Comprehensive Streetscape Design, and Burnham Street Improvement,that were projected to incur certain expenditures by June 30. It has been determined that these projects will not incur the expenditures as projected in January 2006 and it is being requested that a portion of the funding for FY 05-06 be carried over to FY 06-07. For 72"d/Dartmouth intersection - $75,000, for Hall Blvd. Sidewalk - $50,000, for Downtown Comprehensive Streetscape Design - $25,000, and for Burnham Street Improvement- $2003000. 2. Increase Beginning Fund Balance by$175,169 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be$2,352,197. It is now being projected that the FY 06-07 Beginning Fund Balance will be $2,527,366. This decrease is due to the updating of the revenue,expenditure,and transfer projections that were originally done in January 2006. 6 Traffic Impact Fee Fund 1. Increase Capital Improvements by$50,000 The FY 05-06 Budget included $200,000 for the Durham Rd/108`''Ave Intersection Signalization project. It was projected that$50,000 of this appropriation would be spent in FY 05-06. It has been determined that no costs will be incurred in FY 05-06. It is being requested that the $50,000 be carried over to FY 06-07 and added to the existing proposed project cost of$150,000. 2. Increase Capital Improvements by$30,000 It is planned that in the summer/fall of 2007,a traffic light will be installed at the intersection of Main Street and Tigard Street. The cost of construction will be included in the FY 2007-08 budget. However,the design of the signalization project will need to begin in spring 2007. The cost of design was not included in the Proposed Budget. It is being requested that$30,000 be added to budget for the design of this project. 3. Decrease Beginning Fund Balance by$122,686 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $2,737,076. It is now being projected that the FY 06-07 Beginning Fund Balance will be $2,614,390. This decrease is due to the updating of the revenue, expenditure, and transfer projections that were originally done in January 2006. Facility Fund 1. Increase Capital Improvements by$49,000 The FY 06-07 Proposed Budget includes $26,000 for the Library Site Monitoring project. It has been determined that the cost for this project will most likely exceed the proposed amount. It is being requested that the project amount be increased to $75,000, which would require a$49,000 increase. 2. Increase Beginning Fund Balance by$82,500 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $1,309,696. It is now being projected that the FY 06-07 Beginning Fund Balance will be $1,392,196. This increase is due to the updating of the revenue,expenditure,and transfer projections that were originally done in January 2006. Parks Capital Fund 1. Increase Capital Improvements by$629,513 and Increase Transfers-In by$629,513 The FY 05-06 Budget included appropriations for the purchase of park land. It was projected that$579,513 of the appropriation would be spent. It has now been determined that park land will not be purchased in FY 05-06. It is being requested that this amount be carried over to FY 06-07. The$579,513 expenditure will be paid for with transfers-in from the Park SDC Fund,$342,501,and the General Fund, $237,012. This amount will be added to park land purchase proposed project of$579,513 for a total of $1,159,026 for park land purchase in FY 06-07. 7 The FY 05-06 Budget also included $50,000 for park signs. Due to the timing and release of the new City logo, these park signs will not be constructed or installed by June 30. It is being requested that this amount be carried over to FY 06-07. The Park signs project is not SDC eligible, so it will be funded by a transfer-in from the General Fund, $50,000. 2. Increase Beginning Fund Balance by$50,960 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $292,256. It is now being projected that the FY 06-07 Beginning Fund Balance will be $343,216. This increase is due to the updating of the revenue, expenditure, and transfer projections that were originally done in January 2006. Parks SDC Fund 1. Increase Beginning Fund Balance by$358,528 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $2,276,826. It is now being projected that the FY 06-07 Beginning Fund Balance will be $2,635,354. This increase is due to the updating of the revenue, expenditure, and transfer projections that were originally done in January 2006 2. Increase Transfers-Out by$342,501 The FY 05-06 Budget included appropriations for the purchase of park land. A portion of the park land purchase is SDC eligible and funds were budgeted to be transferred from the Parks SDC Fund to the Parks Capital Fund to pay for the SDC portion. It has been determined that park land will not be purchased in FY 05-06. It is being requested that this transfer-out be carried over to FY 06-07 to fund the SDC eligible portion of the park land purchase project. Central Services Fund 1. City Management—Decrease Materials & Services by$845 The City Management Proposed Budget includes a total of$10,232 for travel and training with $2,375 of it for the City Manager to attend the Congressional City conference in Washington DC. The City Manager has requested that this amount be reduced and that he instead attend the National League of Cities conference in Reno at a cost of$1,530. This will decrease Travel&Training by $845. 2. Decrease Personal Services by$19,192 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly. 3. Increase Beginning Fund Balance by$74,990 When the Proposed Budget was created,it was projected that the FY 06-07 Beginning Fund Balance would be $1,016,600. It is now being projected that the FY 06-07 8 a Beginning Fund Balance will be $1,091,590. This increase is due to the updating of the revenue, expenditure,and transfer projections that were originally done in January 2006 Fleet/Property Management Fund 1. Decrease Personal Services by$3,692 When the Personal Services costs including health insurance costs were calculated it was assumed that health insurance costs would increase by about 15%,which is what the City has experienced over the last few years. The City has received preliminary information from its insurance provider and it is expected that health insurance rates will not increase as significantly Other Fund's Beginning Fund Balance Besides the change in Beginning Fund Balances mentioned throughout this memo, there are other fund's whose Beginning Fund Balances are being projected to change due to the updating of the revenue, expenditure,and transfer projections that were originally done in January 2006. These funds are listed below. Fund Proposed Chane Approved Bancroft Bond Debt Service $1,560,910 $4,729 $1,565,639 Criminal Forfeiture $58,131 $4,800 $62,931 Electrical Inspection $242,340 $10,131 $232,209 General Obligation Debt Service $243,200 $3,512 $239,688 `mow Street Maintenance Fee $366,896 $6,396 $373,292 Traffic Impact Fee—Urban Services $645,700 $165,347 $811,047 Underground Utility $105,000 $16,000 $121,000 Urban Services $380,200 $111,446 $491,646 Water CIP $8,257,932 $458,510 $8,716,442 To implement the adjustments listed above by fund,it is necessary to adjust the Resources and Requirements of the 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 the indirect transfers between funds. We expect these changes to be minor and,therefore,have not included them on the attached chart. +err 9 City of Tigard FY 2006-07 Proposed Budget Adjustments May 15, 2006 Subject to change due tore-running of the cost allocation plan General Fund Sanitary Sewer Fund Stormwater Fund Proposed Chane Approved Proposed I Change I Approved Proposed Chane I Approved Resources Beginning Balance $6,902,180 $899,434 $7,801,614 $7,582,200 ($21,031) $7,561,169 $672,770 $100,647 $773,417 Current Property Taxes 10,050,860 0 10,050,860 0 0 0 0 0 All Other Revenues 8,501,643 46,500 8,548,143 1,512,500 1,512,500 1,147,000 0 1,147,000 Transfers In 2,650,042 0 2,650,042 0 0 0 0 0 Total Resources $28,104,725 $945,934 $29,050,659 $9,094,700 ($21,031) $9,073,669 $1,819,770 $100,647 $1,920,417 Requirements Community Services $12,385,678 $66,810 $12,452,488 $0 $0 $0 $0 $0 Public Works 2,920,148 57,264 2,977,412 804,341 881 805,222 861,639 79,988 941,627 Community Development 2,973,048 60,417 3,033,465 0 0 0 0 0 Policy and Administration 367,191 (18,826) 348,365 0 0 0 0 0 General Government 75,000 0 75,000 0 0 0 0 0 Total Operating $18,721,065 $165,665 $18,886,730 $804,341 $881 $805,222 $861,639 79,988 $941,627 Capital Improvements $0 $0 $0 $2,500,000 $20,000 $2,520,000 $466,000 $0 $466,000 Transfers Out 4,583,769 287,012 4,870,781 546,812 546,812 375,668 0 375,668 Contingency 1,000,000 0 1,000,000 729,600 729,600 100,000 0 100,000 Debt Service&Other 0 0 0 0 0 0 0 0 Total Budget $24,304,834 $452,677 $24,757,511 $4,580,753 $20,881 $4,601,634 $1,803,307 $79,988 $1,883,295 Ending Balance $3,799,891 $493,257 $4,293,148 $4,513,947 ($41,912) $4,472,035 $16,463 $20,659 $37,122 Reserves for Future Requirements 0 0 0 0 0 0 0 0 0 Total Requirements $28,104,725 $945,934 $29,050,659 $9,094,700 ($21,031) $9,073,669 $1,819,770 $100,647 $1,920,417 1 E City of Tigard FY 2006-07 Proposed Budget Adjustments May 15, 2006 Subject to change due to re--running of the cost allocation plan Water Fund Water Quality/Quantity Fund Water SDC Fund Building Fund Proposed I Chane I Approved Proposed I Chane I Approved Proposed I Chane I Approved Proposed Chane I Approved_ Resources Beginning Balance $2,064,656 $37,962 $2,102,618 $1,820,785 $28,050 $1,848,835 $1,090,618 $360,000 $1,450,618 $1,707,388 ($8,830) $1,698,558 Current Property Taxes 0 0 0 0 0 0 0 0 0 0 0 All Other Revenues 6,922,830 6,922,830 99,850 0 99,850 404,000 0 404,000 1,739,591 0 1,739,591 Transfers In 0 0 0 0 0 0 0 0 428,106 0 428,106 Total Resources $8,987,486 $37,962 $9,025,448 $1,920,635 $28,050 $1,948,685 $1,494,618 $360,000 $1,854,618 $3,875,085 ($8,830) $3,866,255 Requirements Community Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Works 5,772,147 (2,218) 5,769,929 0 0 0 0 0 0 0 0 0 Community Development 0 0 0 0 0 0 0 0 1,811,788 (107,962) 1,703,826 Policy and Administration 0 0 0 0 0 0 0 0 0 0 0 General Government 0 0 0 0 0 0 0 0 0 0 0 Total Operating $5,772,147 (2,218) $5,769,929 $0 0 $0 $0 0 $0 $1,811,788 (107,962) $1,703,826 Capital Improvements $859,110 $859,110 $315,000 $25,000 $340,000 $608,360 $30,000 $638,360 $0 $0 $0 Transfers Out 1,756,924 1,756,924 59,684 0 59,684 780,000 0 780,000 416,129 0 416,129 Contingency 590,000 590,000 47,250 0 47,250 91,250 0 91,250 270,300 0 270,300 Debt Service& Other 0 0 0 0 0 0 0 0 0 0 0 Total Budget $8,978,181 ($2,218) $8,975,963 $421,934 $25,000 $446,934 $1,479,610 $30,000 $1,509,610 $2,498,217 ($107,962) $2,390,255 Ending Balance $9,305 $40,180 $49,485 $1,498,701 $3,050 $1,501,751 $15,008 $330,000 $345,008 $1,376,868 $99,132 $1,476,000 Reserves for Future Requirements 0 0 0 0 0 0 0 0 0 0 0 0 Total Requirements $8,987,486 $37,962 $9,025,448 $1,920,635 $28,050 $1,948,685 $1,494,618 $360,000 $1,854,618 $3,875,085 ($8,830) $3,866,255 2 City of Tigard FY 2006-07 Proposed Budget Adjustments May 15, 2006 Subject to change due to re-running of the cost allocation plan Gas Tax Fund Traffic Impact Fee Fund FacilityFund Proposed Chane I Approved Proposed I Change Approved Proposed Chane Approved Resources Beginning Balance $2,352,197 $175,169 $2,527,366 $2,737,076 ($122,686) $2,614,390 $1,309,696 $82,500 $1,392,196 Current Property Taxes 0 0 0 0 0 0 All Other Revenues 2,801,667 2,801,667 927,800 927,800 20,000 20,000 Transfers In 0 0 0 0 1,063,000 1,063,000 Total Resources $5,153,864 $175,169 $5,329,033 $3,664,876 ($122,686) $3,542,190 $2,392,696 $82,500 $2,475,196 Requirements Community Services $0 $0 $0 $0 $0 $0 Public Works 0 0 0 0 0 0 Community Development 460,000 460,000 0 0 0 0 Policy and Administration 0 0 0 0 0 0 General Government 0 0 0 0 0 0 Total Operating $460,000 $0 $460,000 $0 $0 $0 $0 $0 $0 Capital Improvements $2,535,000 $350,000 $2,885,000 $1,450,000 $80,000 $1,530,000 $1,795,197 $49,000 $1,844,197 Transfers Out 1,507,124 1,507,124 122,434 122,434 0 0 Contingency 437,000 437,000 217,500 217,500 260,000 260,000 Debt Service&Other 0 0 0 0 0 0 Total Budget $4,939,124 $350,000 $5,289,124 $1,789,934 $80,000 $1,869,934 $2,055,197 $49,000 $2,104,197 Ending Balance $214,740 ($174,831) $39,909 $1,874,942 ($202,686) $1,672,256 $337,499 $33,500 $370,999 Reserves for Future Requirements 0 0 0 0 0 0 0 0 0 Total Requirements $5,153,864 $175,169 $5,329,033 $3,664,876 ($122,686) $3,542,190 $2,392,696 $82,500 $2,475,196 3 ' City of Tigard FY 2006-07 Proposed Budget Adjustments May 15, 2006 Subject to change due to re running of the cost allocation plan Parks Capital Fund Parks SDC Fund Central Services Fund Fleet/Property Management Fund Proposed Chane I Approved Proposed Change Approved Proposed I Chane I Approved Propos d Chane I Approved Resources Beginning Balance $292,256 $50,960 $343,216 $2,276,826 $358,528 $2,635,354 $1,016,600 $74,990 $1,091,590 $62,300 $62,300 Current Property Taxes 0 0 0 0 0 0 0 0 0 All Other Revenues 519,101 519,101 1,510,000 1,510,000 30,000 0 30,000 1,500 1,500 Transfers In 1,458,739 629,513 2,088,252 0 0 4,935,154 0 4,935,154 1,279,771 1,279,771 Total Resources $2,270,096 $680,473 $2,950,569 $3,786,826 $358,528 $4,145,354 $5,981,754 $74,990 $6,056,744 $1,343,571 $0 $1,343,571 Requirements Community Services $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Works 0 0 0 0 0 0 0 1,159,368 (3,692) 1,155,676 Community Development 0 0 0 0 0 0 0 0 0 Policy and Administration 0 0 0 0 4,409,308 (20,037) 4,389,271 0 0 General Government 0 0 0 0 519,783 0 519,783 0 0 Total Operating $0 $0 $0 $0 $0 $0 $4,929,091 ($20,037) $4,909,054 $1,159,368 ($3,692) $1,155,676 Capital Improvements $1,828,363 $629,513 $2,457,876 $0 $0 $0 $0 $0 $0 $0 Transfers Out 0 0 1,111,929 342,501 1,454,430 203,989 0 203,989 87,517 87,517 Contingency 150,000 150,000 0 0 738,500 0 738,500 95,000 95,000 Debt Service&Other 282,025 282,025 0 0 0 0 0 0 0 Total Budget $2,260,388 $629,513 $2,889,901 $1,111,929 $342,501 $1,454,430 $5,871,580 ($20,037) $5,851,543 $1,341,885 ($3,692) $1,338,193 Ending Balance $9,708 $50,960 $60,668 $2,674,897 $16,027 $2,690,924 $110,174 $95,027 $205,201 $1,686 $3,692 $5,378 Reserves for Future Requirements 0 0 0 0 0 0 0 0 0 0 0 Total Requirements $2,270,096 $680,473 $2,950,569 $3,786,826 $358,528 $4,145,354 $5,981,754 $74,990 $6,056,744 $1,343,571 $0 $1,343,571 4 ` =Munn MEMORANDUM TO: Bob Sesnon, Finance Dirctor FROM: Nadine Robimson, Admiin Services Manager RE: Budget questions related to judicial services DATE: 5/9/2006 I am following up on the questions related to judicial services. The City currently has personal services contracts with one regular judge and one pro tem judge. We have not used the RFP process to hire for judicial services. When there is a judicial vacancy the City advertises the position in the Oregon State Bar journal. After reviewing applicants' resumes and their responses to supplemental questions, several are invited for interviews. Based on the work experience, resume,supplemental questionnaire and interviews, a hiring recommendation is made to City Council. City Council then decides if they wish to appoint the candidate. (Chapter III, Section 10 of the City Charter requires that the judge be appointed by City Council.) Compensation is approved by City Council through a 144W resolution as required by TMC 2.16.020. Renewal of the personal services contract goes to City Council bi-annually. I've spoken with staff at five other courts (Beaverton,Hillsboro, Lake Oswego, Oregon City and Wilsonville) and their hiring process is similar to our. All judges are appointed by City Council and they only advertise when a judge has left or they need to add a judge. Judge O'Brien is currently paid$37,500 per year. Based on the hours he has worked so far this fiscal year I estimate he will work approximately 437 hour during the year. His hourly rate of pay will be approximately$85.76 per hour. The judge does not receive benefits. Three of the courts I spoke with do not provide benefits to their judge. Their compensation ranged from$70 per hour to $90 per hour. (The $90 per hour is an estimate from Oregon Citys court manager.). City of Beaverton's judges are salaried and are paid up to $3,692 per month. The salary is based on working 25 hours per week The judges also receive PERS, medical insurance, and vacation time. City of Lake Oswego's judge is salaried, $2830 per month for 40 to 50 hours of work, and he receives medical benefits. The courts all pay association dues for their judge and budget for their judge to attend the annual Judge's conference. If you have any other questions please let me know. c. Tom Imdieke