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HomeMy WebLinkAboutApproved Minutes - 1982-04-29 April 29, 1982 A regular meeting of the Lake Oswego Budget Committee for fiscal year 1982-83 was convened at the Adult Community Center, Fir-Cedar Room, at 7:30 p.m. Present were Chairman Fahrendorf; Mayor Campbell and Councilors Taylor, Marquis and Avery; citizen members McAllister, Tipton, Rivenburgh, Jones and Blackmore; Peter Harvey, City Manager; Fred Matthias, Finance Director; staff members; and interested citizens. Citizen member Cornwall arrived at 7:45 p.m. Councilors Woller, Henderson and Young were excused. I. Chairman Fahrendorf called the meeting to order. II. Roll call. III. Minutes. The minutes of the April 21, 1982 meeting were distributed. Chairman Fahrendorf suggested that the Committee review the minutes and act on them at the next meeting. IV. Report on Unemployment Insurance Reserve. Mr. Harvey noted that the budget for unemployment insurance reserves had been questioned at the last budget meeting. He presented the Committee with a staff report on unemployment insurance reserves, prepared by Robert Kincaid, Assistant to the City Manager. He noted that Mr. Kincaid had made a complete analysis of the unemployment insurance situation. In response to an inquiry from Mr. Blackmore, Mr. Kincaid noted that the maximum potential accumulative liability figure of $340,567 did not include extended benefits for 13 weeks (i.e. , $340,567 is the maximum figure for the base period of 26 weeks) . In response to an inquiry from Mr. Jones, Mr. Kincaid indicated that during the past two-year period, the City had paid out approximately $47,000 in total benefits. In response to an inquiry from Councilor Avery, Mr. Harvey stated that if, for some reason, the City did not have sufficient funds in in the unemployment insurance reserve, funds would need to be transferred from other budget areas --Personal Services, Materials & Services or Contingency. Mr. Kincaid stated that the other alternative would be to secure insurance through the State agency. Mr. Harvey noted that the advantages of "self-insurance" are that the City can invest the funds, and benefit from cash flows as well. He stated that staff analyzes the situation each January, and so far, self-insurance has proved to be beneficial. (Mr. Cornwall arrived at this time. ) V. Report on FICA Computations. In response to a inquiry made at the last meeting by Mr. Cornwall, Mr. Harvey presented a staff report, prepared by Robert Kincaid, regarding FICA calculations. He stated that some of the budgeted figures for FICA had been overstated, and that the appropriate reductions would be made throughout the budget. Budget Committee Page 2 April 29, 1982 Moved by Councilor Marquis, seconded by Councilor Taylor that the Committee adopt the changes in FICA computations throughout the budget as outlined in the staff report. The motion passed, with Mayor Campbell, Councilors Avery, Marquis and Taylor, Chairman Fahrendorf and citizen members McAllister, Rivenburgh, Jones, Blackmore and Cornwall voting "yes"; and citizen member Tipton voting "no". VI. Report on Insurance Deductibles. Mr. Harvey presented a staff report, prepared by Fred Matthias, in response to an inquiry made by Mr. Cornwall at the last meeting. He noted that the liability insurance reserves were not so much for the purpose of "self- insurance", as the establishment of effective reserve levels to cover potential deductible costs, enabling the City to control its insurance costs in the future with larger deductibles. In response to an inquiry from Mr. Blackmore, Mr. Harvey noted that the City has made good risk analyses on all liability insurance areas except the civil rights area. He stated that since this type of liability insurance was added only one year ago, therefore, a sufficient deductible is still an unknown. The Committee discussed the City's umbrella liability policy. VII. Review of Library Services Budget (Pages 27-29) . Bill Willingham, Chairman of the Library Board of Trustees, presented a report on behalf of the Library Board. He noted that the Lake Oswego Library has one of the highest per capita circulations in the State and is also one of the most cost effective. He stated that the proposed "hold-the-line" budget will continue to provide the level of services the citizens expect; however, the Board recommends restoring the Monday morning service which had been cut from the budget last year. He explained that the number of patrons utilizing the Library on Mondays over the past year was reduced by 12% (or, about 60 people) . Overall, the number of patrons utilizing the Library over the past year increased by 2.2%. Mr. Willingham requested that the proposed Library Services budget be increased by $5,080 (the amount necessary to restore Monday morning hours). The Committee discussed, in detail, the issue of restoring Monday morning hours, particularly in light of the construction of the new Library structure. Mr. Willingham stated that because of the method of construction, he did not believe service levels would be disrupted by the construction. Mr. Willingham distributed a staff report, prepared by Steve Turner, Acting Library Director, entitled, "Background and cost analysis for reopening Monday mornings". In response to an inquiry from Mr. Cornwall, Mr. Turner stated that proposed budget is basically the same as the budget adopted for 1981-82, with increases for salaries and inflation (i.e. , the total is somewhere between last year's budget and the budget for fiscal year 1980-81) . Mr. Harvey stated that although it had not been formally announced, Steve Turner has been appointed as the City's new Library Director. Budget Committee Page 3 April 29, 1982 Mr. Harvey stated that the Library budget recommends the same number of full-time employees (i.e. , 11) ; however, based on an analysis of duties, the position of Administrative Aide will be replaced by the position of Secretary, and the position of Clerk-Typist will be replaced by the position of Library Clerk. Mr. Turner explained the part-time salaries in detail. Mr. Harvey addressed the proposed budget for purchase of new books (line item 411 and 411, pages 28 and 29) . He noted that often, when a new book is pub- lished, it must be purchased within a year's time, or the opportunity to purchase it may be lost. Mr. Turner noted that the Library intends to make a concerted effort to spend funds for books on new editions in an attempt to replace outdated books (particularly, nonfiction) . In response to an inquiry from Mr. Jones, Mr. Harvey discussed the issue of duplication in books between Lake Oswego and other community libraries. He noted that with the installation of the new computer system, the City Library will be able to determine which books are in demand, and which are not; therefore, avoiding some duplication. He noted that with the new computer system, the Library will be able to determine whether the purchase of a book is necessary if the possibility exists that it could be borrowed from another community library. Doug Moy, a member of the Library Board of Trustees, noted that some duplication is necessary in order to serve Lake Oswego patrons. He explained that even though another library may have a particular book, they may not wish to lend it to Lake Oswego. Mr. Harvey noted that line items, 416, "Reimbursed Replacements", and 417, "Special Programs", appear as new items. Mr. Harvey noted that the funds expended in these accounts are offset by donations. Mr. Harvey reviewed the Library budget in general. Moved by Councilor Marquis, seconded by Councilor Avery, that the Committee accept the proposed 1982-82 Library Services budget as presented (total: $381,140) , without accepting the requested addition of $5,080. Following discussion, the motion passed, with Mayor Campbell, Councilors Avery, Marquis and Taylor, Chairman Fahrendorf and citizen members McAllister, Rivenburgh, Jones, Blackmore and Tipton voting "yes"; and citizen member Cornwall voting "no". The Committee discussed the viability of the "budget tours" presently being held on Wednesday afternoons. Mrs. Tipton stated that valuable information was obtained by those attending the tours; that those who were not in attend- ance would be unaware of the issues raised; and therefore, some Committee members would miss some of the issues presented during the tours. Budget Committee Page 4 April 29, 1982 It was the consensus of the Committee to continue the tours. VIII. Review of Public Works Fund (Pages 33-45) . Mr. Harvey reviewed the Public Works Fund Summary (Page 33) and the Public Works Comparison of Revenue by Source (Page 34) . In response to an inquiry from Councilor Marquis, Mr. Harvey explained that revenues from building permits and fees are now budgeted in the Police-Fire Fund, Inspection Services Division. Mr. Harvey noted that recently the City has seen a slight increase in the processing of Development Reveiw applications; however, he could not predict what the overall impact would be on the future issuance of building permits. Mr. Harvey noted that most of the fund transfers to Public Works are used for financing the Planning operation. Mr. Harvey reviewed the Public Works Personal Services budget (Page 35) . He noted that except for the reorganization of the Department and the elimina- tion of the City Engineer position, the number of personnel were the same as fiscal year 1981-82. In response to an inquiry from Chairman Fahrendorf, John Godsey, Director of Public Works, stated that AWWA dues have increased due to reapportionment (Administration, Pages 36 and 37, line item 458) . He noted that the dues were for a City membership--budgeted in the Public Works Department. In regard to line item 435, Service Agreements, Councilor Taylor suggested, as an alternative to a service agreement, that the City pay time and charges for maintenance service on the word processing equipment. Mr. Harvey stated that this would be analyzed by staff. Mr. Harvey reviewed the Engineering Division budget (Pages 40 and 41) . Mr. Harvey noted that expenses for office supplies have increased. Mr. Godsey noted that the increase represents an upgrading in drafting services, which includes the function of upgrading "as-builts" and maps for construc- tion projects. Mr. Harvey noted that the Engineering Division has proposed funds for microfilming as-builts and plats; and the purchase of a new file cabinet (Capital Outlay, Page 40-41) . He stated that the microfilming would be per- formed by an agency outside the City service. Patrick Barnum, Planning Director, reviewed the Planning Department budget (Pages 42-43) . He noted that the department had eight planners at the peak of the Comprehensive Plan process, and the City is budgeting for only five in the proposed budget. Mr. Harvey noted that the Senior Planner spends her time on the preparation of the Development Ordinance, coordinating the standards, developing the Budget Committee Page 5 April 29, 1982 Zoning Ordinance and Comprehensive Plan amendments. Following this process, the City should be ready to submit the Comprehensive Plan to LCDC for acknowledgement. This may, in turn, result in making some revisions; and by then, it will be time to begin the five-year review of the Comprehensive Plan. Thus, the function of the Senior Planner continues on a cyclical basis. Mr. Harvey noted that the Materials & Services budget is down from last year. He stated that this is due to the fact that the City retains a secre- tarial service to cover the Planning Commission and Design Review Board meetings, and the City has been able to obtain those services at a lower rate than last year. Mr. Harvey commented on the Public Works, Nondepartmental budget (Pages 44-45) . He noted that reductions were due primarily to the transference of the Inspection Services Division to the Police-Fire Fund. IX. Review of Special Funds (Pages 143-158) . Mr. Harvey noted that Federal Revenue Sharing funds (Page 143) are proposed for capital improvement projects, the details of which are outlined in the Capital Outlay Exhibits (Pages 159-169) . Mr. Harvey explained that the proposed requirements for the Traffic Safety Fund (Page 145) represented the reappropriation of funds for the Boones Ferry/Reese/Oakridge traffic signalization project, previously scheduled for completion in fiscal year 1981-82. Mr. Godsey stated that the City is pres- ently in the process of purchasing the rights-of way for the road widening. Mr. Harvey noted that the Bancroft Bonding and Redemption Fund (Page 148) shows an increase for 1982-83, because there are a number of LID's being assessed, and more bonds will be sold. Mr. Harvey noted that in 1981-82, the City purchased one of the library terminals with funds from the Library Gift Fund (Page 149) . He noted that the charge for using the County's Central Processing Center is a one-time only charge, unless the City determines, in the future, that the City needs another terminal. Mr. Harvey noted that the Water Bond Fund (Page 151) represents funds remaining from the sale of the bonds that have not been spent. He noted that this week, the City awarded the bid on the last reservoir project, and bids came in less than anticipated; therefore, the City may have more funds than projected. Mr. Harvey noted that the City receives about $3,000 from the State, annually, for bicycle path construction. Mr. Harvey explained that the capi- tal outlay budgeted in 1981-82 for the Iron Mountain Bike Path (Bicycle Path Fund, Page 152), was not expended, and has been reappropriated in 1982-83 under "Bicycle Path Construction". Mr. Godsey noted that a one-way bike path on Iron Mountain Boulevard has been recommended by the Parks & Recreation Commission, and the City is proceeding with the design of the path at this time. Budget Committee Page 6 April 29, 1982 Mr. Harvey noted that the Library Bond Fund (Page 154) is similar to the Water Bond Fund, in that it represents the proceeds of the sale of library bonds and accrued interest. Mr. Harvey explained that very shortly, the Parks and Recreation Commission will recommend to the Council that the City proceed with the driving range project (Page 157, Driving Range LID) . In response to an inquiry from Mr. Blackmore, Mr. Harvey noted that the project could be incumbered during fis- cal year 1981-82. In response to an inquiry from Mr. Jones, Mr. Harvey noted that the difference in the 1981-82 Budgeted and Estimated totals for the Engineering Division (Page 41), was a result of careful management and the fact that the City Engineer left in January, leaving that position vacant. X. Adjournment. The meeting was adjourned at 9:57 p.m. Respectfully submitted, Shirley M. Siul Recording fretary __- O4lOA