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HomeMy WebLinkAbout11/13/2001 Adjourned Business Meeting 337 NOVEMBER 13, 2001 CITY OF YAKIMA, WASHINGTON ADJOURNED BUSINESS MEETING NOVEMBER 13, 2001 - 8:30 A.M. COUNCIL CHAMBERS 129 NORTH 2 STREET 1. ROLL CALL Present: Council: Mayor Mary Place, presiding, Council Members Clarence Barnett, Henry Beauchamp, Lynn Buchanan, Larry Mattson, and Bernard Sims Staff: City Manager Zais, City Attorney Paolella and City Clerk Roberts Absent: Council Member John Puccinelli 2. PUBLIC HEARING ON CONSIDERATION OF LEGISLATION PERTAINING TO AD VALOREM PROPERTY TAX LEVY FOR COLLECTION IN 2002: ® City Manager comments on the property tax levy City Manager Zais spoke about the timing of this public hearing, stating that even though the deadline is November 15 to submit the levy to the County Auditor, the public hearing was scheduled to be held after the election to await the outcome of Initiative 747. Initiative 747 passed and sets a new threshold of property tax increase of 1% annually, excluding new construction and annexations. This year's levy is presented with that objective in mind and the City's budget was prepared on the basis that the Initiative would pass. The assessed property value has not increased as much as we thought and the other 6% lid is triggered. Had the Initiative not been passed, the maximum levy increase would have been 4% because we are at the $3.51 levy amount and the maximum lid is $3.60. The 1% property tax levy increase will provide $110,000 in additional revenue. There are other adjustments included in the projected additional revenue, such as for new construction and the new annexations. He commented that the 1% increase is less than 1) Substantial need basis that has been in effect under the law; 2) Construction Cost Index; 3) CPI — Seattle; 4) Implicit Price Deflator; and 5) Equals the current assessed valuation number. The City also relies on sales tax for revenue; the total revenue increase is about $400,000 over the 2001 level, for a total budgeted revenue of $11.2 million. Going back to the property tax, he stated that nearly 98% of the property tax supports pensions for Police and Fire. 75% of the Streets operations and 50% of Parks budgets is comprised of property tax revenue as well as about 16 -18% for other General Government budgets. He also noted that 100% of the funds for the Library budget comes from property tax revenue. On a per capita basis Yakima ranks about $51 less than other cities within the population base of 51,000 to 81,000. He pointed out that 28% of the total property tax levied is for municipal purposes; the majority of the property tax collected is for other governmental services from the State, County and public schools. When City Manager Zais added that the same premise is true for sales tax, Council Member Beauchamp requested that a chart be prepared to indicate the distribution of the sales tax. 3 8 NOVEMBER 13, 2001 A. AN ORDINANCE AUTHORIZING AN INCREASE IN THE CITY'S ANNUAL REGULAR LEVY FROM THE AMOUNT LEVIED THE PREVIOUS YEAR The City Clerk read the ordinance by title only; BUCHANAN MOVED AND BEAUCHAMP SECONDED TO PASS THE ORDINANCE. The motion carried by unanimous roll call vote; Puccinelli absent. ORDINANCE NO. 2001 -60, AN ORDINANCE relating to the annual property tax levy; authorizing an increase in the City's regular levy from the amount levied the previous year. B. AN ORDINANCE FIXING AND LEVYING THE AMOUNT OF AD VALOREM TAXES FOR THE 2002 BUDGET • Council Member Sims asks about property increase above 1% Council Member Sims inquired if any Council member would be interested in increasing the property tax above 1%, earmarking the increased revenue for the Police and Fire Departments. Discussion ensued about the legal aspects and risks if the property tax is increased beyond the 1% authorized by Initiative 747 that will become effective December 6. City Attorney Paolella advised Council that the Association of Washington Cities has advised municipalities to not exceed the 1% increase based upon previous court cases. He also advised Council that if the levy were to be challenged, there is the risk of the entire levy being invalidated and losing all the property tax revenue for the City. Although Council Member Sims acknowledged that the safety of the citizens is critical and additional police and fire fighters could be funded by this revenue, he concluded that the property tax revenue cannot be put at risk. The City Clerk read the ordinance by title; BUCHANAN MOVED AND BARNETT SECONDED TO PASS THE ORDINANCE. The motion carried by unanimous roll call vote; Puccinelli absent. ORDINANCE NO. 2001 -61, AN ORDINANCE fixing and levying the amount of ad valorem taxes necessary to balance estimated revenue with estimated expenditures for the 2002 budget for the City of Yakima. BUDGET REVIEW 9:00 A.M. — NOON 3. INTERGOVERNMENTAL (Budget Page L -1) Library — There were no questions at this time. 3 NOVEMBER 13, 2001 Emergency Services — There is a one -time increase of approximately $6,000 for the purchase of a vehicle. No one was available to answer questions at this time. Clean Air Authority — This budget represents a fee of $0.31 per capita. Council Member Barnett said he understood that the Board reduced this amount to I/ reflect what we have in the budget. YCDA — This is budgeted at the same level as last year. No one was available to speak to this budget. Health District — This budget is based on the state mandate of 2% of the City of Yakima receipts for liquor sales. COG — This budget will be presented next week. The budgeted increase is the result of the increase in the population. The actual assessment rate is the same. The tax money for the increased population due to the annexation will not be received for 18 months on property and approximately 4 months on other state receipts. Council Member Sims noted that we have the same territory but increased people with no new revenue coming from that increase. He asked where the City is to get the money to cover the increase on assessments per capita. City Manager Zais noted that it must come from current revenue. Council Member Barnett commented that if there needs to be a change in the assessment we should look at revising the contract with the agency. 4. FIRE DEPARTMENT Chief Gillespie and Deputy Chiefs Andring and Mayo were present to answer questions. Policy Issues (Page IX -1)— Council Member Barnett asked how wise it was to increase a position based on a levy that is coming up for election. Chief Gillespie said this position requires EMS money that is currently used to staff four firefighter and one captain positions. This policy request would add one position. He said this money is a more stable funding source this year than in the past. But, if the funding goes away because the voters choose not to fund it next year, we would lose not only the new position but the other five positions as well. Mayor Place mentioned that we have been asked to have a representative on the EMS Board. SIMS MOVED AND MATTSON SECONDED TO HAVE THE MAYOR REPRESENT THE CITY ON THE EMS BOARD. The Motion carried by a 5 -1 voice vote, Place voting nay, Puccinelli absent. This will be the subject of a study session early next year. Budget (Page J -1) — Chief Gillespie noted that they had in excess of 31,000 hours • of training during the last year. They had 5,316 customers using the training center outside of their own people. This year they are adding the reserve portion of a Chaplain Program. He highlighted the success of their cadet program. There was a suggestion made to rename the category "Station Relocation" to "Analysis of Service Demands" or "Planning ". City Manager Zais discussed the risk of losing state backfill money of which approximately $70,000 goes toward overtime. 3 4: 0 NOVEMBER 13, 2001 • 5. COMMUNITY AND ECONOMIC DEVELOPMENT Code Administration (Policy Issue Page VII -1) Bill Cook, Director of Community and Economic Development, and Doug Maples, Code Administration and Planning Manager, were available for questions. Also available were three members of the Community Review Panel; Trent Marquis of Marquis packaging, Ron Anderson from Central Home Builders Association, and Don Moen from Gilbert Moen Construction. Building Permit Fee Modification - Doug Maples explained the current method of calculating the fee and advised that the City's rate of $42 per square foot has not changed since 1991. It is being recommended to increase the rate to be more reflective of current costs. It was noted that we originally were subsidizing the development fees with the intent of stimulating the economy but it has now become counter - productive. Each time the service provided is not fully funded by the fee it takes away from something else. There was discussion by the members of the Community Review Panel emphasizing that they feel the fees are too low and should be adjusted but there should be benefits as a result of any increase, such as quicker turnaround times. Trent Marquis suggested a second reviewer is needed. City Manager Zais commented that this is an unbudgeted policy issue. If it is to be entertained for the final wrap up we should further amend the policy issue to show the consideration of additional personnel. Tourist Promotion (Budget Page H -54; Policy Issues Page VII -33) Kathy Coffey, General Manager of the Yakima Convention Center and Executive Director of the Yakima Valley Visitors Bureau, was available for questions. Ms. Coffey explained the policy issue for an increase in the administration fees that are to cover the "back of the house" (set up crews) for the Convention Center bringing parity with the rest of the industry. She also answered questions on the effect of the September 1 1 `h incident saying that, although they only had two cancellations, there will be a big impact from the resulting recession. She noted that 2001 will be a record - breaking year and 2002 is currently booked at the same level. The Seattle area is seeing a 20- 25% decrease in bookings and occupancy and is looking to capture our market share. Ms. Coffey said they are promoting our central location for the "drive" market and are partnering with local hotels. The Public Facilities District capital fund for the expansion of the Convention Center was discussed. Expansion is expected to start in June or July of 2002. NOVEMBER 13, 2001 3 "t l Capitol Theatre (Budget Page H -62; Policy Issue Page VII -31) Steve Caffery, Manager of the Capitol Theatre, Scott McKay, Technical I/ Director, and Neva Hilfiker, Controller, were available to answer questions. Mr. Caffery advised that since September 11 the theatre has lost about $50,000 in revenue dollars and as a result may for the first time experience a deficit. There are reserves to cover that. He also advised that Helen Jewett contributed $500,000 for research and development that will be used to target skills to help improve our downtown and quality of life. They are exploring options to increase activity, a sense of safety and a sense of destination using the arts as a tool. The major concern of the public has been the theatre's sound system. We have been able to secure a $75,000 grant for that purpose and will be moving ahead. Code Administration (Policy Issue Page VII -15) Doug Maples, Manager of Code Administration and Planning, was available for questions. He introduced two new members; Mary Valladares and Joe Caruso. He also introduced Chuck Heath who is helping out on temporary assignment until the first of the year. There is a recommendation to charge commercial businesses a $20 inspection fee for their annual fire inspections. These fees would help fund the addition of a third inspector position, required in order to perform the inspections. A correction was pointed out for page H -10 of the budget; the information in Fire Alarm Permits should be moved into Fireworks. City Hall Renovation (Policy Issue Page VII -19) There was discussion about the planned improvements to the third and fourth floors. It was clarified that we are a long way from rebuilding but there are funds to keep making progress. There will be the removal of the jail cells and the installation of a fire alarm system for the building. Urban Area Hearing Examiner (Budget Page H -1) There is increased demand due to the annexations. There was discussion regarding timeliness of decisions and appeal costs. It was suggested a policy issue be created to bring the appeal fees in line with those at the County. The remaining items will be deferred to the November 20 meeting. .3 4 2 NOVEMBER 13, 2001 7. ADJOURNMENT MATTSON MOVED AND SIMS SECONDED TO ADJOURN THE MEETING UNTIL TUESDAY, NOVEMBER 20, 2001 AT 8:30 A.M. IN THE COUNCIL CHAMBERS FOR BUDGET REVIEW. The motion carried by unanimous voice vote; Puccinelli absent. The meeting adjourned at 12:00 noon. READ AND CERTIFIED ACCURATE BY: . S o Z___ CO ICIL MEMBER DATE •UNCIL MEMBER DATE ATTEST: /ZA CITY CLERK MARY PLACE, MAYOR Minutes prepared by Karen Roberts and Linda Watkins. An audio and video tape of this meeting are available in the City Clerk's Office