HomeMy WebLinkAbout02/08/1999 Work Session
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MINUTES OF THE WORK SESSION MEETING OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, FEBRUARY 8,1999
The city of Springfield council met in work session in the Library Meeting Room, 225 Fifth Street,
Springfield, Oregon, on Monday, February 8, 1999, at 6:00 p.m., with Mayor Maine presiding.
ATTENDANCE
Present were Mayor Maine, Councilors Ballew, Fitch, Hatfield, Leiken, Lundberg and Simmons. Also
present were Budget Committee Members, City Manager Michael Kelly, Assistant City Manager Gino
Grimaldi, Senior Management Analyst Rosie Pryor, City Recorder Julie Wilson and members of the
staff.
Mid- Year Bud2:et Review Presentation.
Finance Director Bob Duey introduced this item. He presented a mid-year update of the FY 1998/99
budget. The meeting is intended to provide the City Council and members of the Budget Committee
with information regarding accomplishments made by the city toward achieving City Council goals, an
update of the city's current financial situation, Long Range Financial Projections, and mid-year
adjustments.
1. Current Update
A. 1998 Accomplishments
Finance Director Bob Duey and Senior Management Analyst Carl Burgdorfer discussed the
accomplishments for the past year, history and current budget updates and activities. Mr. Burgdorfer
reviewed in detail the council goals, Attachment L of the staff report, along with history of past budget
activities and impacts. The goals are as follows:
Top Priority Five Year Goals
Fiscally Sound, Stable City Services
Expansion of the Springfield Economy
Safe Community for People
Quality Services, Responsive to Citizens
High Priority Five Year Goals
Renaissance for Downtown
Partnership with Citizens and Public Agencies
Preservation of Our Small Town Character
Top Priority One Year Targets
Glenwood Direction
Gateway Development Direction
Community Conversation / Healing: Action Plan
Community Policing: Expansion
Mill Race: Direction
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High Priority One Year Targets
Downtown Direction
Comprehensive Plan: Periodic Review
Citizen Involvement Action Plan
Public Buildings / Civic Center: Action Plan
Jasper Extension: Completion
Gold Stars, Attachment A, summarizes 1998 work activities highlight progress toward achieving
City Council goals. They are:
Operate a fiscally responsible and financially sound city government.
. Received recognition from the Government Finance Officers Association of the United States and
Canada for Excellence in both financial reporting and budgeting processes.
. Retained A/A rating from Moody's and Standard and Poor's - affirming sound financial
management practices.
. Completed implementation of initial components of a new financial software package; secured a
replacement for the budget component at nominal additional cost.
. Exceeded the return of the Local Government Investment Pool by 18 basis points on the portion of
the city's portfolio invested outside of the state pool.
. Completed the selection of and the transfer of funds to Wells Fargo as the new Retirement Plan
Investment Manager.
. Reached agreement with the Springfield Police Association to extend the current labor contract
without extended, costly bargaining.
Create a safe community using a preventative approach working with citizens.
. Assessed, treated and evacuated victims of the Thurston shooting in 57 minutes; stabilized the
chaotic crime scene (the largest in Springfield's history) and coordinated follow-up investigations;
interviewed over 250 eyewitnesses in first 24 hours.
. Staffed initial Community Conversation forum after the shooting and subsequent work to develop a
community action plan to keep Springfield children safe and get them the services they need.
. Saved the life of a heart attack victim as a result of the City's decision to equip police patrol vehicles
with automatic external defibrillators and train police officers in their use.
. Implemented School Resource Officer Program in Thurston and Springfield High Schools.
. Implemented the Fire & Life Safety Explorer Scout Program with presentations on firefighting as a
career has been made to five area schools.
. Increased FireMed Ambulance Membership Program by 2.6% to a total of 33,939 memberships.
. Acquired Springfield's first Fire Tender (water tanker), improving the ability to deliver water and
foam to wild land interface areas, road sides and other locations lacking fire hydrants. Received a
grant for the use of two "Wave Runner" watercrafts, which will allow the F&LS department to
establish a surface water rescue team.
. Conducted almost 20,000 Field Inspections for Building Safety.
. Caused demolition of six substandard and dangerous buildings.
. Installed video vehicle detection devices at three intersections.
Ensure resources are sufficient to provide quality basic services.
. Obtained $3 million in federal funding for the Beltline 1-5 Interchange, and $600,000 for the 42nd
Street bike path.
. Secured grant funding for two Wave Runner water craft, establishing surface water rescue capacity.
. Raised $16,700 for the Springfield Museum through fourth annual garden tour, first annual
membership drive and 1998 Holly Days Tea & Open House.
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. Received over $40,000 in grants for historic preservation and other planning projects.
. Achieved 100% occupancy at Booth-Kelly, collecting over $651,000 in lease revenue, and sold 10
Bancroft lots with a value of $278,000.
. Initiated a space needs study to ultimately replace substandard facilities for police, courts, prosecutor
and to incorporate facilities for fire and life safety administration.
. Implemented a replacement automated payroll/human resource system and Land Use mapping
system; completed automated dog licensing and business license systems; upgraded phone system
software.
. Purchased and installed 75 personal computers; installed 5 new servers; and installed new traffic
signal software system; maintained availability of both computer network and phone system for city
business 99.9% of time.
. Developed and implemented new documentation standards for the creation and implementation of
software. Converted 60% of the city's computer workstations to Window's 95 and trained 85
employees on Windows 95. Completed business area analysis for the fire statistics system and for
the financial management system.
. Y2K projects scheduled to be completed in a timely manner.
. Collaborated with the Friends of the Library on a successful donation drive, resulting in the funding
of thirty periodical subscriptions.
. Added back two evening hours to the Library's schedule; circulated over 350,000 items to 20,000
library patrons; managed a volunteer work force which averages seventy people, and which logged
over 5,200 hours of volunteer work this year.
. Initiated public Internet access at the Library, with seven Internet stations available during all hours
the library is open; began dial~in access to the library's public catalog; and added a full-text
information database, with access to periodicals, maps, photographs, and radio and television scripts.
. Initiated a benchmarking program to identify performance measures and standards to evaluate
services more effectively.
. Completed the rehabilitation of 48th & Main Street Fire Station. The project improved the function
of the station, upgraded the physical facilities and provided separate facilities for male and female
firefighters.
. Completed the acquisition of a standardized handgun weapons system for issuance to police officers.
. Completed the Request for Proposals and have initiated a space needs study for police, courts,
prosecutor and fire and life safety administration. Study is to be completed in the spring of 1999.
. Completed City Hall's five-year space needs study.
Expand Springfield's economic base with diverse job opportunities.
. Issued over 4,000 building permits with a value of almost $70,000,000.
. Conducted monthly community information tours for new businesses, new employees and
community leaders.
. Proposed development and funding options for the Sports Center in the north Gateway area.
. Drafted agreements with major Natron-area property owners to donate property for the Jasper Road
Extension right-of-way and wetland mitigation.
· Worked with KidSports to reach a lease agreement to construct two high-quality soccer fields in the
Springfield Sports Center and constructed parking lot.
. Assisted several area firms in relocating to, expanding in, and developing on Springfield sites,
including Federal Express, Cramer Grinding, Northwest Notions, Scapa Rolls, Channel Forest
Products, and Sycan B.
Protect Springfield's interests
. Assisted a joint committee of Eugene and Springfield Councilors to negotiate an agreement for the
transfer of jurisdiction of Glenwood.
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. Completed a Principles of Cooperation agreement with Springfield Utility Board to clarify roles and
responsibilities regarding utility regulation.
. Conducted successful election, appointments and orientations for new Mayor and City Council
members.
. Coordinated the development of federal Action Plan for the Prevention of Youth Crime and School
Violence. Several of the components of the plan were incorporated into the White House response to
the issue of youth violence.
. Participated in leadership roles in Public Safety Coordinating Council, and Chamber of Commerce
Springfield Summit effort to revitalize downtown.
. Completed the review and implementation of Workers' Comp insurance options and chose a fully
insured program to better meet City-wide needs and concerns.
Manage growth to preserve city's ability to provide quality services
. Completed Local Wetlands Inventory (approved by Department of State Lands) and Drinking Water
Protection Draft Plan
. Secured approval of MountainGate Master D~velopment Plan.
. Processed 282 Land Use Applications and approved Site Plans for 82 Multi-family Dwelling Units;
annexed 114 acres; created 169 new subdivision lots.
. Approved Pierce Campus Industrial Site Conceptual Development Plan.
. Processed Glenwood Metro Plan Amendment for Jurisdictional Change, Glenwood
Intergovernmental Agreement, and Glenwood Boundary Commission Resolution
. Issued over 750 City Business Licenses.
. Reviewed 114 planning applications, 522 building permits, 22 construction permits, 65 land &
drainage alternation permits and 350 encroachment permits. Calculated 561 system development
charges.
. Reviewed twenty land partitions, totaling 47 lots and 8 subdivisions, totaling 152 lots.
. Issued over 4,000 building permits with a value of almost $70,000,000.
. Sold 10 Bancroft lots with a value of $278,000.
. Received a $20,000 technical assistant grant to create a new Springfield Development Code Chapter
for Mixed-Use Zoning.
Upgrade existing housing stock and neighborhoods
. Conducted the First Annual Springfield Homebuyer Fair; 200 Springfield residents attended training
sessions held throughout the day.
. Completed 35 Springfield Home Ownership Program (SHOP) loans.
. Enhanced the SHOP Program for successful first-time homebuyers by providing a "welcome" packet
at closing.
. Created a Home Maintenance Manual of practical how-to information for new homeowners' use in
doing repairs and maintenance on their homes.
. Cooperated with Willamalane Parks District to promote the City's Emergency Housing Repair
(EHR) program for elderly very-low income residents of Springfield; completed 92 Emergency
Home Repairs (ERR)
. Translated all housing program brochures and posters into Spanish.
. Revised the Springfield Home Improvement Program (SHIP) to shorten loan-processing time and
efficiently provide CDBG funded loans.
. Caused demolition of six substandard and dangerous buildings.
. Received a $20,000 TGM Grant for multi-family dwelling architectural and building standards.
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Maintain a positive image for Springfield
. Activated a Crisis Information Center at Springfield City Hall to provide timely and accurate
information to community members and news media after the Thurston shooting.
. Secured an agreement from Willamalane Park and Recreation District and School District #19 for
participation in joint community newsletters, to be launched in 1999.
. Mayor Bill Morrisette and City Manager Mike Kelly received League of Oregon Cities awards for
career achievement, and in acknowledgement of Springfield's exemplary response to the Thurston
cnSlS.
. Organized and managed the "Leaf-It to Springfield" program, removing approximately 205 tons of
leaves from city streets.
. Conducted over 5,000 Field Inspections for Land Use and Nuisance Enforcement.
. Awarded (through the Arts Commission) $2,000 in grants to local arts groups.
. Successful election, appointments and orientation for new mayor and city council members.
. Received the Tree City USA designation for the 11th consecutive year.
. Third consecutive year of managing Regional Wastewater Facilities with no rate increase.
. Received EP A award for pretreatment program excellent.
. Responded to over 2,500 sewer billing customer inquiries with 94% of respondents to customer
service surveys rating service excellent.
. Received a State Historic Preservation Office Grant for a City of Springfield Context Statement
Publication.
. Conducted over 5,000 field inspections for land use and nuisance enforcement.
. DSD/Public Works front counter served 13,200 walk-in customers and answered 67,165 incoming
phone calls.
. The 6th annual Springfield Puppet Festival was a huge success with over 1,80 participants enjoying 5
weeks of programs funded by a $5,000 grant from Trust Management Services.
. The Museum's Main Street Gallery had ten exhibits. 667 children visited the museum for tours. The
Holly Days Tea and Ope!1 House was attended by over 200 guests. The Museum hosted Vaudeville
for Kids and Bonny Gorsuch's Collage for Kinds in January and February; over 125 people attended.
In April, the Museum, Library and Arts Commission hosted Heritage Month. Two workshops, a day
of demonstrations and crafts reached over 200 people.
Cooperate with Springfield (and other) governments.
. Coordinated an intergovernmental response to the Thurston shooting; formed the Thurston Healing
Fund to aid people interested in providing assistance to victims and families.
. Worked with Springfield School District, White House and Secret Service staff to facilitate the visit
to Springfield by the President of the United States.
. Conducted a two-part leadership transition meeting for incoming City Councilors focused on 1)
information-sharing by "Team Springfield," the combined policy boards of the city, park, utility and
school districts; and 2) a policy "hand off' and goal-setting discussion between current and in-
coming councilors.
. Held joint meetings twice during 1999 with Mayor and City Council of Eugene and Lane County
Commissioners; once each with the Springfield Planning Commission, Bicycle Committee, Historic
Commission, Police Planning Task Force, and Springfield Chamber of Commerce.
. EMS Account Services added two new ambulance-billing customers. The City now provides
ambulance-billing services to five cities or ambulance districts.
. Sponsored and provided volunteers for the semi-annual Lane County Household and Small business
Hazardous Waste Collection Event.
. Cooperatively promoted with Willamalane Parks District the City's Emergency Housing Repair
program for elderly, very-low income residents of Springfield.
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. Worked in combination with the Lane County Housing Authority to provide resources and funds to
help very low-income Springfield residents with HER assistance.
. Worked with KidSports to reach a lease agreement to construct 2 high-quality soccer fields in the
Springfield Sports Center and constructed parking.
Ensure efficient traffic flow.
. Repainted 48 miles of striping on City streets including bike lanes.
. Installed video vehicle detection devices at three intersections
. Repainted approximately 90% of crosswalks, arrows, and pavement messages.
. Patched 1,100 potholes.
. Reached a decision with Lane County on the design concept for the Jasper Road Extension project.
. Completed working with ODOT on installation of 69th and Main Street signal.
. Adopted the Springfield Bicycle Plan Update.
. Completed Capital Bond-funded street overlay projects and virtually all of facilities projects
. Completed City portion of Lane Transit District Thurston Transfer Station.
. Installed new traffic signal software system.
B. Budget Update
Finance Director Bob Duey provided information related to the budget update. He discussed the
property tax levy, Attachment B of the staff report, as follows:
GENERAL FUND
1997/98 Assessed Valuation
Plus 3% Growth Allowance Under Cap
Plus 2.87% Estimated A V Increase From Exceptions
$ 1,882,180,884
$ 56,465,427
TOTAL ESTIMATED ASSESSED VALUATION
City of Springfield Permanent Tax Rate
TAXES RAISED FOR 1998/99 (Rate x A V)
$ 54,03 1.996
$ 1.992,678,307
$ 4.7403
$ 9,445,893
Less Allowances for Discounts, Delinquencies
$ 708,442
TOTAL A V AILABLE FOR APPROPRIATION
$ 8,737,451
BOND SINKING FUND
Levy Required for General Obligation Bonds
$ 1,612,817
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Estimated Tax Rate (Levy/ A V) $ 0.8093
Less Allowance for Discounts, Delinquency $ 120.961
TOTAL AVAILABLE FOR APPROPRIA nON $ 1,491,856
I FY 1998/99 TOTAL TAX LEVIED
$ 5.5496 $ 1,992,678,307 $ 11,058,710
i,!!i!i!i!;i'Fiscal"Y~ar
1998/99
1997/98
(Measure 50)
1996/97
1995/96
1994/95
1993/94
1992/93
1991/92
5.5496
5.7758
$
$
$
$
$
$
5.2500
4.9600
5.2800
6.2600
6.4400
6.6200
5.9%
(13.0%)
$ 2,163,100,522
$ 1,921,473,309
$ 1,703,749,828
$ 1,502,256,337
$ 1,372,872,864
$ 1,308,761,365
12.6%
12.8%
13.5%
9.5%
4.9%
10.8%
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Attachment C, Adopted Budget 1998/99 Program Summary - By Fund was reviewed.
Street $ 42,026 $ $ $ $ 6,699,942 $ 6,741,968
Museum $ $ $ $ $ 113,909 $ 113,909
Special Revenue $ 15,000 $ $ 200,000 $ 6,433 $ 649,663 $ 871,096
Bancroft Redemption $ 28,395 $ 4,130,159 $ $ $ 146,114 $ 4,304,668
Bond Sinking $ $ 2,063,163 $ $ $ $ 2,063,163
Insurance $ 7,863,216 $ $ $ $ $ 7,863,216
Transient Room Tax $ 340,450 $ $ $ 23,694 $ 276,747 $ 640,891
Sewer Capital Projects $ $ $ $ $ 6,945,046 $ 6,945,046
Community Development $ $ $ $ $ 767,744 $ 767,744
Sewer Operations $ $ 1,443,792 $ $ $ 4,355,507 $ 5,799,299
Metro Wastewater $ 38,186 $ $ $ $ 29,041,131 $ 29,079,317
Vehicle and Equipment $ 527,573 $ 8,869 $ 1,931,297 $ $ 2,200,915 $ 4,668,654
Emergency Medical Services $ $ $ 4,514,279 $ $ $ 4,514,279
SDC Projects $ 12,502 $ $ $ $ 3,959,012 $ 3,971,514
Booth-Kelly $ $ $ $ $ 1,180,922 $ 1,180,922
Development Assessment $ 195,671 1203186 $ $ $ 1,182,153 $ 2,581,010
Development Projects $ 108,400 $ $ 100,000 $ $ 2,341,916 $ 2,550,316
G.O. Bond Capital Projects $ 2,493,830 $ 7,863 $ 692,113 $ 288,320 $ 2,953,700 $ 6,435,826
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Attachment D, Adopted Budget 1998/99 Program summary - by Department was reviewed.
City Manager's Office 780,802 $ $ $ 780,802
Development Services $ $ $ $ $ 5,121,151 $ 5,121,151
Finance $ 1,495,942 $ $ $ $ $ 1,495,942
Fire and Life Safety $ $ $ 11,222,072 $ $ $ 11,222,072
Human Resources $ 8,266,323 $ $ $ $ $ 8,266,323
Information Services $ 2,410,218 $ $ $ $ $ 2,410,218
Legal and Judicial $ 839,738 $ $ $ $ $ 839,738
Library $ $ $ $ 1,290,582 $ $ 1,290,582
Police $ $ $ 8,594,850 $ $ $ 8,594,850
Public Works $ $ $ $ $ 60,120,585 $ 60,120,585
Total Departmental $ 13,793,023 $ $ 19,816,922 $ 1,290,582 $ 65,241,736 $ 100,142,263
Special Assessments $ $ 1,203,186 $ $ $ 1,203,186
Debt Service $ $ 7,653,846 $ $ $ $ 7,653,846
Contingency $ 4,858,221 $ $ $ $ $ 4,858,221
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. Mr. Duey then reviewed Attachment E of the staff report. This was a summary of the Operating Budget.
Metropolitan Wastewater Management Commission budget figures were also discussed in addition to
what the City of Eugene expenses were. The Special Revenue fund was also discussed.
Mr. Duey reviewed Attachment F, Program Operating Expenses, All Funds.
Mr. Duey reviewed Attachment G, Program Budget Expenses, General Fund.
Mr. Duey reviewed Attachment R Program operating Expenses at a Glance, General Fund.
Attachment I, Fund Summary - by Program was also reviewed as follows:
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Taxes 10,293,987 9,672,283 10,163,943 10,253,915
Licenses and Fees 822,737 866,855 875,900 837,000
. Fines and Forfeitures 841,932 685,967 679,500 688,823
Use of Money and Property 469,233 532,032 402,390 429,855
Intergovernmental 2,638,320 2,630,262 2,571,456 2,599,169
Charges for Service 1,392,536 1,608,059 1,840,176 1,757,083
Miscellaneous Receipts 138,944 115,991 91,075 105,411
Fiscal Transactions 1,325,711 1,604,189 1,714,725 1,701,163
Encumbrance Cash Balance 62,432 31,219 24,559 20,082
Cash Carry-Over 3,558,474 4,130,686 4,400,954 4,691,607
Total $ 21,544,306 $ 21,878,443 $ 22,764,678 $ 23,084,108
2,793,451
11,501,909
1,999,254
872,153
6,985,995
12,379,233
2,427,315
972,135
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199,8199<
3,373,787
12,010,135
2,332,238
956,576
General Government
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Public Safety
Community Development
Library
Totals
$ 17,382,396 $ 17,166,767 $ 22,764,678 $ 18,672,736
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Licenses and Fees 2,233 0
Use of Money and Property 197,382 250,686 191,170
Intergovernmental 3,297,138 3,000,880 3,000,633
Charges for Service 14,289 25,045 2,612
Miscellaneous Receipts 53,195 109,326 1,000 137,526
Fiscal Transactions 154,326 151,885 35,000 65,953
Encumbrance Cash Balance 327,733 209,223 87,473 85,997
Cash Carry-Over 3,230,355 3,392,636 3,512,524 3,729,816
. Total $ 7,276,651 $ 7,139,681 $ 6,741,968 $ 7,213,707
General Government
Community Development
Totals
':.FJ'n<lt~ig"Fu,ij.~'i'~~I.~Ilce
$ 3,674,791 $ 3,323,864 $ 6,741,968 $ 3,639,015
" ,.,,~:3,?'74,~?2
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Use of Money and Property
Charges for Service
Miscellaneous Receipts
109,528
3,775,686
48,428
o
111 ,215
3,832,652
27,487
o
79,850
4,180,6l8
o
,,~f~d
998122
o
94,994
4,026,000
10,000
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Licenses and Fees
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Fiscal Transactions 27,762 18,480 15,000 15,000
Encumbrance Cash Balance 38,115 16,671 34,550 32,750
Cash Carry-Over 1,875,447 1,515,906 1,489,281 1,888,611
I Total $ 5,874,964 $ 5,522,411 $ 5,799,299 $6,067,355
Debt Service
Community Development
Totals
$ 4,342,387 $ 3,601,050 $
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Licenses and Fees $ 21,775 3,933 $ $ 4279
Fines and Forfeitures 8,355 200 0
Use of Money and Property 650,497 784,281 517,820 623,835
Intergovernmental 142,708 33,839 0 0
Charges for Service 11,786,315 12,284,894 12,448,138 11,966,928
Miscellaneous Receipts 14,663 104,872 15,000 90,000
Fiscal Transactions 224,821 354,972 3,604,934 2,879,934
Encumbrance Cash Balance 795,030 1,410,686 1,462,894 1,432,294
Cash Carry-Over 13,501,506 10,139,180 11,019,731 13,886,453
Total $ 27,145,670 $ 25,116,857 $ 29,079,317 $ 30,883,723
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General Government
Ex......endltli'r
........p .'",imil';'>'
,<, -""i:~'.
Community Development
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Totals
20,112,193
Licenses and Fees 821,298
Use of Money and Property 118,834
Intergovernmental 0
Charges for Service 1,722,740 1,723,079 1,646,414 2,001,492
Miscellaneous Receipts 301,185 320,511 333,560 341,527
Encumbrance Cash Balance 1,560 0 5,000 4,084
Cash Carry-Over 1,647,799 1,973,803 1,667,819 2,022,554
Total $ 4,635,612 $ 4,957,525 $ 4,514,279 $ 5,290,701
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Public Safety
Use of Money and Property 674,575 673,900 $
Encumbrance Cash Balance 67,259 91,356
Cash Carry-Over 245,337 313,833 415,666
. Total $ 862,789 $ 1,055,667 $ 1,180,922 $ 1,269,769
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Community Development
Totals
Mr. Duey answered questions from Budget Committee members and City Council members.
C. Long Range Financial Projections
Mr. Duey discussed the long range forecast and overview. The long-range financial projections are tools
used to develop strategies for funding city services over a multi year horizon. The strategy avoids the
need to reduce future expenditures by taking a proactive approach that prevents expenditures from
increasing beyond a level that can be sustained.
Mr. Duey discussed Attachment J. He also discussed the philosophy that the city would like to continue
to have a working capital, a contingency and a third year balance that is positive. He further discussed
the revenue projections and a reasonable CPI factor, along with area growth. He said a consistent
projection method is then generated. .He discussed labor contracts and the difficulty in estimating
accurate projections related to the issue.
Mr. Duey also discussed use of reserves, in-lieu of taxes and indirects. Mr. Duey answered questions
from City Council and Budget Committee members regarding property taxes and their impacts.
Mr. Duey reviewed the study findings, financial overview, forecasting techniques, assumptions, and
projection methods. See Attachment O.
D. Mid-Year Acijustments
City Manger Mike Kelly reviewed the mid-year budget adjustments and where we go from here. See
Attachment K. He further noted that this was not a Budget Committee meeting but a council work
session meeting. He said the presentation was being provided to better acquaint everyone with an update
on budgeting and an update on highlights and issues for review. He hoped to hold more meetings similar
to this in the future.
Mr. Kelly discussed the budget process, the current budget situation and mid-year corrections. He said
that mid-year budget changes were not the standard for the organization. He explained that three
departments that serve to provide internal services have proposed changes.
Mr. Kelly further tied issues to the council five-year goals along with activities related to the five-year
goals and basics of budgeting.
BACKGROUND
Each year management has the responsibility of managing the budget for the current fiscal year while
working on the budget preparation for the following year. Issues or activities that arise during this time
that are within the intent of the adopted budget for that year and require financial adjustments, are
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regularly brought before the Council as supplemental budgets or budget transfers. The majority of other
issues or activities that arise are made a part of the budget planning process for the following year and
are eventually either put into the proposed budget prepared by the city manager, dropped at the
management level due to lack of resources, or brought to the budget committee as issue papers.
On occasion when it has been determined that one of the new issues will be a part of the city manager's
proposed budget for next year and there would benefit from an earlier review, it is brought to the council
or budget committee as a potential mid-year change. To qualify as a mid-year change the request
. brought forward needs to be a time sensitive activity, or one where the service being provided is not
meeting the identified need.
DISCUSSION
Management is planning to include in its proposed budget for next year a staff adjustment to increase the
staffing levels within the city's support departments (information services, human resource, and finance).
The change would increase the staff in these three departments by 3.0 FTE. During the preparation of
next year's budget, it was noted that there would be a definite advantage to all departments to know the
level of support that could be expected from the three support departments next year. Without the
knowledge of whether these positions would be approved and filled promptly, departments were needing
to prepare contingency plans to accomplish certain support services. There would not be a need for
additional funding to proceed early with the development of job descriptions, posting, and possible hiring
this fiscal year, but without the expressed support of continued funding for next year, these are not
activities management would want to undertake. Management would like to have a discussion with
Council at the mid-year meeting regarding the ability to proceed with filing these three positions this
. spnng.
BACKGROUND
In October of 1998, the management team met in a strategic planning session and identified the ability
for support services (information services, human resource, and finance) to meet the needs of the direct
service-providing department as one of the most critical needs. The expanding needs in the areas of
information technology, personnel support and practices were not able to be addressed within the
existing staffing levels, and service providing departments were finding themselves in the position of
needing to divert their own existing resources to these areas. Ifwas determined by the management team
that decentralizing these activities out to the departments was not an efficient use of resources and asked
the three support departments to prepare a plan addressing the resources that would be requir~d to meet
the objectives identified by the departments.
The Support Services Analysis Report was completed and presented to the management team in
December of this year. The report contained recommendations for immediate action this year and
proposed action for the next two subsequent years. In part, the following were the recommendations
adopted by the management team.
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For 1998-99
~ Move contract review and other purchasing related duties from Human Resources to Finance
~ Continue to contract to outside agencies certain services
~ Identify and de-emphasis certain activities determined to be of a lower priority
~ Establish software and hardware standards
~ Restructure to increase the efficiency of benefits administration
~ Switch the worker's compensation program from a self insured program to a fully insured program
~ Request a mid-year adjustment for the addition of3.0 FTE. The positions requested are:
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. a production programmer in information services to assist in writing programming code to create an
application. This effort is for both the city's Y2K compliance effort and its ongoing effort to the
improvement in the cities technology resources. A full year's cost of this position is $58,300,
including first year start-up costs.
. an application administrator for information services to perform system administration duties for the
new HRMS/Finance system, moving the city's focus from the mainframe to the client server system.
A full year's cost of this position is $66,300, including first year start-up costs.
. a management analyst in finance that would assume the contract review duties from human resources
and assist other departments in analytical reviews. The full year's cost of this position is $52,375,
including first year start-up costs.
~ Provide contractual resources for information services to coordinate additional computer user
training for employees in all departments.
For 1999-00
~ Include in the city manager's proposed budget for next year, the refilling of the information services
department head position. In addition to addressing the need within the information services
department, this would also allow the return of the assistant city manager position to full-time in the
city manager's office.
~ Continue the review of service levels of the three departments and submit to the city manager for
consideration the additional positions of training coordinator/labor relations specialist and a half-
time clerk in human resources, another production programmer and help desk/pc analyst in
information services and another management analyst in finance.
. CONCLUSION .
.
To effectively plan for next year's activities, there is a distinct advantage to all the city departments
knowing early in their planning process if there is going to be any additional support services available to
them next fiscal year. Through their strategic planning effort and subsequent review of the results, there
is consensus among the management team that an increased level of activity from the three support
departments is critical for the delivery to services to our citizens.
In regard to the ability for the city to sustain the funding for these positions, the long range projections
for the city's General Fund indicate that the General Operating Fund of the city is able to continue
providing the general services currently being provided, as well as providing potential for slight
increment growth. Based on the identified priority of these services, management is recommending that
the city proceed with the addition of three staff members to the support departments, along with adding
the ability for information services to coordinate and provide computer training to all city departments.
Mr. Kelly said he was not sure of what proposed increases would be made in the next fiscal year budget.
Mayor Maine reminded everyone that this was not a Budget Committee meeting but an update and
opportunity to review the mid year changes.
The proposed budget will be forwarded to the Budget Committee at the appropriate time this spring.
Mr. Kelly wanted Council to be aware of the proposed mid-year changes and that they were affordable
and needed.
Councilor Fitch asked about the proposed mid year changes and if they were included in future
projections. Mr. Kelly noted that they were not included but affordable over the long-range projections.
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Risk Manager Craig Gibons provided information regarding the change from a self-insured program to a
fully insured program.
Information Services staffing was further discussed.
Mayor Maine was supportive of the mid year changes. She did not think the organization could afford
not to support the proposal.
2. Report of December 12, 1998, Council Orientation/Goal Setting Session
City Manager Mike Kelly discussed the five year goals and the new goals that were developed on
December 12, 1998, Attachment L. Mayor Maine said once the binders summarizing the December 12
meeting were distributed, council could review the information and provide feedback, comments, ask
questions or raise their concerns. If further discussion is required, the council could schedule a work
session meeting to further discuss the issue.
Council and Budget Committee members would receive a copy of the December 12 meeting summary
report. A council work session meeting would also be scheduled to provide an overview on
benchmarking.
3. Budget Committee Guidelines for 1999/00
. City Manager Mike Kelly reviewed Attachment M. Budget Guidelines.
4. Preview of 1999/00 City Manager's Budget
City Manager Mike Kelly reviewed Attachment N, and discussed proposed budget issues.
Discussion of 1999/00 Proposed Budget Issues
In addition to receiving the Budget Committee Guidelines, there is benefit for both committee members
and management to take advantage of a mid-year meeting to identify some of the major issues that may
arise during the budget deliberations this spring. Itgives management the opportunity to familiarize
committee members with several of the issues that they will be seeing either in the proposed budget or
contained in issue papers and it also gives committee members the opportunity to let management know
what they see as potential key issues during the spring deliberations. The following are some of the
issues that management is currently reviewing and will be in someway part of the budget process.
The Jurisdictional Change and Possible Annexation of Glenwood Properties
.
The jurisdictional change of properties within Glenwood from Eugene's UGB to Springfield's UGB has
occurred, and the possible annexation to Springfield of properties currently in Eugene is to be decided
February 04. The city's proposed service response to both of these actions is documented in the city's
Glenwood Jurisdiction Study. The plan for next year's proposed budget is to follow closely the services
and cost identified in this already completed study. In addition to the cost associated with the in-ground
sewer infrastructure and the planning documents costs, the study addresses the city's immediate need to
address building code enforcement, fire marshal services, police services, fire protection services, sewer
maintenance and street maintenance. The operating revenue sources to be included are property taxes,
EWEB in-lieu of payments, sewer user fees, franchise fees, state shared revenues, gas tax revenues, and
land use planning fees.
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Filling of the Vacant Information Services Director Position
The position of information services department director has been vacant since early 1996. Since that
time, the city's assistant city manager has dedicated 1/3 of their time to administering this department
and 2/3 of their time to their previous duties in the city manager's office. With the critical nature of
information technology to the city and the critical need of administrative support in the city manager's
office, it is becoming more difficult to address the city's technology needs without a full time person
dedicated to that department. The filing of this need within the information services department has been
reviewed thoroughly to ensure that the potential position is filled with the proper level of expertise and
authority within the city and our partnering agencies. The filling of a position of this type will require a
more extensive recruitment and review process than most other positions in the city. Although
management would not be looking to fill the position until after the start of the next fiscal year, there
would be an advantage to be able to begin the recruitment process earlier this fiscal year so that the
position could be filled as soon after the start of the new fiscal year as possible. Discussion by council
members at the mid-year meeting on the early recruitment period would be helpful.
Public Safety Vehicles
.
The city has attempted to maintain a fully funded vehicle replacement program for a number of years.
Primarily police, fire and public works rely on the annual contributions to a vehicle replacement fund
that has allowed them to, over the life of a vehicle,.reserve resources for the eventual replacement of that
vehicle. Over the last several years; particularly the police and fire departments, have found that the
annual contribution. dollars that need to be made to ensure the full replacement cost of the vehicle has
grown at a rate much faster than their financial ability to meet this contribution rate. For the fire
department, the need to reduce the life expectancy of major equipment by 2 to 8 years is driving up the
contribution rate as well as the cost of new equipment increasing at a rate higher than the annual CPI.
Also, with the opening of the Gateway Station, several pieces of new and expensive apparatus have been
added to the fleet, increasing the contribution rates.
For the police department, the cost of new vehicles is also increasing at a rate faster than the CPI. Also,
the expansion of the fleet to accommodate additional staff and the inclusion of additional equipment (e.g.
light bars, shotgun racks) into the replacement costs is having an effect on the contribution rate.
To be addressed during the budget preparation process, as well as the budget committee deliberation
process, is the city's policy towards vehicle replacement costs. The possible options range from one to
increase'the annual contributions to retain the current intent of a fully funded plan, to one that would off
load the cost of eventual vehicle replacement to a general obligation bond issue as currently allowed
under the rules of Measure 50, to a program that takes advantage of both an annual contribution rate and
possible public vote for capital purchases. The potential impact of maintaining a fully funded vehicle
replacement program is an annual cost of$230,000.
Public Safety Coordinating Council Activities/Recommendations
.
The issue ofa regional response to the criminal justice system has not been abandoned with the defeat of
Measure 20-05 and 20-06. The PSCC is still meeting on this issue and is expected to address the issue
again both this fiscal year and next fiscal year. There are no proposals on the table at this point that
management will be including in its original proposed budget to the budget committee, but by the time
the budget process in completed in May of this year, there will likely be additional information available
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for our consideration. If and when this information comes from the PSCC, it will be shared with the
budget committee.
Public Safety Facility Plans
Both of the city's public safety departments are working on facility studies this year that should be
expected to continue with the subsequent phases next year. The police department is heading up the
space needs study to address their department's needs, the municipal court needs, and that of fire
administration. The next phase of this project would be the completion of a site study. The fire
department, in addition to its participation in the space needs study, is completing a facility rehab plan
for its four older fire stations and will need to continue to make progress on the upgrading of those
facilities. In addition, with the inclusion of Glenwood to the city's boundaries and its UGB, the need to
study the possible movement of Station # 4 from its present location to a location nearer downtown is
more apparent.
There are undoubtedly other issues that will need to be addressed during the preparation of the 1999-00
Proposed Budget.
Overall support was provided to dedicate the $177,000 in the next year's budget for the three positions
proposed by Mr. Kelly. The support positions will support Finance, Human Resources and the
Information. Services Departments.
The positions are a production programmer in Information Services,. for $58,300; an Administrator for
Information Services Department, $66,300; and a Management Analyst in Finance for $52,275.
Mayor Maine and Councilors Simmons expressed support for the request.
The support for the positions would be tied into city goals to offer quality services responsive to citizens
and maintaining a fiscally sound government organization.
ADJOURNMENT
The meeting was adjourned at 7:55 p.m.
Minutes Recorder - Julie Wilson
~~
Maureen Maine
Mayor
Attest: '\
(\..O~ ~
~
City Recorder
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