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HomeMy WebLinkAbout08/04/2009 04A Draft Minutes 07-21-2009 Special Meeting• YAKIMA CITY COUNCIL SPECIAL MEETING JULY 21, 2009 8:00 — 9:45 A.M. COUNCIL CHAMBERS 1. Roil Call 4-A Present Council: Mayor Dave Edler, presiding, Assistant Mayor Micah Cawley, Council Members Maureen Adkison, Kathy Coffey, Rick Ensey, Bill Lover, and Sonia Rodriguez Staff: City Manager Zais, City Clerk Moore 2 Review proposed Yakima City Council Budget Priorities of Government City Manager Zais said that work on the Priorities of Government (POG) • budgeting method began in mid -May through the Council Budget Committee. As well as working on the model and preparing recommendations, the Finance staff also has been pursuing the 2010 budget preparation. They have been monitoring economic budgetary impacts, e.g. declining sales tax revenues and increasing jail costs. The economy is very volatile and will continue to impact the numbers that are. being presented today. Mr. Zais warned that the projections and deficits looming on the horizon are real and that we have a significant challenge ahead of us to accommodate the impacts. Using the Priorities of Govemment model, the City has six budget priorities: • Public Health and Safety, • Resource Management • Economic Development • Quality of Life • Customer Service and Communication • Strategic Partnerships The various City budgets have been grouped into each of the categories. To date, our budget has been set up on service units, typically displayed within a department, e_g_ Police. The POG chart reflects that there are many similar and related objectives of public health & safety that cross departmental lines. This holds true with all of the priorities. The chart reflecting these crossovers-was recommended by the Budget Committee for adoption as our budget priorities. Mr. Zais went on to describe the master POG chart in detail. The chart shows the 2009 adopted budget projected at $58.6 million. It is only the general government, tax-supported services, and it does not include utilities. Sixty seven percent of the budget goes to public safety. Following the logic of resource PRIORITIES OF GOVERNMENT SPECIAL MEETING JULY 21, 2009 allocation without reserves, it clearly shows we have less revenue available compared to costs in the 2009 budget. The numbers are the same no matter which process is used. The POG model only translates the process more clearly, but it doesn't create any more money. He spoke about various contractual expenses, labor contracts, medical inflation, other ongoing payroll obligations, utility increases, and projected jail cost increases. No reserves have been allocated in this budget In the draft 2010 budget, public safety is a little over $42 million. He spoke about strategies being looked at to save money, e.g. in the indigent defense area. The current projection could be a $3.9 to $4.2 million shortfall, or about 6.7% of the general government budget. We are working on how to deal with it. Mr. Zais reviewed the remainder of the charts that portrayed the information in different formats. He spoke about reserves in great detail. He said his proposal is to have the entire reserve amount dedicated to the public health and safety priority, if Council is willing to continue some use of reserves. He also proposes lowering the use of reserves to no more than 3 %. He requested direction from Council on how to allocate resources. He said the final plan will be made into a large dart allowing the public to see the building blocks of the' Council's budget. We have begun, and included in this packet, the process of establishing what would become policies to be framed in a written statement. It needs more study and it will eventually come back to Council for adoption. Mr. Zais said he doesn't think this new method of budgeting undermines the City Manager's authority, but gives the Council and the public a different way of looking at it. Council needs to review and make choices as there will be a need for reductions in services and potential layoffs. That will still be a policy deliberation role that must be carried forward. We want to show the public we are doing all we can to be responsible for the expenditure of tax dollars. The issue of using reserves was again discussed. Mr. Zais gave assurance that the use of reserves to balance the budget is why they were established, as well as being necessary. Making cuts without using the reserves would be onerous on the city as there is no rainy -day fund. We do not want to exhaust the reserves, and our goal is not to use them; but if we cannot avoid it we will be prudent in their use. The goal is to target them to public safety. _ After complimenting the presentation, Council members asked specific questions and for further clarifications to be shown in the chart. Council Member Coffey roamed the Council members that breaking the chart down further could lead to micro management E is PRIORITIES OF GOVERNMENT SPECIAL MEETING. • .JULY 21, 2009 3. Audience Comments Ben Soria, City Council Candidate, complimented the presentation and thanked Council for reviewing the budget process before implementing it He asked if the Council had considered parameters for reduction or would all departments be vulnerable? He expressed fear that we could become totally inefficient across all departments and that some should be protected. CAWLEY MOVED AND ENSEY SECONDED TO ADOPT THE 2090 GENERAL GO ENT MODEL AND MANAGEMENTS RECOMMENDATIONS. The City Manager clarified the motion that it is all inclusive and applies to the modeling, allocation, management recommendations and to the reductions that are being faced. The motion carried by unanimous roll call vote. City Manager Zais advised that staff is working to get a budget package to Count by mid-September to allow more time for deliberations. 4. Adjoeamment CAWLEY MOVED AND ENSEY SECONDED TO ADJOURN TO 92:00 NOON FOR A WORKING LUNCH MEETING WITH THE PARKS AND RECREATION COMMISSION AT THE HARMAN CENTER. The motion carried by unanimous • voice vote_ The meeting adjourned at 9:38 A.M. READ AND CERTIFIED ACCURATE BY COUNCIL MEMBER DATE 11 ATTEST: CITY CLERK COUNCIL MEMBER DATE DAVID EDLER, MAYOR Minutes prepared by Linda Watkins. A CD and DVD of this meeting are available in the City Clerk's Office 3 J