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HomeMy WebLinkAbout09-13-2012 9-13-2012 - Special crrroF_ =. x Special City Council Meeting September 13, 2012 -2:00 PM Auburn City Hall Council Chambers WASHINGTON MINUTES I. CALL TO ORDER The meeting was called to order at.2:00 p.m. Councilmembers present included Rich Wagner, Nancy Backus, John Partridge, Largo Wales, Wayne Osborne and John Holman. Councilmember Bill Peloza was excused. Also present were Finance Director Shelley Coleman, Financial Planning Manager Martin Chaw, Chief of Police Robert Lee, Public Works Director Dennis Dowdy, Human Resources and Risk.Management Director Brenda Heineman, Parks, Arts and Recreation Director Daryl Faber, Innovation and Technology Director Lorrie Rerrmpher, Planning and Development Director Kevin Snyder, City Attorney Dan Heid and Deputy City Clerk Shawn Campbell. II. DISCUSSION ITEMS A. 2013-2014 Budget Review (Coleman) Director Coleman stated the special meeting is a continuation of the August 23, 2012 special meeting and the agenda includes reviewing the remainder of the proprietary and capital funds. The expected increases to the medical insurance rates will be lower then anticipated. Councilmember Wales asked when they would be able to review the new budget with the recommended changes. Director Coleman said if the Mayor approves the changes, they will be added to the budget document and the preliminary draft budget will be available for review at the end of October Councilmember Osborne requested the cemetery reduce their reliance on the general fund by 25% over the next two years. Director Coleman said the City will hold a public hearing on the property tax levy during the September 17, 2012 Council meeting. The Arterial Street Fund has several large projects in the 2013-2014 budget. Director Coleman said a portion of the motor vehicle fuel tax partially funds the program. The Transportation Improvement Plan anticipates funds from various funding sources. If the revanue is not there, the City will have to reevaluate the projects. Director Snyder said Auburn Junction Traffic Impact Fee's must be used within a restricted area; the remainder of the fees can be used throughout the City Director Dowdy said one percent of the utility tax is designated for arterial street preservation. Director Coleman shared a proposed policy change for the street fund. The proposal is to have the sales tax revenue from construction go to local street Page 1 of 3 repair The amount deposited into that fund would be capped at $2.5 million per year Currently $2 million per year is transferred from the property tax revenue fund. The property tax funds would remain in the general fund, making both funds more stable. Councilmembers discussed options for and against capping the amount deposited into the Arterial Street Fund. Director Dowdy said the City has approximately 16 miles of road in need of replacement. Councilmember Partridge suggested the discussion be tabled and discussed in conjunction with the General Fund budget. He is hesitant to discuss these changes until he knows the outcome of the General Fund discussion and the medical insurance increase. Councilmember Wales said the Council must continue to invest in the streets, sewer, water and storm drains. Director Dowdy said if the City does not get adequate funding staff will choose the roads with the most critical need. He said utility fees have increased to help fund street repairs along with utility repairs. Councilmember Wagner said the Council needs to look at the operations portion of the budget to continue this discussion. Councilmember Osborne said he does not want a cap on the amount.of construction tax revenue going to the roads. Councilmember Wales said the citizens like having tangible, visible places where the tax dollars are being spent. Deputy Mayor Backus said there is a difference between making policy changes and a budget amendment. She said the Council could make amendments to the budget if the expected outcome does not materialize. Director Coleman said the Facility Fund pays for all city facilities. The City Hall remodel project is going to require an additional $100,000 for workstations to finish phase one. Phase two is the first floor remodel for Mayor and Council offices. The approximate cost will be $500,000 including the HVAC upgrades. The existing furniture is no longer supported by the manufacturer, and the City cannot acquire parts. Councilmember Wales asked where the additional funds are budgeted. Director Coleman said the monies would come from a fund balance in the capital facilities fund from the parking garage. Councilmember Wales asked if the Mayor has the authority to allocate the fund balance from the parking garage. Director Coleman stated the approval of the budget would give the Mayor the authority to approve those funds. Director Rempher explained the role of the Innovation and Technology Department and the reasoning behind the name change. The program improvements include the LiDAR Field Asset Collection program, the Automatic Vehicle Location (ALV) for City fleet vehicles and computers for new full time employees. Director Dowdy explained the UDAR system and the benefit the City will receive from the system. Councilmember Wales said the information gathered from the LiDAR program will allow Council to make decisions based on fact and not emotion. The Automatic Vehicle Location system for the city fleet will assist the City in dispatching vehicles during weather events, to know the amount of sand dispensed, when a road has been plowed and where the nearest vehicle is for dispatching purposes. The police fleet will also have the system fall of 2013. Director Coleman said the Finance Department budget includes Capital Improvements, Solid Waste, Airport, and Insurance. Councilmember Wagner asked to add a utilities rate study to the list of objectives. The Capital Improvement fund has three large projects in the budget. City Hall Page 2 of 3 Remodel Phase Two, Traffic Signal Improvements and Citywide Sidewalk Improvements. Councilmember Wagner asked why_only $20,000 was budgeted during 2013 for sidewalk improvements. Director Dowdy said the program is on a two year cycle the first year being design and development and the second year to complete the project. The City gets better pricing if they go out to bid with larger projects. Councilmember Wagner requested the additional funds be added to 2013 budget. Councilmember Wales asked where in the budget the median maintenance and improvement is located. Director Dowdy said that item does not currently have a line item in the budget. Director Coleman explained how Real Estate Excise Tax (REET) one and two work for debt service payments. REET funds can only be used for capital projects or maintenance and operation of capital facilities._Councilmember Wagner stated the City is spending almost all of the REET funds on the annex debt. The Solid Waste fund has a contract with Waste Management for solid waste services. The fund also pays for hazardous waste drop off and educational programs. King County is increasing the tipping fees. The cost will be a direct pass through to the customers. The City will finalize the rate study for both Pierce and King County citizens. Director Coleman stated the Airport's major projects for the 2013-2014 budget cycle include update of Airport Security, Master Plan update and miscellaneous repairs and maintenance. The City will also do a wildlife assessment but no funds have been allocated for the survey or for the mitigation required from the assessment. The City will also need to remove trees from the wetland area around the Airport that have exceeded the maximum height standards. The operating contract for the Airport expires in 2013. III. ADJOURNMENT There being no further business, the meeting adjourned at 3:55 p.m. APPROVED this 1 st day of Ocotber, 2012 Peter B. Lewis, Mayor Shawn Campbell, Deputy City Clerk Page 3 of 3