11/09/2002 City CouncilEDMONDS CITY COUNCIL APPROVED MINUTES
Budget Workshop
Saturday, November 9, 2002
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`l' Avenue North, Edmonds, followed by the flag salute.
ELECTED OFFICIALS PRESENT
Dave Earling, Mayor Pro Tem
Dave Orvis, Council President Pro Tem
Jeff Wilson, Councilmember
Michael Plunkett, Councilmember
Lora Petso, Councilmember (arrived 9:58 a.m.)
Richard Marin, Councilmember
Deanna Dawson, Councilmember
ELECTED OFFICIALS ABSENT
STAFF PRESENT
Tom Tomberg, Fire Chief
David Stern, Chief of Police
Duane Bowman, Development Serv. Director
Stephen Clifton, Community Services Director
Peggy Hetzler, Administrative Services Director
Arvilla Ohlde, Parks and Recreation Director
Noel Miller, Public Works Director
Brent Hunter, Human Resources Director
Joan Ferebee, Court Administrator
Gary Haakenson, Mayor Sandy Chase, City Clerk
Jeannie Dines, Recorder
1. PRESENTATION BY ALL CITY DEPARTMENTS OF PROPOSED BUDGET
Mayor Pro Tem Earling explained today's meeting would be a report by the Directors regarding their
proposed staff and budget cuts as well as staff or budget items they would restore if additional funding
was available. Mayor Pro Tem Earling advised another Budget Workshop was scheduled at the
November 12 Council meeting and requested four Directors be prepared to provide a line -by-line review
of their budget. At the November 19 Council meeting, the remaining five Directors would do the same.
He also announced public hearings were scheduled on November 19 and 26. He was hopeful the 2003
budget could be adopted by the December 3 Council meeting.
(A) POLICE DEPARTMENT
Chief of Police David Stern provided a summary of the cuts proposed for the Police Department budget
which totals $567,288:
• $ 75,000 in vehicle cost reductions
• $ 74,000 from transferring jail costs to the Criminal Justice Fund 007
• $ 15,000 cut from the Travel/Training budget
• $ 27,280 - three part-time Police Cadet positions
• $ 19,243 - one part-time Administrative Assistant position
• $ 6,936 - four Reserve Officer positions (currently vacant)
• $108,808 - one full-time Staff Assistant and the Administrative Supervisor
• $ 90,238 - the Crime Prevention Unit including two part-time and one full-time positions
• $129,718 - two Police Officer positions (backfilled with the D.A.R.E. Officer and the Sergeant
from the Youth Services Unit)
• $ 21,065 - Animal Control Officer (thereby eliminating Parking Enforcement as well)
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November 9, 2002
Page 1
Police Chief Stern described the basis for the proposed cuts and the impact the cuts would have on the
Police Department and the community. If funding were available to restore positions, his priority would
be to restore the commissioned officers followed by the Crime Prevention and Youth Services Units.
(B) DEVELOPMENT SERVICES DEPARTMENT
Development Services Director Duane Bowman described the responsibilities of his department and the
basis for the proposed cuts. He reviewed the cuts proposed which equate to five FTE:
• Elimination of one Building Administrative Assistant position
• Elimination of one Engineering Inspector position
• Elimination of the Receptionist/Administrative Assistant position (a job shared position)
• Elimination of the Accounting Coordinator position
• Elimination of the Assistant Planner position
If funding were available to restore positions, Mr. Bowman recommended the Receptionist/
Administrative Assistant position be restored. He briefly described the impact the proposed cuts would
have on the department and the community. Mr. Bowman indicated he had some ideas for potential
revenue sources.
Mayor Pro Tem Earling recommended any potential revenue sources be provided via memo to the
Council prior to the November 12 Council meeting including the source and the funds that could be
generated. Mr. Bowman clarified the cost of the Receptionist/Administrative Assistant position was
approximately $58,000.
Mr. Bowman was asked to provide further information regarding why plan checking fees in 2003 were
projected to be down and the amount of revenue generated via permit fees compared to the amount of
staff's costs that were covered.
(C) MUNICIPAL COURT
Court Administrator Joan Ferebee reviewed proposed reductions:
• $2,080 reduction in Clerk overtime by providing comp time instead
• $208 reduction in benefits as a result of reduced overtime
• $1,920 reduction in supplies
• $3,120 reduction in travel
• $100 reduction in rental
• $300 reduction in repairs and maintenance
• $400 reduction in miscellaneous (manuals, booklets, etc.)
• $1,000 reduction injury costs
• $25,000 reduction in hours of four part-time employees (two bailiffs and two file clerks)
Municipal Court Judge Jim White advised if funding were available, he recommended the part-time
personnel budget be restored. He briefly described a funding request that had been transferred to the
Criminal Justice Fund for a used laptop and increased interpreter costs.
(D) HUMAN RESOURCES DEPARTMENT
Human Resources Director Brent Hunter reviewed proposed cuts in his department:
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November 9, 2002
Page 2
• $6,105 reduction in the Human Resources Receptionist hours (from 20 hours/week to 16
hours/week)
• $1,250 reduction in civil service expenses (physical/psychological exams) for new Police and
Fire hires
• $2,550 reduction in recruitment costs — supplies printing and advertising
• $1,640 reduction in repairs, travel and miscellaneous
• Total: $12,345 in cuts
If funding were available to restore positions, Mr. Hunter recommended the Receptionist's hours be
restored followed by funding for civil service expenses.
(E) FIRE DEPARTMENT
Fire Chief Tom Tomberg reviewed the proposed cuts to the Fire Department budget, explaining the
following cuts totaled $229,918:
• Eliminating Fire Reserves
• Eliminating a 20 hour Administrative Support position
• Eliminating the Fire Inspector/Investigator position
• Eliminating Three Firefighter positions (net loss of two as one position filled by the Fire
Inspector)
When the Mayor made a further request for cuts, Chief Tomberg advised the position of Assistant Fire
Chief Position was eliminated. Chief Tomberg described the basis for the proposed cuts and the
consequences of eliminating these positions. If funding were available to restore positions, Chief
Tomberg recommended the Assistant Fire Chief position be restored.
Chief Tomberg responded to Council questions including the cost of the Reserve Program versus the
support they provide, the possibility of establishing a volunteer Reserve Program, and the actual cost of
eliminating Firefighter positions due to overtime required to fill those shifts. Chief Tomberg estimated
the cost of restoring the Fire Inspector and Firefighter positions at $177,000.
(F) PUBLIC WORKS DEPARTMENT
Public Works Director Noel Miller described the services provided by the Facilities Maintenance
Division within the Public Works Division and proposed the following:
• Elimination of one Worker I position
• Elimination of one Custodian position
Mr. Miller described the increase in square footage of City -owned buildings and the impact of the
proposed reductions in building maintenance staff.
Next, Mr. Miller described current staffing levels of the Street/Drainage Division within the Public
Works Department and proposed the following:
• Elimination of one Street Worker position
Mr. Miller commented there may be other opportunities for increased revenue for streets but it would
require legislation to enact. He described the impact of the proposed reduction in street staff. If funding
were available to restore positions, Mr. Miller recommended the custodial position be restored due to the
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November 9, 2002
Page 3
versatility of that position. He estimated the cost at $40,000. Mr. Miller was asked to determine how
much of the custodial cost was recouped in rental fees.
(G) PARKS AND RECREATION DEPARTMENT
Parks & Recreation Director Arvilla Ohlde reviewed the public benefit provided via Parks & Recreation
and the result of the budget cuts in the Parks & Recreation Department:
• Reduction in Yost Pool operation from 13 weeks to 9 weeks
• Elimination of the Beach Ranger patrols
• Reduction of part-time recreation support staff/supplies
• Elimination of part-time clerk and evening staff at Frances Anderson Center
• A one-third reduction in flower baskets
• Planting only half of corner parks with annual flowers
• Reduction in level of service in parks
Ms. Ohlde described the programming the Parks & Recreation Department endeavored to retain. If
funding were available to restore positions/programs, Ms. Ohlde recommended restoring the
environmental education program from which $17,000 was cut followed by restoring the $25,000 cut for
part-time labor. Ms. Ohlde acknowledged the revenue from a potential implementation of a utility tax on
stormwater could be used to fund this program. Discussion followed regarding donations to the flower
program and the intent of the proposed reduction in the Yost pool hours to operate the pool during the
highest revenue -generating period.
It was suggested consideration be given to increased pool fees. It was also requested staff research
whether improvements to Frances Anderson Center and the Meadowdale Clubhouse could be funded
from Fund 125.
(H) COMMUNITY SERVICES DEPARTMENT
Community Services Director Stephen Clifton explained there were two employees in the Department, a
Director and one Executive Assistant, thus costs were somewhat fixed as 86% were represented by
salary, benefits and overtime. He reviewed proposed cuts in the Community Services Department
budget:
• $600 reduction in supplies
• $1,800 reduction in rental/lease
• $1,120 for miscellaneous and travel
• Total: $4,280
Mr. Clifton indicated these were reductions the Community Services Department could live with and
would not need restoration if additional funds were identified.
(I) ADMINISTRATIVE SERVICES DEPARTMENT
Administrative Services Director Peggy Hetzler described the services provided by the Administrative
Services Department and reviewed the cuts proposed:
• Elimination of one Staff Accountant position
• Reduction of the Accounts Payable position to 30 hours
• Elimination of the Software Specialist position in Information Technology
• Elimination of the Office Assistant position in the City Clerk's Office
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November 9, 2002
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Ms. Hetzler described the impacts of the proposed reductions. When asked regarding her priorities for
restoration, she indicated the Administrative Services Department would live with the proposed cuts.
She requested consideration be given to a temporary budget to hire consultants or temporary employees
to assist with the financial system conversions and to complete the bond issues. When further inquiry
was made regarding positions to be restored if funds became available, Ms. Hetzler recommended the IT
(Software Specialist) position be restored, acknowledging there may be a preference to restore the Office
Assistant (Receptionist) position, particularly as other departments have indicated their plans to transfer
their receptionist duties to the first floor receptionist. Discussion followed regarding the possibility of
retaining staff for 3-4 months to complete projects with the knowledge that layoffs would occur in 2003.
City Clerk Sandy Chase described the duties of the Office Assistant who provides reception on the first
floor. The cost of this position was estimated at $41,000.
Mayor Pro Tem Earling requested four Directors offer to make a more detailed presentation/answer
questions at the November 12 Council meeting.
2. DISCUSSION OF POTENTIAL REVENUE INCREASES
Mayor Pro Tem Earling invited the Council to comment on the following revenue sources:
Property Tax Recapture
Mayor Pro Tem Earling explained the City had 5.3% banked capacity that may be authorized in 2003.
This would generate approximately $375,000 in additional revenue and the annual impact on the average
residential user/business was $28.
Council President Pro Tem Orvis indicated he would support an increase no higher than CPI or
approximately 1.8%. Councilmember Plunkett expressed his support for recapturing the entire banked
capacity. Councilmember Dawson preferred an election if there was a desire to increase the property tax
higher than 1%. Ms. Hetzler indicated the cost of a special election was $60,000 — $70,000. She
confirmed an election in 2003 would not allow the City to collect an increased property tax until 2004.
Councilmember Petso preferred the City stop inventing ways to tax citizens and determine whether
property taxes were the appropriate way to generate revenue versus instituting other taxes. As she had to
leave the meeting early, Councilmember Petso voiced her opposition to the Business License Fee and the
utility tax on stormwater.
Councilmember Marin expressed his support for recapture of some portion of the banked capacity such
as 1.8%. Mayor Pro Tem Earling commented recent initiatives have indicated taxpayers will accept
property tax increases of 1%.
1% Allowable Property Tax Increase
This increase was acceptable to all Councilmembers.
Business License Fee Based on Number of Employees
Mayor Pro Tem Earling explained this new structure would generate $200,000 — $300,000 and the annual
impact on an average business would be $105 to $200. Councilmembers Marin, Dawson, and Wilson
indicated they were opposed to this proposal.
Utility Tax on Solid Waste — 6%
Mayor Pro Tem Earling explained a 6% utility tax on solid waste would generate approximately
$270,000 and the annual impact on an average residential user/business would be $31 year.
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November 9, 2002
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Councilmember Marin was supportive of a 2% utility tax. Council President Pro Tem Orvis commented
the utility tax on solid waste, franchise fee on Olympic View Water District and utility tax on stormwater
may allow restorations in the Police and Fire Departments.
Responding to questions, Ms. Hetzler confirmed most other cities collected a utility tax on solid waste.
Franchise Fee on 013Wic View Water District
Mayor Pro Tem Earling explained a franchise fee on Olympic View Water District could generate
$100,000 - $200,000. Ms. Hetzler advised only preliminary discussions have been held with Olympic
View Water District. Staff was asked to determine how much of the district the City would assume if it
assumed the Olympic View Water District so as to determine the potential revenue. Councilmember
Marin favored beginning negotiations as soon as possible.
Utility Tax on Stormwater
Mayor Pro Tem Earling explained the potential revenue that could be generated from this source was
$80,000 and the annual impact to the average residential user/business was $5.00. Councilmember
Marin did not support this proposed revenue source as there had recently been a 43% increase in
stormwater rates.
3. OTHER
Councilmember Dawson suggested consideration be given to reducing the balance in the Council
Contingency Fund. Councilmember Marin agreed.
Councilmember Wilson recommended staff determine the true cost of providing services and ensure all
costs were incorporated into fees.
With no further business, the Budget Workshop was adjourned at 11:23 a.m.
EV. moi
,AKENSON, MAYOR
SANDRA S. CHASE, CITY CLERK
Edmonds City Council Approved Minutes
November 9, 2002
Page 6
AGENDA
EDMONDS CITY COUNCIL
Council Chambers, Public Safety Complex
250 511 Avenue North, Edmonds
9:00 to 11:00 a.m.
Special Saturday Meeting
NOVEMBER 912002
WORK SESSION ON THE 2003 BUDGET I
1. Presentation by All City Departments of Proposed Budget
(A) Police Department
(B) Development Services Department
(C) Municipal Court
(D) Human Resources Department
(E) Fire Department
(F) Public Works Department
(G) Parks and Recreation Department
(H) Community Services Department
(1) Administrative Services Department
2. Discussion of Potential Revenue Increases
3. Other
ADJOURN
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