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HomeMy WebLinkAbout11/24/2003 Work Session .. . MINUTES OF THE GOAL SETTING SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, NOVEMBER 24, 2003 The Springfield City Council met in a goal setting session, in the Library Meeting Room, 225 Fifth Street, Springfield, Oregon, on Monday, November 24,2003 at 5:30 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken, and Councilors Ballew, Lundberg, Fitch, Ralston, Malloy and Woodrow. Also present were City Manager Mike Kelly, Assistant City Manager Cynthia Pappas, City Recorder Amy Sowa, and members of staff. I. Overview of Agenda. City Manager Mike Kelly gave an overview of tonight's council goal setting session agenda. Mr. Kelly said this is an opportune time for council goal setting because it is prior to the TEAM Springfield All-Elected Board Meeting and the Mayor's State of the City Address. He explained how this agenda was created through input from the counciL This is a time for staffto receive policy level guidance from council on these topics. Staff will then interpret what they hear at this session and come back with a work plan for the year. A LOOK BACK . I. Written Status Report on 2003 Gold Stars & 5- Y ear Goals and Targets. City Manager Mike Kelly presented the staff report on this item. Mr. Kelly referred to Attachments II and III included in the agenda packet. These attachments outline the 2003 Gold Stars for each department and also the 5- Year Goals and Targets. He asked council to review the gold stars to confirm nothing had been overlooked. The organization is focused on the next challenge, but tries to look back on the accomplishments of the year. Mr. Kelly asked council to review the five-year goals to see if they still fit council's vision. Councilor Fitch said the goals remain solid. Financial stability will be something to discuss tonight. Mr. Kelly referred to the One-Year Targets listed in Attachment III included in the agenda packet. He discussed the difference between the five-year goals and the targets. The targets work toward reaching those goals. Some ofthe one-year targets will be carried over to the 2004 work plan. Councilor Fitch said we are making progress, but with the limited staff we may not have made as much progress as we would like to see. She said we have done what we can and that is why some targets are being carried over to the coming year. Councilor Ballew referred to the Mill Race Project and the limitations the city has regarding the timeline due to the Corps schedule. She suggested outlining some of our obstacles and disappointments along with our accomplishments. . . Springfield City Council Goal Setting Session November 24, 2003 Page - 2 . Mr. Kelly asked council to let staff know of any of those disappointments regarding any projects and activities. This will allow staff to learn from the experience. Mayor Leiken asked Development Services Director Bill Grile about the Land Conservation Development Commission (LCDC) Director, Nan Evan's, visit on Thursday, November 20. He asked about the timeline regarding TransPlan and for a brief overview of that meeting. Mr. Grile said there had been some concern that LCDC would be making recommendations for sanctions against the City of Springfield for not moving along as rapidly as expected on nodal development, but Ms. Evans assured them they were not moving in that direction. There will be a session with the Land Conservation Development Commission in January or February. He said staff plans on bringing the Mohawk Nodal Development item to council soon. Planner Greg Mott said staff would bring the Mohawk item to council at their December 8 work session. In May 2003 the city committed to designating 400 acres within the city by this time to nodal development. The city needed a grant to do the work and the LCDC staff was not satisfied with the work program. It took them over a year to agree to the program. That has put the city one year behind, but staff is confident that a year from now a work plan will be in place. They are planning to get an extension from the LCDC. The date of the LCDC session is around January 29 or 30, 2004. . Mayor Leiken asked if LCDC was expecting all nodals to look the same or if each one would reflect each particular area. Council has expressed interest in creating nodals that are unique for each area in Springfield and he hopes the LCDC representative understands that. Mr. Grile said Ms. Evans feels that the approach Springfield is taking by methodically and systematically talking with citizens to create the right design is correct. Councilor Fitch said in the one-year targets, item 31 regarding strategies for reducing health insurance costs, the work done by the Human Resources Department was an extremely important piece in cost stabilization for the city. The city was looking at costs that were increasing dramatically and this is something that can control and maintain some of these costs. This is ongoing, but it needs to be emphasized how well staff did on this project. Both management and the unions should be commended for adopting this new program. Mr. Kelly agreed and discussed the process in moving to this health care program. This is a major first step in sharing the rising cost of health care with employees. The City of Springfield is now a model of using this program to stabilize costs. Councilor Lundberg said much of the goals and targets are familiar from years past. We have always had a lot of goals and we are often able to accomplish many of them. We take on a lot and continue to try to do it well. Mr. Kelly acknowledged that this is a lot of work. We do not know what lies ahead of us in many areas yet we look ahead by setting these goals. We have to have the ability to respond to the unforeseen issues that come to us while we continue to work on the fundamental things that make us a success as an organization. He said our 2004 targets are less aggressive due to resources and direction of council and many are carryover items. . . Springfield City Council Goal Setting Session November 24, 2003 Page - 3 . Councilor Ralston asked about the status for getting the new police officers from the levy money hired and on the street. Springfield Police Captain Harrison said we are currently in the process of hiring all of those positions. He said they have lost a couple of staff that were not levy positions. The officers from the levy have been hired and they are in the academy and in training. However, they are not yet on the street. They are still in the process of hiring the clerks and dispatchers. He confirmed the funding for the training is covered by levy money. Councilor Ralston would like to see something in the media announcing these new hires so the citizens are aware. Councilor Woodrow asked if the Community Service Officers (CSO) had been hired and put in place. Captain Harrison confrrmed that they have been hired, trained and are on the job. Councilor Woodrow asked if a news release had been submitted announcing that these officers are out and on the job. Captain Harrison said they had not sent out a specific news release regarding the CSO' s. They have been mentioned in other news releases. Councilor Ralston asked about the status regarding the new fire fighters from the levy money and if the 28th Street Station was up and running. . Fire Chief Dennis Murphy said the graduation of the new firefighters will take place tomorrow, Tuesday, November 25 at 3:30pm in the Council Chambers. On Monday, December I at 9:00am there will be a ceremony to initiate full staffing of Fire Station # 3 on 28th Street. Discussion was held regarding the struggles the city faces year after year and the reasons for those struggles. THE PRESENT I. Review Proposed 2004 Targets and 2003 Carry-Over Targets. City Manager Mike Kelly presented the staff report on this item. Mr. Kelly referred to Attachment IV included in the agenda packet. This attachment states the 2004 Proposed Targets. He outlined some of those targets. Most of city time is spent on basic functions. The discretionary time is what is focused on for the targets. Staff wants to be responsive to new challenges that come our way, but financial issues need to be considered. He said that council can change or add target projects or delay some ofthem until next year. These targets could be adjusted again in the spring if needed. Councilor Ballew said one of our goals is to increase the city's assessed valuation. She has noticed a lot of targets in the development section. She asked if we have quantified what the development items would do for our assessed valuation. . Mr. Kelly addressed her question and acknowledged that council has addressed outcomes such as this in the past. The city alone does not determine the economic situation of Springfield. There are state trends, county trends, etc. which influence employment and economic conditions. There are a number of things we can try to do to bring family wage jobs to Springfield including the standards set by the council regarding development codes. Council may want to ask what the , Springfield City Council Goal Setting Session November 24, 2003 Page - 4 . outcomes from this organization should be in five years. He said staff could prepare trending information for council showing historical tax base increases and the relationship between the tax base and the new development codes that have been put in to place. Councilor Ballew said it is important to know we are making progress and to have a goal in sight. Mr. Kelly said census information can help council take stock of where we are in Springfield. Many cities ignore the census information, but it can be beneficial and a good source of information. He described using that information to show trends and to get a picture of the future. One of the goals of the policy makers is to look to the future and determine if the predictive future is acceptable. If council is not happy with the predictive future, they can choose the areas that need improvement and work toward a preferred future. Through council goals they can make some adjustments to make these changes. He discussed the League of Oregon Cities (LOC) conference and one of the speakers who discussed healthy roles for councilors in looking at the future. Councilor Ralston asked Fire Chief Dennis Murphy about part of the Fire & Life Safety proposed targets. He asked how many fire stations we have in Springfield and the proposed target of purchasing a sixth medic unit. . Chief Murphy said we currently have five fire stations in Springfield. He explained that there are three medic units on the street 24 hours a day, 7 days a week, one to send out-of-town for emergencies and one in the shop for fleet service. Those are the five medic units the Fire and Life Safety Department currently own. With all five ofthese utilized at once, there are often times when fire fighters must wait for an ambulance to answer a call. The sixth ambulance guarantees they are running three ambulances in town at all times. Often one or more may be ready in reserve, which is beneficial. Councilor Ralston asked where the sixth medic unit would be housed. Chief Murphy said they currently have an outdated ambulance that will be replaced by this new unit. There is room to accommodate placement of this ambulance. Mr. Kelly said this topic has had a lot of internal discussion. There is justification on the service standpoint for the purchase of an additional vehicle. Staff has been waiting to see about the possible annexation to the Willakenzie Fire District. The decision on whether or not to purchase this vehicle will come to council this spring. Councilor Ballew said the location of the station is probably secondary to the proximity of the ambulance. Chief Murphy said availability of the equipment is the main key. Location of the fire station building is driven by fire codes and insurance service ratings. It is always best to have the next best choice automatically available without having to wait for a vehicle that is farther away. Councilor Fitch said past councils have had directives to encourage higher value homes to be built. She asked if having bigger lots with higher level homes increase the tax base or is it more beneficial in regards to the tax base to build smaller homes on half size lots. She asked if . . Springfield City Council Goal Setting Session November 24, 2003 Page - 5 . commercial development or industrial development brings in more taxes than residential. She asked what would be the best way to increase our tax base. Councilor Ballew said the other half to that question is who uses the services. There is a balance. Mr. Kelly said those statistics are not available tonight, but staff can start tracking historical trends on building a tax base to develop strategies. Commercial and industrial are better for the tax base, but there needs to be affordable housing and high end housing to maintain a balance. Sometimes the economic goals are in conflict with the social goals. Council needs to be clear what their social goals are in order to meet the needs of the citizens. The long -term goals will determine the direction council wants to' go as far as development codes, etc. Councilor Fitch said there is no evaluation of the councilors or the city and how they are balancing those goals. Mr. Kelly said we could discuss these things two or three times a year to review council goals throughout the year. Getting guidance tonight is the first step. Councilor Lundberg said she agrees with evaluating our goals. She is interested in looking at the trends and being involved in the direction of those trends. The bottom line is how we grow and paying attention to how we grow. She is also interested in the demographics and who affects those trends. The target list outlines the tasks. Council needs to determine how, as policy makers, they can affect this and set the direction of the growth. . Councilor Ralston said he would like to see a computerized inventory for residential land study as well as an inventory for commercial and industrial land. Planning Manager Greg Mott said City Planner Kay Bork was preparing an annual report for the City of Springfield residential buildable lands. It was an expectation of Metropolitan Policy Committee (MPC) that a report would be made annually. Staff can track that information and present a report, but it must be done by hand. That is what Ms. Bork is working on at this time. He said they may need additional funding to create a more polished report with specialized software. Ms. Bork will discuss those options to council when she presents her report. Councilor Ralston said he would like to see that as a goal in either the Development Services Department (DSD) or Information Technology (IT). Mr. Mott said it is an obligation that DSD has to make an annual report on residential buildable land, so they will meet that obligation. They would also like to track commercial and industrial lands. This is something staff will be doing as a baseline budget work plan in DSD. Mr. Kelly said ifthis is something council wants to see on the proposed targets as a project, they can direct staffto add it to the list. . Councilor Woodrow would like to see quarterly reports on trends, specific trends that affect the overall quality of life. He would like to see an occupancy report from Springfield, Eugene and Glenwood. It is an important carryover goal to look at ways to implement a plan in Glenwood as well as the downtown redevelopment plan. He doesn't completely agree with nodal development and he expressed his concerns regarding nodal developments. He feels council needs a better . Springfield City Council Goal Setting Session November 24, 2003 Page - 6 . understanding how they can make nodal development unique to Springfield and still fill the requirements. Mr. Kelly said there are advantages and disadvantages with nodal development and council has directed staff to focus on a couple of areas for this type of development. He explained the process of taking one area at a time. He said the council will get a chance to discuss the high priority items on development which will be addressed by Development Services Director Bill Grile. With limited funds it is important to focus on the highest priority opportunity areas, while staying responsive to other opportunities that may come our way. Councilor Fitch asked if council would like a quarterly opportunity to look at an overview of the city and the goals council has chosen. Councilor Ballew suggested three times a year would be more beneficial. She said for the first meeting, council would like a good demographic picture of Springfield relative to ages and income levels over the past five years. Mayor Leiken said staff works hard for council and we can get demographic information from staff at any time. It is acceptable to call or e-mail staff when information is needed. He agrees with council's comments addressing the future and would like to move forward in this way. He discussed the Gateway area and the growth that has occurred in that location. . Councilor Woodrow asked what E.S.E.E. stood for. Mr. Mott said it was Economic Social Environmental Energy. Councilor Malloy asked if there was any information we could get from other cities that have moved services to districts as we discuss the fire district and library district. He would like to know the long-term affect in creating districts one at a time. Councilor Ballew said some areas create districts, but maintain the same administrative services. Mr. Kelly said the fire district is an annexation into a current district, not forming a new district. He said we can get information from our consultant from Emergency Services Consulting, Inc. (ESCI), Jack Snook and other sources, such as the League of Oregon Cities (LOC). He believes other districts, such as the Library District, would require a metro plan amendment. During that process there would be a lot of discussion from the public and elected leaders regarding the pros and cons of such a move. Creating districts is a tool to assist cities to be prosperous during tough times. Councilor Malloy said his concern is overtaxing the citizens with different districts having different taxing authorities. Mr. Kelly asked council for other comments regarding the upcoming work plan. Councilor Fitch said some departments are being very ambitious. She hopes they prioritize the targets allowing them to accommodate when other opportunities arise. . 2, Review Long-Range Financial Projection Overview and Develop Two-Year Budget Strategy. . Springfield City Council Goal Setting Session November 24, 2003 Page - 7 . Finance Director Bob Duey presented the staff report on this item. Mr. Duey referred to Attachment V included in the agenda packet. To assist in the discussion at tonight's goal setting session the finance staff has completed several charts. The intent is that the charts can be used to follow along during Mr. Duey's presentation on the current financial projections for the City's General Fund. The following charts were included: · General Fund Detail- FY 03 and FY 04 · General Fund Detail- FY 04 and FY 05 · General Fund Long Range Projections · 2004-05 Budget Reduction Analysis · General Fund FY 05 without Fire District · General Fund FY 06 without Fire District · General Fund FY 07 without Fire District · General Fund FY 05 with Fire District · General Fund FY 06 with Fire District Mr. Duey said the budget process has been continual because staff knew the shortfalls the city was facing. The Executive Team (ET) did some planning and developed criteria. It was determined the city needs a budget to go forward assuming there is no fire district. ET members wanted to make sure they were not too optimistic regarding revenue that has not yet been approved by council. They decided not to use one-time money such as Bancroft or Booth Kelly money. They have looked at it from an expenditure standpoint. Some revenues will increase, but nothing beyond the normal trend of inflation or increased activity. . Mr. Duey discussed some of the different funds and the issues of these funds. The General Fund is the primary driver of the budget because the other funds have a chance to fall into place over time. He referred to Attachment V included in the agenda packet which shows some of the trends from FY03 to FY04, the current year. He discussed the revenue increases and how they achieved those increases through fees and one-time money. Councilor Ballew asked him about the total taxes. Mr. Duey said there are only two taxes and he explained the decreases of those taxes. He discussed the factors that affected these tax drops, He said the growth rate has been declining over the last couple of years which has also affected the tax amounts. Councilor Lundberg asked how the Assessed Value (A V) of industrial property is calculated. Mr. Duey said they have a different formula which is calculated by the state instead of the local government. It is based on the value of the land plus the income producing capabilities of the company. It is a complicated formula. Mr. Tamulonis added to the response and discussed depreciation schedules regarding the building and equipment. Councilor Lundberg said the type of business we would want to encourage would have equipment with long lasting value or the ability to reinvest. . . Springfield City Council Goal Setting Session November 24, 2003 Page - 8 . Mr. Duey discussed the top ten taxpayers of Springfield and how their positions have rotated through the years. It is constantly changing. Councilor Woodrow asked if the increases in Fire and Life Safety and Police are standard or if it is due to the recent union contract agreement. Mr. Duey said it has to do with personal services. They have had a greater than Consumer Price Index (CPI) increase in their budget over the last several years due to health insurance payments and wages. Labor contracts affect this increase as well. He mentioned other factors such as the forfeiture program through Interagency Narcotics Enforcement Team (INET) which could affect the increases. Mr. Duey said Intergovernmental Agreements (IGA) are state shared revenues which are fairly stable, but there can be big ups and downs due to grants. He said there may be fluctuations due to the types of programs occurring during that year. He also discussed Springfield Utility Board (SUB) and Eugene Water and Electric Board (EWEB) revenue for in-lieu of taxes. He said we may see a bigger drop in FY05. This year may be over-budgeted because it was created eighteen months ago when it appeared interest rates would improve along with the economy. Staffhas been more conservative in their FY05 budget. He discussed the different departments and how they created their budgets. He explained the trends and how those affected the FY05 budget. He discussed the charts on Attachment V, page 3, showing the projection from FY04 to FY05. . Mayor Leiken asked how long Sony would remain in our tax base. Mr. Duey said we do not have an estimate of that until the state informs us. The property will remain on our tax base for FY04. Councilor Fitch asked about Triad and McKenzie Willamette and when they would be on the tax roles. Mr. Duey said they would be starting their tax payments this year which would put them in the budget for FY05. Discussion was held regarding the assets of that property and the impact that would have on the tax revenue. Mr. Duey said one of the changes is the decrease in revenue due to a decrease in the use of reserve money and property sales. He said we did use reserve money and land sale money last year, but do not plan to use those revenue sources next year. He noted the increase in the FY05 budget and that a large percentage of that is from the labor contracts. The contract amounts for the unions for the next three years is now known. Councilor Ralston asked how many Full Time Employees (FTE) are funded with $1.2M. Mr. Duey said it is approximately 15 FTE. Mr. Kelly said during the time the levies are active, we cannot reduce personnel in frre and police. Council has also determined that personnel cuts should not be made in DSD. That leaves only a few departments left to absorb those cuts in personnel. In the past, cash reserves have been used to decrease the number of personnel reductions needed. These are part of the issues involved when reducing personnel only. . Councilor Woodrow asked how much the $I,2M related per thousand. Mr. Duey said it would represent about forty to forty-five cents per thousand. . Springfield City Council Goal Setting Session November24, 2003 Page - 9 . Mr. Duey referred to the chart at the bottom of Attachment V, page 4 which shows some of the one-time money used. Councilor Ballew asked about the equipment replacement fund and if we can afford to continue this process. Mr. Duey said they are looking at that issue. He said we are somewhat behind in funding all of these replacement funds. Fire and Life Safety is behind on their fire equipment, but is fully funded for the EMS equipment. Police is nearly fully funded for vehicle replacement and the Information Technology (IT) Department is fully funded for electronic hardware. Staff is considering bringing this back to council for review. Mr. Kelly discussed the reasoning for these vehicle replacement funds. It does cause some strain on our budget, but the levy has helped. Council may determine we have to change that policy. Councilor Ballew said other cities have used another entity to lease equipment instead of owning equipment. Mayor Leiken asked Mr. Duey to give an update on the Qwest lawsuit. . Mr. Duey said the lawsuit will remain ongoing for a couple more years. The city has set aside FY04 money in that budget. Qwest pays the city about $380,000 a year. In year one Qwest withheld payment, but repaid approximately $350,000 to the city, with the stipulation that if we lose the lawsuit the city would have to pay that money back to Qwest. He said year two, FY03 and FY04, the city took money from the sale of the sports center and set it aside in reserve for that possible payback. At the end of this year we will have approximately $900,000 in that fund. We haven't reduced the budget from the Qwest lawsuit, but have saved a certain amount for contingency. Staff recommends not putting additional money in that account next year, leave the money that is there and continue using incoming funds from Qwest. Mr. Kelly discussed the $IM in this account. He said there is no sense in reducing services and cutting staff on the chance we might lose the lawsuit. Staff's recommendation to council is not to impound the additional $400,000 and cut that amount in services to the community. It is the council's decision. Mayor Leiken asked about the amount of the internet bill and franchise fees. Mr. Goodwin said the bill called the Internet/Tax Freedom Act is currently stalled. It appears there is a reasonable chance it will not pass this session. When it does pass, and he believes it will in some form, the immediate impact will be small, but the long-term impact will be large. He explained the exemptions from taxation regarding internet traffic. Even as this legislative battle continues, most telephone companies are beginning the move to transmitting all telephony over internet traffic, If that happens and the bill becomes law, all of our telephone franchises are at risk. Similarly the cable television companies are beginning to look at interactive television, which would also be offered over the internet protocols rather than cable television. That would take away the $400,000 a year in cable television revenues. . . Springfield City Council Goal Setting Session November 24, 2003 Page - 10 . Mr. Duey said staff is recommending, without the fire district, without new revenues and without using one time transfers, to cut $1.2M from the budget. Each department created reduction scenarios for 3 percent, 6 percent and 9 percent. Fire and Life Safety and Police created reduction scenarios of 3 percent and 6 percent only. He discussed Attachment V, page 5 which outlines these scenarios. He explained some of the issues with some of these cuts. He said staff is looking to council to determine which direction to take regarding some of these cuts. Mr. Kelly said this is a realistic list of reductions. Councilor Ralston said it would be difficult to decrease staffing from Fire & Life Safety, Police and DSD. Without cuts in those departments the reductions from the other departments would only amount to about $340,000 which is very short of the $1.2M. Mr. Kelly said there are options for council to consider for balancing the remainder of the budget such as revenue sources, bridging with reserves, and reductions. Staff would like direction from council whether or not they want to use all three sources for their reductions. Councilor Ralston asked if we have any taxing authority left. Mr. Duey said we do not. Councilor Woodrow asked which fund is charged for the two FTE for the Land and Drainage Alteration Permit (LDAP) positions. He asked if the fees would essentially pay for the two FTE. . Mr. Duey said the two FTE for the LDAP position were not part of the General Fund, but part of the Sewer Fund. He said 21 percent fee increases will be split between the General Fund, Street Fund and Sewer Fund. He said there could be some gain over the amount the fees bring in and the cost of the two FTE. Mayor Leiken called for a ten-minute break at 7:25 p.m. Mayor Leiken reconvened the meeting at 7:35p.m. Mr. Kelly discussed the options council has in preparing next year's budget. He would suggest if council feels Springfield has better days ahead, and they are interested in creative solutions such as the Fire District, they use all three resources. If we cannot afford the future we want to have, we need to consider downsizing the organization. That is the key issue. Mayor Leiken said we cannot make reductions in just one or two departments because they are all connected. You cannot sacrifice one department for the betterment of another. He said the city needs to look broadly at what we can do. We need to look at Measures 47 and 50 as an opportunity. He said council needs to look out ten to twenty years from now. We can come out ahead, despite our financial difficulties at this time. Councilor Malloy asked about the six and nine percent decreases in Information Technology (IT) in fringe benefits. He asked if those were just the benefits associated with the position reductions. Ms. Pappas confrrmed they were. . Councilor Woodrow said he is not in favor of getting rid of the equipment replacement fund. It is good business to keep that account in preparation for the future. We may look at how we can use it differently, but it is important to keep, The city would not be able to meet the necessary . Springfield City Council Goal Setting Session November 24, 2003 Page - 11 . reductions without fire and police unless other options are found. He said it is not realistic to look at the three, six or nine percent reductions in programming or staff. This will always be an lssue. Councilor Ralston asked what realistic amount of fees could be raised and if that is already targeted. Mr. Duey said that is an open discussion. There are a lot of fees that have been proposed. Some are not politically feasible while others can be raised. He noted that the 21 percent fee increase in planning is not included in this budget. They do not know the impact the fee increase will have on the General Fund until it is actually in place. Councilor Ralston asked what we had in reserves. He would like to use all three areas to meet the budget. He would like to know the amount in reserves so those decisions could be made. Mr. Kelly said that staff is looking for direction from council regarding which sources to use for balancing the budget. They do not need exact figures from council at this time, but a general idea perhaps in percentages. . Councilor Ballew asked how much we have in reserves. Mr. Duey said the two primary reserve funds include Booth Kelly and the Bancroft Fund. Booth Kelly is an Enterprise Fund and needs a certain reserve to keep its capital assets fixed. There is approximately $600,000-800,000 available from that account, after capital needs are met. The Bancroft Fund is earmarked for potential capital development reserves. There is about $2.8M for operations. These funds could be used at their current rate or at an increased amount, depending on council direction. Councilor Ballew said the $1.2M deficient is about five or six percent of the General Fund. She said using all three resources is the best approach. After using those resources, if there is still a void, council will need to look at other options. She said it comes down to service priorities and some things may have to go. The citizens may not see the problems the city faces. She believes using the three resources is the more balanced approach. Councilor Fitch said she goes back to negotiations with the fire district on Tuesday, November 25. That is another potential avenue for funding options. She said with the fire district, some tax base could be freed up. She asked if that freed up money is something the council wants available for use and if so how would it be used and when would they commit it to the budget. She asked if council would like to use the three resources available now and then use 40 cents of the freed up money during the second year to stabilize services. She would like to know how council feels regarding this issue. Councilor Ralston said he is not opposed to the fire district, but believes the voters need to make that decision through a vote. Councilor Fitch said we have increased fees in DSD over the past five years. As the council, those types of decisions are made without a vote on some of these other fees. . Councilor Ralston said it is more the perception by the public. By making this decision without their vote, we are taking away the choice for them to vote on the levies again in four years. . Springfield City Council Goal Setting Session November 24, 2003 Page - 12 . Councilor Ballew said from the city's perspective the frre district makes perfect sense. It allows cost avoidance in the future because of the high cost of safety employees' salaries. From a taxpayer's standpoint it only works if you pay more taxes. It is a difficult question. She said from the testimony they have received from the seven citizens who appeared to speak, the fire district is something citizens feel they should be able to vote on. Councilor Malloy said we need to be careful when we use the term freed up tax money because although it is freed up for the city, it is not freed up for the citizens. He said we need to look at all avenues to see where cuts can be made now so we don't end up with a higher deficit. We need to look at additional revenue also because we cannot continue to cut and still provide service. He feels the fire district is the right way to go, but we need to be careful how the freed up money is spent. Councilor Woodrow said $2.40 per thousand is used for fire services. He asked ifWillakenzie would use the same amount for their taxing figures. Mr. Duey said in discussing it with Willakenzie last week, they determined it would take about $2.09 of our permanent tax base to operate Willakenzie plus the .36 from the levy which totals about $2.45. Councilor Woodrow asked if we took that out of our current tax base and kept the police levy, what would be our deficit. . Mr. Duey said we would be in about the same place because the city wants to be tax neutral the first year. In year two and three it would be more detailed with internal services and other issues that would make it more difficult to estimate at this time. The reductions we would have to make for the $1.2M deficit would then dictate what would happen in year two and three. Councilor Woodrow asked if we took a 40 cent increase from that $2.40, would that cover the $1.2M. Mr. Duey said it would come close. He discussed the use of one time dollars to bridge ifthe city were to go to a fire district. Councilor Woodrow asked if it would be conceivable if we went to a fire district to take $2.40 and give it to Willakenzie the frrst year, not charge the taxpayers an increase this year and possibly a 20 cent increase next year plus cuts to balance this budget. Mr. Duey said council would want to take the balanced approach the first year rather than taking all of it from reserves. Looking ahead to the 20 cents would change the number of reductions. Councilor Woodrow asked if it would be feasible to try this the first year as tax neutral, not knowing the outcome of the fee increases and the possibility ofthe A V. Mr. Duey said staff could work on that option. . Councilor Woodrow asked council if they thought this would still need to go to the voters if we kept it as a tax neutral exchange this first year. , Springfield City Council Goal Setting Session November 24, 2003 Page - 13 . Mayor Leiken said that we need to give the public information they can understand regarding the fire district. He said nearly 60 percent of all fire departments in the state are run by fire districts and it is moving more in that direction. The information should be pointed at consolidation and the savings it can hold. He said there was not enough detail on what the future of the fire district would bring to the City of Springfield. Too much focus has been on the freeboard. He said the council understands the details of the taxes. Citizens need to know of the long-term savings and the benefits it would bring to the city and the metropolitan area. Councilor Fitch needs direction from the council as she goes into negotiations. He discussed the larger cities that have joined fire districts in the Portland area. In years to come, most of the cities in Oregon will be part of a district. We need to look at the future. He discussed some of the other benefits of a fire district. Councilor Ralston said there are a lot of citizens who believe that government spends too much money. Councilor Lundberg said her first reaction is to be opposed to the fire district, but she is not totally opposed to the fire district. She said Eugene and Springfield need to merge to get the economy of scale. She discussed the benefits of special districts in creatively using funding. She is not a promoter that we are the first to join the fire district, but would prefer we join with Eugene. She is not convinced that it would be beneficial in this scenario. She thinks voters will remonstrate if council approves this without a vote. . Mr. Kelly said bringing it to a vote could be the right thing to do. He said ifthe city chose to spend the money on a special election for this item, and it is then remonstrated by the opponents, it would then have to go to another election at additional cost. He gave examples of how this could go and the costs involved. Councilor Fitch said she would welcome a remonstrance if that is what the citizens want. She said it would be ideal to have Eugene and Springfield merge together, but that may not be feasible until Springfield merges with Willakenzie. She discussed the City of Eugene and their upcoming work session where they will be discussing fire districts. She said that each individual citizen looking at their tax bill is critical. She said there is a confidence in the council by the citizens. They need to hear from council what they plan to do with the freeboard and the deficit it could help to assist. She said it is important to educate the public on the savings and remind them of the levies that will run out in tlrree more years. She said council needs to be up front with the citizens. Mr. Kelly said he agrees it would be ideal to have all districts come in together. We are not creating a new district, but joining an existing fire district. He discussed the difference between annexing into an existing district and creating a new district regarding the metropolitan plan policy. If council chooses not to go ahead with a fire district, but to wait to see if Eugene and Lane County would be ready to join a district, that may take up to three years. He said there is not enough reserve to bridge for three years to see if a district is forming. He said there are other districts that may join with us to assist in the savings and perhaps Eugene would join at a later date. Councilor Ballew said if the Lane County Boundary Commission finds annexation is permissible, citizens have forty-five days to remonstrate. If citizens remonstrate and it goes to a vote, it is then binding. I . . Springfield City Council Goal Setting Session November 24, 2003 Page - 14 . Mr. Kelly said that is correct. It could be less expensive to wait and have the citizens remonstrate to bring it to the vote. Councilor Ralston said as long as it is tax neutral, he does not oppose this option. Councilor Ballew said we cannot remain tax neutral forever. Councilor Fitch understands council would not put it to a vote, but allow citizens to remonstrate. She also said council would like the frrst year tax neutral and take a very small amount the second year. Councilor Ralston said that needs to be made very clear to the citizens. Councilor Ballew suggested that we may not remain tax neutral in order to maintain public safety. She said we may want to use some of the freeboard the first year to maintain public safety servlces. Councilors did not agree with that plan. Mayor Leiken asked about the fire and life safety levy and what would happen to that if the city merged with Willakenzie. . Mr. Duey said the city has the option of not levying our full taxing authority. IfWillakenzie levied the full amount to cover the $2.40, the city would not levy our .36 cents. Discussion was held regarding the reduction amount and use of the fire levy money only for fire services. Councilor Woodrow said we have to maintain personnel to provide services. Councilor Fitch noted the number of cuts that have been made over the years 'and the increased expectations on staff from the state and federal government with regulations. She does not have a problem recommending that 60 percent comes from one-time reserves, if next year some freeboard money could be used. She does not, however, want to take our reserves down too low. Councilor Ralston said we need to make cuts and six percent is a good place to start. He asked if the fee increases are reflected in this budget. Mr. Kelly said they need to know council's philosophy regarding the freeboard if the city merges with the district. This needs to be determined before going to the Boundary Commission in February so they can articulate what council plans to do with the taxing authority that remains. Staff needs to know when going into budget preparation whether the council wants to use all three resources and the percentage of each resource to be used. At that point, staff will come back with details and a defmite proposal in the spring for the budget committee. Councilor Ralston said he continues to support remaining tax neutral the first year and using a limited amount in the following years. . Councilor Woodrow asked if they could ask staff to take 60 percent from one-time funds and let staff determine where else to take the remainder of the money. , Springfield City Council Goal Setting Session November 24, 2003 Page - 15 . Councilor-Ballew asked about the remonstrance vote and how that would affect the date oftax changes. Mr. Kelly said that is not clear yet. They are working with Jim Gangle from the Lane County Assessor's Office to find that answer. Mr. Duey said if the Boundary Commission makes their decision and notifies the Assessor by March 31, collection can begin for the tax year. That is assuming the remonstrance election is held in May. If the remonstrance is late and goes past the May election, it is not clear when the taxes could be collected. Discussion was held regarding the taxing implications if the remonstrance receives a vote against the fire district. Legal staff and Mr. Gangle are researching this issue for an answer. Councilor Fitch said on the condition this goes to the Boundary Commission, the annexation is approved, the citizens remonstrate and it goes to the May ballot, council would direct staff to use no more than 60 percent from one-time reserves and the other 40 percent split between reductions and increased fees. Councilor Ballew said she would rather have staff determine the best split without council giving a set percentage per area. . Discussion was held regarding the Chambers' money. There is approximately $2.3 million remaining. Mr. Kelly asked council which of the other agenda topics they would like to discuss this evening. Council chose to discuss the Economic, Development Opportunity Areas item. They will postpone the Library District Formation item and the Airport Special District Formation item until after the first ofthe year during a work session. 3. Prioritize Economic Development Opportunity Areas. Development Services Director Bill Grile and Public Works Director Dan Brown presented the staff report on this item. Mr. Grile referred to Attachment VI included in the agenda packet. Springfield has several major development/redevelopment opportunities. The city has more opportunity than it currently has staff and financial resources to allow capitalizing on all of these simultaneously. This creates a problem, but not a bad one. As the condition compels the city to now carefully evaluate each opportunity against the others in order to set priorities and thus ensure the best possible allocation of the city's limited staff and financial resources. Based on adopted council goals and the collective thinking ofDSD and PW staff, six major opportunities for development/redevelopment are identified on the matrix included in the agenda packet. These are: . · Glenwood Urban Redevelopment Opportunities · Gateway Development Opportunities · Downtown Redevelopment Opportunities · Mohawk Nodal Development Opportunities , Springfield City Council Goal Setting Session November 24,2003 Page - 16 . . Booth-Kelly Mixed-Use Redevelopment Opportunities . Jasper-Natron Development Opportunities In addition, the matrix identifies a seventh item called Immediate Response Flexibility. Staff believes a new focused effort should be undertaken to formalize Springfield's and partner agencies' response capability when any large, immediate development opportunity should present itself while the city is busy implementing other plans. This is essentially "readiness" preparation, , positioning the community on short notice to pull together the planning, regulatory and utility service providers that can provide the kind of essential information needed by companies seeking s Springfield site for their undertaking. This one item does not need to be given a priority because we intend to accomplish it with existing resources, provided the City is able to avoid service reductions in DSD and PW and is able to maintain the experienced, qualified personnel on staff with each. DSD and PW have a sense of how Springfield's opportunities might be prioritized to capitalize on those which are positioned to yield the most fruit quickly, and those representing longer term opportunity. That has been intentionally left off the matrix to assure this thinking doesn't interfere with the decisions council makes tonight regarding which opportunities should be given the greatest and most immediate city staff and fmancial support. Staff is prepared to share its opinion and offer additional information about each of the items listed if asked. . Mr. Grile would like to encourage discussion around a tax increment financed urban renewal program for downtown and for Glenwood. He said with this type of program, taxpayers don't pay more, but the tax dollars they pay are redirected towards certain urban renewal activity. It does require a vote. Councilor Ralston asked if staff had recommendations for priority of these projects. Mr. Grile said the Mohawk Nodal Development Opportunities would be staff's first choice. It is less complex and costly than many ofthe other projects. The Gateway Development Opportunities is ongoing with a lot of things going on and seems to be taking care of itself so there is no need to prioritize that area. Glenwood and downtown both hold opportunities. There are different components with each and both need a large amount of funding and planning. Glenwood requires a lot of infrastructure work. Staff could prepare a presentation on urban renewal to bring to council at a later date. Mayor Leiken said Booth Kelly is also related to downtown and Glenwood and he would like to include that in the staff presentation. Councilor Ballew asked if staff sees the Booth Kelly area as a separate project. Mr. Grile said staff does not see Booth Kelly as high a priority as the others right now. He said, however, there is a relationship between the Booth Kelly property and downtown. He said whatever is done with Booth Kelly and downtown should work together. Mr. Grile said Jasper Natron is less of a priority due to a lower return of investment. . Mayor Leiken asked for an update on the Jasper Road Extension. . Springfield City Council Goal Setting Session November 24, 2003 Page-17 . Economic Services Manager John Tamulonis said the information they have from the county is that the first phase from Main Street south to 57th or 58th Street should be started in the spring. The next phase is pending a wetland litigation plan approval by the Corps of Engineers. That may be approved this spring or summer, but there is no guarantee. He said if the Jasper Road Extension is approved, that would allow the additional planning for development to occur. There could still be a longer development process due to the interchange on Main Street. Councilor Fitch said she would place the opportunities in the following order: I) Mohawk Nodal Development; 1.5) Glenwood Redevelopment; 2) Downtown Redevelopment; 3) Booth Kelly Redevelopment; 4) Jasper-Natron Development, staying prepared if a developer comes forward. Councilor Ralston agreed with Councilor Fitch's proposed list. Councilor Woodrow asked staffs opinion regarding the civic center. Ms. Pappas said with the recent news regarding the Clarion Hotel being razed, a civic center is imperative to the community. She said that project would fall under one of these areas listed. Her opinion is that it would be a catalyst for redevelopment wherever it is located. It would do the community the most good in downtown or in Glenwood. It could have a broader impact on the community if it was placed downtown. Councilor Ballew asked Mr. Duey if General Obligation financing was outside the cap. . Mr. Duey said bond issues such as that are outside the cap. Councilor Woodrow would like a work session regarding urban renewal after the first of the year. Councilor Malloy agreed we need to have a plan regarding infrastructure in the Glenwood area. Councilor Fitch said when the Glenwood plan was first presented to council in June, it was the complete redevelopment and very expensive. She would like staff to come to council with something that could be addressed. It could be something similar to Gateway, where the city purchased a large parcel of property and moved forward to create growth. Mr. Grile said City Planner Susanna Julber would be bringing a Request for Information to council for their December 8 work session. Mayor Leiken said Glenwood is under our planning jurisdiction, but the majority of it is county property. When Tom Lininger was County Commissioner, he was very much in favor in moving forward on an urban renewal district with the county. He said there is also interest from other County Commissioners. He said there was discussion regarding a possible off-ramp in Glenwood and feasibility study funds, which will be discussed during the United Front trip in March 2004. Representative Peter DeFazio is in favor of this off-ramp. The staff for both State Senators are also very interested in this project. Our challenge would be working with Oregon Department of Transportation (ODOT). Councilor Ballew said this is one project that both the City of Springfield and the City of Eugene support. . . Springfield City Council Goal Setting Session November 24, 2003 Page - 18 . Mayor Leiken said both the urban renewal district and the feasibility study of the off-ramps will be important catalysts in redeveloping Glenwood. Councilor Lundberg agrees with the list that Councilor Fitch proposed. Booth Kelly is a huge piece of what makes the whole area usable. She agrees that the off-ramp to Glenwood is very important because accessibility is a key. She discussed the other areas that could be accessed by these off-ramps. Mr. Grile said he is encouraged by council's comments, particularly their understanding that resources are needed to accomplish these goals. Staff will bring a report to a work session on urban renewal. Mr. Brown said there are some dilemmas facing staff regarding public infrastructure in Glenwood Urban Redevelopment, outlined on Attachment VI, page 2 included the agenda packet. City Engineer AI Peroutka will bring the annual Capital Improvements Program update to council in February. In this report, Mr. Peroutka makes proposals of infrastructure needed and when it needs to be constructed. Mr. Brown discussed some of the timelines for these projects. Some of these decisions need to be made soon due to deadlines to spend specific money on certain areas. If it is not spent prior to those deadlines, there is a chance the city would lose that money. Mayor Leiken discussed the Lane County Dump. When planning the Glenwood area, the location of this site will need to be addressed. . Councilor Fitch said this has been addressed at United Front. Our lobbyist said federal money may not be available for this, but suggested talking with Lane County and the City of Eugene regarding this issue. Councilor Fitch said as she goes into negotiations tomorrow morning with Willakenzie Fire District (WFD), she would like council's thoughts on retaining ownership of the land containing the fire stations. WFD's attorney, Steve Cornacchia would like a clause in the agreement that if the land was not used to build a fire department the city would get it back. She said City Attorney Joe Leahy suggested a value be placed on the property. It is not unusual for cities to retain the property. She needs direction from council. Councilor Woodrow said if we annex to Willakenzie we are giving them a fire department, allowing them to tax and stepping out of our current contract with them. He said we should retain the property. Willakenzie could lease it back at a fee. Councilor Fitch said there are five stations at this time and one in particular may need to be replaced and possibly moved. Councilor Malloy said he has an issue of ever having to pay to get any land back. Preference would be for us to retain that property and lease it to them at a low rate. Councilor Fitch said Mr. Cornacchia feels they are assuming the assets to run the district and also assuming the wards which include an under-financed replacement fund. . Springfield City Council Goal Setting Session November 24, 2003 Page - 19 . Mr. Duey said as part of Mr. Cornacchia's issue was that as they become more responsible as the city grows and they need to relocate stations, owning the land would give them the ability to use the sale of the property as an asset to purchase other sites. Councilor Ralston said he can see their point. If it is a deal breaker we may need to go forward. Mr. Spiry said there is something to be said in giving them a transitional piece of property. Councilor Fitch said they can't give them the property at Gateway, but perhaps the property on Fifth Street. Mayor Leiken suggested not offering that one piece of property unless absolutely necessary. ADJOURNMENT The meeting was adjourned at 9:18 p.m. '" Minutes Recorder - Amy Sowa . ATTEST: City~~ .