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HomeMy WebLinkAbout101314CITY OF PORT TOWNSEND MINUTES OF THE WORKSHOP OF OCTOBER 13, 2014 CALL TO ORDER The Port Townsend City Council met in workshop session on October 13, 2014 in the 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 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, Public Works Director Ken Clow, Community Services Director Rick Sepler, City Engineer David Peterson, and City Clerk Joanna Sanders . CHANGES TO THE AGENDA There were none. 2015 BUDGET DISCUSSION/2014 BUDGET REVIEW City Manager David Timmons gave a 2014 budget overview, noting that revenue projections are under close review. A new budget module is being used that will more closely tie with the general ledger. Finance Director Nora Mitchell noted that General Fund shortfalls are due to decreased retail sales activity and a significant decrease in building permit revenues. She reviewed a budget status update for 2014 and a list of 2015 items under review. On the fund summary, she said there are less than desirable ending fund balances in the Contingency Fund and Community Services Fund. Mr. Timmons stated that much in the 2015 budget would depend on the ballot measure. Regarding the water utility projects, the City would need to explore short-term financing options depending on whether the City uses the State Drinking Water Revolving Loan Fund and USDA loans. Capital Improvement Funds are comprised of roughly a dozen funds and would now be reported separately. The Mountain View boiler repair is expected to be done in November, but the City would likely need to obtain a line of credit to do Mountain View repairs before bond measure proceeds would be available. Discussion shifted to the Comprehensive Planning process beginning in 2015. Mr. Timmons announced Community Services Director Rick Sepler has resigned his position. The packet contained a letter from the Department of Commerce regarding the consequences for not completing the process. He reviewed staffing changes and City Council Workshop October 13, 2014 Page 1 of 2 two organizational charts reflecting changes made in public works director responsibilities. Due to needs associated with the Comprehensive Plan process, a more traditional model is being sought and he would be eliminating the position of community services director. in addition, due to increased code enforcement activities, Public Works would resume responsibility for facilities, fleet and parks. Adding a position of deputy public works director would create more depth in Public Works in the event of another transition. He also summarized recent staffing transitions in the finance manager, city attorney, clerk, and human resource functions. In next year's budget, the City would not be able to maintain Council reserves as unrestricted. The Public Safety sales tax is expected to be paid in full in February. After reviewing upcoming projects, including Howard Street and sidewalks improvements, discussion shifted to Fort Worden Public Development Authority historic tax credits for renovating Building 202. Once the interfund loan for Main Street is paid, funding would be shifted to support the Chamber, Visitor Center and Economic Development office. Council questions related to the Utility Fund and Lodging Tax reserves, continued needs for human resources functions into the future, and whether the new budget module would negatively impact the ability to respond to future audits. In discussing the budget schedule, it was noted that November 3 is the property tax levy hearing. Mr. Timmons noted that 2015 estimated revenues would be status quo with 2014. Discussions with the County assessor revealed the City is anticipating a 5-6% growth projection due to new construction and market changes. The City also received a PUD privilege tax and it has now been coded properly. Mr. Timmons announced that he would be meeting with the Olympic Region YMCA next week regarding Mountain View. Mayor King reported that he received notification from the U.S. Navy that there would be a significant expansion of the Environmental Impact Statement for Growler operations at NAS Whidbey. Three public meetings would be held in Coupeville, Anacortes, and Oak Harbor and he would be sending a letter asking that Port Townsend be included. There were no Council objections. There being no further business, the meeting adjourned at 7:56 p.m. Attest: Joanna Sanders, CMC City Clerk City Council Workshop October 13, 2014 Page 2 of 2