Loading...
HomeMy WebLinkAbout070912 CITY OF PORT TOWNSEND MINUTES OF THE WORKSHOP OF JULY 9, 2012 CALL TO ORDER The Port Townsend City Council met in workshop session the ninth day of July 2012. Mayor David King called the meeting to order at 6:30 p.m. in the Council Chambers at 540 Water Street. ROLL CALL Councilmembers present at roll call were Kris Nelson, Michelle Sandoval, David King, Catharine Robinson, Robert Gray, Mark Welch, and Deborah Stinson. Staff members present were City Manager David Timmons, Finance Director Michael Legarsky, Public Works Director Ken Clow, City Engineer Dave Peterson, Library Director Theresa Percy, Library Associate Keith Darrock, Police Chief Conner Daily, Officer Bill Corrigan, City Clerk Pam Kolacy, and City Attorney John Watts. FINANCE ISSUES: SECOND QUARTER 2012 REVIEW RESOLUTION 11-043 (ITEMS 1, 5, 13) City Manager David Timmons gave an overview of the items to be covered in tonight's workshop. Issues Requiring City Council Policy Action Budget/Financial (non-Mountain View and non-Capital). RECONCILE EQUIPMENT RENTAL AND RESERVE ACCOUNTS AND SUMMARIZE UNDERPAYMENT Mr. Timmons gave an overview of the equipment rental fund. He said that various departments are charged each year to amortize depreciation for vehicles; the funds are consolidated into the equipment rental fund and used for replacement, maintenance, and fuel. The reconciliation schedule needs to be updated. Mr. Legarsky reviewed the matrix for the Equipment Rental Rotating (ERR) Fund. He noted that the FCS Group was contracted to develop a funding model in 2008 but that since then we have changed our budgeting methodologies. He referred to the matrix in the packet of charges vs. actuals for the IT (Information Technology) and Fleet charges within the fund. The bottom line shows a deviation in budget vs. model showing a deficit of about $125,000 from what the model projected for IT and about $277,000 from the projection for the Fleet. Presently the fund has a $600,000 reserve. At this point we need to decide how to get on track with the model or change to a different model. Discussion ensued about the materials. POLICE VEHICLE RECONCILIATION City Council Workshop July 9, 2012 Page 1 of 4 Officer Bill Corrigan presented a detailed powerpoint showing an analysis of the current police fleet and options for replacing and sustaining the fleet in the future. The presentation included an analysis of purchase versus lease of vehicles and associated equipment. Councilors asked questions during the presentation. There was extended discussion by the Council about replacement costs and schedules. FLOWCHARTS, SUMMARIES, DETAIL AND POLICY BASIS FOR INTER-FUND TRANSFER ISSUES AND ACCOUNTING GENERAL FUND 2012 OVERHEAD Mr. Timmons reviewed the flow chart showing administrative overhead charges for the General Fund. The rate charged is an across the board 10% and the chart also shows non-program expenses which are supported by the funding. Some departments have programmatic costs which are covered by the department's revenue. Departments without a revenue stream are supported by the 10% overhead allocation. Mr. Timmons said that if the Council is happy with this format, a more detailed version can be created. He added that a more sophisticated model would require intensive time and analysis. Mr. Legarsky explained that the more complex budget documents become, the more difficult it is to explain in terms that the public will understand. He stated that 10% overhead is a good simple allocation and does not result in any over-allocations. Ms. Nelson noted that reviewing the budget is very challenging and Council asked for some simpler flow charts or explanations, anything that would help track cost allocations. Mr. Timmons stated that one of the purposes of these meetings is to get feedback on how to do a better job of explaining the budget. Mr. Timmons noted that the practice is reviewed annually by the Finance Department to insure there are no over-allocations. Mr. Legarsky stated that federal grants require more complicated accounting and the 10% cost allocation does not apply to projects covered by grants. He added there are no statutes that set limits on indirect cost allocations. The state auditor's office is starting to review these charges for local governments. Ms. Nelson said a budget appendix could also include frequently asked questions or explanations of basic budget principles. Council agreed the narrative included with the supplemental budget was very helpful. A paragraph or footnote explaining some of the principles would be helpful throughout the budget. Mr. Gray stated that the management letter is important as it gives an overview of the budget. In response to Mr. Gray, Mr. Timmons noted that the FCS group did help to develop capital management reports for each project. CAPITAL PROJECTS AND FUNDS City Council Workshop July 9, 2012 Page 2 of 4 COMPREHENSIVE 5-YEAR CAPITAL PLAN City Manager Timmons stated that budgeting for a project which is delayed has a direct effect on the financial reports. We are now working on improving predictability. He said the Library project is a good example of a complex project with several stages which is currently included in the five-year plan. City Engineer Dave Peterson reviewed the five year capital plan. He stated that to lead into the budget cycle, it is important to know what we are planning to accomplish next year so planning can be done to have appropriate staffing for the project and so that areas that depend on project overhead can budget for the year. Staff also wants to make sure the plan is in sync with council and community needs and priorities. He reviewed the chart in the packet showing the major projects underway and the timelines currently associated with those projects. These include the Waterfront Esplanade Phase 2, Library Seismic Retrofit, Downtown Tunnel Lids which is almost completed, Howard Street, Hastings Avenue sidewalk, Sheridan Street/Hospital District, Kanu Drive Sewer, Long Term 2 Enhanced Surface Water Treatment, City Lake Outfall Phase I and Il, Pool, Library Expansion, South End Sewer, Sewer Outfall, and Street Projects. Mr. Timmons stated that the schedule will be divided into"active and pending projects. Active projects are funded and ready to go. Pending projects are those which have a preliminary scope but do not have secured funding. We will not budget based on a pending project. If a pending project moves into the active list then the revenues and expenditures will be adopted through a supplemental budget process. Projects will be broken down between general government, streets, and utilities. Routine capital maintenance is accounted for in the operating budget, not the five- year capital plan. Mr. Timmons noted that there could be a capacity situation if staffing is not sufficient for active projects. In that case project management might be outsourced. Mayor King declared a recess at 8:24 p.m. for the purpose of a break. The meeting was reconvened at 8:35 p.m. LIBRARY PRESENTATION City Manager Timmons introduced Library Director Theresa Percy to present a review of the Library project to show the complexity of the project and how it fits into the five-year capital plan. Ms. Percy gave a brief introduction and introduced Library Associate Keith Darrock. Mr. Darrock reviewed the Powerpoint presentation included in the packet materials. The presentation emphasized the Library's new role as a community hub and a partner in many needed services to citizens. City Council Workshop July 9, 2012 Page 3 of 4 CHANGED FINANCIAL CONDITIONS 2012 Bond Refinancing Result Mr. Timmons reviewed the refinancing of the debt which will save the City $720,000 over the next few years. The immediate savings this year is $100,000.00. The debt repayment bumps have also been reduced. Refinancing of the 2008 and 2010 bonds may be possible in the coming years. Mayor King noted that the savings allowed the City to allocate an additional $90,000 to the pool. SCHEDULE FOLLOW-UP ACTIONS Town Meeting Proposal Mr. King reviewed the packet materials regarding town meetings. He noted this was developed by the Mayor, Deputy Mayor, City Manager and Public Services Director. This is a very preliminary draft and has been given to the Council for review at this time with discussion scheduled later this summer. Feedback from the Council is encouraged and it was noted that members of the public have been providing input as well. Mr. King stated that it is important to look at the community's various needs as well as financial information which will show the total impact on taxpayers. Ms. Nelson stated that it is hoped that the citizens as well as other municipalities will assist the Council in developing an overall plan for future needs. Ms. Sandoval asked that the Council review the final report of the Exploratory Parks and Recreation Committee that was forwarded last week. Pedestrian and Bicycle Program for 2012 Mr. Timmons gave a brief review of the pedestrian bicycle program and noted that information on the current grant will be before the Council on July 16. Mayor King initiated a brief discussion on how the Council office hours are working. No decisions were made but Councilors were asked to think about adjustments that can be made. The office phone number will be printed on the meetings schedule as well as the name of the Council member who will be in the office during particular hours. ADJOURN There being no further business the meeting was adjourned at 9:17 p.m. Attest: Pamela Kolacy, MMC � City Clerk City Council Workshop July 9, 2012 Page 4 of 4