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HomeMy WebLinkAbout10/05/1999 Adjourned Meeting 104 CITY OF YAKIMA, WASHINGTON OCTOBER 5, 1999 ADJOURNED MEETING The City Council met in session on this date at 7:30 a.m., in the 2nd Floor Training Room, at the Police Station /Legal Center, 200 South 3 Street, Yakima, Washington. Mayor John Puccinelli, presiding, Council Members Clarence Barnett, Henry Beauchamp, Lynn Buchanan, John Klingele, Mary Place, and Bernard Sims were present. City Manager Zais, Assistant City Manager Rice; Ray Paolella, City Attorney; Chris Waarvick, Public Works Director; Rita Anson, Director`of Finance and Budget; Don Blesio, Chief of Police; Al Gillespie, Fire Chief; Bill Cook, Director of Community & Economic Development; Marketa George Oliver, Administrative Assistant to the City Manager; and Deputy City Clerk Skovald were also present. Preview Of Year 2000 Budget /Motor Vehicle Excise Tax Contingency Budget Reduction Plan City Manager Zais summarized the $2 million MVET Cost Reduction Plan. This contingency plan was developed to help offset possible revenue shortfalls for General Government expected to occur January 1, 2000, if voters approve Initiative 695 (I -695) in the November election. City Manager Zais noted that Criminal Justice costs have cumulatively increased 105% over the past ten years, more than double the increase in the Consumer Price Index (CPI). By comparison, all other General Fund expenses have been on par with the CPI at 46% for the same period. Mr. Zais additionally pointed out that criminal justice costs continue to consume an ever - increasing share of total General Fund resources and accounts for a substantial dedication of the MVET allocation. Currently, approximately 50% of General Government resources are spent on Public Safety. MVET funds are allocated for police, fire and jail operations, prosecution, and court services. If I -695 is passed and MVET funds are lost, total expenditure reductions from the public safety arena are not recommended since the impact on public safety services would be too great. Instead reductions will be shared by all the divisions within the General Fund. Those potential reductions in General Government Operations total $2 million. That amount is in addition to $765,000 in reduced spending achieved through cost reduction measures implemented one year ago, when a total of 13 full -time equivalent vacant positions were deleted throughout General Government departments. Mr. Zais also noted that doesn't mean the eliminated positions are not needed; it only means the adjustments have been made and more productivity is expected from other employees. ADJOURNED MEETING - OCTOBER 5, 1999 0 Mr. Zais directed attention to the abbreviated budget forecast provided for this meeting and reported that the 2000 Preliminary Budget Forecast is balanced within existing resources and is a stringent, hold - the -line budget. The budget forecast shows a reduction in General Government spending below the amended 1999 budget due to anticipated shortfalls in revenue that the City has traditionally relied upon. Mr. Zais noted that decreased property tax revenue and a decrease in sales tax revenue are also expected next year. Reduced allocations of MVET along with other anticipated reductions in revenue allocations, i.e., from decreased sales tax and decreased property tax revenue, would take place in January 2000, if I -695 is approved by the voters this fall. Mr. Zais also reported that the City's revenue base is not keeping up with existing services that have been provided for many years. Even though cost containment measures in a number of areas were implemented last year, more - constraints in general government operations are necessary this year. If the local economy doesn't improve and revenues don't increase, more reductions will be made in the future. Decisions about selective vacancies will be considered on a case -by -case and an position -by- position evaluation. No new general- purpose taxes are proposed and the overall total estimated expenditures for 2000, $102,223,644, are slightly below (.38 %) the amended 1999 budget of $102,614,229 by $389,585. Total 1999 City Budget expenditures are projected to be $97,193,442, which is $5,420,787 below the current amended budget level of $102,614,229. Projected General Government expenditures are $39,868,028, which is $1,318,674 below the amended 1999 budget of $41,186,702. As was mentioned earlier those savings were achieved through cost reduction measures implemented last year. Every department in the City has reduced their spending levels for a total of 5.3 %. City Manager Zais recommended that the property tax levy be adjusted to the maximum allowable to continue paying for mandated /contractual services that include Public Safety pensions and long -term care costs. The Implicit Price Deflator shows an increase of 1.3 %, and if it were utilized, only $126,000 would be generated. That would not be sufficient to pay for Public Safety pension and long term care costs, expected to increase to at least $165,000 next year. In conclusion, Mr. Zais noted that because of the severity of the potential expenditure reductions required from the possible passage of I -695, the Council might want to entertain the idea of petitioning the I/ Washington State Legislature to allocate equivalent replacement funding from State reserves or other State revenue resources. To avoid a budget imbalance, expenditure reductions would still have to take place in January 20.00 because revenues could be eliminated then. Private sponsorships or promotional advertising may be an option for Council to consider to support some city recreational services and programs. 2 106 ADJOURNED MEETING - OCTOBER 5, 1999 Directors from all five departments within the City summarized their specific recommendations for contingency reductions within their departments. Mayor Puccinelli asked them to be brief. Chief Don Blesio summarized the following Police Department contingency budget and program reductions ($385,490) and described the associated impacts: • Elimination of four vacant police officer positions ($222,000). • Elimination of the Summer Park Patrol program ($12,060). • Reduction in Police Department's operating budget, including training, office supplies, uniforms, vehicle replacement and equipment line items ($151,430). Chief Al Gillespie summarized the following Fire Department contingency reductions ($191,600) and described the associated impacts: • The deletion of the Fire Department Reserve Program ($23,400). • The loss of 3 full -time Firefighter positions, 2 vacant and 1 filled ($165,000). • The cut of the College Degree Program ($3,200). Bill Cook, Department Director, summarized the following Community and Economic Development contingency reductions (Tier 1 $135,763 and Tier 2 $81,344, for a total of $217,107) and described the associated impacts: • The loss of 2 vacant positions, Engineering Tech III and Fire Code Inspector (Tier 1, $47,612 and $55,151). • Reduced Level of Service for City Hall Repair and Maintenance (Tier 1 $33, 000) . • The loss of vacant Associate Planner position (Tier 2 $53,086). • Reduced office and operating supplies within the City Hall Budget (Tier 2 $1,758). • Reduced Capital Equipment purchases within Engineering Division (Tier 2 $5,000). • Reduced Funding for small tools and minor equipment within Engineering Division (Tier 2 $8,500). • Reduced funding for office and operating supplies within Engineering Division (Tier 2 $10,000). • Reduced funding for small tools and minor equipment within Code Administration Division (Tier 2 $1,500). • Reduced funding for office and operating supplies within the Code Administration Division (Tier 2 $1,500). 3 10 ADJOURNED MEETING - OCTOBER 5, 1999 Chris Waarvick, Director of Public Works, summarized the Streets & Traffic Operations contingency reductions (Tier 1 $123,196, Tier 2 $89,649) and described the associated impacts: • Reduced Street Light supplies ($6,750). • Reduced Signal supplies ($8,400). • Reduced Sign supplies ($6,200). • Reduced Paint supplies ($10,000). • Reduced Capital Equipment purchases ($7,500). • Elimination of Traffic Operations vacant Temporary Staff ($14,346). • Reduced Cash Contribution to 2000 Grind and Overlay Project ($50,000). • Reduced Weed Control Program ($10,000). • Reduced Residential Sealcoat program ($10,000). • Reduced Vehicle Replacement Contribution (Tier 2 $50,000). • Eliminate Street Maintenance Specialist I vacant (Tier 2 $39,649). Council Member Sims requested that all vehicle replacement requests be completely reviewed in all departments' budgets. There was discussion about out -of- service problems with vehicles and equipment. Chris Waarvick, Director of Public Works, summarized the Parks & Recreation Division's contingency reductions (Tier 1 $209,837 Tier 2 $157,379) and described the associated impacts: • Tier 1, Reduce Park Maintenance Capital ($25,000). • Tier 1, Eliminate RSVP and reduces hours of operation at the Senior Center ($20,800). • Tier 1, Eliminate the Alleycat Program ($51,766). • Tier 1, Eliminate Milroy Playground Program subsidy to the Salvation Army for running the program in the summer ($7,500). • Tier 1, Reduce funding by 20% for the Gang Prevention /Intervention Kids' Place /Night Action Programs ($15,000). • Tier 1, Eliminate capital improvements (automated irrigation) for Tahoma Cemetery ($8,000). • Tier 1, Reduce summer pool operations at three pools, Miller, Washington, and Eisenhower, by two weeks and close Lions Pool during the summer ($57,683). • Tier 1, Eliminate Word Processing typist filled three - quarter time position ($24,088). • Tier 1, Eliminate Capital Improvements for Tahoma Cemetery and Increase Tahoma Cemetery fees by 20% to generate revenue to decrease Parks subsidy. ($8,000). • Tier 2, Close Washington Pool for the summer and close Lions Pool on Saturdays ($48,080). 4 108 ADJOURNED MEETING - OCTOBER 5, 1999 • Tier 2, Eliminate Park Maintenance Tree budget and City Arborist certification funding ($20,000). • Tier 2, Eliminate all Community Recreation programs for Youth and Adults including playground programs, concerts, and special events ($43,299) . • Tier 2, Reduce Equipment Replacement by 50% ($10,000). • Tier 2, Reduce Athletic Improvements to ballfields ($4,000). • Tier 2, Increase Tahoma Cemetery fees by 20% to generate revenue to reduce the subsidy by Parks and Recreation to the Tahoma budget (increase revenues•by $32,000). Council Member Place asked when the fee increase for Tahoma Cemetery would need to be done so as not to be impacted by I -695. She ascertained that the increase in minimum wage from $5.70 to $6.50 would occur in January 2000, but it has nothing to do with I -695. Chris Waarvick noted that the Parks & Recreation Division bills the Risk Management fund $50,000 a year to replace or repair equipment that has been vandalized. Anne Haley, Director of Yakima Valley Regional Library, highlighted the 2000 Library Budget, presented a brief overview of the 1999 Service Highlights, and noted the long -term financial health of the regional Library as it relates to declining equivalent levy rates in cities. Ms. Haley also urged the Council to adopt the general government property tax at the proposed 106% rate. She also described the potential increase in net revenue to the city if city libraries were annexed into the regional library system. Ms. Haley concluded her presentation by summarizing the following contingency plan reductions and described associated impacts (Tier 1 $69,000, Tier 2 $115,000): • Utilizing Thin Clients instead of PCs. • Changed Medical Insurance classification to Community Rating. • Installed Equipment in lieu of employees. • Introduced Pre -tax medical reimbursement plan savings on FICA. • Received an E -rate discount on telecommunications. • Implement Overdue fees. • Tier 1, Reduce vacant position in Reserve Dept to half time ($12,060). • Eliminate postage for mailing reserves ($31,000) • Postpone replacing 1986 Passenger Van ($20,000). • Reduce purchase of and materials $$5,940). • Tier 2, eliminate 15 hr /wk Page in Circulation ($5,560). • Eliminate interlibrary loan postage ($6,400). -• Apply E -rate discount to existing telecommunication ($9,960). • Cancel Janitorial Service at Summitview Library ($6,600). • Close Summitview Library on Sunday ($6,500). • Close Yakima Library on Thursday evening ($2,240). • Further reduce purchase of books & materials ($8,740). 5 109 ADJOURNED MEETING - OCTOBER 5, 1999 There was discussion about contracted library services, which are paid from the General Fund versus annexed libraries, which would be paid from the ad- valorem tax base. Council Member Sims requested that the Summitview Library not be closed on Sundays and suggested hours during the week be cut instead. Ray Paolella, City Attorney, summarized the following contingency reductions for the Legal Department and described the associated impacts (Tier 1, $95,145): • Eliminate Assistant City Attorney I (Prosecutor) filled position ($63,000). • Eliminate Domestic Violence Grant Contract with YWCA ($32,145). Glenn Rice, Assistant City Manager, summarized the following City Administration contingency reductions (Tier 1 $46,000, Tier 2, $60,600): • Tier 1, Eliminate the Deputy City Clerk filled position in Records Division ($46,000). • Tier 2, Eliminate Storekeeper filled position in Purchasing Division ($35,000). • Tier 2, Reduce Administrative Assistant to the City Manager filled position to 800 time ($12,000). • Tier 2, Reduce Department Assistant II filled position in Human • Resources Division to 80% time ($7,600). • Tier 2, Eliminate Miscellaneous Equipment and Supplies for all divisions in department ($6,000). City Manager Zais provided a supplemental page to clarify Exhibit II, page 47 of the report. Mr. Zais and Rita Anson, Director of Finance & Budget, summarized the contingency reductions for the Department of Finance & Budget (Tier 1 $212,000, Tier 2 $130,000): • Eliminate Add Temp help ($6,000). • Reduce Outside Agency Programs funding by one -third ($23,000). • Reduce Personal Computer equipment replacement in Information Systems Division ($17,500). • Defer Windows NT Upgrade in Information Systems Division ($45,000) • Reduce Professional Services for System Design and Support in Information Services Division ($5,500). • Reduce Training of Information Systems personnel ($5,000). • Cancel Vendor Maintenance Contract on AIMMS System after 6 months, assuming any /all Y2K problems have been corrected ($25,000). • Eliminate vendor maintenance contract on WordMark (Police Department's) word processing system ($2,000). 6 110 • ADJOURNED MEETING - OCTOBER 5, 1999 • Eliminate Municipal Court Clerk vacant position ($36,000). • Eliminate one Animal Control Officer filled position ($47,000). • Tier 2, Reduce Operating supplies in Finance Division. ($3,000). • Tier 2, Reduce Small tools and Minor Equipment in Finance Division ($9,000). • Tier 2, Reduce Outside Agency Requests by an additional one -third ($23, 000) . • Tier 2, Defer applicant Tracking Software System for Human Resources Division budgeted in Information Systems ($25,000). • Tier 2, Eliminate Police DEC Alpha Computer Replacement ($45,000). • Tier 2, Offset the above two reductions by partially restoring funding for PC equipment from Tier 1 reductions ($10,00(1). • Eliminate Customer Services Manager filled position (General Government Portion only $35,000). City Manager Zais concluded the presentation of basic options and choices for the Council. He noted that other options would be continued to be explored. The rest of the budget is still being prepared with review beginning November 9 The summaries to the policy issues will be provided in the Preliminary Budget. There is only one new position in the Probation Services Division being requested in the 2000 Budget, which would be funded by Probation Services revenue. Health and Medical Costs Update City Manager Zais reported that this year's health and medical premium cost increase is anticipated to be about 7 to 100, to cover medical claims and build up reserves. He referred to the significant impact that premium cost sharing increases have traditionally had across the entire budget, as well as on individual employees. Mr. Zais noted that a taskforce has been looking at cost containment measures that could be implemented within the current medical plan. Mr. Zais also reported that a quote has been requested and received from Association of Washington Cities Medical Trust to determine if the City of Yakima may be better suited and benefited by joining the AWC Medical Plan. The review process is currently underway to consider costs and the relationship between benefits and services in comparison to the current self- insured medical plan. After the analysis is completed and the benefit cost comparison is evaluated, a recommendation will be made. Any significant change from the current self - insured plan would come back to the City Council for full review and consideration. 7 111 ADJOURNED MEETING - OCTOBER 5, 1999 It was MOVED BY KLINGELE, SECONDED. BY BUCHANAN, TO ADJOURN AT 9:25 A.M. The motion carried by unanimous voice vote. • READ AND CERTIFIED ACCURATE BY: _ LL /0 CIL ME `J' R Y DATE air NCIL ) ':ER DATE ATTEST: 2 CITY CLERK JOHN PUCCINELLI, MAYOR • Minutes prepared by Deputy City Clerk Skovald. An audio and videotape of this meeting are available in the City Clerk's Office 8