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12/11/1993 City CouncilTHESE MINUTES WERE APPROVED BY THE CITY COUNCIL ON JANUARY 4, 1994 EDMONDS CITY COUNCIL APPROVED MINUTES December 11, 1993 The special budget workshop of the Edmonds City Council was called to order at 8:30 a.m. by Mayor Laura Hall at the Community Services Building Conference Room, 250 Fifth Avenue North, Edmonds. PRESENT Laura Hall, Mayor Dave Earling, Council President Steve Dwyer (arrived at 8:52) Michael Hall, Councilmember William J. Kasper, Councilmember John Nordquist, Councilmember Jeff Palmer, Councilmember Tom Petruzzi, Councilmember ABSENT Chris Hewett, Student Representative STAFF Art Housler, Admin. Svc. Dir. Chuck Day, Accounting Manager Dan Prinz, Police Chief Paul Mar, Comm. Svcs. Dir. Bob Alberts, City Engineer Noel Miller, Supt.,Public Works Arvilla Ohlde, Parks & Rec. Mgr. Doug Farmen, Accountant Minh Truong, Accountant Tom King, Fac. Main. Supv. Greg Ramsland, Equip. Rental Sup. Gary McComas, Fire Marshal Rob Chave, Planning Supv. Brent Hunter, Personnel Mgr. -"Dee McGrath, Executive Secretary Rhonda March, City Clerk MaryAnne Paige, Recorder Fire Marshall Gary McComas gave a brief overview of the car fire accident on Olympic View Drive on Friday. Council President Earling requested this meeting be Council coordinated and Mayor Hall concurred. kEPORT ON GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED NOVEMBER 30, 1993. Administrative Services Director Housler reported on the year to date revenue as of November 30, 1993. The November target was $1.6 million and we collected $1.9 million. This was because we received more property taxes in November, but as a result will receive less in December. We are 6.9 percent over target. On the expenditure side, we are still under -spending. The November target was $1,010,000 and we actually spent $923,000 for an under -expenditure of 8.6 percent. Year to date we are under by 4.1 percent. These amounts are generally under -spent accross the board. 1993 YEAR-END FINANCIAL PROJECTIONS FOR THE GENERAL FUND. Administrative Services Director Housler.reported on'the year end' financial projections. The 1993 beginning cash balance was $16,200. We will be over on the revenues by $261,820 and expenditures underspent by $261,480. If the Mayor's budget recommendation and those amounts proposed for today's consideration are approved, we will have an unappropriated 1993 ending cash balance of $74,280. Councilmember Petruzzi stated he has a concern with unappropriated funds from one year to another. Mr. Housler also presented graphs showing property tax revenues and sales tax revenues in 1993. He noted that both the property tax and sales tax are over those amounts estimated for 1993. BUDGET WORKSHOP ON PROPOSED 1994 BUDGET �k Councilmember Palmer clarified we are working under the assumption that we are working with the existing 1993 budget as approved thus far, the anticipated ending cash balance for 1993 is $539,500, and without any A1(f� adjustments being made for 1993 or 1994. Other councilmembers UUvv agreed. The following items were discussed: WHETHER OR NOT THE FOLLOWING ITEMS ARE BUDGETED: SNOHOMISH COUNTY HEALTH DISTRICT, SNOCOM, SNO-ISLE, SNOHOMISH COUNTY TOMORROW, AWC AND NEWSLETTER. Councilmember Palmer stated this list is ok with him as budgeted. There was discussion on the newsletter, which was the only item not funded. Councilmember Hall stated it would cost approximately $15,000 for three newsletters per year, in conjunction with the recycling flyers. The newsletter would be a summary of events and projects for citizen's information. Councilmember Palmer stated that three issues per year at 15,000 would average 50 cents per resident. Most of the Councilmembers were in favor of a newsletter. WHETHER OR NOT MEALS AT THE CLERK'S ACADEMY HELD AT THE U. OF W. MEET THE NEW GUIDELINES'. Personnel Manager Brent Hunter stated under our current policy meals are allowed for business conferences that last all day. WHETHER OR NOT "TRAVEL" FOR CHAPLAINS IS LEGAL. Personnel Manager Brent Hunter stated that under the Fair Labor Standards act the City can pay volunteers for training. WHAT AMOUNT OF THE PROSECUTOR'S PROPOSED INCREASE IS NOT BUDGETED. After considerable discussion on this item it was decided to leave this budget at the original $50,000; which will give a monthly salary for the prosecuting attorney of $3,900. The $3,900 monthly salary was confirmed for the record at the Administrator Services Director's request. ADJUSTMENTS TO THE 1994 BUDGET AS A RESULT OF MONEY NOT BEING SPENT IN 1993 (GMA) OR REQUIRED CORRECTIONS. There was discussion of items a through h totaling $59,920. Councilmember Palmer asked if any of these items are required in 1993 and was informed they are all for 1994. There was further discussion on when the new Police Chief would come on board, if LEOFF for the retiring Chief is included, and GMA/EIS funds. APPROVED MINUTES PAGE 2 DECEMBER 11,1993 The bottom line on considering these items is that they will increase our 1994 budget by $59,920. THE SAME CONTINGENCY PLAN FOR 1993 SHOULD BE IN PLACE FOR 1994. Councilmember Petruzzi stated that he felt the 1993 Contingency Fund served Council and the City well and would like to continue this in order to track expenses and to be able to make quick decisions. It was the consensus of the Council and Mayor to continue the contingency fund. LARGE AMOUNT BUDGETED FOR VEHICLES SUCH AS THE STREET SWEEPER. Councilmember Petruzzi stated his concern with funds being budgeted for equipment rental when we have no reserve for future fire equipment. There was discussion on keeping the fire equipment separate from the equipment rental funds, and it was the consensus that these should continue to remain in separate funds. Councilmember Nordquist questioned why numerous items were requested under Equipment Rental that will be for the new Public Works Facility and was informed that these items are included under equipment rental because they are portable, not fixed assets. There was further discussion on the street sweeper, fire and aid car replacements, and methods of funding. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER DWYER, TO ALLOW $130,000 FOR THE MOBILE SWEEPER AND MOVE THE $38,000 SAVINGS INTO THE ENDING CASH BALANCE FUND, AND TO APPROVE EXPENDITURES 0 $60,000 FOR THE DUMP TRUCK AND MOVE THE $15,000 SAVED TO ENDING CASH BALANCE. Discussion. Councilmember Kasper stated that he feels we need to look at all the equipment rental items besides the price of a new sweeper. Councilmember Nordquist said that he was against the motion because the requested equipment needs to be replaced, and as the individual items come up for bid they will be reviewed by Council. COUNCILMEMBER DWYER AMENDED THE MOTION TO REMOVE THE DUMP TRUCK PORTION. THE MAKER OF THE MOTION, COUNCILMEMBER PETRUZZI AGREED. THE MOTION FAILED WITH COUNCILMEMBERS PETRUZZI AND DWYER VOTING AFFIRMATIVE AND COUNCILMEMBERS NORDQUIST, EARLING, HALL, PALMER AND KASPER VOTING NEGATIVE. COUNCILMEMBER PALMER'MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO ACCEPT THE EQUIPMENT RENTAL BUDGET AS PRESENTED. THE MOTION CARRIED WITH COUNCILMEMBERS KASPER AND PETRUZZI VOTING NEGATIVE. Councilmember Petruzzi stated that he voted against this motion because of the cost of the sweeper at $168,000 when they had been told they could purchase a sweeper for $130,000. BREAK Council President Earling called for a break at 10 a.m. RECONVENE APPROVED MINUTES PAGE 3 DECEMBER 11,1993 Council President Earling called the meeting back to order at 10:10 a.m. LACK OF RESERVE FOR THE FIRE ENGINE REPLACEMENT. Councilmember. Petruzzi stated he would like to see a special fund set up for purchase of fire engine replacement, and would like to allow between $50,000 and $80,000 in that fund for 1994. Chuck Day stated that if the EMS tax was increased by 5 cents to a total of 45 cents, it would generate $174,500 for aid car replacement. Mr. Noack requested to speak, as a citizen, regarding fire engines and aid cars. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCILMEMBER KASPER, TO ALLOW THE MEMBER OF THE AUDIENCE TO SPEAK. MOTION CARRIED. Mr. Noack stated that as a citizen he would rather see his property taxes go up with an incremental increase to fund the fire truck and aid cars rather than a bond issue. He would recommend that we look at increasing the property tax and decreasing the utility tax. A one or two percent increase in property tax, based on the assessed value of homes, is more equitable. Increasing the EMS levy could cover the aid car. BOTH THE STREET MAINTENANCE, #111, AND CONSTRUCTION, #112 FUNDS NEED MORE MONEY. Councilmember Kasper stated his concern that we had decreased funds in these accounts in past years, but these accounts need to remain funded. He would like to return to $129,000 to these funds and allocate the money between these two accounts at a ratio to be determined later. City Engineer Alberts stated that they will be bringing a draft ordinance before Council after the first of the year for street and storm maintenance. THE BUILDING MAINTENANCE FUND, #116, NEEDS MORE MONEY TO KEEP UP THE MAINTENANCE. Councilmember Kasper stated his concern for keeping our buildings maintained and that we do not always have funds for adequate repair. Council President Earling stated that he also feels we need to budget more money for building maintenance, and Council agreed. EFFECTIVENESS OF WHAT IS BEING ACCOMPLISHED WITH CURRENT SUPPORT LEVEL OF GROUNDS MAINTENANCE. Councilmember Kasper asked how long are we going to do maintenance out of the general fund rather.than the 125 fund. Art Housier replied that the City attorney has provided his opinion on whether 125 money can be used for maintenance, in regards to parks and the Meadowdale area, and the attorney said that it cannot be allowed under the present law. STATUS OF THE EXHAUST SYSTEM FOR THE PUBLIC SAFETY BUILDING. Councilmember Dwyer said that this has been discussed previously and would like to see it budgeted in 1994. The funding will come under 325 general capital improvements. There was a consensus of Council to fund this exhaust system. SHIFTING FUNDING AND EMPLOYEE POSITIONS FROM THE CRIMINAL JUSTICE, #007 FUND TO THE GENERAL FUND, #001. ALSO SHIFT ITEMS SUCH AS PRISONER CARE FROM THE GENERAL FUND TO THE CRIMINAL JUSTICE FUND. Councilmember Kasper stated his concern that some employees are funded APPROVED MINUTES PAGE 4 DECEMBER 11,1993 under line items. There was concern that if.these are funded under specific items that when the funds fail the employees are terminated. It was decided to discuss this issue at another work session. COUNCIL MUST APPROVE TRANSFER FROM LID GUARANTY FUND W213 TO THE GENERAL FUND.1001 FOR INFORMATION SYSTEM UPGRADE. It was Council consensus to fund the information system upgrade. PURSUE TELEVISING THE CITY COUNCIL MEETINGS. Councilmember Hall stated that he feels the City should televise Council meetings to provide better information to citizens. It will also benefit the hearing or visual impaired, will save on back-up tape expenses, and at large meetings those people sitting in the back of the room will be able --to see and hear proceedings. He also stated that Edmonds Community College is willing to perform this function for us. He stated the costs would be approximately $12,000 per year. It was decided that after the first of the year we would like to see a proposal from Edmonds Community College showing the mechanisms of such a program, the cost, and all aspects of the system. We could have them come to a meeting and video it as a sample for Council to see how it might work. TRANSFERS TOTALING-$357,300 AS OUTLINED IN THE MAYOR'S BUDGET MESSAGE. Councilmember Petruzzi stated that he doesn't feel comfortable in adjusting the 1993 budget to accommodate 1994 expenditures. He doesn't disagree with the Mayor's recommended transfers, but thinks any money left over in 1993 should go into ending cash balance and then be voted on to allocate those funds for the 1994 budget. Councilmember Palmer agrees with. Councilmember Petruzzi's statement and feels that asking in a 1994 budget message to make changes in 1993 obfuscates what is going on in the budget and improperly deflates the amount of change between 1993 and 1994. COUNCILMEMBER PETRUZZI MOVED, SECONDED BY COUNCIL PRESIDENT EARLINNG, THAT RATHER THAN TRANSFER $539,500 in 1993 AS REQUESTED IN THE MAYOR'S BUDGET MESSAGE, WE WILL ALLOW THAT MONEY TO GO INTO THE ENDING CASH BALANCE, AND FROM THAT WE WILL CONSIDER A REQUEST TO ALLOCATE THOSE FUNDS FOR THE 1994 BUDGET. Discussion. Councilmember Palmer stated since there is no Council action required,.he doesn't feel we need .to make a motion. If we take no action, it ends up in ending cash balance anyway. Councilmember Dwyer clarified that items a through h, as discussed earlier, would then be considered as .an increase to the 1994 budget. THE MOTION CARRIED UNANIMOUSLY. ADDITIONAL ITEMS.AS REQUESTED BY COUNCILMEMBERS Councilmember Dwyer requested an additional $300 for Lions Club flags and would like to see this under the Council line item on Pieces of Art. Councilmember Dwyer requested an additional $2,000 'in advertising for larger sized agenda announcements in the Everett.Herald. It was decided to increase.this item to $7,250. APPROVED MINUTES PAGE 5 DECEMBER 11,1993 Councilmember Dwyer wished to discuss the possibility of increasing the Police Chief's salary prior to his retirement. After discussion, it was decided to table this item for review at a later date. Councilmember Petruzzi asked to increase the Sister City Program by $500 for a total budget of $2,000. Councilmember Nordquist questioned the lease of the copy machine in the Police Department, and wondered if by leasing equipment we circumvent the bidding process. Council President Earling requested that Art Housler report on if lease agreements are a biddable item at our Tuesday meeting. Councilmember Kasper would like to consider sending the Mayor to the National League of Cities, and Council agreed to this request. Councilmember Palmer requested an increase on Street Beautification of $2,000 to be put into additional Christmas tree lights for the street trees, and to expand the lighting to other areas of the City besides the immediate downtown area, if possible. IMPOSING THE ADDITIONAL 1/4% REAL ESTATE TAX. Councilmember Kasper stated that he favors looking at 1/4% Real Estate Excise Tax as financially we're exposed as we have used up our two 106 reserve and we have to get some items out of the General Fund, example; Library, ADA and Building Maintenance. Councilmember Petruzzi stated that he feels that an increase in real estate tax is regressive, punitive, and attacks the homeowners. The consensus of Council was to drop this item. INCREASING THE EMS BUDGETED RATE FROM 40 CENTS TO 45 CENTS. Councilmember Kasper stated that he feels we should increase this to the 45 cents allowed, but not allocate the money. Councilmember Palmer stated that he feels the larger issue is if we can accumulate these funds and gain interest on them. COUNCILMEMBER KASPER MOVED THAT WE PASS THE LEVIED 45 CENTS, IF IT CHECKS OUT, IN ORDER TO BUILD A RESERVE. Motion died for lack of a second. 1994 PROPERTY TAX RATE, PERCENTAGE, AND AMOUNT. Councilmember Dwyer stated that he feels weshouldtake the 6 percent this year as we are not healthy enough to not do it. Councilmember Palmer stated the opposite view, in that we have projected ending cash balance of $539,000 and within that amount we can cover everything we have discussed thus far today, so there is no need to increase property tax. He is ready to come back with a motion on Tuesday that will take care of all items we want without increasing taxes, other than the adjustment to the EMS levy. Councilmember Petruzzi stated that he has not found much to remove from the 1994 budget, but if we go to a six percent increase that would equal an increase of $26.88 yearly on a $250,000 home, and by adding this, we could cover all items plus a fire equipment reserve. Councilmember Kasper stated that he was not in favor of a tax increase because we levied twice in the last several years, and he would rather take a look at lowering the utility taxes APPROVED MINUTES PAGE 6 DECEMBER 11,1993 prior to increasing property taxes. Councilmember Petruzzi wished to clarify that when we say 6 or 3 percent tax increase, it is not an accurate assessment of what the taxes are. It is 6 percent of the City's share of tax revenue, and would represent an annual increase of $10.75 at an assessed value of $100,000. Council President Earling reminded Council that this is an issue we have to resolve by Tuesday and asked if Council would like to vote today or wait until then. Three Councilmembers were in favor of increasing the property tax to the full allowable 106 percent and four wanted to wait to discuss this further on Tuesday. ADDITIONAL ITEMS TO THE AGENDA. City Engineer Bob Alberts stated that he has a proposal to bring before Council Committee regarding one additional staff member at the Treatment Plant, but it will not increase the budget of the Treatment Plant. Council President Earling stated that he will.distribute a memo this week requesting Councilmembers preferences for committee involvement next year. ADJOURN With no other business before the Mayor or Council, Council President Earling adjourned the meeting at 12 noon. au a 1, ayo� onda J. Ma ch, City Clerk APPROVED MINUTES PAGE 7 DECEMBER 11,1993 AGENDA EDMONDS CITY COUNCIL SATURDAY, DECEMBER 11, 1993 8:30 A.M. -11:30 A.M. SPECIAL BUDGET WORKSHOP i LOCATION: COMMUNITY SERVICES BUILDING CONFERENCE ROOM 250 5TH AVE. N., EDMONDS, WASHINGTON CALL TO ORDER - 8:30 A.M. 1. REPORT ON GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED NOVEMBER 30, 1993 2. 1993 YEAR-END FINANCIAL PROJECTIONS FOR THE GENERAL FUND 3. BUDGET WORKSHOP ON PROPOSED 1994 BUDGET ADJOURN PARKING AND MEETING ROOMS ARE ACCESSIBLE FOR PERSONS WITH DISABILITIES. CONTACT THE CITY CLERK AT 771-0245 WITH 24 HOURS ADVANCE NOTICE FOR SPECIAL ACCOMMODATIONS. THE COUNCIL AGENDA APPEARS ON CHAMBERS CABLE, CHANNEL 32.