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11/24/1998 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES NOVEMBER 24, 1998 The Edmonds City Council meeting was called to order at 7:00 p.m. by Mayor Barbara Fahey in the Library Plaza Room, 650 Main. Street, followed by the flag salute. ELECTED OFFICIALS PRESENT STAFF PRESENT Bambara Fahey, Mayor Ga y Haakenson, Council President Dave Earling, Councilmember John Nordquist, Councilmember Michael Plunkett, Councilmember Jim White, Councilmember Dick Van Hollebeke, Councilmember Thomas A. Miller, Councilmember 1. I APPROVAL OF AGENDA Art Housler, Administrative Services Director Ron Haworth, Interim Fire Chief Rob Chave, Planning Manager James Walker, City Engineer Sandy Chase, City Clerk Jeannie Dines, Recorder Mayor Fahey requested consideration of a Request to Apply for a Four -Lot Short Plat and Authorization to Wave Application Fees be added to the agenda. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER VAN ended HOLLEBEKE' TO ADD CONSIDERATION OF A REQUEST TO APPLY FOR A FOUR -LOT Benda SHORT PLAT AND AUTHORIZATION TO WAIVE APPLICATION FEES BE ADDED TO THE AGENDA AS ITEM 7A FOR FIVE MINUTES. MOTION CARRIED. COUNCILMEMBER. VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, FOR APPROVAL OF THE AGENDA AS AMENDED. MOTION CARRIED. 2. ' CONSENT AGENDA ITEMS COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, FOR APPROVAL OF THE CONSENT AGENDA. MOTION CARRIED. The agenda items approved are as follows: Edmonds City Council Approved Minutes . November 24, 1998 Page 1' I. (A) ROLL CALL Approved 11/14/98 (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 14, 1998 Minutes Approved 11/17/98 (C) APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 17, 1998 Minutes pproved ', (D) APPROVAL OF CLAIM WARRANTS #27814 THROUGH #28908 FOR THE WEEK OF laim NOVEMBER 16, 1998, IN THE AMOUNT OF $496,808.21. APPROVAL OF PAYROLL amar►ts WARRANTS #22512 THROUGH #22628 FOR THE PERIOD NOVEMBER 1 THROUGH Edmonds City Council Approved Minutes . November 24, 1998 Page 1' I. NOVEMBER 15, 1998, IN THE AMOUNT OF $428,594.43. APPROVAL OF POLICE 1998 BUY -BACK PAYROLL WARRANTS #22630 THROUGH #22689 IN THE AMOUNT OF $113,198.79. iv,port-on,(E) REPORT ON GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED neral OCTOBER 31,1998 Fund 3. HEARING ON THE 1999 BUDGET Hearing Mayor Fahey explained anyone who requested a copy of the budget has been provided access to the n 1999 budget and supporting materials from the Council's budget work sessions. ud et Council President Haakenson explained the Council has had several budget work sessions. He said reviewing the budget consists of considering revenues and expenses. In the City, revenues are usually static; this year they are conservative and highly dependent on property taxes unfortunately. Therefore the Council has been closely reviewing expenses which are up $1.7 million over 1998, a 9% increase. He said Mayor Fahey and her staff have done an exceptional job explaining the increases to the Council. His review of the budget indicated $1.4 million or 85% of the $1.7 million increase in expenses is from six departments - non departmental, police, fire, parks maintenance, planning, and development services. The four large changes in non - departmental are a $232,000 increase in the Medic 7 assessment, a $200,000 computer system upgrade, $37,000 increase in library costs, and a $213,000 transfer for salary and contract settlements. The balance of the increases in the other five departments consists almost entirely of salary increases, some due to union contracts and other contract settlements with non - represented employees. The $74,000 increase in developmental services represents a new department. He said the Council has closely reviewed the increases and expenses and understands the need for them. He said staff has also presented a good reason for levying the 6% rate on property tax. However, at the last work session, several proposals regarding the levy rate were discussed to balance the budget including: (1) a 0% property tax rate with no cuts from the budget and an appropriation of $342,000 from the City's emergency fund, and (2) a 3% property tax levy rate and a $171,000 cut in expenditures. The Council directed him at the November 1.9 budget work session to provide his suggestions for cutting $171,000 from the budget. He indicated he contacted each Councilmember this week to discuss the cuts and a copy of his suggested cuts has been provided to each Councilmember. Council President Haakenson stressed the Council has spent a lot of time and effort to date in analyzing this budget. There have been accusations that the budget is just "rubber- stamped" by the Council, which is untrue. He said the public hearings scheduled tonight are two important steps in the process. Mayor Fahey reiterated the 1999 budget has a 9% increase, primarily due to the additional costs Council President Haakenson outlined and also because this year the City is absorbing the full impact of newly annexed areas including over 4,000 new residents and a significant geographic area. She said costs associated with providing services in the newly annexed areas must be included in the budget. She said staff was not budgeted for areas annexed in 1997 until a certain threshold was reached. When all the costs specifically associated with the newly annexed areas are removed, the increase from 1998 to 1999 is approximately 1.8 %. She clarified there are two public hearings, one for the public to provide input on anything related to the budget (Agenda Item 3) and one for input specifically related to the proposal to increase the property tax to 106% of the 1998 levy (Agenda Item 4) Edmonds City Council Appioved Minutes November 24, 1998 Page 2 Mayor Fahey opened the public participation portion of the hearing. Al, Rutledge, 7101 Lake Ballinger Way, Edmonds, submitted written comments regarding his request for 1) additional funding for a firefighter meeting/training event, and 2) suggestions to speed up the City's budget process and to make it more responsive. He recommended the City not decrease its reserves. Dale Hoggins, 21826 95" Avenue W, Edmonds, Chair of the Cemetery Board, reiterated the Board's support for the Mayor's recommendation regarding the Cemetery Board. He said four members of the Cemetery Board were present and unanimously supported Mayor Fahey's recommendation. Jeff Lewis, 23621 92nd Avenue W, Edmonds, expressed his appreciation for the work that has gone into the budget. He was concerned with $74,000 for a new department that does not currently exists and questioned the need for it. As a person with some experience with budgets, he said the first budget is usually a "wish list" that can be reduced in some areas. He referred to the Medic 7 levy and said his understanding was this covered Medic 7 costs. Mayor Fahey clarified Mr. Hoggins was referring to the funding of the Cemetery Sexton position for $53,000 this year. This allows the Cemetery Board to retain profits from the operations of the cemetery and place them in a fund that will permanently endow the cemetery so that it will always be preserved and stable. This has been included in the budget for 1999 and is a discretionary expenditure that the Council has supported in the past. Council President Haakenson said the funding of the Sexton position is not one of the budget cuts he recommended to the Council. He said the Sexton, Cliff Edwards, does a great job and he would fight to ensure that position is retained. Jeff Bennett, 9702 240" Place SW, Edmonds, representing Woodway Elementary, said their community (Firdale) met with City engineers to consider safety issues for students walking to Woodway Elementary (between the old Edmonds - Woodway and Firdale). He said it was their impression the areas recently annexed would be a high priority for safe walkways. He requested the Council be thoughtful in their budget allocation for safe walkways so that this could occur in the near future. He clarified Woodway Elementary was formerly Snoline Elementary. Greg Sarvis, 1101 12" Avenue N, Edmonds, spoke in support of realistic City government with realistic goals, realistic needs and realistic people to implement business practices in the City. He said a 3 % -6% increase in the budget was realistic. He referred to a proposal for a 0% budget increase, pointing out that costs, salaries and benefits continue to increase. He said 30 years in business have taught him to develop a marketing plan to fit the climate and, most of the time, a 3 % -6% sales or revenue increase is realistic. However a plan for a 0 % -2% increase is not responsible leadership. He said his understanding is the Council cannot request further funding later. He said during Mayor Fahey's presentation of the budget, it appeared she had a good command of the details to meet the needs of the community. He hoped one Councilmember was not championing a 0% gain with the goal of gaining political attention. He said surpluses should be maintained and the City should plan for its needs accordingly. A 0% increase in the budget will result in loss of the quality of life the community expects. He enjoyed the benefits Edmonds offers and wanted to continue living "Edmonds kind of days" and urged the Council to move forward. Councilmember Plunkett pointed out the budget has a 9% increase; the Council will be voting on a property tax rate. Mayor Fahey clarified the budget increase and the property tax increase are different, Edmonds City Council Approved Minutes November 24, 1998 Page 3 property taxes are one component of the revenues. The Council is considering a 0 % -6% increase in the property tax levy rate, which would not necessarily result in any increases to the budget. She clarified a 6% increase in the property tax levy rate was recommended to balance the budget. Roger Hertrich, 1020 Puget Drive, Edmonds, said the increase in the budget was extreme and questioned whether it could be accounted for by new annexations. He said there were other reasons for a high budget including new departments, changing classification of department heads, and other items that continually require more money. He felt neither Mayor Fahey nor the Council were conservative. He said constant increases require increases in revenue such as the 106% increase in the property tax levy. He said inflation was low and requested the City point out increases that are in addition to the cost attributable to new annexations and how much income the City is short when these areas are annexed. He expressed concern the Council has "gone along so easily" with Mayor Fahey's proposed budget. He said the Council could be conservative and control the creation of departments with the budget. Council President Haakenson pointed out he has provided the Council his suggestions to reduce the budget by $171,000. He offered to discuss this further with Mr. Hertrich after the meeting. Mr. Hertrich objected to providing money to the Edmonds Alliance for Economic Development when these are the same property owners who are trying to reduce the codes in downtown and make changes for their benefit. Council President Haakenson said one of his suggested cuts was $20,000 in funds provided to the Alliance. Hearing no further comment, Mayor Fahey closed the public participation portion of the hearing. Mayor Fahey observed Mr. Hertrich stated the new positions implemented were her idea and that the Council has just accepted them. In fact, every position that has been modified or added was the result of Council decisions, many of which were made due to recommendations from a consultant who considered the City needs to meet a growing population and larger geographic area in the future. The changes have been made as a team because the Council believed the recommendations from the consultant were appropriate and it was in the best interest of the City to implement those recommendations. 4. HEARING ON PROPOSAL TO INCREASE THE CITY OF EDMONDS REGULAR PROPERTY TAX LEVY TO 106% OF THE 1998 LEVY BASED ON A FINDING OF SPECIAL NEED Baring on Administrative Services Director Art Housler explained the Council packet included a resolution to Proposal to increase the property tax rate to 106 %. He said Referendum 47 requires the City to establish a need to Increase Tax exceed the Implicit. Price Deflator (.85% for 1999) which must be adopted by a super majority of the Levy Council. He described the needs identified, 1) a flattening of revenues expected in 2000 and 2001 (in 1999 a 14.8% decrease in sales tax revenue is expected, 2) the addition of another EMS unit to Medic 7 at a cost of approximately $110,000, 3) medical insurance premiums for 1999 have increased 13 %, and 4) a state mandate to microfilm and archive essential records as well as changes in the state financial system require upgrades at a cost of approximately $200,000. He said City Attorney Scott Snyder agreed these needs were adequate for the Council to adopt a property tax rate that exceeds the Implicit Price Deflator (IPD). Mr. Housler displayed and described how property taxes are calculated (1998 revenue $5,694,500 multiplied by 106 %), plus new construction ($26,197,000/1000 multiplied by $2.13) plus state utilities ($13,700,000 less $13,397,239 multiplied by $2.13), plus annexations ($16,552,000/1000 multiplied by $2.13) for a total regular tax revenue of $6,426,100. Mr. Housler stressed revenues from annexed areas exceed costs. Edmonds City Council Approved Minutes November 24, 1998 Page 4 Mr. Housler displayed a comparison of the impact a 106% increase would have on property owners ($0.126 per $1000). For a property valued at $160,000, the increase would be $20.16 per year, for a property valued at $210,000, the increase would be $26.46, and a $31.50 increase for a property valued at $250,000. Each 1% increase equates to $3.36 for a $160,000 property, $4.41 for a $210,000 property an'd $5.25 for a $250,000 property. Mr. Housler explained the 106% property tax increase was included in the budget as a result of forecast made through 2000 at the Council retreat. This increase was proposed as a result of concern the Council expressed due to (1) loss of sales tax due to completion of high school, elementary school, and marina which had huge impacts on sales tax revenues as well as construction fees and building permits, (2) fluctuation in Sales Tax Equalization (in 1995 the City received approximately $1 million in sales tax equalization, in 1998 the City will receive $468,000 and $472,000 is projected to be received in 1999), (3) impact of annexation revenues and expenditures ($156 million in property and 4,000 population), (4) change in amounts transferred to other funds (revenues in other funds were used to offset or reduce transfers), (5) implementation of Salary Study, and (6) re- instituting full equipment rental charges (interest income was used to reduce equipment rental rates to departments in recent years). Mr. Housler explained the Equipment Rental Fund owns all City equipment and departments rent equipment from this fund. Mr. Housler displayed a comparison of a tax survey done in March 1998 of 23 of the largest cities in Washington. Edmonds is the sixth lowest in property tax rate, fifth lowest in utility tax rate, and the lowest in utility rates. At Mayor Fahey's request, Mr.. Housler clarified the utility tax rate is 5.75% charged on utilities; the utility rate is the rate for water and sewer. Mr. Housler displayed a comparison schedule of population / employment ratios for cities of similar size for 1995 -- Mountlake Terrace 158:1, Edmonds 146:1, Kirkland 138:1, Mercer Island 145:1, Lynnwood 117:1, and Bremerton 122:1, and for 1998 Mountlake Terrace 155:1, Edmonds 151:1, Kirkland 127:1, Mercer Island 126:1, Lynnwood 107:1, and Bremerton 104:1. He pointed out Mountlake Terrace does not have a Treatment Plant (which Edmonds does) but those employees were not deducted from the number of employees used to compute the ratio; if this were done, Edmonds' rate would be better than Mountlake Terrace. He pointed out Edmonds is in approximately the same ranking after four years. Mr. Housler displayed a chart illustrating the percentage of the budget required for public safety ($10,230,700 or 49% in 1999 and $9,423,290 or 46% in 1998). He pointed out public safety comprised 43% of the City's budget in 1995. Mr. Housler displayed a comparison of revenues and expenditure trends for 1990 through 1996. He explained during his 21'/2 years with the City, there were two occasions when the property tax was not raised 106 %. Both times, there was a great deal of difficulty meeting expenditures or providing services the citizens demanded. In 1991 and 1992, the City Council made a decision not to raise the property tax at all (0 %) and many things did not get done. As a result, in 1993, the 6% for both years was recaptured and the property tax levy rate was increased 118 %. This resulted in a public outcry and the expressed preference for incremental increases. In 1994 and 1995 the Council again made a decision not to raise the property tax 106% but increased it only 103 %. However, due to sales tax from construction of the high school, renovation of Seaview Elementary and construction of the marina, the additional percentage has not been levied. He pointed out Edmonds is a "bedroom -type community" without manufacturing or large commercial activity; therefore, property taxes are necessary to provide services. Edmonds City Council Approved Minutes November 24, 1998 Page 5 Councilmember Van Hollebeke asked Mr. Housler to clarify that the 106% increase did not represent a 106% increase in the property tax a citizen pays. Mr. Housler agreed the 106% increase did not equate to a 106% increase in an individual's property taxes. He said the 106% is used to determine the increase in property tax revenues (previous years' revenue multiplied by 106% divided by the total assessed valuation to determine the property tax rate). He said the rate has not yet been established because the Assessor's Office has not yet provided the City with the total assessed valuation for 1999. For Councilmember Van Hollebeke, Mr. Housler explained sales tax equalization was established in 1982 due to the impact malls had on sales tax revenues of cities without malls. Numerous cities requested the state approve legislation to address the lost revenues due to citizens shopping at stores outside the City. Sales Tax Equalization was formed for distribution to cities with less sales tax revenues. He explained sales tax revenues were not used to establish the pool for distribution; each city was required to dedicate one -third of their Motor Vehicle Excise Tax (MVET) into this pool. Based on sales tax revenue, a determination was made of sales tax revenue generated per capita in the state. This is used to offset the revenues generated in the City per capita. He remarked in 1983 - 1985, the City received approximately $1.1 million (17% of the General Fund budget) in revenue from sales tax equalization. This amount has fluctuated in recent years; as sales taxes increase, the amount the City receives in sales tax equalization is impacted. Mayor Fahey opened the public participation portion of the hearing. Warren Schweppe, 8524 215" Street SW, Edmonds, said after reading the Ewing feasibility study and Mr. Housler's budget memo of November 7, he concluded the 6% increase Mayor Fahey requested is related to Ewing's study. He recommended a more reasonable increase, such as 3 %, due to the surplus of $102,600 as indicated in Mr. Housler's letter. He said there is no mention of the revenue from new construction at Chase Lake that will take place in 1998. He recommended the Council consider a 1% B &O tax to offset the 3% property tax increase and to allow businesses to contribute to the City. He understood there are ordinances that prohibit growth to be removed and that there is little opportunity for new business expansion. He questioned how the City could continue raising property taxes each year, particularly for residents on fixed incomes. Jeff Lewis, 23621 92 "d Avenue W, Edmonds, said his wife stays at home with their five children because they feel that is important for their quality of life, but tax increases each year make it increasingly difficult for one parent to remain at home. He pointed out the difficulty increasing taxes pose for single parents and those on fixed incomes. He recalled recent defeats of the RTA's original $7 billion proposal, the convention center bond, and Propositions 1 -5 and questioned how "in touch" the City was with the voters in view of their decisions on these issues. He said Snohomish County also wants a 6% tax increase. He said a 6% increase is six times the inflation rate of .85 %. Dale Hoggins, 21826 95" Avenue W, Edmonds (speaking as a resident), supported Mayor Fahey's budget request and recommendation for a 6% property tax increase. He said, like most Edmonds residents, he lives in the City by choice, enjoys the quality of life, and did not want the quality of life diminished by lack of funding or the compounding results of lack of funding. He said it is better and less costly to keep ahead rather than postponing or doing things inadequately. He said church and city budgets are similar as they are based on common goals and complementary interests. He said the increase is not unreasonable. He was sensitive to those on fixed incomes, noting many enjoy the benefits of exemption from all voter approved levies, a PUD discount, and water rate discounts. He said approval Edmonds City Council Approved Minutes November 24, 1998 Page 6 of a dollar amount is not unlike approving a special school levy, particularly the requirement for a super majority. He complemented the Council and Mayor on their interest and dedication to the City. David Orvis, 21118 77t1 Place W #103, Edmonds, spoke in opposition to the 6% property tax increase as he did not believe a special need existed to justify the increase. He believed this increase, combined with past increases and planned future increases could seriously impact those that pay property taxes. He said four reasons have been provided to justify the special need. Although the cost of medical insurance has increased, Attachment 11 indicated overall benefits increased by only 9 %. This combined with the EMS increase and the new state mandates only equate to a 3.5% increase in expenditures. However, the proposed budget includes a 9.1% increase. He said there appeared to be a $640,000 gain in sales tax last year that would be unavailable in 1999. To fund the 9.1 % increase in expenditures, he said the $1.2 million left over from previous budgets was used in 1999, as well as property tax increases and the 2% increase in revenues. He pointed out without the property tax increase, the budget could still be increased by 8.1 %. He felt the 6% tax increase was being used to increase the budget by 9.1% rather than 8.1 %, which did not represent a special need. He said taxes can impact the quality of life in Edmonds and expressed concern that taxes will double by 2008 if this did not stop. He recommended the Council consider voting no on the tax increase. Carl Wiser, 746 Somerset Lane, Edmonds, referred to his tax statement for the years 1994 through 1998 pointing out the value of his property has increased 23.8% and the total tax has increased 35.8 %. The amount assessed for the Port has increased 21.2 %, the state school increased 24.7 %, local school increased 32.7 %, hospital increased 39.5 %, county increased 44 %, and the City increased 55.1 %. He said it appears the City is growing as fast as others and maybe faster. He urged the Council in the future. to be aware how the City is spending money, pointing out taxes have been raised substantially over the past four years. Albert Huff, 810 Hindley Lane, Edmonds, supported the 6% increase, which represents less than 1.3% of his total property taxes. He has lived in Seattle, Shoreline, and Bellevue, and Edmonds is by far the best community to live in. When they moved to Edmonds, they were aware this was a City that must support itself and its schools on residential taxes (which is not the case in Bellevue or Seattle). He said what he gets for the taxes paid to the City, a $31.50 increase was a bargain. He urged the Council to pass the 6% increase. Al Rutledge, 7101 Lake Ballinger Way, Edmonds, said recent bond failures for the convention center and Ascent 21 indicate the public is tired of paying taxes. He recommended a special election be held regarding the property tax increase. He pointed out the 6% increase represented a $65 - $125 per year increase to property owners on Lake Ballinger. He recommended the City not rush approval of this budget and preferred additional cuts be made to the budget. Roger Hertrich, 1020 Puget Drive, Edmonds, said the rate of inflation was what Referendum 47 stated should be used for property tax increases which the City and County are proposing to exceed. He questioned what warranted this increase, and said it appears the City is not as well run as in the past yet property taxes continue to increase. He expressed concern with consultants "doing all the work" that management should be doing and with the lack of communication between departments. He preferred the additional property taxes be dedicated to 800 MHz rather than a future bond issue to fund it. He . recalled a property tax increase in the past had been dedicated to road maintenance. He stressed the citizens were not getting their money's worth and that was the reason citizens are upset with property tax increases. Edmonds City Council Approved Minutes November 24, 1998 Page 7 Gail Sarvis, 1101 12`h Avenue N, Edmonds, said raising property taxes was not a popular idea; however, responsible business would plan for some type of increase. She said a 3 % -6% increase was not unreasonable and recommended the Council make a responsible business decision to continue the quality of life with a 3 % -6% property tax increase. Mel Critchley, 705 Driftwood Place, Edmonds, said when he purchased his property many years ago because Edmonds "was the best place to live," his payments including taxes were $250. He described other residents who have lived in his neighborhood for many years and at least four of his neighbors are selling their homes because they cannot afford the increase in taxes. He referred to the recent economic situation and said he is preparing for an economic event as occurred years ago in the 1970's. He said businesses could no longer survive in Edmonds because of rent increases as a result of property tax increases. Hearing no further comment, Mayor Fahey closed the public participation portion of the hearing. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO EXTEND THE HEARING FOR 20 MINUTES. MOTION CARRIED. Responding to Mayor Fahey's question, Mr. Housler said there appears to be some lack of understanding of the County Assessor's Office requirements. The information available indicated the County required a resolution and an ordinance. The resolution before the Council tonight establishes the increase and reserves the capacity not levied now to be levied in the future. The actual amount to be levied would be addressed by an ordinance that would be adopted in December and would establish the rate per thousand based on the actual total assessed valuation. He said he had hoped the City Attorney would be present to clarify this issue. Mayor Fahey explained City Attorney Scott Snyder is unavailable until the end of the year and Mr. Karber who has been assigned to the City, was unable to attend this evening. Council President Haakenson said correspondence from the City Attorney's Office recommended the Council pass the resolution by November 28 to meet the requirements. Although the City has exceeded this date in the past, the City Attorney did not recommend that be done again. Council President Haakenson expressed concern with determining a tax levy rate by November 28 when the budget has not yet been completed. Mr. Housler suggested continuing the hearing to the next Council meeting and passing the resolution at that time would satisfy the legal requirement. Councilmember Earling said another option would be to hold a special meeting by November 28, as only 24 hours notice is required for a special meeting. Mayor Fahey remanded the matter to Council for deliberation. Councilmember Miller said he has asked a lot of questions of staff over the past three weeks since the budget was presented and struggled with a 9% increase in the budget and a 6% property tax increase request. Although he was unable to attend the November 19 budget work session, the packet provided by staff answered all his questions. The reasons staff has provided for the increase in the budget (annexations and assessments from outside governmental agencies) reflect the need to continue services at the existing level and unless the current level of service is reduced, it will be difficult to provide funding. However, he felt there were ways to reduce the requested property tax increase to less than 6 %. He said each 1% increase in the budget represented $57,000. He said the Council has discussed areas where expenditures could be reduced and revenues re- directed to keep the property tax increase at a more Edmonds City Council Approved Minutes November 24, 1998 Page 8 reasonable level. He said Council President Haakenson's proposal is to reduce the property tax increase from 6% to 3 %, although he did not agree with all the cuts Council President Haakenson suggested. Councilmember Miller said he would be more comfortable with an increase of 2.5% to 3.5% and suggested this be used as a basis to make reductions in expenditures that would not impact service levels. Councilmember Nordquist said the actual amount the City will receive from Sales Tax Equalization is unknown and there are moneys yet to be received from other sources that do not make the 106% increase necessary. He thanked Council President Haakenson for developing suggested reductions. COUNCILMEMBER NORDQUIST MOVED, SECONDED BY COUNCILMEMBER MILLER, TO APPROVE A 103% PROPERTY TAX INCREASE. Councilmember White said he requested Mr. Housler prepare an exhibit that addresses the impact of raising/not raising property taxes to the 106% level. He displayed a ten year (1998 - 2008) comparison illustrating the revenue loss if a 0% levy is assessed this year and 106% assessed for the next ten years as well as if a 103% levy is assessed this year and 106% assessed for the next ten years. Under the 0% levy scenario, in ten years the City cannot recapture $577,300 in property taxes. Under the 103% scenario, in ten years the City cannot recapture $289,100. He stressed the City can, within Referendum 47 guidelines, raise the property tax levy 106% and collect only 103 %. This would not result in the inability to recapture property taxes as illustrated in the exhibit. By passing a resolution authorizing a levy of 106% but also adopting a budget that expends only a 103% increase, the City does not lose anything; citizens benefit from a 103% levy yet the City retains the ability to recapture the funds in the future should that become necessary. He said under Referendum 47, the City cannot recapture unlevied property taxes in the future. He said this scenario provides the City with flexibility while meeting a budget based on a 103% property tax levy increase. Councilmember Plunkett said Councilmember White's exhibit shows the impact of Referendum 47; that is, government will have less money to spend. Council President Haakenson referred to the information from AWC regarding protection of future property tax levy capacity and asked if it addressed the time limit for reassessing capacity not assessed this year. He recalled in the past it was three years. Councilmember White said his understanding was there would be no ability to recapture, the exhibit illustrated the baseline for subsequent years, not recapturing. Mayor Fahey recalled prior to the passage of Referendum 47, cities had three years to capture any differential (from 1 % -6 %) that was not levied. However, Referendum 47 changed this and whatever a jurisdiction levies is the maximum that can be captured. Referendum 47 does not address recapturing any differential. She said available information indicates the City will not have the ability to recapture any amount not levied this year. Councilmember White explained the City creates a baseline with the initial levy (this year's tax plus 106 %) and next year the baseline is increased by that factor, and so on for future years. By not assessing that factor this year and assessing it for the next ten years, the City is in a position of not being able to recapture $577,300. He was aware amounts not levied could not be recaptured. Councilmember Van Hollebeke said a number of citizens urged the Council to do the responsible thing, to consider the budget and the City's needs. He observed it may be politically expedient to suggest taxes not be raised and pointed out the difficulty of developing a responsible budget for the citizens of Edmonds. He recalled comments citizens made that they live here by choice and that this is the best Edmonds City Council Approved Minutes November 24, 1998 Page 9 place to live. Citizens have chosen to live in what is essentially a bedroom community without a commercial tax base to provide revenue. He said there is a momentum in the community to improve neighborhoods as well as enhance the economic climate to increase revenues. He said it would be irresponsible not to request the maximum allowed. He supported requesting a 106% property tax levy but only budget at 103 %. He recalled the painful process in past years when the Council made the decision to reclaim property taxes not previously levied. He did not support the motion. Councilmember Plunkett pointed out the reason the Council is voting on the proposed 6% increase independent of the budget is due to Referendum 47. The intent of Referendum 47 was to make it more difficult for government to raise property taxes by requiring a separate vote to increase property taxes above the rate of inflation which is established by the Implicit Price Deflator of .85 %. He said the Council must have a super majority to increase property taxes above .85 %. He recalled Referendum 47 passed by 65% of the vote in Edmonds - 65% of the City's citizens supported maintaining property tax increases to the national rate of inflation. He believed the Council would vote to increase property takes, hopefully by less than the proposed 6% but substantially more than the public's wishes as expressed by Referendum 47. He said Councilmembers have given numerous reasons for the need to increase including that IPD should not be used and that it is a small property tax increase. He said any increase is not small when added to other tax increases for other entities that make up residents' property taxes. He pointed out even if the property tax rate is not increased, there will still be an 8% increase in the budget .which will fund an additional $850,000 for police and fire, new administrative staff, employee benefits, new software -- increase and upgrade all City services. He said this could be accomplished without a property tax increase by offsetting it with $74,000 in unanticipated additional property taxes, $13,000 in additional Sales Tax Equalization, $15,000 from refinancing bonds, and utilizing part of the $275,000 in the financial reserve account. Further, using budget history as a guide, during the course of the year revenues will increase $150,000 - $200,000 over current projections. Therefore, using unidentified, unanticipated, and unallocated revenue, the Council could fund the entire budget without cutting any fire department training, reducing funding for Edmonds Alliance for Economic Development, or affecting the police budget. In the future, $320,000 in library bonds will become available in 2001, which could be utilized to fund the long term needs for police communication and fire equipment. Further, state equalization tax will become whole in 2001, providing an additional $500,000. He said he intended to vote against the proposed 6% tax increase and the Council's proposed 3% tax increase, and adhere to the principles of Referendum 47 by voting against any tax increase. Council President Haakenson said the key words for him comes from Referendum 47, "substantial need" and the need for a majority vote to raise the property taxes over .85 %. After reviewing the budget this weekend to determine ways to reduce $171,000, he was comfortable a substantial need existed to maintain the service levels citizens enjoy via a 3% property tax increase. He found it difficult to justify a 6% increase for 1999 and would support the motion. He referred to Councilmember Plunkett's suggestion to use funds from the financial reserve account, which is the City's emergency fund, and said he could not in good conscience take moneys from a financial reserve account that has been established for emergencies and balancing the budget did not represent an emergency. He said the Council should accept staffs revenues projections at face value and it was irresponsible to believe the revenue projections were incorrect and would be $150,000 - $200,000 higher. Councilmember Earling agreed the prospect of raising property taxes was a daunting task. He pointed out each 1% property tax increase represents $57,000. This is a lot of money but is a relatively small amount of money compared to the $20 million General Fund budget. He agreed taxpayers expect cities to be responsible and deliberate in the amount by which property taxes are increased, as evidenced by Edmonds City Council Approved Minutes November 24, 1998 Page 10 Referendum 47. He supported the 103% property tax levy increase. He said the Council has discussed 800 MHz, which is a $161,000 per year issue. The Council discovered today this does not have to be addressed until next year; the Council previously believed funding needed to be created this year. Regarding the Emergency Fund, he said Councilmember Nordquist and he were on the Council when the following language was added to the Emergency Fund in 1993, "The City Council hereby states as its policy, purpose, and intent, the Emergency Reserve Fund has been established to handle unanticipated emergencies with which the City may be confronted including but not limited to declines in federal or other revenue, unanticipated emergency costs, and emergency liabilities." Councilmember Earling said none of those situations currently exist and he would not support utilization of funds the Council intended to be used for true emergencies. He said the library bond funds have been referred to for funding numerous projects. He preferred the discussion regarding how to spend those funds be avoided until 2000 when the library building will be paid for. He agreed a substantial need existed for a 3% tax increase. Councilmember Plunkett clarified there is an additional $270,000 over the required amount in the financial reserve fund. He was not projecting there would be additional revenue, that was the history of revenues over the past three years. Councilmember Miller clarified Councilmember White's preference would be a 106% increase in the property tax levy but using 3% as a "credit line" and Councilmember Plunkett prefers an increase no higher than the IPD of .85% and utilizing the emergency fund to balance the budget. He pointed out citizens are taxed by other entities in addition to the City and the property tax needs to be assessed clearly. Councilmember Miller did not support utilizing emergency funds to maintain existing services whIen a true financial emergency did not exist. He urged the Council to consider supporting the 3% in Irease. VOTE ON MOTION: MOTION FAILED (DUE TO REQUIREMENT FOR A SUPER MAJORITY), COUNCIL PRESIDENT HAAKENSON AND COUNCILMEMBERS NORDQUIST, MILLER, AND EARLING IN FAVOR, AND COUNCILMEMBERS WHITE, VAN HOLLEBEKE, AND PLUNKETT OPPOSED. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO EXTEND THE HEARING FOR 20 MINUTES. MOTION CARRIED. Mayor Fahey observed some people refer to the 6% increase as the Mayor's proposal. However, the budget was prepared based on the information Mr. Housler presented at the Council retreat. As no objections were raised to the 6 % increase and to cover the items she perceived the Council wished to halje included in the budget, the 106% property tax levy increase was included. She recalled at the time the!budget was presented, she offered to work with the Council to reach a reasonable compromise and to adhere to any recommendations the Council made for cuts in the budget. She said the budget review has been a very open process and as much information as possible has been provided to the Council on areas where cuts could conceivably be made. She said the suggested cuts were in areas that would not impact services and were items the Council requested be'included in the budget in previous years; therefore, it was not within her purview to eliminate them from the budget without Council direction. She said the suggested revisions utilize unanticipated revenues that were unknown when the preliminary budget was prepared as well as new items that must be included (at a cost of $40,000) that were also unknown when the! preliminary budget was prepared. This results in approximately $60,000 in new revenues or approximately a I% reduction in the proposed property tax increase. The Council is also discussing cuts to the budget. She expressed concern with putting the City in a position to lose the ability to recapture Edmonds City Council Approved Minutes November 24, 1998 Page 11 1 revenues in the future. She reiterated the 6% property tax increase was included to provide the items the Council in the past has indicated they wanted included in the budget. COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER EARLING, TO AUTHORIZE THE AMOUNT OF 104% INCREASE ON TAXES BUT BUDGET 103 %. Councilmember Van Hollebeke explained this would retain the 1% cushion ($57,000) if it became necessary. Councilmember Earling clarified the motion would authorize a 4% increase but only levy 3 %. This would leave 1 % that the Council could choose to levy in the future if necessary. MOTION FAILED (DUE TO REQUIREMENT FOR A SUPER MAJORITY), COUNCIL PRESIDENT HAAKENSON AND COUNCILMEMBERS WHITE, EARLING, AND VAN HOLLEBEKE IN FAVOR; COUNCILMEMBERS MILLER, NORDQUIST, AND PLUNKETT OPPOSED. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER MILLER, TO ASSESS THE TAX LEVY RATE AT THE 103% LEVEL FOR 1999. MOTION FAILED (DUE TO REQUIREMENT FOR A SUPER MAJORITY), COUNCIL PRESIDENT HAAKENSON AND COUNCILMEMBERS EARLING, MILLER, AND NORDQUIST IN FAVOR; COUNCILMEMBERS VAN HOLLEBEKE, PLUNKETT, AND WHITE OPPOSED. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER NORDQUIST, TO CONTINUE THE TAX LEVY RATE HEARING TO DECEMBER 8, 1998. MOTION CARRIED. Mayor Fahey declared a brief recess. 5. ANNUAL REPORT - SISTER CITY COMMISSION Al Huff, Chair of the Sister City Commission, referred to the Sister City Commission bi- annual report Annual in the Council packet. He explained in 1997 the Commission set a goal of raisin community awareness Report, p p � g g ty Sister city of the Sister City program. The main event was Hekinan Week in August 1997, which included Commission numerous activities. In 1997 and 1998, the Commission succeeded in recruiting 15 students and 2 teachers to go to Hekinan for a two week homestay. He explained Hekinan places an extremely high value on the student exchange program and sends 15 students and 2 teachers to Edmonds each year. He said the biggest testimony to the homestay program is comments from the students who participate. Due to the generosity of Hekinan, the home stay program is one of the least expensive available at a cost of only $800. He said the Mayoral visit a few weeks ago gave the City a book documenting the people who have participated in the home stays in Hekinan Edmonds (over 600 people). He explained the Commission also selects a teacher to be an Assistant English Teacher. The turning point for him in the Sister City Commission was Hekinan's request that Edmonds join in their 50"' anniversary celebration. He commended Mayor Fahey and Councilmember Nordquist who led the Edmonds delegation. He remarked Hekinan's 50' anniversary festival, which included at least half their citizenry, was something ..r to behold. ' Mr. Huff said this year's 12 member Hekinan delegation required more host families and more importantly, wonderful support from Stevens Health Care, the Edmonds Art Festival and Museum Edmonds City Council Approved Minutes November 24, 1998 Page 12 Bo lard, as well as Mayor Fahey who hosted the delegation, much of it from her own private resources and time. The Hekinan delegation was astounded Edmonds could reciprocate to the level it did.during their visit because they know Edmonds Sister City Commission is a volunteer group and Hekinan provides funding to their program. He noted Stevens Health Care also has a continuing exchange program and Edmonds Elementary, Meadowdale and Edmonds - Woodway High Schools have Sister School relationships with schools in Hekinan. Mr: Huff explained there are 12 volunteers on the Commission who develop plans each year for 2000- 2500 volunteer hours, including identifying private resources to fund activities. Mr! Huff said there has been discussion about Edmonds having a different Sister City, perhaps one in Europe. While this may be nice if there were people interested in working on that program, he said now is a particularly important time to have a Sister City relationship with Japan due to the United States' relationship with Japan. While things may appear to be fairly friendly with Japan, a time is approaching when the cultures are finding difficulties, particularly with economic situations. He commented the delegation member who stayed at his home had open resentment of the U.S. government's trade policies. He said Edmonds is living up to the ideal of the Sister City program as stated by President Eisenhower in thel 1950's, building direct relationships with other countries, particularly countries the U.S. had difficulties with in the past. He said the Sister City relationship with Hekinan is vital to understanding a culture that is so different from our own but so important. He thanked the Council for their past support and hoped it would continue. Council President Haakenson thanked Mr. Huff for his efforts on the Sister City Commission, particularly with the recent delegation. He was aware the delegation had a great time because he is still receiving letters from them. Co l ncilmember Van Hollebeke echoed Council President Haakenson thanks and asked that it be extended to the other Sister City Commissioners. He commended Mayor Fahey and Councilmember Nordquist for leading the Edmonds delegation in Hekinan and for hosting the Hekinan delegation in wonderful style in Edmonds. Mayor Fahey extended her appreciation to the Sister City Commission_ for their daily and ongoing efforts to foster goodwill with Hekinan. She asked Mr. Huff to report on openings on the Sister City Commission. Mr. Huff advised four terms would expire this year; two Commissioners have requested to be `eappointed. Any openings will be announced in mid - December. Mayor Fahey advised in addition to being a Commissioner, there are other opportunities for volunteers to assist in the program. 6. 1 ANNUAL REPORT - HEARING EXAMINER RONALD McCONNELL earing Hearing Examiner Ronald McConnell said this was his fourth year as the Hearing Examiner for xaminer Edmonds; he continues to find it a great city to work in. He reported activity this year has been similar °ai to previous years. The average case load for the past eight years has been 49 cases; he has had 45 cases eport thus far this year. He said his four -year term expires at the end of 1998, and he would like to serve as the City's Hearing Examiner for another four years. During the past year, he has tried to interpret the City Code fairly and honestly. Councilmember Earling said citizens may think the Hearing Examiner is an extension of what the Council and administration want to see happen; he thanked Mr. McConnell for the independence he has mail tained over the past years. He noted during the past year, Mr. McConnell and his associate heard Edmonds City Council Approved Minutes November 24, 1998 Page 13 u the same issue and had different outcomes. He said this spoke well to his independence. Councilmember Earling indicated he would support extending his contract. Mayor Fahey recalled she requested the Council indicate whether they wished to pursue other alternatives for a'Hearing Examiner. As no one indicated this desire, consideration of the contract will be placed on the December 15 agenda. 7. ANNUAL REPORT - PROSECUTOR JEFFREY GOODWIN Prosecutor Prosecutor Jeffrey Goodwin said one of the wonderful things about loving what he does is having the nnual opportunity to look into other areas to determine if the system can work better. These include the Report implementation of the community service program, which is outlined in the Council packet and the opportunity for increased revenues by restructuring fines. Councilmember White asked why he anticipated the community service program would reduce jail costs. Mr. Goodwin responded the primary reason is there was previously no community service option. When an individual was sentenced to jail, the choices were 1) take the individual into custody at a rate of $65 per day, 2) work release, the cost of which is borne by the offender, and 3) home detention, the cost of which is also borne by the offender. He said the court system has a high number of indigent individuals who have two choices - serve the jail time voluntarily, or don't serve the jail time and be picked up on a warrant and serve it later. Therefore, prior to the implementation of the community service program, there were no options for indigent/low income individuals. The community service program provides an option for these individuals to provide a benefit to the community, the court, and to the City. The community service program will reduce the number of jail days by a minimum of 20 days per month, which equates to approximately $15,000 in jail budget savings. He said there might be some increases in jail bookings due to the new DUI legislation that required DUI offenders be heard the next judicial day following their arrest. The court is considering the possibility of a no bail hold and mandatory booking when space is available. He said this might not have as significant an impact as may be thought, as the Lynnwood jail is now routinely full and unable to accept the City's bookings. If an individual is apprehended who is required to be booked, they can be taken to Snohomish County, which the court is considering for second and third offenders and subsequent DUI offenders. He said the community service program might be expanded to other types of offenses (it is now used primarily for driving offenses). Councilmember White asked the cost to book an individual at the Lynnwood jail. Mr. Goodwin said it is approximately $75 and the daily rate is $65. Councilmember White observed the community service is to be performed at a non - profit organization located in the City of Edmonds. He inquired what type of work would be done and for what organizations. Mr. Goodwin said the work would be done for an agency selected by the offender. The advantage of this program is that it is done at no cost to the City; offenders are informed of the option. Non -profit agencies would include churches, community food banks, the Boys & Girls Club, and any other non - profit agency the individual may have an interest in. Councilmember White asked if the court prepared a list of qualifying non - profit organizations. Mr. Goodwin said they have not yet and were initially reluctant to in an effort to keep the City out of the program administratively. Court staff currently only ensures the community service work is performed by the short deadline established by the court. Council President Haakenson said while at the SnoCom dispatch center today, he heard the Lynnwood jail was full. He asked if the Lynnwood jail accepted bookings from other areas in the county. Edmonds City Council Approved Minutes November 24, 1998 Page 14 Mr. Goodwin answered yes; they accept bookings from Bothell, Lake Forest Park, Brier, and Mountlake Terrace in addition to Lynnwood and Edmonds. He said this is a 45 bed facility so space is limited, which will become an increasing problem. Councilmember Miller asked if there was a community service assessment model that considered the individual's total criminal history before referring them to community service. Mr. Goodwin answered yes; it is done on an individual, case -by -case basis. When he reviews the file in preparation for arraignment, he evaluates whether the individual is a good risk to be out in the community to perform community service. He said individuals with any history of crimes of dishonesty or violence are not recommended for the community service program. He said the community service is used primarily for driving- related charges. He said there has been a huge increase in the number of license suspension charges; a third of the arraignment calendar are license suspension charges. For Councilmember White, Mr. Goodwin said the individuals serving DUI jail time are not in the community service program because that is a mandatory jail sentence dictated by the Legislature, which the court does not have the discretion to convert to community service. Councilmember White inquired about the proposed increase in revenues by restructuring frles. Mr. Goodwin explained traditionally when monetary penalties were imposed, a fine was imposed in addition to a cost that equaled 90% of the fine which was passed on to the state. The fine paid by the offender was reclassifying and categorized as probation costs. In this manner, the court is able to retain the entire penalty. The penalty structure has been increased to bring the total up to what it was previously including the costs and levies. He said the Office of the Administrator of the Court does not object to this procedure. Other cities such as Lynnwood and Tacoma are using this structure. He said revenues increased 20% in the first month following Lynnwood's implementation of this structure. Councilmember White said costs and assessments added to the fine are generally used to pay for driver education, L &I compensation, etc. He asked whether the Legislature would redirect these funds. Mr. Goodwin agreed as more and more cities adopt this penalty schedule, the state will lose revenue and make changes. He explained the Legislature increasingly dictates costs the City must bear, such, as the cost 'of public defenders, the mandatory minimum jail sentence of 180 days of an individual driving under an habitual license suspension for the third time, etc. He said the possibility of adding costs of confinement for certain types of offenses is being discussed. Councilmember White observed Mr. Goodwin reduced his appeal budget from $12,000 to $6,000 which reflects the management of his cases and the understanding in the legal community that a plea or trail can be expected in Edmonds. Mr. Goodwin said an appeal has not been lost under his administration. COUNCILMEMBER VAN HOLLEBEKE MOVED, SECONDED BY COUNCILMEMBER MILLER, TO EXTEND THE MEETING FOR 12 MINUTES. MOTION CARRIED. Mayor Fahey stressed the court is not a profit- making venture. Moneys collected are termed revenue but the funds collected are to offset the expenses of the court. Mr. Goodwin said the court seeks to have individuals who have violated the laws pay for the cost of administration of the justice system. Mayor Fahey said the Court Administrator cautioned her that while Mr. Goodwin has a wonderful record related to appeals and the cost of appeals this last year were lower than budgeted, there is a possibility of new appeals related to the mandatory DUI sentences, at least until the public becomes accustomed to the new penalties. Mr. Goodwin said most of the appeal costs the City bore this year were incurred in the Edmonds City Council Approved Minutes November 24, 1998 Page 15 first half of the year and he expected that trend to continue. Even if there are increases in appeals, he said there has not been an appeal in the past five months and he did not foresee any cases being tried that would be appealed before the end of the year. He said the $6,000 appeal budget takes into consideration the possibility of increased appeals as a result of the new DUI sentencing requirements. Mayor Fahey said unless the Council indicated otherwise, authorization for approval of Mr. Goodwin's contract for another year would be placed on the December 15 agenda. 7A. REQUEST TO APPLY FOR A FOUR -LOT SHORT PLAT AND AUTHORIZATION TO WAIVE APPLICATION FEES utnorization Mayor Fahey explained the Council took additional action on the Findings of Fact related to a short plat to Waive of property owned by Charles Warner. After the Council's action, Mr. Warner spoke during the audience Application Fees portion of the agenda regarding concerns he had related to interpretations made in this case that he felt were not appropriate. After the Council meeting, she spoke with Councilmember White who indicated if there was sufficient reason, the Council could reconsider their decision. However, legal counsel advised her the option for Council reconsideration was eliminated by Regulatory Reform. The memo from City Attorney Michael Karber indicates an ordinance would be required for the Council to reserve the right for reconsideration. However, as the ordinance does not currently exist, it cannot be used to address this situation. Further, if the Council were to reconsider the issue, it would still be a closed record and none of the new information could be presented. Therefore, legal counsel indicates the appropriate action would be for Mr. Warner to request reconsideration at the staff level (his other option would be to appeal to the courts). She said the memo from Mr. Karber indicates under ECDC 20.75.170, Mr. Warner has the right to request a revision of the short plat determination within five years of the original approval. Mr. Warner will be starting that process and the City Attorney suggested the Council approve waiving the fees unless additional processes are required and an apportionment of the fee would be determined. COUNCIL PRESIDENT HAAKENSON MOVED, SECONDED BY COUNCILMEMBER MILLER, TO RECOMMEND THE FEES BE WAIVED FOR THE RESUBMITTAL OF A SHORT PLAT REQUEST BY MR. WARNER. MOTION CARRIED.. As a result of the Council's decision, Mayor Fahey provided additional information regarding this matter. 8. MAYOR'S REPORT air Mayor Fahey reported she recently traveled to Washington DC for a 24 hour stay to participate in a ousing committee process regarding continuing the dialogue related to amendment of the Fair Housing Act or Act working with the service providers throughout the nation to develop local zoning to address concerns that have been created by the abundance of group homes locating in residential neighborhoods. She said the two hour meeting was one of the most beneficial she has attended because dialogue was opened and a lot of people educated regarding the problems this has created. ational Mayor Fahey reported the National League of Cities winter conference begins on December 1 and will League of include continued dialogue. She will leave on December 1 to attend the conference and return on ,ties December 5. During her absence Council President Haakenson will be Mayor Pro Tem and Community 1:islServices Director Paul Mar will oversee administration of the City. Mayor Fahey reported a legislative session with AWC was held on November 20 to define legislative :ative issues that will be addressed in January that will have significant ramifications/benefits for cities. Edmonds City Council Approved Minutes November 24, 1998 Page 16 i rce Mayor Fahey invited citizens to the tree lighting on Saturday at 5:00 p.m. She announced an ecumenical fighting program entitled "Edmonds Gives Back" will take place at Puget Sound Christian College on Wednesday, November 25 at 5:00. This program will celebrate the many things in the community that citizens have to be thankful for. oggle Mayor Fahey advised the first Toggle Train that was built' in the Puget Sound area will make its rain inaugural run beginning in Vancouver and pass through Edmonds for a two minute stop on November 30 at 2.00 p.m. Edmonds will be given a token of the passenger rail service. She said limited seating was available for anyone wanting to ride into Seattle. Mayor Fahey said an initial meeting to discuss a full visioning process is scheduled for late afternoon on December 17 at the Edmonds Floral Hall. The specific time will be announced later. 9. I INDIVIDUAL COUNCIL REPORTS/UPDATES ON RESPECTIVE BOARD MEETINGS AND COUNCIL COMMITTEE REPORTS Council President Haakenson wished the public a Happy Thanksgiving. COUNCILMEMBER EARLING MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO EXCUSE COUNCIL PRESIDENT HAAKENSON FROM THE NOVEMBER 2 COUNCIL MEETING. MOTION CARRIED, COUNCIL PRESIDENT HAAKENSON ABSTAINED. FT—A­---J Councilmember Earling said he will also be in Washington DC next week for the RTA to meet with eeting Secretary Slater and Federal Transit Administrator Linton. Councilmember Van Hollebeke wished everyone a Happy Thanksgiving. RCouncilmember Plunkett provided a report on the Community Services Committee, stating the design for en the Bracketts Landing bulkhead replacement is complete and the project. is scheduled to begin in December. Installation of the back -up generator at the Treatment Plant has been completed and final testing is underway. Planning, Building, and Engineering fees will be presented to the Council soon. Lf ancellation Councilmember Nordquist observed there was little scheduled for Council Committee meetings on 1m. Mtg December 8. In view of the continuation of the property tax levy hearing to December 8, he asked if committee meetings should be canceled? Council President Haakenson offered to check with staff and make a determination. Councilmembers Nordquist and Miller wished everyone a Happy Thanksgiving. COUNCILMEMBER WHITE MOVED, SECONDED BY COUNCILMEMBER VAN HOLLEBEKE, TO EXCUSE COUNCILMEMBER MILLER FROM THE NOVEMBER 19 BUDGET MEETING. MOTION CARRIED, COUNCILMEMBER MILLER ABSTAINED. Mayor Fahey wished everyone a Happy Thanksgiving. With no further business, the Council meeting was adjourned at 10:20 p.m. 43ARBARA S. FAHEY, M YOR -SANDRA S.-CHASE, CITY CLERK Edmonds City Council Approved Minutes November 24, 1998 Page 17 AGENDA EDMONDS CITY COUNCIL Plaza Meeting Room - Library Building 650 Main Street 7:00 -10:00 p.m. NOVEMBER 24, 1998 SPECIAL MEETING 7:00 P.M. - CALL TO ORDER FLAG SALUTE 1. APPROVAL OF AGENDA 2. CONSENT AGENDA ITEMS (A) ROLL CALL (B) APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 14, 1998 (C) APPROVAL OF CITY COUNCIL MEETING MINUTES OF NOVEMBER 17, 1998 (D) APPROVAL OF CLAIM WARRANTS #27814 THROUGH #28908 FOR THE WEEK OF NOVEMBER 16, 1998, IN THE AMOUNT OF $496,808.21. APPROVAL OF PAYROLL WARRANTS #22512 THROUGH #22628 FOR THE PERIOD NOVEMBER 1 THROUGH NOVEMBER 15, 1998, IN THE AMOUNT OF $428,594.43. APPROVAL OF POLICE 1998 BUY -BACK PAYROLL WARRANTS #22630 THROUGH #22689 IN THE AMOUNT OF $113,198.79. (E) REPORT ON GENERAL FUND FINANCIAL POSITION FOR THE PERIOD ENDED OCTOBER 31, 1998 3. (20 Min.) HEARING ON THE 1999 BUDGET 4. (20 Min.) HEARING ON PROPOSAL TO INCREASE THE CITY OF EDMONDS REGULAR PROPERTY TAX LEVY TO 106% OF THE 1998 LEVY BASED UPON A FINDING OF SPECIAL NEED 5. (15 Min.) ANNUAL REPORT - SISTER CITY COMMISSION 6. (15 Min.) ANNUAL REPORT - HEARING EXAMINER RONALD McCONNELL 7. (15 Min.) ANNUAL REPORT - PROSECUTOR JEFFREY GOODWIN 8. (10 Min.) MAYOR'S REPORT 9. (15 Min.) INDIVIDUAL COUNCIL REPORTS /UPDATES ON RESPECTIVE BOARD MEETINGS /COUNCIL COMMITTEE REPORTS Parking and meeting rooms are accessible for persons with disabilities. Contact the City Clerk at (425) 771 -0245 with 24 hours advance notice for special accommodations. The Council Agenda appears on Chambers Cable, Channel 32. Delayed telecast of this meeting appears the following Wednesday. Friday and Monday at noon on Channel 32.