HomeMy WebLinkAbout2007-05-22 Budget Committee Minutes
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 1 of 6
City of Ashland Budget Committee Meeting
Draft Minutes
May 22, 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 22, 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
STAFF REPORT
City Administrator, Martha Bennett, and Administrative Services/Finance Director, Lee
Tuneberg presented the staff report. Mr. Tuneberg started the meeting with a summary
of the changes and impacts on the approved budget (see attached handout). Mr.
Tuneberg reported that the total approved budget with the Library local option levy and
1 cent increase was $91,938,831 with total appropriations of $74,358,085. Mr.
Tuneberg asked the committee to review the changes and ask any questions.
Ms. Thompson inquired about the entry under General Fund, Outstanding Items, Ending
Fund Balance (it was ($97,409)). Mr. Tuneberg said that number was a combination
between the Fire Department adjustments and reductions plus impacts from Strawberry.
Mr. Tuneberg also spoke about the budget calendar and remaining procedures. He
reported that the public hearing will be held on June 5, 2007. Mr. Tuneberg also
explained that because of the Library local option levy, the City will file an extension to
certify the taxes pending the results in September. Mr. Tuneberg reported that if the
levy doesn’t pass, then parts of the budget book will have to be replaced with updated
inserts. Mr. Tuneberg also spoke about the survey. He asked that it not be filled out
until the budget book is distributed to each member.
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 2 of 6
Committee member Levine asked when City Council will have to make a decision
regarding the Library local option levy. It was reported that City Council needed to
make a decision by June 27, 2007. Mr. Levine reminded the committee that the
$1,005,000 is for 12 months and that the library will be open in FY 2008 for less than 12
months.
COMMITTEE COMMENTS
Chairman Thompson presented the committee with a memorandum regarding General
Fund Trends (see attached handout). Ms. Thompson started by commending Ms.
Bennett and Mr. Tuneberg for jobs well done. Ms. Thompson said that there had been
decent growth in revenues in recent years, however, this year there was a significant
decrease. Ms. Thompson said that she understood that Strawberry impacts this year’s
numbers but reminded the committee that Strawberry is a 1-year revenue stream and
therefore, should not be reflected in the revenue/expenditure trend. Ms. Thompson said
that the growth in expenditures was becoming greater than the growth in revenues.
She also said that Personal Services represented 40% of the overall budget and 63% of
General Fund expenditures. Ms. Thompson spoke about a need to evaluate Personal
Services (vacancies, hiring freeze, and fringe benefits). Ms. Thompson also spoke
about carrying over ending fund balances and a need to control expenditures. Ms.
Bennett spoke about capital projects not being finished in one year and then being
pushed into the next year. She said that it was important not to generalize the funds.
Committee member Gregorio asked Ms. Bennett and Mr. Tuneberg for their best
projection with regard to revenues and expenditures. Mr. Tuneberg said yes, that the
City is seeing more costs than it can generate revenue. Mr. Tuneberg recommended
that the budget committee talk about it during the budget process and look for ways to
increase revenues or decrease expenditures. Ms. Bennett spoke about the long-term
viability of ambulance services. She also said that income/expense policies for
development need to be evaluated and that rates will have to be examined. Ms.
Bennett said that employee costs are not the only place to look. Committee member
Stebbins talked about fringe benefits growing at a disproportional rate. Ms. Stebbins
said the City should do a Class/Compensation study and focus on the dependent care
benefits.
Councilor Navickas said he was frustrated with the budget process and didn’t think the
committee should’ve cut all the additions. Councilor Navickas spoke about economic
development, investing in the community and the importance of long-range planning.
Councilor Navickas said that a $.39 tax rate buffer was unnecessary. He also said that
good benefits are needed to attract and retain talented staff.
Councilor Hardesty said that she was disappointed in the lack of development/planning.
Councilor Hardesty also said that she wants to look at other ways to cut for next year
(trade one activity for another). She spoke about looking at the social/economic grants,
Chamber of Commerce payments and fringe benefits. Councilor Hardesty disclosed
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 3 of 6
that she doesn’t have insurance through the City and uses her federal insurance of
which she pays 40%. She suggested supplementing housing instead of fringe benefits.
Committee member Everson said that she didn’t realize she had a point of view about
taxes until she joined the budget committee and now she realizes that she isn’t opposed
to paying them. Ms. Everson also said that she would like City Council to set priorities
before the budget process is started. Ms. Everson spoke about the importance of
economic development and encouraged City Council to evaluate the monies from
Strawberry Lane and possibly use it for planning. Ms. Everson said that until there is
economic development the community will not be able to grow. Ms. Everson said that
the long-term modeling produces confusion and that the projected numbers are not
realistic. Ms. Everson expressed sadness for the Fire Department cuts. She also
suggested that an economic metric be developed about residents, business and tourism
and that it be included in the budget.
Councilor Jackson said that economic development and long-range planning are key
elements and cautioned against restricting those activities. Councilor Jackson talked
about using the authorized property tax and inquired as to why other committee
members don’t want to use it. Councilor Jackson spoke about property tax being a
fairer way to increase revenue because it can be very recessive to raise fees for those
in the low income bracket.
Ms. Stebbins said that it was her impression that City Council gave the direction not to
raise the property taxes. Ms. Stebbins also said that her prior votes were not motivated
by a need to keep the tax rate down.
Ms. Thompson also said that she wasn’t opposed to property taxes but understood that
taxes would only be raised if it was prudent. Ms. Thompson said that Council should
determine the priorities and that the committee should raise taxes if those priorities are
justified.
Councilor Jackson said that she has regrets with how the budget turned out and wanted
the committee to consider some important additions.
Councilor Hartzell spoke about the Master Plan and the need for economic
development. She said that without the Master Plan, economic opportunities will be
missed. Councilor Hartzell reported that City Council did place the Master Plan as a
priority.
Mr. Levine said it would have been helpful to quantify the value of long-range economic
development.
Ms. Stebbins praised the City Councilors for all of their hard work and long hours. She
said that community development is a very high priority. Ms. Stebbins spoke about how
it would be helpful if the budget committee was told of Council’s goals ahead of time
because Council is privy to the various community values and perspectives.
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 4 of 6
Councilor Hartzell said that City Council did set goals.
Mr. Bond said that tonight’s comments reflect frustration for a lack of policies and
direction that should’ve been provided by City Council. Mr. Bond said that City Council
should provide a visioning process so that the budget committee knows where the
community stands and what the community is willing to fund.
Committee member Heimann said that he didn’t know of City Council’s goals from last
year. Mr. Heimann suggested that a sub-committee from the budget committee be
created so that the priorities of the community can be identified and spending practices
can be analyzed.
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Councilor Hardesty said that a goal setting session is scheduled for July 14 and that
she is hopeful that Council will set 18-month goals.
Ms. Everson clarified that she thought the overall budget process was good and much
improved from last year.
Councilor Hartzell said that the committee was a fluid group and that it was a positive
sign that they discussed how to improve the process. Councilor Hartzell suggested that
instead of a creating a sub-committee, the entire budget committee should meet on a
quarterly basis to discuss what is happening with City Council and the community.
Councilor Hartzell also said that Council had set goals and that most of them were 2-4
year projects.
Mr. Levine said he would be willing to meet quarterly and spoke about first meetings
usually taking place in January. Mr. Levine expressed that he would like to begin the
process earlier in the year.
Ms. Bennett explained about the difficulties of meeting in the fall. She explained that as
soon as the budget process comes to a close, the finance department begins work on
closing the fiscal year and the audit. Ms. Bennett also spoke about the data during the
summer months and how it isn’t reflective of an entire year. Ms. Bennett recommended
that the committee discuss the ambulance services and Parks before next year’s budget
process. Ms. Bennett suggested that the committee meet between December and the
st
1 of year.
Mr. Gregorio said that he had mixed emotions but was very impressed with the current
discussion. However, he also said that this conversation should’ve happened 2 months
ago so that this year’s budget could’ve been one that he’d feel better about. Mr.
Gregorio also voiced approval of changing the process so that everyone can be well-
informed about the goals.
Councilor Hartzell spoke about the likelihood of receiving grants for Master Planning.
Ms. Bennett said that she thought it was likely that the City would receive a grant for the
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 5 of 6
Croman property (probably state controlled). It was reported that the grant will not pay
City staff or the code writing process. However, it was reported that the City will
probably not receive a grant for the Railroad property and definitely not for the
Downtown Plan.
Hartzell/Gregorio m/s to reconsider last nights vote on the budget for the purpose
of adding the proposed $80,000 for Master Planning for one year to be paid for
through an increase in the authorized property tax rate of 4.5 cents.
Mr. Levine said that there was more than $80,000 in excess already allotted for the
library and that there wasn’t a need to levy additional taxes.Councilor Hartzell said that
the 58 cents for the library will only be used if Council cannot find a less expensive
solution. She also spoke about the opportunities for development being time sensitive.
Ms. Stebbins expressed concern that the monies generated from an increased tax rate
will not be applied towards the Master Plan. She gave an example from the previous
year. It was reported that last year there wasn’t a Community Development Director.
Mr. Gregorio asked if it could be guaranteed that the monies will be spent on the Master
Plan. It was reported that the projects are urgent and that to retain employers, the
Master Plan needs to be done. The committee continued to discuss grants and the
$80,000.
Councilor Jackson spoke about the history of property tax rates. She said the
committee authorized levying more last year, than this year. Councilor Jackson said
that the proposed General Fund tax rate for this year was 1.62190 and last year it was
1.70690. Mr. Tuneberg said that Councilor Jackson was correct; the difference could’ve
been added back but the committee chose not to do that. Mr. Tuneberg also spoke
about the history of the rates and the reasons for the fluctuations.
Ms. Thompson asked about the overall impact. It was answered that the committee
ended up at the tax rate of $5.48 plus the $.58 if approved by the voters.
Everson/ Jackson m/s to call the question. Everson and Jackson, Yes. Bond,
Hartzell, Heimann, Levine, Morrison, Stebbins, Gregorio, Thompson, Silbiger,
Navickas, Hardesty, and Chapman, No. Motion Failed.
Ms. Thompson inquired as to whether or not this is for one year or multiple years. It
was answered that the Croman property needs to be completed in the year but that the
Railroad property may take more than a year. However, it was reported that both
properties are time sensitive.
Councilor Chapman asked about whether or not $80,000 is enough money. It was
answered that this was the number that the Community Development Director proposed
to the committee.
BUDGET COMMITTEE MEETING
May 22, 2007 PAGE 6 of 6
Hartzell withdrew Main Motion.
Hartzell/Gregorio m/s to reconsider the May 21, 2007 decision of the committee
on the budget. All Ayes.
Hartzell/Gregorio m/s to modify the budget adopted last night, to include an
$80,000 expenditure in the Community Development Department for Master
Planning as specified to be paid for by the revenue from a 4.5 cents increase in
property tax rate. All Ayes.
The committee discussed if and when they should have additional meetings. No
definitive decision was made.
It was reported that with the changes made tonight, the total budget would be
$92,018,831 and total appropriations of $74,438,085.
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 $3.9447 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 the rate of up to $.58000 per $1000 of assessed
value as the Library local option levy dependent upon public approval at the
th
September 18 vote. All Ayes.
ADJOURNMENT
Meeting adjourned at 8:01 pm.
Respectfully Submitted,
Miranda Iwamoto
Account Clerk II
City of Ashland
Fiscal Year 2007-2008 Summary of Changes
Tentatively
2008ApprovedOutstanding2008
ProposedChangesRevisedItemsApproved
GENERAL FUND
Administration Department121,051 121,051 121,051
Administration Department - Library- - - 1,022,800 1,022,800
Administrative Services - Municipal Court427,360 427,360 427,360
Administrative Services - Social Services Grants121,000 121,000 121,000
Administrative Services - Economic & Cultural Grants527,519 527,519 527,519
Administrative Services - Miscellaneous1,000 1,000 1,000
Administrative Services - Band60,509 60,509 60,509
Police Department5,458,208 5,458,208 5,458,208
Fire and Rescue Department5,106,175 5,106,175 (109,000) 4,997,175
Public Works - Cemetery Division339,165 339,165 339,165
Community Development - Planning Division2,331,548 2,331,548 80,000 2,411,548
Community Development - Building Division811,211 22,780 833,991 833,991
Transfers 500 500 500
Contingency400,000 400,000 400,000
Ending Fund Balance1,219,929 1,219,929 (97,409) 1,122,520
TOTAL GENERAL FUND 22,78016,925,175 16,947,955 896,391 17,844,346
COMMUNITY DEVELOPMENT BLOCK GRANT FUND-
Personal Services23,600 23,600 23,600
Materials and Services203,700 203,700 203,700
Other Financing Uses (Interfund Loans)- - -
TOTAL CDBG FUND -227,300 227,300 - 227,300
STREET FUND
Public Works - Street Operations3,327,919 3,327,919 3,327,919
Public Works - Storm Water Operations834,957 834,957 834,957
Public Works - Transportation SDC's188,800 188,800 188,800
Public Works - Storm Water SDC's172,500172,500172,500
Public Works - Local Improvement Districts685,998685,998685,998
New Debt400,000400,000400,000
Transfers 200,000200,000200,000
Contingency89,00089,00089,000
Ending Fund Balance1,223,2401,223,2401,223,240
TOTAL STREET FUND7,122,414-7,122,414 7,122,414-
AIRPORT FUND
Materials and Services111,032 111,032 111,032
Capital Outlay228,605 228,605 228,605
Debt Service35,172 35,172 35,172
Other Financing Uses (Interfund Loans)- - -
Contingency5,000 5,000 5,000
Ending Fund Balance2,942 2,942 2,942
TOTAL AIRPORT FUND -382,751 382,751 - 382,751
CAPITAL IMPROVEMENTS FUND
Personal Services176,216 176,216 176,216
Materials and Services489,275 489,275 489,275
Capital Outlay300,000 300,000 300,000
Transfers302,573 302,573 302,573
Other Financing Uses (Interfund Loans)- - -
Contingency50,000 50,000 50,000
Ending Fund Balance807,222 807,222 807,222
TOTAL CAPITAL IMPROVEMENTS -2,125,286 2,125,286 - 2,125,286
DEBT SERVICE FUND
Debt Service2,016,821 2,016,821 2,016,821
Ending Fund Balance601,085 601,085 601,085
TOTAL DEBT SERVICE FUND -2,617,906 2,617,906 - 2,617,906
City of Ashland
Fiscal Year 2007-2008 Summary of Changes
Tentatively
2008ApprovedOutstanding2008
ProposedChangesRevisedItemsApproved
WATER FUND
Water- Conservation Division177,300 177,300 177,300
Public Works - Forest Lands Management Division385,670 385,670 385,670
Public Works - Water Supply448,819 448,819 448,819
Public Works - Water Treatment1,137,338 1,137,338 1,137,338
Public Works - Water Distribution3,802,816 3,802,816 3,802,816
Public Works - Reimbursement SDC's- - -
Public Works - Improvement SDC's605,250 605,250 605,250
Public Works - Debt SDC's124,850 124,850 124,850
Debt Services785,704 785,704 785,704
Other Financing Uses (Interfund Loans)- - -
Contingency144,000 144,000 144,000
Ending Fund Balance2,804,328 2,804,328 2,804,328
TOTAL WATER FUND -10,416,075 10,416,075 - 10,416,075
WASTEWATER FUND
Public Works - Wastewater Collection2,479,706 2,479,706 2,479,706
Public Works - Wastewater Treatment1,926,453 1,926,453 1,926,453
Public Works - Reimbursement SDC's239,403 239,403 239,403
Public Works - Improvement SDC's121,423 121,423 121,423
Debt Services1,788,160 1,788,160 1,788,160
Contingency140,000 140,000 140,000
Ending Fund Balance5,539,312 5,539,312 5,539,312
TOTAL WASTEWATER FUND -12,234,457 12,234,457 - 12,234,457
ELECTRIC FUND
Electric - Conservation Division942,887 942,887 942,887
Electric - Supply5,757,504 5,757,504 5,757,504
Electric - Distribution5,459,671 5,459,671 5,459,671
Electric - Transmission903,600 903,600 903,600
Technology Debt252,000 252,000 252,000
Transfers- - -
Contingency375,000 375,000 375,000
Ending Fund Balance1,722,245 1,722,245 1,722,245
TOTAL ELECTRIC FUND -15,412,907 15,412,907 - 15,412,907
TELECOMMUNICATIONS FUND
IT - Internet 1,228,233 1,228,233 1,228,233
IT - High Speed 468,607 468,607 468,607
Debt Services356,000 356,000 356,000
Contingency100,000 100,000 100,000
Ending Fund Balance362,716 362,716 362,716
TOTAL TELECOMMUNICATIONS FUND -2,515,556 2,515,556 - 2,515,556
CENTRAL SERVICES FUND
Administration Department1,502,580 1,502,580 1,502,580
Administrative Services Department 1,575,530 1,575,530 1,575,530
IT - Computer Services Division 1,165,588 1,165,588 1,165,588
City Recorder Division298,569 298,569 298,569
Public Works - Administration and Engineering1,387,186 1,387,186 1,387,186
Contingency150,000 150,000 150,000
Ending Fund Balance82,987 82,987 82,987
TOTAL CENTRAL SERVICES FUND -6,162,440 6,162,440 - 6,162,440
City of Ashland
Fiscal Year 2007-2008 Summary of Changes
Tentatively
2008ApprovedOutstanding2008
ProposedChangesRevisedItemsApproved
INSURANCE SERVICES FUND
Personal Services85,000 85,000 85,000
Materials and Services700,000 700,000 700,000
Contingency100,000 100,000 100,000
Ending Fund Balance908,275 908,275 908,275
TOTAL INSURANCE SERVICES FUND -1,793,275 1,793,275 - 1,793,275
EQUIPMENT FUND
Personal Services268,701 268,701 268,701
Materials and Services503,222 503,222 503,222
Capital Outlay1,438,000 1,438,000 1,438,000
Contingency43,000 43,000 43,000
Ending Fund Balance508,357 508,357 508,357
TOTAL EQUIPMENT FUND -2,761,280 2,761,280 - 2,761,280
CEMETERY TRUST FUND
Transfers25,000 25,000 25,000
Ending Fund Balance774,453 774,453 774,453
TOTAL CEMETERY TRUST FUND -799,453 799,453 - 799,453
PARKS AND RECREATION FUND
Parks Division4,048,076 (93,000) 3,955,076 3,955,076
Recreation Division1,051,727 1,051,727 1,051,727
Golf Division419,018 419,018 419,018
Debt Service3,500 3,500 3,500
Transfers110,000 110,000 110,000
Contingency35,000 35,000 35,000
Ending Fund Balance784,245 93,000 877,245 877,245
TOTAL PARKS AND RECREATION FUND -6,451,566 6,451,566 - 6,451,566
YOUTH ACTIVITIES LEVY FUND
Personal Services196,000 196,000 196,000
Materials and Services2,381,000 2,381,000 2,381,000
Ending Fund Balance216,893 216,893 216,893
TOTAL YOUTH ACTIVITIES LEVY FUND -2,793,893 2,793,893 - 2,793,893
PARKS CAPITAL IMPROVEMENTS FUND
Capital Outlay331,000 331,000 331,000
Ending Fund Balance26,926 26,926 26,926
TOTAL PARKS CAPITAL IMP. FUND -357,926 357,926 - 357,926
TOTAL BUDGET91,099,660 22,780 91,122,440 896,391 92,018,831
Less Ending Fund Balance17,585,156 93,000 17,678,155 (97,409) 17,580,746
Total Appropriations73,514,504 (70,220) 73,444,285 993,800 74,438,085