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CITY COUNCIL
SPECIAL MEETING
November 17, 2005 3:30 PM
Auburn Justice Center
Courtroom 2
.
SPECIAL MEETING MINUTES
I. CALL TO ORDER
Mayor Peter B. Lewis called the special meeting of the City Council to
order at 3:35 p<m. in Courtroom 2 at the Auburn Justice Center located at
340 East Main Street in Auburn. The purpose of the special meeting is to
conduct the 2006 Budget Workshop. The following Councilmembers
were present during the meeting: Rich Wagner, Sue Singer, Gene
Cerino, Nancy Backus, Bill Peloza, Roger Thordarson, and Lynn Norman.
Staff members present included: Information Services Director Lorrie
Rempher, Planning, Building and Community Director Paul Krauss,
Deputy Police Chief Bob Lee, Deputy Fire Chief Mike Gerber, Human
Resources and Risk Management Director Brenda Heineman, Parks, Art
and Recreation Director Daryl Faber, Public Works Director Dennis
Dowdy, and Deputy City Clerk Cathy Richardson.
II. 2006 BUDGET PRESENTATION
Director Coleman reviewed the preliminary budget and public hearing
process related to the 2006 preliminary budget. The final budget will be
presented to Council on December 1, 2005.
Director Coleman displayed a Power Point presentation and reviewed
revenue and expenditure balances for all funds. A summary of
preliminary General Fund revenues includes funds from tax revenue,
grants, interest, Labor and Industry returns, and fees collected for
intergovernmental contracts, services, licenses, permits, and court fees
and forfeitures. The total General Fund revenue is $45,774,600. A
summary of expenditures includes salaries and benefits, supplies,
interfund and intergovernmental transfers, professional services, repairs
and maintenance, capital outlay, debt service, and interfund services for
Equipment Rental, Multimedia, and Information Services. Total
expenditures are $50,724,700.
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Citv of Auburn Council MeetinQ Minutes
November 17. 2005
A summary of proposed 2006 Program Improvements includes the
addition of two full time employees, an increase in seasonal labor for
Parks, operating support for Olson Farm, the outdoor summer cinema,
parks, trails and art map/brochure, public art collection survey and
maintenance, and various vehicles and machinery. The 2006 preliminary
Capital Projects total $24,311,600 and corresponds to the first year of the
Six Year Capital Facilities Plan.
Director Coleman reported that changes from the 2006 Preliminary
Budget to the 2006 Final Budget include the following:
o An increase in the 2006 property tax levy of approximately
$404,000 due to the levy lid lift approved by voters in November
2004, which will be transferred to Street Fund 103
o Addition of 2.25 full time employees
o Information Services Administrative Assistant
o Communications Assistant (currently budgeted and
outsourced)
o Increasing the Museum Curator position from half to three
quarters time (oversee program which involves conducting
oral interviews to assist in writing history of Auburn)
o Golf Course Clubhouse
o Council wage increase
o Wayfinding sign age
Director Coleman reviewed various 2006 fund transfers. The 2006 Final
Budget summary is as follows:
o Revenues - General Fund - $46 578,300
o Expenditures - General Fund - $51,742,500
o Revenue - All Funds - $111,949,200
o Expenditures - All Funds - $123,591,800
Councilmember Peloza Bill suggested that Mayor Lewis include a section
in his budget transmittal letter regarding funds received through OPM
(Other Peoples Money) to show citizens of Auburn how the City is working
to access all possible avenues of funding.
Councilmember Singer inquired regarding City expenses for natural gas
and whether increases in tax revenue would offset costs for that utility.
Mayor Lewis stated that tax revenues are erratic and very dependant on
the weather forecast and increases are never considered as a funding
source for that reason. Use of any increased revenue would be
determined with a mid-year or third quarter budget adjustment.
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City of Auburn Council MeetinQ Minutes
November 17.2005
Councilmember Peloza expressed concerns regarding the language on
page 35 regarding the listing of Puget Sound Chinook salmon and the bull
trout as "threatened" on the Endangered Species Act (ESA). Mayor Lewis
explained that the City has to make note of the fact that Auburn is situated
between two basin areas and could be substantially impacted financially
by the listing of these rivers under the ESA.
Councilmember Peloza referred to page 61 and inquired regarding a one
time audit settlement from the Boeing Company. Mayor Lewis explained
that the City received a one time increase in income from an audit with the
Boeing Company that was related to sales tax on energy.
Director Coleman reported that the settlement was received over a five
year period until 2000 or 2001. Collection of taxes is audited by the State
Department of Revenue. The manufacturing tax exemption is for
replacement equipment purchased within the manufacturing facility. Only
the end product user is taxed.
In response to questions from Councilmember Peloza regarding revenues
received from the Muckleshoot Indian Tribe (MIT), Mayor Lewis reviewed
the terms of the 2% compact in lieu of taxes with the MIT. Once a year
the City, Washington State Patrol, MIT and other law enforcement
agencies meet to determine impacts on the City related to the MIT casino
and establish a formula to divide the 2% funds collected according to the
compact.
Council member Peloza referred to City Council and Mayor 2006 Goals
and suggested that the wording on page 103 under the first bulleted item
relating to continuing the Golf Course Club House planning process is not
strong enough.
Councilmember Wagner suggested adding the words "and issue bonds".
Councilmember Wagner also suggested the following regarding the 2006
Goals:
o Page 103 under bulleted item number ten, strike the word
"continue" and add the word "complete" fire station relocation
planning process.
o Page 102 delete second bulleted item under 2006 Goals "Continue
Les Gove Community Campus planning process". This item is also
stated under the last bulleted item on page 103.
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Citv of Auburn Council MeetinQ Minutes
November 17. 2005
Councilmember Peloza noted that the last bulleted item on page 126
under 2005 Accomplishments should be corrected to read the "Green
River/Duwamish" watershed. Councilmember Peloza also suggested
adding "and 2006 King County Interlocal Agreement extension".
Councilmember Singer noted that the word "find" should be replaced with
the word "fund" in bulleted item number ten on page 126 under 2006
Goals. Also, the wording in bulleted item number eleven needs to be
refined.
In response to concerns from Councilmember Peloza, Director Faber
suggested adding "Les Gove" to bulleted item number six on page 134
under Parks and Recreation Department 2005 Accomplishments.
Councilmember Wagner noted that on page five, fifth paragraph, first line
the word "Complex" should be "Campus".
Director Coleman reviewed the six year forecast related to revenue,
expenses, and fund balance.
Council members briefly discussed impacts from results of implementation
of Streamlined Sales Tax (SST), industrial and warehousing distribution
companies, and SST exemptions.
Mayor Lewis recessed the meeting at 4:58 p.m. for a break of
approximately five minutes.
Mayor Lewis reconvened the meeting at 5:01 p.m.
III. BIENNIAL BUDGET
Director Coleman explained that biennial budgets are prepared on odd
numbered years, which saves time and costs of preparing the budget
document each year. Director Coleman reviewed the following pros and
cons of a biennial budget:
Pros
o Savings in preparation time
o More time for long-range and strategic planning
o Savings in printing costs for preliminary and final budgets
o Longer perspective
Cons
o Can be difficult to predict revenues and expenses over two year
periods
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Citv of Auburn Council MeetinQ Minutes
November 17.2005
o Potential for loss of control over budgeted expenditures
In an effort to streamline the budget process and budget document,
Director Coleman recommended preparing a biennial budget covering
years 2007 and 2008. The budget amendment process would be similar
to current practices and would be made at year end.
Discussion followed regarding various methods that might be
implemented to save printing costs and creation of a separate document
pertaining to budgetary history.
Councilmembers spoke in favor of implementing a biennial budget.
IV. DISCUSSION
A. Capital Facilities Plan
Councilmember Wagner suggested the following corrections and
additions to the Capital Facilities Plan:
o Page 5 - Include an explanation or comparison on the Level
of Service (LOS) reductions and a data reference on what
can be done to improve them including a time schedule, or
explain why it might be appropriate for a reduced LOS.
o Page 19 - Airport grant list is conservative. Include a history
relating to the average of grants received in the past and
add them to the funding sources. Include a footnote on how
average of grants was determined. Our private airport
management needs to be aggressive on applying for grants.
Prior to averaging the grants, Director Coleman suggested
removing the runway project as It has been delayed.
o Page 35 - The cost of constructing a 35,000 Community
Center seems too low at $94 per square foot. A more
realistic cost would be approximately $200 per square foot.
Include the cost difference as a bond issue.
Director Faber indicated that the actual construction cost will most
likely be between $180 and $200 per square foot. The square
footage of 35,000 was used as the size of a new Community
Center was unknown. The facility size will probably be closer to
28,000 square feet with a cost of approximately $5,000,000.
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City of Auburn Council MeetinQ Minutes
November 17. 2005
o Page 38, Items four through eleven - Need to show
community improvements for years 2007-2011 on items four
and seven.
Financial Planning Manager Dawna Truman reported that only
ongoing projects are budgeted for future years.
Discussion followed regarding possible funding sources including
Real Estate Excise Tax (REET), General Fund, and grants.
Mayor Lewis suggested making a commitment for every other year
for item four, Neighborhood Revitalization, in the amount of
$100,000 beginning in 2008 and commit $50,000 for item seven,
Traffic Calming Improvements, each year through 2011.
In response to questions from Councilmember Thordarson related
to item six, Traffic Signal Improvements, Director Dowdy indicated
that approximately $50,000 is budgeted from the General Fund
each year.
Ms. Truman reported that $100,000 was moved to Fund 328 for
2006 traffic improvements.
Councilmember Wagner concurred with Councilmember
Thordarson that item six should be budgeted through year 2011.
Discussion followed regarding the following:
o Page 101, item six - Auburn Environmental Park and Page
113 - Storm Facility Retrofit Program related to justification
for investments made from the storm utility for aesthetics
o Page 42 - Neighborhood Revitalization
o Page 65 - Library
o Page 69 - Veteran's Park Improvements and possible
partnerships
o Page 71 - Fenster Farm Site Plan
Councilmember Singer expressed concerns regarding the increase
in LOS ratings of "F" indicated in the table on Classified Street
Segments - Arterials on Pages 121 through 124. Councilmember
Singer requested Council discuss what can be done to improve the
LOS ratings.
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Citv of Auburn Council MeetinQ Minutes
November 17. 2005
Mayor Lewis reported that there are some arterials in Auburn that
will never be better than an F rating as they are at capacity. Mayor
Lewis suggested adding improvement of LOS ratings as a
discussion item to the Committee of the Whole meeting in January
2006.
In response to Councilmember Singer's concerns, Director Dowdy
stated that improvements to State Route 167 would decrease the
load on major arterials within the City.
Councilmember Wagner suggested adding what it would take to
improve LOS ratings of "E" and "F" to "D" ratings as a discussion
item on the January 2006 Committee of the Whole meeting.
Councilmember Singer pointed out the value such information
provides in obtaining leverage with regional committees.
In response to questions from Councilmember Norman regarding
potential partnerships for ball fields and soccer fields, Director
Faber reported that Land/Water Conservation funds are currently
being diverted to the Gulf region. Other local grant options and
partnering with local leagues are more promising.
In response to the request from Director Coleman for direction from
Council with regards to the fund balance for the General Fund in
the event it is above $15,000,000 at the end of the year,
Councilmember Wagner suggested that 20% be transferred to the
Cumulative Reserve and 80% be transferred to the Capital Projects
Fund.
Director Coleman reported that the next Council retreat is
tentatively scheduled for March 2006, at which time staff will
present a new citizen survey. Council requested the following
subjects for discussion at the retreat:
o Pierce County annexations - Pro and Con
o Update Vision map - More focus on infrastructure
o Police and Fire Department personnel additions
o Provide aerial photos of the City
o Residential street lighting - Citizen/Neighborhood
Improvements - LID
o Neighborhood shuttles
o Multi service center
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Citv of Auburn Council MeetinQ Minutes
November 17.2005
o Improving Classified Street Segments - Arterials LOS ratings
of "E" and "F" to "D" ratings
V. ADJOURNMENT
There being no further discussion, the meeting adjourned at 6:12 p.m.
ROVED THE ~~ DAY OF JANUARY 2006.
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