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