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HomeMy WebLinkAbout10231999 PORT TOWNSEND CITY COUNCIL MINUTES OF THE STUDY SESSION OF OCTOBER 23, 1999 Call to Order and Roll Call The meeting was called to order at 9:05 a.m. by Deputy Mayor Geoff Masci in the City Council Chambers at City Hall. Council members present were Joe Finnie, Allen Frank, Syd Lipton, Geoff Masci, Vern Garrison, and Alan Youse. Forrest Rambo was excused. Staff members present were City Manager David Timmons and City Clerk Pam Kolacy. City Manager's Preliminary Budget Presentation City Manger Dave Timmons introduced his preliminary budget recommendations to the council, He recommended that the council adopt a process which will avoid a "pressure cooker" atmosphere during adoption of the budget. This would involve the council's selection of certain activities within the budget for further study. These items would be referred to a committee (Finance, Public Safety, Public Works) for special study concurrent with the budget adoption process. Recommendations from the various committees would be made to the council both before final adoption and into the year 2000 as issues are discussed and resolved through a budget amendment process. Other issues addressed included: Allocation of the 6% real estate tax levy increase to a contingency reserve fund which would require a super majority of council approval to expend. This contingency fund would help to offset the effects of the passage of 1-695. Funds traditionally classified as "non-departmental" will be allocated to the Council's budget. Requests for expenditure of those funds will be made directly to the City Council. Charging Tri-Area water customers according to rate of return. Preliminary estimates show the City has been undercharging the area, and a rate increase will be recommended to cover major capital expenditures that are upcoming. The City currently has 108.5 regular employees. No staff cuts are anticipated in the preliminary budget; however the year end goal for 2000 is a 5% staff reduction through attrition and early retirement. Early retirement is currently not possible from the state system without penalty; the Teamsters are among those who will be lobbying the state legislators for a change in the state PERS retirement system to enable cities to offer early retirement incentives. City Council Study Session Page 1 October 23, 1999 Collision insurance premiums for vehicles and equipment would be substantially cut if the deductible is raised to $25,000 and that amount is set aside as self-insurance. Utility rates were not increased last year; preliminary estimates show that a 4% increase will be recommended in 2000. A pattem of deficit General Fund spending over the past three years was identified. Mr. Timmons will provide a list of recommended items of study for committees. The Fire/EMS budget will require renegotiation with Fire District//6, with additional revenues of at least $40,000 required to maintain service to the district. The question of whether these services should be provided at a cost only basis will also be discussed. The contract for services with Jefferson County will be rolled over for another year at the same cost. The council members will be prepared to discuss the budget at the upcoming staff retreat. Public process will be built during the budget process this year and into next year as amendment recommendations are forthcoming. Aproforma on surplus property was requested and Mr. Timmons stated one should be available by the first of the year. After some final revisions and corrections, the final preliminary budget will be filed with the Clerk on Oct. 29 or Nov. 1. The meeting was adjourned at 11:00 a.m. Attest: Pamela Kolacy City Clerk City Council Study Session Page 2 October 23, 1999