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HomeMy WebLinkAbout11-21-1996 Special Council Mtg AUBURN CITY COUNCIL SPECIAL MEETING 1997 Budget Workshop November 21, 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 Acting Parks and Recreation Director Dick Deal, Finance Director Diane L. Supler, Public Works Director Frank Currie, Fire Chief Bob Johnson, City Engineer Dennis Dowdy, Utilities Engineer Dwight Holobaugh, Personnel Director Brenda Kennedy, Senior Accountant Shelly Coleman, Financial Analyst Sherri Crawford, and City Clerk Robin Wohlhueter. I. Introduction The Mayor introduced Acting Parks and Recreation Director Dick Deal. II. Department 1997 Budget Presentations A. Parks & Recreation Mountain View Cemetery Dick Deal presented the Mountain View Cemetery divisional budget for 1997. Mr. Deal announced with the opening of a new veterans cemetery in Maple Valley, there will be approximately 25-30% revenue loss to Auburn because burials at the new cemetery will be free for veterans. To manage this loss the City anticipates development of Section 8 of the Cemetery in 1997. This year the number of burials are expected to be between 360 and 365. The Cemetery's overall budget is $818,900 for 1997. Revenue from operations is anticipated at $617,500, $190,000 revenue is expected on earned interest from the Cemetery Endowed fidicuary fund, and approximately $11,000 in other revenue sources. The Cemetery employs a full time Cemetery Coordinator, Office Assistant, 4-Maintenance Personnel, and 4-Seasonal Workers. Areas of City COuncil Meeting Minutes November 21, 1996 Page No. 2 responsibility include burials, maintenance, development of additional sites, and average 320 burials annually. Planned improvements for 1997 include continued improvements at the entry and along mountain view drive and placement of a wrought iron fence at Pioneer Cemetery. Mr. Deal provided a brief history of Mountain View Cemetery. Twelve years ago, the Parks & Recreation Department took over the Cemetery. Careful management of operations secured a sound financial position for this fund. Mr. Deal reported the City has expressed interest in purchasing three properties, approximately 15 acres, that adjoin the Cemetery. Ground water and mausoleum issues were discussed. Dick Deal pointed out that 35-40% of burials are by cremation. Golf Course Dick Deal presented the proposed 1997 divisional budget for the Auburn Golf Course. The Auburn Golf Course is an enterprise fund, 100% self supporting. Total budget for the golf course is proposed at $895,200. The main revenue source for the golf course is green fees. Anticipated revenue projections include $890,000 in green fees and $5,000 from other revenue sources such as cart path fees. The Auburn golf course employs five full time persons, a greens superintendent and four maintenance staff. Additionally, there are 8- seasonal workers. Responsibilities include maintenance of approximately 150 acres of turf, maintenance nd improvements of an 18-hole facility. Over 60,000 rounds of golf are played annually. The City contracts for clubhouse services. In 1997 improvements to the golf course are anticipated for the fairways, greens, irrigation systems on the 15th and 16th holes, security fencing on the south side of the course, and cart path improvements. Many projects were put on hold in 1996 due to weather conditions. Planning for a new clubhouse at the golf course is anticipated in three to five years. Parks and Recreation Department Mr. Deal explained the Parks and Recreation Department's main responsibility is to preserve, provide and protect the quality of life and history in our community. Division responsibilities are administration, park facilities, recreation services, senior services, arts commission, historical museum, and Auburn public library. A budget comparison for 1996 is City Council Meeting Minutes November 21, 1996 Page No. 3 shown at $2.8 million and in 1997 at $2.9 million. Mr. Deal explained there is an increase of $125,000 in 1997 in salaries and benefits, supplies, other services, decreases in capital outlay due to a tight budget year, and interfund services and rentals due to less printing needs. Mr. Deal highlighted budget responsibility and planned activities for 1997 in the administrative area. Total budget for 1997 is $217,300; a $1,300 increase from last year. Staffing in this area includes a director, department secretary, and accounting clerk. Planned activities in 1997 include development of the White River Trail, master plan for Olson Canyon and Fenster sites, and Park Plan update. In the area of park facilities the budget for 1997 is proposed at $1,192,500. This represents an increase of approximately $30,000 from 1996. There are 21 parks, 350 acres developed, 100 acres of undeveloped parks, and an interurban trail. Other responsibilities include the City's flower program, 45 beautification areas, a library, senior center, museum, fire station, and pea patch. This area is staffed with an assistant director, park maintenance supervisor, ten maintenance workers, and twenty seasonal workers. Planned activities include completion of Millpond Park, and repair to Game Farm Park picnic shelter as a result of a fire. In recreation services, Mr. Deal directed attention to revenue and budget projections for 1997. Revenue anticipated in 1997 provide for expenses in employing instructors and for supplies. The proposed 1997 budget is $917,500; and increase of $50,000. This division is responsible for over 900 preschool, youth and adult classes, over 600 youth and adult athletic teams, and 10 city wide events (such as Good Oi' Days and Santa Parade), specialized recreation programs, and scholarships. Staffing levels include a recreation manager, recreation coordinator, youth coordinator, 3.5 recreation specialists, registration clerk, 105 part-time staff, and 800 volunteers. Planned activities for 1997 include focus on teen programs, year round youth and adult recreation and athletics. With regard to the City's late night program, Mr. Deal reported in 1997 there will be two programs a month. The afternoon program will continue at three sites in winter and early spring. Mr. Deal anticipates $15,000 funding from King County to fund the late night program twice a month. Siting for the late night program is difficult during the winter months City Council Meeting Minutes November 21, 1996 Page No. 4 because of school activities. Councilmember Borden urged consideration of suppodd for three late night programs a month. Mr. Deal reported there is more value in the afternoon school program. The late night program is a social opportunity that provide a variety of activities for middle school aged kids. Expenses for the late night program have increased to $1500.00 to $2000.00 per night. Senior Services 'Dick Deal presented the 1997 Budget for senior services provided at the Senior Center. The 1997 proposed budget is $284,800. Revenue is anticipated at $54,000. There are variety of activities centered around recreation, socialization, and educational activities for seniors. Classes such as computer labs are offered to adults and seniors. Other areas of responsibility include daily meals and meals on wheels, health clinics and wellness, and information and referral services, Staffing level at the Senior Center includes a senior center supervisor, a recreation specialist, a program assistant, 20 padd-time staff and instructors, and 130 volunteers. Planned activities for 1997 include continued focus on space needs, exploring off-site programming, and reaching unserved residents. Staff anticipates an impact on senior citizens due to cut backs in state and county funding in areas such as medical services. Staff at the senior center assist senior citizens in seeking out community programs to assist low income seniors. Adds Commission The Adds Commission budget for 1997 is $276,600 compared to $250,200 in 1996, Revenue source is derived from grants and ticket sales is anticipated at $86,400. Mr. Deal reported program tickets are provided at a low cost or no cost with exception to the Bravo series. Other areas of responsibility include Auburn art series, exhibits program, shades of summer, 4th of July festival, youth adds month, adds-in- education, and adds information services. These responsibilities are supported by two full time people and a number of volunteers. In 1997 planned activities include reorganization of youth adds month, regeneration of literary program, technical assistance and support of local City Council Meeting Minutes November 21, 1996 Page No. 5 arts organizations, completion of artwork on 15th Street NW, and downtown banners.' There is additional funding for an art piece next year funded from the City's 328 account, real estate excise tax fund. This project is carried over from the 1996 budget. Additionally, the City anticipates a new project that includes working with the transit hub or planning with the Regional Transit Authority. Historical Museum Dick Deal reported the Museum budget will increase approximately $10,000 from 1996. The proposed 1997 budget is $82,200 compared to $71,200 in 1996. The City has an interlocal agreement with the White River Valley Historical Society (WRVHS) that will expire next year. Management of the Museum programs and exhibits, care of the Museum artifact collection and marketing Museum activities to the public are areas of responsibilities. Staffing at the Museum includes a Museum director, part~time collections caretaker and 80 volunteers. Planned activities include complete the capital campaign, 100-Museum treasurers exhibit, paintings by Mr. Momuro, begin construction of improvements, and a new interlocal agreement with WRVHS. The capital campaign's goal is to raise $450,000 to upgrade the Museum. Additionally, in August the Museum will be closed to install a new HVAC system and upgrade the exhibits. Auburn Public Library Mr. Deal discussed the proposed budget for Auburn Public Library. The Auburn Public Library is open seven days a week. It provides outreach programs to homebound residents, youth and low income residents, adult literacy, youth summer reading club, and adult reading clubs. The library staffs a Library director, 5-full and part-time librarians, circulation supervisor, 5 full and part-time clerks, and 5 part-time pages. and 10 volunteers. Planned activities for 1997 include an annexation vote to join King County Library system in February. There are no major changes from 1996 to 1997. City Council Meeting Minutes November 21, 1996 Page No. 6 The Library's HVAC system is old and will need to be repaired. It consists of three units. One unit has already been replaced in the amount of $15,000. Should another unit need replacing, there is an emergency fund to pay for the repairs. Mr. Deal indicated staff is working to update the Park Plan. The meeting recessed at 5:25 PM. The meeting reconvened at 5:45 PM. B. Public Works Frank Currie presented the proposed 1997 budget for the Public Works Department. The Public Works Department includes Engineering, Building, and Maintenance & Operations divisions. Mr. Currie highlighted differences between the 1996 and 1997 proposed budget. As a result of reorganization of building, engineering, and building maintenance divisions a reduction in salaries and wages are reflected. The supplies area is increased. The Building Division includes permits and inspections. Mr. Currie discussed changes to salaries and wages, professional services and element totals. Salaries and wages are increased due to accounting changes in staff. The professional services line item reflects an estimate of expenditures for 1997 at $385,700. Mr. Curde described Building Maintenance division responsibilities to City Hall, Police Department, and parts of a number of other public buildings. Mr. Curde highlighted areas that included salaries and wages, benefits, professional services, and capital outlays. Janitors are located in this cost center for 1997 reflecting an increase in salaries and wages. There is a $45,000 increase in capital outlays due to two HVAC systems at the Police Department. The Engineering Division is made up of traffic, drafting, project administration, utilities, GIS, survey, design, and construction and inspection. There is a decrease in salaries and wages primarily due to reallocation of project oriented work. Expenditures are directly reflected by project specifically in utilities. Professional services reflects an increase to account for developer project costs based what they expect to City Council Meeting Minutes November 21, 1996 Page No. 7 accomplish in 1997. This includes utility projects that will be accounted for by project. Finance Director Supler explained the how the developer costs are tracked through the City's accounting system. Initial fees are paid, staff time is tracked and accounted for on specific projects to recover the City's costs. Ms. 8upler reported this area is accounted for as "like income" meaning if there is income there will be an expense to match or a full recovery cost system. Discussion ensued with regard to the number of fees charged a developer. Councilmember Poe questioned on site civil plan check fees, building fees, and other developer extension fees. Frank Currie explained one is for the building permit fee, based on an estimated value of the building, and the other is a plan check fee calculated when plans are turned into the City. Mayor Booth suggested staff prepare a comparative study with other jurisdictions. Councilmember Poe expressed concern with regard project costs and staffing levels as presented in the proposed 1997 budget. After an analysis was conducted on staffing levels, Mr. Currie responded it was less expensive to hire temporary staff on a project by project basis. These employees are accounted for the same as a consultant is accounted for in the budget. Positive impact to the General Fund is reflected' in the machinery and equipment line item. Equipment needs to be upgraded and is project oriented. Federal projects allow the City to charge back. The Engineering budget is decreased by $400,000. Arterial Street projects and capital projects proposed for 1997 were discussed at a recent workshop. A summary of projects is provided on page 183 of the 1997 Preliminary Budget. Frank Currie highlighted economical changes from 1996 to 1997. The cost of equipment is lower in 1997 than it was in 1996 because of a lift truck is now being rented on a monthly basis. City Council Meeting Minutes November 21, 1996 Page No. 8 Frank Currie discussed the Water Fund budget for 1997. The water utility is responsible for the administration and operation of the City's water system. Mr. Curde pointed out operating revenue for the Water Fund is due to the sale of water. Operating income and/or loss is used to measure the health of the utility. Proceeds on the sale of bonds is anticipated at $3.5 million, contributions from joint participation is $3.0 million and other contributions for a total $6.9 million. Mr. Currie expects to spend $6.7 million on construction projects in 1997. Under discussion a questions were raised with regard depreciation and the cost of the aquifer study. Mr. Currie indicated much of the $50,000 per month expense is for consultant fees and actual construction costs which are critical to obtaining future water rights. Staff is working closely with the Department of Ecology. Dwight Holobaugh explained scientific data includes comprehensive data, acquisition data, sorting of data, and evaluation data on what the City can quantify that is acceptable for the City, Department of Ecology, and the Muckleshoot Indian Tribe. This is a three year program scheduled for completion in the fall of 1999. Once the application is submitted the City expects an issuance of water rights within one to two years. Mr. Holobaugh explained the City is collecting 5/7ths of the total cost of this project. If the City does not follow through on this process, Mr. Holobaugh explained the City would have to go to a water moratorium, no new connections would be authorized, the City would not be able sell wholesale water to adjoining neighbors. Total project is approximately $7.2 million. Expenditures to date is $2.0 million. Planned expenditures is anticipated at $4.0 to 4.5 million in 1997. Mr. Holobaugh pointed out the City will gain 2 million gallons of capacity with an expenditure of $2.0 million. The current market price to purchase water is $8.0 million for 2 million gallons of water. Frank Currie discussed the Water Fund ending working capital projected at $1.5 million. The City is committed to working towards a $2.0 million reserve in the Water Fund. Dwight Holobaugh interjected that $2.0 million for each utility by the year 2000 for a total of $6.0 million in utility reserves. City Council Meeting Minutes November 21, 1996 Page No. 9 The Sanitary Sewer Fund is projected to receive $7.5 million in revenue expected from Metro for sewage line usage at the West Valley Inceptor. Fixed assets and construction in replacement of sewers that have bad grade and infiltration. Next year staff will be updating the sewer comprehensive plan modeling the system. If $1.5 million in revenue was not coming the ending working capital would be down to $200,000. It is anticipated an rate increased should be considered next year. Frank Currie presented the proposed budget for the Storm Drainage fund. Revenue anticipated for this fund is $2.6 million. Operating income is anticipated at approximately half the revenue. The City expects proceeds from the sale of bonds at approximately $1.5 million. Planned projects for 1997 are reflected in the 1997 Preliminary Budget on pages 185 and 186. Mayor Booth reported citizen concerns raised during the last year with regard to the City's storm drainage system. Frank Currie indicated projects completed in the past have not been high profile projects but rather maintenance related. Phase two of the Brannon Park project is currently underway. Frank Currie reported the working capital for the storm drainage fund is healthy. Frank Currie presented the Solid Waste proposed budget for 1997. The Solid Waste division is responsible for the collection of solid waste from Auburn residents including recycling. Proposed 1997 budget line items highlighted included services and charges showing $5.6 million to RST Disposal, the City's agent for collection of solid waste; 60% goes to the landfill and 40% for the operation of garbage pick up. Intergovernmental services line items reflects an expense for state taxes. The ending fund balance shows a $1.0 million balance. These funds are held in reserve should there be a labor concern. Councilmember Borden commented upon a Christmas recycle brochure that provides hints on wrappings. In the Equipment Rental division, Mr. Currie reported departments have realized a $20% reduction in rates. The Equipment Rental division provides maintenance, service, acquisition and disposition of rolling stock for the City. Equipment and vehicles are monitored and recycled to ensure use efficiency and replacement. Ending working capital is projected at $2.0 million. City Council Meeting Minutes November 21, 1996 Page No. 10 Ms. Supler thanked the City Council for their overall support of a conservative budget this year. She reported where other cities are experiencing layoffs, Auburn does not anticipate any layoffs at this point. The City of Auburn's financial position is conservatively projected for 1997 due to unpredictable revenue streams. On a quarterly basis, the City's financial position will be presented to the City Council. Should there be a change in revenue that would allow for other project funding workshop will be scheduled. Ms. Supler welcomed any comments or thoughts on the proposed 1997 budget. Mayor Booth addressed Councilmember Wagner's concern presented in a letter date November 17, 1996 regarding goals. The Library issue will be included and offered as a goal in the 1997 final budget. Additionally, Councilmember Poe suggested additional goals that staff will also consider for inclusions in the 1997 final budget. The meeting adjourned at 7:05 PM. Approved this ~'A day of ~ ,1997 Charles A. Booth, Mayor Robin Wohlhueter, City Clerk