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HomeMy WebLinkAbout111213 CITY OF PORT TOWNSEND MINUTES OF THE SPECIAL BUSINESS MEETING OF NOVEMBER 12, 2013 CALL TO ORDER AND PLEDGE OF ALLEGIANCE The Port Townsend City Council met in special session the 12th day of November 2013 in the City Council Chambers at 540 Water Street. Mayor David King called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Robert Gray, David King, Kris Nelson, Catharine Robinson, Michelle Sandoval, Deborah Stinson, and Mark Welch. Staff members present were City Manager David Timmons, City Attorney John Watts, Special Projects Assistant Bob Jean, Deputy Finance Director Corena Stern, and Deputy City Clerk Joanna Sanders. PUBLIC HEARINGS Mayor King read the rules of procedure for legislative public hearings. Acknowledging all council members have property, there is no special financial or property interest in connection with the matters. Public Hearing Ordinance 3098, an Ordinance of the City of Port Townsend Fixing and Adopting 2014 Property Tax Levies for the General Levy with a Total Increase of One Percent (1.00%) and for the Emergency Medical Services Levy a Decrease of Approximately Fifteen Percent (15.00%) City Manager Timmons reported that the property tax levy recommended increase is one percent. The 2014 budget includes this rate in addition to any amount resulting from new construction. Special levies for the Library Fund and Emergency Medical Levy Funds are for specific uses and purposes. He explained the levy calculations devaluation that occurred with the property revaluation and the impact to the Emergency Medical Services levy. As property values increase and with annual revaluations, the EMS levy should be restored to the .50 cent level. He noted this is a complex tax calculation. The Budget in Brief document shows the property tax analysis. If the City decides to levy less than is allowed, the balance (banked capacity) could then be levied in future years. The recommendation is not to bank capacity at this time. Special Projects Assistant Bob Jean explained the average property tax increase per household. Public Comment: Rick Jahnke spoke about his desire to see economy of scale in services such as a possible annexation of the library by the County library, City Council Special Business Meeting November 12, 2013 Page 1 of 4 Mr. Timmons responded to concerns about the economy. The comprehensive plan update might be an opportunity to consider level of service alternatives. Questions from Council to which Staff responded were in the following categories: new construction estimates from the assessor, whether there has been consideration to annexing the Library, evaluating the impact of a tax increase to residents, future election expenses, whether a lower amount could be levied for the Library, banked capacity, and the rate of inflation. Public comment to clarify Council questions: None. Council deliberation: Bob Gray reported on statistics of homelessness, poverty and food bank use from Olycap's 2013 Community Assessment. When asked about the property tax impact to citizens, staff approximated the increase at $9 a year, but Mr. Timmons explained this depends on individual property valuations. He added that the commercial versus residential rates will be slightly different. He indicated Council could consider budget reductions. Several members thanked Mr. Gray for sharing the data and spoke in favor of a 1% increase to keep up with inflation and continue supporting some of the community services for vulnerable populations. Others spoke on the importance of fiscal responsibility to provide City services and to making incremental increases. Regarding fire annexation, there was caution about comparing rates from previous years with what we are paying for fire service today. The rules for and the demand for services has also changed. Mr. Timmons noted the budget does contain support for nonprofits through in-kind services although it is not directly reflected in budget. Motion. Catharine Robinson moved to approve first reading of Ordinance 3096, Fixing and Adopting 2014 Property Tax Levies for the General Levy with a Total Increase of One Percent(1.00%) and for the Emergency Medical Services Levy a Decrease of Approximately Fifteen Percent (15.0091o). Mark Welch seconded. Vote. motion carried, 6-1 by voice vote, Robert Gray opposed. Public Hearing Ordinance 3099, Adopting the Budget for the City of Port Townsend, Washington, for the Fiscal Year Ending December 31, 2014 The staff presentation was given by David Timmons. Staff is waiting on September sales tax figures to be updated (available at the end of November) and to see how the federal shutdown might affect permit activity. There would be insurance savings in the Teamsters healthcare in 2014. Other economic stimulators are the nautical school at the Northwest Maritime Center and other spinoff activities. The Fort Worden PDA signed a lease agreement with Washington State Parks on Friday and they also filed a permit application for the renovation of Building 202. There is new development interest on Upper Sims at Howard Street. The 2014 budget is basically a status quo budget with some built in contingencies that if there were growth would restore some Parks maintenance and build reserves and capacity in order to begin addressing streets. The budget maintains support of nonprofits housed at Mountain View (in-kind services) as well as support of Habitat for City Council Special Business Meeting November 12, 2013 Page 2 of 4 Humanity and Dove House. Capital projects covered in budget are for utilities and the Howard Street corridor. This budget maintains current staffing levels, but there will be some retirements and succession planning that would occur (see budget narrative). Special Projects Assistant Bob Jean reviewed some budget items on which Staff continues to work: IT cost allocation, training details (as distributed) would be raised from 1-1/2% to 1.9%. Staff needs direction from Council on updating and replacing PTTV equipment at a cost of$25,000 (monies collected from franchise are restricted in the general fund for this purpose), Capital Improvement Project details. He would also provide a comprehensive report on in-kind support as well as other updates on November 16. Public Comment: Steve Oakford spoke about the urgency of moving forward with roof repairs at Mountain View. He also spoke in support of PTTV funding for new equipment. He would also like budget allocations to carry forward from year to year. Rick Jahnke would like to see budget allocations for Mountain View and community services. He would like the City to take 1% on the property tax levy but then to bank $36,000 from the library levy. Staff response: Mr. Timmons explained that the cost to maintain Mountain View is budgeted, however, roof repairs and other repairs are not included. A $1.2 million match is needed to complete renovations and a little over $2 million is needed for the pool. The budget contains a cost allocation for a possible vote (levy or bond). However, if there is an imminent failure, there are not dollars for repairs. Additional public comments: none Motion: Mark Welch moved to approve tabling a line item review of the 2014 budget until later in the meeting. Catharine Robinson seconded. Vote. motion carried unanimously, 7-0 by voice vote. The public hearing on Ordinance 3100 would remain open. Public Hearing Ordinance 3100, Adopting 2013 Supplemental Budget Appropriations and Making Findings and Declaring an Emergency Mr. Timmons and Mr. Jean briefed Council on the supplemental budget ordinance. An item not currently included in Exhibit A supplemental budget detail is a $6,000 investment in self-checkout equipment at the Library with the move back into the Carnegie Building. The supplemental budget would include $6K when coming forward to adoption as this is not part of the current budget. There was no public comment. City Council Special Business Meeting November 12, 2013 Page 3 of 4 Council discussion on supplemental: utility tax rate increase; $30,000 FCS contract for updating the rate analysis based on cash flow model to be built to fund LT2 project changes; additional City manager travel expenses, questions about input/suggestions for cost saving measures. Bob Jean explained that the responsibility of the City Manager is to look at line item budget control and efficiencies. Council can provide input to the financial policies and there can be Council discussion of cuts in level of service. It was noted that staff also makes proposals for efficiencies during budget discussions to which Council can provide input. Mr. Timmons talked about his interest in looking for efficiencies, but also focusing on projects with a return on investment -- where the City can leverage dollars. The voice over internet protocols (VoIP) was mentioned as an example of investing in technology. The public hearing on Ordinance 3100 Supplemental Budget for 2013 would remain open. NEW BUSINESS Ordinance 3101, Amending the Port Townsend Municipal Code Chapter 3.04 to Create a Separate Unemployment Self-Insurance Fund David Timmons gave the staff report on creating a new unemployment self- insurance fund to allow the City to better track costs associated with self-insurance unemployment obligations. Motion: Catharine Robinson moved to approve waiving Council rules and approve Ordinance 3101, Amending the Port Townsend Municipal Code Chapter 3.04 to Create a Separate Unemployment Self-Insurance Fund Deborah Stinson seconded. Vote: motion carried unanimously, 7-0 by voice vote. It was suggested that Council provide any budget questions to Staff ahead of time. The next meeting on November 14 would be a budget workshop. ADJOURN There being no further business, the meeting was adjourned at 3:30 p.m. Attest: Pamela Kolacy, MMC City Clerk City Council Special Business Meeting November 12, 2013 Wage 4 of 4