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.
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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).
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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).
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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).
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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).
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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.
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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:
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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
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