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HomeMy WebLinkAboutMinutes 09/29/2009CALL TO ORDER - SPECIAL MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: WORK SESSION: 2010 Preliminary Budget - Draft 1 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington September 29, 2009 Mayor Braun called the special meeting of the Port Angeles City Council to order at 5:00 p.m. Members Present: Mayor Braun, Deputy Mayor Wharton, and Councilmembers Di Guilio, Kidd, Perry, Rogers, and Williams. Members Absent: none Staff Present: Public Present: 2010 Preliminary Budget - Draft 1 - 1 - Manager Myers, Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, N. West, Y. Ziomkowski, R. Bonine, B. Coons, L. Dunbar, T. Pierce, M. Puntenney, and S. Sperr. C. Blevins, P. Downie, M. Karjalainen, P. Lamoureux, S. Long, B. Nelson, E. Petersen, and R. Springer. All others present in the audience failed to sign the roster. The Pledge of Allegiance was led by Councilmember Di Guilio. Manager Myers used PowerPoint slides to present the 2010 Preliminary Budget to Council. I-Ie reminded Council that staff had scheduled two more meetings to address the Budget on November 4 & 17, 2009. Councilmember Williams requested that Council discuss the Core City Services Proposal before the presentation by staff. He explained that his memorandum regarding Core City Services was separated into three categories: essential core city services, basic governmental functions, and discretionary programs and activities. He requested that Council go through an exercise categorizing the City's services to give direction to staff on the Budget. Following brief discussion, the Mayor recommended following the Agenda and addressing Councilmember Williams' memorandum later in the meeting. Manager Myers provided an overview of the 2010 Preliminary Budget. He described new items and increases to the budget, decreases in expenditures, challenges, and future steps staff will take in the budget process. He gave an overview of fund balances and staff's process of balancing the budget. He listed the loss of the Pool, previous cuts made to the 2009 Budget, decreases in front counter hours, and the pursuit of grants as contributions to balancing the budget this year. He described four major goals: maintain high quality public safety, grow local economy by expanding economic development programs, make sustainable enhancements so the City is recognized as a leader in preserving environmental assets, and create and maintain a sustainable long range financial plan. Additional cost reductions included the following: decreases in seasonal labor, a PERS rate reduction, decreases in funding for outside organizations, surplus revenues to balance the General Fund, new grants, no new full time positions, implementation of budget saving ideas by employees, reduction of costs for IT services, reduction of fuel costs, and many others. Director Ziomkowski stated that the City wide Preliminary Budget was approximately $100 million, which was down from 2009 due to fewer capital projects. She explained that the budget included some reserves, but that they were only being used for capital 6519 CITY COUNCIL SPECIAL MEETING September 29, 2009 WORK SESSION: 2010 Preliminary Budget - Draft 1 (Cont' d) projects not operational expenses. She stated that her presentation would mainly focus on the General Fund tonight, and they would focus on the Utility Funds in October. She listed some of the changes to revenues and expenditures from 2009 to include the following: decreases in Sales and Utility Tax, limited increases in property tax and charges for services, large increase in grant revenue, decrease in overtime, decrease of PERS rate, increases in medical insurance rates, and a cost of living increases for employees. She stated that the General Fund will use $200,000 from reserves for capital projects for street improvements. She summarized all the different funds in the General Fund, addressing reserves used in the Preliminary Budget and ending fund balances. Manager Myers added to the summary by showing Council the following lists: increased costs and new expenses, cost reductions, and items requested but not included in the Preliminary Budget. Director Ziomkowski provided an overview of the upcoming challenges the City faces, such as Initiative 1033, which would limit overall growth in the General Fund. She mentioned how other cities are decreasing their expenses related to core services to prepare for this Initiative. She used tables and graphs to project the impact to our city if Initiative 1033 passes. Manager Myers discussed the future steps in the budget process: future budget meetings, cost of services studies, public hearings, and the final adoption of the budget in December. Break Mayor Braun recessed the meeting for a break at 6:45p.m. The meeting reconvened at 7:18 p.m. 2010 Preliminary The Mayor opened the meeting to Councilmembers for any discussion, or questions for Budget - Draft 1 staff. Lengthy discussion ensued regarding the following topics: vehicle costs, expanding (Cont'd) tourism, seasonal employees, Economic Development, increases in Fire and Police Departments, Street projects, purchasing, Legal and Economic Development departments costs, the Parks Department, long term financial plans, School Resource Officer, affordable housing and zoning issues, the Wastewater Treatment Plant, medical insurance increases, the feasibility study to create our own district court, the Senior center budget, the $20,000 message board for the Street Department, reduced funding to the Clallam Business Incubator, and many other subjects related to the Budget. Manager Myers addressed the upcoming schedule for budget discussions, suggesting that more dates be added to cover all of the material. Councilmember Perry mentioned that he wanted to expand on Councilmember Williams' proposal of core services. Council addressed the future schedule of budget meetings, suggesting the continuation of the October 6 meeting to October 7, at 5:30 p.m., to add time to cover more discussion on the 2010 Preliminary Budget. ADJOURNMENT: The meeting was adjourned at 8:29 p.m. �_ Gary Braun, Tvt 'or Jan :s• Hurd, City Clerk 6520 • •