HomeMy WebLinkAboutMinutes 11/18/1996 3402
CITY COUNCIL SPECIAL MEETING
Port Angeles, Washington
November 18, 1996
CALL TO ORDER - Mayor Ostrowski called the special meeting of the Port Angeles City Council to order at
SPECIALMEETING: 4:10 p.m.
ROLL CALL: Members Present: Mayor Ostrowski, Councilmembers Braun, Doyle, Hulett,
McKeown, and Wiggins.
Members Absent: Councilman Campbell.
Staff Present: Manager Pomeranz, Attorney Knutson, Clerk Upton, B.
Becket, S. Brodhun, K. Godbey, S. Ilk, J. Pittis, B. Titus, Y.
Ziomkowski, G. Leaf, and D. Sawyer.
1997 Budget Presentation Manager Pomeranz apologized for the lateness of the budget. The original budget was
balanced and then modified to reflect the impact of the Rayonier closure. The budget is still
off by more than $400,000, and a lot of work needs to be done to bring the budget into
balance. Staff estimates the 1997 impact of the closure will be approximately $600,000
in the General Fund. The year, 1998, looks worse, and substantial changes must be made
to avoid the projected deficits. Manager Pomeranz shared with the Council the anticipated
problems and the numbers involved. He stated there are many unknowns, and the five-year
projection demonstrates our future problems with depleting our fund balance if used for
balancing the budget. Staff is taking this budgetary crisis very seriously, and there is a
tremendous amount of work that needs to be done.
Manager Pomeranz recommended the Council pass the budget document out of balance
and, in the first quarter of 1997, work on making substantial changes to expenditures with
a review of programs. He stated that if the problems are not approached now, a disservice
will be done to City employees and the community. Manager Pomeranz summarized the
budget message for the Council.
Finance Director Godbey presented the economic impact and explained the problems
facing the City before the Rayonier closure. These include jail costs and decreased electric
rates, which presented a $650,000 decrease to the General Fund. The Rayonier closure
impact could be as much as $900,000 annually. All this totals $1.3 million in possible
revenue losses.
Manager Pomeranz and Director G0dbey continued to review the budget message, pointing
out the General Fund expenditures decreased by 5%, excluding jail and prosecution costs.
Port Angeles is the only government entity that can show this decrease. They also stated
that the budget assumes a 4% increase in property taxes and a 1% increase in non-electric
utility tax.
Currently, management is proposing to the bargaining units a 0% cost of living increase
and a reduced cost medical plan. The 1997 budget is proposed with no salary increases,
and the elimination of five positions (Police 2, Street 2, Finance 1). If salary increases are
granted, the deficit will be greater.
Manager Pomeranz and Director Godbey went on to review capital projects, utility rates
and comparative analysis on the utilities.
After some discussion, the Council felt there was no need to hold the special meeting to
continue thebudget talks. Therefore, the special meeting to be held Tuesday, November
19, 1996, at 4:00 p.m. was canceled.
ADJOURNMENT: The meeting was adjourned ~t 5 :~ (~Q~)
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