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HomeMy WebLinkAboutMinutes 07/15/1991 2023 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington July 15, 1991 CALL TO ORDER - Mayor Sargent called the special meeting of the Port Angeles City SPECIAL MEETING Council to order at 6:15 p.m. ROLL CALL: Members Present: Mayor Sargent, Councilmen Lemon, Nicholson, Wight, and Cornell (arrived at 7:00 p.m.) Members Absent: Councilmen Hallett and Ostrowski Staff Present: Manager Pomeranz, Deputy Clerk McFarland, K. Godbey, and D. Sawyer. Public Present: Judith St. Claire, Clallam County EDC WORK SESSION: Mayor Sargent announced the purposed of this special meeting was a worksession on the matters of Economic Development Planning and Financial Management Policies. FINANCIAL MANAGEMENT Katherine K. Godbey, Finance Director, introduced the Financial POLICIES Management Policies which were part of the City's 1991-1992 Biennial budget. Ms. Godbey explained the three goals of the financial manage- ment policies. These goals are: 1) to maintain an adequate financial base; 2) to be able to withstand local economic trauma; and 3) to maintain a good credit rating. Ms. Godbey pointed out that Council would decide what to do with any~that might occur. Councilman Lemon expressed concern about the way the Council's goals and objectives are formulated without a great deal of considera- tion given to the financial impact of these goals. Councilman Wight suggested that Council formulate their list of goals, then request gross estimates of cost before reaching a final decision as to which goals are realistic. It was pointed out that 67 % of our budget is personnel salaries. The City's greatest resource is staff, which can be reallocated to complete goals (i.e., a projected goals to redo sidewalks proves cost prohibitive, personnel for the sidewalks project can be reallocated to the next project.) Councilman Lemon asked for clarification of Budget Responsibilities item three. "The Finance Department assists department directors in identifying budget problems, formulating solutions and alternatives, and implementing corrective action approved by the City Manager.' Manager Pomeranz and Ms. Godbey explained that in the past the budget preparation process had been very much like negotiating with each department to reduce their wish list. This year, each department head will be given ~tbase budget to allocate, plus they will be asked to submit a Capital Improvement budget. The departments will be asked to submit a CIP budget at 95%, 100% and 105% of the 1991 budget. It is the Finance Director's responsibility to alert the City Manager if any Department is out of budget limits. Manager Pomeranz pointed out that Public Works revenue is 30% over budget predicted because of plan check fees, however, they have also expended funds for outside plan check services. Manager Pomeranz said that Finance should be responsible for overseeing all department budgets. Ms. Godbey gave the definition of a "balanced budget* as "the revenues earned in one year equals the expenditures. That is, we don't spend more than we take in. * -1- 2024 CITY COUNCIL MEETING July 15, 1991 FINANCIAL MANAGEMENT Revenue Policies POLICIES (Cont'd) Ms. Godbey pointed out that the Finance Department will always make conservative estimates of revenue because we have no control over our income. We can only control our spending not our income. Ms. Godbey clarified the term 'user charges#. The City has two types of user charges. First, are the user charges incurred by the public, like fees for using the landfill or the pool. Second, are the charges incurred by each City fund budget to support all indirect activity, i.e., Informa- tion Systems, Finance, and depreciation of capital assets. Councilman Lemon questioned how many landlords were responsible for rental utilities and why we didn't just follow it through regular judi- cial channels. Ms. Godbey will compile that information. As part of the Capital Improvement Projects (CIP) budget process, staff will be trying to attach dollar amounts to projects and make this part of the formal budget. Councilman Wight cited a new State law regarding fiscal responsibility of cities toward expansion. He urged careful review of this law before the budget and urban growth decisions are finalized. Long and Short Term debt are both governed by statute from the State level. Short term debt is defined as a term of not more than one year. Councilman Lemon questioned whether we have a clause to prevent reliever of short term debt financing at the end of one year. He wants to make sure these debts are paid off within the given timeframe. Ms. Godbey responded to a questions from Councilman Wight that this type of financing has been occurring, normally internally, but has just never been articulated before. Councilman Lemon wants a more definite policy on short term debt concerning timeframe and reliever. Councilman Lemon questioned whether capital expenditures such as for fire trucks were long term debt. Ms Godbey responded that they were if we financed them. Fund Balance tells how stable a fund is. It is the same as fund equity, or the equity in your home. As part of the Financial Management Policy, a target fund balance of 10 % is established. Councilman Wight questioned the timeframe. Ms. Godbey clarified this in that any fund balance will fluctuate monthly, but that we really look at it annually. An Investment Policy will be submitted to Council for adoption at the August 6 meeting because this policy has not been updated in several years. The Accounting Policies establish the reporting procedures accounting will use to keep Council abreast of financial conditions.  Councilman Wight asked about the self-insurance~and whether it was adequate. Manager Pomeranz answered that the self-insurance fund would be review very carefully when the new Risk Manager is in place. Councilman Cornell asked about deficits, what do we do if there is a deficit. It was the opinion of all, that in such a case the deficit would have to be made up the next year. Councilman Lemon said that if we go out and buy a piece of property it should be talked about in Council, and what about if we sell property. Ms. Godbey explained that such real estate transactions had their own fund and that those monies were accounted for separately. Mayor Sargent stated that the Council were very appreciative that Manager Pomeranz and Ms. Godbey are so conscientious. In summary, Manager Pomeranz stated that he would like to submit the Financial Management Policy to Council at the August 6 meeting for adoption. Council authorized this to be put on the agenda. 2025 CITY COUNCIL MEETING July 15, 1991 ECONOMIC DEVELOPMENT Mayor Sargent opend the discussion by announcing the City has entered PLANNING into a joint agreement with the County and Port to hire an Economic Development consultant. The purpose of this meeting is to decide what the City wants from this venture rather than totally subjugating our- selves to the County and Port which appear to lean toward the timber problem. Councilman Wight questioned whether we have a City agenda to push, stating that it did not appear so. Mayor Sargent suggested that there might be some things that the political entities, i.e., the City of Port Angeles (and the cities of Sequim - and Forks) can do that others, like the Port, cannot because the cities are empowered to do so and because we have the resources like staff. Mayor Sargent also said the County had already hired somebody to deal with the timber industry. Councilman Nicholson pointed out that that person was hired by the Timber Task Force not by the County and that the City is as much a part of this task force as the county. The Timber Task Force is paid for by grant money that is administered by the County. Councilman Cornell said that the County looks at the timber industry, the Port other exportables, but that the City needs more. Business revitalization is an important thing for Port Angeles. Councilman Lemon echoed this adding that we need to address this issue very seriously, especially regarding the Mainstreet Program. Councilman Comell pointed out that Port Angeles is actually the commercial hub of Clallam County. Manager Pomeranz sees an erosion of this starting with the completion of the new Ernst store in Sequim. Mayor Sargent proposed examining the barriers to industrial/ commercial growth. Councilman Nicholson questioned Councilman Cornell as to why we have so many vacancies downtown. Councilman Comell responded that he felt absentee owners and the size of the buildings (the larger buildings are the ones vacant) were the major contributing factors. Councilman Nicholson asked if parking is a barrier. This question sparked a general discussion as to the parking problem, whether it is real or perceived. Consensus was reached that some of the parking drawbacks might be caused by the zoning codes and that the codes should be reviewed to see if they make sense. Councilman Lemon suggested that as part of the UGA process in addition to examining the residential issues, we need to consider a major shopping mall. He feels that Sequim is going to take advantage of this. Councilman Wight added that while talking about downtown we needed to talk about traffic, commercial, residential, and tourist. He pointed out that because of congestion on Lincoln, Race, First, and Front streets people are going across Boulevard and avoiding downtown. Councilman Comell stated that between 4:45 p.m. and 5:45 p.m. no -- business was conducted on First street because of the traffic. Councilman Wight supports the first plan of action to be completion of Boulevard to intersect with Golf Course Road, and then to get 101 to relocate to this route. Councilmen Nicholson and Cornell support establishing a bypass route as part of the agenda. Manager Pomeranz summarized the major items to be examined to encourage business in Port Angeles such as traffic and codes. Then questioned, what else? Judith St. Claire, Clallam County EDC, sug- gested training classes run in conjunction with Peninsula College. One suggestion was to reactivate the Joint Committee for Transporta- tion. Another was not to consider where a mall would go, but how to get it downtown. This suggestion brought forth conversation of the many towns which have tried turning their downtown areas into shop- ping malls and had very unsatisfactory experiences. Judith St. Claire -3- 2026 CITY COUNCIL MEETING July 15, 1991 ECONOMIC DEVELOPMENT also pointed out that although Forks appears to be well on their way PLANNING (Cont'd) with goals and agenda, they have been working on the plan for over two years. Mayor Sargent feels we don't capitalize on our waterfront. She would like to see a park on the waterfront and some type of timber museum. Councilman Nicholson suggested a park on one end and a mall at the other. Councilman Cornell suggested the park as a buffer. Ms. St. Claire stated we need to promote Seattle business to come here for shopping. Stores need to be open late or on weekends. Mayor Sargent echoed that being open 9:00 to 5:00 that businesses only cater to the unemployed. Ms. St. Claire suggested the possibility of moveable parks such as those being used in Aberdeen. Manager Pomeranz summarized the needs of the downtown area as: revitalization, retention, and attraction. Councilman Cornell added that the lack of housing is a hinderance to attracting business to Port Angeles, one that he hears voiced more and more. This lead to a general discussion on housing with comments on monies available in different places, the recent housing survey conducted by the EDC, and the fact that even upscale housing created vacancies in lower cost housing. Councilman Wight and Manager Pomeranz qu.~k,a,~d '~= nc.~l fc.r a four-year college. Councilman Wight stated that conversion of two-year community college degrees to bachelor degrees was very low (one rea- son being economic); every place there is a college, there is a terrific amount of synergism for other business; and the higher education is a nice clean business. Ms. St. Claire stated that Port Angeles was just eliminated from consideration as a site for relocation by one industry because we did not have a four-year college. Councilman Nicholson added that we also need more opportunities for vocational training. Currently we can teach vocational classes, but we can't certify students, because of a lack of certified instructors. Councilman Comell felt the biggest issue,, tourism, had not been addressed. Councilman Nicholson questioned whether we could enhance the area around the ferry dock. Discussion then turned to walk-around tourists, waterfront revitalization for small towns, and a retirement center. Councilman Wight asked about the Highway 101 Coalition, whether anyone knew what had happened to it. Ms. St. Clair explained that it had died in budget hearings at the State, but that there was hope of it being revitalized at the next budget session. SUMMARIES Barriers (Downtown) Goals 1. Absent owners 1. Business retention 2. Parking (real or perceptions) 2. Business attraction 3. Code review 3. Affordable housing* · Parking 4. Education facilities · Building · Four-year college/ 4. Traffic university · Commercial · Trade · Residential 5. Tourism · Tourist 6. Highway 101 · Type of traffic where? 7. Retirement* Possible Solutions 1. Boulevard extension 2. Bypass 3. Waterfront development 4. Business education ADJOURNMENT: The meeting was adjourned at 8:45 p.m. CC.222A