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04/28/2014 - Minutes City of Tigard TIGARD Budget Committee Summary Monday,April 28, 2014, 6:30 PM Public Works Auditorium,Tigard, Oregon 97223 MEMBERS PRESENT (10): Don Fisher,Marc Woodard,Julie Plotz,Marland Henderson,Melody Graeber,Tim Esau,Jason Snider, Clifford Rone,Bill Bigcraft,Mayor John L Cook MEMBERS ABSENT (1): Gretchen Buehner 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,Alan Orr, Police Chief, Brian Rager,Interim Public Works Director, Kenny Asher, Community Development Director, Margaret Barnes,Library Director,Jim DeSully,Assistant Chief-Police,Lisa Shaw,Business Manager-Police, Michelle Wright,Business Manager-PW, Sean Farrelly,Redevelopment Project Manager,Mike Stone,Public Works Engineering 1. Call to Order—Chairperson Don Fisher called the meeting to order 2. Introductions—Committee and staff introduced themselves. A quorum was present. 3. Recess of the Budget Committee-The committee was recessed to open up the City Center Development Agency (CCDA) budget committee hearing. 4. Election of Officers—Don Fisher was nominated and voted for committee Chairperson. Marland Henderson was nominated and voted as Secretary. 5. Budget Message and Presentation-Marty Wine CCDA completes Urban Renewal projects that were approved by voters in 2006. The purpose of the urban renewal district is to provide that increment of property tax revenue as it grows to pay debt to further redevelop the district. With this district,it's not relatively mature at this point. It's not very large relative to other districts relative to its debt capacity. It has authority of$22 million. In this budget,we would like to make two programmatic investments-art projects and landscaping for the beautification of downtown Tigard. The city will prepare for future redevelopment of downtown by preparing the city-owned property on Ash Street for sale for future redevelopment and also to begin the design and engineering for public space investment for Fanno Creek and Main Street. City of Tigard Budget Committee Page 1 The district is now embarking on investment in property purchase. This budget has, for the first time, to pay debt for the purchase of two properties. We will also pay for programming and targeted investments by using the loan from the city's general fund. This budget is a plan of what the city wants to do—invest in downtown future development and purchase property for future investment. 6. Public Comment-None 7. Discussion of the Proposed CCDA Budget • Questions/Comments from committee • Councilor Henderson asked about the money payback plan and process. Toby said that it's set up so that there is an intergovernmental agreement between the CCDA and the city. The city will use its full faith and credit to allow for a lower interest rate. The agreement allows for the CCDA to make the debt service payment directly,rather than channeling it through the city's general fund. There are two property transactions-one using the borrowing as described above and the other potential purchase would use available fund balance. Programming funding is done through a loan from the city and the CCDA will repay the general fund a like amount. For this budget, that amount is $254,000. • Clifford Rone asked where would the property purchased by the CCDA appear?Toby said the CCDA has not purchased property as yet. • It was moved to approve the CCDA budget. MSP 8. Adjourn the CCDA meeting 9. Reconvene and call to order the city budget committee 10. Approval of the 4/21/2014 minutes • Change the word `President' to `Chairperson' • It was moved to approve the minutes as amended. MSP 11. Public Comment-None 12. Follow up on items from the 4/21/14 meeting • In 2012 reductions to the budget included closing several city offices on Fridays and extending Monday-Thursday hours. What did we save? The City Manager,Marty Wine reported that the city is not necessarily totally closed on Friday. There are operations in the Library,Police and Public Works. City Hall and Permit Center and Public Works counter operations were closed. It was estimated that the city would save$113,202. The actual savings was $72,587. Latest survey results showed that citizens are not interested in re-opening the Friday hours. Mayor Cook also indicated that citizens are pleased with the expanded hours on Monday- Thursday. The shortfall in savings is partly due to water rate increases in the following years. Energy rates were realized. Our original assumption that some buildings would be totally closed on Fridays and that was not the case, like the Senior Center for example and Ash Street building. Savings for the City of Tigard Budget Committee Page 2 Library closure did not equate to what was anticipated because there are still staff that work on Thursdays in order to get the library items shelved. However, savings are realized in materials and services and FTE savings. • Automated Materials Handling System-what efficiencies are we anticipating with the purchase of this system? City Manager,Marty Wine reported that currently staff and volunteers do the sorting and reshelving of all returned library materials. The automated materials handling will help with the sorting part of this process. This will improve the reshelving time. We will be able to measure time savings and patron satisfaction over time with this new system. 13. Deliberation and discussion of the city budget • Toby LaFrance, Finance Director,indicated that the current proposed budget does not include the COLA for council stipend and also only has budgeted for council members that currently have elected to receive medical /dental benefits from the city. After reviewing last year's budget minutes,it shows that the budget committee agreed that going forward, COLA and budget for council medical/dental for all members should be included. To correct this omission, staff is bringing forward a technical adjustment that includes a 1.4% COLA for Mayor and council totaling$1,278, and includes an average annual plan cost of$13,930 for the medical/dental for the two members that have elected not to receive the benefit. • Citizen member Julie Plotz asked about the water revenue debt and water revenue bond as they had two different dates for the water start up. It was confirmed that the correct date is 2016 and the correction would be made for the adopted budget document. • Councilor Woodard asked about the replacement of 156 city lights with LED efficient lights-what is the cost savings to this change?Michelle Wright,Business Manager,has worked with Finance and the financial data system to determine the utility cost by building. She said the information is available and she can get it to Councilor Woodard and the budget committee. Councilor Woodard to show this due diligence to the public would be helpful. • Citizen member Clifford Rone asked about Fleet Maintenance's section of the budget where it says that the staff reductions in the FY 2010 is not sustainable as the workload indicates there is a greater need. Brian Rager, Interim Finance Director said that in 2012, they made a change in that they combined Fleet with Property Management. One supervisor worked in both areas. The majority of fleet work was contracted out. The Manager has found there are several areas that should be handled in-house. It saves the down time of the vehicles. Seasonal workers have been doing that routine work,i.e., changing fuses,lights, etc. This budget suggests we change out the seasonal worker to a full time staff person. It reduces the seasonal worker staff cost. This work should not be sent out and makes the vehicle out longer than required. • Citizen member Don Fisher asked about the stormwater fund in the forecast. There is a fund balance increase of about$5 million between 2014-15 and 2019. What is the source of this increase?Toby said the increase is not from a rate increase from the city-side. Clean Water Services may increase rates. Our CIP is light on the stormwater fund in order to be able to fund future projects. There are some long- term needed repairs and needs. One of those needs is River Terrace. There are changing requirements that will need to be met and they are expensive. We have some projected fund balance that in a year or City of Tigard Budget Committee Page 3 two will look very different as these various projects begin. Brian said there are other stormwater challenges and we need to do a good job in stormwater management.We have erosion issues as well. • Councilor Woodard asked about the staffing changes within the Police department. Chief Orr said that there were a few positions taken out of Support Services and Operations and added to the Administration department. Additionally, an Information Technology staff person was reassigned to the IT department and removed from the Police staff. 14. Technical Adjustment-Toby LaFrance • There are two technical adjustments: 1. The sewer fund study-$20,000 and the changes to the Mayor and Council budget-stipend for 1.4% COLA ($1,278) and budgeting for the medical/dental for the additional two councilors that currently aren't covered ($27,860). 15. Public Hearing on State Revenue Sharing-Toby LaFrance 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 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. Tonight's hearing is about state revenue sharing, ORS 221.770 which states we annually pass an ordinance or resolution, requesting the sharing money and have a public meeting,which is what we are doing right now. Also it states that 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 called the state revenue sharing and is budgeted at$471,528. 16. Debt Service and levy Property Tax Rate There was a motion and 2nd to levy the property tax rate of$2.5131 per$1000, and to levy the debt service of the general obligation bond of$2,386,688-MSP 17. Budget Approval with Technical Adjustment It was moved and 2nd to approve the proposed budget with technical adjustments as discussed for the fiscal year of 2014-2015-MSP It was moved and 2nd to adjourn the budget committee meeting-MSP The meeting was recessed at 8:35pm. Liz Lutz, Executive Assistant ATTEST: Marland Henderson, Secretary City of Tigard Budget Committee Page 4