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05/18/2019 - Summary n R 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