HomeMy WebLinkAbout2007-05-21 Budget Committee Minutes
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 1 of 8
City of Ashland Budget Committee Meeting
Draft Minutes
May 21, 2007 6:00pm
Civic Center Council Chambers, 1175 East Main Street
CALL TO ORDER
Chairman Thompson called the Citizen’s Budget Committee Meeting to order at 6:02 pm on
May 21, 2007 in Council Chambers at 1175 East Main Street, Ashland, Oregon.
ROLL CALL
Mayor Morrison was present. Councilors Chapman, Hardesty, Hartzell, Jackson, Navickas and
Silbiger were present. Budget Committee members Bond, Heimann, Stebbins, Everson,
Levine, Gregorio, and Thompson were present.
STAFF PRESENT: MARTHA BENNETT, CITY ADMINISTRATOR
LEE TUNEBERG, ADMINISTRATIVE SERVICES/FINANCE DIRECTOR
BRYN MORRISON, ACCOUNT REPRESENTATIVE
MIRANDA IWAMOTO, ACCOUNT CLERK II
APPROVAL OF MINUTES
Approval of Budget Committee minutes dated: 05/02/07
05/03/07
Everson/Bond m/s to approve the minutes as presented. All Ayes.
PUBLIC INPUT
Citizen’s Budget Committee member, Marty Levine, asked to be recognized as a citizen and
speak during Public Input. Mr. Levine spoke about how no one wanted the library to close but
that it’s premature to approve funding for something that the City may not have the power or
legal authority to undertake. Mr. Levine highlighted various unanswered questions about the
library and encouraged the committee to look at other options. Mr. Levine said that the
committee should resist the emotional arguments and politics and reject the premature requests
to throw money that the City doesn’t have at a problem that the City might not be able to solve.
Mary Ruth Wooding, 727 Park Street, Ashland, OR: Ms. Wooding reported that she has
lived in Ashland for 47 years. She said that the schools should keep the libraries open this
summer and would like to see the 58 cents local option levy succeed.
Josh Gordon, 945 Cedar Way, Ashland, OR: Mr. Gordon spoke about keeping the libraries
open and said it should happen as soon as possible. Mr. Gordon also spoke about tourists and
low income residents who need internet service along with library employees who need their
jobs. He stated that the 58 cents is lower than what the community of Ashland has said they
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 2 of 8
were willing to pay. Mr. Gordon wants the committee to consider as many services as possible,
especially the $40,000 for access to the central system. He also said that he believes an out-of-
city user fee is appropriate.
Susan Rust, 42 N. Wightman, Ashland, OR:Ms. Rust said the library situation is an
embarrassment. She also said that she voted for an entire library system, and would not vote
for just one library that will have poorer services than before. She said there are too many
unknowns and doesn’t support passing a levy without having a well thought out plan. Ms. Rust
suggested that the communities who voted in favor of the measure get together and come up
with a plan.
Carolyn Peake, 500 Lakota Way, Ashland, OR: Ms. Peake reported that she worked for the
Lake Oswego Public Library for 21 years, is a MLS professional librarian, former president of
the Oregon Library Association and is a member of Friends of the Library. Ms. Peake said that
she was deeply concerned about City funding of the library so soon after the measure failed.
She said there are too many questions that must be answered before moving forward. Ms.
Peake spoke about how time will allow those involved to fully address the problem and ensure
future success. She also spoke about how no one was more saddened than her about the loss
of jobs and that she looks forward to when the library is open again.
Francis Guilfoyle, 657 C St., Ashland, OR: Mr. Guilfoyle, a Vietnam Veteran, explained that
he was at the meeting to offer himself as conduit for federal funds. He said he would be willing
to work at the library and is also willing to contribute money towards City of Ashland funds.
Wendy Eppinger, 190 Walker Ave., Ashland, OR: Ms. Eppinger talked about how she
wanted the library to reopen as soon as possible. Ms. Eppinger also spoke about the
importance of taking the time to figure out a way to fund the library. She said she was in
agreement with user fees and that library funding should be well-researched and well-planned
before any action is taken.
Bill Reeves, 681 A St., Ashland, OR: Mr. Reeves said he was embarrassed by the Jackson
County library situation and that County leaders should be chastised for their lack of planning.
Mr. Reeves spoke about how a long-term solution needs to be found. Mr. Reeves highlighted
various questions. Mr. Reeves also made a comparison between interim library funding and the
Hurricane Katrina-FEMA situation, expressing that money shouldn’t be spent just because it
looks like it’s doing something.
Dean Ritchie, 560 Sheridan St, Ashland, OR: Mr. Ritchie said he was a member of the
library. Mr. Ritchie talked about the lack of planning which resulted in the library situation. He
also said that 50% of the City of Ashland employees choose not to live in Ashland because of
the taxes and that many young families cannot afford to live here because of the taxes. Mr.
Ritchie said that a great deal of planning needs to be done and that the library should remain
closed until the County can come up with solution.
Camille Siders, 5297 Hwy. 66, Ashland, OR: Ms. Siders, a local teacher, spoke about the
importance of both reading and access to books. Ms. Siders expressed concern for children
who won’t have access to books and therefore, won’t be given the chance to develop a love of
reading.
Roylon Mortensen, 936 Cedar Way, Ashland, OR: Mr. Mortensen reported that he spoke
with Medford City Mayor, Gary Wheeler, this morning regarding the library. Mr. Mortensen
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May 21, 2007 PAGE 3 of 8
made a comparison between an ecosystem and the City. He said that, like an ecosystem, small
changes will affect what will grow here and what will not. Mr. Mortensen continued to say that if
we want to promote literacy and cultural values then we have to make sure the right
environment is provided. Mr. Mortensen encouraged the committee to support a resolution to
open the library.
Sue Lopez, P.O. Box 3134, Ashland, OR: Ms. Lopez , President of Friends of the Library,
said that Ashland has voted in favor (72%) of keeping the library open. She also said that the
City of Ashland is the pacesetter for the Rogue Valley. As President of the Friends of the
Library, Ms. Lopez reported that they will continue to support the programs at the library and try
to figure out a district. Ms. Lopez said that she supports a property tax.
Pauline Black, 974 Pinecrest Terrace, Ashland, OR: Ms. Black, a former library employee,
said that she loved the library and used it all the time. Ms. Black said the library should reopen
as soon as possible and about the need for kids to have access to books. Ms. Black also spoke
about how Ashland is a leader and should lead the way for Jackson County.
Anne Billeter, 4999 Griffin Crk Rd., Medford, OR: Ms. Billeter said that she was a Jackson
County Library Manager for 22 years. Ms. Billeter disclosed that she doesn’t have recall rights
and therefore, she won’t be rehired regardless of the committee’s decision. She talked about
Ashland being a leader in Jackson County. Ms. Billeter also said that she went to a Library
Advisory Committee Meeting and that County officials are evaluating options. It was reported
that Jackson County is trying to keep the system intact. Ms. Billeter also said that the County is
going to put out an RFP to find out how much library would cost. Committee member Gregorio
asked about funding a Children’s Program. Ms. Billeter said that she is opposed to focusing
exclusively on children and thinks it’s important for many groups.
Kurt Kessler, B St., Ashland, OR: Mr. Kessler commended Ms. Bennett for devising two
viable plans. Mr. Kessler said that he agrees that services be contracted out to the County. Mr.
Kessler talked about the library situation explaining that it was a funding problem, not an
administration problem. Mr. Levine clarified that those who managed the funds mismanaged
the money, not the library workers.
STAFF REPORT
Martha Bennett, City Administrator, and Lee Tuneberg, Administrative Services/Finance
Director, gave the staff report. Ms. Bennett started to discuss the Fire Department budget and
addressed the $400,000 carryover issue. Ms. Bennett stated that once the Fire Department
itemized its numbers, they found that they weren’t going to save $400,000 and in fact, are going
to spend 98.5% of their budget. Ms. Bennett said that this will have a significant impact on the
General Fund. Ms. Bennett explained that in both Fire and Police, some of the “cut” solutions
were to delay hire(s). However, Ms. Bennett said that future projections never included those
positions at full-time. Ms. Bennett reported that because of these errors, expenditures for FY
2007 will exceed revenue by $81,000. Ms. Bennett said that instead of carrying forward 2.9
million into next year, it will only be 2.2 million. Ms. Bennett said that potential solutions include
going back to particular departments to ask for other reductions or using the authorized 39 cents
toward required fund balances instead of making additions.
Mr. Tuneberg talked about how revenue from Strawberry was less than expected this year.
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 4 of 8
Councilor Jackson inquired about the Police Department vacancies. It was reported that there
are 3 vacancies right now, 1 Sergeant, 1 Lieutenant and 1 Officer but in the budget proposal it
was a hiring delay of 4 positions (1 Lieutenant and 4 Corporals). It was reported that the
deferral of hiring was for 6 months. Councilor Hartzell asked about the restructuring of the
Police Department. It was answered that the promotion of 4 Police Officers to 4 Police
Corporals is the equivalent to the Sergeants position. It was reported that the impact is
negligible.
Committee member Stebbins asked about ending fund balance and the legality of it. Mr.
Tuneberg reported that the City of Ashland has self-imposed ending fund balance requirements
and that it is not a true legal issue.
Committee member Everson asked how many times the fund balance had been so low. It was
later answered that it was 1997.
Ms. Thompson asked for clarification of “balance” and “out of balance”. Mr. Tuneberg said there
are two perspectives. The first , from Oregon budget law, is that funds balance when all
resources equal all requirements. The second perspective is whether or not annual revenues
equal annual expenditures. Mr. Tuneberg explained that revenues don’t have to equal
expenditures if there is a fund balance carryover that is larger than the target. This is because
those excess funds can be used to fund operations the next year.
Ms. Stebbins asked if there was an option for Fire to raise fees and encouraged looking at new
revenue streams. Councilor Hartzell said that both the state and federal government determine
ambulance rates.
Navickas/Hardesty m/s that the Citizen’s Budget Committee go to Police and Fire and
request more cuts to balance the General Fund.
Discussion:
Ms. Everson asked what the total contingency number was for the City. It was answered that it
was 1.7 million.
Committee member Levine spoke about how the budget is predicated on an arbitrary allocation
between Parks and the rest of the City. Mr. Levine wants to know if that allocation can be
revisited considering the needs of the City. Mr. Levine also said that it is not legally required
that Parks gets the 2.9 rate. Ms. Bennett told Mr. Levine that he was legally correct. Councilor
Hardesty said that Parks revenue will increase this year. Ms. Thompson agrees with Mr. Levine
and wants to look at the options on the table
Councilor Hartzell asked for the exact target for Police and Fire. Ms. Bennett said that they are
looking for about $200,000 in cuts.
The committee continued to discuss whether or not both Fire and Police should be asked for
additional cuts or if other departments should be asked. Ms. Bennett spoke about the morale
issue of asking departments that are in balance to make reductions.
Everson/Hartzell m/s to call the question. All Ayes.
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 5 of 8
Vote on Main Motion: Gregorio, Hardesty, Hartzell, Morrison, and Navickas, Yes. Bond,
Chapman, Everson, Heimann, Jackson, Levine, Silbiger, Stebbins, and Thompson, No.
Motion failed 9 to 5.
Everson/Levine m/s to not entertain any add packages.
Discussion:
Councilor Hardesty clarified that it was for outstanding add packages.
Councilor Hartzell asked Ms. Bennett to recap the impacts of the motion on certain additions.
Ms. Bennett listed some of the proposed additions such as the Computer Tech position,
consulting services for long-range planning, portion of CERT (most was already restored),
consulting services for Croman Mill Site/Railroad Property, Urban Planner, 24/7 computer
support and Class/Compensation study.
Councilor Jackson said that she is going to vote no on the motion because it’s disingenuous to
think that we can have increased services without paying for them. Councilor Jackson said that
to get long-range planning for the City, one has to pay for it. Councilor Chapman said that he is
also going to vote no on the motion. He said that Community Development Department has
taken too much pain and Fire Department not enough. Councilor Chapman said that he would
like to see an Urban Designer/Associate Planner added to the budget.
Councilor Hartzell inquired about the Class/Compensation study. Ms. Bennett explained that it’s
important to compensate employees accordingly so that the employee will work hard and stay at
his/her job. Ms. Bennett said that the study will look at the compensation and benefits of City
employees and that if the committee wants to evaluate the benefit packages then the study is
the place to start.
Hartzell motioned to amend main motion to include one part of the package that involves
nd
the Class/Compensation study. Motion died due to lack of 2.
Councilor Hardesty said she was in favor of restoring some of the Community Development-
Planning Division projects but hopes that staff can begin to handle that workload.
Heimann/Levine m/s to call the question. Bond, Chapman, Everson, Heimann, Levine,
Silbiger, Jackson and Stebbins, Yes. Hardesty, Thompson, Navickas, Morrison, Hartzell,
and Gregorio, No. Motion failed 8 to 6.
The committee members continued to discuss whether or not to make additions to the budget,
the resources needed for the different additions and the cost/benefit of such additions.
Vote on Main Motion: Bond, Everson, Gregorio, Hardesty, Hartzell, Heimann, Levine,
Morrison, Silbiger, Stebbins and Thompson, Yes. Chapman, Jackson, and Navickas, No.
Motion passed 11 to 3.
Chapman/Gregorio m/s that the committee implement the cost reductions totaling
$109,000 proposed in the memorandum dated May 17, 2007.
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 6 of 8
Discussion:
The committee discussed the overtime needed for special community events.
The committee discussed whether the Fire Department should be given a chance to present
different cuts.
Chapman/Gregorio m/s to amend the main motion to exclude $7000 in overtime for
special community events. Motion withdrawn.
Councilor Hartzell inquired about whether or not a department head has the discretion to
determine what line items to cut. It was answered that the committee approves the budget and
that there is some discretion allowed, however, a department head will have to explain the
choices to the committee.
Navickas/Hartzell m/s to amend the main motion to go with what the Fire Chief, Keith
Woodley, has cut and additionally go to the Police Department to ask for further cuts.
Motion withdrawn.
Ms. Bennett explained the impacts of the main motion on the Fire Department. It was reported
that the Fire Department originally cut $43,000 from overtime and that last Thursday, the
committee restored $35,000 of it. Ms. Bennett said the motion tonight would re-cut $28,000 in
overtime, $17,000 in training, $27,000 for CERT, and affect the CERT FTE. Ms. Bennett said
that it is a cut from the original submittal of approximately $330,000.
Councilor Hartzell asked if this motion would alleviate the need to cut anymore from the General
Fund. Ms. Bennett said that regardless of what happens tonight, the committee needs to
evaluate various revenue streams.
Ms. Thompson spoke about looking at cuts for different departments and the cost of Personal
Services.
Vote on Main Motion w/o amendments: Bond, Chapman, Gregorio, Hardesty, Heimann,
Levine, Morrison and Thompson, Yes. Everson, Hartzell, Jackson, Navickas, Silbiger and
Stebbins, No. Motion passed 8 to 6.
Everson/Bond m/s approval of budget with the changes that have been passed. Motion
withdrawn.
The committee discussed the tabled motion from Thursday, May 17, 2007. The tabled motion
was:
Bond/Silbiger m/s to approve the staff recommendation for the Budget Committee to
include a levy of 58 cents per $1000 on the September 2007 ballot and FY 2007-2008
budget.
Discussion:
It was reported that the motion should have included the words “up to” with regard to the 58
cents.
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 7 of 8
Bond/Everson m/s to amend the main motion to include “up to 58 cents…”.
Bond/Jackson m/s to amend the main motion to include the appointment of a broadly
based citizens committee including library professionals and others to design a full-
service library. Motion withdrawn.
Ms. Bennett clarified the role of the committee. Ms. Bennett said that the committee will be
giving City Council the legal right to consider property taxes as a way to fund the library. It was
reported that the committee sets the tax rate but that the voters will have to approve the tax.
The committee continued to discuss the library and the role of the committee.
Heimann/Thompson m/s to amend the main motion to specify that the funds be used
only for the library. All Ayes.
Councilor Navickas talked about moving quickly so that the library will be reopened in a couple
of months. He also spoke about increasing the amount of the levy.
The committee discussed increasing the tax rate and whether or not the budget committee
would need to reconvene. It was answered that the committee should consider an increased
tax rate during this current budget process.
Ms. Bennett spoke about a school option regarding the library. Ms. Bennett said that the
Ashland School District is working on a plan to provide library access during the summer.
Reported restrictions will be that only students can check out books and filters will be placed on
internet access. The estimated cost was reported to be approximately $6000.
Councilor Chapman inquired about the duration and conditions of the levy. It was reported that
City Council will have the authority to set those limits but that the Citizen’s Budget Committee
can reevaluate the tax rate next year.
Chapman/Everson m/s to call the question. All Ayes.
Vote on Main Motion w/ amendments: Bond/Silbiger m/s to approve the staff
recommendation for the Budget Committee to include a local option levy of up to
.58000/$1000 for the library on the September 2007 ballot and FY 2007-2008 budget.
Bond, Chapman, Everson, Gregorio, Hardesty, Hartzell, Heimann, Jackson, Morrison,
Navickas, Silbiger and Thompson, Yes. Levine and Stebbins, No. Motion passed 12 to
2.
Navickas motioned to increase a local option levy for the library up to .62000/$1000.
nd
Motion died due to lack of 2.
Hartzell/Gregorio m/s to increase the Property Tax Permanent Levy up to .01000/$1000
for this year only to provide library services in the City during the summer. Bond,
Everson, Gregorio, Hardesty, Hartzell, Levine, Morrison, Navickas, Silbiger, Stebbins and
Thompson, Yes. Heimann, Jackson and Chapman, No. Motion passed 11 to 3.
Navickas/Hartzell m/s to increase the tax rate by 15 cents for the interim period until a
levy can be put before the voters which will then be backfilled by that levy.
BUDGET COMMITTEE MEETING
May 21, 2007 PAGE 8 of 8
Discussion:
Councilor Navickas said that the term backfilled meant reimburse. He also said that he would
like to open the libraries open as soon as possible.
Mayor Morrison said that he was opposed to the motion stating that it wasn’t prudent. The
Mayor also spoke about how the committee took steps toward providing summer reading
programs for children and that now the research for the library needs to be done.
Mr. Levine asked about when the library could be reopened. Ms. Bennett reported that
negotiations with the County will begin in July. It was estimated that it might be open by the
middle of October.
Councilor Jackson expressed disagreement with the commingling of library operations and City
funds/programs.
Morrison/Everson m/s to call the question. All Ayes.
Vote on Main Motion. Navickas, Yes. Bond, Chapman, Everson, Gregorio, Hardesty,
Hartzell, Heimann, Jackson, Levine, Morrison, Silbiger, Stebbins and Thompson, No.
Motion failed 13 to 1.
Everson/Bond m/s that the City of Ashland budget committee approve and convey the
amended budget to council for adoption and approve taxes for the 2007-2008 fiscal year
at the rate of $3.8997 per $1000 of assessed value for operating purposes and in the
amount of $371,046 for payment of bond principal and interest and at the rate of 1.38000
per $1000 of assessed value as the Youth Activities local option levy and at a rate of up
to .58000 per $1000 of assessed value as the Library local option levy which will go to
voters in September 2007 and amend the budget in total but also in the General Fund as
amended to date but including $1,005,000 for library operations if approved by City of
Ashland citizens. All Ayes.
ADJOURNMENT
Meeting adjourned at 9:21 pm.
Respectfully Submitted,
Miranda Iwamoto
Account Clerk II