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Home My WebLink About11/08/2011 Adjourned Meeting - Budget Workshop 1.09 • • YAKIMA CITY COUNCIL ADJOURNED MEETING — BUDGET WORKSHOP NOVEMBER 8, 2011 – 11:00 A.M. COUNCIL CHAMBERS – CITY HALL 1. RoII CaII Present: Council: Mayor Micah Cawley, presiding, Assistant Mayor Kathy Coffey, Council Members Maureen Adkison, Dave Edler, Rick Ensey, Dave Ettl and Bill Lover Staff: City Manager Cooper, Finance & Technology Director DeBord, Deputy Director of Accounting and Budgeting Epperson and City Clerk Kloster 2. 2012 Budget Review City Manager Cooper summed up the City's budget for 2012. He stated Council needs to understand the ability to sustain the present level of service is not possible without revenue increases or expenditure reductions. Council Member Edler asked for Mr. Cooper's recommendation. City Manager Cooper stated the overriding issue is sustainability, which needs to be dealt with on a long -term basis. Expenses need to be lowered and the Council should decide what services they want to keep. There are services the City provides that are not required, such as fire inspections. To follow the POG (Priorities of Government) model, with a reduction of $500,000, approximately $300,000 will come out of public safety, in addition to layoffs of staff. Mayor Cawley asked Council if there is any interest in raising revenue. Council Member Edler reported street infrastructure needs to have an ongoing revenue stream. Therefore, he is still interested in a license tab fee to increase the funding to maintain • streets. Assistant Mayor Coffey believes street maintenance is a separate issue from the general fund, but it does have an effect on the overall increase in any revenue. The City Manager commented that we may be able to get by this year, but whatever we do this year will be the foundation for the future. He said it is a disservice to solve the problem for one year and leave it unfunded for the future. The City needs a sustainable revenue stream /business model and right now they do not. • Mayor Cawley noted that any savings due to budget cuts will be eliminated if the. Governor's budget is approved. As much as they have tried to save the six police officer positions, he thinks they need to be on the budget reduction list at this time. Council Member Edler asked if he is holding true to this proposed budget. Mayor Cawley responded he doesn't think there is a choice as we are "boxed in." Assistant Mayor Coffey stated she envisioned some discussion and agreement on what to cut or not cut. Council Member Ensey feels they are making things complicated. They could adopt the budget the City Manager presented and move into discussions about long -term solutions. 110 November 8, 2011 ENSEY MOVED AND EDLER SECONDED THAT WE ACCEPT THE CITY MANAGER'S BUDGET AS PRESENTED. Council discussion ensued regarding the budget. The motion failed by a 5 -2 roll call vote, Cawley, Coffey, Adkison, Ettl and Lover voting no. City Manager Cooper noted charging for full costs for planning /zoning fees will be approximately a 300% increase, which will amount to about $165,000 annually. He stated if parks are eliminated, that is only $2 million per year in savings. Council Member Ettl questioned what will be recommended for next year. Mr. Cooper stated to be sustainable would mean reducing personnel by 10 %. Council Member Lover stated he would like to hear from the Department Directors on how the budget cuts may affect each department's long -term sustainability. He would also like to begin the budget process with the full Council for next year at the beginning of 2012 by meeting once per month for three months. Mayor Cawley asked for the City Manager to comment. Mr. Cooper stated he can provide suggestions that gets the City into next year, but forestalls the day of reckoning. The easy solution to this is to accept his October recommendations of the POG model, not fund the vacant positions, not make the supplemental cuts and see what happens with interest arbitration and the state's budget. They can solve some problems by tapping into reserves, which is about 1.4 million above the minimum 7% reserve. However, that only forestalls the inevitable. With cuts from the state in 2013 they will be looking at reducting an additional half million over and above what is anticipated for 2012. Mayor Cawley reported he can accept the recommended cuts, except the City Manager proposed reduction. He feels they can use reserves and buy more time. Mr. Cooper replied they are only buying time, not solving the problem. Each Department Director spoke about the affects of the budget reductions on their departments. EDLER MOVED AND ADKISON SECONDED THAT WE COUNCILMANICALLY IMPOSE A UTILITY TAX EQUIVALENT OF $2 MILLION IN REVENUE FOR THE GENERAL GOVERNMENT BUDGET TO BE DISPERSED IN THE PRIORITIES OF GOVERNMENT MODEL AS PRESENTED ON PAGE 6 SECTION 4. Council had a lengthy discussion,' noting this action does not raise taxes, but will place this on the Council's agenda for a public hearing and discussion. The motion carried by a 5 -2 roll call vote, Ensey, and Lover voting no. Assistant Mayor Coffey questioned Finance, if this were passed, what is the impact on the rate payer. Finance & Technology Director DeBord estimated 6% or just over $6 per month. EDLER MOVED AND COFFEY SECONDED TO BEGIN THE PROCESS FOR IMPLEMENTING A $20 LICENSE FEE FOR ROAD MAINTENANCE STRICTLY FOCUSED ON ASPHALT AND CAPITAL IMPROVEMENTS. Council discussion followed. The motion carried by 5 -2 roll call vote, Lover and Ensey voting no. 1.11 November 8, 2011 Council Member Edler stated the roads are in rapid decline. This is a plan to create a revenue source for road maintenance only. Assistant Mayor Coffey doesn't like any tax but feels the time has come to do something. This will set up a process where the community can have a voice. I/ . Council Member Ettl feels if it is $20 a year, per car, and assuming $6 per month on utilities, this is about $100 annually for a package that will generate approximately $3 million to offset these cuts and $1 million for streets. Council Member Lover indicated they already raised refuse rates and plan to increase stormwater and wastewater rates, which would affect those on a fixed income. City Manager Cooper asked for direction in preparing and presenting the budget for adoption by Council. CAWLEY MOVED AND EDLER.SECONDED TO ACCEPT THE CITY MANAGER'S CUTS AS PROPOSED. Mayor Cawley clarified his motion to accept the cuts, supplemental reductions and Priorities of Government (POG). The motion carried by a 6 -1 roll call vote, Coffey voting no. Assistant Mayor Coffey feels they do not need to take this action at this time. Human Resources Manager Chapin reminded Council that under Charter Civil Service rules, employees need to be notified 14 days in advance of a lay off. 3. Adjournment ENSEY MOVED AND COFFEY SECONDED TO ADJOURN TO 3 P.M. FOR A JOINT CITY COUNTY MEETING WITH DEPARTMENT OF CORRECTIONS. Motion carried by unanimous voice vote. The meeting adjourned at 1:30 p.m. The next Council Business meeting is November 15, 2011 at 6:00 p.m. in the Council Chambers Aga R EAD AND CERTIFIED ACCURATE B !•.:,!; , WS 1 - • . ' oZ- . �_ C•U IL �t''' DATE % *f . + 9 I7 L-GOIfNCIL MEMBER DATE A'TST; j 1, ' 4 • ` ' 11 l� A 0 v. ::�siZ A? it le ��.� TY CL ° K- MICAH C A LEY, MAYOR Minutes prepared by Sonya Claar Tee. A CD and DVD of this meeting are available in the City Clerk's Office