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
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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