HomeMy WebLinkAbout05/17/2011 04B-3 Minutes 04-27-2011 Council Budget Committee L f 8 3
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• Council Budget Committee
CED Conference Room (2 "d floor)
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City Hall •
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Wednesday, April 27, 2011
3:30 — 5:00 p.m.
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• Attendance: Council Members: Micah Cawley, Bill Lover, Kathy Coffey
Staff: Dick Zais, Michael Morales, Rita DeBord, Cindy Epperson, Debbie Kloster,
Colleen Chapin, Randy Beehler, Judge Woodard, Linda Hagert, Captain Jeff
Schneider, Richard Wonner, Robin Dukart
Discussion: •
➢ Dick Zais informed the CBC of the additional retirement announcement of City Clerk,
Debbie Kloster and noted the previous retirement announcement of the Deputy City
Clerk, Linda Watkins. He presented an overview of the duties of the Clerk's Office
and the need to prepare for these transitions. He discussed those duties of the
Deputy City Clerk that are specialized and knowledge specific to LEOFF Pension
benefits. He explained an additional change being implemented that will change the
administration of retirement benefits for retirees 65 yrs. and older. He explained this
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creates an opportunity to reallocate duties between Human Resources and the
® Clerk's Office and which would result in significant savings.
• The re- allocation will require a mid -year Policy Issue requesting an additional
FTE to the Human Resources Department. The "new" position is in the Pay
Ordinance and would not require Civil Service review / authorization.
• Kathy Coffey moved to present the Policy Issue to full Council. Bill Lover
• seconded and the motion carried unanimously.
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Dick summarized the 1 Quarter Budget update:
• Revenues have stabilized; showing a slight increase yet on target overall with the
• 2011 budget projections.
• Michael Morales reported the CDBG had been notified to expect an approximate
16% reduction in dedicated federal entitlement revenues from the 2010 award.
• • Fuel costs projections were presented, and reflect (at the current rate and level),
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a cumulative impact exceeding the 2011 Budget by approximately $407,000.
• The Committee requested staff to monitor and address the projected fuel budget
shortage.
- • Captain Jeff Schneider reported the current Jail cost trends reflect an increase in
• numbers of days served and a large increase in the number of dangerously
mentally ill inmates. Current Jail costs are predicted to be approximately $600k
over the 2011 budget for contracted services.
• Judge Woodard stated while she was aware of the raising jail costs, the Courts
• • have very little control to reduce these costs. She explained jail sentencing is
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mandated with a minimum sentence structure and results in increased jail costs.
She acknowledged a direct relationship between the lower crime rates and the
increase in inmate housing costs.
• Cindy Epperson informed the Committee the State shared revenue projections
are reduced by approximately 3.4% or approximately $25k for the remainder of
2011.
➢ Rita DeBord handed out a multi -page list of "in- process" and outstanding projects for
the 3 divisions within the Finance Department. She expressed great concerns for
the workload and backlog. She also stated that the Finance Division was facing
some significant internal control and processing issues that need immediate
attention. She stated the current workload of existing staff is a risk management
concern.
➢ The 2012 Budget process was discussed. Kathy Coffey stated her concern that the
2012 Budget process may take longer to develop this year with the transition of the
City Manager position.
• The Finance Director walked through the general budget schedule which was
similar to prior years. Rita stated that the finance budget staff can pick up more
of the leg work the City Manager previously performed, and that the acting / new
City Manager will need to make budget allocation decisions; based on Council's
overall budget direction. It would be this budget allocation decision making
process that will be different this year with a new City Manager.
• Finance was directed to prepare the first General Government revenues forecast
for evaluation at the next CBC meeting.
Next Meeting: Wednesday, May 25, 2012
3:30 — 5:00 p.m.
CED Conference Room
Committee C air (Minh Cawley)
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