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Minutes - 01/13/1998 - COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Tape I Side A DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JANUARY 13, 1998. CONVENED. The Council met in a workshop session at 7:00 p.m. with Council President Jennings presiding. The purpose of the workshop was to discuss 1998-99 budgetary goals with the Budget Committee members and the public. ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Absent Absent Present Present Present Absent Absent StaffPresent:City Administrator Childs, Finance Director Gillespie, Public Works Director Tiwari, Police Chief Wright, Library Director Sprauer, City Recorder Tennant Budget Committee members present: David Vancil, Barbara Lucas Council President Jennings stated that this workshop was called to discuss issues of concern before the document is compiled and submitted to the Budget Committee as part of the formal budget meeting process. Administrator Childs reviewed his memo regarding anticipated additional property taxes levied by the County Assessor in tax year 1997-98. He stated that under Ballot Measure 50, the City will realize additional income in the three operational tax-supported funds. For 1997-98, it is anticipated that the Library Fund will receive approximately $40,000 more in tax revenues and the Park & Recreation Fund will receive approximately $65,000 in additional tax revenues. He reminded the participants that Measure 50 does assign taxing jurisdictions a permanent tax rate. The tax statements showed that the City's tax rate is $6.04 but the County would not specifically state if that would be the rate imposed for 1998-99. In regards to the extra tax revenues, this will be a one time adjustment since this was the year in which the City moved to the maximum continuing millage levy assessment. Options available to the City regarding budgeting of these additional revenues within each of these specific funds include (1) adopting supplemental budgets for expenditure of funds in 1997-98, (2) allow the carryover of funds into fiscal year 1998-99 and use the funds for specific purposes, and (3) allow the carryover of funds into fiscal year 1998-99 and budget the funds in the areas of greatest need. Staff recommended that supplemental budgets be adopted with the Library revenues being transferred to the Library Page I - Council Workshop Minutes, January 13, 1998 - " COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Endowment Fund and Park & Recreation revenues being transferred to the Recreation & Parks CIP Fund for Centennial Park. Discussion was held on the need to appropriate more funds to Centennial Park prior to June 30th since this project is getting closer to the start of Phase 1. The Centennial Park Committee has been working on this project and it is anticipated that there will be a $110,000 to $130,000 shortfall in a current price for Phase 1. Councilor Figley stated that by immediately allocating $65,000, then donated materials and services will be almost enough to complete Phase 1. Library Director Sprauer stated that she had mentioned to the Library Board members that staff was recommending that the additional revenues be transferred to the Library Endowment Fund and the Board members were favorable to the recommendation. Council President Jennings questioned if the Endowment Fund was fenced funds and, if so, should the additional revenues be placed in an Capital Improvement Fund. Administrator Childs stated that this fund has fluctuated from year to year and there has been a goal to try and get the balance to $100,000. In the past, some of the interest earnings have been used to purchase items and/or borrow against the fund. Since the Library operational fund is doing better, he feels that now is the time to build the fund up to the $100,000 balance and interest earnings generated from the principal balance would then be used for various projects. David Vancil expressed his opinion that one-time capital improvement expenditures should be considered rather than placing the money in the Endowment Fund. In this way, the public can see how the extra funds are being used. It was the consensus of the participants that the funds should be held over to 1998-99 and these funds be utilized in areas other than the Endowment Fund such as replacing or re-upholstering furniture, purchasing books, or adding extra hours. It was noted that the current budget has approximately $150,000 in unappropriated balance line item and the additional estimated tax revenues of $40,000 are over and above the $150,000 already provided for within the budget. Further discussion was held regarding the appropriation of the additional Recreation & Parks tax revenues prior to July I, 1998. It was the consensus of the participants to proceed with a supplemental budget with funds to be designated within the Recreation & Parks CIP Fund towards Centennial Park. Administrator Childs reviewed his memo on anticipated additional property taxes for Fiscal Year 1998-99. Under Ballot Measure 50, the City will realize approximately $94,650 in additional revenues (General/Transit Funds, $49,313; Library Fund, $17,794; and Recreation & Parks Fund, $27,543). There will also be some additional taxes realized from new construction with the projected amount being $63,100 (General/Transit Fund, $32,875; Library Fund, $11,863; Recreation & Parks Fund, $18,362). He stated that in projecting the new construction value, he utilized a 2% increase which is similar to what Marion County and the City of Salem are using to make their projections. He reminded the group that, unless other resources other than property taxes become available, the tax-supported funds will receive only a minimal increase in total revenues in future years. Page 2 - Council Workshop Minutes, January 13, 1998 ....~. .._. ~._- I n COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Finance Director Gillespie referred to his outline on Intra-Governmental Transfers and he reviewed the different types of transfers that fall into this category. He stated that accounting for the indirect costs provide more accurate information on the full cost of providing a service. The City's past practice has been to distribute the cost oflabor and fringe benefits but not materials or capital outlay. Based on recent data obtained from employees who provide services to more than one department, he prepared a table that allocates the indirect costs, by percentages, to affected departments for 1998-99. He noted that this allocation of costs has been expanded to include such departments as police, community development, and risk management which had not been included in past distributions. He briefly explained the different methods used by affected employees in determining what percentage of time was spent doing work for the various departments. He also reviewed the overall increases (decreases) that departments would experience in 1998-99 based on the new percentage figures. He reminded the group that the dollar amounts used were based on current year wageslbenefits and those numbers would increase when the 1998-99 budget is prepared. Tape I SideB Council President Jennings suggested that, with the lack of members present, this issue be discussed in more detail at a later date. David Vancil stated that he would like to see the numbers expressed as a percent of the budget so that the Cornmittee can see if the administrative costs far exceed a reasonable overall percentage of total program costs.. Administrator Childs stated that this information was submitted to them at this meeting in order for the Council and Budget Committee lay members to be comfortable with the method in which the distribution of costs are allocated.. Other memos distributed involved a list of departmental budget priorities and 1998-99 Public Works priority projects. The departmental budget priorities included such items as reinstatement of positions and materials & services which were affected by the Measure 50 loss in tax revenues, replacement of outdated equipment, funding for the 3 community policing positions that will no longer be partially funded by federal grants, start-up costs for a remote police precinct, and funding for Aquatic Center temporary employee wage increases mandated by the State minimum wage law. In regards to the Public Works priority projects, the memo outlined various projects planned for 1998-99 in wastewater, transportation, water, storm drain, ariel mapping, and the Public Works maintenance shop expansion/modifications. Discussion was held regarding the time frames in which the Budget Committee will be convening to review the budget document. Administrator Childs stated that the longer staff waits to prepare the document the better the projections will be for estimating revenues and expenses. He alerted the Council and Committee members that a new line item may be included in the budget which provides for vacation payoffliability. The purpose ofthis line item is to provide an appropriation of funds to pay unused vacation hours to those employees who have resigned or retired without restricting the affected department as to when a new individual is hired to fill the vacant position. Page 3 - Council Workshop Minutes, January 13, 1998 . n COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Council President Jennings stated that, at the close of last year's Budget meetings, the Committee had expressed a desire not to meet two (2) nights each week until the budget document was approved. Therefore, the Council wanted the budget process start earlier this year. He had envisioned that the budget document would be presented to the Committee early spring and the Committee would have some time to review the document before the budget meetings began to thoroughly review the document. Councilor Figley stated that last year's budget process was unusual since there was a lot of pressure to make decisions in program cutbacks since tax revenues were unknown. She suggested that the process be started a little earlier to have the budget document before the Committee then arrive at subsequent meeting dates even if that includes holding a budget meeting on a Saturday to have a long session in return for getting some the of evenings back during the budget process. Council President Jennings stated that a police precinct station is almost a necessity. Chief Wright is working with the Fire District since there is a possibility of utilizing the dormitory section ofthe James Street fire station as a police precinct. The proposed budget will most probably contain a dollar amount for start-up costs. Councilor Figley stated that other items on the priority funding lists that need to be included in the 1998-99 budget is the payroll software update for compatibility with the year 2000 and the minimum wage increases. Council President Jennings questioned if the Budget Committee had received a copy of the Aquatic Center Market Study. Administrator Childs stated that he would need to make copies of the document, however, the City is beginning to see the financial results of implementing certain portions ofthe study. After a brief discussion, it was decided that one copy would be made available through the Administrator's office and a second copy would be at the Library Reference desk. Administrator Childs stated that the marketing plan was completed and staff is still working with the consultants on assisting the City with some of the marketing recommendations. The key point is that the City had already implemented many of the consultant's commonsense suggestions that were included in their plan. The City will need to obtain additional assistance from the consultants on implementing more technical aspects of the plan. In regards to the current year revenues/expenses, it was his understanding that the Aquatic Center is doing better financially than last year. Terri Burke-Robinson, representing the Chamber Board, requested that the Budget Committee recommend to the Council the lifting of the $4,000 cap on the Transient Occupancy Tax (hotel/motel tax) so that the Chamber can utilize funds from this tax towards other events and projects. The Chamber proposed events and projects such as the Tulip Festival, Welcome to Woodburn sign, Centennial Park, Oregon Gardens, and tourism and promotion of Woodburn as examples of where the additional funds could be spent. The current ordinance provides for 10% of the revenues collected to be forwarded to the Chamber with a $4,000 cap. Revenues received by the City last year under this ordinance were approximately $100,000. The Chamber's philosophy is to promote Woodburn and promote Woodburn businesses. She stated that the Page 4 - Council Workshop Minutes, January 13, 1998 T-- _._W"_.'__ I " :i COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Chamber is a group of people who can assist in the City in promoting and directing these projects on limited funds since the Chamber is made up of volunteers. She reiterated that the projects need to be done professionally and the $4,000 budget is insufficient to really present these projects in a positive way. There are a lot of good projects that the Chamber has led, along with the community's participation and endorsement, and lifting the cap is a positive way of promoting these projects. Administrator Childs stated that the Chamber has clearly outlined their objectives and he will evaluate the impact of their proposal to (I) see if can be implemented, or (2) make no change in the cap, or (3) negotiate a middle ground for the Budget Committee to consider. Councilor Figley stated that the City needs to know what's in it for the City if the cap is lifted and the Chamber needs to know specifically where the dollars will be spent. Council President Jennings stated that the Budget Committee does not want to subsidize the Chamber's operational expenses. Terri Burke-Robinson stated that the Chamber is willing to give the City a quarterly, semi- annual, or annual report to show accountability for the funds received. Barbara Lucas questioned if all businesses were members of the Chamber and on what basis are dues charged to the businesses. Jane Kanz, Chamber Executive Director, stated that not all businesses are members and dues are based on the number of employees. Terri Burke-Robinson reiterated that the Chamber would like to see the cap lifted so that as Transient Occupancy tax revenues increase, the revenues forwarded to the Chamber for specific projects would also increase. Barbara Lucas stated that the department budget priorities did not include any additions to the Planning Department. She is very concerned regarding the need to add more staff members to maintain service levels to meet current demands and for more work space. Last year, discussions were held regarding the increase of planning fees to offset a portion of these costs but, as of this date, no action has been taken by the Council to increase the fees. In her opinion, the City is overlooking a problem and feels that something needs to be done to rectify this problem. Tape2 Side A Councilor Figley stated that a Council workshop was held after last year's budget meetings on SDC's, Traffic Impact fees, planning fees, and other miscellaneous proposed fee increases. The Council made a conscious decision not to put various fee increase proposals on the November ballot at the same time as the gas tax measure. She stated that the City will need to follow-up on this issue later this year. Barbara Lucas stated that she has advocated a raise in the planning fees for many years since developers should be paying the cost for new developments and she urged the Council to take some action on this issue. Barbara Lucas questioned the status of the basement remodeling project. Administrator Childs stated that last year's budget process included additional funds to the Page 5 - Council Workshop Minutes, January 13, 1998 .. n COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 General Fund CIP Fund to develop the basement. During the design phase, it was determined that the elevator did not meet ADA standards and to remedy this project would be very expensive. He also stated that he had written to Wells Fargo bank suggesting that they either donate the building to the City or give the City an opportunity to negotiate a price for the building. The location of the building is very conducive for acquisition since it is in close proximity to City Hall, the Library, and Aquatic Center. Barbara Lucas questioned if the Community Center building could be sold and the offices relocated since access to Park offices is limited to the public. Administrator Childs stated that the building could be sold but it is serving a function in housing staff and community programs. Another location would need to be found and, long term, he envisions a new community center. He stated that if the bank building is acquired by the City, then Public Works and Community Development may move over to that building thereby making space available in City Hall for the Parks staff. David Vancil stated that youth is one of his priorities and, in the event the County no longer funds the Youth Drop-In Center, the City needs to look at funding options in order to continue this worthwhile program. The Center is also in need of additional space due to the high level of youth participation. He also stated that he is a member of Woodburn Together and they have been working to develop strategies to get more kids to the swimming pool and library between 3:00 pm and 7:00 pm. The major barriers identified by Woodburn Together so far are transportation and liability, and they will be looking at various means in which to overcome these barriers. Councilor Figley stated that she was glad to see that extra money can be directed to Centennial Park this year. Our new Recreation & Park Director will be starting next week and the Centennial Park Committee will be meeting in the very near future. She also stated that she had briefly reviewed the departments budget priority list and she reiterated that issues that need funding are software for payroll, continuing with the telephone system upgrade, budgeting for the minimum wage increase, remote police precinct station and what to do about replacing the funding loss with the expiration of the COPS program since she does not want to see a loss of 3 patrol officers. Council President also suggested that the Budget Committee needs to look for other resources for the street resurfacing program. He also reiterated the need to establish a police precinct station. David Vancil questioned if a public forum is held prior to establishing the final decision as to what streets are resurfaced. Public Works Director Tiwari stated that he relies on the expertise ofthe Street Superintendent and Civil Engineering Technician who list the priorities based the on technical needs. He reviews the list and collectively they develop the list of improvements. In the past, he has not used a political forum to develop the list. David Vancil stated that there is a need to build political support in order to pass issues before the voters. He stated that he does not disagree with the priorities but there are a lot of people who are frustrated about streets. Page 6 - Council Workshop Minutes, January 13, 1998 r"....--..----'--.-.--~------.- 1 n COUNCIL WORKSHOP MINUTES JANUARY 13, 1998 Director Tiwari stated that the public does not seem to be to concerned about the priority of improvements but the main problem is with the lack ofresources to make the improvements. Brief discussion was held regarding potential revenue bonds to fund improvements using gas tax funds or some other designated funds to repay the bond. Mr. Vancil summarized the method used by the School District to pass building bonds and he stated that eventual passage of the bonds came about when it became the citizen's vision rather than the District's. Dallas Figley spoke briefly regarding the City's interest in acquiring the bank building, in addition to the Marion County's desire to acquire the building, and the effect the acquisition of the building by a government agency would have on the comprehensive plan now being prepared by the Woodburn Downtown Association. Administrator Childs stated that this meeting has given him direction on major issues. He will provide the Councilors and lay Budget Committee members not present at this meeting with copies of the memos and the minutes for their review. In addition, he will give them an opportunity to respond back to him ifthey have any additional comments. Council President Jennings also stated that he has been in contact with WCAT (Community Access) requesting a list of equipment and approximate dollar cost in order to upgrade their system to improve the sound system when meetings are televised. He will provide this information to the City Administrator as soon as it is received. Jane Kanz reminded the group that the contract for the WDA manager is coming to an end and a Plan is being put together which will cost money. She suggested that, if funds are available, the City support the capital improvements necessary to implement the plan once it is adopted. She stated that the Chamber will be supporting the Plan and hopes that the City will also support the Plan. The meeting concluded at 9:12 p.m.. APPROVED ( Z. NANCY A. ATTEST fY\,~ Mary .at, Recorder City of Wood bum, Oregon Page 7 - Council Workshop Minutes, January 13, 1998 -- .....- ..~,-----' . n