Loading...
20180609 CIty Council RetreatEDMONDS CITY COUNCIL RETREAT APPROVED MINUTES June 9, 2018 ELECTED OFFICIALS PRESENT Dave Earling, Mayor (9:47 — 10:25 a.m.) Michael Nelson, Council President Kristiana Johnson, Councilmember Thomas Mesaros, Councilmember Adrienne Fraley-Monillas, Councilmember Diane Buckshnis, Councilmember Dave Teitzel, Councilmember Neil Tibbott, Councilmember STAFF PRESENT Jeff Taraday, City Attorney Jeannie Dines, Recorder 1. INTRODUCTIONS AND GREETINGS (Includes nurnose of this meeting, as well as intended outcomes) The Edmonds City Council meeting was called to order at 9:04 p.m. by Council President Nelson in Room 302, Frances Anderson Center, 700 Main Street, Edmonds. COUNCILMEMBER JOHNSON MOVED, SECONDED BY COUNCILMEMBER TIBBOTT, TO APPROVE THE AGENDA. MOTION CARRIED UNANIMOUSLY. Mike Bailey introduced himself and described his background. Councilmembers introduced themselves. Council President Nelson explained this was an opportunity to get together as a Council, narrow the scope of the retreat to the budget and determine whether the Council was interested in introducing budget ideas earlier, rethinking the Council's role in the budget and having influence on the budget. His hope for the retreat outcome was to look at the budget differently and collectively and to increase the Council's role in the budget. He anticipated there would be a future public meeting with Council, administration and staff. Discussion followed regarding the Council's responsibility for the budget, how the budget has been developed in the past, funding the Mayor identified in the 2018 budget address for Civic Park that had not been allocated via the budget process, "surprises" that occur due to the Council presenting its priorities after the budget is presented, and the need for long range financial planning for roads, capital projects, etc. in addition to operating. Councilmembers and Mr. Bailey identified and discussed the following topics of interest: • Biennial budget cycle • Fund balance (labels) • The plan - communicate o The "official" budget ■ Admin flexibility • Fund within a fund Edmonds City Council Retreat Approved Minutes June 9, 2018 Page 1 2. BUDGET BASICS — ROLES AND RESPONSIBILITIES • "Budgeting is A Team Sport" Mr. Bailey explained the budget is one of the Council's responsibility in partnership with other team members. Adopting a budget is more than sources and uses of money, it is managing the day to day as well as figuring out how to get from where we are today to where we want to be at a certain point and remaining financially responsible during that journey. A long range financial plan is more than numbers on a page, it is a strategy for what we want to accomplish — services, facilities, etc. — in the coming budget year and beyond. Discussion included establishing and reviewing budget goals as part of the budget process, budgeting by priorities, and tensions that occurred during the 2018 budget process. • Legislative and Administration Roles for A Successful Outcome • Policies Mr. Bailey commented on establishing policies related to fund balance, investments, etc., and characterized financial policies as "guardrails." He relayed the Government Financial Officers Association's (GFOA) policy regarding fund balance is a minimum of two months but it should be based on a city's circumstances. For example, Redmond's fund balance policy is 8.5% (catastrophic loss reserve) + 4 (economic stabilization) = 12.5%. He described the Council's responsibility for: 1) Financial policies • Policy is more about the "what" and less about the "how" • It is important to write down policies and to reach the right policy for the City at the time ■ Council begins the budget process by reviewing policies; revisiting policies reminds everyone they exist • When an issue arises, make a note that a policy needs to be developed regarding that issue and go back to it later 2) Goals (direction, service levels) • Creating a target allows evaluation of whether/how it was achieved • Budget is what, why and for who • Start with broad goals • Administration will have goals as well Council comments and discussion included the Finance Committee's efforts to update the City's financial policies, the City's current fund balance policy, Councilmembers' disagreement regarding the fund balance policy, the need for a capital plan to address roads and buildings, admin/staffs implementation of Council goals, the budget as a team process, ensuring goals are reasonable, how Council goals are introduced, and what happens when there is disagreement between Council and administration with regard to goals. Mr. Bailey provided a sample budget chronology (months in parenthesis are Redmond's practice): 1. Council: Review financial policies (March) a. Fund structure b. Develop and adopt a budget calendar (March) i. Staff also develops a calendar and Finance has an internal calendar 2. Goals a. Council (April/May) — informs development of budget b. Admin (April/May) 3. Administration: Prepares budget utilizing budget instructions that include Council goals a. Proposed preliminary budget - initial estimate (July -September) Edmonds City Council Retreat Approved Minutes June 9, 2018 Page 2 i. Includes how budget responds to Council goals ii. Required by RCW to be filed with City Clerk by a certain date (Mr. Bailey recalled it was September; RCW35.33.051 states on or before the first business day in the third month prior to the beginning of the fiscal year of a city) b. Council and Administration: Preliminary budget — balanced (November 1) 4. Council Workshops a. Opportunity for Council to familiarize themselves with budget b. Opportunity for Council to identify goals not addressed in preliminary budget c. Balance Council requests for funding 5. Council: Adopt a budget (appropriations and FTEs) 6. Council and Administration: Review With regard to budgeting in response to Council goals, Mr. Bailey suggested one option is to establish goals and identify which departments respond to them (via a decision packa e) using a matrix: Goal I e artment Parks Public Works Mayor Dev Sery Police Etc. ABC X X XYZ X 123 X 456 X X Mr. Bailey relayed Renton holds two retreats, 1) the leadership team develops ideas which are shared with the Council, and 2) Council and the leadership team finalizes the ideas into joint goals. Renton has six goals with objectives under each; the goals are displayed throughout City Hall. The goals are used to inform the budget as well as the Comprehensive Plan, CIP/CFP, etc. Mr. Bailey described the requirements for a biennial budget: 1) adopt a policy (ordinance) by mid -year of the prior year, 2) mid -biennium review (includes amendments), and 3) the first year must be an odd year. He explained once everyone is comfortable with the process, a biennial budget allows everyone to think about "the plan" over a two-year period, goals are two year, and it saves time. Discussion included the process of establishing goals, the number of goals that can reasonably be established, developing a financial policy that describes how project under -expenditures and/or unused management reserves are used, the biennial budget process, pros and cons of a biennial budget, opportunity to do capital planning in the off -budget year in a biennial budget, and administrative support required for biennial budget process. 4. LUNCH — Working Lunch — 11:30 • Policies (con't) Mr. Bailey continued his review of the Council's responsibilities: 3) Appropriation • Via ordinance adopting the budget o When adopted at fund level, allows for admin flexibility o Can include provisos/policy direction 4) Review - how does budget achieve goals ■ Financial • Programmatic • Tool for asking staff how goals are being achieved • 1-2 times/year schedule review of goals on agenda Edmonds City Council Retreat Approved Minutes June 9, 2018 Page 3 Discussion included how to fund Council goals, examples of admin flexibility, balancing Council requests at the time of Council workshops, ways to fund new requests such as a youth commission, Council allocation of FTEs and positions, set aside in the budget via the Mayor's budget message for Civic Park (fund within a fund), establishing appropriation levels, establishing a structure for sharing information to ensure Councilmembers feel informed about amendments to the preliminary budget, identifying in the budget calendar a date by which Councilmembers must propose amendments, (Redmond requires Councilmember propose amendments by the second budget workshop), informing administration of the Council's priorities and asking administration to propose how to fund (i.e. a youth commission), ability for the Council to amend a job description to include a function but preference for a dialogue with administration regarding how to fund/staff a function, understanding reasons/aspects of projects where cost increases occur, and establishing a financial policy regarding how unexpended funds in a project are used. Mr. Taraday suggested the Council consider a comprehensive re -adoption of all fund proposes. 3. HOW WERE PAST STRATEGIC PLANNING/BUDGET EFFORTS RECEIVED BY THE COUNCIL? • Councilmembers Put Forth Budget Items That Each Member Would Like to Pursue (Includes Short and Long -Term Projects) Exercise: Councilmembers were asked to identify goals they would ask the administration to respond to in preparing the preliminary budget for Council consideration (project, process oriented, service level, etc.): Capital investment to address homelessness in Edmonds • Pedestrian Safety — Admiral Way Crosswalk • Edmonds school safety • Civic Field construction • Arts Corridor construction • Reserve Fund fully funded • High priority - short walkways • Design and implement 4" Ave Cultural Corridor • Restore ecological function of the Edmonds Marsh • Create historic district for downtown Edmonds • Focus on the development code • More focus on diversity education • More focus on the environment • South County Mayor Homelessness Project • Add 10 hours/month contract staff for Diversity Commission to get work done r New budget process • Create a new budget calendar approved by Council • Community/senior center funded • Meet renewable energy goals • Safer streets for pedestrians and vehicles • Start Hwy 99 improvements • Maintain or improve tree canopy • Restore salmon runs • Protect stream corridors ■ Review budget funds • Street safety projects • Attract additional high-tech businesses • Single use plastic reduction Edmonds City Council Retreat Approved Minutes June 9, 2018 Page 4 • Additional off leash dog park • Rebuild waterfront center parking lot • North and east Edmonds branding program • Yost Pool replacement • Art district designation application completed • Protect our neighborhoods (land use) Mr. Bailey suggested a future meeting to develop 3-4 succinct goals to provide to administration to be addressed in the budget, noting the creation of goals provides the ability to assess progress on those goals. He also suggested the Council adopt the goals via resolution with a statement for each describing the result the Council wants to achieve. Capital projects are addressed via a similar but separate process. Redmond presents and adopts a capital budget prior to the budget process. The above goals were preliminarily grouped as follows: • Environment • Pedestrian Safety • Improve fiscal management budget process • Land Use Next steps: • Study session to flesh out goals • Draft and adopt resolution with goals • Adopt Council budget calendar. Discussion included Council versus staffs role in budgeting, developing a budget calendar, Finance Committee discussing the process of converting to a biennial budget, ordinance language versus financial policies, providing enough specificity in the goal statement about results the Council wants to see on goals, Councilmembers submitting sample results statements, developing a draft resolution, issues to be addressed in financial policies, and Renton's budget as a good example. Council President Nelson thanked Mr. Bailey for helping guide the Council to a successful future budget process. 5. CONTINUE DISCUSSION ON COUNCIL RECOMMENDED BUDGET ITEMS • Begin Prioritizing Budget Items 6. CONTINUE COSTING EXERCISE FOR PRIORITIZED BUDGET ITEMS 7. DRILLING DOWN TO WHAT COUNCIL WANTS TO COMMUNICATE TO THE ADMINISTRATION AS IT RELATES TO THE UPCOMING BUDGET 8. WRAP-UP/NEXT STEPS • Communicating out on This Meeting 9. ADJOURN With no further business, the Council retreat was adjourned at 2:00 p.m. DAVI �4EARLIG,YOR I PASSEY, CIiY RK Edmonds City Council Retreat Approved Minutes June 9, 2018 Page 5