HomeMy WebLinkAbout12/16/1996 Work Session
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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.
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1. Ballot Measure 47 Process Options
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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.
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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.
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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.
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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.
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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.
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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.
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Councilor Beyer supported Option B with the wording removed regarding new revenue
sources. Councilor Ballew also supported Option B.
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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
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Mayor
ATTEST:
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Depul' City Recorder