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cmd050821 RetreatEDMONDS CITY COUNCIL VIRTUAL ONLINE BUDGET RETREAT APPROVED MINUTES May 8, 2021 ELECTED OFFICIALS PRESENT Mike Nelson, Mayor Susan Paine, Council President Adrienne Fraley-Monillas, Councilmember Kristiana Johnson, Councilmember Luke Distelhorst, Councilmember Diane Buckshnis, Councilmember Vivian Olson, Councilmember Laura Johnson, Councilmember 1. CALL TO ORDER/FLAG SALUTE STAFF PRESENT Dave Turley, Finance Director Scott Passey, City Clerk Maureen Judge, Council Executive/Legis. Asst. The Edmonds City Council virtual online retreat was called to order at 1:02 p.m. by Council President Paine. 2. ROLL CALL City Clerk Scott Passey called the roll. All elected officials were present, participating remotely. 3. LAND ACKNOWLEDGEMENT Councilmember K. Johnson read the City Council Land Acknowledgement Statement: "We acknowledge the original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water." 4. COUNCIL BUSINESS 1. CITY COUNCIL BUDGET RETREAT WELCOME INTRODUCTIONS Council President Paine introduced Mike Bailey and described his background. Councilmembers and Mayor Nelson introduced themselves. During introductions, the following requests were made: Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 1 • Councilmember Fraley-Monillas commented last year, the City received numerous budget requests right before the Council voted on the budget. She suggested Mr. Bailey address the advantage of submitting budget requests far enough in advance so Councilmember have an opportunity to consider them. • Councilmember Olson expressed interest in funds that will be provided to the City via the federal infrastructure bill. 2022 CITY BUDGET Mayor Nelson said when thinking about 2022, it is important to talk about where we have been before discussing where we are going. The City has accomplished a lot of amazing things under the circumstances, including providing direct financial aid to residents for food, rent, medical costs, childcare and tutoring for working parents as well as provided over $1 M, the majority of the City's CARES Funds, to struggling small businesses in Edmonds, donating personal protection equipment, compostable packaging, and creating a way for restaurants to remain open year round by allowing customers to safely dine outside. While other cities have seen businesses shuttered, Edmonds has helped keep businesses open. The City provided funds to food banks to help those most in need, funds to ensure seniors had food delivered to them and mental health services, and kept the City's parks clean and safe as local park usage skyrocketed. City staff dedicated thousands of hours to ensure all these programs were administered successful, services that were never contemplated in the City budget. Mayor Nelson explained in 2021, the City hoped for the best, but prepared for the worst. Millions were cut from the City budget, hiring was frozen, childcare was provided for those in need, a human services program was built, parkland acquisition strategies created, Highway 99 safety and beautification improvements were pursued, neighbors were engaged in creating a Highway 99 renewal plan, pedestrian safety improvements were created citywide, the Climate Action Plan was updated and there was community engagement between police and residents. The impacts of COVID-19 will exceed one budget cycle and have created serious challenges as well as unique opportunities. It has shifted the way people work and live, modified the way they received medical care, communicate, travel, shop, and made us long for and value human connections as well as exposed vulnerabilities while creating opportunities for the City. Looking at 2022 from a budget perspective, Mayor Nelson said it comes down to how to make the City more livable in this new era. He suggested the best way to achieve that is by continuing to support the most vulnerable and the environment by investing in future infrastructure needs by expand communication to residents, implementing racial equality initiatives and dismantling systemic racism, and by supporting and growing the local economy. He looked forward to collaborating with the Council to make these improvements for this and future generations and exploring opportunities together. REVIEW OF THE PROCESS WE'LL TAKE TODAY Council President Paine advised she will be the MC with timekeeping reminders from Council Legislative Assistant Maureen Judge. She suggested Council input in the exercises later on the agenda occur in order of Council position. Councilmember L. Johnson commented the video is not streaming on the City's website. City Clerk Scott Passey advised it is not streaming on the website but anyone can connect to the meeting via Zoom. COUNCILMEMBER K. JOHNSON MOVED, SECONDED BY COUNCIL PRESIDENT PAINE, TO APPROVE THE AGENDA. MOTION CARRIED UNANIMOUSLY. COUNCIL ROLES AND RESPONSIBILITIES Mike Bailey presented regarding municipal budgeting for elected officials • A budget team construct Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 2 o Budgeting is a team effort o Different team members have different roles • A Budget Team Construct Finance Role (which resources) c Operations Role (how, when & with what/who) �W Policy Role U (what results, how much, ground rules) *Government Finance Officers Association's (GFOA) Budget Peer Review Program Framework Roles of the Budget Makers o Policy makers (council) — make policy! ■ Provide policy guidance at the beginning ■ Confirms budget meets direction by adoption ■ Monitors for conformity and results o CEO/CAO (Mayors, city managers) — ■ Propose policy at the beginning ■ Develops organization strategy to implement policy o Departments ■ Develop operational strategy ■ Provide service (departments can be passionate about this!) ■ Accountable for "day to day" o Public — "stakeholders" ■ Observes results and "counsels" policy makers With regard to late budget requests, Mr. Bailey pointed out when request are not provided early on, it makes it difficult and unfair to expect others to respond to last minute ideas/interests. • The right tools for the job — aka "The Reporting Pyramid" Residents, business, ommunity Investors (IRedia / outreach efforts) Council/ Po ' y/Accountability Commission (brie n s, reports,questions) Mayor / Manager Z Orgam ational Management Chief Executive Officer (briefing reports, high level data) Department Directors Functiona anagement (reports, mi level data Managers / Supervi rs Program Man ement (line item level ta, transactions • Governmental Accounting Terminology o Appropriation — Legal authorization granted by council to make expenditures o Reserved Fund Balance — balance not available for appropriation because it is legally restricted o Unreserved Fund Balance — balance available for appropriation, may also be known as "ending" fund balance o Inter -Fund Transfer — Flow of assets (such as cash) without equivalent flow in return and without requirement to repay Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 3 o Inter -Fund Loan - Loan mechanism authorized between funds if legislative authority adopts, provides for concise repayment plan o Budget Ordinance - The legal document that adopts the budget and sets the appropriation construct and limits Key Elements of City Finance o Budgeting ■ Appropriation ordinance for immediate needs ■ Strategic planning (long term) o Reporting ■ Internal and external o Oversight (Internal Control) ■ Review ■ Monitoring ■ Policies Budgeting o Budget is economic plan that focuses entity's financial & human resources on the accomplishment of specific goals & objectives established by policymakers o Establishes annual (or biennial) expenditure levels for all departments & funds o Expenditure levels are called appropriations & represent spending limits Budgeting Mission o Mission of budget process is: ■ Help decision makers make informed choices about provision of services and capital assets ■ Promote stakeholder participation in the process Budget Policies o Sample topics to consider: 1. Type of budget (priority -based budgets) 2. Duration (annual or biennial 3. Use of one-time resources/definition of balanced budget 4. Fund balance targets 5. Amending the budget 6. Budget calendar/approach 7. Fees/user charges Getting the Most o Policy Elements ■ Strategic Focus/alignment with policy goals ■ High level description of value to be delivered (results!) - Budget message - Budget "highlights" sections" ■ Financial policies ■ Operation elements ■ Capital investments ■ Debt program o Operations ■ Translating policy guidance into action 1. Organization chart 2. Authorized employees (with 3. Department descriptions - Or similar organizational unit information - Goals, accomplishments, action plans, performance data Financial elements o Financial Elements ■ Strategic Financial Plan Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 4 1. Sources and uses of funds (including the appropriation) - Multiple years for comparison 2. Operating unit budgets (departments, divisions) 3. Description of revenues / basis for forecasts 4. Long range forecast (description and schedule) o Communication Elements ■ Organizational transparency (it's other people's money!) 1. Budget message (again) - Also highlights 2. Clearly organized - (plain language, include a table of contents / 3. Environmental scan (what's changed that you are reacting 4. Charts, graphs Accountability vs. flexibility - an important policy consideration o Debt o Reserves o Investments o Revenue & expenditure o Operational budgeting o Capital budgeting MRSC Budget Process summary o Pre -budget (Spring/Summer) o Budget Estimates (Summer/Fall) o Preliminary budget (Fall/Winter) o Final Budget (Winter) Resources o AWC (wacities.org) workshops/training o MRSC (mrsc.org) webpages & trainings ■ mrsc.org/financialpolicies ■ mrsc.org/budgeting ■ Call/email with questions o GFOA (gfoa.org/publications) ■ Publication series for elected officials ■ Best practice series o WA State Auditor's Office (sao.wa. ■ The Center performance@sao.wa.gov ■ SAO Helpdesk Council President Paine commented there has never been a year like the past year where it has been necessary to be thoughtful and creative and to address needs rapid fire. She hoped the City would not be impacted as much by COVID in the coming year and could focus on recovery and resiliency. She asked if Mr. Bailey had seen good practices in other communities or things Edmonds should avoid related to the pandemic. Mr. Bailey agreed no one anticipated business would be conducted in this manner. The fundamentals that have been discussed in the past become even more important, continuing to be prepared, virtual meetings are more difficult than in -person meetings, the nature of the work is more difficult because communicating effectively is more challenging. It is important to be even more respectful of the fundamental elements of good communication, being thoughtful and respectful. He acknowledged he did not have a good answer. REVIEW OF LAST YEAR'S COUNCIL PRIORITIES Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 5 Mr. Bailey complimented City staff on the budget information that is available to the public. He noted many of things that were discussed last year were included in the budget. Some of the plans in the budget were disrupted by COVID so not everything that had been accomplished. However, things that were emphasized last year such as the social worker and supporting the community were identified in the budget and there was also a fair amount of investment in City facilities and infrastructure in the budget. He highlighted 15 items that were identified last year, acknowledging not all of them could be accomplished: • Social worker • CIP process and whether the focus on capital projects was missed • Investments in sidewalks and pedestrian safety and access • Infrastructure and facility upkeep • Clarification around the building code, permitting, development • Increased emphasis on human services programs • Highway 99 corridor safety • Enhanced support for 4' Avenue Arts Corridor • Accessibility to parking downtown • As become more urbanized, the challenge of identifying and acquiring more open space and park land development • Emphasis on communication on behalf of City • Interest in protecting historic elements of City, particularly the Edmonds Theater • Employee safety in light of COVID • Maintain/rebuild reserves depending on what happens with the pandemic • Planning for watershed Mr. Bailey commented it is more difficult to find reductions versus make expansions. Some of things suggested at last year's retreat regarding reductions included: • Does the City need to own all the assets, is there opportunity to free up resources and obligation to maintain those assets? • Concern with overreliance on professional services, possibility reducing the professional service budget • Amount of money spent on overtime needs to be reviewed, particularly in law enforcement • If an SRO is no longer provided, possible opportunity to free up resources • Repurpose the money set aside for a City trolley Councilmembers reflected on last year: Councilmember K. Johnson said one of her concerns was the shortcomings of CIP/CFP review. In fact in 2020 it was so rushed that it was done at the end of the budget process and very little time was allocated to it. At that time, the Council President suggested it be a topic of a future Council retreat. She felt the weight of that limited review year after year and this year and recommended, the Council make a better effort to evaluate the CIP and CFP before taking action. Councilmember Distelhorst appreciated that the top six priorities from the 2020 budget retreat were funded in the 2021 budget; that shows the importance of identifying the values and putting dollars to those values. He noted some of them are multi -year processes and cannot be considered as one-off 2021 items but actually long term investments for the community. He agreed there were some challenges at the end of last year and he suggested keeping that in mind; the Council having all of its work done, questions answered, information submitted ahead of time, etc. will help make the process more efficient and relieve some of the pressure that everyone felt. Councilmember Buckshnis echoed Councilmember K. Johnson's comments. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 6 Councilmember Olson expressed appreciation for the recap, commenting she still supports doing a lot of the things that were identified. The City was in somewhat of an emergency mode last year, and it would be nice to stand behind some of those priorities as the City gets out of emergency mode. She suggested looking at things through the lens of what could be accomplished by harnessing more volunteer effort. She referred to the Chamber of Commerce's model, a staff of 2-3 and a massive amount of volunteer power directed to projects throughout the year that could never be accomplished with a 3-person staff. There are things the City could be doing such establishing a citizen patrol as part of softening the approach to policing, something citizens have said would participate in. With everything the City is doing, she suggested looking at it through the lens of what citizens can stand behind and be a part of. Council President Paine commented some of last year's priorities are still good ideas and should be moved forward, but she also has some other ideas. Councilmember L. Johnson commented listening to the recap, it was evident the Council did well budgeting by priorities or at least getting started on them, particularly during these uncertain times. She commented the items she was interested in highlighting moving forward were many of the same things that had been started. Mr. Bailey commented it was rewarding to see the City make progress on things it decided were important. The Council should congratulate themselves because that is not always the case. That also illustrates there was a fair amount of teamwork involved last year for those ideas to be included in the budget. As an outside observer, he suggested one of financial policies the Council may want to consider is a biennial budget process, pointing out in the off -budget year, the Council could devote time to capital budget planning. He also suggested a financial policy regarding deadlines for new initiatives, nothing too structured as it should be interactive, congenial and less regimented. If deadlines are a concern, the Council could adopt rule or procedure that would help manage that. 2022 COUNCILMEMBER PRIORITIES Emphasize Council President Paine invited Councilmember to identify items they wanted to emphasize and deemphasize. Mr. Bailey encouraged Councilmembers to bring forward an item that was on last year's list, whether it was something that was being worked on or had not gotten started, and/or support an idea suggested by another Councilmember. Councilmember K. Johnson Priority: Update the Strategic Plan. The City developed a Strategic Plan a decade ago, a process that included community support and involvement, definition of priorities and who would accomplish them. Through that process, the need to rebuild the senior center was identified and the senior center was identified as the lead agency. The senior center accepted that responsibility, thanks in part to the Senior Center Board and the Director, and the result was a community -supported success story. Another idea from the Strategic Plan was a downtown restroom which was also implemented. If communication is the glue that holds the City together, it should not be just the Council's ideas but also an opportunity for the community to be involved. She clarified she was suggesting an update, not the full-blown process but a modified process to keep the Strategic Plan relevant in the budget process. Councilmember Distelhorst Priority: Continue efforts related to transportation mobility continue and be even more robust potentially with the City's American Rescue Plan funds. This was identified last year as sidewalks, bike lanes, trails, ADA ramps with tactile feedback in places where there are still full curbs, sidewalks that prevent tripping Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 7 hazards, etc. He acknowledged with the amount of work that needs to be done, it is easy to get overwhelmed. The City could begin doing minor improvements across the City and see benefits for all residents from children to seniors. Multi -unit residences are almost exclusively on arterials which are often faster and wider roads which make them much more dangerous for pedestrians or wheeled devices. He summarized his first priority was an intentional focus on areas around destinations like businesses, parks, and schools. Councilmember Fraley-Monillas Priority: Agreed with updating the City's goals which budgeting by priority may assist with. Interested in locating a community center/community police facility east of Highway 99. Citizens in east Edmonds are interested in ways to join the upper part of Edmonds with the bowl. Councilmember Buckshnis (relayed by Councilmember K. Johnson) Priority: Complete the environmental analysis for the two bodies of water that enter Puget Sound, the Edmonds Marsh and Perrinville Creek. With regard to the Edmonds Marsh, complete two optional tasks in the Windward contract related to implementation and opportunities to improve the environment. With regard to Perrinville Creek, she expressed interest in taking a salmon recovery view of Browns Bay through lower Perrinville Creek where it is obstructed by Talbot Park. That environment was rich with salmon at one time, but no longer supports salmon and Perrinville Creek has become a de facto drainage ditch. Councilmember Olson Priority: Support for the quality and care of the Perrinville Watershed and for the walkable nature of the City. The comments related to the bike lane project emphasized the priority of a walkable town and how many people are walkers and want that aspect of their lives improved. Her number one priority is building maintenance, the aging infrastructure, the age of the City and the age of the buildings. That segues into private and publicly owned building and supports the priority of the code rewrite because many private buildings will need to be redeveloped as well as prioritizing the City's building maintenance. Not doing maintenance in a timely manner makes those repairs more expensive in the long run. Council President Paine Priority: Share a lot of Councilmembers' priorities. Top priority this year, which was also mentioned last year, is BD1 zone design standards. The BD1 zone is the heart of the downtown core and the design standards should reflect what everyone loves about downtown Edmonds. It would be a shame not to have design standards is there were an earthquake. Focusing outside the bowl is critical as well, but design standards for the BD 1 zone will help keep Edmonds looking like Edmonds. Councilmember L. Johnson Priority: Similar to Councilmember Distelhorst, interested in increased accessibility especially related to disability language and the geographic location of neighborhoods. How people get around town, get from Point A to B, their access to services such as parks, shopping, etc., accessibility to government functions and communication from the city. That encompasses numerous areas from human services to investments in pedestrian safety, infrastructure, building access, Highway 99, transportation improvements and communication. Councilmember L. Johnson Priority: Environmental concerns and prioritizing the watershed. It has been apparent through things the City is working on and emergencies that have come up that the watershed is of huge concern. That includes open space acquisition, urban forestry management, etc. Council President Paine Priority: Echo the comments about the criticality of the Perrinville Watershed and looking at it from top to bottom to ensure it is serving the Puget Sound environment, salmon and providing killer whales access to Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 8 salmon. The City also needs an urban forestry program, one that is right sized and funded in a meaningful way so there are services for residents related to trees and a well -written plan that is data driven. She summarized her emphasis was on Perrinville and the environment, specifically supported by an urban forestry program. Councilmember Olson Priority: Overall justice issues. This topic has already been addressed by sub -pockets of the population, but she would like to have a whole community engagement about justice and how that is approached as a city. That is a community value that many people care about and she wanted to see it expanded to everyone. Citizens who are not getting that cannot be expected to feel good about anything else happening in Edmonds. There are a lot of ideas and great approaches that haven't been considered. She referred to the report from the Equity and Justice Task Force, recalling she had offered that idea to one of the task force members, but did not see it mentioned in the report. A citizen suggested having an administrative judge that would go to the Diversity Commission once a month where complaints could be heard which may be more comfortable for people than going to the police. With regard to a citizen patrol, she felt having more members of the community interfacing with officers and knowing the job would be helpful to the community as well as the police department. Councilmember Buckshnis (presented by Councilmember K. Johnson) Priority: Agree with the need for a timelier review of the CIP/CFP. This has been talked about for years, but it always comes to the Council in a rush. The information is presented late, the budget takes priority and the CIP/CFP is an ancillary issue. However, the CIP/CFP is where the City spend most of its discretionary money — fixing sidewalks, funding a trolly, building parks, or purchasing opening space. The CIP/CFP should be a high priority for the Council because it is how the priorities and policies are implemented. The Council does a pretty good job of determining the policies but does not go the next step. If the Council wants improved sidewalks, walking trails, bike lanes, etc., the Transportation Plan states sidewalks are only required on one side of an arterial street and no sidewalks are required on local streets. She suggested determining if that still works for the City. When Edmonds was unincorporated Snohomish County, there were no sidewalk standards which is why there are sidewalks below 9'1i Avenue and not above. Those policies need to be reevaluated, maybe not through the budget process, but during the year to see if they are still appropriate. Councilmember Fraley-Monillas Priority: Equity and inclusion for the other side of Edmonds. Not only are there no sidewalks or lights, but there is also only one park with three parking spaces to serve one-third of Edmonds. Until this is considered through an equity lens, nothing will change. Amazingly, there are no sidewalks leading to the park and she sees preschoolers and their teachers walking down the middle of the road to reach the park. Equity is important to her and to the residents living east of Highway 99. She requested consideration be given to what needed to be done to bring the east side of Highway 99 up to the standard assumed in the bowl. Councilmember Distelhorst Priority: One of the City's commissions has discussed an Office of Human Rights for the City, a proactive and forward approach to looking at issues of equity for all residents. The Highway 99 office and placemaking is also one of his high priorities. In discussions last year with stakeholders, people indicated having services online made them more accessible because they did not have to go to downtown Edmonds. Having a resource that is closer physically as well as maintaining digital access such as the ability to have video conferences with city or county resources through that office would provide a great equity component for City residents. Councilmember K. Johnson Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 9 Priority: Updating the code, something that has been neglected for decades. The City continues to experience problems because the code hasn't been updated. She supported continuing to include resources in the budget to hire people to update the code. Councilmember K. Johnson Priority: Communication, the City needs to do a better job of communicating. She regretted that at times the City Council had been informed of the administration's actions via announcements from the Public Information Officer. The Council should be informed in advance so they are not the last to know what is occurring in the City. The City hired a Communication Officer but she did not think they were serving the boards and communications. It was initially intended as someone who would coordinate public information and communication in the community, not just be a Public Information Officer. She recommended revisiting that and finetuning it to make it better for the City. Councilmember Distelhorst Priority: Echoed Councilmember K. Johnson's comment, noting one of his priorities last year was communications and public engagement. The City's communication person is still part-time, and with a population of 43,00, the diversity of neighborhoods, and the diversity and complexity of projects in the City, consideration needs to be given to increasing that 1.5 FTE. There are numerous opportunities for public participation in City decision -making and that engagement could be increased with additional staff and would address equity, accessibility, etc. He summarized his support for an Information, Communication and Public Engagement Department to serve the whole City. Councilmember Buckshnis (presented by Councilmember K. Johnson) Priority: Transportation projects. The City is a doing abetter job than it did a decade ago, but still need to fix potholes, pave streets, maintain the existing infrastructure, etc. Councilmember Olson Priority: Communication and engagement would address one of the bigger picture issues, getting the community involved in problem solving. Possibly an administrative judge could serve that function or do what an Office of Human Rights would do. If the City engaged the entire community in these conversations, there would be better outcomes, policies that serve people better and possibly cheaper alternatives. As Councilmember K. Johnson said, when the Council get news of what the administration is doing instead of being brought in early, the inputs Councilmembers get from the community are not included in the administration's problem solving process. This may be a topic for a Council retreat and not a budget retreat. Council President Paine Priority: (If the Council decides to advance the Housing Commission's recommendations), subarea planning for neighborhoods and multifamily standards which will require intensive community engagement and budget resources. Another priority is maintenance projects for facilities, parks, roads and streets sidewalks, etc. and looking at those with an equity lens. Councilmember L. Johnson Priority: Agree with Council President Paine's comment about housing. Strongly support Councilmember Distelhorst's priority for an Office of Human Rights which would greatly benefit the community. As liaison to the Youth Commission, anything we can do to continue to listen to youth, learn from them and prioritize their interests. The youth are our future and they have been through a lot lately; there may need to be some additional resources toward that segment of the population during recovery from COVID. It can be tricky with older teens; they want you to think they have everything under control, but they have been through the ringer. Resources could be anything from mental health to increased safe activities for them. Parks & Recreation has done a fabulous job, continuing to fund that should be a priority. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 10 Council President Paine Priority: COVID recovery for local businesses and the most vulnerable residents. Looking forward to American Rescue Plan funds. Councilmember Olson Priority: Do not forget about parking as a concern and a priority. Councilmember Buckshnis (presented by Councilmember Olson) Priority: Move funds for the marsh daylighting project to the proper place. Councilmember Distelhorst pointed out a Washington State legislator was cited for participating in an open public meeting while driving. He wanted to ensure Councilmembers were kept safe and out of the headlines. Councilmember Fraley-Monillas commented a Councilmember could be on their headset or talking handsfree and would be acceptable. She was not comfortable with Councilmembers expressing priorities for other Councilmembers and preferred they were present to provide input. Councilmember Buckshnis said she was listening to the meeting. She was dismayed that Councilmembers did not trust that she had had conversations with Councilmembers K. Johnson and Olson about expressing her thoughts, commented that in itself was a communication issue. She concluded Councilmembers K. Johnson and Olson were doing a great job expressing her priorities. Councilmember Fraley-Monillas Priority: Budgeting by priorities. This allows citizens to determine the highest priorities. She recalled former Finance Director Scott James was interested in budgeting by priorities but the administration did not support it. She suggested the Council discuss budgeting by priorities. Councilmember Distelhorst Priority: Continuing to fund the Human Services program and staff. Eviction moratoriums due to COVID have been in place for 14-15 months but data shows renters may be very behind in their rent and vulnerable. He wanted to ensure there was a robust program in place when the eviction moratorium ends at some point. Renters are disproportionately impacted, but homeowners are also impacted. Data provided by AHA indicated forced sales in Snohomish County were almost at global financial crisis levels. Councilmember K. Johnson Priority: Capital funding for a Creative District project for 4' Ave Corridor. It would enhance Edmonds as an arts community and support historic downtown Edmonds. Some design standards were developed for downtown Edmonds 20 years ago by Mark Hinshaw, but they were primarily related to placement of signs and building facades. Anything that can be done to support historic downtown Edmonds, the theater and the shopping district would be positive and worthy of the City's efforts. Councilmember L. Johnson raised a point of order, relaying her concerns with the safety of a Councilmember driving and participating in the meeting and the example that was setting. Clearly there is engagement occurring and she requested the Councilmember either pull over and fully engage or refrain from a back and forth. The Council is setting an example for the community, teenagers, new drivers, etc. Council President Paine said she had thought it would be nice to have Councilmember Buckshnis' input but she did not want anyone to be put at risk. She suggested it be addressed during the break. Councilmember Distelhorst Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 11 Priority: Echo what was said about the environment and looking at watersheds and pollutants running into the watersheds. There is a major highway leading to the ferry; there may be opportunities for better partnerships with WSDOT and WSF to help minimize the impact of that transportation corridor next to the marsh. He acknowledged there are no idling signs in the ferry lanes, but suggested consideration be given to ways to reduce emissions. Councilmember K. Johnson Priority: Look at a ferry reservation system. A ferry reservation system might support downtown businesses if people waiting for a ferry knew they had an hour to shop. The impacts of the ferry on SR 104 were not anticipated, it was done pre-NEPA so there was no evaluation of the impact on the marsh. Acknowledging it would be very expensive, she suggested exploring that as part of the total marsh restoration, not this year but in future years. Councilmember Olson Priority: Review all the City's capital assets and assessing the location of offices and determining whether buildings could be sold and therefore not upgraded or maintained. That could positively impact the budget short term with revenue from the sale and long term with fewer maintenance expenditures. Deemphasize Councilmember Distelhorst Deemphasize: Funds allocated for a trolley could be reinvested elsewhere especially due to other transportation priorities and the availability of public transit. Councilmember Olson Deemphasize: Consider whether all boards and commissions are being utilized for the purposes they were established. For example, the Economic Development Commission did not weigh in on Walkable Main Street. If the City does not utilize a board or commission for the purpose they were established, is it good idea to continue to allocate resources? Even though boards and commissions are volunteer, there is related staff time. Council President Paine Deemphasize: Switch emphasis to hybrids or electric vehicles rather than a heavy reliance on gas vehicles. Those also tend to be smaller vehicles and may be less expensive. Councilmember L. Johnson Deemphasize: Consider reducing reliance on professional and consultant services. They are often used for urgent needs or when there isn't someone on staff with specific qualifications. Would the City be better served by having someone on staff to do some of those things? Is it possible that the money and time spent to procure professional services could be used to hire staff? The City may get more out of that and meet the needs before they become urgent. Councilmember K. Johnson Deemphasize: Finetune the budget. Taking a conservative approach, there are many small projects/programs funded that do not need to be funded such as the Commute Trip Reduction. Since no one is commuting, the City did not need to spend $30,000 to support that program. Instead of offering a fixed amount each month and/or purchasing ORCA passes, she suggested the City could have reimbursed employees for actual expenses and that would have been a minuscule amount. In addition there are three boards/commission with consultant staff. The consultant was originally provided when the board/commission was new, but now that the board/commission is established, the consultant staff is no longer needed. She suggested making minor adjustments could save a lot of money. Another expenditure Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 12 that could have been avoided was the $20,000 to make the WWTP bonds environmental. She often has many recommendations because she has taken a proposal by proposal approach to the budget to evaluate whether the money needs to be spent or if there was a way to do it for less. Mr. Bailey commented there were 26 priorities identified by Council, but far fewer items to deemphasize. He commented sometimes Councilmember do not want to identify something to eliminate because there is constituency for it and it is fundamentally more difficult to identify items to delete from the budget. However, that sets the Council up for a conversation in the fall regarding how to make the items fit into the budget so the administration can make recommendations to pursue the Council's priorities. Mr. Bailey recalled last year the Council spent a fair amount of time discussing the nature of policy goals versus how to get something done. This year many of the ideas are very focused on what would happen as result, the policy outcome. The nature of work done this year better reflects the role of the Council. As discussed last year, he referred to the analogy of putting ten pounds of potatoes (priorities) into a five pound bag (budget). He recommended the Council think about how to have that conversation constructively so the right things are included in the final budget. Councilmember Buckshnis said there is a safe driving mode on Zoom that she did not know about that provides only a microphone. She assured Councilmembers Olson and K. Johnson had expressed all her opinions. Although Councilmember K. Johnson stated the priority regarding transportation was hers, Councilmember Buckshnis said she agreed with it. Council President Paine declared a brief recess. Council President Paine relayed Councilmember Buckshnis will be listening and will provide her thoughts after the meeting. BUDGET PROCESS REVIEW DISCUSSION Likes. Dislikes. & Deadlines for 2021 Mr. Bailey said a lot of effort goes into setting up the conversations that happen in October and November that result in collective decision making. That is a difficult process and doing it remotely makes it even more difficult. Add to that the uncertainty related to resources as a result of the pandemic and it was very challenging. It is always good to review what worked well and what could have been improved. He recommended starting with a calendar for all participants. In his role as the Finance Director for several cities, he would have multiple calendars, one for the Council and community that illustrated what the Council's work would look like, when certain conversations would occur, when information would be provided, when check -ins would occur, when workshops would occur, etc. He asked if that had been done. Council President Paine answered it had not. Mr. Bailey recommended that be developed and said he encourages Councils to adopt that calendar so the Council's fingerprints are on it. Mr. Bailey invited Councilmembers to identify one thing that worked well and one thing that could be improved. Councilmember Distelhorst Appreciated Mr. Bailey's earlier comments regarding timeline and flow that mentioned establishing rules and procedures. With the help of City Clerk Scott Passey who developed a first draft, the Council is considering adopting Rules and Procedures. He did not recall anything specific to the budget in the document but agreed it was an opportunity to include reference to establishing a budget calendar. Developing a timeline would help improve the process. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 13 Councilmember L. Johnson Echoed Council President Paine's earlier comment about getting amendments in sooner rather than later. It helps the process, shows respect for the process as a whole, and gives other Councilmembers a chance to ponder, thoroughly vet and truly consider Councilmembers' amendment versus getting them at the last minute and not having an opportunity/time to thoroughly vet them. If amendments are provided early in the process, they can be considered holistically with the budget and other amendments. She wanted to give full consideration to all amendments, but doing it on the fly at a Council meeting is more challenging. Councilmember Fraley-Monillas As Council President last year, a date was established for amendments and reminders sent out, but at the last minute 24 amendments were submitted that no one had a chance to vet. She did not understand the purpose of that when Councilmembers had 2-3 months to submit amendments. That slowed the process and she estimated 95% of the amendments failed because there was not enough time to consider them. It is important to identify a drop dead date for amendments; procrastinating on amendments does not help the Council work as a team or move the City forward. Last minute amendments put staff on the defense trying to figure out how the amendments impact their department, the cost of amendments, etc. Another concern was questions were not asked of staff in advance and questions asked at the meeting put staff on the spot. This has happened in the past and it is very, very frustrating for all involved. What went well was identifying the Council's highest priorities utilizing community input that Councilmembers receive and the top 4-5 ideas were reflected in the budget. Councilmember Olson Establishing a calendar that identifies when input is due allows Councilmembers time to consider amendments. Rather than grouping amendments by Councilmember, suggest group them by budget line item so amendments are grouped by topic. That requires amendments be submitted early enough so the Council's Legislative Assistant can organize them. Council President Paine The Council operates better with deadlines; that is a commitment to ourselves. The dates do not need to be artificial but the deadlines need to be honored which includes allowing enough time for community input. Whether a biennial budget or a single year time budget, time commitments should be included in the Rules and Procedures and the Council should honor them. Last year, she liked having enough time to submit proposal for inclusion in the budget. Time dragged occasionally during last year's process and was not used as productively as it could have been. She liked the idea of a calendar. Councilmember Olson Commend administration on the timing of providing the budget to Council; that was very helpful to the process. Councilmember L. Johnson It was clear from the last budget retreat that the administration heard the Council's budget priorities and the budget reflected an early start to the priorities. Councilmember K. Johnson The Council did a good job last year of identifying priorities and getting them costed out and included in the budget. What did not work for her and has never worked for her was the long department presentations; a month of presentations before the Council is allowed to provide input. She suggested having all the presentations in one night, possibly at a special meeting. CIP/CFP public hearing are among the least attended Council meetings. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 14 Councilmember K. Johnson commented the Council did not do a good job reviewing the proposed budget; the Council knew what they wanted to add but not what they wanted to finetune which was why budget amendments occurred at the last minute. Amendments were submitted on deadline but it was designed in a way to fail. There needs to be less show and tell. From the date the budget is presented, that should be the ready set go; the Council does not need to spend a month on staff presentations. Councilmember Fraley-Monillas said last year the Council did not get a full report from each director like had been done in years past. Last year was only an overview from each department and identification of changes. Department budgets are generally the same year to year with the exception of one-time expenditures such as police vests or Public Works purchasing a vactor truck. She preferred the shorter presentations from staff and the ability for Councilmembers to communicate their interests. Council President Paine Council could review department budgets on separate nights, particularly departments with large CIP budgets, but that may not be helpful for the comprehensive budget. Councilmember Distelhorst Liked getting the budget from administration early and seeing Council priorities reflected in the budget. Public hearings are not the greatest venue for feedback; suggest in the future years having an early spring/summer public engagement process with the broader community. Councilmembers talk to community members, but there is an opportunity to expand that reach further. Councilmember K. Johnson Working on the Strategic Plan may not help with this year's budget but would loop in citizens and set priorities for fixture budgets. The Council needs to look at not just the upcoming budget cycle but from a long term perspective. Mr. Bailey said the frustrations expressed by Councilmembers are not unique. Finetuning things like how long staff presentations should be is helpful. Some level of presentation by departments is important and staff is anxious to share. He suggested creating a window of time wherein that can occur, 2-3 meetings, one long meeting, or a Saturday afternoon. Then staff can figure out how to say meaningful things within the window of time given. Budget public hearings are required but are not most meaningful way to get input from the community and he encouraged the Council to leverage other processes to gather input. As a peer reviewer, he looks at a lot of budgets, the ones that routinely have the best policy structure were the ones that leverage the Strategic Plan work. TWO YEAR BUDGET CYCLE Finance Director Dave Turley commented the first half of the retreat went the way he thought it would but the last half hour has been very eye opening, Councilmembers said things that surprised him, primarily because staff sees things from their perspective and Council sees things from their perspective and there are things that staff didn't realize. The budget calendar is on the long range agenda but the Council and staff has not done a good job week -by -week sticking to it. He was surprised the Council wanted fewer presentations from directors. Directors want to share information with Council because if they don't, they are afraid of being accused of not being transparent with the Council or the public. He commented if there is two hours allotted for a presentation on capital projects, directors spend a week putting those presentation together, it takes a lot of staff time to prepare presentations. He suggested including the information in the packet, not spending a great deal of time on presentations, and allowing Councilmembers to ask questions. Although she did not mean to discount Councilmember K. Johnson's perspective, Councilmember L. Johnson said some Councilmembers have not been on Council as long as others and have not had the opportunity to see numerous staff presentations. She was not necessarily in agreement with Councilmember Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 15 K. Johnson's comment about presentations. There may be area for finetuning but she appreciated continuing to have the presentations and staff providing information. Maybe it needs to look different but she did not want to eliminate it. Councilmember Distelhorst echoed Councilmember L. Johnson's comment, pointing out reading a PowerPoint or an agenda memo does not provide as much context and details. It is important to make that information available to the public in a more digestible manner such as a presentation. A presentation is a much friendlier way to provide information. If improvements can be made that is fantastic, but he did not want to go too far in the other direction. Councilmember K. Johnson said the Council has suffered death by presentation where directors have used it as an opportunity to showcase accomplishments, future plans, etc. and after two hours Councilmembers just want to know what is in the budget. She appreciated Councilmember Fraley-Monillas' approach last year where the presentations focused on changes. She liked the idea of having presentations on a Saturday. She disliked having presentations week after week without the ability for Council to ask questions. Council President Paine said she has not been slaughtered by the presentation style and there has been a lot of change in electeds and directors. She asked for input on having evenings devoted to specific departments' budgets. Councilmember Fraley-Monillas said that was a great idea, but not if there were a lot of other items on the agenda. The issue is not just the length of the departments' presentations, but everything else on the agenda that makes the process very cumbersome. Councilmember L. Johnson appreciated Councilmember K. Johnson's clarification and could see where she was coming from now. While she appreciated the director's presentations and would like them to continue, she agreed there were a lot of presentation before the Council had the opportunity for input. This is a very beneficial conversation; she suggested breaking up the presentations and allowing Council to provide input after each. Councilmember Olson appreciated Mr. Turley providing staff and the public's point of view regarding transparency. She was glad the Council had this conversation, observing there was a balance to be achieved. Councilmember Distelhorst preferred if a "budget day" was necessary, holding it on a weekday so staff was not giving up a Saturday. Councilmember K. Johnson asked if the idea of focusing on a department would be for presentations only or would Councilmembers have an opportunity to discuss the budget components as well. Council President Paine said there is a lot of air space in that idea. Councilmember K. Johnson expressed concern with the Council being in a listening mode for a month where they cannot provide input which results in urgency at the end of the process. There are different ways to accomplish and she recognized that directors like to explain their programs. The Council and staff need to think outside the box to figure out ways to accomplish what needs to happen without the compression at the end of November. Mr. Turley looked forward to talking with the Council over the coming months to improve the process. He understood Councilmembers do not want the minor details, but staff is afraid if they do not explain the reasoning, it will get cut from the budget. The administration has been working on the budget schedule for this year; last year the budget was passed on December 10' and the CIP/CFP was passed on December 17' This year's schedule anticipates passing the budget on November 23'. Last year the CIP/CFP was discussed in November/December; this year it is scheduled for October/November. He asked how much earlier the Council was interested in passing the CIP/CFP, noting some cities pass it in August. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 16 Councilmember K. Johnson suggested starting the review much earlier such as August. Mr. Turley asked if the target would be to pass it in October/November. Councilmember K. Johnson answered yes. Council President Paine agreed with that timeline and suggested also reviewing the salary ordinance early. Mr. Turley said the salary ordinance is scheduled for August. Councilmember Buckshnis said she stopped driving because this was her topic. She agreed with starting the CIP/CFP start sooner and suggested it could be kicked off by the Finance Committee. She agreed with having somewhat comprehensive staff budget presentations, but there should be an opportunity for Q&A and budgetary discussions after each presentation. Councilmember K. Johnson acknowledged the directors spend a lot of time putting together their presentations and often include pictures, PowerPoints and other information that is provided at the Council meeting but is not included in the packet in advance. She suggested there may be another vehicle for making presentations so the information is available. The past process where staff makes presentations and the Council is unable to ask questions impedes the budget process rather than assists it. Council President Paine offered to work with Mr. Turley on options for a timeline and calendar and present it to Council for discussion. Councilmember L. Johnson recognized Mr. Turley for hearing the Council and for his openness; it was refreshing and she appreciated it. Council President Paine agreed. Mr. Turley appreciated the Council's willingness to speak up. He recalled last year at the December 10' budget meeting the Council suggested grouping amendments by topic which worked much better. He summarized working together is the best way. Councilmember Fraley-Monillas recalled last year the Council was still working on budget amendments in mid -December. Legally the Council has until the end of the year to pass the budget. There has to be an agreement among Councilmembers regarding the deadline for submitting amendments and Councilmembers need to hold each other accountable to the date selected. Biennial Budgeting Process Mr. Turley explained according to MRSC, 55 cities in Washington have biennial budgets including most of the neighboring cities such as Bellevue, Bothell, Duvall, Kenmore, Kirkland, Lake Forest Park, Lynnwood, Marysville, Mill Creek, Mountlake Terrace, Redmond, Renton, Shoreline, and Stanwood. He is in favor of a biennial budget, explaining a biennial budget must start in an odd year so it cannot start with the 2022 budget. The Council would be talking this time next year about its first biennial budget, but that decision will need to be made well in advance. Mr. Turley said some common advantages of biennial budgets include it reduces the amount of time in the second year, freeing up time for projects, analysis, the CIP, long range planning, etc. It encourages Council and staff to think over multiple years rather than a one year cycle. Few things happen in 12 months and nearly everything has a long term impact. One of reasons a biennial budget starts in an odd year is in cities, it depoliticizes the budget process as the budget is adopted in non -election years. He was not saying anyone on the Edmonds City Council would do this, but some Councils may be prone to do campaigning as part of the budget process which is not appropriate. Mr. Turley explained disadvantages of a biennial budget include it take more time in the first year, but not much. For example, when he is forecasting revenues for next year, he is already forecasting revenues for Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 17 3-5 years. Things that seem like they will take more time really do not. For example large projects like Civic Park or the WWTP incinerator are multi -year projects and have to be taken into consideration whether it is a single year budget or a biennial budget. Another disadvantage is perceived loss of control by the legislative body since they are approving the budget for two years at a time. That is a common perception; Edmonds stopped doing a biennial about 10 years ago for that reason. He disagreed with that because the Council is able to act quickly, analyze data and make decisions. For example, a couple months ago, the Council agreed they could call a meeting on a Saturday if something needed to be done quickly. He did not believe there was a loss of control with a biennial budget; adjustments can be made to the Council's budget at any time. Mr. Turley said another disadvantage is it is more difficult to forecast revenues and expenditures. Although there is some truth to that because projections have to be made 2'/z years out, staff already does that. The fourth disadvantage is some jurisdictions spend too much time on budget amendments during the year, so they do not take advantage of the down time. That is a valid point, and it would be important to avoid it. Both Mayor Nelson and he support a biennial budget. He anticipated the first year would be a little rocky because it would be a big change system -wise, but he felt it was a good thing to go forward with. Councilmember Fraley-Monillas asked if the legislature does a biennial budget. Mr. Turley said yes, but June 30' is their fiscal year end. Mr. Bailey said he is a proponent of biennial budgets. He reviewed: • Biennial Budgets (RCW 35A.34) o Some thoughts about biennial budgets 1. Must implement in odd year ■ Law requires a decision by mid -year prior via ordinance 2. Benefits ■ More strategic - in all aspects (policy, operations, finance) ■ More work to budget - but you get the "off' year - Everyone gets the "off -budget year - Spend it wisely and intentionally ■ Easier to manage, once mature (for everyone) ■ Some political benefit in timing (not sure if this was intended, but... 3. Potential drawbacks ■ Concern over loss of control ■ It is more work (and more complicated) - Logistical issues (most of which can be addressed) ■ Difficulty in forecasting - Revenue forecasting - Expenditure forecasting ■ Tendency to abuse mid -biennium review - Use as tune-up - unless the environment changes substantially 4. Approaches to biennial budgets ■ Full 24 month appropriation ■ Two separate 12 month appropriations - But the second 12 months is appropriated ■ First 12 months appropriar3ed, second 12 months pending appropriation 5. Caution - be careful to avoid over complicating this - it will rob you of the benefits 6. Examples ■ Redmond - has been biennial budgeting for very long time. Full biennium (24 months) very mature model Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 18 Lynnwood — I was Finance Director when we went to biennial. It was messy but okay. Got better, now good Renton - overcomplicated the mid biennium review. Reverted to annual, then reverted back to biennial Seattle - biennial budget but only appropriates l' year. Not very efficient but then it is Seattle Mr. Bailey commented the good news is Edmonds is early in process, the jurisdictions highlighted above had these conversations much later in the process and put unnecessary pressure on themselves to accommodate a biennial budget. The Council can begin thinking about a biennial budget now, and practice by considering the second year as they adopt the 2022 budget. The biggest change will be thinking about the budget in a two year perspective rather than an annual budget and not giving short shrift to the second year. Council President Paine asked what Mr. Bailey meant when he said changing to a biennial budget is messy. Mr. Bailey answered Councilmembers can get bogged down in the details regarding estimates. Some things like large projects are not different. He suggested Councilmembers not get bogged down in things like sales tax trends coming out of the pandemic, round numbers and generalizations will serve the Council well and they generally will be pretty close. With respect to cities who already have a biennial budget, Councilmember L. Johnson asked whether the COVID crisis complicated things for them or could significant adjustments be made. Mr. Bailey said having a good working culture is important; the pandemic was disruptive for annual and biennial budgets. He recalled about a year ago there were debates about how badly sales tax revenues would be impacted and now it is surprising how robust it has remained. It is important to have confidence in the team to communicate with the Council when things may move off the tracks. Mr. Bailey recalled he was in Redmond during the Great Recession; a communication mechanism was created whereby staff communicated monthly with Council and the community regarding finances. Mr. Turley commented last summer, staff had little idea of the effect COVID would have on the budget. The City was doing a one year budget and did not have any advantage over cities doing a 2-year budget. Councilmember K. Johnson explained the last time Edmonds had a biennial budget, the City was faced with the Great Recession and had to return to an annual budget due to layoffs, furloughs, restricted revenues, etc. Coming out of the Great Recession, the Long Range Financial Planning Group was created to look at revenues, expenditures and investments long term. In addition, the Finance Committee developed financial policies. The City is in a much better position financially. Edmonds has shown during the pandemic that it is pretty stable and can rely on revenues that are not as impacted as the national economy. Mr. Turley agreed the City has more robust policies in place and is in a much better position now to have uncertainty in the forecast than it was 10-12 years ago. He gave a lot of credit to past Councils for that. Councilmember Distelhorst asked the average amount of time to do a biennial budget, commenting if a one-year budget takes three months, he did not envision a biennial budget would tax six months. He recognized the benefit of having time the second year to work on other priorities. Mr. Bailey suggested adding 30-40% more time to the process for a biennial budget. Councilmember Buckshnis said the concept of a biennial budget has been discussed for a long time. She supports having a biennial budget because it assist with long range planning. She pointed out the need for an Assistant Finance Director as a biennial budget will require more finance staff. She agreed the first biennial budget may take 4-5 months but it gets easier. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 19 Council President Paine asked if looking at the CIP this year with a 2-year timeframe would be helpful or a waste of time. Mr. Bailey said the City adopts a 6-year CFP and appropriates the projects that are moving forward in the first year of the CIP. Looking at the CIP with a 2-year timeframe would be an interesting way to practice and it would dovetail with the Council's interest in having adequate time to review the CIP before adopting the ordinance. He suggested having Mayor Nelson, Turley and their teams consider how that would work, possible dates, etc. and see if it adds value to the process. Councilmember Buckshnis said the utility funds use the CIP for three years. She commented Council President Paine's suggestion to look at the CIP this year with a 2-year time frame was an interesting concept that she would think about that. Whether the City has an annual or biennial budget, Councilmember K. Johnson recommended using the budget process for major expenditures rather than the budget amendment process. There should be some flexibility in the budget for things like the LEAP program during COVID but the mini excavator should have been part of the budget and not an amendment. The Council should set policy/guidelines for what is appropriate for including in the budget and what is appropriate for a budget amendment. Council President Paine said some of the amendments have been proposed due to a better understanding of the City's finances post crisis and being more comfortable with bringing things back into budget. Mr. Turley said approximately three -fourths of the changes made to the budget last year were COVID related, for example the CARES fund money and how it was expended, the LEAP program, etc. With an annual budget, there are carryforwards every year because projects that were not completed and not budgeted in the second year have to be brought forward. Council President Paine asked about this year's budget amendments, some of which would have been included in the budget such as the mini -excavator. She recalled that was on a wish list and was funded when funds were available. Mr. Turley said that would require further discussion. One of the amendments was to implement the effects of labor contracts which is something that cannot be anticipated. With regard to budget amendments, he did not want Finance to drive operations. He agreed with Councilmember K. Johnson that there should be a policy regarding what should be proposed via budget amendments. Mr. Bailey said over time amendments can become a work -around the budget which is the reason for a policy. For example in Redmond, once the budget was adopted, department heads began making budget amendments for items that were not included in the budget that they thought should have been. One of the first policy recommendations he made to the Redmond Council in 2008 was if something didn't get approved in the budget, the amendment process was not a way to get it. Council President Paine acknowledged otherwise the Council is doing the budget all year long. DO WE HAVE TO HAVE A 2ND BUDGET MEETING THIS YEAR TO REDEFINE PRIORITIES? Council President Paine asked whether Councilmembers wanted to have a second budget meeting this year to redefine priorities. Councilmember Distelhorst said going through the priorities again would not be helpful to him until there was something to react to. Council President Paine answered a budget retreat did not have to be about priorities, it could be to look at the CIP with a 2-year timeframe or any other structure that Councilmembers were interested in. She suggested Councilmembers think about and get back to her. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 20 Councilmember Fraley-Monillas agreed with Councilmember Distelhorst, she was not interested in another retreat unless there was something to discuss relevant to this year's budget. She was disappointed the Council did not have just a regular retreat instead of a budget retreat as there are a lot of things that the Council could be discussed in a regular retreat. Councilmember K. Johnson asked how Council President Paine envisioned the Council would move toward a collective hierarchy of priorities. Council President Paine said the top priorities could be summarized from the minutes and Councilmembers could vote on their top four. Councilmember K. Johnson suggested the priorities that Councilmembers identified may need to be fleshed out such as the cost. Council President Paine said that would be up to the Councilmember making the proposal. Councilmember K. Johnson agreed, along with working with the administration. WRAP UP Mr. Bailey offered closing remarks: be careful not to over complicate it, stay at the policy level and appreciate that it is difficult. Councilmember K. Johnson thanked Mr. Bailey and Mr. Turley. Budgeting is a team sport and we all need to work together and develop a good product with good communication. Councilmember Distelhorst said there was a lot of productive discussion and having Mr. Turley relay what he heard was very valuable. He thanked Mr. Bailey, Mr. Turley and Councilmembers for spending their Saturday afternoon. Councilmember L. Johnson expressed her appreciation to Mr. Turley and Mr. Bailey and to Council President Paine for putting this together. It was a very productive meeting and provided her a lot to think about. Council President Paine said she had a lot of anxiety putting this retreat together but had enjoyed the conversation. She appreciated Mr. Bailey and Mr. Turley for attending and adding their expertise to the discussion. She liked the idea of a biennial budget. She appreciated everyone's thoughts and comments. Things that need to be done include developing a budget calendar, a way to prioritize items and fleshing out some of the priorities. Councilmember K. Johnson thanked Council President Paine for doing an excellent job, for keeping a neutral tone and allowing everyone the opportunity to speak on every topic. It is her personal opinion that the budget is the most important thing the Council does every year. Council President Paine wished all a Happy Mother's Day. 6. ADJOURN With no further business, the Council meeting was adjourned at 4:40 p.m. Edmonds City Council Retreat Approved Minutes May 8, 2021 Page 21