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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. th 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