HomeMy WebLinkAbout1997-0630 Special Mtg PACKET AGENDA FOR THE SPECIAL MEETING
ASHLAND CITY COUNCIL
JUNE 30, 1997
at 4:30pm, Council Chambers
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I. CALL TO ORDER: 4.:30pm, Council Chambers
II. ROLL CALL - LOWS 45Za4-
III. SPECIAL AGENDA ITEMS:
1. Public Hearing on adoption of 1997-98 Budget. e3�
2. First reading and second reading by title only of an "Ordinance
Levying Taxes for the Period of July 1, 1997 to and Including June
30, 1998, Such Taxes in the Sum of $5,468,450.00 upon all the
Real and Personal Property Subject to Assessment and Levy
within the Corporate Limits of the City of Ashland, Jackson
County, Oregon."
3. Reading by title only of a "Resolution Adopting the Annual Budget
and Making Appropriations for 1997-98."
IV. ADJOURNMENT
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MEMORANDUM
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To: Mayor and City Council
From: Jill Turner, Director of Finance
Subject: Budget
Date: June 24, 1997
RECOMMENDATION: The Budget Committee recommends the passage of the
attached Budget Appropriations Resolution and Ordinance Levying Taxes. Attached
are the minutes of the June 4th and June 10th, 1997 Budget Committee meetings. In
preparing the appropriations resolution the flood restoration was included in the
Wastewater fund. In the budget document these costs are shown in a seperate fund.
DISCUSSION: None.
ORDINANCE NO._
AN ORDINANCE LEVYING TAXES FOR THE PERIOD OF JULY 1, 1997 TO AND INCLUDING JUNE
30, 1998, SUCH TAXES IN THE SUM OF 85,468,450.00 UPON ALL THE REAL AND PERSONAL
PROPERTY SUBJECT TO ASSESSMENT AND LEVY WITHIN THE CORPORATE LIMITS OF THE
CITY OF ASHLAND, JACKSON COUNTY, OREGON
THE PEOPLE OF THE CITY OF ASHLAND ORDAIN AS FOLLOWS:
Section 1. That the City Council of the City of Ashland hereby levies the taxes provided for in the adopted
budget in the aggregate amount of 85,468,450.00 and that these taxes are hereby levied upon the assessed
value for the fiscal year starting July 1, 1997, on all taxable property within the City.
Section 2. That the City Council hereby declares that the taxes so levied are applicable to the following
funds:
Subject to the General Excluded from
Government Limitation the Limitation
General Fund 8 1,215,069.85 8 0.00
Cemetery Fund 250,000.00 0.00
Band Fund 70,000.00 0.00
Recreation Serial Levy Fund 100,080.15 0.00
Parks and Recreation Fund 2,330,000.00 0.00
Ashland Youth Activities Levy Fund 1,200,000.00 0.00
General Bond Fund (82 Water Bonds) 0.00 53,300.00
General Bond Fund (92 Water Bonds) 0.00 188,000.00
General Bond Fund (97 Flood Bonds) 0.00 62.000.00
Total $ 5,165,150.00 8 303,300.00
The foregoing ordinance was read in full and then by title only in accordance with Article X, Section 2(B) of
the City Charter on this 30th day of June, 1997, and duly PASSED and ADOPTED at this single meeting.
Barbara Christensen,
City Recorder
SIGNED and APPROVED this day of June, 1997.
Catherine M. Golden, Mayor
Reviewed as to form:
Paul Nolte, City Attorney
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RESOLUTION ADOPTING BUDGET
RESOLUTION NO. 97-
A RESOLUTION ADOPTING THE ANNUAL BUDGET AND MAKING APPROPRIATIONS
BE IT RESOLVED that the Ashland City Council hereby adopts the_1997-98 Fiscal Year Budget, now on file
in the office of the City Recorder.
BE IT FURTHER RESOLVED, that the amounts for the fiscal year beginning July 1, 1997, and for the
purposes shown below are hereby appropriated as follows:
GENERAL FUND
Social Services $ 83,000
Economic Development 250,850
Miscellaneous 90,000
Debt Service 82,000
Transfers 3,000
Contingency 381,150
Police Department 2,523,000
Municipal Court 191,000
Communications 504,000
Fire Department 2,034,000
Senior Program 125,000
Planning 506,000
Building 327.000
i TOTAL GENERAL FUND 7,100,000
! CEMETERY FUND
Personnel Services 105,000
Materials and Services 151,000
Capital Outlay 21,000
Transfers 1,000
Contingencies 40.000
TOTAL CEMETERY FUND 318,000
I BAND FUND
Personnel Services 5,000
Materials 52,000
Contingency 10,000
TOTAL BAND FUND 67,000
COMMUNITY DEVELOPMENT BLOCK GRANT
Personnel Services 38,000
Materials and Services 431,000
Capital Outlay 35,000
i Contingency 5.000
TOTAL CDBG FUND S 509,000
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III
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RESOLUTION ADOPTING BUDGET
AIRPORT FUND
Personnel Services $ 1,000
Materials and Services 56,000
Capital Outlay 80,000
Contingency 5,000
TOTAL AIRPORT FUND 142,000
STREET FUND
Personnel Services 604,000
Materials and Services 1,201,000
Capital Outlay 1,402,000
Debt Service 3,000
Transfers 80,000
Contingency 93,000
TOTAL STREET FUND 3,383,000
CAPITAL IMPROVEMENTS FUND
Personnel Services 1,000
Materials and Services 123,000
Capital Outlay 1,788,000
Transfers 303,000
Contingency 200,000
TOTAL CAPITAL IMPROVEMENTS 2,415,000
BANCROFT BOND FUND
Debt Service 510,000
Transfers 40,000
TOTAL BANCROFT BOND FUND 550,000
GENERAL BOND FUND
Debt Service 462,000
DEBT SERVICE FUND
Debt Service 361,000
AMBULANCE FUND
Personnel Services 165,000
Materials and Services 476,000
Capital Outlay 27,000
Transfers 319,000
Contingency 83,000
TOTAL CAPITAL IMPROVEMENTS 1,070,000
WATER QUALITY FUND
Forest Interface 100,000
Water Division 2,448,000
Debt Services 336,000
Transfers 162,000
Contingency 300,000
Conservation Division 94,000
TOTAL WATER QUALITY FUND S 3,440,000
IV
RESOLUTION ADOPTING BUDGET
WASTEWATER FUND
Flood Restoration $ 996,000
Transportation 200,000
Personnel Services 519,000
Materials and Services 817,000
Capital Outlay 6,213,000
Debt Service 173,000
Contingencies 1,000,000
TOTAL WASTEWATER FUND 9,918,000
ELECTRIC FUND
Conservation Division 449,000
Electric.Department 8,281,000
Debt Service 57,000
Contingency 480,000
TOTAL ELECTRIC UTILITY FUND 9,267,000
CENTRAL SERVICES FUND
Administrative Department 658,000
Finance Department 1,085,000
City Recorder 115,000
Contingency 56,000
Public Works Department 567,000
Computer Services 343,000
TOTAL CENTRAL SERVICES FUND 2,824,000
INSURANCE SERVICES FUND
Personnel Services 15,000
Materials and Services 704,000
Contingency 300,000
TOTAL INSURANCE SERVICES FUND 1,019,000
EQUIPMENT FUND
Personnel Services 167,000
Materials and Services 412,000
Capital Outlay 948,000
Contingency 127,000
TOTAL EQUIPMENT FUND 1,654,000
CEMETERY TRUST FUND
Transfers 45,000
PARKS AND RECREATION FUND
1 Parks Division 3,232,000
t Debt Service 3,000
I Transfers 153,000
Contingency 90,000
Recreation Division 136,000
! TOTAL PARKS AND RECREATION $ 3,614,000
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RESOLUTION ADOPTING BUDGET
RECREATION SERIAL LEVY FUND
Personnel Services $ 76,000
Materials and Services 70,000
TOTAL RECREATION LEVY FUND 154,000
ASHLAND YOUTH ACTIVITIES SERIAL LEVY FUND
Personnel Services 25,000
Materials and Services 1,119,000
Contingency 5.000
TOTAL ASHLAND YOUTH ACTIVITIES 1,149,000
PARKS CAPITAL IMPROVEMENTS FUND
Capital Outlay 297,000
GOLF COURSE FUND
Personnel Services 125,000
Materials and Services 194,000
Capital Outlay 53,000
Debt Services 21,000
Contingency 14.000
TOTAL GOLF COURSE FUND 407,000
TOTAL APPROPRIATIONS S 50,165,000
This Resolution was READ BY TITLE ONLY and DULY ADOPTED at a regular meeting of the City Council of
the City of Ashland on this 30th day of June, 1997.
Barbara Christensen, City Recorder
SIGNED AND APPROVED this _day of June, 1997.
Catherine Golden, Mayor
Reviewed as to form:
Paul Nolte, City Attorney
I
VI
Budget Committee Minutes
June 4, 1997 7:00 p.m. Council Chambers
Committee Members present were: Martin Levine, Budget Committee Chair, Mayor Cathy
Golden, Alan DeBoer, Michael Gibbs, Cate Hartzell, Steve Hauck, Don Laws, Jim Moore,
Richard Nichols, Regina Stepahin, Richard Trout, Carole Wheeldon. Absent were: Ken
Hagen and Susan Reid. Staff members present were: Brian Almquist, Russ Chadick,
Barbara Christensen, Mel Clements, Linda Hoggatt, Sharon Laws, Phil Lind, Ken
Mickelsen, Paul Nolte, Greg Scoles, Jill Turner, and Jennifer Meadows. The meeting was
called to order at 7:05 p.m. by Martin Levine.
I. Public Input
There was none.
F. Approval of Budget Committee and Subcommittee Minutes
The committee chose to approve the minutes one at a time.
Conflicts: Hauck -- Social Services, Laws -- the Senior Program, Levine -- Economic
Development, Trout -- Economic Development, and Wheeldon -- Economic Development.
Social Services/CDBG allocations -- Hartzell made a couple of clarifications. Wheeldon
moved to approve the minutes, Laws seconded. Ayes all, so moved.
Budget Committee -- Trout moved to approve, Laws seconded. Ayes all, so moved.
Electric Dept/Community Development -- Hartzell questioned the capital outlay, whether
it was a Council decision to move forward with funding the fiber optics. Golden asked
about the reduction in toilet rebates, Turner responded that this was due to the reduced
prices of the toilets. Nichols asked about the bonds referred to for downtown
improvements, Almquist and Turner responded that these were Bancroft Bonds. Nichols
moved to approve the minutes, Wheeldon seconded. Ayes all, so moved.
Social Service Grants -- Hartzell asked to have the minutes clarify who, of those present,
were actually on the subcommittee, and who were other Budget committee members (non-
i/oting on these committees). The minutes will also show that the additional members did
not vote. Nichols moved to approve these minutes, Wheeldon seconded. Ayes all,
so moved.
Social Services Grants (April 17) -- Rename Adult Mediation Services, this is actually the
title of the program run by the Community Dispute Resolution Center. Minutes passed
with above vote.
Economic Development Grants -- (Request from The Whole Cloth) Nan Trout said that
the agency has received funds from the Ashland Chamber of Commerce and Ashland
Gallery Association, and is restating its request for moneys to pay for advertisement. She
Budget Committee Minutes 6/4/97 Page 1
listed receipts of $1,500 from Jacksonville, $1,500 from Grants Pass, and $1,250 from
other sources in Ashland. Wheeldon moved that the committee try to find $1,250 from
the General Fund Contingency (920.000, page 33) to support The Whole Cloth,
Stepahin seconded.
Discussion: Laws was hesitant to start "finding" moneys for agencies, he feels that would
be a bad precedent to set. He also felt that it undermines the subcommittees if the full
committee starts allocating moneys on its own. . . Levine felt that. since The Whole Cloth
is a new agency, it was arbitrarily left out. . . Wheeldon would iA& the committee to remain
creative in funding new agencies, and not just leave them out. . . Stepahin pointed out
that the Economic Development vote was divided (three to two) and not unanimous. . .
Levine affirmed that it is not the position of the committee at large to make changes easily.
. . . Hauck did not have a problem with taking the money from the Contingency fund and
did not feel that this was undoing what the subcommittee had done. . . Golden said that
these minor adjustments have been made year after year, and that this is appropriate.
The subcommittees can delve deeper into the subjects and make recommendations, the
whole committee can then fine tune the allocations. . . Laws does not want to encourage a
lot of new applicants, since the City cannot support them all. . . Wheeldon responded that
this idea is something that should be discussed at a later date. . . DeBoer said that he
would like to see rules spelled out for those subcommittees who administer grants. . .
Laws stated that he doesn't want hard and fast rules governing these subcommittees and
how the divvy up the grants. . . Levine agreed. . . Hartzell stated that there should be
some guidelines as to what the ultimate goal of the committee ano City is in supporting
I these agencies. . . Golden asked what the merits and demerits of funding these agencies
,:re, and what the reasoning was behind the members who voted against funding The
,Mole Cloth. . . Stepahin said that The Whole Cloth seemed to-be the sort of project the
City wants to support, and thought that recommending to find $2,000 in a budget as large
as the City's seemed reasonable. . . Laws stated that his reasor;'ng behind voting against
funding The Whole Cloth was that he did not feel that it was going to bring much economic
benefit back to the region, and was not necessarily the sort of art medium (fiber arts) that
he personally wanted to support. He did not have a problem with finding the moneys in
the Contingency fund.
Motion to take $1,250 from the General Contingency fund for The Whole Cloth.
DeBoer, Laws, and Golden opposed. Golden believes that the Historical Society is not
doing enough in Ashland, and that they are asking for money through The Whole Cloth.
Motion passed.
Hartzell asked that the discussion portion of the minutes be detailed more in-depth. Laws
seconded this proposal. Trout suggested that the committee meet in January.
Hartzell moved to separate approval of the Economic Development minutes as
-amended from approval of the recommendations, Golden seconded. Ayes all, so
moved.
Wheeldon moved to accept the minutes, Hauck seconded. ,Ayes all, so moved.
I
Budget Committee Minutes 6/4/97 Page 2
Gibbs moved to accept the subcommittee allocations as amended to include $1,250
to The Whole Cloth from the General Fund Contingency, Stepahin seconded.
Hartzell opposed. Motion passed.
Public Works -- Trout asked, regarding the gas tank cleanup, if the airport is still self-
support. The City is going to pay for the cleanup and the airport will repay it over ten
years.
Hartzell moved to approve the minutes, Hauck seconded. Ayes all, so moved.
Central Services/Senior Program/Cemetery -- Trout asked to include the tripled price of
headstones in the reasons for increased prices in Cemetery. Hartzell asked about the
community newsletter budget. Almquist stated that $15,000 will be added to the City
Recorder's budget, and it will be divided later. Trout asked about the Sprint franchise
revenue and the cable television franchise revenue. Almquist replied that the Sprint
money is earmarked for telephone upgrades.
Trout moved to approve the minutes, Gibbs seconded. Laws abstained. Motion
passed.
Public Safety -- Hartzell asked if the overtime amounts in the Fire Department are typical
in a department of this size. Turner and Almquist responded that they are not, but that
most of the overtime is attributable to acquiring the Ambulance Service, and a couple of
long-term injuries. Hartzell asked about the suggestion to have the Utilities contribute to
the costs of training the firefighters in confined-space rescue. Almquist responded that
since they would also benefit from the training, there should be some contribution to offset
these costs, so it is not all coming from the Fire Department.
Wheeldon moved to approve the consensus approval of the subcommittee, Trout
seconded. Ayes all, so moved.
Wheeldon left.
III. Discussion of Measure 50
Turner gave an overview of Measure 50. It takes the five levies (General Fund Tax
Base, Cemetery Continuing Levy, Band Continuing Levy, Parks Continuing Levy,
and Recreation Serial Levy) and combines them at the nr.r' of 1998 to get one
permanent tax rate. The amount remains permanent, but the levies go away at the
end of their lives. Assessed value then grows at a rate of three percent annually, it
no longer follows market value. The City has been instructed by the Department of
Revenue to levy the full amount. Everyone within the tax area is given a
percentage of these revenues. Each district is looked at by the Department of
Revenue and increased or decreased until it reaches the average of 17 percent.
There is then a new rate for the following fiscal year. Ashland is authorized to levy
$5,118,000 in taxes, but has chosen to levy only $3,965,150. (see handout) The
City has been instructed to cut 17 percent ($675,150). After removing the estimated
uncollectible tax ($397,000), there is a recommended budget of $2,893,000. This
Budget Committee Minutes 6/4/97 Page 3
does not take into account those levies outside Measure 50, which gives a total
recommended budget of $4,251,300. Levine asked if, after Year One, the City is
obligated to break down the $3,965,150 in this way. Almquist and Turner
responded that they don't think so, but legislation is still being drafted.
Golden pointed out that the City is one of a very small number of cities that is facing
the issue of continuing levies, and one of an even smaller number that is not
currently levying taxes to its full amount. This committee is going to be deciding at
this time whether to increase the current tax base by up to 33 percent (and likewise
increase the tax burden on its citizens), or to follow the staffs recommendations to
reduce this amount and risk reduced revenues in the future.
Turner said that levies outside of Measure 50 get kicked out if there is a
compression issue. Golden said that Parks, since it currently levies so far below its
limit, can levy for its own flood restoration costs which would reduce the Flood
Bond. Almquist pointed out that this is still in question. The City Council cannot
increase taxes after the Budget committee has voted, but it can lower them.
IV. Recommend to City Council the Approval of Budget Appropriations and the 1997-98
Property Tax Levy
Laws moved to adopt described property tax amount levied as outlined in the
proposal, Golden seconded.
Nichols asked if the Parks Continuing Levy will remain a constant percentage of the
total levy. Turner responded that it could be up to that percentage. Hartzell asked
Almquist to expand on the assumptions and risks. Almquist responded that, if the
City does not levy to its full extent, the Parks Commission may not be able to levy to
its full extent later. Golden embellished this by stating that Parks typically levies
only what it needs and may then lower its levy in the following year. Under
Measure 50, if they lower this amount, they cannot go back up. Levine reminded all
that every decision the committee makes is subject to legal appeal. Golden stated
that she believes taxes in Ashland are a problem for many people and that many
are being priced out of the area. Therefore, she thinks that, if the committee has it
within its power to keep taxes flat, it should.
Mickelsen said that he feels that the recommended budget will provide adequate
money to meet Parks needs for many years to come. This is based on the
assumption that the City gives Parks the same percentage as outlined in the
recommendation. If Parks should need more than the three-percent growth allowed
in a given year, they could go to the voters.
Laws moved to suspend approval of the recommended budget until the
committee meets on Tuesday, June 10 at 4:00 p.m., H-rtck seconded. Ayes
all, so moved.
Meeting adjourned at 9:20 p.m.
I (G:%udget4nint)c604.min)
Budget Committee Minutes 6/4/97 Page 4
Budget Committee Minutes
June 10, 1997 4:00 p.m. Council Chambers
Committee Members present were: Martin Levine, Budget Committee Chair, Mayor Cathy
Golden, Alan DeBoer, Michael Gibbs, Ken Hagen, Cate Hartzell, Steve Hauck, Don Laws,
Jim Moore, Richard Nichols, Susan Reid, Regina Stepahin, Richard Trout, and Carole
Wheeldon. Staff members present were: Russ Chadick, Barbara Christensen, Mel
Clements, Phil Lind, Ken Mickelsen, Don Paul, Greg Scoles, Susan Shulters, Jill Turner,
and Jennifer Meadows. The meeting was called to order at 4:00 p.m. by Mayor Golden.
I. Discussion of the Recommended Budget
Laws moved to recommend the budget appropriations as amended to the City
Council and to recommend the maximum tax levy of $5,468,450, Hagen seconded.
Discussion: Nichols asked how the Uncollectibles are computed when figuring
recommended budget. Turner responded that she feels 27 percent total (Measure
50's 17 percent plus 10 percent for uncollectibles) is reasonable. Levine reminded
everyone that all the taxes will be collected eventually, the Uncollectibles amount
only includes taxes which are not paid by June 30. Hauck said that the 17 percent
is simply the average across the state, and that some places will be higher and
some lower. The difference between the 17 percent and 27 percent is the
uncollectibles being a percentage of the net budget, not the gross. Turner stated
that in the past, uncollectibles have ranged from 7.5 to 14 percent. Nichols asked
how many of the adjustments from last week's handouts were approved by the
subcommittees and how many were after the fact. Turner responded that there are
some requested by the subcommittees, some to implement the recommended
budget. She went through them a page at a time.
Nichols asked if the contingencies weren't raised if the levies could be lowered by
that amount. Turner responded that this was correct. Reid asked the net budget
increase. Turner replied that there is a $773,000 total increase. Reid asked what
percentage of that was in the Contingency account. Turner answered that there is
$102,400 more in Contingency. The largest increase is $923,000 in Capital Outlay
in the Parks budget. Trout asked if the City is not really budgeting in the spirit of
Measure 50. Turner responded that perhaps 30 percent of the total tax bill is
exempt from Measure 50's 17 percent cut. Ashland's average taxpayer's bill will
probably be quite similar to last year's. The individual's bill, however, will vary a
great deal. Levine stated that the tax rate went up, but the base went down.
Nichols expressed concern that, if peoples taxes increase, they may vote against
the Recreation Serial levy. Golden responded that, looking at Ashland taxpayers'
voting record (against 5 and 47), if the Ashland Youth Activities levy fails, it will
probably be because they want to see state money funneled to schools to make
them whole, rather than to City government. Reid mentioned that she initially had
been defending keeping the contingency fund static, and now the committee is
planning to increase it by $100,000. Laws asked if Turner would feel comfortable
Budget Committee Minutes 6/10/97
reducing the Operating Contingency to the number originally budgeted. Turner
responded that this would reduce the band and cemetery levies and leave the Parks
whole; her preference would be to reduce the Parks levy and leave the other two
whole, since they are under the City's budget and will become permanently fixed.
Hartzell asked what the impact would be of reducing the working capital carryover
by $100,000 (and therefore, the contingency fund). Turner responded there would
be no impact. The General Fund budget is only $32,000 more than last year.
Motion to accept the budget as amended. Eight in favor. DeBoer, Gibbs, Levine,
Moore, Nichols, and Reid opposed. Motion passed.
II. Approval of the Budget Committee Minutes
Golden said that this year everything in the budget is as set by subcommittee. Next
year, everything will be decided all over again; this year's decisions will not be
binding. Hartzell asked how these decisions will be made. Golden responded that
it will be done again by subcommittees. Mickelsen clarified that he feels the Parks
budget will be adequate for this year, future years are as yet unknown.
Trout moved to approve the minutes as amended; Moore seconded. Ayes all,
so moved.
Hartzell would like to ensure that, for economic development, there are some
guidelines set and that there is an interim meeting, perhaps in September. Golden
would prefer to have more meetings with the whole committee, not just
subcot tmittees. She suggested meeting in October. Turner suggested that two or
three economic development subcommittee members frame some questions so
there is an agenda for the meeting.
DeBoer moved to have Economic Development and Social Services
subcommittee members meet with Turner and come to the meeting in October
with recommendations; Laws seconded. All in favor. So moved.
Meeting adjourned at 5:11 p.m.
(G:%budgetVninlbc6l 0.min)
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Budget Committee Minutes 6/10/97