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Minutes - 12/16/1996 Workshop COUNCIL WORKSHOP MEETING MINUTES December 16, 1996 TAPE READING 0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, DECEMBER 16,1996. 0003 CONVENED. The Council met in a workshop session at 7:00 p.m. with Mayor Kirksey presiding to receive information on Ballot Measure 47 and its potential financial impact on the City's budget. ROLL CALL. Mayor Councilor Councilor Councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh S ifuentez Present Present Present Present Present Present (7: 10 pm) Present Staff Present: City Administrator Childs, City Attorney Shields, Finance Director Gillespie, Community Development Director Goeclcritz, Public Works Director Tiwari, Park Director Holly, Public Works Manager Rohman, City Recorder Tennant Also in attendance: Gilbert Flaughers, Preston Tack, Barbara Lucas Administrator Childs presented an overview of Ballot Measure 47 which reduces property taxes back to the 1994-95 levels. This state-wide measure was approved by the voters at the November 5, 1996 general election and becomes effective with property taxes levied for fiscal year 1997-98. He stated that, in Woodburn, the measure received a 64% favorable vote from our electorate. A chart was displayed showing the current percent distribution of property taxes to Public Safety (40.6%), Recreation & Parks (25.30%), Library (15.8%), Transit (1.5%), and other General fund programs (16.8%). According to information from the Marion County Assessor and Department of Revenue, the estimated loss in tax dollars to the City is $699,420. City Attorney Shields reviewed some of the fundamental legal issues surrounding Ballot Measure 47 relating to the reduction in property taxes, allowance of special voter approval for new or additional property taxes, and prohibiting other revenue increases to make up for the reduced property taxes unless the new revenues are approved by the voters. He stated that the measure directs the State's legislators to prioritize public safety and education, to minimize any loss of local control of cities and counties, and has the responsibility to adopt implementing legislation. The City is required to move forward with its budgeting process even though it is unknown if the State will be Page 1 - Council Workshop Meeting Minutes, December 16, 1996 r -..-...,....'.'-.. ....- ... . ------...-....,.......--.,. - COUNCIL WORKSHOP MEETING MINUTES December 16, 1996 TAPE READING providing financial assistance for public safety functions. He also informed the Council that a lawsuit was filed on December 4, 1996 on this measure by several governmental agencies including the League of Oregon Cities and several special districts. 0610 In regards to pending litigation, it will take up to two years for the courts to decide this issue. Additionally, annexation of property into the City would require voter approval of individuals residing in the affected area. Consultation with the City Attorney and Bond Counsel is highly recommended before any Council action is taken to increase or impose fees, assessments, or charges in order to ensure compliance with this new state law. 1270 Administrator Childs stated that it is now a state legislative task to prioritize and define public safety and education. He reminded the Council that the limitations on the property tax rate imposed by Ballot Measure 5 ($10 maximum for non-school taxing districts) are still in effect. Ballot measure 47 now puts the City in a perpetual level of compression. The task for the City over the next several months is to determine what major cuts need to be made in order to balance the City's budget. In his opinion, the City may need to continue with certain major projects such a data processing upgrades and telephone communications for the purpose of making the organization more efficient with less personnel to handle the workload. 1575 Administrator Childs stated that the City is required to follow certain mandates imposed by City Charter; State Land Use laws; State and Federal water, wastewater, and stormwater regulations; State financial audits and investment policies; and Public Safety issues including 9-1-1 emergency response. He informed the Council that staff has already taken action to obtain a ruling from the Department of Justice regarding the 3 community-oriented police officer positions under the "COPS" and "COPS FAST" grants. The City Hall basement project has been placed on hold, in part due to the existing elevator not being considered as ADA available and staff is researching potential waivers that could be applied for if it was decided to continue with this project. Within the Police Department, two police officer positions will be left vacant and we are in the process of phasing out the Gang Intervention program. 2005 Administrator Childs reviewed the major programs supported by property tax dollars which included information on each program's current budget total, amount of revenues collected other than property taxes, amount of customers/patrons, and additional information on special grants or funds received by each program. The programs reviewed included Municipal Court, Library, Transit & Dial-A-Ride Van/Volunteer Driver service, Retired Senior Volunteer Program, Leisure Services (youth and adult programs), Aquatic Center. Other miscellaneous programs that may receive funds from property taxes include, but not limited to, building, planning, facilities maintenance, code enforcement, parks maintenance, engineering and vehicle and equipment maintenance. Page 2 - Council Workshop Meeting Minutes, December 16, 1996 COUNCIL WORKSHOP MEETING MINUTES December 16, 1996 TAPE READING Tape 2 Administrator Childs stated that he does not have any recommendations for the Council to consider at this time. He is, however, looking for general policies from the Council so that a budget document can be developed that would meet the Council's overall direction in which to proceed in this upcoming budget year. With so many legislative issues pending, we may be postponing our budget hearings until April in order to determine what direction the State legislature is taking on funding public safety and/or education. 0116 The Councilors agreed that program cuts were necessary with the shortfall in revenues. Within the Parks fund in particular, they felt that the youth programs should continue while adult programs could be reduced or eliminated. In any event, staff reductions will be necessary to balance the budget. Mayor Kirksey suggested that a global workshop with the Parks & Library Boards, along with the Budget Committee, be held on January 20, 1997 in order to hear from the Boards what their program priorities are for the upcoming year. Several Councilors expressed their desire not to have the Budget Committee attend this workshop since they will be part of the overall budget deliberations. After some further discussion on this issue, it was decided that the Budget Committee would be informed of the workshop date so that they could attend the meeting if they so desired. 0700 Councilors Jennings and Pugh requested information on interfund transfers. Finance Director Gillespie briefly reviewed the method in which costs are currently being allocated primarily in the Technical & Environmental Fund. In summary, an estimate of public works engineering and administrative staff time and materials cost is transferred from the Street, Water, and Wastewater funds rather than charging actual costs directly to those funds. Councilor Pugh suggested that cross-charging be minimized so that all costs directly related to a specific project are located within one line item. He also suggested that an itemized listing of projects, along with each project cost, be listed in the budget. For example, the unscheduled projects line item would be itemized rather than shown in one lump sum. 1449 Some concern was expressed by Councilors regarding the expenditure of budgetary funds that would be in excess of a quarterly allocation of total fund appropriations. Discussion was held as to how involved the Council wanted to be in reviewing monthly and/or quarterly statistical reports. Administrator Childs assured the Council that he and the Finance Director review these reports monthly to ensure compliance with State Budget Law and to monitor the cash flow within the budgetary funds. It was decided that statistical reports will be given to the Council on a quarterly basis to those who wish to receive the report. Page 3 - Council Workshop Meeting Minutes, December 16, 1996 ~. >..-....,... - . -.........--.. COUNCIL WORKSHOP MEETING MINUTES December 16, 1996 TAPE READING 1779 The meeting concluded at 9:27 p.m.. APPROVEIf7~~~' J NANCY A. KI SEY, MAYOR/ ATTEST I!lcu~----u::-.~:4= Mary nt, Recorder City of Woodburn, Oregon (Note: The tape recorder was not functioning properly during the first part of the meeting, however, the meeting was recorded starting at tape 1 reading 0610.) 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