04/20/2016 - Minutes City of Tigard
TIGARD
Budget Committee Summary
Wednesday,April 20, 2016, 6:30 PM
Public Works Auditorium,Tigard, Oregon 97223
MEMBERS PRESENT (11):
Don Fisher, Clifford Rone, Quinton Harold,Nathan Rix,Bill Bigcraft,Torn Schweizer,Marland Henderson,
Marc Woodard,Jason Snider,John Goodhouse,Mayor John Cook,
MEMBERS ABSENT (0):
STAFF PRESENT:
Marty Wine, City Manager,Toby LaFrance, Finance and Information Services Director,Liz Lutz, Confidential
Executive Assistant, Carissa Collins-Sr. Management Analyst,Liz Newton,Assistant City Manager,Margaret
Barnes,Library Director; Brian Rager, Public Works Director, Kenny Asher, Community Development
Director,Alan Orr,Police Chief,James DeSully,Assistant Chief,Lisa Shaw,Business Manager, Glen Scruggs,
PD,Nadine Robinson, Central Services Director, Dana Barrett, Human Resources Director,Joe Barrett, Sr.
Management Analyst,Laura Barrie,Management Analyst
1. Call to Order—Sitting Chair Don Fisher called the meeting to order
2. Introductions—Committee and staff introduced themselves. A quorum was present.
3. Election of Officers—Don Fisher was nominated and voted for committee chairperson. Clifford Rone
was nominated and voted as Secretary.
4. Open City Center Development Agency (CCDA) FY 2016-2017Budget—for the purpose of election
of officers. Don Fisher was nominated and voted for committee chairperson and Clifford Rone was
nominated and voted in as Secretary. CCDA budget committee recessed until April 25,2016.
5. Budget Message-Marty Wine
One of the city's goals is to maintain city services while investing in becoming the most walkable,healthy
and connected city. This budget shows that our city population continues to grow,however staffing has
decreased. Maintaining service levels and investing in the vision is hard to do with this equation. Another
factor that affects our ability to maintain service levels is that Tigard has a very low permanent property tax
rate, and the cost of doing business continues to grow faster than our revenues grow..
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During last year's budget committee,I proposed and the committee approved the creation of the park and
recreation fee to give the park system development and maintenance a stable funding source. This,in turn,
freed up some general fund dollars to use to enhance some day-to-day services in the General Fund.The
council enacted a lower park and recreation fee than proposed,with a fee that would generate about$1M
annually for parks support. They discussed a preference for voters to approve a local option levy instead.
The council acknowledges that our service levels will continue to erode without creating more resources.
This proposed budget makes two requests to the Budget Committee:
1. Focus on programming$900,000 in the General Fund made available by the Parks and Recreation fee
for the upcoming fiscal year.
2. This budget recommends longer-term funding for the city's day-to-day services and facilities by
preparing an ask to voters to approve a local option (property tax) levy and a bond for facilities in late
2017.
The leadership team has put together 3 lists of city service needs that represent choices for the budget
committee to consider. The first is 12 choices for immediate investments that need to be made for the
upcoming year. These include choices to increase staffing across many of our operations and also critical
repairs needed for our facilities. The 2nd list contains needs that could be addressed through a local option levy
and capital bond,which I recommend we prepare for in the upcoming year. The 3'list has longer term
programs and services that could be handled with other funding sources or farther off in the future.
The list of immediate needs exceed the $900,000 available for allocation by more than four times. Anything not
funded in the 2016-17 budget will be considered to be included in a proposal to voters with a property tax levy
or bond.You will be asked to identify which of the 12 issues you would like to hear more about next week.
The challenges is to choose the highest priority needs and put together a request to voters to supplement our
tax rate and improve our facilities at the November 2017 election, and to make the case to the community that
Tigard can meet those service demands with an investment of new resources.
6. Budget Presentation-Toby LaFrance
Tigard has maintained a high level of fiscal responsibility with measures that have lowered costs and
increased financial stability. However, revenue growth is slower than expenditure growth. Also staffing is
down 6%while population is up 9% since 2009. With this imbalance, quality of services will decline. Toby
discussed the General Fund forecast. It assumes a property tax growth of 3.5-4.2%. Expenditures are
growing at about 4%,while revenues grow at about 3.5%. It includes River Terrace new construction of
approximately 260 homes which is additional 0.5%growth in revenues while River Terrace constructions
lasts. New construction will add about 1% to our population annually. Without additional resources, service
levels will continue to decline.
Adding in the additional$900,000 General Fund dollars generated from the Parks &Recreation fee, the
General Fund is sustainable for about 3-4 years. Budget Committee from last year felt that$400,000 should
not go to services,but aid the declining reserves each year. This idea is discussed in one of the issue papers.
Capital Improvement Plan (CIP)
Transportation: there are 21 projects in the proposed budget, totaling$37 million. They include 121'
Avenue, 6 pedestrian projects,Roy Rogers Road widening, pavement management, studies for the Tigard
Triangle,bridges and Hall Blvd, and Main St/Green St retrofit.
Parks: 21 projects at$18.7 million. Projects include 6 of 10 Dirksen Park project completions, 8
trail/pedestrian projects, and updating the Parks Master Plan.
Water: needs are funded including the end of the Lake Oswego Tigard Water Partnership.
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Sewer Fund: this fund has insufficient revenues as proposed. A sewer surcharge that council agreed to will
add approximately$1M per year,permitting full CIP projects and a positive fund balance.
Stormwater: these projects identified are largely funded. A Master Plan will be completed to determine
additional needs.
Facilities: Citywide Strategic Master Plan will be completed in FY 2017,which will provide a key step for
the Facilities Bond.
This budget enables us to be fiscally responsible; provide day to day services,which will,however, continue
to decline without significant revenue changes;implement a Capital Improvement Plan this is modest and
has several unfunded projects.
7. Public Comment:
a. Cortnie Cassell/Virginia Hall-Virginia read a letter written by Cortnie about Bull Mountain Park
The letter encouraged the committee to fund an ADA accessible trail into and around the park so
citizens with mobile or age issues are able to enjoy the park.
b. Toraj Khavoro, Chairman of Friends of Bull Mountain Park-requested $108,295 in support for the
creation of an ADA trail in Bull Mountain Park and other items.
c. Carrie Bricky-Parks and Recreation Fee-she wanted to express her concern and hope that the fee
would go directly toward Park and Recreation.
8. Discussion of the Proposed Budget
a. Budget Committee's issue paper priorities:
1. Nathan Rix-Sustain GF; Park Maintenance;homelessness (not an issue paper)
2. Councilor Goodhouse-Police Staffing;
3. Clifford Rone-Sustain GF;River Terrace;Privatization of liquor sales may be a
potential ballot issue-what would be the effect on revenues (not an issue paper)?;
Does the housing plan in the Comp Plan address homelessness?HBA lawsuit (not an
issue paper); Immediate City Campus Repair issue paper-sinking fund perhaps?
4. Councilor Snider-Police staffing,Library staffing, Recreation,Downtown Alliance,
Sustain GF; Homelessness-should it be a white paper?
5. Councilor Woodard-Recreation, Sustain GF,Police staffing,Library staffing,
Downtown Alliance,homelessness (not an issue paper)
6. Don Fisher-Police Staffing,Parks Maintenance,Recreation, Downtown Alliance,
Sustain GF
7. Councilor Henderson-Campus Repairs and Space needs
8. Papers that were not on the committee's priority listing-there was general agreement
that Analytical Support,Public Room Reservations and Permitting and Review did
not rise to the level of additional consideration.
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b. Other Discussion Items / Questions for staff:
1. Does an increase in the City Gas Tax impact the State Gas Tax revenues as implied on
page 66 of the Propose Budget Document? If so,how are the revenues impacted?
2. Is there additional financial information about how River Terrace will impact Tigard
finances?
3. What is the status of the Strategic Reserve Fund?
4. What is happening with fuel costs? Reference the information on page 85 in the
answer.
5. Is there information about what it costs to maintain ball fields and pavilions in Tigard
parks and what revenues do they generate?
6. What are the general ramifications of the unfunded Capital Improvement Program
projects?
7. Bring back information collected about 7 years ago on a local option levy.
8. There is a privatization initiative that,if approved,might affect taxation of liquor
sales. How will this impact Tigard revenues?
9. How does Tigard intend to address homelessness?
The meeting was recessed at 9:OOpm.
Liz Lutz, Confidential Executive Assistant
ATTEST: Clifford Rone, Secretary
The next Budget Committee meeting will be held on Monday, April 25, 2016a the Public Works
Auditorium, beginning at 6.•30pm.
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