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Home My WebLink About11/02/1999 Business Meeting 127 CITY OF YAKIMA, WASHINGTON NOVEMBER 2, 1999 BUSINESS MEETING 1. ROLL CALL The City Council met in session on this date at 2:00 p.m., in the Council Chambers of City Hall, Yakima, Washington, Mayor John Puccinelli, presiding. Council Members Clarence Barnett, Henry Beauchamp, Lynn Buchanan, John Klingele, Mary Place, and Bernard Sims present on roll call. City Manager Zais, City Attorney Paolella, and City Clerk Roberts were also present. 2. INVOCATION /PLEDGE OF ALLEGIANCE An Invocation was given by Mayor Puccinelli, followed by the Pledge of Allegiance. 3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER A. PROCLAMATIONS (IF APPLICABLE) There were no issues presented or discussed. 4. CONSENT AGENDA Mayor Puccinelli directed Council's attention to Item No. 6 on the agenda and reported that the parties to the appeal have jointly requested that the public meeting be continued to May 2, 2000. Mayor Puccinelli then referred to the items placed on the Consent Agenda, questioning whether there were any additions or deletions from either Council members or citizens present. It was the general consensus of the Council to add Item No. 7 to the Consent Agenda. The City Clerk then read the Consent Agenda items, including resolutions and ordinances by title. It was MOVED BY SIMS, SECONDED BY BUCHANAN, THAT THE CONSENT AGENDA, AS AMENDED, BE ADOPTED. The motion carried by unanimous roll call vote. (Subsequent paragraphs preceded by an asterisk ( *) indicate items on the Consent Agenda handled under one motion without further discussion.) *5. APPROVAL OF THE MINUTES OF THE OCTOBER 19, 1999 BUSINESS MEETING The minutes of the October 19, 1999 Business meeting were approved, having been duly certified accurate by two Council members and no one present wishing to have said minutes read publicly. 6. PUBLIC HEARING FOR AD VALOREM PROPERTY TAX LEVY FOR COLLECTION IN 2000 (NO ACTION REQUESTED UNTIL NOVEMBER 9, 1999): A. AN ORDINANCE AUTHORIZING AN INCREASE IN THE CITY'S REGULAR LEVY FROM THE AMOUNT LEVIED THE PREVIOUS YEAR B. AN ORDINANCE AUTHORIZING A LIMIT FACTOR OF 106 PERCENT FOR THE REGULAR LEVY FOR THE 2000 CALENDAR YEAR 128 NOVEMBER 2, 1999 C. AN ORDINANCE FIXING AND LEVYING THE AMOUNT OF AD VALOREM TAXES FOR THE 2000 BUDGET Mayor Puccinelli noted that this hearing is to provide an opportunity for the public to comment about the Ad Valorem Taxes to be collected for the Fiscal 2000 year. Action on the proposed legislation will take, place after the results of the General Election are known. That will be Tuesday, November 9, 1999 at 8:30 a.m. in the Council Chambers prior to Budget Review at 9:0'0 a.m. This being the time set for the public hearing, City Manager Zais briefly outlined the process required by statute that the City must follow to enact the property tax levy. Although it is a standard process, the basis and some of the procedures were changed by Referendum 47, passed a few years ago. Mr. Zais urged the Council to authorize a six - percent increase in the property tax levy for 2000, instead of using the Implicit Price Deflator rate of 1.4%. He summarized 12 conditions impacting next year's budget and explained why there is " substantial need" to establish the property tax levy at 6% above 1999 levels. He reported that a serious decline in City revenues is expected as a result of the distressed local economy with 1999 sales tax revenue estimated to be less than 1997 levels. The declining revenue sources include sales tax, utility taxes, fines and forfeitures, and state shared revenue. Mr. Zais explained that other conditions also exist that justify increasing the property tax levy above the Implicit Price Deflator limit. Those include the budgetary restraints and cost reduction measures placed in the General Government Budget to maintain the same spending level as 1999, despite increases of 6.5% in mandated and contractual costs, such as labor settlement costs and Regional Library services. Another reason the City has a substantial need to implement the full 6% property tax rate increase is because Public Safety Pension obligations for 2000 will increase by $165,000. The Implicit Price Deflator would only generate about $166,000 in new revenue, including any revenue derived from annexations and new construction. If the Implicit Price Deflator were used, there would be no additional operating revenue for other departments. Even the proposed 6% increase would require that 25% of the property tax revenue be dedicated to meet public safety pension demands. Due to these extraordinary circumstances, increasing the property tax levy above the Implicit Price Deflator is justified, especially if Initiative 695 passes and the MVET allocation is lost. In addition, lost taxes from utilizing the Implicit Price Deflator can never be recovered because the tax base is permanently reduced. Mr. Zais noted that the difference between the 1.4% Implicit Price Deflator compared to the 6% levy represents an increase of only about $15 annually on a $100,000 home assessed valuation. However, the total tax rate per taxpayer is slightly 2 NOVEMBER 2, 1999 1 2 9 lower than it was last year due to factoring in savings from debt refinancing of the 1986 Nob Hill Bond Issue. As he made his presentation, Mr. Zais referred to a series of charts and graphic indicators to illustrate his point. Using comparable cities between 25,000 and 85,000 population, Mr. Zais pointed out that per capita, Total City Expenditures from other cities are $406 more than Yakima; Per Capita Total Revenues are $567 more than Yakima, and Per Capita Property Taxes are $58 more than Yakima. Mr. Zais also noted that Yakima spends 5.31% more revenue on a per capita basis for Criminal Justice than average comparable cities. Both Street and Traffic Operations and the Parks and Recreation Division depend on property tax revenue. The Tahoma Cemetery is not generating adequate resources to continue cemetery operations and is currently subsidized by $100,000 a year from the Parks Department of which property tax is a major contributor. Mr. Zais also noted that the City is not expected to collect the full levy amount because of higher senior citizen exemptions, delinquent taxes, and other uncollectible accounts. A 4% reduction is estimated in actual collections" from the authorized proposed levy amount. This trend is expected to continue in the future. After concluding his presentation, Mr. Zais then welcomed any questions or comments about the tax levy proposal. Ray Paolella, City Attorney, explained why three ordinances are required to process the tax levy instead of one ordinance. Since Initiative 47 was passed several years ago, state statutes require that separate ordinances be prepared to (1) identify the intent to authorize an increase (Ordinance " A" ), (2) set the limit factors and describe reasons for " substantial need" to increase the property tax levy above the implicit price deflator rate (Ordinance " B" ,) and then (3) an ordinance to set the tax levy (Ordinance " C" ). He also explained that each ordinance has specific passage regulations under the statute. Ordinances "A" and " C" require just a " simple majority (4 -3 vote)." Ordinance " B" requires a " super majority (5 -2 vote)." Mayor Puccinelli opened the public hearing and invited comments from the audience. Anne Haley, Director of Yakima Valley Regional Library, provided copies of information to the Council concerning the Library's proposed budget for 2000. She summarized the budget proposals and then urged the Council to increase the property tax levy by six percent, instead of using the Implicit Price Deflator index. There being no one else wishing to comment, Mayor Puccinelli closed the public hearing. 3 • 130 NOVEMBER 2, 1999 • 7. PUBLIC MEETING CONTINUED FROM JULY 6, 1999 ON THE APPEAL FILED BY LORI FRYMIER OF THE HEARING EXAMINER'S DECISION ON AN APPEAL BY HARRY RAINFORD CONCERNING NOTICE OF NONCOMPLIANCE FOR PROPERTY AT 3310 W. NOB HILL BLVD. At the request of the appellant, the public meeting was continued to May 2, 2000. 8. AUDIENCE PARTICIPATION Ailene Kane, 701 South 14 Avenue, and Lynne Kittleson, spoke in opposition to placing filters on the computers in the library for users of their internet services. Council Member Buchanan read a letter from Laura C. Turner, 32 Avenue, who also is opposed to filtering the computers due to first amendment constitutional rights. However, she suggested that parental consent be required because accountability should be with parents, not the library. Chris Waarvick, Director of Public Works, announced the fall leaf pick -up program would be in operation December 1 through 29 He noted that pick -up will be behind the street curbs. Council Member Barnett requested that pick -up be allowed in alleyways because pick -up has always been in the alleyways; he feels the big bag of leaves would be torn up if left out by the street curb. There was additional discussion about how the leaves will be picked up. Council Member Barnett voiced his concern about the inadequate time frame to review the state and federal documents regarding storm water planning before the Clean Air Authority public hearing is held. *9. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF MEMO OF UNDERSTANDING WITH THE CONFERENCE OF GOVERNMENTS REGARDING COMMUTE TRIP REDUCTION PROGRAM RESOLUTION NO. R -99 -140, A RESOLUTION authorizing the Mayor to execute a memorandum of agreement between the Yakima Valley Conference of Governments and the Cities of Selah, Union Gap, and Yakima for commute trip reduction plan development and implementation. *10. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUITON OF AGREEMENT WITH U. S. CELLULAR FOR TOWER SPACE LEASE AT FIRE STATION #3 FOR CELLULAR COMMUNICATIONS RESOLUTION NO. R -99 -141, A RESOLUTION authorizing and directing the City Manager and the City Clerk of the city of Yakima to execute a Monopole Tower and Ground Space Lease with Yakima MSA Limited Partnership. 4 131 NOVEMBER 2, 1999 *11. SET DATE OF PUBLIC HEARING FOR NOVEMBER 16, 1999 ON THE OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES CONSOLIDATED PLAN November 16, 1999 was set as the date of public hearing on the 2000 - 2004 Consolidated Plan. *12. SET DATE OF PUBLIC MEETING FOR DECEMBER 7, 1999 TO CONSIDER AN APPEAL OF THE HEARING EXAMINER'S DECISION ON A SHORT PLAT AND CLASS (2) DUPLEX DEVELOPMENT FILED BY LARRY LOVELESS December 7, 1999 was set as the date of public meeting to consider an appeal filed by Larry Loveless of the Hearing Examiner's decision on a short plat and Class (2) duplex development in the R -1 zoning district. *13. APPROVAL OF REPORTS FROM FINANCE DEPARTMENT: A. THIRD QUARTER 1999 TREASURY REPORT The Third Quarter 1999 Treasury Report was approved. B. THIRD QUARTER 1999 ACCOUNTS RECEIVABLE REPORT The Third Quarter 1999 Accounts Receivable Report was approved.. *14. APPROVAL OF THE THIRD QUARTER 1999 ENGINEERING CAPITAL IMPROVEMENT PROJECTS STATUS REPORT The Third Quarter 1999 Engineering Capital Improvement Projects Status Report-was approved. *15. CONSIDERATION OF ORDINANCE REDUCING THE CITY'S GAMBLING TAX FOR BINGO OPERATIONS TO CONFORM WITH NEW STATE LAW ORDINANCE NO. 99 -43, AN ORDINANCE relating to the gambling tax rate on bingo receipts; changing the gambling tax rate on bingo receipts from ten percent to five percent, commencing January 1, 2000; and amending section 5.49.020 of the City of Yakima Municipal Code. 16. OTHER BUSINESS Information Items: Items of information provided to Council were: News Release from Central Washington Comprehensive Mental Health regarding VA Awards CWCMH Homeless Vets Grant. 10/27/99; Notes from September 27, 1999 WSDOT Open House to discuss SR -24/ I -82 to Keys Road project; Letter from City of Grandview to the Yakima Regional Clean Air Authority regarding YRCAA 2000 assessment. 10/27/99; Monthly Report of the Chief of Police for September 1999; Yakima Transit Third Quarter 1999 Report; City of Yakima Planning Division Assignments Pending as of November 2, 1999; Agenda for the November 1, 1999 Charter and Police & Fire Civil Service Commissions joint meeting and minutes of their July 12, 1999 joint meeting; and Agenda for the October 28, 1999 Yakima Air Terminal Board meeting and minutes of its September 23, 1999 meeting. • 5 132 NOVEMBER 2, 1999• 17. EXECUTIVE SESSION REGARDING PENDING LITIGATION (WASTEWATER ODOR CLAIMS STATUS REPORT - ALLOW 45 MINUTES) It was MOVED BY KLINGELE, SECONDED BY BUCHANAN, TO MOVE INTO EXECUTIVE SESSION AT 3:18 P.M. REGARDING PENDING LITIGATION FOR APPROXIMATELY 45 MINUTES, WITH ADJOURNMENT TO NOVEMBER 9, 1999 FOR A BUSINESS MEETING AT 8:30 A.M. IN THE COUNCIL CHAMBERS TO CONSIDER PROPERTY TAX LEGISLATION FOR THE YEAR 2000, THEN TO 9:00 A.M. FOR BUDGET STUDY SESSION. The motion carried by unanimous voice vote. 18. ADJOURNMENT TO NOVEMBER 9, 1999 BUSINESS MEETING AT 8:30 A.M. IN THE COUNCIL CHAMBERS TO CONSIDER PROPERTY TAX LEGISLATION FOR THE YEAR 2000, THEN TO 9:00 A.M. FOR BUDGET STUDY SESSION Following the conclusion of the Executive Session, the meeting adjourned at 4:30 p.m. READ AND CERTIFIED ACCURATE BY: /yL.- ��.�• 9 COUNCIL BEik DATE CO ■ IL MEMBER DATE ATTEST: - CITY CLERK JOHN PUCCINELLI, MAYOR Minutes prepared by Deputy City Clerk Skovald. An audio and video tape of this meeting are available in the City Clerk's Office. • 6