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05/04/2015 - Minutes City of Tigard Budget Committee Summary Monday,May 4,2015,6:30 PM Public Works Auditorium,Tigard,Oregon 97223 MEMBERS PRESENT(11): Mayor John Cook,Don Fisher,Marc Woodard,Julie Plotz,Marland Henderson,Melody Graeber,Jason Snider,Clifford Rone,Bill Bigeraft,John Goodhouse,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,Brian Rager,Public Works Director,Michelle Wright,Assistant Public Works Director,Margaret Barnes,Library Director City Budget Committee: 1. Call to Order—Chairperson Don Fisher called the meeting to order. 2. Approval of the 4/27/2015 minutes • It was moved to approve the minutes as amended.MSP 3. Public Comment a. Linda Monahan-spoke on behalf of several neighbors in support of opening the library on Thursdays. b. Marston Smith—Would like to have the city make money available to reopen the library on Thursday. c. Jen Vasicek-spoke in support of funding the Thursday open hours for the library. 4. Follow up on Issue Papers and committee requests from 4/27/15 • Travel/Training-Liz Newton The budget includes training for the Mayor at$12,600 and each councilor has a training budget of $7,000. • Youth Advisory Council-Liz Newton The proposed budget has$10,000 in the budget to send the 2 Youth Advisory Council delegates and 1 chaperone to the youth advisory conference in Washington D.C. City of Tigard Budget Committee Page 1 • Parks Utility Fee resident/non-resident monetary breakout-Toby Budget committee doesn't set fees,but there was a question-if the parks utility fee needed to generate $2 million,how would that look? Using the Street Maintenance Fee as an example,where residents are paying 80%and we needed to generate overall$2 million,then the residents would contribute$1.6 million.We have 18,500 residential utility customers,so if they paid monthly,it would$7.20 per month. We need to do a cost of service analysis that will be done this coming year.The cost is likely to be more than the existing maintenance amount. Maintenance has been constrained by General Fund and has not expanded as park land has expanded. This is one reason we need the cost of service study. Whatever the cost turns out to be,the decision of council and the community will have to be made. If the cost of park development and maintenance exceeds the growth in number of residents paying utility fees,the dollar fee will have to go up over time. • Discuss the Issue Papers a) Budget Committee Request-Library Open Thursday hours-Carissa Based on the request,Finance has priced out the cost to reopen the library on Thursdays.The two options allows for the library to be open with minimum staffing-check out materials,use the computers and ask questions at the reference desk.2.5 FTE and M&S(materials,janitorial,etc.)- $245,000 annually.The second option is to open the library as it's open the other days of the week, with 4 FTE and appropriate Materials and Services for a cost of over$400,000 annually. There are 4 fiscal impact scenarios:1)Reopening the library in fiscal year 2017,using park utility fees;2)Open the library in fiscal year 2016,which will draw down the reserves for FY 16 before resources are available in FY 2017;3)Open the library in FY 2016,without the using the parks utility fee,which would draw down the general fund reserves;4)Consider the passage of the Washington County Cooperative Library Service(WCCLS)levy scheduled to go to voters in November,2015.If approved,Tigard will receive about$160,000 more annually beginning in FY 17 and a distribution that is expected to grow 3%annually versus the current 2%annually,which will add about$35,000 starting in FY 2016. It was decided to open the library with minimum staffing around December 1st,using option 2, dependent on the WCCLS levy passing. While opening the Library in FY 16 is not dependent on implementation of the Park Utility Fee,the Budget Committee recognized that the continued sustainability of the Thursday hours will be dependent on the General Fund resources that the fee will free up. b) Reserve Fund Development-Toby The question is whether to take the$1 million that is in the general fund,held in reserve within that fund and create a Permanent Reserve fund.Staff recommends that the budget committee approve the budget as proposed for FY 2016. The budget as proposed has the$1 million above the minimum fund balance needed for cash flow purposes as a separate component of the General Fund reserves.Finance is able to account the additional$1.0 million ending fund balance for reserve within the general fund.Our policy is to make sure there are enough reserve to get us to the next revenue collection(25%for minimum cash flow).What we have in addition to that cash flow City of Tigard Budget Committee Page 2 reserve is where the committee would like to insure they have$1.0 million to keep in the general fund. Do you want the$1.0 million reserve held within general fund or held outside of general fund?It - Formatted:List Paragraph,Indent:Left: 0.75" was recommended to hold the money within the general fund.It was suggested to can it the Strategic Investment Fund.It was moved to move$1.0 million into a separate reserve fund.The vote did not pass. It was moved to create a fund and put$500,000 into it.The motion failed. It was moved that if and when the city has additional revenue which would be freed up in the general fund due to the implementation of the Park Utility Fee,that the freed up funds be called the strategic investment fund to be discussed and directed by council and budget committee.It was 2' and passed„ Deleted:I 5. Recess the Budget Committee City Center Development Agency: 1. Call to order the City Center Development Agency(CCDA) 2. Present CCDA budget message-Marty/Toby This agency is charged with the revitalization of Tigard's downtown.We have made a few property investments within the district.The coming year doesn't have a lot of program investment,but there are ongoing program expenses and continue the Strolling Street program,as well as sight preparation for other projects. It was moved and 2°d to approve the CCDA budget with the technical adjustment for FY 2016.Motion passed. 3. The CCDA budget committee was adjourned. Reconvene the city budget committee. 1. Discussion of the Technical Adjustments-Toby If we had known these items when the budget was proposed,these would have been part of the proposed budget. a. Sanitary Sewer Fund-is missing an FTE for a Utility Worker II in Public Works.This position is evenly split between the Sanitary Sewer fund and the Stormwater fund b. This adjustment of$3500 is to pay for maintenance and utilities at 13001 Gatlin Ct.It affects the Stormwater and Fleet/Property Management funds c. General Capital Facilities fund-there has been discussion at council to develop a Facilities Master Plan,which would cost about$300,000 over a 2 year period.There is a reserve in this fund that would be used. d. This is a carry forward project that we want to make sure will be available next year in the Water CIP project. 2. Public Hearing on State Shared Revenues-Toby Deleted:I The chair opened up the hearing on state shared revenues. Toby explained that there are two allocations that we receive from the state that we discuss.One is state shared revenues and the other is City of Tigard Budget Committee Page 3 state revenue sharing.The state shared revenues is the one where we certify that we provide a certain number of services(4)-there are 7 of them and we provide 6.They are Police,Fire,street maintenance, sanitary and sewer,storm,planning and zoning and utility services. We provide all but fire.We will receive a portion of the liquor and cigarette tax distributions which is called the state revenue sharing and is budgeted at approximately$790,000 and also gas tax is close to$2.9 million. We also receive state revenue sharing per ORS 221.770,which states we pass an ordinance or resolution which requests the sharing of money and that we have a public hearing,which is this meeting,and that in order to receive state revenue sharing we must have levied property taxes in the preceding year,which we have done.We will receive a portion of the liquor tax which is over$496,000. It was moved and 2nd to receive these funds.Motion passed. 3. Debt Service and ley Property Tax Rate-Toby There was a motion and 2"d to levy the property tax rate of$2.5131 per$1000,and to levy the debt service of the general obligation bond of$2,359,678.It was moved and 2nd.Motion was passed. 4. Approve the city Budget for Fiscal Year 2016 It was moved and 2°d to approve the city budget with technical adjustments.A quick review of the budget committee adjustments: a. Commercial Crimes Unit additional officer-increase business license fees b. Pursue a sidewalk program c. Create a parks utility fund,which would be seeded by the general fund and do a cost of service study for the fund and to explore the opening of a strategic investment fund for council and budget committee to discuss and direct as part of the budget process. d. Open the library on Thursdays contingent on the WCCLS passing on about December 1s` Motion was passed. 5.Adjournment of the Budget Committe Liz Lutz,Executive Assistant ATTEST: Melody Graeber,Secretary Deleted.¶ City of Tigard Budget Committee Page 4