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CITY COUNCIL
SPECIAL MEETING MINUTES
November 5, 2004 2:00 PM
Council Chambers
2005 BUDGET STUDY SESSION
I. CALL TO ORDER AND MAYOR’S OPENING REMARKS
Mayor Peter B. Lewis called the special meeting of the Auburn City
Council to order at 2:00 p.m. in the Council Chambers of the Auburn City
Hall located at 25 West Main Street in Auburn. The following
Councilmembers were present: Rich Wagner, Sue Singer, Gene Cerino,
Bill Peloza, and Roger Thordarson. Councilmember Lynn Norman arrived
at 2:17 p.m. Councilmember Nancy Backus arrived at 3:05 p.m.
Staff members present included: Finance Director Shelley Coleman,
Financial Planning Manager Dawna Truman, Information Services
Director Lorrie Rempher, Public Works Director Dennis Dowdy, Planning
and Community Development Director Paul Krauss, Employee Relations
and Compensation Manager John Fletcher, Parks and Recreation
Director Daryl Faber, Assistant City Attorney Joseph Beck, and City Clerk
Danielle Daskam.
Mayor opened the work session on the proposed 2005 budget. Finance
Director Coleman presented the discussion points utilizing several
PowerPoint slides.
II. 2005 PRELIMINARY BUDGET
Councilmember Wagner stated that the vision and mission statements
should remain constant but suggested working the City’s tag line into the
budget document.
A. Budget Summary
Finance Director Coleman presented the budget summary, which
distinguishes revenues by source and expenditures by type. She
noted that the revenues and expenditures do not include fund
balances and transfers.
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City of Auburn Council Meeting Minutes November 5, 2004
Director Coleman estimated a General Fund rollover from 2004 of
$2.5 million and unanticipated revenue of approximately $3 million.
Councilmember Wagner questioned the transmittal letter, which
includes a statement that the budget does not include utility
increases, although rate increases were recently adopted. Director
Coleman explained that the utility increases would be reflected in
the final budget document.
Councilmember Wagner suggested a change on page 6 of the
document regarding resolving transportation issues. Mayor Lewis
stated that the SR 164 safety provision will be changed to read in
part: “. . . reopen Academy Drive for emergency purposes and
begin process for creation of SR 164A between SR 18 and SR
164.”
Councilmember Wagner referred to page 7 of the transmittal letter
and the mention of the utility billing software. He inquired whether
the new software will accommodate monthly utility billing. Director
Coleman responded that the new utility billing software will
accommodate monthly billing. She suggested that completing the
software conversion first and then moving to a monthly billing cycle
would be a more successful transition.
Councilmember Peloza suggested deleting the words “and
citizens” from page 1, second paragraph, of the transmittal letter.
He also questioned the language of item 3 on page 4 of the
transmittal letter. Director Coleman suggested that a more
appropriate statement would include the terms working capital or
fund balances rather than the term “reserve funds.”
Councilmember Peloza also suggested including language about
crosswalk implementation on page 7, under Crosswalk and
Lighting Needs.
Councilmember Peloza questioned the “Miscellaneous” revenue
source on page 17. Director Coleman explained that the revenue
and expense summary is established according to the budget and
accounting reporting system. Miscellaneous revenue includes
interest revenue and transfers.
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City of Auburn Council Meeting Minutes November 5, 2004
Director Coleman presented the items funded by fund balance or
working capital: Park Construction Fund $620,000, Justice Center
Parking $350,000, Arterial Street Fund $1,740,000, Fire Station
Relocation $750,000, Commercial Retail $200,000, Justice Center
$10,300,000, Downtown and Neighborhood Revitalization
$600,000, Water Fund $2,900,000, Sewer Fund $8,100,000 and
Storm Fund $1,329,400.
Council briefly discussed acquisition of the Justice Center and
possible financing sources.
Other considerations included in the budget is the creation of a
new Information Services Internal Service Fund, labor contract
negotiations are underway, rate increases for water and storm, and
a Metro payment increase in 2005.
B. Budget Process
Director Coleman reviewed the budget process. The budget
process begins with the Council retreat held in April. Departments
develop their annual budgets in June, which are then submitted to
the Mayor in July through August. Council Committees review
preliminary department budgets in August and September, and the
preliminary budget is officially filed during the third week of
October. Public hearings on the budget are held in September and
November. The Council is expected to adopt the budget in
December.
Councilmember Wagner expressed the desire to have more public
participation in the budget process. He suggested posting the
transmittal letter on the City’s web site.
C. Budget Policies
Councilmember Peloza suggested replacing the words “snack bar”
located in the last paragraph under the heading “Other Funds” with
the words “restaurant facility.”
Director Coleman briefly reviewed the budget policies including
such issues as the State’s proposal to streamline sales tax. Mayor
Lewis suggested adding a statement to the effect that passage of
streamline sales tax could require immediate review of the current
budget, comprehensive plan and zoning.
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City of Auburn Council Meeting Minutes November 5, 2004
Director Coleman presented the Council’s vision for the future
followed by activities that meet the Council’s goals and vision for
the future.
Director Coleman outlined the budget strategies as presented on
page 45 of the budget document including: providing continued
public safety, avoiding additional staff unless there is offsetting
revenue or savings in expense, controlling discretionary spending,
maintaining existing buildings, and continuing to operate enterprise
functions on a business basis.
Council discussed the Local Street Fund and Save Our Streets
Program. Approximately $1.2 million will be budgeted for the Local
Street Fund. The Local Street Fund funding sources include
$200,000 from property tax, $170,000 from interest from Fund 328,
$150,000 from utilities, and $680,000 from the 2004 sales tax
rollover.
Councilmembers reviewed property tax rates including other
special levies. The City’s property tax rate for 2005 is $2.88 per
$1,000 of assessed valuation.
D. Financial Plan
Director Coleman directed the Council to page 53 of the budget
document, which includes a summary of the financial structure and
an overview of all City funds. Director Coleman also referred the
Council to budget tables that identify revenues by source and by
fund, expenditures by object, budget allocation by fund, General
Fund revenue by funding source, six-year forecasts, debt capacity
and obligations, and working capital.
Councilmember Peloza suggested including an explanation for the
estimated actuals for the budget allocation by fund table.
Mayor Lewis referred the Council to page 75 of the budget
document and the table identified as General Fund Revenue and
Expenditure Forecast 2005-2010. The table reflects the effects of
long-term revenue shortfall.
Councilmember Wagner suggested including the effects of
streamline sales tax within the six-year planning forecast.
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City of Auburn Council Meeting Minutes November 5, 2004
Councilmembers briefly discussed councilmanic bonds, debt
capacity, and obligations.
Director Coleman reviewed a graph highlighting the affects of
recent legislation on the City’s revenues.
Councilmember Peloza suggested modifying the wording on page
81 relating to capacities for user fees, business and occupation
tax, and business licensing.
E. Baseline Budget
Director Coleman presented the baseline budget information
contained on pages 99 through 199 of the preliminary budget
document. She noted that the preliminary budget does not contain
the salary and benefit increases as some labor contracts have yet
to be settled. The final budget document will include the salary
and benefit increases for those contracts that have been settled by
the end of the year.
Director Coleman reported that the City’s contributions to the
PERS and LEOFF retirement plans will increase in July 2005. The
affect of the increases will result in $377,000 in additional
employee benefits costs for the six-month period in 2005. In
addition, the medical insurance premiums will increase
approximately six percent in 2005.
Councilmember Peloza suggested adding the Airport Park and the
th
15 Street median improvement as 2005 goals.
Councilmembers reviewed the itemization of the Non-departmental
Fund, which includes the following allocations: Executive
Department $1,638,700, Retirement Pay-off/Salary $445,000,
LEOFF 1 Benefits/Long Term Care $502,300, Gateway Program
$85,000, Professional Services $160,000, ESA
Engineering/Construction $160,000, Community Center Study
$10,000, Federal Intergovernmental Relations $90,000,
Dues/Newsletter/Advertising $95,200, Justice Center
Parking/Lease Payment $531,000, Fire Station Relocation
$750,000, Courtyard Repair and Neighborhood Revitalization
$270,000 and Transfers Out $7,749,700.
Councilmember Wagner expressed concern with adequate funding
for the Les Gove Park community center study. It was noted that
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City of Auburn Council Meeting Minutes November 5, 2004
$90,000 in additional funding is provided under professional
services.
In response to questions from Councilmember Peloza regarding
funding for the Save Our Streets Program, Director Coleman
confirmed that the Save Our Streets Program will be a separate
special revenue fund.
Councilmember Peloza inquired regarding the Insurance Fund
found on page 181 of the budget document. Director Coleman
explained that the fund earns interest only. Investment income has
not met the expenses for the fund; however, the balance of the
fund is sufficient to fund the program. The insurance fund is
maintained in part to pay unemployment insurance claims.
Director Coleman reviewed the General Fund Transfers Out:
Purchase Option-Justice Center $5,300,000, Information Services
Fund $1,234,500, Downtown Revitalization $500,000, Library Bond
Debt $303,500, Park Construction Fund $210,000, Commercial
Retail Fund $200,000, and Local Law Enforcement Block Grant
$1,700. Mayor Lewis suggested that the Downtown Revitalization
allocation include a statement that the fund is to be a revolving
fund where funds will be invested in the community with an
expected return to the City over time.
Director Coleman announced that the Valley Communications debt
payment is not due in 2005. The debt payment will resume in
2006.
Director Coleman reviewed Fund 328 Capital Improvements. Fund
328 includes the following allocations: Justice Center Purchase
Option $10,300,000, Public Art $30,000, City-paid Transportation
Impact Fees $50,000, Small Business Assistance Center $24,000,
Advertising $20,000, General Fund Fire Relocation Study $50,000,
Information Services Computer “$” $600,000, Funds 321 Park
Projects $200,000, Interest Earnings to Street Preservation
$170,000 and REET 2 for TIP Street Projects $500,000.
Director Coleman reviewed the Park Construction Fund for
acquisition and development of parks. The allocations include
$260,000 for Lakeland Hills, $30,000 for the Jacobson Tree Farm,
$200,000 for Fulmer Park, $100,000 for the Les Gove Park
Community Center, and $30,000 for Fenster Park. Director Faber
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City of Auburn Council Meeting Minutes November 5, 2004
updated the Council on discussions with the State regarding
acquisition of Game Farm Park. At this point, the State is
interested in turning the park over to the City.
F. Program Improvements
Councilmembers reviewed the recommended program
improvements.
In response to questions from Councilmember Norman regarding
the program improvement for six electronic scoreboards, Director
Faber explained the scoreboards are slated for Sunset Park and
the new ballfields at GSA Park. McDonalds and Auburn Little
League appear to be interested as corporate sponsors.
Director Coleman noted that new staffing levels are off-set by new
revenues or cost reductions.
In response to questions from Councilmember Wagner, Director
Coleman explained that Court staff are part of the overall Human
Resources budget. One additional staff person has been
requested for a new day jail program in an effort to reduce
detention costs. Councilmember Wagner recommended that the
budget include performance measures for the municipal court.
Councilmember Peloza inquired regarding the program
improvements to purchase equipment for the golf course (as seen
on pages 221, 222, and 223 of the budget document). Director
Coleman explained that the golf course does not participate in the
equipment rental fund. Director Faber responded that the trencher
puller will be shared by the golf course and the Parks Department.
The remaining equipment would replace equipment that is currently
seven years old.
G. Capital Program Summary
Director Coleman noted that changes to be included in the final
budget include utility rate increases for water and storm,
Information Services Department reorganization, non-fleet vehicle
fuel costs, golf course admission tax, and the Local Street Fund for
the Save Our Streets Program.
Director Coleman explained that it is proposed that the golf course
admission tax that goes to the General Fund be transferred back to
the golf course.
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City of Auburn Council Meeting Minutes November 5, 2004
Director Coleman referred the Council to the 2005 capital project
summary contained on page 226 of the budget document. A more
detailed discussion of the capital projects is contained in the
Capital Facilities Plan.
Councilmember Wagner suggested delineating key Save Our
Streets (SOS) program projects. Director Coleman stated that the
Final Budget document published in February 2005 will contain the
detailed list of SOS projects.
Councilmember Peloza spoke about the need for a new golf course
clubhouse. Mayor Lewis suggested that Councilmember Peloza
begin a community drive to raise funds for a new golf course
clubhouse. Councilmember Peloza urged the Council to take steps
to ensure upgraded amenities for the golf course. Director Faber
stated that a new clubhouse would net approximately $298,000 in
new revenues per year. However, the difficulty is with the two
years of construction and startup when no new revenues are being
realized. The fund needs approximately $600,000 to fill the gap
during construction of the clubhouse. Mayor Lewis suggested that
if funding is found, the clubhouse project would proceed. The
Mayor urged staff and Council committees to work on possible
proposals for consideration by the full Council.
III. ADJOURNMENT
There being no further discussion, the meeting adjourned at 4:57 p.m.
APPROVED THE ______ DAY OF DECEMBER, 2004.
Peter B. Lewis, Mayor Danielle Daskam, City Clerk
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City of Auburn Council Meeting Minutes November 5, 2004
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