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.
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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