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11/08/2003 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES Budget Workshop Saturday, November 8, 2003 The Edmonds City Council meeting was called to order at 9:00 a.m. by Mayor Pro Tem Earling in the Council Chambers, 250 5"' Avenue North, Edmonds. The meeting was opened with the flag salute. ELECTED OFFICIALS PRESENT Dave Earling, Mayor Pro Tem Richard Marin, Council President Pro Tem Jeff Wilson, Councilmember Michael Plunkett, Councilmember Deanna Dawson, Councilmember ELECTED OFFICIALS ABSENT Gary Haakenson, Mayor Lora Petso, Councilmember Dave Orvis, Councilmember STAFF PRESENT Tom Tomberg, Fire Chief David Stern, Chief of Police Duane Bowman, Development Services Director Stephen Clifton, Community Services Director Dan Clements, Administrative Services Director Jim Larson, Assistant Admin. Services Director Arvilla Ohlde, Parks and Recreation Director Noel Miller, Public Works Director Brent Hunter, Human Resources Director Stephen Koho, Treatment Plant Manager Dave Gebert, City Engineer Darrell Smith, Traffic Engineer Don Fiene, Assistant City Engineer Scott James, Accountant Debra Sharp, Accounting Assistant Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder 1. BUDGET OVERVIEW AND MAJOR POLICIES & ISSUES Mayor Pro Tem Earling announced that Proposition #1, the proposed levy lid lift to support Public Safety programs, did not pass in the November 4 General Election. Administrative Services Director Dan Clements explained the 2004 budget without the levy lid lift would follow the General Fund Projection Scenario #1 which did not include levy dollars. The 2004 budget would be generally status quo with no major additions or program cuts; the intent was to stabilize programs after three years of cuts. He pointed out City departments would remain down 20+ positions and $1.3 million below 2000 program levels. He explained in 2005, the City would need to identify approximately $750,000 through cuts, new revenue, and/or efficiencies to maintain a fund balance of $1.5 million in 2008. He explained funding for the Economic Development Director was identified by not filling the retiring Human Resources Director position and using funds previously dedicated to the Edmonds Alliance for Economic Development. He concluded the failure of the levy lid lift would save the owner of a $500,000 dwelling approximately $133 annually. Mr. Clements explained several key topics arose over the past week, including how the levy lid lift failure would impact the budget, economic development, impact on staff from the Triad development, Edmonds City Council Approved Minutes November 8, 2003 Page 1 animal neutering, and how EMS funds were expended (in response to an inquiry by a Seattle Times reporter). Mr. Clements reviewed an exhibit that illustrated the distribution of a resident's property tax dollar - City 20.3¢, EMS 3.8¢, County 10.8¢. Port/Library/Hospital 3.90, and Schools 61.3¢. He reviewed assumptions in the 2004 budget including a 1% statutory increase in property taxes, 1% growth from new construction, and building in under -expenditures (budget under -runs). He displayed a General Fund Projection Scenario with no levy lid lift and $750,000 in additional funds in 2005 to maintain a $1.5 million fund balance in 2008. Mr. Clements displayed a schedule that illustrated Public Safety items included in the budget, items proposed to be funded via the levy lid lift and items not funded in the budget. He displayed and reviewed a list of potential new revenue sources including efficiencies, property tax levy recapture, additional utility taxes, wireless franchise, rolling stock fund, and Esperance annexation and the amounts generated by each. In response to the inquiry from the Seattle Times regarding items funded via the EMS levy, Mr. Clements displayed a schedule that compared funds generated by the EMS levy versus items funded. He concluded there were approximately $3.9 million in EMS costs and the EMS levy was estimated to generate approximately $2.2 million in 2004. For Councilmember Dawson, Mr. Clements explained that although additional EMS levy funds would be collected in 2004, it would only mean that less of the General Fund would be used to subsidize EMS services. Councilmembers requested a copy of the EMS exhibit be distributed to Councilmembers. Councilmember Plunkett requested staff provide specifics regarding Mayor Haakenson's indication that the 2004 budget without the levy lid lift included a 5.3% increase in expenditures and that staff provide options for controlling costs. Mr. Clements pointed out increased medical costs and Police Chief Stern highlighted increased jail and communication costs. Discussion followed regarding the cost effectiveness of sending offenders to the Chelan County jail. Public Works Director Noel Miller displayed an exhibit illustrating street funding sources and the impact the loss of Motor Vehicle Excise Tax had on total funding. He explained the amount of revenue available to maintain the city's buildings and streets was eroding and there had been no net increase in staffing levels over the past 12 years although the amount of infrastructure has increased significantly. He described decreased General Fund expenditures to maintain building facilities and street infrastructure and the significant loss of revenue as a result of the passage of I-776. He concluded staff was taking a triage approach to maintaining city buildings and streets, emphasizing that additional revenue sources needed to be identified. City Engineer Dave Gebert responded to a Council inquiry regarding the street overlay cycle, explaining the City's overlays were currently done on approximately a 55-60 year cycle. Mr. Miller displayed a chart illustrating facility maintenance expenditures in 2002. Mr. Clements responded to Council questions regarding the base budget and the intent of incorporating under - expenditures into the budget. 2. DEPARTMENTAL BUDGET REVIEW MAYOR Mr. Clements reviewed decision packages included in the 2004 budget request for the Mayor's office, explaining the major change in the Executive Department was the addition of an Economic Development Edmonds City Council Approved Minutes November 8, 2003 Page 2 Director position. A question was raised regarding the proposal (in the Administrative Services budget) to eliminate funding for the City's participation in the Snohomish County Economic Development Council. Mayor Pro Tern Earling identified this as a budget issue for further discussion. ADMINISTRATIVE SERVICES Mr. Clements briefly reviewed the decision packages included in the 2004 budget request for the Administrative Services Department including an upgrade to the business license system. POLICE DEPARTMENT' Mr. Clements referred to the decision packages included in the 2004 budget request for the Police Department. FIRE DEPARTMENT Fire Chief Tom Tomberg emphasized the need for a dedicated Training & Safety Officer regardless of the outcome of the levy lid lift. He highlighted issues impacting the Fire Department including the reduction in reserves and continuing overtime costs. Discussion followed regarding funds budgeted in 2003 to train paramedics to be firefighters, overtime versus hiring additional personnel, and the ongoing need for a dedicated Training & Safety Officer. COMMUNITY SERVICES Mr. Clements referred to the limited decision packages included in the 2004 budget request for the Community Services Department. DEVELOPMENT SERVICES Development Services Director Duane Bowman reviewed the decision packages included in the 2004 budget request for the Development Services Department. He described the significant impact on staff from the Triad development and the proposal to add temporary staff to address the increased workload, funded via the additional permit revenue. Council President Pro Tern Marin requested consideration be given to including funding in the 2004 budget for the public participation portion of the Hwy. 99 Task Force project. The Council requested the Hwy. 99 Task Force provide a report identifying the steps that would be needed to achieve the goals of economic development on Hwy. 99 and the cost factors. Mr. Bowman responded to Council questions regarding potential overlap between consultant efforts and an Economic Development Director, addition of temporary positions for the Triad development, and the status of a developer agreement with Triad for additional fees to support staffing costs. Staff was asked to provide additional information regarding the Economic Development Director, the need for outside consultants to assist with economic development tasks, and potential overlap. Council requested the creation of the Economic Development Director position be scheduled as an agenda item. PARKS & RECREATION Parks & Recreation Director Arvilla Ohlde reviewed the decision packages included in the 2004 budget request for the Parks & Recreation Department, explaining there were no increases proposed that were not offset by revenue. She responded to Council questions regarding Yost pool operations and the walkway project. PUBLIC WORKS Public Works Director Noel Miller reviewed the decision packages included in the 2004 budget request for the Public Works Department. He responded to Council questions regarding modifications being Edmonds City Council Approved Minutes November 8, 2003 Page 3 made to an earlier proposal to require restaurants to install a grease collection system and the proposal to provide hepatitis vaccinations for eleven staff members. 3. PROCESS & DATES FOR FINAL ADOPTION OF THE 2004 BUDGET Mr. Clements summarized the potential budget amendments that the Council had identified — funding for the City's participation in the Snohomish County Economic Development Council, a Hwy. 99 Task Force work plan, and funding for a Fire Training Officer. He identified items on which the Council requested further information — efficiency alternatives, EMS levy schedule, status of the developer agreement with Triad, and further details regarding the Economic Development Director. It was also suggested consideration be given to adding the Fire Training Officer position and eliminating the Economic Development Director position. Mr. Clements reviewed a proposed budget adoption calendar. Councilmember Dawson suggested consideration be given to identifying additional cuts in 2004 rather than waiting until 2005 to identify $750,000 in cuts or new revenue. 4. OTHER ITEMS, ISSUES, AND CONCERNS A brief discussion ensued regarding the implications of a potential initiative to reduce property taxes by 25 %. With no further business, the budget workshop was adjourned at 10:50 a.m. G RYV�k�ENSON, MAYOR 1-,d!-� �z 1-1A,-- SANDRA S. CHASE, CITY CLERK Edmonds City Council Approved Minutes November 8, 2003 Page 4 Lei of EVA#, AGENDA EDMONDS CITY COUNCIL Council Chambers, Public Safety Complex 250 5t—" Avenue North, Edmonds ,,4� ���;, 9:00 to 11:00 a.m. Special Saturday Meeting November 8, 2003 WORK SESSION ON THE 2004 BUDGET Agenda Topic Agenda Page 1. Budget Overview and Major Policies & Issues (A) Operating Budget i. Property Tax Distribution (Budget, p xi) ........... 2 ii. Property Tax Growth (Budget, p xix) ................3 iii. Budget Under -Expenditures (Budget, p xviii) ..4 iv. General Fund Projection (Budget p xv) ............5 V. Public Safety & 2004 Budget (Budget, p xiv) ...6 vi. Future Balancing Strategies (Budget p xx) ......7 (B) Capital Budget i. Maintaining Road & Street Infrastructure ......... 8 ii. Public Safety & General Gov't Buildings .......... 9 2. Departmental Budget Review (A) Mayor (Budget, p 8)................................................10 (B) Administrative Services (Budget, p 32)................11 (C) Police Department (Budget, p 66).........................12 (D) Fire Department (Budget, p 128)...........................13 (E) Community Services (Budget, p 158)...................14 (F) Development Services (Budget, p 164) ................15 (G) Parks & Recreation (Budget, p 182) .....................16 (H) Public Works (Budget, p 234)...............................17 3. Process & Dates for Final Adoption of 2004 Budget .....18 4. Other Items, Issues, and Concerns ADJOURN 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 Government Access Channel 21.