Loading...
HomeMy WebLinkAboutCity Council Committees - Operations - 10/25/1995 OPERA.TtNS COMMITTE INS TTE S OCTOBER 25, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair, Christi Houser, Leona Orr STAFF PRESENT: Cliff Craig, Lois Deusen, Karen Ford, Becky Fowler, Dee Gergich, Mary Ann Kern,Jana King, Roger Lubovich,Brent McFall, May Miller, Ron Spang MEMBERS OF THE PUBLIC: Mr. Chen, Richard King The meeting was called to order at 9:35 a.m. by Acting Chairperson Houser. (Chairman Johnson arrived at 9:40 a.m. Approval of Vouchers: All claims for the period ending October 16, 1995, in the amount of $3,544,378.99 were approved for payment. September Financial Report Acting Chairperson Houser asked to begin with the September Financial Report. Finance Director May Miller distributed the report to the Committee. In reviewing the report, May noted that the debt service total for the Golf Course was used for capital projects;that the accumulation of funds for the City's portion of the Tacoma Pipeline is continuing, and our self insurance funds are reaching the $1 million reserves targeted. On page 5,May noted that the LID foreclosures are a small amount due to the strong collection efforts with the help of Assistant City Attorney Laurie Evezich. She continued on page 5 stating that the Council is expected to have 75%of bond capacity available by next year. May noted that the revenue is 3.5%over forecast at the end of September with expenses showing close to forecast before the annexation budget change has been added. May continued her review and on page 13 noted that manufacturing appears to be down until the one time payment received last year is backed out which shows a 4.5% increase. In reviewing the building permits, May reported detail reports for September indicate new industrial building permits for$2.5 million; new buildings of$6.7 million; 6 residential permits and 32 re-roofs. During the remainder of her review,May noted that recreation fees are still under budget and the 1996 forecast has been lowered and that the golf course has finished the summer under budget by $424,000. She stated that it is hoped that the golf course will recover next year but the projections have been lowered. May concluded her review. LID 346 Bona. Sale May Miller introduced Dick King of Lehman Brothers and explained that the LID was completed leaving a balance of$518,162 to be covered by bonds. Dick King referred the Committee to the materials included with the agenda. He stated that the interest rates had been up a bit Tuesday. Dick noted that the graph showed the twenty year trend is slightly down and stated that it is expected that the future will be stable with a slight downward trend. He explained that LID 346 is estimated to be close to the market average rate of 5.85% and that depending on the price issue and the market it is expected that it will be issued a week from today for adoption at the November 7th Council Meeting. May added that she would also be looking at refinancing the water bonds to lower interest rates and restructure debt,before the pipeline. She informed the Committee that she would be bringing any recommendations back to the Committee in the future. Committee Chair Johnson asked if there were any questions. Committeemember Houser moved to recommend authorization for the City to negotiate the sale of LID 346 Bonds for$518,162 with Lehman Brothers. unicipal Court Video Arraignment Director of Operations Brent McFall explained that at the last meeting the Committee had requested a report on video arraignment at the Court. Information Services Director Ron Spang distributed the subject status report to the Committee. Spang reviewed the diagram included with the report and noted that OPERATIONS COMMITTIE MINC*"ES, CONT. ., O CTO B E R 2.5, 1995 restricted access of the facilities involved has slowed down the project and multiple consultants, vendors, department staff and competing projects have added to the difficulties. He noted the milestone list that Dee Gergich had included which does not capture all of the many problems that are to numerous to list. Ron noted that at this point it is close to being up and running with the exception of some background noise that staff is trying to cleanup. 1996 Budget Review May Miller stated that according to the changes in the law, a public hearing on the budget and tax levy ordinance needs to be held at the next Council Meeting. She stated that the tax levy ordinance is ready but the information has not been received from the County and isn't expected until after December. May explained that the City can adopt too high and adjust it down,but not too low. McFall added that as had been mentioned at the Council Workshop, based on our evaluation, it is anticipated that the levy will be lowered. May explained that the adoption of the budget could happen at the first or second meeting in November and asked if there were any questions or additional review. Orr stated that she had no specific questions. Johnson stated that he has gone through it and commented that it was easier to read than past years. May noted that there will be some technical changes such as the public defense contract in law will need an additional $20,000 due to the cases increasing by 30%. Another change will need to be made in Police due to a few missed grants. Orr asked if there would be any public hearings. May replied that one had been held on August 1 st and the second one is scheduled for the next Council Meeting. McFall stated that the one on November 7th is required by law and the one in August was an effort to receive input from the public. He noted that the budget can be adopted the same night as the public hearing, it is up to the Committee when they would like to schedule adoption. Houser asked if the letter would be clarified where it states that 23 staff will be added and 16 police officers. McFall replied that it would be fixed. Houser questioned page I-42 asking if this would approve the City Administrative Offices being funded by Councilmanic Bonds. Miller responded that this was only a plan and would be adopted separately in 1997 with any proposed funding. McFall stated that a balance needs to be looked at when considering Councilmanic Bonds since the capacity allowed does not guarantee an ability to pay them off within existing revenues. Miller stated that a conservative,approach was used in putting together the budget with reduced park fees and modest sales tax increases projected. McFall recommended that the ordinance adopting the budget be adopted at the next Council Meeting with the ordinance setting the tax levy. Orr so moved,Houser seconded and the motion carried 3-0. May stated that she would explain any technical changes made at the Council Meeting. Committee Chair Johnson asked if there was any further business. There being none brought forward the meeting was adjourned at 10:17 a.m. Page 2 OPE RATtNS COMMITTE r IN' TE S OCTOBER 25, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair, Christi Houser, Leona Orr STAFF PRESENT: Cliff Craig, Lois Deusen, Karen Ford, Becky Fowler, Dee Gergich, Mary Ann Kern, Jana King, Roger Lubovich,Brent McFall, May Miller, Ron Spang MEMBERS OF THE PUBLIC: Mr. Chen,Richard King The meeting was called to order at 9:35 am.by Acting Chairperson Houser. (Chairman Johnson arrived at 9:40 a.m. ,Approval of Vouchers: All claims for the period ending October 16, 1995, in the amount of $3,544,378.99 were approved for payment. September Financial Report Acting Chairperson Houser asked to begin with the September Financial Report. Finance Director May Miller distributed the report to the Committee. In reviewing the report, May noted that the debt service total for the Golf Course was used for capital projects;that the accumulation of funds for the City's portion of the Tacoma Pipeline is continuing, and our self insurance funds are reaching the $1 million reserves targeted. On page 5,May noted that the LID foreclosures are a small amount due to the strong collection efforts with the help of Assistant City Attorney Laurie Evezich. She continued on page 5 stating that the Council is expected to have 75%of bond capacity available by next year. May noted that the revenue is 3.5%over forecast at the end of September with expenses showing close to forecast before the annexation budget change has been added. May continued her review and on page 13 noted that manufacturing appears to be down until the one time payment received last year is backed out which shows a 4.5% increase. In reviewing the building permits, May reported detail reports for September indicate new industrial building permits for$2.5 million; new buildings of$6.7 million; 6 residential permits and 32 re-roofs. During the remainder of her review,May noted that recreation fees are still under budget and the 1996 forecast has been lowered and that the golf course has finished the summer under budget by $424,000. She stated that it is hoped that the golf course will recover next year but the projections have been lowered. May concluded her review. LID 346 Bond. Sale May Miller introduced Dick King of Lehman Brothers and explained that the LID was completed leaving a balance of$518,162 to be covered by bonds. Dick King referred the Committee to the materials included with the agenda. He stated that the interest rates had been-up a bit Tuesday. Dick noted that the graph showed the twenty year trend is slightly down and stated that it is expected that the ffiutµre will be stable with a slight downward trend. He explained that LID 346 is estimated to be close to the market average rate of 5.85% and that depending on the price issue and the market it is expected that it will be issued a week from today for adoption at the November 7th Council Meeting. May added tht she would also be looking at refinancing the water bonds to lower interest rates and restructure debt before the pipeline. She informed the Committee that she would be bringing any recommendations back to the Committee in the future. Committee Chair Johnson asked if there were any questions. Committeemember Houser moved to recommend authorization for the City to negotiate the sale of LID 346 Bonds for$518,162 with Lehman Brothers. Municipal Court Video Arraignment Director of Operations Brent McFall explained that at the last meeting the Committee had requested a report on video arraignment at the Court. Information Services Director Ron Spang dt'ibuted the subject status report to the Committee. Spang reviewed the diagram included with the report and noted that OPERATIOW COMMITTEE MIN*-ES, CONT. OCTOBER2,-5, 1AA5 restricted access of the facilities involved has slowed down the project and multiple consultants, vendors, department staff and competing projects have added to the difficulties. He noted the milestone list that Dee Gergich had included which does not capture all of the many problems that are to numerous to list. Ron noted that at this point it is close to being up and running with the exception of some background noise that staff is trying to cleanup. 1996 Budget Review May Miller stated that according to the changes in the law, a public hearing on the budget and tax levy ordinance needs to be held at the next Council Meeting. She stated that the tax levy ordinance is ready but the information has not been received from the County and isn't expected until after December. May explained that the City can adopt too high and adjust it down,but not too low. McFall added that as had been mentioned at the Council Workshop, based on our evaluation, it is anticipated that the levy will be lowered. May explained that the adoption of the budget could happen at the first or second meeting in November and asked if there were any questions or additional review. Orr stated that she had no specific questions. Johnson stated that he has gone through it and commented that it was easier to read than past years. May noted that there will be some technical changes such as the public defense contract in law will need an additional $20,000 due to the cases increasing by 30%. Another change will need to be made in Police due to a few missed grants. Orr asked if there would be any public hearings. May replied that one had been held on August 1 st and the second one is scheduled for the next Council Meeting. McFall stated that the one on November 7th is required by law and the one in August was an effort to receive input from the public. He noted that the budget can be adopted the same night as the public hearing, it is up to the Committee when they would like to schedule adoption. Houser asked if the letter would be clarified where it states that 23 staff will be added and 16 police officers. McFall replied that it would be fixed. Houser questioned page I-42 asking if this would approve the City Administrative Offices being funded by Councilmanic Bonds. Miller responded that this was only a plan and would be adopted separately in 1997 with any proposed funding. McFall stated that a balance needs to be looked at when considering Councilmanic Bonds since the capacity allowed does not guarantee an ability to pay them off within existing revenues. Miller stated that a conservative approach was used in putting together the budget with reduced park fees and modest sales tax increases projected. McFall recommended that the ordinance adopting the budget be adopted at the next Council Meeting with the ordinance setting the tax levy. Orr so moved,Houser seconded and the motion carried 3-0. May stated that she would explain any technical changes made at the Council Meeting. Committee Chair Johnson asked if there was any further business. There being none brought forward the meeting was adjourned at 10:17 a.m. Page 2