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HomeMy WebLinkAboutApproved Minutes - 1982-05-27 May 27, 1982 11 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 Avery, Young, and Marquis; citizen members Blackmore, Jones, Tipton, Cornwall and McAllister; Peter Harvey, City Manager; Fred Matthias, Finance Director; staff members; and interested citizens. Councilors Henderson and Taylor, and citizen member Rivenburgh arrived later in the meeting. Councilor Woller was excused. I. Chairman Fahrendorf called the meeting to order. II. Roll call. III. Minutes. Moved by Councilor Avery, seconded by Mr. McAllister, that the minutes of the May 13, 1982 meeting be approved as submitted. The motion passed unanimously, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, and Marquis; citizen members Blackmore, Jones, Tipton, Cornwall and McAllister voting "yes." It was the consensus of the committee that the minutes of the May 20, 1982 meeting be admitted as presented. IV. Communications A. Letter from Russell S. Jones. A letter from Mr. Jones, Budget Committee member, was distributed to the committee. The letter expressed Mr. Jones' opinion that the $20,000 recommended by the committee for outdoor tennis court lighting at last week's meeting was not cost effective (Park Projects, page 169) . Discussion followed. B. Outdoor Tennis Facility Lighting - A Proposal Submitted by the Recreation Department. Mr. Harvey noted that this report had been mailed to committee members prior to tonight's meeting. He noted that this report had been previously presented to staff by the Tennis Advisory Board as background material for the tennis court lighting proposal. (Councilor Taylor arrived at this time. ) Councilor Marquis noted that there is a distinction between essential and nonessential City services--essential services usually indicate those connected with health and safety. He stated, however, that there is a broader issue--the quality of life for the citizens of a community. He stated that he felt comfortable with the concept that not all recreation activities can be expected to be self-sustaining. (Citizen member Rivenburgh arrived at this time. ) Mr. Harvey noted that the monies proposed for the installation of outdoor tennis court lighting would be funded from Systems Development Charges, not taxes. Discussion followed concerning the issue of self-sustaining recreation activities, and to what degree this concept should be supported. Lake Oswego Budget Committee Page 2 May 27, 1982 11 V. Report on Golf Course. Mr. Harvey reviewed the staff report, requested by the committee, concerning options which would reduce the Parks & Recreation subsidy for the golf course by $15,000, as well as the development of a fee structure which would make the driving range self-sustaining. In conclusion, the report "addresses the means by which the deficit could be reduced with the driving range being closed; reduction of the deficit with the driving range remaining open, and the self-sufficiency of the driving range." (Councilor Henderson arrived at this time. ) In reply to an inquiry from Councilor Marquis, Mr. Harvey stated that staff did make any recommendations. Following discussion, Councilor Avery moved, and Mayor Campbell seconded, that the committee recommend the restoration of the driving range and achieve a $15,000 reduction in subsidies, by implementing the plan outlined on page 4 of the Golf Course staff report; and further, recommend the fee structure as outlined on pages 2 and 3 of the Golf Course staff report. Dave Powers, architect (1981 Mapleleaf Road) , submitted a personal report concerning the pros and cons of future development of the Golf Course and associated costs. Chairman Fahrendorf suggested that the report be submitted to the Parks & Recreation Commission. In reply to an inquiry from Councilor Marquis, Mr. Harvey stated that if the driving range were closed, the City would probably eliminate the range and leave it as rough. Following a lengthy discussion, the motion passed unanimously, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Jones, Tipton, Cornwall, Rivenburgh and McAllister voting "yes." Bruce Whitner, Chairman of the Tennis Advisory Board, stated that the minority report presented at the last Budget Committee meeting did not do justice to the board's strong feeling of support for outdoor tennis lighting. Mr. Whitner outlined the necessity for lighted tennis facilities, as presented in the board's "Tennis Court Lighting Proposal, " dated May 24, 1982. In response to an inquiry, Mr. Whitner stated that the majority of the Tennis Advisory Board would favor the installation of outdoor tennis lights over the installation of backboards for tennis, raquetball and basketball. Moved by Mrs. Tipton, seconded by Councilor Avery, that the funds budgeted for backboards be eliminated ($18,585); and that the funds for outdoor tennis court lighting be increased by $18,585, for a total of $38,585 (Park Projects, page 169) . Lake Oswego Budget Committee Page 3 May 27, 1982 11 David Schmahl, member, Tennis Advisory Committee, stated that although he would like to see four to six lighted tennis courts, considering the present economy, he felt that it would be more reasonable to support the installation of backboards and, at this time, two lighted tennis courts on a trial basis. The motion failed, with Mayor Campbell and Councilor Avery, and citizen members Blackmore, Tipton and McAllister voting "yes"; and Chairman Fahrendorf, Councilors Young, Marquis and Taylor, and citizen members Rivenburgh, Jones and Cornwall voting "no." Councilor Henderson abstained. Moved by Councilor Taylor, seconded by Councilor Marquis, that the committee approve the addition of $5,000 to the proposed $20,000 already budgeted for the outdoor tennis lighting project (Park Projects, page 169) , and that they would be placed at Lake Oswego High School. In response to an inquiry from Councilor Avery, Myron Johnson, Recreation Director, noted that if $25,000 were insufficient to cover the total installation costs for the lighting project, that the school district or the electric company be contacted to provide the necessary additional funds. Mr. Blackmore moved, and Mrs. Tipton seconded, that the motion be amended to reduce the backboard project by $5,000 (i.e. , a new total budget of $13,585) . Mr. Johnson noted that the reduced budget for backboards would probably result in the elimination of about two backboards; or, be sufficient for funding the installation of approximately two backboards. Mr. Harvey noted that the source of the funding for both the lighting and the backboards is from Systems Development Charges. He noted that because of the current slowdown in the building industry, the revenue source is rather dubious. The motion to amend passed, with Coucilors Marquis, Young and Avery, and citizen members McAllister, Tipton, Rivenburgh and Blackmore voting "yes"; and Chairman Fahrendorf, Mayor Campbell, Councilor Taylor, and citizen members Cornwall and Rivenburgh voting "no." Councilor Henderson abstained. The motion, as amended, passed, with Mayor Campbell and Councilors Avery, Young, and Marquis, and citizen members Blackmore, Jones, Tipton, Rivenburgh and McAllister voting "yes"; and Chairman Fahrendorf, Councilor Taylor and citizen member Cornwall voting "no." Councilor Henderson abstained. VI. Finalization of 1982-83 Fiscal Year Budget. It was the consensus of the committee that they would pass a motion to approve each budget, fund by fund, as proposed, itemizing recommended modifications to the proposed budget as they appear. Mr. Harvey reviewed each budget fund. Mr. Harvey stated that due to the previously noted error in computing some of the costs for FICA (Social Security) , the proposed General Fund budget has been Lake Oswego Budget Committee Page 4 May 27, 1982 r reduced in the amount of $1,032 (line item 405, Employee Benefits) . He suggested that the these additional funds be placed in General Fund Contingency or in the Unappropriated Ending Balance; however, he stated that he would prefer that they be placed in Contingency. Moved by Councilor Avery, seconded by Councilor Taylor, that the $1,032 previously budgeted in General Fund, Social Security, line item 405, be placed in the General Fund, Nondepartmental, Contingency account. The motion passed, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Taylor, and Henderson; citizen members Blackmore, Tipton, Rivenburgh and McAllister voting "yes"; and Councilors Marquis and Young, and citizen members Cornwall and Jones voting "no." Mr. Cornwall expressed his belief that the amount budgeted for the annual audit was excessive--$18,500 (line item 501, City Council, pages 4 and 5) . Following discussion, Mr. Cornwall moved, and Mayor Campbell seconded, that the amount budgeted for the annual audit be reduced by $3,000 (line item 501, City Council, pages 4 and 5) . The motion passed unanimously, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Jones, Tipton, Cornwall, Rivenburgh and McAllister voting "yes." Mr. Harvey noted that the Public Works Fund budget had been reduced by $174 due to the previously adjusted Social Security calculations. In response to an inquiry from Councilor Marquis, he noted that the other reductions in Social Security (line item 405, Employee Benefits) were made in the Police-Fire Fund, $212; and in the Maintenance Services Fund, $32. Moved by Councilor Marquis, seconded by Councilor Taylor, that all of the reductions in Employee Benefits, due to adjustments in Social Security calculations (i.e. , Public Works, $174; Police-Fire, $212; and Maintenance Services, $32) , be transferred to each affected fund's contingency account. The motion passed, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Taylor, Henderson and Marquis; citizen members Blackmore, Jones, Tipton, Cornwall, Rivenburgh and McAllister voting "yes"; and Councilor Young voting "no. " Mr. Harvey continued the review of the proposed budget. He noted that the Parks & Recreation Fund, Systems Development Projects, page 115, could be reduced by $20,000 due to earlier action taken by the committee (i.e. , action on proposed Park Projects, page 169) Councilor Marquis stated that he would prefer to use the $20,000 budgeted in Systems Development Projects for use in continuing the Iron Mountain Bike Path program. Lake Oswego Budget Committee Page 5 May 27, 1982 10 Following discussion, Councilor Young moved, and Councilor Marquis seconded, that $20,000 be added to the Bike Path project, under Systems Development Charges (Park Projects, page 169) , to continue work on the Iron Mountain Bike Path. Following a lengthy discussion concerning various options for the use of Systems Development Charges for park projects, Mr. Harvey reminded the committee that the Capital Improvement Exhibits (pages 161-169) are merely an explanation of how funds may be used; and that the committee is merely providing a guideline of how the funds should be appropriated. He noted that legally, the Council could reappropriate the funds for other uses during the year if it so desired. Following discussion, the motion passed, with Mayor Campbell, Chairman Fahrendorf, Councilors Young and Marquis, and citizen members Blackmore, Rivenburgh and Cornwall voting "yes"; and Councilors Avery, Henderson and Taylor, and citizen members Jones, Tipton and McAllister voting "no." Moved by Councilor Avery, seconded by Councilor Henderson, that the committee recommend that the $17,026 in funds available in the Parks & Recreation Fund, Golf Course (i.e. , a combination of increased revenues and decreased expenditures from previous action taken 'by the committee--see page 4 of the Golf Course staff report) , be used to reduce revenues and reduce the Parks & Recreation property tax levy in the same amount. The motion passed, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Jones, Cornwall, Rivenburgh and McAllister voting "yes." Mrs. Tipton abstained. Moved by Councilor Avery, seconded by Councilor Henderson, that the Water Bond Fund (pages 151 and 166) be approved, as amended, per staff report dated May 11, 1982 (i.e. , adjustments to proposed expenditures - City View Reservoir - Water Bond Fund) . The motion passed unanimously, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Tipton, Jones, Cornwall, Rivenburgh and McAllister voting "yes." Moved by Councilor Young, seconded by Councilor Avery, that the $3,000 in reductions to the annual audit (line item 501, pages 4 and 5, City Council) be used to increase the General Fund by $3,000 in the Transfer to Other Funds category; that the funds be specifically transferred to the Police-Fire Fund; that the revenue be reflected in the Police-Fire Fund; and that the Police-Fire Fund Levy be reduced by $3,000. The motion passed unanimously, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Tipton, Jones, Cornwall, Rivenburgh and McAllister voting "yes." Moved by Councilor Marquis, and seconded by Mayor Campbell, that the budget, as proposed, be approved, with: (1) the modifications per the memorandum of April 27, 1982, reflecting decreases in Social Security computations, that those decreases be reflected as increases in the appropriate contingency accounts of Lake Oswego Budget Committee Page 6 May 27, 1982 the affected funds; (2) that the Water Bond Fund by modified per the memorandum of May 11, 1982; (3) the expenditure in the City Council budget for the annual audit be reduced by $3,000, that the $3,000 be placed in the General Fund, Transfer to Other Funds, specifically the Police-Fire Fund, and that the $3,000 be reflected in the Police-Fire Fund with a corresponding reduction in the Police-Fire Levy; (4) that the Parks & Recreation Fund be modified in accordance with page 5 of the memorandum of May 24, 1982 (Golf Course) , whereby revenues for green fees and club rentals are increased by $5,250, and expenditures for staff changes, carpeting, golf balls and electricity be reduced by $11,776, and that the Parks & Recreation tax levy be reduced by $17,026; and (5) that the adjustments to the exhibit for Park Projects (page 169) be modified so that funds for the Backboards and Equipment project reflect $13,585 (under Systems Development Charges) , that funds for the Outdoor Tennis Court Lighting project reflect $25,000 (under Systems Development Charges) , that funds for the Atheletic Field Improvements project reflect $20,000 (under Systems Development Charges), and that the Bike Path project reflect $20,000 of the redistribution of the Systems Development Charges revenue. The motion passed, with Chairman Fahrendorf, Mayor Campbell and Councilors Avery, Young, Taylor, Henderson and Marquis; citizen members Blackmore, Tipton, Jones, Rivenburgh and McAllister voting "yes"; and citizen member Cornwall voting "no." VII. Adjournment. The meeting was adjourned at 10:00 p.m. Respec ully submitted, Shirley M. S Recording S re ary