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HomeMy WebLinkAbout11-05-1997 Special Council Mtg CITY OFAUBURN SPECIAL MEETING OFTHE CITYCOUNCIL November 5, 1997 5:00 PM Minutes The Auburn City Council met in special session on November 5, 1997 at 5:00 p.m. in the Council Work Area located in the Mayor's Office of City Hall. Mayor Booth called the meeting to order at 5:00 p.m., and the following Councilmembers were present: Rich Wagner, Jeanne Barber, Trish Borden, Sue Singer, and Gene Cerino. Councilmembers Stacey Brothers and Fred Poe were absent. Staff members present included: Finance Director Diane L. Supler, Assistant Finance Director Shelly Coleman, Financial Analyst Sherri Crawford, Grant Accountant Joe Guinasso, Fire Chief Bob Johnson, Assistant Fire Chief Russ Vandver, Police Chief Dave Purdy, Planning and Community Development Director Paul Krauss, Senior Planner AI Hicks, Public Works Director Frank Currie, City Attorney Michael J. Reynolds, Assistant City Attorney Judith Ausman, Parks and Recreation Director Dick Deal, Assistant Personnel Director Dan Watts, and City Clerk Danielle Daskam. Mayor Booth reviewed the budget process to date, including Council study sessions held to develop the Council's goals and objectives and mission and vision statements. Finance Director Supler began the presentation on the 1998 Budget with a report on the status of revenues and expenditures. Revenues through the end of September were at 80% of the 1997 estimated revenues and above projections. Expenditures at the end of September were at the 69% level. She predicted a strong balance fund at year end. Finance Director Supler reviewed some of the 1997 program highlights. During 1997, the joint chaplaincy program was initiated in the Fire and Police Departments. A total of six local ministers are part of the program. The Police and Fire Departments are also coordinating neighborhood programs. The two departments work together to form block watches, disaster preparedness and other neighborhood programs. The Water Division began working on reservoir levels in an effort to reduce pumping cycle times and increase pumping efficiency with no loss in service level. Public Works changed their practice for shoulder grading. The City received an A-2 bond rating this year. The City was instrumental in coordinating efforts for the FAST Corridor Project. Departments also coordinated efforts on such projects as telecommunications. Special Meeting of the City Council November 5, 1997 Page 2 Earlier this year, the City Council developed a new vision statement: A well planned community which values its small town heritage and offers an opportunity for people of all ages to enjoy life. The City Council's mission statement targets public safety, comprehensive planning, infrastructure, recreation and cultural services, youth programs, human services, a broad economic base, and a vibrant downtown. The goals of the budget process include: Maintain essential programs at presents levels of service · Develop a workable strategy to achieve Council goals · Recommend modifications to meet changes in City circumstances The budget process began with each department preparing their segment of the budget. The departments were limited to a three- percent increase in discretionary expenditures in their budget requests. The Finance Department developed salary, insurance, internal service, and revenue estimates. Each department presented their preliminary budget to the Mayor and Finance Department, and then presented their budget to the appropriate Council committee where it is presented in a detailed format. In September, a revenue forecast presentation was given to the full Council. The final budget and property tax ordinances will be presented to the City Council on November 17, 1997 for adoption. State law requires the City to set its property tax levy by November 30. The salaries budgeted this year were budgeted, for the most part, at 90% of CPI. The CPI was 3.7%. Salaries were budgeted with a 3.3% increase. Although, departments were limited to a 3% increase in discretionary expenditures, some departments include large expenditures which are outside the control of the department because of their contractual relationships. Some of the expenses include service contracts with: Valley Com, King County Jail, RST Disposal, King County Metro for sewer, and King County for election costs. Finance Director Supler reviewed the Council goals and the status of the work programs for each goal: I. Protect and improve our residential neighborhoods · Neighborhood Block Watches Special Meeting of the City Council November 5, 1997 Page 3 The Police Department has been working with captains in other block watches to help organize other neighborhood block watches. AmeriCorps team members will also work to help establish neighborhood block watches. · Neighborhood Disaster Preparedness The Fire Department has been working in neighborhoods to promote disaster preparedness. The Red Cross has also established emergency supply storage units throughout the city in case of disaster. · Civil Code Violations The City is working aggressively with several apartment complexes and King County Health to eliminate health and safety risks. · Site Plan Review Process Planning and Community Development Director Krauss explained a work program will be in place in 1998 for the site plan review process. II. Assure public safety · Expand Community Oriented Policing Program Community oriented policing program is an ongoin9 program. Training classes have been held at area schools. Chief Purdy explained that the city is divided into three districts and each district is divided into two sectors. Officers are assigned to a sector and rotate shifts within that sector. Councilmember Wagner requested the final budget include a map of the city's sectors. · Regional HazMat Team The Fire Department is participating with two groups to coordinate and develop a regional HazMat team. · Bicvcle Safetv Prowlram The Parks and Recreation Department, Fire Department, and Police Department are working together on this program to provide classes and helmets. · Safety and Trainincl Video Library A small safety and training video library exists now and efforts will be made to increase the resources. III, Increase revenue for transportation construction · Impact Fee for Transportation Impact fees for transportation have been discussed with the Council. The Council has approved a contract with a consultant to review and update the Tmodel. · Regional and State Fundincl for Grade Separations Special Meeting of the City Council November 5, 1997 Page 4 The City received $2.5 million from King County and the Port of Seattle for work on the 3rd Street SW and South 277th crossings. The City is participating in an effort at the state level for additional funding for transportation. The City is also pursuing funding assistance at the federal level. · Revenue Source for Payback of Bonds Staff is still working on this goal. · Intermodal Transit Hub The City received some grant funding for design work on the intermodal transit hub. The City's consultant on the downtown plan, Arai/Jackson, will include the transit hub in their study. Planning and Community Development Director Krauss reported the Downtown Task Force is comprised of representatives from the City Council, the business community, the hospital, the Planning Commission, senior center, and other residents. The consultant will also solicit comments from the financial, education, medical and other business communities. Councilmember Wagner suggested a public safety representative on the Downtown Task Force. · Funding Opportunities for Non-motorized Transportation The non-motorized plan is approximately 75% complete. The project must be completed before funding can be explored. IV. Increase number of opportunities for youth involvement · Evaluate Current Formal and Informal Youth Programs This program is in the conceptual stage. · Fire and Safety Trainincl Classes The Fire Department implemented training classes including job shadowing and internships. · Fundinq for Design and Construction of Skate Board Park The 1998 Budget includes a program improvement for the design of the skate board park. A community group was organized to raise private funding. V. Increase planning efforts for targeted areas · Downtown Transit Hub As discussed under transportation, the City's consultant, Arai/Jackson is working on the design for the downtown transit hub. · Economic Development Economic development is ongoing. The City, as well as the Chamber and the Auburn Downtown Association, continue to work on economic development. · Impacts of Annexation Special Meeting of the City Council November 5, 1997 Page 5 The City utilizes formulas and models to analyze proposed annexations and assess the costs and benefits of an annexation. · Senior Center Facility The budget includes some funding for the senior center facility, and application has been made for Community Development Block Grant funding for design work when the senior center moves to the vacated library building. · Neighborhood Based Planning The budget includes a program improvement to assist in implementing the work program. VI. Complete comprehensive utilities plan for storm and sanitary sewer including cost of service study and rate restructure · Long-term Strategy for Capital Facilities The Sewer Comprehensive Plan is approximately 40% complete. The staff position responsible for completing the plan has been vacant for some time. The City has had difficulty in recruiting someone to fill the position. The Storm Comprehensive Plan is moving ahead and should be presented to the Public Works Committee in the near future. · Cost of Service Study The Public Works Committee has been briefed on the Sewer Cost of Service Study. The Water Cost of Service Study is being updated, and the Sewer Cost of Service Study will be completed soon. VII. Improve the management of capital projects · Centralize Capital Projects Management A new accountant was hired to centralize capital projects management. · Update Capital Facilities Plan A consultant will be hired to update the Capital Facilities Plan. · Update Capital Project Management Procedures Staff will begin working on updating the procedures for capital project management. VIII. Continue to seek a positive relationship with the Muckleshoot Tribe · Tribal Development Processed Timely · Improvements on Highway 164 Recently, the City received a $5,000 grant from the state for traffic control on Highway 164. Special Meeting of the City Council November 5, 1997 Page 6 · Notification of Projects of Mutual Interest · Adecluate Levels of Public Transit Metro bus service routes now include the Muckleshoot Casino. IX. Mitigate impacts of state and federal regulation by increasing revenue · Study and Evaluate Current and New Revenue Sources Staff will study alternative revenues in 1998 to increases the City's revenues and work toward protecting the City's current revenue SOUFCeS. · Present Findines to Council · Research Options Available as a Result of Welfare Reduction · Bonding Capacity The City has no outstanding general obligation debt. X. Create a property advisory board to help the City improve property management · Management of City-owned Property Staff held preliminary discussions on methods to coordinate property management. Councilmember Wagner inquired about an inventory of City property. Finance Director Supler reported the City has a fixed asset inventory; however, it does not include easements and rights-of-way. The inventory is reviewed annually. Assistant Finance Director Shelly Coleman presented information on the 1998 budget revenues. Approximately 82% of the city's revenues are unrestricted and include taxes (sales and use, property, and utility), investment income, and state shared revenue. Approximately 18% of the City's revenues are restricted or are earmarked to cover certain costs. The criminal justice sales tax must be used to supplement and enhance police services. Building permits and business registration fees are intended to cover the cost of code enforcement and inspections. Charges for services include park and recreation fees, plan check fees, engineering review fees and represent in-house cost of services. Fines represent court revenue and are intended to pay for the municipal court operation. Miscellaneous revenues represent interdepartmental rent. Operating transfers in consist of the motor vehicle excise tax which is to be used strictly for street operation and maintenance. Intergovernmental revenues consist of grants for specific projects, such as the criminal justice grant, COPS grants, late night program grants, as well as others. Intergovernmental revenue also includes the Muckleshoot Indian Tribe compact payment. Special Meeting of the City Council November 5, 1997 Page 7 With the passage of Referendum 47, the City's levy limit will be 106% or the rate of inflation, whichever is less. Finance Director Supler pointed out that the calculation for the inflation rate for property tax purposes is different from the calculation for the Consumer Price Index (CPI). The inflation rate for property tax purposes is at 1.9% while the CPI inflation rate is 3.7%. However, with the finding of substantial need, the City may increase the levy above the inflation rate and up to 106% with a majority plus one vote of the Council. The preliminary budget includes a 102% increase over the 1997 levy. Staff believe a substantial need exists since there are on-going collective bargaining agreements which bind the City to cost-of-living adjustments annually at 3.3% or 90% of the CPI. Salaries and benefits comprise approximately 69% of the General Fund operating budget. With the existing assessed valuation information provided by King County, the levy rate at the 102% level is $2.95 per thousand dollars. The levy rate last year was $3.01 per thousand dollars. The levy limit is $3.10 per thousand dollars. The city's total assessed valuation is approximately $3 billion. With the loss of the basic life support levy this past election, $400,000 in revenues will be lost. In order to make up the difference in the loss of the basic life support levy, either an adjustment will be needed in the ending fund balance or in the property tax levy. The property tax levy would need to be at 105% to provide the funding for the basic life support levy. Mayor Booth advised that if the property tax levy rate is not adjusted to support funding for basic life support, cuts would be made in various programs in the General Fund. It is anticipated that the King County Executive will request that cities provide interim funding for basic life support and the levy may be resubmitted as a February ballot issue. Financial Analyst Crawford reviewed the proposed 1998 expenditures. A comparison of overall expenditures over 1997 indicates an increase in capital expenditures from 28% to 37%. The water enterprise fund alone includes at $10 million increase in capital expenditures. The General Fund expenditures are comprised of the following: 69% for salaries and wages; 4% for intergovernmental, which include interfund transfers for equipment rental and printshop fees; 17% for services, which includes professional services, communications, Valley Com, and jail services; 3% for supplies, 4% for interfund, 1% for other and 2% for capital. Salaries and wages in the General Fund increased by 5% because of contractual cost of living adjustments and step increF~ses. Discretionary expenditures were limited to an increase of 3%. However, expenditures for contract items such as King County jail services and Valley Corn increased above the 3% level. Special Meeting of the City Council November 5, 1997 Page 8 General Fund capital expenditures include $25,000 for telephone upgrade, $38,000 for fire suppression, $20,000 for jail improvements, $60,000 for City Hall and atrium maintenance, $13,000 for carpeting areas of City Hall, $30,000 for furniture, $13,000 for parks equipment, $20,500 for street equipment, and $70,000 for underground storage tank removal and replacement, and $336,500 for computer hardware and software. The computer expenditures include $35,000 for police patrol laptops and video imaging software, $17,000 for communication server/routers that will help service at the senior center and other remote locations, $25,000 printers and scanners, $27,500 for improvements to the traffic signal system, $75,000 for the Permit Plan system upgrade, $15,000 for the Planning Departmenrs GIS system, $125,000 for a :server upgrade to the NT Network, and $17,000 for a CD ROM juke box. The Non-departmental General Fund expenditures include $760,000 for retirement payoffs. The retirement payoffs are based on the number of employees eligible for retirement during 1998. Over the next four to five years there are a number of employees who will reach eligibility for retirement and for payoff of their accrued vacation and sick leave benefits. Non-departmental includes $290,000 for LEOFF 1 retirement system benefits. The City is responsible for 100% of the medical costs for LEOFF I retirement system members, both active and retired. Non- department also includes $80,000 for the Capital Facilities Plan, $180,000 for LEQFF 1 long-term care insurance, $735,000 for interfund transfers to the arterial street fund and the fire department, $70,000 for the removal and replacement of underground storage tanks, and $235,000 for bond principal and interest. Changes in the preliminary budget since its publication include a $63,300 reduction in recreation class revenue; a $10,000 increase in facility rental revenue; 1997 expenditure carry overs in the amount of $65,000 for the fire impact fee study, $30,000 for fire station siding, $11,000 for jail plumbing, and $8,000 for a service counter in the Planning Departn'.ent; an expenditure increase of $20,000 for special election costs; and an expenditure increase of $35,000 for the storage tank located at City Hall. After the adjustment for net decrease in revenue of $53,300 and adjustments for the EMS levy failure ($355,700), recommended program improvements ($851,100), and less sales tax accrual ($700,000), the adjusted General Fund ending fund balance is $2,067,900. In response to questions from Councilmember Borden, Finance Director Supler explained that if the Council decides to increase the property tax levy above the 102% level, the increased revenue that is created can either be used to increase the ending fund balance, earmarked for transportation projects, or set aside for Special Meeting of the City Council November 5, 1997 Page 9 capital projects. The increase would create approximately $350,000 to $400,000 in additional revenue. Finance Director Supler also noted that if the Boeing Comparly is successful in their appeal of their property taxes, the City will lose approximately $250,000 in property tax revenue. Also, there is pending federal legislation regarding telecommunications, energy, and property takings which may adversely affect the City's revenue. Financial Analyst Crawford briefly reviewed the operating revenue and expenses for the proprietary funds. The proprietary funds include the enterprise funds (utilities, airport, cemetery, golf course) and equipment rental. The sewer fund and airport fund have experienced losses. A cost of service study for the sewer utility is underway, and will make recommendations to strengthen the sewer utility. Losses in the airport fund have decreased over the years, and improvements at the airport may increase the airport's revenue. The equipment rental fund now includes accrual for replacement of fire engines and aid cars. The ending working capital for the utilities is at least $1 million in each of the utility categories. Significant construction projects have occurred in the utilities, and yet the utilities have sustained at least $1 million in ending working capital. Finance Director Supler presented the 1998 program improvements. The first is $75,000 for a special areas/neighborhood plan. The Comprehensive Plan designates several special areas throughout the city. Planning projects for the special areas have never been funded. This program improvement relates to Council Goals I and IV. The program improvement for the design and construction of the skate park facility relates to Council Goal IV. This program improvement is in the amount of $125,000. Approximately $5,000 to $10,000 is expected in donations for the skate park. Parks and Recreation Director Deal reported that the cost of skate parks constructed in various cities in King County over the past few years range from $75,000 to $185,000. The low-end cost facilities are not meeting the need, and are being redesigned. Skate parks in the cost range of $125,000 to $150,000 are usable and appealing to the skaters. Program improvements which represent a one-time cost include: $50,000 for an archive system for all city records. This would replace the storage of hard copy documents through optical imaging or other medium. $50,000 to develop a sensitive areas ordinance. Sensitive areas include wetlands, steep slopes, river banks, and tree preservation. ,,$35,000 for a fire location study. A fire Iocat!on study is needed because of the growth that has occurred in the city. The last study was done approximately eight years ago. Special Meeting of the City Council November 5, 1997 Page 10 · $55,000 for a video imaging work station at the jail. This system will enable the jail staff to image photos and fingerprints and transmit the data to other agencies. · $50,000 for a HazMat response van. The Fire Department is looking to obtain a used van to replace the existing inadequate HazMat trailer. · $60,000 for a handicapped accessible van. The Parks and Recreation special population programs and the senior center would use the van. Program improvements which represent additional staff and on-going costs include: ,$43,200 for a Finance Department secretary. The addition of a secretary for the Finance Department will increase ~he efficiency of the supervisors in the department. , $38,000 for a paralegal in the Legal Department. A paralegal will increase the efficiency of the Legal Department by preparing files, conducting research, and preparing memoranda and correspondence which is now required by the attorneys. , $13,000 for jail medical services. This represents the increase over the 1997 cost and replaces the existing on-call nurse with the service of a clinic to provide the service in the jail. · $90,000 for training/safety. There is a need for 2.5 to 3 persons in the division to provide training and safety and assist with scheduling in the Fire Department. · $51,300 for a traffic signal technician to work in Traffic Engineering. This has been a proposed program improvement for four years. Public Works Director Currie advised that per safety regulations, two technicians are required when there is work on five lane facilities. · $92,300 for two Street Division Maintenance Worker I positions. The additional maintenance workers will be used for pothole patching and sealing as well as preventative measures. , $38,500 for a Parks Department maintenance worker. This position will assist with maintaining the number of stormwater detention facilities that require mowing and other maintenance during the summer months. , $88,000 to increase some seasonal positions to full-time. This includes one maintenance worker for the golf course, one maintenance worker for the cemetery, and two parks maintenance workers. Program improvements not recommended for funding this year include: +$10, 200 to increase the Personnel Assistant from part-time to full-time. Special Meeting of the City Council November 5, 1997 Page 11 +$27,800 to convert a part-time contract Assistant City Prosecutor to a full-time City employee position. +$43,300 to hire a correction officer to monitor the electronic home detention program. Chief Purdy explained that the position could prove to be a revenue enhancing or cost neutral position if there was a sufficient number of prisoners on home detention. Eligible prisoners, especially those requiring special medical needs, could be placed on home detention thereby reducing the jail expense. Finance Director Supler suggested reevaluating this program improvement the following year. +$30,000 for a Fire Department evaluation. +$48,600 for a Water Division meter reader. In response to a question from Councilmember Borden, Finance Director Supler estimated the existing Cumulative Reserve Fund is at $3 million. Councilmember Borden requested information on the fluctuations of the Fund for the past few years. Finance Director Supler noted that 37% of the proposed 1998 Budget is for capital projects. Grant Accountant Joe Guinasso distributed handouts containing a summary of the adjustments to the 1998 Preliminary Capital Budget to date and Capital Project Descriptions. Under the Arterial Street Fund, there are 17 projects scheduled at this time. The main source of funding is through state sources. State funding of $5.7 million includes $1.7 in grants, $1.5 million from other state sources, and $2.5 million is contribution from King County and Port of Seattle. The major projects include the 3rd Street SW grade separation, the transit hub, and South 277th Street. Major projects for the Water Division include the Comprehensive Water Plan and the Interlocal Agreement 2 (the Lea Hill Intertie). There are a total of 14 projects planned for the Water Division. $6.3 million will be received in joint participation funds for the IA 2 and IA 3 projects. The major expenditure from the Sewer Division will be the $3.3 million project for the 277th Street NE sanitary sewer. There are a total of 16 capital projects funded this year. The Sewer Division will receive $1 million for the sale of the Goedecke property and $2.5 million from Soos Creek/Kent and Metro for work related to the South 277th project. Special Meeting of the City Council November 5, 1997 Page 12 The Storm Division has 15 projects budgeted for 1998 in the amount of $3.9 million. A revision of the Comprehensive Drainage Plan will be completed for the south end of the city. The Airport's capital projects include work on taxiways, hangars, and other improvements in the amount of $668,100. The Airport is looking to obtain grants to provide 90% funding for the projects. This year's budget also includes a carryover of $100,000 for hangar roofs. Planning Director Krauss added that the airport will also replace its fuel tank in 1998 and convert the fueling system over to a self-fueling facility. The Cemetery budget includes $205,000 for development of Section 8 within the cemetery. The Golf Course budget includes $170,000 for improvements to the fairways on Holes 7 and 9 and for drainage improvements. Councilmember Wagner requested that staff present the information on the capital projects to the Public Works Committee as well. Finance Director Supler reported the budget ordinance will be presented to the City Council for approval of November 17, 1997. Councilmember Singer questioned whether the 1998 Budget includes funds for construction of sidewalks near Evergreen Heights. Public Works Director Currie reported construction of the sidewalks is included in one of the Water Division capital projects for 1998. Councilmember Borden requested information on the cumulative reserve fund and information on the effect of the proposed budget on the tax rate and the effect of adding the EMS funding in the budget on the tax rate. Discussion concluded and the meeting adjourned at 8:10 p.m. Approved on the L2~) ~ day of ~'22¢,p,/-t_L~ ,1998. Charles A. Booth, Mayor Danielle Daskam, City Clerk