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HomeMy WebLinkAbout080921 CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF AUGUST 9, 2021 CALL TO ORDER/PLEDGE OF ALLEGIANCE The Port Townsend City Council met in special session on the 9th day of August 2021 in Council Chambers at 540 Water Street. Deputy Mayor David Faber called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Pam Adams, David Faber, Amy Howard, Owen Rowe, and Ariel Speser with Monica MickHager, and Michelle Sandoval excused. Staff members present were City Manager John Mauro, Finance Manager Tony Hillman, Public Works Director Steve King, Finance and Administrative Services Director Nora Mitchell, and City Clerk Joanna Sanders. PUBLIC HEARING Resolution 21-048 Directing the City Manager to Include $605,000 of the Banked Property Tax Capacity and the Respective Projects in the 2022 City Budget Deputy Mayor Faber read the rules of procedure for the hearing. There were no Council financial or property issues to disclose in connection with this matter. City Manager John Mauro provided opening remarks about the criteria to arrive at the presented projects and the goal of working toward a future stable funding source. Public Works Director Steve King gave a detailed briefing on the proposal. Public Comment: Rick Jahnke asked Council to clarify at what point it becomes an annual levy amount versus banked capacity. Scott Walker spoke about concerns on the sound quality in Chambers. Finance Manager Tony Hillman explained that the agreement is for the first four years following annexation. This is the third year of the agreement. In the fourth year, staff will need to request levying the full $908,000. Following the fourth year, the levy would include the $908,000 as part of its unrestricted general levy but the Council can choose not to levy this amount by creating new banked capacity and reducing the total general levy. During Council discussion, there were comments about the proposal and benefits for a large variety of user groups, appreciation for those providing public comment, comments about the limited funding options in state taxing authority or tax reform, positive feedback about the transparent process, and some concern about property tax increases. City Council Business Meeting August 9, 2021 Page 1 of 2 Public testimony and the public hearing was closed. Motion:Ariel Speser moved to approve Resolution 21-048 Directing the City Manager to Include $605,000 of the Banked Property Tax Capacity and the Respective Projects in the 2022 City Budget. Amy Howard seconded. Vote: motion carried unanimously, 5-0 by voice vote. DISCUSSION ITEMS 2022 Budget - Calendar, Assumptions, General Fund Overhead Allocation Estimates, ERR Estimates, and Fleet Purchase Recommendations Mr. Hillman reviewed the budget calendar and responded that the budget packet is where the summary of City debt is provided to Council. Presented was a verbal summary of revenue and expense assumptions and he agreed to forward to Council tomorrow the mid-year report previously presented to the Finance and Budget Committee, including year-to-date figures as of July. Although too early to project salary and wage increases, benefit costs are estimated to increase between 4-7% and the Consumer Price Index is relatively high at 5.5%. Mr. Hillman explained factors used for cost allocation, fleet replacement, and calculation of expenses for information and technology computer and server replacement estimates. He noted that a new policy framework is in place for funding vehicle replacements and he addressed questions about vehicle replacement with electric and hybrid vehicles. There was a suggestion to give a Council presentation on the City's cost allocation model in early 2022. ADJOURN There being no further business, the meeting adjourned at 7:43 p.m. Attest:. Joanna Sanders, MMC City Clerk City Council Business Meeting August 9, 2021 Page 2 of 2