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HomeMy WebLinkAbout05-26-1998sp SPECIAL CITY COUNCIL MEETING REGARDING PROPOSED REGIONAL FINANCE AND GOVERNANCE PLAN MAY 26, 1998 6:00 PM Minutes The special meeting of the Auburn City Council convened at 6:00 p.m. in the Council Work Area located in the Mayor's Office at Auburn City Hall. Mayor Booth and the following Councilmembers were present: Jeanne Barber, Rich Wagner, Sue Singer, Gene Cerino, Trish Borden, and Pete Lewis. Councilmember Fred Poe was excused. Staff members present included Planning Director Paul Krauss, Senior Planner Bob Sokol, Intergovernmental Affairs Manager Lisa Clausen, Finance Director Diane L. Supler, Fire Chief Bob Johnson, Parks Director Dick Deal, and City Clerk Danielle Daskam. I. INTRODUCTION Mayor Booth explained the purpose of the meeting is to make an informal presentation regarding issues and concerns related to the proposed Regional Finance and Governance Plan. Mayor Booth stated that copies of all information received in connection with the proposed Plan has been provided to the Council. The goal is to develop a statement of concerns from the City. Mayor Booth noted that Executive Director of Suburban Cities Association Lynda Ring Erickson was delayed and introduced Finance Director Diane L. Supler for presentation. II. PROPOSED REGIONAL FINANCE AND GOVERNANCE PLAN Ms. Supler stated that the City has been going through a lengthy process of evaluating the proposed Plan. The goal has been to put something together that looks to the vision of the future and what we would like our region to look like. Ms. Supler explained that one important issue was to develop principles to set guidelines for assertions and assumptions that participating cities will be making. She distributed a copy of the principles, which have been accepted and ratified by Suburban Cities Association (SCA). Ms. Supler briefly summarized the principles in regard to allocation of services between local and regional Special City Council Meeting May 26, 1998 Page 2 government. Ms. Supler noted that the most controversial issue was related to the elimination of urban subsidy of local unincorporated area services. This matter was tabled for over a year while details and mechanics of the Plan were worked on. Ms. Supler stated that the issue of urban subsidy contains a high monetary dollar amount, approximately fifteen percent of the local sales tax, and is now back on the table. Tracking the amount and flow of revenue to the County and how that revenue is being spent is very complex. In response to questions from Councilmembers Singer and Wagner, Ms. Supler stated that it was speculated that some of the money from the urban subsidy was going into urban unincorporated areas. The total amount of revenue contributed by each city and what and where it is being allocated is unknown at this time. Councilmember Lewis questioned whether a certain percentage is dedicated urban subsidy. Ms. Supler responded that it is not and the County maintains the position that tax dollars of people in rural or unincorporated areas are being spent in cities. The County further maintains that a portion the cost of delivery of services should be returned to the urban subsidy as they deliver the services. Mayor Booth stated that the urban subsidy was derived from a legislative action in which some legislators felt the Counties needed more money and that Cities could afford it. Intergovernmental Affairs Manager Lisa Clausen stated that approximately thirty million is being spent in unincorporated areas that the cities believe should be spent on countywide regional services. Ms. Supler covered several issues related to the unincorporated areas including future financial viability of those areas incorporating, participation of unincorporated area residents in the governance of their areas, and urban levels of service being provided by King County. Ms. Supler stated that under the principles of SCA that service responsibility must be tied to specific revenue sources, the entity providing a service should have clear accountability and authority, and new taxing authority should only be sought as a last resort. This isn't to create new revenue sources but to redistribute and find efficiency in the delivery of services. Continued Special City Council Meeting May 26, 1998 Page 3 intergovernmental contracting of services and cooperative and united support is encouraged and the long term financial and structural solutions should create economic, financial and political value for all affected parties. These are the basic guiding principles proposed by the SCA. Intergovernmental Affairs Manager Lisa Clausen recapped countywide planning policy amendments relating to potential annexation areas and dialogues between the County, cities, and special districts. The amendments would be ratified upon an agreed upon process of thirty percent of the jurisdictions, including King County, representing seventy percent of the population. Ms. Clausen stated that all other envisioned changes dealing with changes in service delivery and financing would be part of a "5038" agreement. The "5038" agreement is based on Substitute Senate Bill 5038 which passed in 1994. It allows for counties and cities to negotiate financing and delivery of services. Agreements made under the "5038" law require approval by a majority of the cities, representing seventy-five percent of the population. The County and Seattle have been advised that the agreement is not ratifiable. The SCA has put together a new process to draft an alternative plan to bring back to the table which is why the different cities are re-evaluating the components of the proposed plan to determine what each city would like to see revised. Ms. Clausen distributed a packet listing each component of the Plan and asked for review and comments from the Council. Ms. Supler explained that she and Ms. Clausen attended a workshop in Bellevue with various other cities and that the packet was compiled from the information gathered there. Councilmember Lewis asked for the population of King County and Seattle. Ms. Clausen responded that suburban cities make up forty-two percent of the population and Seattle is approximately forty percent. King County Council approves these things as representative of not only unincorporated residents but also as the countywide government. Ms. Clausen and Ms. Supler recapped the staff review regarding revenues and costs, key points, possible shared maintenance costs, and apparent pros and cons in connection with the issues of animal control, pools, specialized police services, human services, courts of limited jurisdiction, rural services and urban transition, proposed annexation areas proposed amendments to countywide planning policies, Woodland Park Zoo, and other agreements. Special City Council Meeting May 26, 1998 Page 4 Suburban Cities Association Executive Director Lynda Ring Erickson shared information and ideas relating to the operation of public pools regarding liability, costs, and closure. Ms. Supler, Ms. Clausen, and Ms. Ring Erickson covered the components of Human Services in detail relating to financing, per capita charge, needs of service and services provided, necessary contracts and evaluations, and administrative costs and savings. Ms. Clausen stated there would be a differentiation by the County of their regional and local service budgets each year. Mayor Booth stated that the bottom line regarding this plan is that services are provided to those who need them. In response to a question by Councilmember Borden, Ms. Ring Erickson stated that there are several mechanisms that allow jurisdictions to request immediate review, prior to the five year review, if needs are not being met. Ms. Clausen requested comments and concerns of the Council be submitted to her by June 1, 1998. Ms. Ring Erickson extended an invitation to the Steering Committee, a sub- committeeS the Suburban Cities Board, on Monday, June 1, 1998 and each Friday during the month of June, 1998 III. ADJOURNMENT There being no further business to come before the Council this evening, the meeting adjourned at 7:38 PM. Approved on the ~ ~'~ day of ~ ,1998. 98m5-26.DOC