HomeMy WebLinkAboutAgenda Packet 04/18/2009
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City of Port Angeles-City Council Retreat
April 18,2009 at 8:00 A.M.
PENINSULA COLLEGE
Room J -47 A / PUB Conference Room
1.
Call Meeting to Order
ITEMS ARE FOR DISCUSSION ONLY - NO ACTION TO BE TAKEN
Ideas of Future Vision of the City of Port Angeles
Current City Council Rules of Procedure
Current Functioning of City Council Meetings
Council Working Relationship
Council/Staff Working Relationship
City Council Committees and Advisory Committees Functions and Structure
City/County Working Relationship
Working Relations with Other Organizations
Working Relations with Local Media
Ways City Can Improve Communications and Become More Transparent
Short-Term and Long-Term Goals for City Manager
City Finances and Status of 2009 City Budget
Representative Function of City Government
Future Sustainability Improvements for the City
Preliminary Recommendations from City Manager
Adjournment
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FORTANGELES
WAS H I N G TON, U. S. A.
C I T Y MAN AGE R' 5 0 F Fie E M E M 0
DATE:
APRIL 14, 2009
To:
CITY COUNCIL
FROM:
KENT MYERS, CITY MANAGER
SUBJECT:
CITY COUNCIL RETREAT
As you know, the City Council Retreat is scheduled for this Saturday, April18 at 8:00 a.m. at
Peninsula College. Attached is a map showing the location of the meeting and additional
information. We plan to start serving a continental breakfast at 7:30 a.m. and will serve lunch
. around noon. This will be a working lunch so that we can try to cover all of the agenda items prior
to the anticipated adjournment at 3:00 p.m. Since the attached agenda covers fairly general topics
such as working relationships, communications, etc., the Council may want to schedule a second
retreat in about three months when we can discuss more specific topics related to economic
development and the 2010 City Budget.
I have attached a copy of the agenda and background infonnation related to several of the agenda
items. It is important that you review this information prior to the meeting and I encourage you to
note any COlmnents that you have on the agenda items. Please keep in mind that this will bean
open and infonnal discussion with no final decisions being made at this time. All Council
members should be equal participants and have full opportunity to express your opinions on the
topics that are listed. Since we have 15 different agenda items, it is important that we stay on track
and, if possible, complete the discussion on each item within 30 minutes.
Many city councils and other governing boards conduct retreats to set short-tenn and long-tenn
goals as well as deal with important issues facing the organization. With the stm1 of my
employment about three months ago and the many assorted issues now facing our City, this
discussion is timely. It is my hope that this meeting will foster improved cOlmnunications and
working relations and it will provide me and other City staff members with clear direction on how
we should move forward in the coming year.
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We plan to start the Retreat with an open dialogue on thoughts and ideas on your future vision of .
Port Angeles. Teresa will take notes as each Councilmember shares what you would like our
community to become in 5-10 years. While I know that several Councilmembers will complete
their terms this year, you all have an opportunity to shape the future vision of the City. This.
exercise will be helpful in understanding each other and will give City Staff a better indication on
what you would like us to achieve over the next several years. So what would you like Port
Angeles to be like as a city in the next 5-10 years?
Once we complete this process, then it is important for the Council to revisit your current Rules of
Procedure (see attached). These Rules are very important as they cover the agenda fonnat and the
order of business for City Council meetings. Are your satisfied with the current Rules of
Procedure? Is the current language for decorum and debate for Council meetings sufficient? Does
the agenda packet contain enough information for you to make an informed decision? Does the
guideline for public comments at Council meetings meet your needs? Are there any other changes
or additions that you would like to recommend to these Rules of Procedure?
The next topic scheduled for discussion is the current functioning of City Council meetings. Are
you satisfied with the way the City Council meetings are currently functioning? Do you get
sufficient comment and input from City staff during the meetings? Do you prefer to take breaks
every hour or two during the meeting? What specific improvements do you suggest in the way the
meetings are conducted?
The working relationship between individual City Councilmembers plays an important role in our .
community's future success. Councilmembers certainly cannot agree on every agenda item and a
diversity of ideas and opinions is one of our City's strengths. At the same time we should all strive
for an enviromnent of mutual respect and support if Port Angeles is going to continue to be
recognized as a progressive, and forward community. This discussion will involve some honest
expression on what the Council can do to enhance your respect and understanding of each other.
The next discussion topic is Council/Staff relations. Although these relations presently appear to
be working very well, there is always room for improvement in this area. Are you getting the
infonnation that you need from City Staff in a timely manner? Are we providing the level of
customer services that you expect? Do you feel like Staff is responsive to your needs and
requests? Do the citizens of Port Angeles feel like they are getting quality services from City
Staff?
The next topic scheduled for discussion is the current structure and operation of Council
Committees and Citizen Advisory Committees. While this is the first city that I have experienced
with Council committees, they seem to provide a useful purpose in a number of key areas such as
utilities and real estate. A listing of the Council Committees showing current assigmnents and a
listing of our Advisory Committees is attached. Are you satisfied with the cun-ent structure and
number of Council Committees and Citizen Advisory Committees? Do we need to improve the
flow of infonnation from these committees (i.e. agendas and minutes) to all Council members?
Should we encourage public input during Council committee meetings or suggest that citizens
offer their input when the issue is discussed by the entire Council?
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Our working relationship with Clallam County is something that needs to be discussed and
addressed. I am personally committed to improving these relations since I believe that we can
accomplish much more working together than we can if we proceed in different directions.
However, I need your direction on City/County relations and your support to my efforts if] am
going to be successful. Do you agree that improved City/County relations should be a priority?
What advice do you have on ways we can enhance this relationship?
The City of Port Angeles certainly does not operate in a vacuum and we simply cannot accomplish
all that is ahead of us without the support and involvement of other outside groups and
organizations. We need to nurture positive relationships with other entities such as the Lower
Elwha Klallam tribe, the Economic Development Council, the Port of Port Angeles, and private
businesses. How can the City be a leader in encouraging a spirit of cooperation so that we can
work together to improve our community and grow our local economy? Do you feel like there is a
common vision among these entities on how they would like the City to grow and progress in the
future?
Over the past several months, I think that our relationship with the local media has improved
somewhat. However, there is still a lot of room for additional improvement that we should discuss
during this section of the agenda. What are your thoughts and ideas on working with the local
media so that timely and accurate information is conveyed about City activities and events? How
should we respond when we feel like the media has reported information in an unfair or inaccurate
manner?
During the past several weeks we have had a lot of discussion on public records and the need for
the City to become more transparent. During the discussion on this agenda topic, I encourage you
to offer your COlmnents on how we can improve our flow of information to the public. In tenns of
public records, Becky Upton and Bill Bloor already do a good job in providing these records in a
timely manner and we appear to be well ahead of many other cities in the way we handle records
requests. However, we are always looking for ways we can improve our response to citizens and
keep them better infonned about their City government.
One of the most important objectives of the Council Retreat is to provide me with some short-tem1
and long-tenn goals that you would like for me to accomplish. Each of you has provided some
input to me on your individual goals and I have compiled these in the attached draft. I would like
some discussion on this draft in an effort to reach consensus on these perfonnance goals. We have
scheduled a City Manager/Department Head Retreat for next week and these goals will be one of
the topics for discussion.
Another major item scheduled for discussion is the CUITent status of City finances and the
establishment of core City services that we need to focus on for future funding. I have attached a
copy of a financial status report from Yvonne. Department heads have been invited to be present
to answer any questions regarding this repOli and to pmiicipate in this discussion. However, due to
our time limits I suggest that you devote most of this discussion to the "big picture' financial.
issues involving what core services the City should provide in the future. The City of Port
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Angeles, like most cities, has assumed certain non-essential government functions over the years. .
With our current and projected long-term financial picture, it is very important that we get back to
a focus on providing basic city services. What are these basic core services? What are your
budget priorities for the future?
One of the new items recommended for discussion at the Retreat involves your thoughts and ideas
on our representative form of government. As City officials we represent some 20,000 local
citizens. Oftentimes I have found that the more vocal individuals seem to assume a major role in
local government decision-making. How can you insure that you are governing for the welfare of
the entire City and that major decisions are not directed by an individual citizen or special interest
groups? How can you help insure that our local citizens have full opportunity to voice their input
and concerns in the decision making process? Is the Community Conversations a useful process or
should we try other ways to obtain citizen input?
It has also been recommended that we include some discussion on sustainability issues at the
Council Retreat. Our natural resources in the Port Angeles area offer a unique quality of life asset
that we need to preserve and protect for future generations. How can the City assume more of a
leadership position on sustainability issues while still encouraging positive future growth and
development?
Finally, if time allows, I would like 5-10 minutes to offer some preliminary insight on my
perceptions on future opportunities and challenges facing the community and the City
organization. I provided some of this information at my recent Chamber presentation but I would
like to share some of these thoughts with the entire City Council. This will include some initial .
ideas on future organization of city departments.
We look forward to seeing you on Saturday. Please let me know if you have any questions prior to
our meeting.
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~ORTANGELES
CITY COUNCIL
WAS H I N G TON, U. S. A.
RULES OF PROCEDURE
As of May, 2008
Section] Rules. These Rules shall govern the procedures followed by the City Council
of Port Angeles, Washington, for the conduct of Council meetings and the maintenance of order,
pursuant to RCW 35A.13.l70.
Section 2 Open Public Meetings Act. The Council shall comply with the provisions of
the Open Public Meetings Act, Chapter 43.20 RCW, in the conduct of all meetings to which said
Act is applicable.
Section 3 Executive Sessions. The Council may discuss topics in executive session,
which topics are specified in RCW 42.30.110 or relate to potential or pending litigation and are
subject to attorney-client privilege. The City Attorney shall infonn the Council whenever any
proposed discussion in executive session is not legally allowed.
No member of the City Council, employee of the City, or any other person present during
executive session of the City Council shall disclose to any person the content or substance of any
discussion or action which took place during said executive session.
Section 4 Work Sessions. Special meetings designated as work seSSIOns shall be
advertised and conducted in the same manner as special meetings. Work sessions are for the
purpose of in-depth review and discussion of specified issues. Final disposition shall not be
taken at designated work sessions.
Section 5 Ouorum. At all meetings of the Council a majority of the Councilmembers
shall constitute a quorum for the transaction of business, but a less number may adjourn from
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time to time and may compel the attendance of absent members in such manner and under such
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penalties as may be prescribed by ordinance. The passage of any ordinance, grant or revocation
of franchise or license, and any resolution for the payment of money shall require the affirmative
vote of at least a majority of the whole membership of the Council. RCW 35A.12.l20.
Section 6 Chair of the Council. The Mayor shall be the Chair of the Council and shall
preside at all Council meetings. A Mayor Pro Tempore or Deputy Mayor shall be selected
biennially at the first meeting of a new Council, for a term to run concurrently with that of the
Mayor. In the absence of the Mayor, the Mayor Pro Tempore shall preside. If neither the Mayor
nor the Mayor Pro Tempore is present at a meeting, the presiding officer for that meeting shall be
selected by a majority of the vote of those Councilmembers present, provided there is a quorum.
The Chair of the Council may vote on all matters coming before the Council; however,
the Chair of the Council shall not be required to vote except in the event of a tie.
The Chair of the Council shall state all questions coming before the Council, provide
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opportunity for discussion from the floor, and announce the decision of the Council on all
subjects. Procedural decisions shall be made by the Chair of the Council, who may request
advice on such matters from the City Attorney. Procedural decisions made by the Chair of the
Council may be overruled by a majority vote of the Council.
Section 7 Agenda. The City Manager shall prepare the agenda of business for all
Council meetings. Any Council member, department head, or citizen desiring to place a matter
on the agenda shall notify the City Manager by twelve o'clock noon on the Wednesday preceding
the Council meeting. Every agenda item must be supported by a written explanation informing
the Council and staff of the issue, background and/or analysis, and recommendation and/or
conclusion, unless the item is self-explanatory or unless the Mayor or City Manager has waived
this requirement. All written materials for the agenda shall be delivered to the City Manager by
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twelve o'clock noon on the Friday preceding the Council meeting. Except for announcements,
late items that the City Manager does not receive by the stated deadlines shall not be considered
by the Council except upon a majority vote of the members present.
Each agenda shall reference all ordinances to be considered by the City Council. No
ordinances shall be acted upon unless notice of the preliminary agenda referencing such
ordinance has been made available to the public in advance of Council meetings, as set forth
below. Except in cases of emergency and of final approval of subdivisions, a proposed
ordinance shall be presented to the Council at a regular meeting, and the Council may then act to
adopt the ordinance at any subsequent regular meeting.
Preliminary agendas for all meetings of the City Council shall be made available at least
24 hours prior to the time scheduled for such meetings. The preliminary agenda will be made
. available to the public in the following ways:
1.
A copy is placed on the City website at www.citvofpa.us .
2.
Several copies are placed on the front counter at City Hall.
3.
A copy is posted on the bulletin board outside the Council Chambers.
Section 8 Order of Business. The Mayor may determine the order of business for a
particular City Council meeting. The agenda should be aITanged to best serve the needs and/or
convenience of the Council and the public. The items of business for regular Council meetings
may include the following:
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
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4.
Public COIrunent: This is an opportunity for members of the public to speak to the
City Council about anything. To allow time for the Council to complete its
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legislative agenda, comments should be limited to no more than 5 minutes per
person and a total of 15 minutes for this comment period. These time periods
may be lengthened or shortened at the discretion of the Mayor.
5. Ceremonial Matters/Proclamations
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6. Work Session
7. Late Items to be Placed on This or Future Agendas as determined by the City
Manager or City Council Member.
8. City Council Committee Reports
9. Ordinances Not Requiring Public Hearings
10. Resolutions Not Requiring Public Hearings
11. Other Considerations
12.
Public Hearings - Quasi-Judicial
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13. Public Hearings - Other
14. Finance
15. Consent Agenda
16. Executive Session (as needed and determined by City Attorney)
17. Adjournment
Section 9 Voting. Each Counci1member shall vote on all questions put to the Council
unless a conflict of interest or appearance of fairness problem requires a Counci1member to
excuse him/herself. If a Councilmember does not vote when such vote is required, such member
shall be detennined to have voted "yes" at the time the vote is taken.
Section 10 Decorum and Debate. When a measure is presented for consideration to the
Council, the Chair of the Council shall recognize the appropriate individual to present the matter.
When two or more members wish to speak, the Chair of the Council shall name the member who
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is to speak first. No member of the Council shall interrupt another while speaking except to
make a point of order or privilege.
No Councilmember shall be permitted to indulge in personalities, use language
personally offensive, or use language tending to hold a member of the Council up to contempt.
If a member is speaking or otherwise transgressing the Rules of the Council, the Chair of
the Council shall or any Councilmember may call him/her to order, in which case he/she shall
immediately be quiet unless permitted to explain. The Council shall, if appealed to, decide the
case without debate. If the decision is in favor of the member called to order, he/she shall be at
liberty to proceed, but not otherwise. A Councilmember transgressing this Rule shall be liable to
censure or other such punishment as the Council may deem proper.
Section 11 Questions of Parliamentary Procedure. Questions of parliamentary procedure
. not covered by these Rules shall be governed by Robert's Rules of Order. Newlv Revised (1990
Edition).
Section 12 Board and Commission Vacancies. The selection process for filling board
and COlllilllssion vacancies shall be as follows; provided, however, that in specific situations, the
Council may by majority vote revise the process:
A. The City Manager or his designee will solicit in the City's official newspaper
volunteers who wish to serve on boards and cOlmnissions.
B. The City Manager or his designee will mail application fonns and specific
infonnation as to functions of the prefened board(s) or commission(s) to interested citizens.
C. The City Manager or his designee will submit application fonus, questionnaires,
and/or related infonuation, to the designated interviewing body, as set f0l1h on Exhibit "A", for
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review and interviews.
D. The designated interviewing body will interview candidates m open public
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seSSIOn. Candidates who have not been interviewed will be excluded from attending the prior
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interviews.
E. The designated interviewing body will forward a recommendation to the City
Council as to the preferred candidate(s) for appointment to a board or commission. The City
Council will make appointments by a majority vote. If the City Council is the ?esignated
interviewing body, the Council will select its preferred candidate in an open public meeting by
roll call vote and the Mayor will make the appointment.
F. The City Manager or his designee will provide written notice of appointment and
confirmation, provide introduction to the chairperson of the respective board or commission, and
provide introductory and educational information to the newly appointed member.
G. In the event the number of members of any board or commission fall to the
number required for a quorum plus one, the City Manager shall have the authority to make an .
interim appointment, subject to confirmation by the City Council. The term of an interim
appointment shall be for (a) the remainder of the vacant term, (b) 6 months, or (c) until a
permanent appointment is made by the City Council, whichever is less.
Section 13 Notice of Public Hearin2:s. Notice of all public hearings to be conducted by
the City Councilor any of its advisory boards and commissions shall be given either by
publishing written notice at least once in the City's official newspaper prior to the date of the
hearing, or by complying with any specific statutOlY requirements for such notice that may be
applicable to the particular type of hearing involved.
Section 14 Council Vacancies. The selection process for filling Council vacancies shall
be as follows, provided, however, that the Council may by majority vote revise the process:
A. Notice of the vacancy and the procedure for filling the vacancy shall be published
twice in the City's official newspaper.
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B.
The Council will open a filing period of not less than 10 days for the vacancy and
request each candidate to complete an application form or submit a letter of interest.
C. The candidates will then be interviewed during a public Council meeting.
D. The Council may deliberate on the qualifications of the candidates in a closed
session and then vote on the appointment in an open meeting.
E. In all other respects, the procedure for filling a Council vacancy shall be as
provided in State law.
Established/Amended by Resolution Nos.: 21-84, 13-86,9-87,2-88,3-88, 19-88,37-91,5-92,2-95,5-95,4-96,20_96,
11-97,2-98,6-98,15-99,17-04,2-05,10-05,2_06, 11-06, 12-06,8-07, and 3-08.
G:\Group\Clerk\Council-Rules of Proc
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CITY OF PORT ANGELES
Boards. Commissions & Committees
City Council
Board of Adjustment
Civil Service Commission
Construction Code Board of Appeals
Lodging Tax Advisory Committee
Parks, Recreation & Beautification Commission
Planning Commission
Port Angeles Forward Committee
Public Safety Advisory Board
Utility Advisory Committee
Budget & Finance Committee
Human Services Committee
Real Estate Committee
Solid Waste Advisory Committee
Clallam Transit Board
Peninsula Regional Transportation Planning
City / Clallam County PUD
Health & Safety Committee
Law & Justice Committee
Economic Development Council
Olympic Region Clean Air Agency
Marine Life Center Board
Parks Facilities Oversight Committee
Disability Board
Firemen's Pension Board
Volunteer Firemen's Pension Board
Lauridsen Trust
Peninsula Development Association
Mayor's Meeting
Chamber of Commerce
Multi-Cultural Alliance
Legislative Liaison
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City of Port Angeles
City Council Committee Assignments
for 2008 - 2009
As of January 24, 2008
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Human Services (scheduled by
United Way)
1*
x
Alt.
Lodging Tax Advisory Committee
(meets as needed)
2
x
x
3
x
x
Utility Advisory Committee (meets
2nd Tuesday of each mo., 3 :00
p.m., City Han) 3* X Alt X X
Solid Waste Advisory Committee
(meets 3rd Thmsday of odd months,
3 :00 p.m., P.A Senior Center) 1* Alt. X
Clallam Transit (meets 3rt! Monday
of each mo., 1:30 p.m., rotating
locations) 2* X X Alt.
Peninsula Regional Transportation
Planning (meets 2nd Friday every
other month, 10;00 a.m., location
varies) 1* Alt. X
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X
.
.
~')rt Angeles Fornard (meets 2nd
lUrsday of each mo., 7 :30 a.m.,
City Hail)
Economic Development Council
(meets 3,d Thursday of each mo.,
10:00 a.m., Peninsula College A-
12)
Olympic Region Clean Air (meets
2nd Wednesday of each mo., 10:00
a.m., Olympia)
Marine Life Center Board
(meetings to be determined)
'i;P~~k~J~;.1FiM~~
Park Facilities (meets 2nd
Wednesday of each mo., 4:30 p.m.,
Vern Burton meeting room)
.
City of Port Angeles
City Council Committee Assignments
for 2008 - 2009
As of January 24, 2008
3
x
x
x
1*
x
Alt.
3
x
2*
Alt.
x
x
1*
x
Appointed Grant Munro
3*
x
Alt.
x
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x
x
x
Alt
x
x
.
City of Port Angeles
City Council Committee Assignments
for 2008 - 2009
As of January 24, 2008
Disability Board (meets 3rd
Wednesday of each mo., 3 :00 p.m.,
at County) Mayor X
Firemen's Pension Board (meets
once per year) Mayor X
Volunteer Firemen's Pension Mayor +
Board (meets once per year) 1 X X
Lauridsen Trust (meets 4th
Thursday of each mo., 2:00 p.m.) Mayor X
Peninsula Development Assn.
(meets twice a year) 1* Alt. X
Mayors Meeting Mayor X
Chamber of Commerce (meets 2nd
Friday of each mo., 12:00 Noon,
location varies) 1* Alt. X
Other A!!encv Assif!1l1nents:
Multi-Cultural Alliance (meets as
determined by group) 1* Alt. X
Legislative Liaison 1 X
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Financial Issues
Final Results of 2008 year end:
· Revenues
. Expenditures
· Fund balance
2009 Budget challenges:
· Revenues
o Sales Tax
o Utility Taxes
o Building permits
o Interest revenue
o REET
o Lodging Tax
o Gasoline Taxes
o Possible grants
· Expenditures
o Personnel
o Retirements
o Pool Election
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· Reserves
· Conclusion
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2008 Year End:
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The 2008 Year End resulted in $1.15 million in budgetary savings. Revenues were $350
thousand over budget and expenditures almost $800 thousand under budget. As a result,
the ending fund balance (reserves) is $4.4 million vs. $3.25 million budgeted (see
attachment 1). Please take under consideration that approximately $150 thousand is just
a "paper" gain on investments that we are required to report under GASB 31.
Unfortunately, this will result in realized losses in 2009 and 2010 when the investments
mature. i\n explanation of the Government Accounting Standards Board (GASB) 31.
calculation is in Attachment 2.
Overall, as a result of 2008, we have a cushion of approximately $1 million. According to
the City's financial policy, we should designate these funds toward capital governmental
projects. However, due to uncertain economic times, we may temporarily designate them
to the contingency or "rainy day" fund. This step would give us time to re-group if
something major happens in Port Angeles.
2009 Budget Challenges - 1 st Quarter Perspectives:
* Revenues:
Sales Tax - $673,490 received, the lowest amount in 5 years. This is almost 20%
less than last year and approximately 8% below budget (already reduced from
2008). Assuming that this trend will not improve later in 2009, sales tax
collections could be $230K to $400K less than budgeted (see attachment 3). .
.
There is good news related to new construction on the Peninsula College campus
that may reduce this deficit by approximately $1 OOK. This is asslli-ning of course
that the project starts this year and approximately 30% completed.
Even factoring sales tax from new construction, it is prudent at this time to
assume that sales tax will be below estimates by at least $150-$250 thousand.
Utility Taxes - which of course depend on utility revenues, are very sensitive to
weather conditions. Three months of winter is not a good indicator of overall
collection, especially for the electric and water utilities. At this time, we have
collected $913K of the $3.6 million budgeted, which represents 25% of budget.
However, I'm concerned about Solid Waste Transfer Station revenues, which are
only at 13 % of the budget.
Assuming that winter is the highest collection time for the electric utility, the
extended closure of Nippon, and lower revenue from the transfer station, there is a
negative outlook for utility taxes as well.
Building Permits - we budgeted $238K and, so far, collected 15%. Based on
recent activities in building permits, the building permits may increase by $200K
as a result of the College expansion, which is valued at $32M.
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Interest Revenue - as a result of GASB 31 reporting requirements and
decreasing interest rates, we may decrease our proj ections of $27 5K. Interest
revenue in the fIrst quarter is not a good indicator of where are we going to be at
the end of the year. It may be prudent to assume that this revenue may be $75K-
$100K less.
REET - it is difficult to predict where the real estate market is going. It is so low
that it can only go up, right? We collected 8% ofthe budgeted $360K.
Historically, the fIrst quarter collection is always low and picks up in the summer
and fall. Being conservative, and looking at the overall economy, we may have
problems collecting all that was budgeted. Reserves in REET funds are projected
at approximately $700K.
Lodging Tax - we collected $47K, less than 10% of the $484K budgeted and
21 % less than in 2008 at this time. To have any hopes for collecting the full
budgeted amount, we should be at approximately 12% of the budget. Also, the
Hood Canal Bridge closure will not help with the collections. Fortunately, we
have approximately $380K in reserves to help us Virith this temporary situation.
(See attachment 4)
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Gasoline Taxes - we collected 21 % or $95K out of $448K budgeted. Last year,
at the same time we collected 25% of the budget or $1 04K. 2009 collection shows
a decreasing trend (8.6% less than 2008 at the same time). Tbese taxes are
collected on a per capita basis state-Viride and are usually higher during summer
months, so it is possible to collect all. However, looking at consumer confidence,
I am concerned that we maybe short by S30K-$40K
Possible Grants - the City applied for several grants, they include $2.7M for
Gateway, and $49K and $441K for Police. Grants for Police have a high
possibility of being awarded and they will support the police department for a
period of three years.
Expen ditures:
Personnel- there is possibility of savings in personnel as a result of vacancies in
the Police and Fire Departments. Unfortunately, vacancies, especially in public
safety, result in higher overtime. When compared to the budget, we expended
24% of personnel budget. This is the same as last year. Being conservative,
especially so early in the budget process, I am hesitant to estimate savings in
personnel at more than $1 OOK.
Retirements - the rush ofPERS 1 and LEOFF 1 retirements is almost over. In
the next 1-3 years we estimate three General Fund employees 'Nill retire. Based on
our policy, we reserve part of fund balance for retirements.
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Gasoline costs - when we lowered gasoline prices while fInalizing the 2009
budget, we promised to closely monitor gasoline costs. As we expected, fuel
prices are going up, but hopefully vvill not go above budget. We may see some
savings in this category; however it is too early in the year to make that
assumption, especially as gasoline prices can be unpredictable.
ei
Pool- there are two major issues related to the election, especially if it fails. First,
election costs are estimated at $36K. Second, pool closure costs, which will
include personnel pay offs and liquidation costs. None of these expenses were
budgeted.
Not Budgeted Expenses - there are some expenses which were not approved in
the 2009 budget. They include CMMS/GIS software for Public Works $60K and
the Public Safety portion of INET at $22K. Both were approved by the Council in
2009 and will require budget amendments.
Reserves:
As of January 1, 2009 reserves are as follow:
General Fund $4.4M (budgeted $3.25M)
Street $666K (budgeted $571K)
REET $885K (budgeted $946K)
Conclusion:
e
There are several reasons to be concerned, especially in the area of revenue
collections. There is hope however, that additional building permits will offset
losses in sales tax and interest revenue, but not any other decreases. At the same
time, savings in personnel should cover capital expenses approved by the Council.
The question is how to cover possible pool election costs and pool closure, if
necessary. Council may also decide how to designate $lM from 2008 savings.
Overall, we need to be very careful how we spend our already approved budget.
e
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ATTACHMENT 1
Excel
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances _ Budget and Actual
For the Year Ended December 31, 200B
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment earnings
Other revenue
Budgeted Amounts Actual Amounts Variance with
Original Final Budgetary Basis Final Budget
$ 10,675,801 $ 10,601,124 $ 10,921,656 $ 320,532
492,800 424,456 401,721 (22,735)
355,298 614,914 656,507 41,593
4,657,128 4,639,585 4,510,878 (128,707)
285,000 289,000 295,202 6,202
234,606 324,168 433,641 109,473
59,079 68,996 99,080 30,084
16,759,712 16,962,243 17,318,685 356,442
Total revenues
EXPENDITURES
Current:
General government
Public; safety
Utilities and environment
Economic environment
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
4,803,967 4,809,633 4,531,027 278,606
6,684,906 6,541,220 6,320,093 221,127
1,642,730 1,740,913 1,679,852 61,061
547,846 529,064 500,926 28,138
i,153,347 2,215,784 2,038,743 177,041
10,500 213,118 244,849 (31,731)
15,843,296 16,049,732 15,315,490 734,242
916,416 912,511 2,003,195 1,090,684
294,200 294,200 294,200
(1,210,616) (2,910,616) (2,848,616) 62,000
(916,416) (2,616,416) (2,554,416) 62,000
(1,703,905) (551,221) 1,152,684
4,949,244 4,949,244 4,949,244
$ 4,949,244 $ 3,245,339 $ 4,398,023 $ 1,152,684
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
The City budgets its governmental funds on the modified accrual basis which represents GAAP for governments_
The Accompanying Notes Are An Integral Part Of This Statement
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4/11/2009
8:59 AM
Attachment 2
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GASB 31 Calculations
This statement requires that the City report gains on investments based on the
market value on December 31. Since we don't invest in the stock market, but buy
treasury or US government agency bonds and expect to keep all bonds till
maturity, this requirement does not make much sense. Here is an example:
1. We purchased $1,000,000 par in bonds in February 2008 at the interest rate of
5%. They will mature in February 2009.
2. In December 2008, interest rates significantly decreased, which made the
value of our bond purchased in February go up to $1,080,000. If we were
going to sell this bond on this day, yes, we would have a gain on investments.
However, we keep our investments till maturity. Based on GASB 31 we had
to book $80,000 of unrealized gain to the interest revenue. So, there is a
"paper" gain we are never going to have.
3. As of January 1, our investment ledger shows this bond at $1,080,000 (based
on 12/31/08 valuation).
4. At the time of maturity in February, we received $1,000,000 for our bond
(remember if we keep it to maturity we receive par value - not market value).
This results in an $80,000 loss in 2009.
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ATTACHHENT 3
CITY OF PORT ANGELES
SALES TAX COLLECTION
FOR THE YEARS 2001 - 2009
%OF %OF % OF BUDGETED
2001 2002 2003 2004 2006 2006 2007 2008 CHANGE CUM. CHANG AMOUNT
2009 TO 2008 2009 TO 2008 COLLECTED
JANUARY 173.752 161,272 174,430 178,032 247,162 234,903 231,548 243,360 -23.40% -23.40% 6.37%
FEBRUARY 197.447 223,165 246,278 249,278 307,097 312,566 346;824 364,870 -20.72% -21.79% 9.89%
'MARCH 184,918 163.468 158,314 178,522 204,220 218,254 220,140 228,700 -13.51% -19.53% 6.76%
APRIL 140,727 154,502 162,771 164,351 212,993 228,992 227,295 222,052 -100.00% -36.40% 0.00%
MAY 199,467 210,911 191,781 244,411 241,803 287,127 283,901 277,460 -100.00% -49.61% 0.00%
JUNE 162,880 166,887 181,186 206,286 183,331 240,910 238,605 239,989 -100.00% -57.28% 0.00%
JULY 181,113 182,597 207,573 199,038 211,961 278,356 272,545 240,484 -100.00% -62.93% 0.00%
AUGUST 210,704 210,614 269,840 255,574 288,715 329,053 349,815 310,367 -100.00% -68.34% 0.00%
WTEMBER 212,750 204,051 248,395 251,681 249,472 272,761 266,440 278,097 . -100.00% -72.00% 0.00%
CJ0TOBER 204,366 229,711 212,420 . 397,754 261 .485 285,185 312,125 249,554 -100.00% -74.63% 0.00%
NQ,VEMBER 221,319 228,825 261,684 306,472 283,998 316,669 328,902 .299,540 . -100.00% -77.20% 0.00%
~EMBER 188,913 178,136 194,102 224,035 236,871 249,921 258,338 .~~~1.J -100.00% -78.83% 0.00%
TOTAL 2,278,356 2,314,139 2,508,774 2,855,435 2,929,106 3,254,697 3,336,478 -7883% -78.83% 23.03%
BUDGET [ II I 3,054,597 [ 3,135,~ 91.94 23.03
636283.772
1st Quarter revenue 556,117 547,905 579,022 605,832 758,478 765,723 798,512 836,930 673,490 2,545,135
%of 1 sr Q collection 24 24 23 21 26 25 25 26 23 2,640,135
ATTACHHENT 4
CITY OF PORT ANGELES
HOTEL/MOTEL TAX COLLECTION
FOR THE YEARS 2000 - 2008
80th Levies (4%)
%OF % OF % OF BUDGETED
2001 2002 2003 2004 2005 2006 2007 2008 CHANGE GUM. CHANG AMOUNT
2009 TO 2008 2009 TO 2008 COLLECTED
JANUARY 15,438 11 ,372 16,930 15,927 19,056 19,546 17,290 19,222 -19.19% -19.19% 3.2.1%
FEBRUARY 15,864 23,205 17,550 16,417 21,215 19,709 24,013 19,584 -10.38% -"14.75% 3.62%
MARCH 11,658 16,654 12,266 14,236 .15,-'50 16,660 17,878 21,3"13 -32.74% -21.14% 2.97%
APRIL 15,184 19,060 13,294 12,557 19,080 19,742 19,364 19,316 -100.00% -40.30% 0.00%
MAY 20,224 21,841 17,143 23,033 22,816 22,586 26,083 26,506 -100.00% -55.23% 0.00%
JUNE 21,278 20,746 21,872 27,906 28,129 29,157 30,150 33,367 -100.00% -65.95% 0.00%
JULY 27,820 31,874 30,102 34,141 34,945 37,625 43,525 41,296 -100.00% -73.73% 0.00%
AUGUST 44,996 29,668 43,814 50,705 51:162 48,554 60,825 65,392 -100.00% -80.71% 0.00%
S~TEMBER 64,018 49,706 61 ,489 71,479 76,419 72,856 89,325 91,543 -100.00% -85.94% 0.00%
o TOBER 65,216 81,678 65,253 72,792 74,867 81,425 92,801 69,469 -100.00% -88.34% 0.00%
NWEMBER 53,432 57,027 55,460 60,532 56,519 61,528 45,326 71,282 -100.00% -90.08% 0.00%
DlSCEMBER 24,810 25,492 26,122 30,162 28,285 30,771 31,577 15,297 -100.00% -90.39% 0.00%
TOTAL 379,938 388,323 381,295 429,885 448,242 460,158 498,158 -90.39% -90.39% 9.80%
BUDGET 450,026 [ 464,0001
Prior Years (ytd) 42,960 51,231 46,746 46,579 56.021 55,915 59,181 60,179 47,46U
1.1.307108 13.192883 12.25979852 10.835309 12.498037 12.424944 12.754586 12.983534 9.8015923
es\. ye 98729.42
394,918
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KENT MYERS
Performance Goals and Objectives - Draft
April, 2009
Short-Term Goals (April-December. 2009)
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1. Establish more openness in city government by getting personally involved in the community and
improving communications from all City departments.
2. IKeep, CitYc~uncil fplly infonned ~bout City fPeratipns and ~pcoming ma.it fssues to avoid I;
I surpnses. . \ I \ "I \ ! . II f
3. / Conduct revIer and m.ak~~essaryrrevISI~?S to ~he furrent F~mncItt~e ~tnp<fUre.. I
4. i Estap,1isl\Prohrrrm for IdttifYIpg cote servrces 'fIth ere CoupcII pJ?ontlZlng fuese1'ervIc~art
! oftqe 20~O Bu~get'process.! J /r Ji I {i r I j.
i " I I i I.~ I t: t,. , ., I
5. ! conp.., uct .~n~ orr.1 qre ~otllli:7I1 Retr..e. ~ts so. hat to r COlFcll c.~n focns OlJ lll'l.,.,.lor Issu/es facr..': g the
! conrr:umtY m treJommg year. J . I, I. b ! . f i. ;' .
6. I Ider.tIf~ 9Ppo~n~tIes to refine ~C1ty prgan(iZa11On. Sf that It be~~e:~re effi1Ie.nt apd effectIve.
7. I AS~lst 111/estab~srying a fe'tm aPJ?roach rherefGgUnCIllTIempers rpa111iilin a cOOperatIVe and
I ef4ctive work.1mhelatitn~hip With eadh other and with Ci#y Stat!. f I
8. I Mtbe..(c>rwar ory the *~?vier p\~j~cl with ?~rtic.ular ,mp'~asis ~n the CSO impfovempnts.
9.1 Estabhsh m e O:~IU'" fm ClUZiOn pa Oon. , 1; i
lo!. Complete -goihg ci .' projects s4c~ as t Gate{Yay. I..i' I
Ii, h F1 :, M J \ I I! i. . h d I
. tea ar . a on - 0.QJlWJJJ,ment 111 t e 0 area.
12. Develop a program to increase the City's involvement in sustainability issues possibly in
cooperation with Clallam County.
13. Expand tourism base of the community.
14. Work cooperatively with the Downtown Association, Port of Port Angeles, and other local
organizations to improve cooperation, efficiency and effectiveness
15. Implement at least 5 of the recommendations included in the recent AlA study.
16. Improve relations with local media.
17. Work with owners of the Chinook Motel to improve the facility, demolish, or move forward with
condemnation.
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Lon2J..enn ?oals (2=5-Y.ear.s) ~! . ! k
I \ I \ / ~ I jl I
1. I com....p Iete CSQ..impfovem....... ents that 1... mply W./itha..ll ~t.a. te andfeder..al regul ~itns and man. date.s.!
2. I Complete deta~ed waterfgenl"f{lan" d make major UTIProve1TIents(. l~sj::nse of communItr,
i and I:l de~inati4n p~int fdr visi~ors., / ~i t t. I 1'-
3. ! Dev~.i, lop ~pecific plans a&d fur/ding. ropo ~al fo 'tthe H:..,.ighW~iy 10] ;cross-to.w. n route.
! C' I . fl. L--;::-7'/ I JiLT I .' I ,r . I' d!--~ I
4. I 0'plet9Impl~~1ntatlOn 01 s.e ect,r rec~mm .' 1fatIol!1s mc ,u ed III .AL-: 'itudy. I .' .
5. I ::1n~ ::r:~~~.tl~rd~:~.d.._:~:;e:r thl ad1'j" It.."-m1ge fl..n.~ dIll~:r placer reI.... Ir and
6. I Cojnple~ redefel~pmei~f .Ra'\onier rfr.oper/y. . .. I .f I.'
7./ Cr~ate an expa,ndfd eco,no~Ic.base .thf IS gro~lllg an4dIv'FrsIfi~. Ii. .
8. ~ll(h-de the i. ve~ .of pahne~shlps tIt? ~ther CItIes, Cl~'aI~ Cou1ty, Port, and otqer orgamzatlOns to
Improve em. le~rIes a,d. ~n~ance \h7 CItyl core'l>ervlOes:/ . 11 I;.
9./ i;~~i;I~e~apI~al FaolhtIesllan \\'1th a ~,cus on\l1npr~v~g mftt-astructure thrOl.JghoutHhe CIty.
1 ~e the de\'e~ent ot~e~trail widnTlmttie C<<itrr!mits. i.::-J
1]. Expand the boundaries of the City by developing and implementing an annexation plan.
27 of 27