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HomeMy WebLinkAbout12/16/1996 Work Session . City of Springfield Work Session MINUTES OF THE WORK SESSION OF THE SPRINGFIELD CITY COUNCIL HELD ON MONDAY, DECEMBER 16,1996 The City of Springfield Council met in Work Session in the Springfield Library Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday, December 16, 1996, at 6:00 p.m. with Mayor Morrisette presiding. ATTENDANCE Present were Mayor Morrisette, Councilors Ballew, Beyer, Burge, Dahlquist and Maine. Councilor Shaver was absent (excused). Also present were City Manager Mike Kelly, Assistant City Manager Gino Grimaldi, City Attorney Joe Leahy, City Recorder Eileen Stein, Administrative Aide Shari Higgins and members of staff. ", 1. Ballot Measure 47 Process Options . City Manager Mike Kelly introduced City Recorder Eileen Stein who presented information about Ballot Measure 47. She discussed exceptions to the measure, including voter approved annexations, added value from new construction, re-construction and major additions or remodels. Ms. Stein described what the city does not know about the measure, including the constitutionality of the measure, in which legal challenges have already been filed at the Circuit Court level by two groups, and does it authorize a revision to the constitution versus an amendment, which can only be made by the Legislature. The entire measure or (individual components) could be rendered unconstitutional, depending on what pieces are successfully challenged. Ms. Stein explained there are still unanswered questions that the Legislature will need to resolve. She listed a few examples, which included: the city's planning fees, shifts in funding, fees tied to a particular service, delayed effective date annexations, Enterprise Zones, and how the Tax Assessor's Office will be notified of new value being added to Springfield's tax base. Councilor Ballew asked if the Legislature might determine the tax impacts to the various jurisdictions. Mr. Kelly replied yes, and explained the Legislature does have some delegated rights in the measure. He stated the city is unsure at this time as to how the Legislature will react to the measure. . Mr. Kelly explained the three options developed by the city's management team at a recent strategic planning session: Option A - Makes deep cuts early (approximately $2.5 million) and assumes no relief from court challenges or the Legislature. Essentially, the organization would be "right sized" beginning July 1, 1997; Option B - Planned, phased process that makes some cuts early (approximately $1.7 million) but defers another $ 1 million others until more information is known; Option C - Make some cuts early (approximately $1.4 million) and plan for financial relief from court challengeslLegislature or voters. This option has greater emphasis on revenue enhancement and relies more heavily on "one-time" reductions to make up the initial $1.4 million in cuts. . City of Springfield Work Session - 12/16/96 page two Councilor Burge asked if the $1 million saved under the options would be actual savings or shifting between funds. Mr. Kelly explained about one-half million would be shifts or non- completion of purchases or projects and the remaining one-half million would be cuts. Councilor Burge asked about the last bullet on the chart for Option A, which states "design and implement assistance program for affected employees." Mr. Kelly explained that a specific program has not been developed, but that staff is hoping to work with the other metro area agencies in pooling applicants for vacant positions and providing the services of Direction, a local counseling office the city currently contracts with. Mayor Morrisette stated the options do provide savings, not just fund shifting and asked about overtime reductions. He clarified that between now and June 97 in each option, the city will save $1 million this fiscal year. This initial savings will help offset some of the future reductions no matter which option the council chooses. . Councilor Burge asked if the city will still suggest a reduction of30 to 50 positions, as he was told was this was a possibility by Assistant City Manager Gino Grimaldi. Mr. Kelly stated a reduction of 30 to 50 positions would be needed if expenditure reductions were all the city did in addressing the impact of the ballot measure. He stated staff is prepared to reduce the General Fund budget by $1 million this fiscal year and proceed with the option that council., chooses. Councilor Maine stated she would like to see the basic services study occur before any budgetary actions are taken. This would allow time for council to review what work has been done and what should still occur, prior to any major financial decisions. Councilor Burge asked about the existing reserves and if the various options planned to use of these reserves. Mr. Kelly stated a reserve amount of $2.2 million would be kept in all three options discussed. Councilor Burge stated his preference for Option A, as he believed it best represents the wishes of the voters. He commented that the voters have spoken and it is time', to address the budget reductions prudently. Councilor Ballew suggested preparing two budgets, one with Option A cuts and one with Option B cuts, for review by council. Councilor Maine stated the Lane County Tax Assessor spoke recently at the Metropolitan Policy Committee (MPC) meeting and explained that none of the new construction or remodel dollars have been figured yet into the financial aspect of Ballot Measure 47. She felt that Option A is too drastic at this time and suggests the council look for both budgetary and service level reductions. Councilor Maine did not favor the review of a possible revenue measure in November of 1998, and with that "bullet" removed, stated she would support Option B. . . City of Springfield Work Session - 12/16/96 page three Councilor Beyer commented that either Option A or B would be responsive to the voters and she supported Option B, with the "bullet" removed regarding the review of a possible revenue measure. She agreed with Councilor Maine, that council does not have enough answers to make any drastic reductions, such as Option A at this point in time. Councilor Dahlquist stated his dissatisfaction with Option C, but stated he could support Option B, at a minimum, with the removal of the last "bullet" (as stated previously). He agreed with Councilor Maine the basic services review needs to occur. He supported Option B, but stated that Option A alternatives should also be identified. Mayor Morrisette explained he will support what the voters of Springfield want, but that he personally does not support every measure passed by the voters. He will encourage a fight against Ballot Measure 47 in the Legislature. He stated his hopes that the legal constitutionality of the measure will not hold up in he courts, but in the meantime, will support Option B. He did not want to make drastic cuts too early, as it would be hard to come back from such strong cuts if the measure is found to be unconstitutional. . Councilor Maine commented she appreciates the city targeting $1 million in reductions during the next six months, but wants the citizens to know that there will be a noticeable affect on service levels and there will be reductions due to the passage ofthe measure", Councilor Beyer agreed and stated the,city wouHbe'deceivingthepublic ifthere;wereno noticeable service reductions associated with the cuts. Mr. Kelly responded by saying that the identified cost savings in the current fiscal year do not include major, city-wide service reductions. The levels of service would only remain flat for the balance of the 1996-97 PY. After July 1, 1997, he stated there will be noticeable service reductions. The larger the budget cuts, the more the service levels will be reduced. Councilor Burge stated his concern over public perception and felt that Option B would not reduce the size of government. He discussed proposals notto staffPire Station #5, after voters approved the Capital Bond funding to pay for its construction. Councilor Burge felt Option A is what the voters have asked the council to do. The council does notrepresent City Hall, but the voters of Springfield. Councilor Ballew reiterated that services must be reduced or eliminated when funding is reduced. Mayor Morrisette stated there are many ways to save money, but services will have to be reduced in order to make the budget cuts. He suggested reviewing a checklist of basic services and felt Springfield should become a basic service community. Mr. Kelly agreed, but noted the city may need to preserve public safety at current levels and a huge impact would then fall on the General Fund. . Councilor Beyer supported Option B with the wording removed regarding new revenue sources. Councilor Ballew also supported Option B. . . . . City of Springfield Work Session - 12/16/96 page four Councilor Maine suggested staffbe allowed to review proposed budget cuts with council over the next six months, while the council is reviewing the basic services information. She stated the public should be educated during this process and that the council is adhering to their wishes, and services will be reduced. She suggested public input for the quality of life issues that services, other than basic, provide to the community and suggested a public input forum be held. Councilor Burge commented that only those who want a particular service will show up at a public hearing or forum, in support their program. IT WAS MOVED BY COUNCILOR MAINE, WITH A SECOND BY COUNCILOR DAHLQUIST TO SUPPORT OPTION B, WITH THE DELETION OF THE BULLET "CONSIDER DEVELOPING PROPOSAL FOR NEW REVENUE FOR VOTE IN MAY 1998", AND TO REVIEW THE BASIC SERVICES INVENTORY AND IDENTIFY CUTS TO MEET OPTION A, AT THE SAME TIME. THE MOTION PASSED WITH A VOTE OF FOR 5 FOR 1 AGAINST (BURGE). Councilor Burge explained his non-support of the motion was due to the city not immediately rightsizing by July, 1997, per the wishes of the voters. Mr. Kelly clarified that council would review the basic services inventory in late-January. After discussion, council agreed to hold an extended work session and that Budget Committee members should be invited to attend and listen, but that only the council at this part of the process should participate. ADJOURNMENT The meeting was adjourned at 7:05 p.m. Minutes Recorder - Shari Higgins JBd/ ~$ Mayor ATTEST: ~. ULxSL'S~ Depul' City Recorder