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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 City Council Meeting Minutes 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. City Council Meeting Minutes 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. City Council Meeting Minutes 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 City Council Meeting Minutes 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 City Council Meeting Minutes 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 City Council Meeting Minutes 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. City Council Meeting Minutes 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 City Council Meeting Minutes 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