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HomeMy WebLinkAbout11-17-2005 Special , 'I< 8~ * < iF AC!fjEn < r ~ ~t:~TRN * <<<,;cC =U / """,,4> WASHINGTON 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. Page 1 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. Page 2 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. Page 3 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 Page 4 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. Page 5 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. Page 6 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 Page 7 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. " p Page 8