HomeMy WebLinkAboutAgenda Packet - 2010-04-06 Special LAKE OSWEGO
AGENDA CITY OF LAKE OSWEGO
Centennial 1910-2010 CITY COUNCIL WORK SESSION 380 A Avenue
PO Box 369
Tuesday,April 6, 2010 Lake Oswego,OR 97034
5:30 p.m. 503-675-3984
Municipal Courtroom, 380 A Avenue www.ci.oswego.or.us
Contact: Robyn Christie, City Recorder Also published on the internet at:
Email: rchristie@ci.oswego.or.us www.ci.oswego.or.us
Phone: 503-675-3984
The meeting location is accessible to persons with disabilities. To request accommodations, please contact
Public Affairs at 503-635-0236, 48 hours before the meeting.
1. CALL TO ORDER
2. ROLL CALL
3. WORK SESSION
3.1 Financial Update
4. ADJOURNMENT
Jack Hoffman, Mayor • Roger Hennagin,Councilor • Kristin Johnson,Councilor
Donna Jordan,Councilor • Sally Moncrieff, Councilor • Mary Olson,Councilor ■ Bill Tierney,Councilor
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CITY OF LAKE OSWEGO
LAKE OSWEGO
Centennial 1910-2010
380 A Avenue
1Ni PO Box 369
Lake Oswego,OR 97034
COUNCIL REPORT 503-675-3984
www.ci.oswego.or.us
TO: Jack Hoffman, Mayor
Members of the City Council
Alex D. McIntyre, City Manager
FROM: Ursula Euler, Finance Director
SUBJECT: Financial Review as of February 28, 2010
DATE: April 6, 2010
ACTION
The content of the enclosed report is for information only and in preparation of the ensuing Fiscal Year
2010-2011 budget meetings.
INTRODUCTION/BACKGROUND
This April 6, 2010 review of the City's financial information comes just before the commencement of the
first review of the 2010-2011Proposed Annual Budget and is instead of the 3rd Quarterly Review for 2010.
It represents eight months of data through February 28, 2010 and is preparatory information for staff and
the Budget Committee.
DISCUSSION
The purpose for this review is two-fold: First, it provides the opportunity to examine and analyze year-to-
date information for this fiscal year; and second, it provides a glimpse of where we might end the year in
terms of fund balance.
I thought it important to place emphasis on revenues, especially in the General Fund, because the General
Fund operations depend on property taxes for about 58%of budgeted revenues, with the remaining
revenues coming from franchise fees, intergovernmental agreements, licenses, fees, fines, sales and
services, miscellaneous revenues (e.g. grants, investment earnings, sales of capital assets), and other
Financing Sources, meaning internal charges for administrative overhead, known as Transfers.
The following discussion is in fund order.
Page 2
GENERAL FUND
Revenues
The lion-share of property taxes is collected and distributed by the counties in late November and early
December; followed by the distribution of the second and third installments in early March and early June.
The following table summarizes collection information and is for 2010 except where otherwise noted:
Received as Received as a Collection
Property of Feb 28, Percentage of Percentage as
Budget Taxes 2010 Budget of Feb 28, 2009 Trend
$24,515,000 Current Year $22,053,924 89.96% 89.06% On track
$ 915,000 Delinquent $ 614,755 67.19% 65.59% On track
If the 2009 collection trend holds, we will at least collect what we budgeted. The 2010-2011 property tax
budget was based on an estimated assessed value of$5,269,968,257, when the most recent assessment
valuation reports assessed a value of$5,286,444,776, $16,476,519 higher than estimated. This tells us that
the assessed value increase of 3% and the construction growth estimate of 1% used for the 2010 budget
was realistic and could be relied on again in 2010-2011.
Defaults play a role as well. A default rate of 6% is already taken into consideration. Delinquent taxes are
usually collected in following years and have also been on track with plan.
Franchise fees are somewhat of a different story. The lagging economy is affecting our franchisees. We
receive the majority of our franchise fees from five companies, and smaller amounts from two additional
companies. Below you will find a chart displaying receipts and estimates for the remainder of the year:
Add'I Est'd%of Payment
Company Budget Received Expected Budget Frequency Trend
NW Natural Gas $580,000 $558,858 - 96% Once a year Lagging
PG&E-Street $500,000 - $500,000 100% Once a year On track
PG&E-General Fund $623,000 - $557,468 90% Once a year Lagging
Comcast $468,000 $229,902 $218,000 96% Quarterly Lagging
Allied Waste $310,000 $156,912 $123,000 90% Quarterly Lagging
Qwest $125,000 $ 44,055 $56,000 80% Monthly Lagging
Verizon $ 47,000 $ 46,907 $24,000 151% Monthly Ahead
Electric Lightwave $ 42,000 $ 14,647 $15,000 71% Quarterly Lagging
It does not appear we will be able to meet budget here, and I estimate the lag to be around $151,000 in
the General Fund.
Intergovernmental Revenue includes state-shared revenues from liquor and cigarette taxes, State funds for
Police 9-1-1 services, Library District money, and grants. Highway taxes are also Intergovernmental
Page 3
Revenues, but they benefit the Street Fund.
Several items are noteworthy here: cigarette tax collections are lagging, while liquor tax collections are
ahead of plan. The first and major distribution of the new Library District has been received in the amount
of$1,445,000, with smaller installments of about$385,000 and $96,000 expected in March and May of this
year for a total of$1,926,000. We budgeted $1,840,000.
State reimbursement for Police 9-1-1 services is also reported in this revenue category and is expected to
be realized in full, as are the Fire Department's Paramedic First Response and Tualatin Valley Fire and
Rescue Support agreements.
Licenses and Fees at 64.42% of budget seem well enough within expectations until a closer review reveals
that most licenses and fees are lagging. These are fees for business licenses, dog licenses, passports,
Hotel/Motel tax, planning development fees, and Parks and Recreation fees, to name a few. The Building
Permit Center, on the other hand, has enjoyed fees ahead of plan, partially softening the lag in the other
fees. Building Permit Center fees are, however, restricted to the Building Permit Center only (a division of
Planning & Building Services) and cannot be used to offset the declines in other licenses and fees in the
General Fund. Several fees are highly seasonal, especially in Parks and Recreation, but it stands to reason
that they may fall short by the end of the year. I hesitate to estimate by how much due to the seasonality.
Fines and Forfeitures are mostly holding and are as expected, except for one unusual restitution payment
of$150,000, received in October 2009. It was received by our Municipal Court so that it could be passed
through to claimants and increases payments equally.
Sales and Services include Fire Department's agreements with Lake Grove, Riverdale and Alto Park, Adult
Community Center fees, Police dispatch services for the cities of West Linn and Milwaukie, Athletic Field,
Park Usage and Building Rental fees, and Recreation Program fees. Many of the latter services gear up for
the Spring, and we hope that the current lag is only temporary.
Miscellaneous Revenues consist of investment income, donations, insurance reimbursement, when we
receive one (and we did), sponsorships, and other sundry items. We received a large reimbursement from
one of the two Health Insurers, Pacific Source, in the amount of$336,000. Without the insurance
reimbursement, our miscellaneous revenue would be lagging.
Other Financing Sources are indirect charges made to departments within the General Fund and to other
funds for administrative overhead costs, such as legal, human resource, and accounting services,
information technology, insurance, Geographic Information System, and other services, as well as proceeds
from any bonds and sale of assets. This budget includes the sale of the 619 Maple Street property, which is
now deemed unlikely and the proceeds, budgeted at $360,000, will not be realized.
What does this all mean for 2010 and 2011? The City of Lake Oswego is not immune to the current decline
in the economy, and we must be cautious and prudent.
Expenditures
Personal Services make up about 64% of total expenditures before Contingency, and cost-of-living
Page 4
adjustments have been incorporated into budgeted amounts. After 66.67% of the year has passed, actual
expenditures for Personal services stand at 63.29%. Some seasonal hiring, particularly in Parks and
Recreation is still to come, but it stands to reason that we may realize some 'savings' by year-end. Each one
percent will mean about$293,000.
Interest rates on our line-of-credit are still low, and interest expense on the West End Building is expected
to amount to around $400,000 by the time the second semi-annual interest payment is made. Transfers to
other funds are well within plan, while Capital Outlay is lagging. Work on the Iron Furnace is virtually
complete, but several additional vendor bills are expected for it, as well as for several other capital projects.
Funds budgeted for Capital Outlay and not spent by year-end could be used as one-time resource for 2011
planned capital projects.
TOURISM FUND
The Tourism Fund is a very `young' fund. It came into existence with the 2009 increase of the Hotel/Motel
tax from four percent to six percent. The additional two percent fund it and, as for the General Fund, this
revenue is lagging.
Per Council, it is to be used for very specific purposes. The refurbishment of the Iron Furnace and the Iron
Furnace Interpretive Center were identified as two such purposes. Work on the refurbishment of the Iron
Furnace is complete and the funds for it were provided by the General Fund until the Tourism Fund can
accumulate enough resources to begin to 'reimburse' the General Fund. This is planned to begin with a
first installment in 2011.
STREETCAR
This fund primarily serves the Willamette Shoreline Trolley, and the Lake Oswego-Portland Commuter
Streetcar project on a very incidental basis. Spending for Material and Services is for the maintenance of
the Trolley line. For 2011, we would like to rename this fund, to clarify its purpose, and budget the
Streetcar project in the General Fund's Economic Development Department. Funding for the Trolley comes
from the four members of the Trolley Consortium, Portland, Tri-Met, Clackamas County, and Lake Oswego,
and some interest income.
GOLF COURSE
Management and staff continue to keep a watchful eye on the finances of the Golf Course. We hope that
the negative effect of the economy on the Golf Course will subside and that it will recover with well-
planned capital improvements and a renewed marketing effort. At this point, Sales and Services are
lagging; and, management is adjusting spending to match expenditures with revenues as much as possible.
TENNIS FACILITY
The Tennis Facility has enjoyed great popularity, reflected in its positive trend of Sales and Services. As a
result, Personal Services and Materials and Services expenditures are on track to exceed budgeted
amounts. This may require the need to shift monies from Contingency to those categories before year-end.
Page 5
PERCENT-FOR-ART
Percent for Art is funded through a transfer from the General Fund. A recent purchase order of$38,000,
shown in 'Encumbered,' might cause spending in excess of budget. Staff has been alerted.
WATER FUND
Sales and Services can fluctuate greatly in this utility depending on weather, conservation efforts and
responses, the need for irrigation or the lack thereof, and bulk water sales. The budget includes the first
increase for the new tiered customer rate structure, and revenues realized so far track favorably against the
previous year billing pattern and the budgeted amount. This fund, as well as the fund for each of the other
utilities, is an Enterprise Fund. An enterprise fund is self-supporting, can receive General Fund resources
such as property taxes, but cannot subsidize the General Fund or other funds. However, the City has the
option to impose a utility tax on any utility, including on its own utilities. The City Manager is exploring the
possibility and feasibility of such a tax for future years.
Expenditures in Capital Outlay are lagging. As the Engineering Division is reviewing its Capital Project plan
for 2011 and later, and as it is realigning its resources with planned projects, this will improve. Any monies
not spent in one year will increase the ending fund balance of this fund and can be used by this fund, and
only this fund, in the following years.
WASTEWATER FUND
Sales and Services are slightly lagging, but not enough to cause concern for the utility. A large invoice from
the City of Portland for the treatment of wastewater has recently been received and entered for payment.
Capital outlay is ahead of schedule due to a large encumbrance for the Lake Oswego Interceptor project.
The project is moving forward and it is likely that we have to ask for additional spending authorization
toward the end of this year.
SURFACE WATER FUND
Personal Services is tracking high as compared to budget. We are putting it on a year-end budget
adjustment watch-list. Capital Outlay is lagging as well, although at a smaller scale than in the Water Fund,
and we can say that as the Engineering Division is reviewing the Capital Project plan for 2011 and later, and
as it is realigning its resources with planned projects, this will improve.
STREET FUND
Revenues for the Street Fund come from $500,000 of PGE franchise fees,the Department of Motor
Vehicles shared revenues and the Street Maintenance Fee. Recently, State vehicle registration and title
fees, and gas taxes were increased. We receive this revenue on a monthly basis and in a lump sum.
Revenues from before and after the increases are not distinguished when they are transferred into our
account. We had hoped for a revenue increase of approximately$150,000. It appears that the overall
increase might be less, possibly due to a decline in license renewals and gas consumption.
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Page 6
Personal Services is tracking high as compared to budget. We have fine-tuned the charging of certain
salary-dollars going forward, and are putting it on a year-end budget adjustment watch-list. Again, Capital
Outlay is lagging and we can say that as the Engineering Division is reviewing the Capital Project plan for
2011 and later, and as it is realigning its resources with planned projects, this will improve.
MAINTENANCE SERVICES & MOTOR POOL
This fund provides internal electrical maintenance services and repair and maintenance services on vehicles
and equipment, for which it charges its internal customers directly for labor, parts and fuel—seen in Other
Financing Sources; and, it sells fuel to the Lake Oswego School District—seen in Miscellaneous Revenues.
Its hourly labor charge has not been updated lately. It has become obvious that the cost structure needs to
be reviewed, and that it needs to be priced appropriately. In the meantime, Personal Services and Capital
Outlay are on track to go over budget. Both have been placed on our budget adjustment watch-list. The
Public Works and Finance Departments are working together to find a long-term solution.
ENGINEERING FUND
The Engineering Fund provides internal planning, design and management services for capital and major
repair/maintenance projects, mainly for the Utilities and other than for LOIS and the L.O.-Tigard Water
Partnership. Several of its engineers were directly placed into the latter two, in an effort to directly
capture, report and control their project management costs. The City Manager's Office, Public Works and
the Finance Department are working together to find a long-term solution. So far the discussions revolved
around redirecting engineering work plans toward capital projects and reassessing the labor charge
amount.
ALL OTHER FUNDS
Notable items in all other funds not mentioned above are: Capital Outlays in the Assessment Project Fund,
Bicycle Path Fund and LORA Capital Projects Fund are also lagging. Property taxes received for the Lake
Oswego Redevelopment Agency have already exceeded expectations. Assessed property values were much
higher than estimated when the 2010 budget was prepared. The next round of debt service payments will
occur on May 31St and June 1st of 2010.
ATTACHMENTS
1. City of Lake Oswego Budget Report, as of February 28, 2010.
Reviewed by:
Alex D. McIntyre
City Manager
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LL„ City of Lake Oswego Budget Report
, „Centennial 1910- ..
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
GENERAL FUND
Beginning Fund Balance 20,002,978 20,002,978 0 0 100.00%
Total Beginning Fund Balance 20,002,978 20,002,978 0 0 100.00%
Property Taxes 25,430,000 22,668,679 0 2,761,321 89.14%
Franchise Fees 2,195,000 1,051,281 0 1,143,719 47.89%
Intergovernmental 4,122,000 2,600,205 0 1,521,795 63.08%
Licenses and Fees 2,090,000 1,346,380 0 743,620 64.42%
Fines and Forteitures 972,000 772,646 0 199,354 79.49%
Sales and Services 3,311,000 2,073,566 0 1,237,434 62.63%
Special Assessments 0 0 0 0 NaN
Miscellaneous Revenues 1,070,000 757,114 0 312,886 70.76%
Other Financing Sources 4,565,000 2,803,657 0 1,761,343 61.42%
Total Revenues 43,755,000 34,073,529 0 9,681,471 77.87%
Total Resources 63,757,978 54,076,507 0 9,681,471 84.82%
Ending Fund Balance 12,882,222 0 0 12,882,222 0.00%
Total Ending Fund Balance 12,882,222 0 0 12,882,222 0.00%
Personal Services 29,316,000 18,552,660 0 10,763,340 63.29%
Materials and Services 11,353,000 6,159,740 986,706 4,206,554 62.95%
Debt Service 600,000 180,388 0 419,612 30.06%
Transfers to Other Funds 3,098,000 2,038,365 0 1,059,635 65.80%
Capital Outlay 1,718,000 585,878 294,176 837,947 51.23%
Contingency 4,790,756 0 0 4,790,756 0.00%
Total Expenditures 50,875,756 27,517,031 1,280,882 22,077,844 56.60%
Total Requirements 63,757,978 27,517,031 1,280,882 34,960,066 45.17%
Resources Over/Under Requirements 0 26,559,476 1,280,882 25,278,595
Printed- 3/25/2010 4:31 PM Page 1 of 16
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LAKEOSWF.Go City of Lake Oswego Budget Report
Centennial 7410-2010
gM1 February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
TOURISM FUND
Beginning Fund Balance 0 0 0 0 NaN
Total Beginning Fund Balance 0 0 0 0 NaN
Licenses and Fees 320,000 151.566 0 168,434 47.36%
Miscellaneous Revenues 12,000 191 0 11,809 1.59%
Total Revenues 332,000 151,757 0 180,243 45.71%
Total Resources 332,000 151,757 0 180,243 45.71%
Ending Fund Balance 32,000 0 0 32,000 0.00%
Total Ending Fund Balance 32,000 0 0 32,000 0.00%
Materials and Services 175,000 0 0 175,000 0.00%
Transfers to Other Funds 0 0 0 0 NaN
Capital Outlay 125,000 43,290 79,244 2,466 98.03%
Total Expenditures 300,000 43,290 79,244 177,466 40.84%
Total Requirements 332,000 43,290 79,244 209,466 36.91%
Resources Over/ Under Requirements 0 108.467 79,244 29,224
Printed- 3/25/2010 4:31 PM Page 2 of 16
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„'',Cent 1910.20 . tips.
City of Lake Oswego Budget Report
a
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
STREETCAR
Beginning Fund Balance 380,674 474,775 0 94,101 124.72%
Total Beginning Fund Balance 380,674 474,775 0 94,101 124.72%
Intergovernmental 60,000 0 0 60,000 0.00%
Miscellaneous Revenues 11,000 4,536 0 6,464 41.24%
Other Financing Sources 20,000 13,332 0 6,668 66.66%
Total Revenues 91,000 17,868 0 73,132 19.64%
Total Resources 471,674 492,643 0 20,969 104.45%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Materials and Services 126,000 95,341 14,229 16,430 86.96%
Transfers to Other Funds 0 0 0 0 NaN
Contingency 345,674 0 0 345,674 0.00%
Total Expenditures 471,674 95,341 14,229 362,104 23.23%
Total Requirements 471,674 95,341 14,229 362,104 23.23%
Resources Over/Under Requirements 0 397,302 14,229 383,073
Printed- 3/25/2010 4:31 PM Page 3 of 16
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, c.4'4' ,e„g,o2�, City of Lake Oswego Budget Report
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
GOLF COURSE FUND
Beginning Fund Balance 12,998 24,366 0 11,368 187.46%
Total Beginning Fund Balance 12,998 24,366 0 11,368 187.46%
Sales and Services 819,000 397,658 0 421,342 48.55%
Miscellaneous Revenues 11,000 19,616 0 (8,616) 178.33%
Other Financing Sources 15,000 0 0 15,000 0.00%
Total Revenues 845,000 417,274 0 427,726 49.38%
Total Resources 857,998 441,641 0 416,357 51.47%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 554,000 320,220 0 233,780 57.80%
Materials and Services 248,000 126,522 10,500 110,978 55.25%
Transfers to Other Funds 32,000 22,129 0 9,871 69.15%
Capital Outlay 0 0 0 0 NaN
Contingency 23,998 0 0 23,998 0.00%
Total Expenditures 857,998 468,871 10,500 378,627 55.87%
Total Requirements 857,998 468,871 10,500 378,627 55.87%
Resources Over/Under Requirements 0 27,231 10,500 37,731
Printed- 3/25/2010 4:31 PM Page 4 of 16
,.,i.,‘*-'0.,!!:;q4iAlkq)
t � frw'ec-10,44 City of Lake Oswego Budget Report
;476ntennial1910.29f i
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
TENNIS FACILITY FUND
Beginning Fund Balance 368,013 462,879 0 94,866 125.78%
Total Beginning Fund Balance 368,013 462,879 0 94,866 125.78%
Licenses and Fees 3,000 1,327 0 1,674 44.22%
Sales and Services 327,000 319,761 0 7,239 97.79%
Miscellaneous Revenues 11,000 7,171 0 3,829 65.19%
Total Revenues 341,000 328,258 0 12,742 96.26%
Total Resources 709,013 791,137 0 82,124 111.58%
Ending Fund Balance 150,000 0 0 150,000 0.00%
Total Ending Fund Balance 150,000 0 0 150,000 0.00%
Personal Services 135,000 90,532 0 44,468 67.06%
Materials and Services 151,000 76,082 44,925 29,993 80.14%
Transfers to Other Funds 108,000 72,082 0 35,918 66.74%
Capital Outlay 60,000 16,642 0 43,358 27.74%
Contingency 105,013 0 0 105,013 0.00%
Total Expenditures 559,013 255,338 44,925 258,750 53.71%
Total Requirements 709,013 255,338 44,925 408,750 42.35%
Resources Over/Under Requirements 0 535,799 44,925 490,874
Printed- 3/25/2010 4:31 PM Page 5 of 16
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LAKE OSWEGO City of Lake Oswego Budget Report
Centennial 1910-2010im'
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
PERCENT FOR ART
Beginning Fund Balance 16,867 14,028 0 2.839 83.17%
Total Beginning Fund Balance 16,867 14,028 0 2,839 83.17%
Miscellaneous Revenues 0 273 0 273 -Infinity
Other Financing Sources 100,000 66,668 0 33,332 66.67%
Total Revenues 100,000 66,941 0 33,059 66.94%
Total Resources 116,867 80,969 0 35,898 69.28%
Ending Fund Balance 11,867 0 0 11,867 0.00%
Total Ending Fund Balance 11,867 0 0 11,867 0.00%
Materials and Services 93,000 56,500 38,000 11.500} 101.61%
Transfers to Other Funds 0 0 0 0 NaN
Capital Outlay 12,000 0 10,000 2,000 83.33%
Total Expenditures 105,000 56,500 48,000 500 99.52%
Total Requirements 116,867 56,500 48,000 12,367 89.42%
Resources Over I Under Requirements 0 24,469 48,000 23,531
Printed- 3/25/2010 4:31 PM Page 6 of 16
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:; , ` N; City of Lake Oswego Budget Report
.centennial 1916-20t i,'
e
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
WATER FUND
Beginning Fund Balance 7,815,300 8,484,209 0 668,909 108.56%
-
Total Beginning Fund Balance 7,815,300 8,484,209 0 668,909 108.56%
Intergovernmental 0 0 0 0 NaN
Licenses and Fees 0 13,238 0 13,238 -Infinity
Sales and Services 5,537,000 4,249,518 0 1,287,482 76.75%
Miscellaneous Revenues 105,000 122,065 0 17,065 116.25%
Other Financing Sources 0 0 0 0 NaN
Total Revenues 5,642,000 4,384,821 0 1,257,179 77.72%
Total Resources 13,457,300 12,869,029 0 588,271 95.63%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 1,363,000 910,073 0 452,927 66.77%
Materials and Services 2,174,000 1,004,352 106,093 1,063,555 51.08%
Debt Service 814,000 754,558 0 59,442 92.70%
Transfers to Other Funds 956,000 621,666 0 334,335 65.03%
Capital Outlay 1,663,000 123,381 5,959 1,533,660 7.78%
Contingency 6,487,300 0 0 6,487,300 0.00%
Total Expenditures 13,457,300 3,414,031 112,052 9,931,218 26.20%
Total Requirements 13,457,300 3,414,031 112,052 9,931,218 26.20%
Resources Over/Under Requirements 0 9,454,999 112,052 9,342,947
Printed- 3/25/2010 4:31 PM Page 7 of 16
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�� 41thy City of Lake Oswego Budget Report
* ntennial 1910 2.
' )
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
WASTEWATER FUND
Beginning Fund Balance 57,966,185 62,054,877 0 4,088,692 107.05%
Total Beginning Fund Balance 57,966,185 62,054,877 0 4,088,692 107.05%
Licenses and Fees 0 315,806 0 315,806 -Infinity
Sales and Services 7,816,000 5,131,334 0 2,684,666 65.65%
Miscellaneous Revenues 201,000 43,095 0 157,905 21.44%
Other Financing Sources 0 0 0 0 NaN
Total Revenues 8,017,000 5,490,235 0 2,526,765 68.48%
Total Resources 65,983,185 67,545,112 0 1,561,927 102.37%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 1,134,000 647,833 0 486,167 57.13%
Materials and Services 3,499,000 417,359 2,172,039 909,602 74.00%
Debt Service 14,557,500 13,333,910 0 1,223,590 91.59%
Transfers to Other Funds 1,033,000 658,161 0 374,839 63.71%
Capital Outlay 40,574,000 23,181,312 10,217,709 7,174,980 82.32%
Contingency 5,185,685 0 0 5,185,685 0.00%
Total Expenditures 65,983,185 38,238,574 12,389,747 15,354,864 76.73%
Total Requirements 65,983,185 38,238,574 12,389,747 15,354,864 76.73%
Resources Over/Under Requirements 0 29,306,538 12,389,747 16,916,791
Printed- 3/25/2010 4:31 PM Page 8 of 16
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V-` -.. City of Lake Oswego Budget Report
" entnntal 1910.201.
February 28, 2010 (66.67% of Budget)
i
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
SURFACE WATER FUND
Beginning Fund Balance 1,350,328 1,350,328 0 0 100.00%
Total Beginning Fund Balance 1,350,328 1,350,328 0 0 100.00%
Sales and Services 1,758,000 1,219,075 0 538,925 69.34%
Miscellaneous Revenues 25,000 15,698 0 9,302 62.79%
Total Revenues 1,783,000 1,234,773 0 548,227 69.25%
Total Resources 3,133,328 2,585,101 0 548,227 82.50%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 255,000 184,974 0 70,026 72.54%
Materials and Services 371,000 210,906 54,506 105,588 71.54%
Debt Service 235,000 180,779 0 54,221 76.93%
Transfers to Other Funds 611,000 405,704 0 205,296 66.40%
Capital Outlay 342,000 27,044 59,347 255,609 25.26%
Contingency 1,319,328 0 0 1,319,328 0.00%
Total Expenditures 3,133,328 1,009,407 113,853 2,010,068 35.85%
Total Requirements 3,133,328 1,009,407 113,853 2,010,068 35.85%
Resources Over 1 Under Requirements 0 1,575,695 113,853 1,461,842
Printed- 3/25/2010 4:31 PM Page 9 of 16
pence�,`,9,a2 City of Lake Oswego Budget Report
, - � Ill February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
STREET FUND
Beginning Fund Balance 177,031 47,732 0 129,299 26.96%
Total Beginning Fund Balance 177,031 47,732 0 129,299 26.96%
Franchise Fees 500,000 0 0 500,000 0.00%
Intergovernmental 2,480,000 891,943 0 1,588,057 35.97%
Licenses and Fees 1,214,000 801,344 0 412,656 66.01%
Miscellaneous Revenues 15,000 9,475 0 5,525 63.17%
Other Financing Sources 0 0 0 0 NaN
Total Revenues 4,209,000 1,702,762 0 2,506,238 40.46%
Total Resources 4,386,031 1,750,494 0 2,635,537 39.91%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 457,000 329,445 0 127,555 72.09%
Materials and Services 1,203,000 522,429 10,437 670,134 44.29%
Transfers to Other Funds 689,000 442,798 0 246,203 64.27%
Capital Outlay 1,793,000 478,556 69,342 1,245,102 30.56%
Contingency 244,031 0 0 244,031 0.00%
Total Expenditures 4,386,031 1,773,227 79,779 2,533,025 42.25%
Total Requirements 4,386,031 1,773,227 79,779 2,533,025 42.25%
Resources Over/Under Requirements 0 22,733 79,779 102,512
Printed- 3/25/2010 4:31 PM Page 10 of 16
r
,..N'“, City of Lake Oswego Budget Report
m, entennlal1910-20 0
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
SYSTEMS DEV CHARGES FUND
Beginning Fund Balance 1,135,041 1,993,140 0 858,099 175.60%
Total Beginning Fund Balance 1,135,041 1,993,140 0 858,099 175.60%
Licenses and Fees 580,000 390,421 0 189,579 67.31%
Special Assessments 3,000 4,737 0 1,737 157.92%
Miscellaneous Revenues 65,000 20,785 0 44,215 31.98%
Total Revenues 648,000 415,943 0 232,057 64.19%
Total Resources 1,783,041 2,409,083 0 626,042 135.11%
Materials and Services 30,000 2,970 0 27,030 9.90%
Capital Outlay 0 0 0 0 NaN
Contingency 1,753,041 0 0 1,753,041 0.00%
Total Expenditures 1,783,041 2,970 0 1,780,071 0.17%
Total Requirements 1,783,041 2,970 0 1,780,071 0.17%
Resources Over/Under Requirements 0 2,406,113 0 2,406,113
Printed- 3/25/2010 4:31 PM Page 11 of 16
r
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` w'` re.':..C�,tennial,9,o20r ' Cit of Lake Oswego Budget Report
� February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
MAINT SVC & MOTOR POOL
Beginning Fund Balance 551,134 551,134 0 0 100.00%
Total Beginning Fund Balance 551,134 551,134 0 0 100.00%
Miscellaneous Revenues 225,000 103,113 0 121,887 45.83%
Other Financing Sources 683,000 369,583 0 313,417 54.11%
Total Revenues 908,000 472,696 0 435,304 52.06%
Total Resources 1,459,134 1,023,831 0 435,303 70.17%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 813,000 575,039 0 237,961 70.73%
Materials and Services 480,000 111,040 43,873 325,087 32.27%
Transfers to Other Funds 2,000 1,376 0 624 68.80%
Capital Outlay 155,000 93,534 86,670 (25,204) 116.26%
Contingency 9,134 0 0 9,134 0.00%
Total Expenditures 1,459,134 780,988 130,543 547,603 62.47%
Total Requirements 1,459,134 780,988 130,543 547,603 62.47%
Resources Over/Under Requirements 0 242,842 130,543 112,299
Printed- 3/25/2010 4:31 PM Page 12 of 16
. r
ante n,ai,9,0We, -a City of Lake Oswego Budget Report
i..
fir,..
�� ' February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
ENGINEERING FUND
Beginning Fund Balance 0 0 0 0 NaN
Total Beginning Fund Balance 0 0 0 0 NaN
Licenses and Fees 1,338,000 173,152 0 1,164,848 12.94%
Miscellaneous Revenues 50,000 23,647 0 26,353 47.29%
Other Financing Sources 1,824,000 1,215,996 0 608,004 66.67%
Total Revenues 3,212,000 1,412,796 0 1,799,204 43.98%
Total Resources 3,212,000 1,412,796 0 1,799,204 43.98%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Personal Services 2,401,000 1,484,358 0 916,642 61.82%
Materials and Services 355,000 93,498 18,678 242,825 31.60%
Transfers to Other Funds 226,000 152,657 0 73,344 67.55%
Capital Outlay 20,000 0 0 20,000 0.00%
Contingency 210,000 0 0 210,000 0.00%
Total Expenditures 3,212,000 1,730,512 18,678 1,462,811 54.46%
Total Requirements 3,212,000 1,730,512 18,678 1,462,811 54.46%
Resources Over/Under Requirements 0 317,716 18,678 336,394
Printed- 3/25/2010 4:31 PM Page 13 of 16
r
A 4 -0 41. it CA City of Lake Oswego Budget Report
4,,Centenniaf1910-2016
,47
( 4 February 28, 2010 (66.67% of Budget)
•
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
LO -TIGARD WTR SUPPLY
Intergovernmental 5,741,000 2,955,526 0 2,785,474 51.48%
Sales and Services 10,000 6,360 0 3,640 63.60%
Miscellaneous Revenues 86,000 1,645 0 84,355 1.91%
Other Financing Sources 0 0 0 0 NaN
Total Revenues 5,837,000 2,963,531 0 2,873,469 50.77%
Total Resources 5,837,000 2,963,531 0 2,873,469 50.77%
Personal Services 250,000 145,270 0 104,730 58.11%
Materials and Services 150,000 123,177 37,024 (10,201) 106.80%
Transfers to Other Funds 80,000 53,488 0 26,512 66.86%
Capital Outlay 5,082,000 2,360 4,419,060 660,580 87.00%
Contingency 275,000 0 0 275,000 0.00%
Total Expenditures 5,837,000 324,295 4,456,084 1,056,621 81.90%
Total Requirements 5,837,000 324,295 4,456,084 1,056,621 81.90%
Resources Over/Under Requirements 0 2,639,236 4,456,084 1,816,848
BONDED DEBT SERVICE
Beginning Fund Balance 690,810 729,780 0 38,970 105.64%
Total Beginning Fund Balance 690,810 729,780 0 38,970 105.64%
Property Taxes 3,310,000 2,957,210 0 352,790 89.34%
Miscellaneous Revenues 45,000 27,318 0 17,682 60.71%
Total Revenues 3,355,000 2,984,528 0 370,472 88.96%
Total Resources 4,045,810 3,714,308 0 331,502 91.81%
Ending Fund Balance 699,810 0 0 699,810 0.00%
Total Ending Fund Balance 699,810 0 0 699,810 0.00%
Debt Service 3,346,000 492,583 0 2,853,417 14.72%
Total Expenditures 3,346,000 492,583 0 2,853,417 14.72%
Total Requirements 4,045,810 492,583 0 3,553,227 12.18%
Resources Over/Under Requirements 0 3,221,725 0 3,221,725
Printed- 3/25/2010 4:31 PM Page 14 of 16
.
4A'11.ak
„
City of Lake Oswego Budget Report
Centennial 1910-20 0III,
February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
ASSESSMENT PROJECT
Beginning Fund Balance 82,751 101,307 0 18,556 122.42%
Total Beginning Fund Balance 82,751 101,307 0 18,556 122.42%
Licenses and Fees 0 0 0 0 NaN
Special Assessments 33,000 41,544 0 8,544 125.89%
Miscellaneous Revenues 4,000 800 0 3,200 20.00%
Total Revenues 37,000 42,344 0 5,344 114.44%
Total Resources 119,751 143,651 0 23,900 119.96%
Capital Outlay 100,000 10,596 412 88,992 11.01%
Contingency 19,751 0 0 19,751 0.00%
Total Expenditures 119,751 10,596 412 108,743 9.19%
Total Requirements 119,751 10,596 412 108,743 9.19%
Resources Over/Under Requirements 0 133,054 412 132,642
BICYCLE PATH
Beginning Fund Balance 71,867 71,776 0 91 99.87%
Total Beginning Fund Balance 71,867 71,776 0 91 99.87%
Intergovernmental 15,000 9,010 0 5,990 60.06%
Miscellaneous Revenues 1,000 728 0 272 72.80%
Total Revenues 16,000 9,738 0 6,262 60.86%
Total Resources 87,867 81,514 0 6,353 92.77%
Ending Fund Balance 0 0 0 0 NaN
Total Ending Fund Balance 0 0 0 0 NaN
Capital Outlay 87,867 0 0 87,867 0.00%
Total Expenditures 87,867 0 0 87,867 0.00%
Total Requirements 87,867 0 0 87,867 0.00%
Resources Over/Under Requirements 0 81,514 0 81,514
Printed- 3/25/2010 4:31 PM Page 15 of 16
r
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:n * City of Lake Oswego Budget Report
'Centennial 1910-20 0:
oi
.� February 28, 2010 (66.67% of Budget)
BUDGET %YTD
BUDGET ACTUALS ENCUMBERED BALANCE BUDGET
LORA BONDED DEBT SERVICE
Beginning Fund Balance 388,129 695,721 0 307,592 179.25%
Total Beginning Fund Balance 388,129 695,721 0 307,592 179.25%
Property Taxes 2,748,443 2,813,339 0 64,896 102.36%
Miscellaneous Revenues 30,000 27,160 0 2,840 90.53%
Total Revenues 2,778,443 2,840,498 0 62,055 102.23%
Total Resources 3,166,572 3,536,220 0 369,648 111.67%
Debt Service 1,748,000 225,765 0 1,522,235 12.92%
Transfers to Other Funds 1,418,572 0 0 1,418,572 0.00%
Contingency 0 0 0 0 NaN
Total Expenditures 3,166,572 225,765 0 2,940,807 7.13%
Total Requirements 3,166,572 225,765 0 2,940,807 7.13%
Resources Over/Under Requirements 0 3,310,455 0 3,310,455
LORA CAPITAL PROJECTS
Beginning Fund Balance 7,132,438 7,700,966 0 568,528 107.97%
Total Beginning Fund Balance 7,132,438 7,700,966 0 568,528 107.97%
Miscellaneous Revenues 144,000 98,820 0 45,180 68.63%
Other Financing Sources 1,418,572 0 0 1,418,572 0.00%
Total Revenues 1,562,572 98,820 0 1,463,752 6.32%
Total Resources 8,695,010 7,799,787 0 895,224 89.70%
Ending Fund Balance 7,010 0 0 7,010 0.00%
Total Ending Fund Balance 7,010 0 0 7,010 0.00%
Materials and Services 888,000 295,557 62,298 530,145 40.30%
Capital Outlay 7,800,000 1,087,801 1,459,333 5,252,866 32.66%
Total Expenditures 8,688,000 1,383,358 1,521,631 5,783,011 33.44%
Total Requirements 8,695,010 1,383,358 1,521,631 5,790,021 33.41%
Resources Over/Under Requirements 0 6,416,429 1,521,631 4,894,798
Printed- 3/25/2010 4:31 PM Page 16 of 16
. r
lAiCf. + CITY COUNCIL SPECIAL MEETING
MINUTES
April 6, 2010
Council President Kristin Johnson called the special City Council meeting to order at 5:35
p.m. on April 6, 2010, in the City Council Chambers, 380 A Avenue.
Present: Council President Johnson, Councilors Hennagin, Olson, Moncrieff, Tierney,
and Jordan. Mayor Hoffman was excused.
Staff Present: Alex McIntyre, City Manager; David Powell, City Attorney; Robyn Christie,
City Recorder; Ursula Euler, Finance Director
Budget Corn.
Present: Ron Smith, Chair; Kelly Calabria, Daniel Williams, Frank Bearden, Kent
Studebaker, Jeff Gudman.
3. STUDY SESSION
3.1 Financial Update
Ms. Euler presented the financial update for the first eight months of the year, through February
28, 2010. She discussed the City revenues in particular (p.1). She reported that the property tax
collection was on track for the year in comparison to the budget (p.2). She mentioned that she felt
comfortable using the 94% collection rate of FY2010/2011 as an assumption in the FY2011/2012
budget. She indicated that they were also on track with delinquency collections from previous
years (p.2).
She reported that the economic situation was affecting the City's franchisees, resulting in lagging
revenues (p.2) and less money paid to the City in fees. However, the overall fees were down less
than 1%, so it was a minor impact.
She discussed the intergovernmental revenue stream (p.2-3), noting that cigarette taxes were
down while liquor taxes were up. She reported that the Library District was collecting about
$80,000 more for Lake Oswego than it had expected to collect. She indicated that the other
intergovernmental revenues were on track (p.3).
She reported that a closer examination of the data found that the City's licenses and fees were
lagging (p.3), although the Building Permit Center was forecasting healthier revenues than initially
anticipated. She indicated to Councilor Olson that she could look into whether the Parks & Rec
fees seasonal pattern was different from other years.
She noted that fines and forfeitures were holding, while miscellaneous revenues were lagging a
little (p. 3). She indicated that the in direct interdepartmental charges were on track, although the
sale of the 619 Maple Street property would not go through this year.
She indicated to Councilor Olson that staff did not budget for an insurance reimbursement of this
size (p.3). She explained that it was unusual and they could not expect it in future years. She
commented that the City preferred the insurance company to charge an appropriate premium that
avoided such large reimbursements, but Pacific Source's premium calculation methodology
allowed for the possibility of large reimbursements.
Mr. McIntyre indicated to Councilor Olson that it turned out that the City did not need the sale of
the Maple Street property in order to reimburse the General Fund for the purchase of the Iron
Mountain property. Staff was waiting to sell the Maple Street property in healthier economic times.
City Council Special Meeting Minutes Page 1 of 4
April 6, 2010
Councilor Hennagin commented that Ms. Euler's suggested sale price of$360,000 might be
optimistic based on his personal assessment of the house. Councilor Jordan mentioned that the
City used the Metro Park bond funds to purchase the Iron Mountain property instead of the
property that it originally intended to purchase with those funds.
Ms. Euler indicated to Mr. Gudman that she could not confirm his estimate that General Fund
revenues might come in only $200,000 less than budgeted because it could still change. She
commented that if it did come in at that amount, it spoke well for the work done by those before her
in forging these plans.
Ms. Euler indicated to Chair Smith that she had only general knowledge regarding why Quest
was lagging so far behind the other franchises. She mentioned hearing that Quest was losing
market share while Verizon was gaining it.
Mr. Powell confirmed to Councilor Tierney that the City charged a fee on the basic phone service
only, and not the add-ons, such as Internet service. Councilor Tierney noted that Comcast paid
franchise fees only on the video portion, and nothing on voice or Internet. He commented that one
could argue that those services used the same right-of-way as the video, which was a discussion
for another time.
Ms. Euler discussed expenditures in the General Fund (pp.3-4). She mentioned the possibility of
savings in personal services by the end of the year (p.4). She said that she renewed the City's line
of credit for another three months today in the 1.6% realm (prime rate was 3.25%) using the LIBOR
rate.
Mr. Gudman pointed out that extrapolating the figures in personal services yielded a possible $1.3
million savings, instead of the $300,000 Ms. Euler mentioned in her memo (p.4). Ms. Euler
indicated that she anticipated a possible 3% savings towards the end of the year due to seasonal
labor and benefits. She explained that large vacation payouts before July 1 were a factor. They
would know more as they got closer to the end of the fiscal year.
Ms. Euler pointed out that the Tourism Fund was a young fund with the main purpose for the next
three years of reimbursing the General Fund for the iron furnace restoration (p.4). She indicated to
Mr. Bearden that the Tourism Fund would pay for smaller projects in addition to the iron furnace.
She clarified that, prior to increasing the 4% hotel/motel tax to 6%, and allocating the additional 2%
to the Tourism Fund, there was no separate Tourism Fund. Councilor Jordan recalled that a
State law required cities to allocate any increase to the hotel/motel tax to tourism; the original 4%
still went to the General Fund.
Ms. Euler explained that staff wanted to split out the streetcar from the Trolley Fund and put it
under Economic Development because its pace was speeding up (p.4). She expressed staffs
hope that increased marketing would help the Golf Course Fund, which was a continuing concern.
She indicated to Councilor Tierney that she could do a month-to-month comparison from this year
to last year for the Golf Course Fund.
Ms. Euler indicated that they were keeping a close eye on the Tennis Fund, which was doing very
well (p.4). However, with increased usage came increased expenditures. She reported that she
has put staff on notice that the Percent for Art fund might go over budget in expenditures in
materials and services, based on the amount encumbered on a purchase order (p.5). She
indicated to Councilor Olson that Ms. Gilmer was getting her information on the specifics of the
encumbrance.
Ms. Euler noted that the Water Fund customer revenues were still ahead of schedule (p.5), but the
anticipated additional revenues have shrunk from $600,000 estimated at the last quarterly report to
$450,000. She mentioned that capital outlay was lagging, due to projects coming in under budget.
She indicated that Mr. McIntyre was working closely with Public Works and Engineering to get
capital outlay spending back up to the planned levels.
City Council Special Meeting Minutes Page 2 of 4
April 6, 2010
She discussed the Wastewater Fund and the Surface Water Fund (p.5). She mentioned that she
has put staff on notice that personal services in the Surface Water Fund were tracking high. She
said that they would watch it closely and make adjustments as needed towards the end of the
fiscal year. Mr. McIntyre indicated to Councilor Olson that they would find out if they could slow
down the expenditures, as opposed to waiting until the end of the year to fix it. He noted that they
have hired an intern to help staff on water, which was a slight increase.
Ms. Euler clarified to Councilor Hennagin that customer payments of the utility bill went into sales
and services. She indicated to Councilor Jordan that she assumed that the volume rate was a
little under plan, as could happen very easily. She commented that it was not enough to check
into, unless the Council so directed. Mr. McIntyre reminded the Council that the City calculated
wastewater rates based on the average winter water usage; staff would recalculate the rates for
next year based on last winter's usage. Ms. Euler indicated to Mr. Gudman that the budget would
reflect those recalculated rates.
Ms. Euler discussed the Street Fund (pp.5-6). She noted the three revenue streams: $500,000
from PGE, the Department of Motor Vehicle shared revenues, and the street maintenance fee.
She commented that they might not see as much revenue from the motor vehicle fees as they had
hoped, so they would have to wait and see what happened.
She discussed the Maintenance Services and Motor Pool Fund (p.6). She mentioned staffs
intense scrutiny of this fund because it was not recuperating the costs that it should be
recuperating, especially for direct labor. She explained that the going rate for labor was $80 an
hour, but the fund only charged $55 per hour to the other funds that used this service. She noted
that the cost allocation study on the administration costs had nothing to do with the labor rate
computation. She commented that it would take a while to sort it all out but they hoped to make
progress in the next few months.
She indicated to Mr. Gudman that she did not know whether the FY2010/2011 budget would
reflect the staff work. She clarified that the 'hard costs' referred to direct costs, such as labor,
repair parts, and fuel. 'Soft costs' referred to administrative oversight and supervision. She
confirmed to Mr. Gudman that the cost allocation study straightened out the 'soft costs,' and now
staff was following through on the 'hard costs.' She said that they would still reflect the right
budget numbers in total.
Ms. Euler discussed the Engineering Fund (p.6). She commented that transferring two engineers
100% to the LOIS capital project fund was a good deal for that fund because they could spend all
their time on that project. Staff was reviewing what the resource allocation should be for the
workload within the Engineering Fund in order to put the right tasks on the right desks and the right
costs in the right buckets, but it was a work in progress. She indicated to Mr. Gudman that the
answers to his questions were the same as for the Maintenance Fund.
Ms. Euler reviewed the notable items in all other funds (p.6). She mentioned that Mr. Galante told
her that the lag in LORA capital projects was by design; the Board delayed some projects past July
1 in order to take advantage of some cost reduction benefits. Council President Johnson
explained to Mr. Gudman that the Board decided to delay Lakefront Park because of the cost
savings of doing the work in conjunction with the lake down phase of the LOIS project.
Ms. Euler commented that the higher than expected assessed values in the LORA District
demonstrated the benefit of investment in economic development, which has resulted in economic
growth in the District. She anticipated receiving higher than budgeted property taxes as a result.
She confirmed to Mr. Gudman that the increased property taxes were due entirely to the higher
assessed values. She confirmed that the delinquency for the current year came in at around 6%.
City Council Special Meeting Minutes Page 3 of 4
April 6, 2010
COUNCIL QUESTIONS
Councilor Tierney referenced p.7, with respect to the budget adjustments from contingency into
expenditure accounts. Ms. Euler indicated that both adjustments totaled around $1.4 million, but
she would have to check on the exact figure.
Mr. Gudman complimented Ms. Euler on her excellent cover letter. He indicated that it would be
helpful if staff began a capital budget by project summary, as opposed to only a grand total, for the
capital budget areas in which the City was running behind. He mentioned that consolidated
financials citywide would also be helpful.
Councilor Jordan asked if the increased projections for the Building Permit Center, in light of the
City decreasing staff in the Building Department, meant that the City would see more inspections
that the current staff could handle. Mr. McIntyre stated that staff would closely monitor that, and
make sure that no one was overworked. He commented that they wanted to establish whether this
was a trend or a one-time bump in order to avoid responding prematurely.
Councilor Jordan asked whether increased labor costs in Maintenance Services and Motor Pool
would affect the replacement schedule for equipment. She mentioned increased costs possibly
leading to an earlier break-even point. Ms. Euler explained that that was very difficult to assess,
although people have been trying to do the computations. She indicated that right now they based
the replacement schedule on the average estimated life span, assuming reasonable maintenance.
Mr. McIntyre stated that staff was working valiantly on the numbers. He reported that they felt
much better about where they were now than they did at this same point last year. He commented
that staff was struggling with the question of adjusting the Maintenance and Motor Pool numbers
because doing so impacted the entire budget document. He explained that the decision they were
trying to make was whether to freeze the numbers where they were and deal with the increase
through a budget supplement or another process. He indicated that staff would deliver the budget
document on Monday.
4. ADJOURNMENT
Council President Johnson adjourned the meeting at 6:20 p.m.
Respectfully submitted,
Robyn Christie
City Recorder
APPROVED BY THE CITY COUNCIL:
O?l„luly 6, 2010PP Via
Ja 'b.)Hoffman, o
City Council Special Meeting Minutes Page 4 of 4
April 6, 2010