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.
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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
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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
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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
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