05/18/2019 - Summary n
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Budget Committee Summary
Saturday,May 18,2019, 8:30 AM
04 Town Hall,Tigard, Oregon 97223
MEMBERS PRESENT (10):
Stephanie Veal,Clifford Rone,Tim Cadman,Chris Bence,Leah Voit,Liz Newton,Heidi Lueb,Jason Snider,
John Goodhouse,Tom Anderson
MEMBERS ABSENT (1):
Chelsea Nance
STAFF PRESENT:
Marty Wine-City Manager,Kathy Nyland-Assistant City Manager,Toby LaFrance-Finance and Information
Services Director,Kathy McAlpine-Police Chief,Kenny Asher-Community Development Director,Dana
Bennett-Human Resources Director,Nadine Robinson-Central Services Director,Halsted Bernard-Library,
Michelle Wright-Assistant Public Works Director,Steve Kang-Finance,Liz Lutz-Finance,Tom McGuire-
Assistant Community Development Director,Sammy Naluai-Public Works,Lisa Shaw-Police,Lori Faha-Public
Works,Laura Barrie-Public Works,Sean Farrelly-Community Development
1 Convene City of Tigard FY 2019-2020 Budget Committee Meeting—
Introductions/Housekeeping items-committee introduced themselves and committee
chair commented on housekeeping items (microphone usage,bathroom location,etc)
• Budget Message-Mary Wine
s City is financially stable with constrained resources and service level challenges.
+ Last year, the Budget Committee approved and council adopted the first of two
budgets with$5 million dollars of sustainable reductions over the next two years.The
savings creates a reserve for the first five years and we'll use the reserves for the next
ten years (through 2029).
• Tigard will implement the planned second year of reductions,which will be less than
expected because of the savings created by the city and decisions made by the City
Council and Budget Committee.Also,we are spending less-holding positions vacant,
etc.We revised our financial forecast when estimates didn't match actuals.
i` Based on the recommendation of our advisory board and staff,we changed how we
allocate utility billing costs to Parks and Recreation.The elimination of the Recreation
was planned in 2019-2020;however,the additional savings and revenue will allow the
program to continue at its 2016 level, funded by the Park and Recreation Fee.
Moving forward,we will continue to improve our financial stability by implementing
the recommendations made during a performance audit, and make more data-
informed decisions.
City of Tigard Budget Committee page 1
This proposed budget will meet the new council goals, focused on development in
our city centers, grow responsibly and engage the community. We will update our
enterprise systems to help maintain our public assets and invest in data and business
process improvement.Our non-general fund departments will be constrained by their
long-term revenue outlook.Additionally,we will be investing in major capital projects
in the 2019-2025 timeframe in streets, parks, water, and sanitary sewer and
stormwater.
Council goals are directing work toward another local option levy proposal in 2020,
focused on public safety needs.
• Financial Forecast-Toby LaFrance
v Due to managing the city's finances according to national governmental accounting
standards,we have financially clean audits.
■ As an organization,we make financial decisions to live within our means and with a
long-term view of the consequences of our decisions.
• We have healthy reserves; some comes from developer fees and from making fiscally
sound decisions. We will begin using the Service Level Reserve in the General Fund
in 2021 to keep our service levels constant, matching population growth in our
community.
• Growth in River Terrace and throughout the city is providing resources through the
payment of System Development Charges.These are collected when building permits
are paid and are intended to pay for the impact that new development creates on our
roads,parks and water system.
• The Capital Improvement Plan is heavy on bridge replacements and sidewalks,which
will fully utilize the city gas tax and gas tax funds.
• With the General Fund being stabilized from a financial standpoint, the adequacy of
our service levels still needs to be addressed. Only a major revenue source can address
the needs. This is why the city will pursue a local option levy in May 2020. In addition
to this need, the upcoming issue will be with our various utilities. There are service
needs in Parks and changes to the Park and Recreation Fee that will be needed to
fund the services. Sewer, Storm and Water utilities are in various states with master
plan updates.These will be followed by rate studies and that will most likely result in
increases.
2 Public Comment
There were four citizens providing comments.
Speaker _Topic Theme
Richard Dow ntovvn Tigard Train is coming to downtown in 2027.Tigard needs to
Shavcy/Marland branding Le prepared with suffi�aent btanciing. Asking for
Flenderac)n $20,000 for banding consultant, Businesses will nead
to buy in ai well.. Neer strong image.Will try to get all
involved,including council and committees.
Dan Murphy Broadway Rose Theatre Aslung for$50,000 TLT for FY20 and$50,000 TLT in
FY21.
Deena Castielon Fsiirhaveti Rccovery 14 homes-S arc women and c',hildien and 5 trien Sent
/Lyndy Rocha Horner about 120 residents, 50 children Attach them to
outside services. Purpose is to attach peer support ti,
residents- They missed deadlines for giant fundus
requests as they were working on iestructurkng.Asking
-_-
City of Tigard Budget Committee Page 2
for $12,000 —ire the process of gettaig more houses
and serving more people. Mc,ney would be used fol
supplies-mattresses,etc.Opening a new house on 72''d-
moving from Park St.
Wayne Gross Parks and Rec Advisory Increased funding for parks maintenance.
board Encouraging the committee to approve the 2 white
papers dealing with parks maintenance. Universal
Plaza and River Terrace will also affect staff. Need
additional resources. Staff morale is affected. If the
PARE could be increased, and the general fund could
be used as there will be additional general fund dollars
from the property taxes in River Terrace.
3 Recess City of Tigard Budget Committee
4 Convene Town renter Development Agency FY 2019-20 Budget Committee
Election of 'Officers-it was moved and 2nd to elect Stephanie Veal as President and Chris
Bence as Secretary. Passed.
TCDA Budget Message-Budget Officer Marty Wine
■ TCDA includes the Tigard Triangle as well as the downtown urban renewal areas.
Primary financing for these areas is tax increment financing-this is the difference
between the assessed valuation when the district was crated and the property taxes
collected on any growth over the assessed value above the base,goes to the TCDA
to fund projects.
■ The agency successfully negotiated with its tenant to free up space for the upcoming
Universal Plaza.An agreement with a developer to build a mixed-use project on the
TCDA-owned Main Street at Fanno Creek site is moving forward.There was progress
on the Fanno Creek Overlook project,which will provide better access to natural and
recreational resources of Fanno Creek and the traiL Several businesses completed
matching grant-funded building improvements.
o Tigard Triangle Urban Renewal district is new and have a maximum indebtedness of
$188 million dollars over 35 years,but like all renewal districts,it will take a few years
to build the increment up. There is the Metro grant-funded equitable development
project is underway.
• Looking forward, the urban renewal district will fund the construction of the Tigard
Rotary Plaza portion of the Tigard Street Heritage Trail. The concept for the
Universal Plaza will be refined and design work will begin. Design and engineering
will also start on Main Street Green Street Phase 2. In the triangle, the TCDA will
provide development assistance to support a new Community Partners for
Affordable Housing 48-unit apartment building to help address the region's
affordable housing shortage.
■ Presentation of TCDA-Redevelopment Manager Sean Farrelly
■ Sean displayed a map to show where each district was located within the city limits.
■ Key accomplishments in FY2019:
• We completed a$400,000 EPA funded grant cleanup of a site on Main Street
(open field).
■ We have signed an agreement with a developer to build a mixed use building
there for AVA cafe and roasting facility on the ground floor,residential above.
City of Tigard Budget Committee �� Page 3
• We have completed site concepts and feasibility report for affordable senior
housing at the Senior Center site.This is another grant funded project.
o We managed the concept planning for the Universal Plaza and helped with
the relocation of Ferguson Plumbing.
• We provided development assistance for a couple of key triangle development
projects-Red Rock Creek Commons-affordable housing project and then on
72nd and Dartmouth-major 200+ unit mixed-use project.
* Completed 5 matching grant facade improvement tenant improvement
projects.
For FY 2020:
• Complete the Tigard Triangle planning for equitable development-we have
been engaging in community outreach has taken place to help prioritize the
projects and implement the plan equitably.
■ Senior housing at the senior center site-looking for a development partner to
construct this project.
• Refining the concept for Universal Plaza and getting design and engineering
work will be done.
• Tigard Street Heritage Trail-will likely be built this summer,along with public
restrooms
• Main Street Fanno Creek project-will make significant progress on this
redeployment.
• Fanno Creek Overlook planning-better access to the trail-hope to get design
and engineering work done on this as well.
• Service Challenges:
• Triangle-utilities in the triangle were not reported correctly to the assessor-so
we didn't get the money we anticipated.We have spoken to those utilities and
this should not be an issue in the future.
• Staffing we have limited staffing for urban renewal and the multiple projects
we have in this area.
• TCDA budget discussion
• Staffing-there is a white paper that will be presented today for an Economic
Development Manager position for 2021.
• Branding for downtown-is the TCDA involved?It's not eligible for branding dollars.
Branding would come from General Fund.TDA is interested in that branding effort
discussed earlier.
• Approval of TCDA budget
• It was moved and 2"d to approve the TCDA budget. Motion passed.
• TCDA budget committee was adjourned.
5 Reconvene City of Tigard Budget Committee
• Department Presentations
• Tigard Library-Halsted Bernard
• Key accomplishments:New teen space;enhanced collections,ran 966 programs with
over 30,000 participants; offered tax preparation assistance; managed over 15,000
hours of volunteer hours and reinvigorated our social media presence.
City of Tigard Budget Committee Page 4
• FY2020-Create a welcoming space for lobby; develop `Library of Things'; increase
our community partnerships;host a staff in-service day with the Sherwood library and
prepare for the WCCLs levy in May or November,2020.
• Challenges: Collection budget reduced by 25%; there is not enough outreach-staff is
focused on desk coverage; funding for patron-facing projects; professional
development for staff.
Police-Chief McAlpine
• Key Accomplishments: Completed a three-year strategic plan; implemented new
technology and equipment for better efficiency and effectiveness;created"Can You
ID Me?" for community engagement; received accreditation through Oregon
Accreditation Alliance.
• FY 2020: Implement online crime reporting tool; for enhanced vehicle/pedestrian
safety-photo enforcement at three intersections along H99 (red light and speed) will
be implemented;expand community outreach and engagement to support the public
safety levy/bond measure; review and implement staff restructuring to increase
efficiency and effectiveness.
• Challenges: Staffing is not adequate for the 5 city police districts; homelessness-
homeless issues that are on the rise;need for advanced training in crisis intervention
and de-escalation skills to manage behavioral health incidents, meeting the public's
need for increased traffic enforcement; addressing the demand for increased
community policing efforts.
• Finance and Information Services-Toby LaFrance
Key Accomplishments:Clean audit for prior fiscal year;earned Government Finance
Officers awards for budget and Comprehensive Annual Financial Reporting
documents;city's bond rating is Aa1;completed the update of the GIS web-mapping
application; completed the roll out of the new virtual desktop environment.
FY 2020: Run the audit and budget processes for the city; provide support for the
upcoming levy and bond measures; coordinate TCDA borrowing; staff two new
positions in Information Technology to help the city replace aging enterprise systems,
starting with asset management system in Public Works; provide bilingual utility
billing service.
Challenges:Primary challenge is support for a data informed city-there is little capacity
for proactive financial analyses; do not have communications strength sorely heavily
on citywide communications and technology for communications strategies.
Central Services-Nadine Robinson
Key Accomplishments: Developed new content (Volunteer Voices and Why
Wednesday); improvcd reader board and bi-monthly newsletter to increase interest
from the public in city activities; Records received Division 17 Approval from the
state archives for achieving permanent records electronic ally; Court, along with
Police and our vendor,Conduent,developed and implemented plans for photo traffic
enforcement cases; City Hall remodel of the court,utility billing and breakroom was
completed; Fleet managed the bid process and contract for the purchase of a TVI
inspection van,replaced 8 vehicles and facilitated 6 equipment purchases.
■ FY 2020: Implement a Communications plan for the local option levy and bond that
helps get community involved as desired by the City Council; strengthen records
management program by adding a text message archival system and develop retention
City of Tigard Budget Committee Page 5
policies;begin processing photo red light citations in the Fall,2019 and photo speed
in 2020; complete the City Hall remodel project; begin implementation of the
Americans with Disabilities transition plan to remove barriers to city facilities;begin
pilot program for fleet leasing.
Challenges: Balancing resources needed for a levy and bond campaign with current
communications workload;managing bid and implementation for an ADA accessible
website;timely response to staff and public inquiries while managing the bid process
and implementation of social media archive software; preparing for photo
enforcement while providing excellent customer service;managing remodel and keep
maintenance operations running smoothly; provide timely assistance and repair for
aging vehicles and equipment.
City Management/City Attorney-Marty Wine
Key Accomplishments: Local option levy on the ballot and after it didn't pass,
implement necessary service reductions; City Attorney office created, established
relationships with all departments; made significant code review and revisions;
integrated city attorney role into the city processes.
e FY 2020: Strategic plan refresh; council goals, local option levy is planned for May,
2020; make data-informed decisions-performance audit findings and implementing
Lean, continue to review and update the Tigard Municipal Code; revise internal
processes to improve public contracting and special events permits.
Challenges:Maintain fiscal stability path;prepare for the local option levy with current
staffing;advocacy-develop state and federal agendas;continue contract for real estate
specialty work;identify fill-in attorney for absence of our City Attorney.
n Human Resources/Risk-Dana Barrett
Key Accomplishments:Implemented a diversity,equity and inclusion(DEI)initiative;
implemented a new employee recognition program; established a pay equity
implementation plan; lead bargaining for a successor SEIU contract; evaluated
Alternative Options for Worker's Compensation coverage; obtained $10K grant to
improve hearing program.
FY 2020: Update policy and procedures from an equity perspective; enhance
recruitment efforts; evaluate employee recognition& on-boarding program; bargain
a successful police contract; adjust worker's compensation program; re-design key
safety programs;offer driver safety training.
Challenges: Continue to implement DEI efforts within constrained resources;
provide high quality and engaged recruitment efforts with current staff;provide core
competency and professional development training with current staffing levels;
expand preventative risk management strategies and safety compliance with current
staff.
+ Community Development-Kenny Asher
Key Accomplishments: Updated development code-connectivity standards,land use
review types and criteria modernized, housing and ADUs in residential zones;
upgraded Interactive Voice Response server and eliminated Building Division hard
copy storage; developed Affordable Housing Plan and Complete Streets policy;
completed EPA grant-funded Brownfields Assessment Program; awarded $425,000
CDBG grant award for continuous sidewalk on SW Frewing St.; continued Safe
Routes to School programming at all Tigard elementary and middle schools.
City of Tigard Budget Committee Page 6
■ FY 2020: Update Washington Square Regional Center Plan;redevelopment of Seats
parcel at Washington Square; overhaul zoning for commercial and industrial areas;
implement Electronic Document Review and credit card service fees;update Tigard's
Transportation System Plan (TSP); Complete Streets Policy implementation; expand
Safe Routes to Schools program; close sale of Main Street at Fanno Creek; design
Universal Plaza to 50%;prepare Metzger School Park soccer field for construction;
manage SW Corridor light rail project;break ground on Red Rock Creek Commons
affordable housing, complete development agreement for Senior Center affordable
housing; possible adoption of Construction Excise tax for affordable housing
support.
■ Challenges: Secure funding for Safe Routes to Schools; keep up with construction
permit and inspection volume;streamline system development charges credit voucher
process;Economic Development division is not staffed to accomplish all of council
goals by 2021;parks planning and development; affordable housing.
6 Recess Budget Committee for lunch
7 Reconvene City of Tigard Budget Committee
• Public Works-lAichelle Wright
Parks and Recreation
Key Accomplishments: Hosted several successful public events; completed major
maintenance.
FY 2020: Relaunch Recreation program;maintain new parks-River Terrace, Dirksen
and downtown;completing data cleanup in asset management system.
Challenges: Maintaining parks with current staffing; implementing the ADA
transition plan;addressing aging equipment.
Wastewater and Storm
• Key Accomplishments:Added a TV van;replaced sewer cleaner;completed necessary
maintenance and culvert inventory and condition assessment.
• FY 2020:Responding to new stormwater standards;completing data cleanup in asset
management system;develop sanitary sewer master plan;work on rate studies;assess
the conditions of water quality facilities.
Challenges: Adjusting resources to meet growth and demand; managing an aging
infrastructure;working with limitations of asset management software and reporting
requirements.
Water
■ Key Accomplishments: Refined relationship with Lake Oswego water partners;
responded to emergency to 8:main break.
■ FY 2020:Update the Water Master Plan;Clean up data in asset management system;
complete rate study.
Challenges:Adjust resources to match growth and demand;manage age of infrastructure;
work within limitations of asset management sofiware.Stteets
■ Key Accomplishments: Completed successful winter road maintenance; carried out
pavement management program.
FY 2020:Finish summer paving;maintain new streets in River Terrace;clean up data
in asset management system.
City of Tigard Budget Committee Page 7
• Challenges: Address backlog of street maintenance needs; respond to ADA
Transition plan outcomes;deal with the affordability of street lights
Overall limitations include;park maintenance is staff constrained;asset management
software is limited; facility space remains an issue; growth of infrastructure brings
demand for staffing resources;rate adjustments are needed.
Capital Improvement Plan-Lori Faha
+ Key Accomplishments: Over 40 active projects; completed 9 active projects; filled
key project management vacancies.
• FY 2020: 23 projects will be completed, including Tigard Street Heritage Trail,
Transportation Safety Action Plan, City Hall remodel and Fanno Creek Trail
Alignment study. Will continue or start approximately 15 projects-Universal Plaza,
121"Ave Bike lanes/Sidewalks,Frewing Street Sidewalk,etc.
+ Challenges: Potential reduced bandwidth because of non-CIP initiatives; funding
needs from master planning efforts; major projects may require alternative project
delivery; space limitations for new staff; continued cost escalation & new
environmental requirements.
8 White Paper Discussion
i. Photo Enforcement Program Expenses and Revenues-Chief McAlpine,Lisa Shaw
and Nadine Robinson-it was moved and 2' to approve the staff recommendation of
investing the first tier of revenues in excess of program expenditures towards debt
service, once that amount is determined. Then any revenues (in excess of program
expenditures and debt service), are used for traffic safety program expenses. Motion
passed.
ii. Economic Development Staffing-Kenny Asher. It was moved and 2"d to hire an
Economic Development Manager for this fiscal year,as well as fund$30,000 to evaluate
and plan for the Urban Renewal plan, $30,000 to update the Leland downtown
redevelopment report,and$25,000 to help with transit authority studies. It was 2°a and
passed.
iii. Park Maintenance Deferred Budget-Michelle Wright and Steve Martin
It was moved and 2nd to approve parks deferred maintenance by increasing the budget
as proposed by$285,000 and ask council to raise the PARF by$1.02. It was approved
by a vote of 7 yes and 2 abstain.
iv. New Park Maintenance-Michelle Wright and Steve Martin
Budget Committee agreed to revisit new park maintenance at a later time.
v. Resources for Exploring a Local Option Levy and Facilities Bond-Nadine
Robinson
It was moved and 2nd to approve the staff recommendation of spending $107,000
($60,000 is carried forward from FY 2019,and$47,000 is a one-time expenditure from
General Fund)Motion passed.
vi. Urban Growth Services-Tom McGuire-this paper is informational only. Once an
agreement is made, city staff will come to counsel to add appropriate staffing for the
project.
City of Tigard Budget Committee Page 8
9 Budget Committee for Deliberation and Approval
a. Discussion
i. Broadway Rose request for Transient Lodging Tax funding:
It was moved and 2nd to fund the Broadway Rose theatre for$50,000 for two
years by the TLT,provided it's eligible.Motion passed.
ii. Fairhaven Recovery home-$12,000 request-it was decided not to fund this
request.
b. Public Hearing on State Revenue Sharing-Toby
It was moved and 2"d to receive state revenue sharing.Motion passed.
c. Debt Service and Levy Property Tax Rate
It was moved and 2"d to levy property tax at the rate of$2.5131 and levy debt service
of$2,385,600. Motion passed.
d. Approve FY 2019-20 City of Tigard Budget
It was moved and 2"d to approve the FY 2019-20 budget with adjustments:
Add $220,000 to the Community Development budget for 1 positon and $85K
professional services
• Add$285,000 for parks deferred maintenance
■ Add$107,000 for the Communications plan for the local option levy and bond
■ Add$50,000 from TLT to Broadway Rose for their building campaign,provided it's
eligible.
Motion passed.
The meeting was recessed at 4.35pm.
AAZf A
Liz Lutz,Finance DeparYnent
ATTEST: t:6- r t e,Secretary
City of Tigard Budget Committee Page 9