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HomeMy WebLinkAbout081114CITY OF PORT TOWNSEND MINUTES OF THE WORKSHOP OF AUGUST 11, 2014 CALL TO ORDER The Port Townsend City Council met in workshop session the 11th day of August 2014 in the Council Chambers at 540 Water Street. The meeting was called to order at 6:30 p.m. by Mayor David King. ROLL CALL Councilmembers present at roll call were Pamela Adams, Robert Gray, David King, Kris Nelson, Catharine Robinson, Michelle Sandoval, and Deborah Stinson. Staff members present were City Manager David Timmons, Finance Director Nora Mitchell, City Attorney Steve Gross, Community Services Director Rick Sepler, Public Works Director Ken Clow, City Engineer David Peterson, Interim Library Director Bev Shelton, and Deputy City Clerk Joshua Stecker. . CHANGES TO THE AGENDA There were none. AREAS OF CONCERN Citizen concern database Finance Director Nora Mitchell presented a list of community priorities and concerns. Calls for police/fire/EMS service have increased significantly this year. The causes for this increase are not known at this point. Ms. Mitchell also presented council data on formal requests and complaints to Community Services and Public Works. Tracking numbers were provided showing shut off notices mailed and actual shut off occurrences. Specific department heads' budget priorities were outlined in the presentation. City Manager David Timmons noted that the list was not comprehensive but reflected the highlights of the department heads' requests. David King noted that not all requests were of the same level of magnitude. Ms. Mitchell noted that some of the items would have to be addressed beyond 2015. Community Economic Indicators City Manager David Timmons noted that sales tax revenue is lagging slightly this year. Heavy construction and commercial projects are down this year while small sales tax City Council Workshop Meeting August 11, 2014 Page 1 of 4 generators are growing. Lodging tax is stalled but may reflect a reporting delay from Fort Worden. Revenue should rebound with several large projects commencing in the last quarter of the year. Mr. Timmons noted that roof replacement permits are increasing this year suggesting citizens have the means to address deferred maintenance. 2014 MIDYEAR BUDGET REPORT AND STATUS Six month status report Ms. Mitchell identified payroll as the largest expense factor in the General Fund. Some areas such as police and city clerk are over budget leading to a budget deficit of $16,000. The Library Fund will have costs related to renovation recoded to capital expenses instead of operating expenses. In response to Pamela Adams' inquiry, Community Services Director Rick Sepler advised council that the budget surplus in the Community Services Fund would be applied to repairs of old City Hall, the Cotton Building, and the Bell Tower. Michelle Sandoval would like to see some of the funds used to address the public restrooms at the Cotton Building. Ms. Mitchell will be working to clean up the Equipment Rental Fund and the Engineering Fund. Capital Projects status report David Timmons updated Council on the Water System and Howard Street projects and the affect of those projects on the 2015 budget. The Howard Street project is on schedule to begin next year. Financial Policies and Forecast Nora Mitchell informed Council that the Finance Department would be updating and refining the 2014 Supplemental Budget passed earlier in the year. Strategic Plan Mr. Timmons advised Council that staff will update the Strategic Plan with progress to date in preparation for the Comprehensive Plan update. Mr. Timmons confirmed that Council has the option to implement a 2 -year budget in 2017. Council may explore the possibility in the future with a decision due by July of 2016. City Council Workshop Meeting August 11, 2014 Page 2 of 4 Mr. Timmons emphasized that the Strategic Plan is a priority, but not the only thing Council can address. Ms. Mitchell outlined the statutory steps for the 2015 budget calendar. BUDGET PRIORITIES - ASSUMPTIONS Debt Service - Allocations Ms. Mitchell showed Council where the funds come from to pay debt service allocations. Mr. Timmons noted that the City may be in a position to do an early refinance of 2008 bonds. Existing Payroll Ms. Mitchell identified staffing as one of the largest expenses. Cost of living adjustments could increase payroll by up to 2%. Public Employees Retirement System rate will also be increasing in 2015. Both union contracts will be negotiated this year. Mr. Timmons will work on a compensation policy based on the newly received compensation study. Meet existing service levels - Police Priority Mr. Timmons noted that lateral hires from other police departments save training money. The City is waiting to hear back on an offer to a potential Parks & Facilities Manager and that the position will not need to be funded out of Council's reserve. Capital Plan/Program 2015 - 2019 Mr. Timmons advised Council that the City is waiting to hear on the USDA water treatment loan and waiting on Olympia funding the trust fund with $124 million available. SPECIAL PURPOSE FUND REVIEWS Equipment Rental and Replacement Fund Mr. Timmons would like to divide out the Equipment Rental and Replacement Fund by class - including public safety, heavy equipment, enterprise fund, general services. Lodging Tax Fund Mr. Timmons reported that Lodging Tax revenue has stalled, possibly due to reporting errors from Fort Worden. He also noted that the Visitors Center is moving to a new location with increased visibility. City Council Workshop Meeting August 11, 2014 Page 3 of 4 Library Fund Mr. Timmons advised Council that staff will be looking at cost recovery implications after the move back to the Carnegie Building. The search for a new Library Director has been accelerated. Public Works Mr. Timmons noted that the $3 water and wastewater surcharge is working and could possibly be applied to stormwater. In other jurisdictions, Transportation Benefit Districts are being set up but not funded. Real Estate Excise Tax (REST) Mr. Timmons informed Council that the City will need to look into the allocation of Real Estate Excise Tax funds. Fire Mr. Timmons suggested it may be time to start an annexation conversation after equalization. Housing Trust Mr. Timmons advised Council the Habitat for Humanity will be coming forward with a PUD plan. Settlement in another matter may include contributions to the Housing Trust Fund. STREETS Non federal aid funding Mr. Timmons noted a concern about Federal and State transportation funding reappropriations. ADJOURN The meeting adjourned at 8:32 p.m. Attest: :-- Joanna Sanders, CMC City Clerk City Council Workshop Meeting August 11, 2014 Page 4 of 4