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02/08/1984 - Packet M E M O R A N D U M CITY OF TIGARD TO: Budget Committee February 2, 1984 FROM: Bob Jean, City Administrator SUBJECT: February 8, 1984 Meeting The February 8, 1984 meeting agenda is attached. We will try to run the meeting in an informal study session format to provide an overview of key issues for subsequent hearings on specific budget units. Also attached for your review are the draft minutes from the January 23, 1984 Council goals workshop, minutes from your last meeting, the Annual Performance Report and the Revenue Manual. The Budget document will be hand-carried to the February 8, 1984 meeting and delivered to you at that time. Budget hearings are set as follows: 2/08/84 Overview . 2/15/84 Community Services . 2/22/84 Community Development 2/29/84 All Other . 3/07/84 Budget Committee Discussion & Recommendation 3/12/84 Council Budget Adoption & Resolution RWJ/pn (0229p) Attachments Q) co TIGARD BUDGET COMMITTEE - FEBRUARY 8, 1984 - 7:30 P.M. - STUDY SESSION AGENDA r:l FOWLER JUNIOR HIGH - FRENCH ROOM - 10865 SW WALNUT, TIGARD, OREGON 97223 a •� a E- 7:30 7:30 1. CALL TO ORDER AND ROLL CALL 7:35 2. APPROVE MINUTES - DECEMBER 7, 1983 3. REVIEW BUDGET CYCLE & COUNCIL GOALS UPDATE 7:40 4. STATUTORY UPDATE: o Rate Limitations o Sales Tax o G.O. Bond, Tax Base and Levy Implications (Senior Center, TCYS, "A" & "B" Levies & City Building. . . ) 8:00 5. BANCROFT BOND FUND STATUS AND LID PROCEDURE UPDATE 8:05 6. ANNUAL PERFORMANCE REPORT AND SERVICE LEVELS UPDATE 8: 15 7. BUDGET MESSAGE REVIEW 8:30 8. REVENUES AND EXPENDITURES SUMMARY: o Revenue Details and Revenue Manual 9:00 o Expenditures Overview and Staffing Summary (Requested and Proposed Budgets) y: 15 o Revenue-Expenditure Matrix 9:30 o Tax Base Summary vs. Approved Resources 9:45 9. CITY-WIDE PROGRAMS: o Rents & Leases vs. City Building Bond/Space Needs o Fleet Management o DP/WP Plan 10 :00 10. ADJOURNMENT (lw/0316A) t U. S T U D Y F I N D S : 14AW TLCARD COSTS ONE-THIRD LOWER! A cost study of Urban Services in Washington County communities was recently released by Portland State University's Center For Urban Studies. The study, first suggested two years ago by the City of Tigard, was funded by voluntary contributions from cities, special districts and the county. Part I of the study, based on 1981-82 expenditures, divides the budget into the following urban services: water, sewer, streets, street lighting, L.I.D. 's, urban renewal, police, fire, community development, parks and recreation, library and general administration. Part II of the study, expected this summer, will document the tax equity or fairness as to what we pay for what we get from local government. TOTAL COST COMPARISONS* Beaverton $29.80 Forest Grove $24.08 Hillsboro $19.56 Tualatin $24.09 Tigard $14.87 Cornelius $16.42 Tigard is the lowest and 34% less than the $21.34 average. Total costs include all special district and city costs. INDIVIDUAL SERVICE COST COMPARISONS* Service Average Tigard** 2 Difference Water (District**) $ 3.91 $ 2.26 42% Less Sewer Collection .92 .37 60% Less Streets 1.35 1.09 19% Less Street Lights .26 .21 19% Less Police 2.02 1.86 8% Less Fire (District**) 2.66 3. 15 18% More Parks b Rec. 1.27 .57 55% Less Library •58 .26 55% Less Administration .51 .30 41% Less Total $21.34 $ 14.87 34% Less In all service categories, the City of Tigard is middle to low in service cost. According to the 1980 Census, the Tigard average income is only 3% less than the Washington County average. In total, the Tigard community's services ] are 34% lower than city-wide averages! * Note: Costs are shown in tax rate equivalents only as a standard measure. Actual tax levies are considerably lower allowing for other revenue sources. ** City of Tigard unless Tigard Water District or Tualatin Fire District. M E M O R A N D U M CITY OF TIGARD, OREGON TO: Budget Committee February 8, 1984 FROM: Joy Martin REFERENCE: Data Processing/Word Processing Report The 1984-85 Budget includes the costs in the two lease-purchase contracts and estimated costs for a system upgrade. One lease-purchase contract expires in May 1985; the other expires in November 1985. The system upgrade is for both "upgraded" software and hardware and is primarily for accounting information. Following is an outline of key events in preparation for this enhancement: 1. In December 1982 the Automated Information Management System (AIMS) Committee was initiated for the purpose of developing a plan to improve the processing of accounting information for both the Finance Department and for city managers. 2. The A.I.M.S. Committee listed a number of projects based upon current problems with our computer system and upon user needs as expressed by special requests for information. The overall productivity of the system was of primary concern. Rough priorities were also determined by weighing the immediate and long-range costs and benefits. This listing with the priorities is attached. As can be seen from the listing, applications which are currently automated but require additional staff time to do manual tables and calculations have a high priority. Other needs are more in the area of improving decision making. 3. In January 1983, the Committee interviewed department heads and section managers to establish their current usage of the financial information, and their needs from the system to increase their effectiveness as managers. The survey concentrated on three monthly reports which were distributed to the departments. The reports were the Financial Statement, the Expenditure Summary Report , and the Line Item Expenditure Report. Following is a brief summary of the results : Financial Statement. This report is prepared manually every month, however, it has a low level of use by managers. The majority of them felt the format makes the report difficult to understand and it is not easy to use. Often the breakdowns of revenues by fund were not r *401 Budget Committee Data Processing/Word Processing Report February 8, 1984 Page - 2 - useful at the department level. For the managers who use the report, use was limited except for the managers responsible for the total budget. Suggestions are to prepare the report less frequently and to perhaps reformat or do a new report which is more directly suited for the department's needs and use. Expenditure Summary Report. This report is manually prepared using totals from the Line Item Report and the adopted budget. The level of use is frequent because it is brief, thereby giving a quick picture of the division's monthly expenditures. To increase it's usability, some recommended the control budget be used if one is being used internally, that the percentage expended be added, and that capital outlay and capital projects be separated. A similar report for revenues, by department, is needed with the expenditure report. Line Item Expenditure Report. This report is distributed exactly as it is printed from the computer system each month. It provides greater detail than the Summary Report, thereby providing the necessary information to control the expenditures. All managers use the report, finding the format and information adequate, however, it is bulkier than the Summary Report. Again, the concerns of adding 'wYrr the control budget were expressed; in addition, it increases the frequency during the end of the fiscal year. In summary, the reports were considered accurate; however, when reports have been late, confusion is created because of uncertainty as to what items are included in the month's reported activity. The other comment made by each department was to add a revenue report which is broken down by divisions and/or departments into line items the departments can control to some degree. 4. In August 1982 staff developed a plan for service levels which was adopted for planning purposes. The plan showed three levels of service for each department in terms of both costs and services. Level I, or Core Level, is the minimum level and yet still administer the program. Level II is basically a "trimmed" level of service which is sufficient for a short-term only since there is not enough appropriated for improvement of internal systems or for adjustments necessary due to city growth and change. Level III is the level necessary to maintain the requested level of services within reason, and to proceed further with Council goals. 5. According to the service level plan, the Finance Department, and in particular, the Accounting Section, is at a Level I. The Budget Committee and Council recognized this last year and appropriated $10,000 for enhancements to the current system. err „4woi Budget Committee Data Processing/Word Processing Report February 8, 1984 Page - 3 - 6. The City has realized a large benefit from the computer system, but in order to continue this benefit, the system (like any system) must be adapted to current needs and maintained. The costs for this continuous upgrading have been put-off; however, the long-term impacts of that decision are becoming more important. During 1983-84, over $10,000 has been spent to place an additional charge on the Utility Bills. This would have been much less if the system was designed to be more flexible in order to handle such changes. Expenditures for fixing bugs or increasing file space, etc. on the main system are increasing. In 1982-83, $1,600 was spent. This year it will be over $2,500, which does not include the final replacement of the Utility Billing program. Unfortunately, the problems which are now occurring in a couple of programs are due to some logic and code used by all the programs and will reoccur with each program, so we must do something. 7. During the calendar year 1983 we have worked with the following systems programmers: Michel Pret with Cogebec, two independent programmers, and two programmers with Solution Systems. As of this month, Mr. Pret has left Cogebec and the person handling the municipal software is not as familiar with our early version of the software; Solution Systems has gone out-of-business; one independent does not specialize as much as needed in the Wang MVP; and the other independent is not reliable due to physical illness or to over-extending himself. On a more positive note, we have been attempting to locate other software packages for our equipment and needs. Cogebec has sold marketing and support services in the U.S, to Ernst and Whinney. The advantage of this option is that data conversion costs should be reduced due to their relationship with Cogebec and their familiarity with the software. In summary, there is a desperate need in the Finance Department to upgrade the system. They are at Core Level now. Managers have additional needs which, if satisfied, will increase their productivity. We have benefitted from the decision made four years ago to automate, but many changes have occurred and we are now starting to lose that benefit. Staff is in the process of reassessing staff needs and determining the costs and benefits. If extensive changes in the reporting system are necessary to add the flexibility, an "upgrade" in hardware will be needed in addition to the software. We have obtained preliminary quotes from Ernst and Whinney on this option and the figures in the budget are based upon these estimates. JM/pn (0243p) r M PRIORITIZED NEEDS FOR THE A.I.M.S. COMMITTEE January, 1983 APPLICATIONS TO IMPROVE EFFICIENCY Priority 1 Done to Date (2/84) . Sewer Billing Application . in progress . Assessment Billing Application . hold • Encumbrances . completed . Reports Study . hold . Functional Assignments . in progress • Programmer . continuously in progress . Report File Expansion . completed as needed • Analyze Costs/Benefits . hold Priority 2 Done to Date (2/84) . Payment Cycle . analysis is in progress . Chart of Accounts, Subaccounts . completed . Split of Projects Money - cash and bond . hold . System Outline - existing and planned . hold . Report Formats - existing and planned . hold APPLICATIONS TO IMPROVE EFFECTIVENESS Priority 1 Done to Date (2/84) . Multi-Year Project Reports - System hold . Bond Register Application hold • Personal Services Forecasting hold . User's Manual hold Priority 2 Done to Date (2/84) . Budget Information - Reports by Levels hold . Complete Financial Reports (with budgets, project, transfers) hold . Revenue Matrix hold Priority 3 Done to Date (2/84) . Costs by line item across programs hold . Sewer Connection Charges . Sewer Reimbursement Agreements • Cash Flow - Cash Management hold • Forecasting hold • Financial Analysis hold (0244p)