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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 05/19/2020 Approved City Council Workshop Workshop Regular Meeting Minutes May 19, 2020 Date: May 19, 2020 Time: 5:00 p.m. Place: Chambers I. CALL TO ORDER Attendee Name Title Status Arrived Toni Troutner Council President Present Bill Boyce Councilmember Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Present Les Thomas Councilmember Present Dana Ralph Mayor Present II. PRESENTATIONS 1 Budget Paula Painter 90 MIN. Finance Director, Paula Painter provided the Council with an extensive update on the 2020 budget. On April 14, 2020 a presentation was made during the Committee of the Whole that included the potential 2020 revenue impacts due to COVID-19 and the funds that are impacted. Since April, staff has conducted budget reduction exercises, and created a plan, including a communications plan. Painter provided details on the CARES Act: § The Federal Government passed the CARES Act § The State is making some funds available to cities with populations under 500K (Calculated at: population x $30 = nearly $3.9 million) § Grant agreements will be brought before the Council The funds have a limited use and can be used on new costs directly associated with COVID-19 and cannot be used for revenue loss or to address the revenue shortfalls. The Mayor’s recommendation is to use $1 million for job training and small businesses and the remaining to reimburse COVID-19 related expenditures. Painter review the role of the City Council - As City’s policy making body, and the role of the mayor - As City’s Chief Executive City Council Workshop Workshop Regular Meeting Minutes May 19, 2020 Kent, Washington Page 2 of 2 The projected revenue shortfall of $15.7 million is expected to affect the General Fund, street fund, youth/teen fund, and criminal justice fund. The City is addressing the revenue shortfall through: § Use of Fund Balance § Non-Departmental Capital Transfer Reductions § Department One-Time reductions § Departments Ongoing Reductions 2020 General Fund Expenditure Budget by department was reviewed. Painter provided extensive details on the position impacts. Painter provided details on each department’s budget reductions, both one-time and ongoing. Next Steps: § Departments to adopt proposed budget reduction plan § Aspects of plan in quarterly budget adjustment for council’s consideration o Allocate salary costs to health and wellness fund o Allocate position cost to solid waste fund § Transfer out of School Zone Camera fund to general fund § Ensure compliance with plan § Monitor impacted revenue streams Councilmembers expressed their appreciation for staff’s work on this process and acknowledged how difficult this has been. Mayor Ralph expressed how much she values the City employees and apologized for having to say goodbye to members of the City family members today. She is grateful for the recreation team and their willingness to work through this process. Without the current fund balance, many more employees would have been impacted by these reductions. Meeting ended at 6:16 p.m. Kimberley A. Komoto City Clerk 2020 Budget COVID-19 Impacts May 19, 2020 Paula Painter Finance Director Background •April 14 –Committee of the Whole •Potential 2020 revenue impacts due to COVID-19 •Focus on the General Fund •Other Funds Impacted •What’s Happened Since Then? •Budget Reduction Exercise •Creation of a Plan •Communication CARES Act •Federal Government Passed CARES Act •State making some of it available to cities with populations under 500K •Population x $30 = nearly $3.9 million •Grant Agreement to Council Soon •Limited in Use: •New costs directly associated with COVID-19 •Cannot be used for revenue loss or to address the revenue shortfalls •Therefore, is not included as part of this plan. •Mayor’s recommendation: •Use 1 Million for job training and small businesses. •The remaining to reimburse COVID-19 related expenditures. Roles & Responsibilities •Role of the City Council –As City’s Policy Making Body: •Adopt the Annual Budget •Approve Budget Adjustments increasing the expenditure budget of a fund. •Role of the Mayor -As City’s Chief Executive: •Determines how to execute Adopted Budget •Mayor may choose to underspend Adopted Budget •Most of the budget reduction plan is in the authority of the Mayor. Potential Revenue Shortfall Primary Discussion Focus: General Fund Other Funds Impacted Projected Operating Shortfall: $15.7 Million Fund Potential Shortfall (in the millions) General Fund (1000)$14.2 Street Fund (1100)$3.7* Youth/Teen Fund (1400)$0.08 Criminal Justice Fund (1600)$0.8 *A large portion of this is capital. Street operating reductions: $0.57 million Addressing the Revenue Shortfall •Use of Fund Balance •General Fund •Health & Wellness Fund •Non-Departmental Capital Transfers Reductions •Departments One-Time Reductions •Departments Ongoing Reductions Revenue Shortfall $15.7 million General Fund – Fund Balance $5.0 million Non- Departmental Capital Transfer Reductions $3.2 million Health & Wellness Fund – Fund Balance $1 million Department Reductions – Ongoing $5 million Department Reductions – One-time $1.5 million 2020 General Fund Expenditure Budget Position Impacts FTE Impact: 37.13 (Includes 3 month reduction of 10.81 FTE) AFSCME Teamsters KPOA Non-Rep Total Vacant 3 1 3 7 Bumping Into vacant position 2 2 Layoff or Retirement 4 7 11 Freeze Until further notice 2 5 7 Temporary Layoffs or Reductions (Furloughs –3 months) 23 23 Total 11 1 5 33 50 Administration 2020 2021 2022 Total Reductions $235K $210K $210K FTE Reduction 1 1 1 Notable Reductions: 2020 Only: •Eliminate Resident Survey ($30K) •Eliminate Intern Program Funding ($30K) •Community Engagement Coordinator Move 50% Funding to CDBG ($30K) Ongoing: •Executive Assistant Position Eliminated –Reduction to Council and Mayor/Admin Budget ($122k) •Reduction in City Council Professional Services ($63K) By Division 2020 2021 2022 City Council*$90K $100K $100K Mayor/Admin/Clerk $145K $110K $110K Position Reduction Action Representation Executive Assistant Retirement Non-Rep Position Funding Change To Community Engagement Coord.50% CDBG Grant Court202020212022 Total Reductions $220K $45K $45K Notable Reductions: 2020 Only: •Salary Savings ($118K) •Juror/Witness Fees ($20k) •UA Costs ($14k) Ongoing: •Overtime ($20k) •Legal Services/Protem ($25k) Salary Savings 2020 2021 2022 Overtime $58K $20K $20K Vacant Probation Officer Salary Savings $50K Move Probation Officer to DUI Court Grant $10K ECD 2020 2021 2022 Total Reductions $500K $575K $575K FTE Reduction 3 3 3 Notable Reductions: 2020 Only: •Planning Professional Services ($30K) •Rental Housing Inspection Program Professional Services ($30K) Ongoing: •LTAC Reallocation ($50k) •Position Reallocation to Sound Transit ($190K) •Position Reductions ($335K) Position Reduction Action Representation Permit Tech (TLT)Vacant AFSCME Building Inspector Layoff AFSCME Planner Layoff Non-Rep Position Funding Changes To Miscellaneous Reallocations Sound Transit Project Finance202020212022 Total Reductions $285K $285K $285K FTE Reduction 2 2 2 Notable Reductions: Ongoing: •B&O Tax Supervisor Position Eliminated ($155K) •Central Financial Analyst Position Eliminated ($122K) •Salary Savings ($8K) Position Reduction Action Representation B&O Tax Supervisor Vacant AFSCME Central Financial Analyst Vacant- Bump AFSCME Human Resources 2020 2021 2022 Total Reductions $350K $165K $165K FTE Reduction 1 1 1 Notable Reductions: 2020 Only: •Allocate Benefits Group to Health & Wellness Fund ($230K) Ongoing: •Administrative Assistant Position Eliminated ($85K) •Supplies Reduction ($5K) •Services Reduction ($75K) By Division 2020 2021 2022 HR Administration $55K $105K $105K Employment $15K $15K $15K Labor, Class & Comp $5K $5K $5K Benefits $240K $5K $5K Risk Mgmt/Training $35K $35K $35K Position Reduction Action Representation Administrative Assistant Layoff Non-Rep Information Technology202020212022 Total Reductions $495K $650K $760K Amounts to Impacted Funds $340K $445K $520K With six major business system replacements currently underway, we cannot afford to sustain reductions in 2020 beyond those shown. As a result, IT will be required to make additional cuts in the 2021/2022 biennium. Notable Reductions: •General Operating Expenditure Reductions •2020: $320K •2021: $475K •2022: $585K •Move Contracted Developer into Project (175K) Position Funding Change To Contract Developer IT Capital Project Law 2020 2021 2022 Total Reductions $205K $210K $210K FTE Reduction 1.8 1.8 1.8 Notable Reductions: 2020 Only: •Cancel Planned Remodel –Use Funding toward Operating Expenses ($50K) Ongoing: •Criminal Paralegal Position Eliminated ($120K) •Legal Secretary Position Eliminated ($90K) Position Reduction Action Representation Criminal Paralegal Vacant AFSCME Legal Secretary Layoff AFSCME Parks202020212022 Total Reductions $1.65M $1.00M $1.00M FTE Reduction 5.52 5.52 5.52 Temporary Layoffs/ Furloughs (impacting 23 positions) 10.81 Part-Time Positions That will remain unfilled 175.00 A few takeaways about the Parks budget reductions: •With the demands, Parks has safeguarded Human Services funding and has not made any reductions. •The Parks Maintenance budget has been fairly protected to ensure continued maintenance of the City’s parks. •An increase of $50K in funding for Recreation. •Recreation programs will be discontinued until August 31. •Fall/Winter programs and events will be impacted due to Furloughs. Parks Notable Reductions: 2020 Only: •Eliminate Summer Programs ($450K) •Recreation Staff Furloughs ($280K) impacting the entire Recreation Division •175 Unfilled Part-Time Positions in Recreation ($230K) •Increase Funding for Recreation Scholarships by $50K to $106K Ongoing: •Position Eliminated ($614K) •Position Funding Changes ($320K) •Publishing of Annual Program Guides from 3 to 2 ($30K) •Spotlight Series reduced to 6 shows annually ($30K) Position Reduction Action Representation Maintenance Worker 3 Vacant Teamsters Van Driver Vacant Non-Rep Parks Program Coord Retirement Non-Rep Parks Program Coord Vacant Non-Rep Parks Program Asst Layoff Non-Rep Parks Facility Lead Layoff Non-Rep Position Funding Change To Parks Program Coordinator 100% Youth/Teen Fund Parks Program Coordinator King County Levy Funding Capital Project Manager .30 FTE Facilities Lifecycle Operations Analyst .10 FTE Facilities Lifecycle Police202020212022 Total Reductions $2.15M $1.48M $1.48M FTE Reduction 3 3 3 FTE Freeze 7 7 7 Notable Reductions: 2020 Only: •Jail Medical Reduction ($54K) •School Zone Camera Fund Balance ($623K) •Yakima Jail Housing ($146K) Ongoing: •R&D Coordinator Position Eliminated ($145K) •Evidence Supervisor Position Eliminated ($107K) •Corrections Sergeant Position Eliminated ($140K) •Freeze 7 Positions ($880K) Position Reduction Action Representation R&D Coordinator Bump-Layoff AFSCME Evidence Supervisor Layoff AFSCME Corrections Sergeant Reassign- Bump-Vacant AFSCME Police Officer (5)Freeze-Vacant KPOA Records Specialist Freeze-Vacant AFSCME Corrections Officer Freeze-Vacant AFSCME Public Works 2020 2021 2022 Total Reductions $575K $575K $575K FTE Reduction 2 2 2 Notable Reductions: Ongoing: •Change Position Funding ($410K) •Engineer 3 Position Eliminated ($165K) Position Reduction Action Representation Engineer 3 Vacant Non-Rep Public Engage Coord.Layoff Non-Rep Position Funding Change To Field Supervisor 50% Solid Waste Service Fee Engineering Supervisor 25% Solid Waste Utility Tax Field Supervisor 50% Solid Waste Utility Tax Maintenance Worker 4 50% Solid Waste Utility Tax Maintenance Worker 3 (2)50% Solid Waste Utility Tax Maintenance Worker 2 50% Solid Waste Utility Tax Next Steps •Departments to Adopt Proposed Budget Reduction Plan •Aspects of Plan in Quarterly Budget Adjustment for Council’s Consideration •Allocate Salary Costs to Health & Wellness Fund $232K •Allocate Position Cost to Solid Waste Fund $64K •Transfer Out of School Zone Camera to General Fund $100K •Ensure Compliance with Plan •Monitor Impacted Revenue Streams