04/22/2013 - Minutes City of Tigard
TIGARD
Budget Committee Summary
Monday,April 22, 2013, 6:30 PM
Public Works Auditorium,Tigard, Oregon 97223
MEMBERS PRESENT (10):
Don Fisher,Marc Woodard,Melanie Boekee,Marland Henderson,Melody Graeber,John I. 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,Loreen
Mills,Assistant to the City Manager,Debbie Smith-Wagar,Assistant Finance Director,Alan Orr, Police Chief,
Dennis Koellermeier, Public Works Director, Kenny Asher, Community Development Director,Margaret
Barnes,Library Director, Sandy Zodrow,Human Resources Director, Jim DeSully,Assistant Chief-PD,Tom
Imdieke,Business Manager-PD,Michelle Wright,Business Manager-PW,Joe Barrett, Sr. Management Analyst
1. Call to Order—Temporary Chair Melody Graeber called the meeting to order
2. Introductions—Committee and staff introduced themselves. A quorum was present.
3. Role of the Budget Committee-Toby described the make-up of the committee, and the plan for the next
couple of week's budget committee meetings. The committee will have discussion and ultimately approve
the proposed budget with any changes. Majority vote must be obtained. This process takes place for the
city budget as well as the City Center Development Agency. Once the budgets are approved, the budgets
moves to the City Council for adoption.
4. Election of Officers—Melody Graeber was nominated and voted for committee President. Cameron
James was nominated and voted as Secretary.
5. City Budget Process
Marty thanked city staff for their contribution to developing the proposed budget. She indicated that there
is little change in operating funds from the recent 2013 revised budget. This year we are presenting a level,
three to five year sustainable budget. A level budget means that we can afford to provide the same services
that we are doing this year. The CIP budget is larger than the operating budget this year. That is due to the
Lake Oswego-Tigard water partnership construction. Our debt service is increasing but not because of new
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debt.We have one additional FTE in the building fund which is paid for from building fund revenue.We
have two themes in this budget: 1. Continue to control our expenditure growth and 2. Continue to look at
our responsibilities to develop, repair and maintain what we have in the future and build provisions to do
that in our financial plans.We plan to maintain our reductions over the five year forecast. Operations grow
less than 2% and we maintain a minimum fund balance of over 22%in General Fund to insure we can pay
our bill until the property tax revenue comes in November.
Changes in this budget, other than the 1 FTE increase as discussed above,is the 1%increase in solid waste
franchise fee. We used the policy guide from last year's budget committee to increase this fee. There are a
few operating investments-grant funded E-Citation machines for our police patrol vehicles and investments
in the LO/Tigard water partnership. This budget also funds priorities of the City Council and the Blue
Ribbon Task Force will focus on creating a strategic plan for the city, communicate effectively what we are
doing and focus on an economic development strategy.
The Capital Improvement Plan-proposing a budget that invests in well-maintained systems and
infrastructure. There is funding for high priority projects and completes the Parks bond purchases. We ask
the committee to fund more projects than we can deliver in one year and the projects are divided up
between Tier 1 and Tier 2.With inevitable changes and/or delays that occur,we can move quickly to fill
the void with other projects that are in the 2nd tier so as to keep projects moving forward. Further
discussion of this approach will done through an issue paper.
The message also includes some future needs of the city that are not budgeted. This includes parks
development and maintenance of the parks that were bought with the parks bond, River Terrace
infrastructure funding and city facility needs,including City Hall building wrap.
6. Financial Forecast
Toby LaFrance discussed how the forecast was created. We use previous decisions and forecast for five
years without taking any future decisions into consideration. It uses the staffing level in this budget and
doesn't include any revenue changes. We do this with the goal of a 3-5 sustainable budget.
General Fund
Most of the operations are funded here-Police,Library, Community Development,with the exception of
Building,Public Works for the most part and also includes property tax, franchise fee and business license
revenues. Other non-dedicated revenues go into this fund. Our fund balance is a little higher than last year
because at the end of FY 2012,when fiscal cuts were budgeted, departments started making their cuts at
the end 2012,resulting in a higher ending fund balance. There is adequate reserves for five years, but there
is little room for change. The forecast is very sensitive to change. The growth rate of expenditures still
exceeds the revenue growth rate. The city needs to find ways to slow growth in expenditures and address
the revenue structure of slower growth rate. There is minimal room for additional services or new services
without additional revenues or more reductions. Issues in parks development, facility needs and planning
fees can affect this forecast. Additional revenue can come into general fund when there is development,i.e.
franchise fees, development fees,planning fees, etc.
Transportation Funds
$24m in projects that include 4 priority projects and over$8.8m in pavement management projects. The
Gas Tax fund goes negative in FY 18 due to 121ST Ave. project and other items. We also have Public Works
operations in this fund, street maintenance, electrical bills for the street lights and debt service for the
Burnham St. project. We have three partially funded projects that are in the out years,not in this budget.
We will be presenting an issue paper to you that deals with the City Gas Tax fund helping the Gas Tax
fund by paying a large portion of the 121"Ave project. This would take the pressure off the Gas Tax fund.
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Parks Capital Funds
These funds can only be used in very specific ways. We are using the resources available to this fund. The
Parks fund should be at$0 at the end of the year.
Water Funds
This is the LO/Tigard Water Partnership and some of the capital related projects we have associated with
that project. The fund goes negative in 2015,whereby we will issue a 2"d bond,which was part of the
funding plan.
Sewer and Stormwater Funds
We are doing some basic projects-maintenance and repair-most are in FY 2014. In the future,we will need
address future funding for large capital projects.
Development Funds
Building funds are in this group. This is where we have added one FTE with revenues to support this
additional inspector. There have been some big projects but mainly forecast is flat until FY 2016,when
there is an upward swing due to River Terrace activity. The fund balance in building covers 9 months of
operations.
Forecast Summary
General Fund-still not healthy,but in a better place than this time last year. We still have problem where
our expenditures are greater than our revenues by the third year of our forecast, FY 2016. We have
additional work to do in our Parks area and we will have to figure out how to fund the ongoing costs of
parks and transportation. Work needs to be done on development service fees.
Three issue papers will be distributed to you before the end of tonight's meeting for discussion next week.
Also,we will collect and bring back to you any issues that are raised here, as well as bring technical
adjustments/carryover issues that were brought to us after the budget was published.
7. Public Comment
None
Budget Committee was recessed.
City Center Development Agency (CCDA) budget FY 2013-2014
• Call to Order-Melody called the CCDA budget meeting to order.
• Election of Officers-Melody Graeber was elected President and Cameron James was elected Secretary.
• Presentation of the Proposed CCDA budget-Toby
• CCDA was purposefully established with a modest size in terms of size and maximum
allowable debt it can issue.
• There has been over$20M public investment money spent.
• Accomplishments include:
o Targeted improvement grant (Symposium Coffee for example)
o Architectural design assistance
o Construction on Burnham St parking lot is about to begin
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• CCDA has two funds-Capital Projects Fund-has $546, 000 in new projects funded through city
loans from FY2012 and debt issued in FY 2014 from general fund. The other fund is the Debt
Service Fund-collects property tax increment and will make a debt payment of$361,000 prior to
end of FY 2014.
• Projects are listed in the budget document but of note is the Brownfields Initiative-helps with
redevelopment within the urban renewal area; facade improvement and public art installation
around our gateways.
• Public Comment
None
• Questions/Comments from committee
• Potential agenda item for council—extend the urban renewal district. Citizen members were
asked if they would support extending the district and most responded they thought it was too
early to consider this extension. It was recommended to wait a couple of years and see what the
economy does. Maybe ask the question every year if it's time so it doesn't get dropped.
• The City Manager said there are a variety of factors to make the increment grow-robust
economy, housing changes-turnover of housing stock that would make people want to be in the
district. We are embarking on these efforts.
• Kenny Asher, Community Development Director, said his approach is very proactive. He says
the signs are all very positive from an economy standpoint. Main street businesses are coming
into Tigard. There are positive signs and making investments to make the downtown look
better. The district is heading in the right direction,with the help of the city and Metro with
grant funds. He said down the road we may want to extend the district and maybe enlarge it.
• Recess City Center Development Agency meeting until April 29, 2013
City of Tigard Budget Committee meeting was reconvened.
1. Budget Committee questions:
• CCDA Budget—E-mail Response
o Page 291-what is the $500,000 of Urban Renewal? Should it be in the CCDA Budget
Document? Reflect multiple years investment for CCDA budget. Can this be done?
o Can we look at extending the district beyond current boundaries and 20 year time-frame?
o Explore the change in assessed value of the urban renewal district.
• City Budget—E-mail Response
o Can Building fund repay General Fund the $300,000 from FY 2010?
o Update the Building fund revenue and activity information for the committee.
o Bring back the funding chart with $instead of check marks.
o Where is the recreation funding in the 2014 budget?
o Where is the $2 million Rate Stabilization Account for the Water Bond?
o Carryover items - can we get updates on their estimated$ amounts earlier so we are more
prepared for the first quarter supplemental?
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o Healthcare-report back status of what we know regarding the full time benefit hours and 95%
level.
o Should we look at using city gas tax to pay off the transportation bond for Burnham SO
o Is there a way to automate cataloging new items in the Library to improve efficiency?
o Parks and Grounds-why are we inspecting 11 miles weekly?
o How does Tigard compare to other jurisdictions for Solid Waste Franchise fees?
o What would the impact to the General Fund be if state shared revenue went away?
o Page 371 has the fund summary for the Street Maintenance Fee Fund. Does the beginning
fund balance include the $260,000 from a FY 2013 supplemental budget?
o Why are there no FY 2012 actual costs on Page 276 for the Pavement Management Program?
• City Budget—April 291`' meeting discussion
o How has the electrical franchise fee increase been spent in the FY 2014 Proposed Budget?
2. Issue Papers:
a. City Gas Tax
b. CIP Tiers
c. Council Stipend
Liz Lutz, Confidential Executive Assistant
ATTEST: Cameron James, Secretary
The next Budget Committee meeting will he held on Monday, May 6, 2013 at the Puhlic Works
Auditorium, beginning at 6.•30pm.
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