04/20/2015 - Minutes City of Tigard
TIGARD
Budget Committee Summary
Monday,April 20, 2015, 6:30 PM
Public Works Auditorium,Tigard, Oregon 97223
MEMBERS PRESENT (11):
Don Fisher,Marc Woodard,Julie Plotz,Marland Henderson,Melody Graeber,Jason Snider, Clifford Rone,
Bill Bigcraft,John Goodhouse,Mayor John Cook, Zoe Monahan-Alternate,
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
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. Melody Graeber
was nominated and voted as Secretary.
4. Recess Budget Committee Meeting until April 27, 2015
5. Open City Center Development Agency (CCDA) FY 2015-2016 Budget—for the purpose of election
of officers. Don Fisher was nominated and voted for committee chairperson and Melody Graeber was
nominated and voted in as Secretary. CCDA budget committee recessed until April 27, 2015.
6. Budget Message-Marty Wine
The core message for this budget cycle is a question of which path do we want to follow? Our core services-
Police,Library, Community Building and Parks are all in the General Fund.While the city has worked hard to
contain the cost growth rate, costs grow at about '/z % faster than our revenues. This will eventually result in a
decline of service levels as the city continues to grow. This is the path we have been on since at least 2012.
However, the biannual citizen survey indicates that the community supports growth in all four of these core
service areas. This proposed budget gives community the choice to break the current cycle of"level"budget
and service level decline.
City of Tigard Budget Committee Page 1
This budget proposes that the Parks Department be pulled out of the General Fund as its funding source and
treat parks maintenance and development as a utility.We have a limited capacity to develop the parks that were
purchased with the $17 million Park Bond, approved by voters in 2010. Additionally, there is no capacity to
expand parks maintenance without cutting other services. A Park Utility Fee is one of the adopted
recommendations in the River Terrace Funding Strategy to help fund the regional parks in River Terrace. This
proposal will expand the concept to the entire park system. Tigard will conduct a cost of service study to
determine a way to allocate the cost of parks maintenance and development to a Park Utility Fee. The study
will take into consideration maintenance for current parks and the cost to develop and maintain future parks.
This will be available for council to consider in January, 2016.
In taking Parks out of the General Fund, council can reinvest those funds for other services,like, Police,
Library, Community Building, facility needs and/or strategic vision initiatives. The proposed budget for 2017
will consider these new ideas. The recommendation for this budget committee is to provide staff and council
with support for moving this concept forward.
7. Budget Presentation-Toby LaFrance
Historically,Tigard had a second round of reductions and have maintained level budgets since that time.
We have been able to implement some minor revenue enhancements,like franchise fee increases to allow
us to maintain core services. We will be able to maintain our core services-Police,Library opened 6 days
per week,beautiful parks and maintain vital utilities. In terms of the financial forecast,we set a base
condition-modest growth and property tax growth of 3.75-4%. In River Terrace,we have construction in
River Terrace starting in the summer of 2016 and continuing on for several years. If we take the Parks out
of the General Fund and reinvest about$1.8 million in services, our fund balance is forecasted at minimum
cash reserve without$1 million set aside.
Utility funds are stable. The capital funds are doing ok, but we are lacking in the development of Parks,
Transportation infrastructure and sewer. Our Building and development related funds are healthy.
The City Council has set 5 goals and this budget is able to move forward on each of those goals. There are
a few changes;in the Police department, there is a 1.0 FTE increase in the Commercial Crimes Unit,which
will be further discussed in an issue paper-this position is funded by an increase in the Business License fee.
There are two part-time positions added in the Circulation department of the Library to help level out the
workload done by many volunteers. In the Public Works department, there is move of Fleet and Property
Management departments to Administrative Services as they are a central service and this will move them
in to another central service area. There is a new Recreation Coordinator position to align with one of the
council goals. Also there is a creation of a Parks Utility Fund which will be discussed in depth. In
Community Development, to gear up for the increased workload in River Terrace, they are adding a
Building Plans Examiner and .5 FTE limited duration Administrative Specialist to help with maintaining
and keeping the records. There are no major changes in City Management or Finance.
Capital Improvement Plan (CIP): Staff have worked to right size the number of projects to the number of
hours the staff can spend on the CIP. They do the set-up and development of city infrastructure and CIP
projects. The Transportation section of the CIP includes finishing current projects as well as repositioning
projects to work with the Strategic Plan. Additionally we will need to find more funding for pedestrian
facilities and Main Street Phase 2. There is the creation of a Tigard Transportation SDC Fund and closing
the Transportation Impact Fee Fund which has run its course.
Within Parks, the Dirksen Nature Park needs $2.5 million in funding to develop as currently planned-some
are the street improvements and park development. The Parks Bond park acquisition will be completed and
the city is seeking funds for the Tigard Street Trail.
City of Tigard Budget Committee Page 2
Water CIP includes completion of the Lake Oswego/Tigard Water Partnership and the creation of the
Cach Reservoir for River Terrace.
Sewer CIP has limited projects until the surcharge discussed last year is implemented and the Stormwater
CIP includes a new master plan,which has not been updated in many years.The Facility project is finishing
the City Hall and Police building exterior wall repairs.
The proposed budget is fiscally responsible with responsible budgeting. There are difficulties with what we
can do long-term,however we can meet council goals and provide a few changes with a modest Capital
Improvement Plan.
8. Public Comment:
1. Scott Hancock-Tigard Library Board-Tigard Library Thursday Hours:
Would like to have the Tigard Library Thursday hours restored. Patrons have urged the hours to be
returned since the library is so well-loved and serves the public. This would also serve the needs of
the community. To just open the library on Thursday would be approximately$250,000 annually.
2. Katie Harris-Tigard Library Board and Tigard Library Foundation Board-Tigard Library
Thursday Hours
She indicated that she has heard through the patron survey and comments from patrons that they
would like to have Thursday hours reinstated. This is a strong,well-loved library. There are so many
people that use this facility. To strengthen its role in the community, the library should be open on
Thursday.
3. Linda Monahan-Tigard Library Board-Tigard Library Thursday Hours
She has been a patron for 32 years and wants to emphasize that the library is the hub of this
community and the library matters. It is the most visible service and is the only library in
Washington County that is not open 7 days per week. The patrons expressed a high degree of
satisfaction from the library. It is more important than other city services and initiatives. Patrons
have been patient for the 3 years the library has been closed. It is now asking for the city to shift
their priorities and reinstall the Thursday hours.
9. Discussion of the Proposed Budget
• Parks Utility Fee-Would the park utility fee ever go to a vote with the community members? Qulie)
a. The proposal will do a cost of service by a consultant to see what is the most equitable way to
share the cost of parks maintenance and development with the residents and business members.
The results will go to council for their consideration. They have the ability to institute utility
rates and also can refer the measure to the voters.
• Is there a plan for additional expansion for industrial businesses? (Zoe)
a. Tigard zoning map shows that most of its industrial area is in the 72'd area. The River Terrace
annexation made room for additional residential property available but the urban growth
boundary expansion would have to be done before we have increased industrial zoning, but that
would probably residential.
b. Another aspect would be redevelopment of our industrial areas-like Hunziker industrial area-
how can we put infrastructure in to allow current properties to redevelop and increase their
base through increased tax base or more employees?Right now it's through infrastructure-
roads,water, etc. That will be goal over next 5-6 years to get financing for infrastructure.
City of Tigard Budget Committee Page 3
• If we are going to look at adding gross receipts tax or other revenue generation,what is the percent of
industrial vs. residents that has paid taxes?-The indication is that the burden has shifted to residential. If
we are going to ask businesses to provide more revenue to the city, .we should determine where the
majority of the burden lies. (Clifford)
a. Toby said he shares initial concern-95% of land in River Terrace is residential. In general,
residential does not bring in as much revenue as it demands and commercial/industrial bring in
more than is required. Tigard has about a 1/3—2/3-industrial and residential split. That ratio
will be altered to bring in more residential. We will look into that and get it back to the budget
committee. The city is looking at major revenue sources and what are the demands put on the
city-working with our GIS staff and others in the city.
b. The tax burden ratio on a per capita basis is also being asked-residential vs. business-historically
to present. The city can look into this and also get this information to the budget committee.
• Does the issue paper for the Parks Utility Fee discuss proposed uses of the GF money to be freed up?
(Don)
a. The paper points out areas the money could be used-Police,Library, Community Building
(planning, development, code enforcement, etc.), Facilities and Strategic Vision initiatives. Part
of the process is for council to discuss how much the community can afford in terms of a fee
that would be on their utility bill. This will determine how much can be made available for
reinvestment for other services. The way the paper lays out the process includes council laying
out some goals that they would recommend to staff so when the FY 2017 proposed budget is
put together, those goals can be included. The budget committee would then discuss those
goals and have input. This budget committee can also make recommendations to council on
where they would like to see these resources directed, that is a possibility.
• We increased fees a few years ago,but didn't allocate those funds. We might want to carve out the
$250,000 needed to open the library on Thursday from the additional fees. (Clifford)
a. Staff will prepare an issue paper around Thursday hours for the library.
b. Comment: There doesn't seem to be a lot of public support for opening the library aside from
the library board members that spoke tonight. Citizen members of the budget committee
indicated that the library should be open on Thursday as well.
• Community room rental-wonder if bringing back this service would help offset cost of opening the
library on Thursday? (Councilor Goodhouse)
a. In 2010, during the round of cuts, staff analyzed what it costs to make rooms available and
what the fee would be to cover costs. It was determined that the cost of making the rooms
available was not cost effective. Staff will locate this study and bring it back to the committee.
• The "carve out" of$2 million that has been discussed-where would the money come from? (Councilor
Henderson)
a. The creation of the Parks Utility is a proposal that would take funding for parks maintenance in
the General Fund, and move it to a utility fund where parks maintenance and development
would be paid for as if it was utility.
• Would another revenue source, a local option levy,be on top of the property tax we receive?
(Councilor Henderson)
City of Tigard Budget Committee Page 4
a. A local option levy would be an addition to the property taxes we receive.. It's time limited and
needs to be voter approved. The levy lasts for 5 years and then needs to be approved again by
the citizens of Tigard.
b. Councilor Snider added that the local option levy seems like a lot of work and the Parks Utility
Fee is easier to administer and allows the city to fund services that need additional money.
Councilor Woodard also thinks the fee is a good, creative idea. He thinks this is one way to get
the library to open on Thursdays.
• There is money left over every year and what is the option of creating a reserve fund that would require
a vote before it's used. (Councilor Goodhouse)
a. If the budget committee wants to discuss this,we can-it's good fiscal practice. Last year, the
budget committee discussed maintaining a general fund reserve of$1 million over the minimum
cash requirement. The forecast shows that at the end of the 6`'year forecast, the $1 million is in
jeopardy. If we set aside additional funding,it would protect it. If we're putting money into the
reserve fund,it does take away from capital expenditures.
b. We need to either cut services or raise revenue to create that fund.
c. It was requested last year for an analysis to look at extra fees from telecommunication fees and
putting them into a reserve and determine where the lines would cross. The analysis showed
that we needed the revenue to keep from having the lines crossed in the wrong way-maybe it
should be discussed again.
d. $1 million extra is in essence a reserve fund. The way we budget,we assumes 95 %gets spent,
so we do create a yearly reserve.
e. The city is basically living paycheck to paycheck so we need to know where the money would
come from to put money into the reserve fund.
• In terms of development,we have no money to develop the parks land-was this not considered when
we issued the bond? In the future,will we consider ways to generate revenue to help programs be self-
sustaining, like recreation? Qulie)
f. Councilor Woodard discussed the recreation program-need a coordinator to determine the
scope of the need, etc.
g. We referenced the cost of service study earlier-the concept of creating a Parks Utility would be
to figure out the cost of the whole system-purchase, develop and maintain the land. The idea of
developing a Parks Utility is to assemble the resources and use the fund to hit the whole life
cycle and be able to pay for it.
h. When the bond was voted on, the bond language says that 80% should be used to acquire the
land and 20%to develop the land and nothing in that language on maintenance.
• Toby recapped the requests from the committee for staff to bring back to next week's meeting;
additional information on opening the library on Thursday; information about the patron survey,
citywide survey, detail about what library services would be available; discuss the reserves for the
general fund and also discuss the general practice we have implemented that have operations, capital
and debt and its impact;ratio of resident vs industrial in tax pay dollars.
• Pg. 159-water-54311-what is that? answer-it is the payment of the franchise fee for water. (Bill/Toby)
• There is not a lot of FTE movement but where there is movement, the dollars don't reflect.Answer-
there may be some increase in salaries-we are paid every 2 weeks, and this coming year we will have 27
City of Tigard Budget Committee Page 5
pay periods. Also, there is decrease in Unemployment because it went up with layoffs and it has run
through the system. (Bill/Toby)
• Building-page 185-there is a big jump in 52010-why is that? Staff will research this and return next week
with an answer. (Bill/Toby)
• In the CIP, ongoing projects for the future-is there a plan in place to fund infrastructure projects?
Answer: we are working on finishing key transportation projects; the tables that list all the projects in a
prioritization list so we stay aware of them and they don't fall off of the radar. (Zoe/Toby)
• Recreation Coordinator position-was it looked at to partner with schools or YMCA before adding a
position?Yes,we will continue to look for a partnership. It's been a longtime council goal to provide
additional recreational opportunities. Surveys also indicate that the city should help facilitate
recreational opportunities. We have been talking with the school district and it will be moving forward.
The YMCA—we are looking at a partnership with them as well. There needs to be a coordinator and
this position will help with these partnership opportunities. (Zoe/Marty/Mayor Cook)
• Oregon League of Cities indicated that regarding franchise fees-people are not using land lines and
there is more and more internet usage=there is lobbying going on to begin an internet franchise fee.
(Councilor Goodhouse)
• Councilor Snider disclosed that he now has a small financial relationship with one of the social service
grant recipients. In the future,he will not be on the sub-committee for social service grants or not
comment on that entity if they apply for funding again.
• Pg. 74-Administrative Services had a very large increase in their budget-is that correct?Answer-moving
Fleet and Property Management to Administrative Services. Public Works shows a corresponding
decline-same for their FTE.(Councilor Henderson/Toby)
The meeting was recessed at 9:OOpm.
Liz Lutz, Confidential Executive Assistant
ATTEST: Melody Graeber, Secretary
The next Budget Committee meeting will be held on Monday,Apr1127, 2015at the Public Works
Auditorium, beginning at 6.•30pm.
City of Tigard Budget Committee Page 6