HomeMy WebLinkAbout11-20-1996 Special Council Mtg AUBURN CITY COUNCIL SPECIAL MEETING
1997 Budget Workshop
November 20, 1996
MINUTES
The meeting convened at 4:00 PM in the Council Work Area located in the
Mayor's Office. Those in attendance included Mayor Charles A. Booth, and
Councilmembers Barber, Brothers, Singer, Poe, Cerino, and Borden.
Councilmember Wagner was excused. Staff in attendance included Parks and
Recreation Director Dick Deal, Public Works Director Frank Currie, Assistant City
Attorney Judith Ausman, City Attorney Michael J. Reynolds, Senior Planner AI
Hicks, Fire Chief Bob Johnson, Police Chief Dave Purdy, Airport Manager John
Anderson, City Engineer Dennis Dowdy, Personnel Director Brenda Kennedy,
Senior Accountant Shelly Coleman, Financial Analyst Sherri Crawford, and City
Clerk Robin Wohlhueter.
I. Introduction
Mayor Booth presented an overview of the agenda to Members of the Auburn
City Council and staff.
Diane Supler highlighted changes to the 1997 Preliminary Budget since the end
of October. In the General Fund revenue reflect a decrease of $150,000 for
brokered natural gas and an increase of $142,700 for Engineering overhead.
General' Fund expenditure changes include an increases of $15,000 for
server/printer maintenance, $2,000 for the Association of Washington Cities to
work with the State legislature on telecommunications; and salaries and wages
at $125,000 for benefits for employee who expect to retire next year.
The Ending Fund Balance for the General Fund is $1.9 Million. Ms. Supler
discussed changes to the Arterial Street, Cumulative Reserve, Water, Sewer,
Storm Drainage, Solid Waste, Airport, Equipment Rental, and Capital Projects
funds. There is a change in the Storm Drainage Fund in the amount of
$1,170,000 to purchase the Crista Ministries property rather than pay
contractural 8% interest in 1997.
A previous workshop on revenue and capital projects highlighted activities in
those areas. The focus of tonight's workshop will be on proposed 1997
expenditures in the General fund and Propriety funds. Ms. Supler reviewed the
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November 20, 1996
Page No. 2
City's goals. She highlighted areas that maintain the current level of service
even though there is revenue uncertainty for the future. Salary increases have
been set at 3% (CPIVV) except for the mandatory arbitration in public service that
includes police and fire. It is projected the ending fund balance will maintain
$2.0 million in the General fund, and $1.0 million in the utility funds. A
determination will be made on net loses to some funds. Ms. Supler reported
there are no program improvements or staff increases recommended for 1997.
Total revenue is estimated at $66 million and total expenditures is estimated at
$69,043, 100.
Ms. Supler projected 1996 reserves will be needed to balance the budget for
1997. Taking into account the assumptions and trends presented at the revenue
workshop, Ms. Supler projected the General fund ending fund balance in five
years at $18,000. Solutions may include other revenue enhancements other
than what is currently being considered or a determination on the level of
service. in the 1997 Budget, Ms. Supler reported the General fund revenue is
expected at $26,056,100 and General fund expense is expected at $26,870,000.
She indicated the 1996 ending fund balance will be used balance the proposed
1997 Budget.
Ms. Supler highlighted distribution of funding by function in areas of public
safety, public services and quality of life from 1994 to 1997. 74% of revenue
projected for the General Fund are derived from taxes. Staff is projecting an
increase in sales tax for 1997. The General fund balance is at 9% or $2 million
,generally maintained at 10%. In anticipation of the opening of the Puyallup
'Casino, Ms. Supler reported the proposed budget reflects a 35% decrease in
contributions made by the Muckleshoot Indian Tribe.
In summary, expenses from the General fund for salaries and benefits
represents 70%, 2% for capital, intergovernmental is 3%, and other is 17%.
Salaries reflect an increase to staff step increases and 3% COLA. Supplies
represent a $40,000 increase in paper costs. Capital expenditures are reduced
by $300,000 to assist in balancing the budget. Interfund expenses are costs for
printing services and equipment rental which are also reduced in the proposed
budget
There is a tremendous amount of General fund fixed costs that include salaries,
insurance, utilities, Valley Corn, and operating leases that are required to
maintain a certain level of service. Ms. Supler indicated the margin is small in
making choices of where the City can cut.
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November 20, 1996
Page No. 3
Ms. Supler briefed the Council on the changes to other funds which include
Special Revenue, Debt Service, Capital Projects, Insurance, and Fiduciary
Funds.
II. Department 1997 Budget Presentations
A. Mayor/Council
Diane Supler presented the Mayor and Council proposed budgets.
Highlighted changes include salaries and benefits for Mayor, Council and
Mayor's Secretary to reflect an increase; a decrease in professional
services to $2,000.
A. Legal
Judith Ausman distributed divisional information as it pertains to the Legal
Department's budget. Divisions include the city clerks, code books, legal
services relating to legal representation, advice, review, and criminal
prosecution. Ms. Ausman explained salaries and benefits reflect a
reallocation of dollars to the General Fund to better record where actual
staff time is spent. Advertising, recording fees, membership dues,
election costs and printing services are reflected as increases to the City
Clerk cost center. Expenses to update and print the City's code book
remain the same.
Ms. Ausman highlighted the changes to the Legal Department Budget that
include outside counsel for the land use has been moved to the Planning
budget which reduces the other services and supplies line item from
$90,000 to $52,000. Increases in the Legal Department budget are in
salaries and capital. Capital purchases anticipated for 1997 include a fax
machine and purchase of federal law books.
Regarding the City's contract prosecutor, Ms. Ausman anticipates the
case load to increase to 5,097 cases due to legislation passed in 1996.
B. Personnel Department
Brenda Kennedy presented the Personnel Department budget for 1997.
Personnel is divided into Personnel Administration, Civil Service
Commission, and Municipal Court. Overall budget for the Personnel
Department is $992,400.
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November 20, 1996
Page No. 4
This year Ms. Kennedy reported no new employment related lawsuits or
grievances have been filed. This is due to development of contractural
policies.
Most budget line items are reduced with the exception of salaries and
capital purchases. Salaries and wages are increased due to staff step
increases. Capital increases are to add equipment to distribute
identification cards to employees of the City. There are a number of
residents who have expressed concern of employees identifying
themselves when approaching private property. Other equipment
purchases include telephone equipment to assist the hearing impaired.
Ms. Kennedy summarized employment practices used this year in
promoting internal growth. As of this date there have been 34 positions
open; 41% of these positions have resulted in employees moving to new
positions; 9 of which were promotions.
The Civil Service Commission budget reflects an increase in salaries and
benefits due to extra help needed for recruitment processes for the fire
and police departments. Ms. Kennedy reported the City's temporary
clerical pool is used for this process. Testing costs are reflected in the
other services and supplies line item.
The Municipal Court budget reflects an increase of $26,000. The salaries
and wages line item reflects an $4,000 increase. This is due to the
Judge's salary being budgeted in salaries and wages instead of
Professional Services. Additionally, a new position was added. Capital
expenses reflect funding to purchase juror's ch'airs and church pews for
courtroom.
Ms. Kennedy summarized changes in the municipal court operations.
Contracting with King County for judicial services provides "fast-"tracked"
review of domestic violence cases to approximately 30 days. This has
resulted in a 400% increase in cases resolved rather than dismissed.
Readiness hearings have resulted in reduced jury trials, reduced staff time
for prosecutors, public defenders, court staff, and police. First
appearance hearings are held in Auburn by Aukeen District Court which
eliminates the need for detectives to transport prisoners to Kent. Goals
for 1997 are intended to reduce judicial hours and costs and improvement
to overall process by appointing a Magistrate to hear infraction cases, and
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November 20, 1996
Page No. 5
reduce clerical costs by obtaining DISCUS terminals for other agencies in
the criminal justice system. Efficiencies are reflected in a reduction in
court hours from 81 hours to 73.75 per month.
C. Finance Department
Diane Supler addressed the changes the City is seeing in population
growth both commercially and in retail. There are no staff increases
proposed in the 1997 budget. The Finance Department evaluated
efficiencies in its day to day operations in order to maintain current levels
of service.
Ms. Supler presented the Finance Department budget for 1997.
Functions of the Finance Department include budgeting monitoring and
preparation, revenue and expense reporting, payroll, utility billing,
information services, central telephone and reception, purchasing, mail
processing, risk management, and fixed assets. Cities of Algona, Pacific
and the Auburn School District are looking at ways to gain efficiencies in
administrative service areas. Because of the volume of printing Auburn
out sources for a number of printing projects. The cost of purchasing new
printing equipment far exceeds the return on the investment. Copy
machines are located throughout City and run two to three thousand
copies per day. The current equipment was not designed to handle that
kind of load. A number of studies are being conducted with regard to
printing services.
City wide costs charged to the Finance Department budget include
computers and printers, copy machines (except Police and Fire), postage,
paper and office supplies, telephones, and flex plan. Because of the
proposed tight budget, staff is looking at the economy of scale in these
areas.
Cell phones are used by a variety of departments particularly police and
fire department. The expenses are charged back to the departments and
employees pay for personal use. Ms. Supler indicated a proposed policy
will be reviewed at a later date.
Ms. Supler summarized estimated changes from 1996 to 1997 budgets.
Highlighted were salaries showing a decrease due to moving the cost of
retired LEOFF I member medical and insurance benefits budgeted in
salaries to department 98, to a miscellaneous account to better manage
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November 20, 1996
Page No. 6
uncontrollable costs in this area; an increase in supplies due to an
increase in paper costs; and an increase in other services and supplies
that include telephone scan line, software modifications, flex plan, paper
and office supplies, maintenance, computer/network conversion, and
communication lines. Ms. Supler described flex plan, a benefit program
for City employees. This program is a pre-commitment of salary dollars
for future use to pay daycaro, dental, vision, and medical costs.
A discussion ensued with regard to distribution of minutes.
The meeting recessed at 6:05 PM. At the same time there was a power
outage due to weather conditions.
The meeting reconvened at 6:30 PM.
D. Planning Department
Paul Krauss reviewed the Planning and Community Development
Department proposed budget. This area includes Planning, social
services and the Municipal Airport, An increase in salaries and wages
reflects step increases for staff members. Current planning includes
SEPA review, and development management functions. This year the
Planning Department defended the Growth Management Hearings Board
with issues surrounding railroad freight. In the other services and supplies
line item there is a reduction in legal defense costs associated with the
Comprehensive Plan and the King County Health Department issues.
Total overall budget for the Planning Department is reduced.
Paul Krauss discussed the proposed Human Services budget for funding
levels set at $243,840 for social service programs. Mr. Krauss pointed out
Auburn is one of the few cities where no reduction is proposed in funding
levels for social service programs. Social service proposed funding levels
are recommended by the Human Services Committee and the Planning &
Community Development Committee. Social service programs are funded
by Community Development Block Grant Funds.
Discussion was held with regard to further funding commitments for social
service programs made in prior years. This projection was made based
on the revenue increases. This year the social service programs realize a
1.04% increase. It is the consensus of the Council, based upon current
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November 20, 1996
Page No: 7
revenue trends and the City's cash position, that no further increase in
social service programs be proposed.
· AirpOrt
Paul Krauss presented the Auburn Municipal Airport budget. The Airport
Fund is a self supported fund. No General Fund money is used to support
the services provided by the Airport. The Airport is managed by the City's
Airport Manager, John Anderson. The Airport providing hangar and tie-
down facilities. Over the years many improvements were made through
federal grants for improvements to the Airport. However, facility
depreciation was not anticipated.
In 1997 the City anticipates improvement to the Airport's cash position in
order to fund required improvements. Mr. Krauss reported the Airport is
an asset to the community by providing jobs and generating taxes. Airport
hangar roof repair will rebid and rents will be raised to cover the costs.
The City is looking at a 3.5 acre site to the west in order to enhance
facilities to better market airport activities such as flight school and
instruction and other airport concessions. Questions were raised with
regard to privatization of municipal airports and the potential to issue
bonds. Finance Director Supler reported the bond .rating would not
support issuance of bonds at this time. Regarding privatization of
municipal airports a report has been requested.
A decision was made to modify the agenda to review the Police and Fire
Department budget. Public Works and Parks Department budget will be
presented on November 21 at 4:00 PM.
E. Police Department
Police Chief Dave Purdy presented the Auburn Police Department
Budget. He discussed the Police Department vision statement and
mission statement and highlighted the COPPS Program (Community
Policing and Problem Solving). The COPPS Program is a significant shift
in how the Police Department conducts its business. It establishes
partnerships with community citizens using training and education. The
program empowers citizens for problem solving in their community and
elevates an awareness in the community leaving police available for
emergencies. Auburn is divided into three districts. Each district has a
district commander, watch commanders, and problem solving teams
available 24 hours day.
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November 20, 1996
Page No. 8
A question was raised regarding special assignment and training for bike
patrol officers. Additionally, Chief Purdy commented upon a recent
neighborhood summit held at Mount Baker Middle School. A citizen
survey was conducted. Most citizens are satisfied with the Auburn Police
Department, are willing to assist the Police Department, and generally feel
safe about their neighborhood.
The 1997 proposed Police budget reflects an 5.2% increase in salaries
and wages, Valley Corn realizes an increase of 28% due to an increase in
calls from the Casino, Supermall, and Racetrack. Additionally, there are
two new fees due to a voted King County levy for the purpose of
maintenance and radio systems. Chief Purdy indicated temporary drug
asset funds and crime bill matching grant funds will provide for an
evidence/property custodian position. This will free up a police officer
currently assigned to these responsibilities. This program is limited to
three years.
Chief Purdy finalized his comments by reviewing proposed capital outlays
for 1997. They include improvements to the jail in the amount of $15,100,
purchase of four COPPS Bicycles in the amount of $2,000, and office
furnishing in the amount of $2,000.
F. Fire Department
Fire Chief Bob Johnson presented the proposed 1997 budget for the
City's Fire Department. The Auburn Fire Department employs 73
employees operating three pumpers and two aid cars. On an annual
basis they respond to 5700 calls out of three fire stations serving 38,000
citizens within a 25 square mile area. Twenty-four hour staffing requires a
Battalion Chief, three pumpers staffing three captains, six firefighters, and
two aid cars and four firefighters. It is anticipated Station 33 will respond
to over 1,000 calls in 1997.
Mr. Johnson reported the Fire Administration budget reflects a decrease
in total budget to $311,900, the Fire Suppression Division reflects a
increase to $4,292,800, Fire Prevention Division reflects a proposed
budget of $386,600, Fire Training Division reflects a proposed budget of
$116,500, Fire Facilities/Equipment/Apparatus Division proposed .budget
is $212,700, the Special Operations Division proposed 1997 budget is
$43,300, Disaster Services Division reflects a $4,300 proposed 1997
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November 20, 1996
Page No. 9
budget, and Medical Operations Division proposed budget for 1997 is
$68,300. Overall expenditure changes represents a 5% increase.
Chief Johnson commented on Fire and Aid apparatus needs and
changes, and discussed HOM impact on the Fire Department. There is
approximately $300,000 set aside to fund apparatus replacements.
The meeting adjourned at 8:25 PM.
Approved this/G~/~day of X-~~cZ,~,LX--// , 1996
Charles A. Booth, Mayor Robin Wohlhueter, City Clerk