05/06/2013 - Minutes City of Tigard
TIGARD
Budget Committee Summary
Monday,May 6, 2013, 6:30 PM
Public Works Auditorium,Tigard, Oregon 97223
MEMBERS PRESENT (10):
Don Fisher,Marc Woodard,Melanie Boekee,Marland Henderson,Melody Graeber,John 1, Cook, Cameron
James,Jason Snider, Gretchen Buehner, Clifford Rone
MEMBERS ABSENT (0):
STAFF PRESENT:
Marty Wine, City Manager,Toby LaFrance, Finance and Information Services Director, Kent Wyatt, Sr.
Management Analyst,Liz Lutz, Confidential Executive Assistant,Liz Newton,Assistant City Manager, Sandy
Zodrow, Human Resources Director, Sherrie Burbank, Human Resources
1. Call to Order—Chair Melody Graeber called the meeting to order
2. Approval of Minutes from 4/29/2013-MSP
3. Public Comment
None
4. Follow up on committee requests from 4/29/13
• Budgeting of$400,000 in General Fund related to FY 2013 decision to increase franchise
fees and restore service cuts
Toby asked the committee to focus on a couple of items: 1. The $400,000 of electrical franchise fee
that was left over beyond the budgetary put backs that were done during fiscal year 2013, and the
restoration of cuts that have been made, and also put it in terms of the sustainability horizon for the
budget as a whole. We need to balance these two overall.
We took the sensitivity chart that has been used for analysis and came up with a few options for
the budget committee.
1. Accept a sustainability horizon of up to 3 years and budget additional operational expenditures
up to $400,000, or put up to $400,000 to a dedicated fund balance, (rainy day fund, etc.).
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2. Accept a sustainability horizon of up to 5 years and budget a portion of the revenue to the
following: up to $150,000 in ongoing expenditures, or made $150,000 to dedicated fund balance, or
a one-time expenditure or dedicated fund balance of up to $1.0 million.
3. To project sustainability for the longest possible horizon and using the revenue to increase
undedicated fund balance.
Staff recommendation is in line with option #3, to provide the longest sustainability horizon
possible and use the $400,000 for undedicated fund balance. This allows the proposed budget to be
sustainable for a longer timeframe.
Discussion:
✓ The budget committee all voiced support of option #3.
✓ Marty clarified that the budget committee would like the city to put option #3 into effect.
✓ If there is new revenue that comes up, Councilor Henderson would like to know of that
beforehand the first budget committee and to where the new revenue will be used.
• Mayor and Council Stipend-Liz Newton and Sandy Zodrow
Opt out idea for Health Insurance-Sandy Zodrow
City health insurance is purchased by the City/County Insurance Services (CIS) which is a
consortium of public employers in Oregon. There are about 8,000-10,000 employees involved. City
Council is recognized as employees and CIS, as the Administrator, sets the rules as how plans are
administered. One of the options is the ability for an employee to opt out of insurance. City of
Tigard allows this. However there is a rule that if an employee chooses to exercise that option, the
employer may or may not choose to provide the employee no more than $50 per month to opt out
of health insurance. The city does not do this. There is no way to exempt the city council members
from that rule as they are considered as employees by CIS. They also say that the employer may not
offer other type of benefit that is considered of value to opt out.
Mayor and Council Stipend-Liz Newton
Review of the stipend increases include stipend increase, IPads, cell phone and phone stipend and
also an auto allowance. There are four auto allowance options, ranging from$275-585 per month,
per councilor.We would like to set the increase this year and have a yearly adjustment based on the
cost of living.
There was a motion and 2nd to approve the COLA adjustment annually and go with the auto
allowance of$275 per councilor and Mayor,beginning next fiscal year, resulting in a change of
$3277 in the proposed budget. MSP
It was also recommended to budget for all councilors to be opting into insurance for FY 2015 and
that the savings would be rolled over.
5. Deliberation, discussion and potential approval of Proposed Budget?
• Technical Adjustments-Toby LaFrance
There were three technical adjustments distributed last week and now the 4`'being the adjustment
just discussed. One was to correct an error in the budget, the other was to adjust some carryover
that was already identified and also the CIP-use of city gas tax fund-72nd/Dartmouth intersection-a
onetime use $1 million in fund balance.
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Councilor Buehner asked for the carryover numbers come to council before October. Toby
committed that the one on one meetings will include the carryover information before the
supplemental budget hearing.
It was moved and 2"to approve the technical adjustments - MSP
• Public Hearing on State Shared Revenues-Toby LaFrance
The chair opened up the hearing on state shared revenues. Toby explained that the state shared
revenues are received once the city has certified that 4 of 7 services are provided. We provide 6-
police protection, street construction maintenance and lighting, sanitary sewer, storm sewers,
planning, zoning and subdivision control, and utility services. We do not provide fire protection.
The revenues equate to $1.3 million in the general fund and$2.9 million in the gas tax fund.
It was moved and 2"d that we provide the necessary services and that we accept the state shared
revenues-MSP. Hearing was closed
• Debt Service and levy Property Tax Rate
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$2,358,818-MSP
• Budget Approval with Technical Adjustment
It was moved and 2"d to approve the proposed budget with technical adjustments as discussed for
the fiscal year of 2013-2014-MSP
It was moved and 2"d to adjourn the budget committee meeting-MSP
Liz Lutz, Confidential Executive Assistant
ATTEST: Cameron James, Secretary
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