Loading...
HomeMy WebLinkAbout06/16/2009 04A Draft Minutes 05-19-2009 Special Meeting - Study Session• YAKIMA CITY COUNCIL SPECIAL MEETING — STUDY SESSION MAY 19, 2009 8:00 — 9:30 A.M. COUNCIL CHAMBERS — YAKIMA CITY HALL 1. Roll Call 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 and City Clerk Moore 2. City of Yakima's budgeting process City Manager Zais shared that he had spent time with the County auditors discussing the methodologies used by the City and County relating to general differences as well as the different laws. He and the staff attempted to identify the exact differences and similarities and sketched out a table of policies, methodologies, and practices for comparison in order to develop the process. Mr. Zais described the material provided in the packet focusing on a side -by -side comparison of the City and County development processes and a chart of General Government activities designating existing service units (cost centers) related to each of the Council's strategic priorities. Budget preparation has always been based on the Council's priorities, but the goal now is to involve Council members earlier and let them help with how the budget is formulated. Coming out of this discussion could possibly be a more formalized budget development policy; having the budget developed through staff, then involving the Budget Committee, following which it would proceed to the full Council. Mr. Zais said we now need to affirm or modify the allocation of service units that staff guessed at. The Budget Committee could help ensure the right choices were made. We would then determine the timing and at what level the Council wishes to set the priorities. They could be the headings across the top of the page, or it may be necessary for Council to prioritize the service units within each strategic budget priority. Council Member Coffey commented that the Council doesn't want to get into micro - management but only to set the top priorities. The department heads and management should set the rest. In response to a concern expressed by Assistant Mayor Cawley that the 2009 budget adopted may not be sustainable, City Manager Zais referred to a publication recently put out by the Association of Washington Cities; `The Fiscal Status of Communities in the state of Washington." It contained quote after quote about the stress on our cities with respect to the pressures we face on mandated costs plus additional stresses with which revenues are not keeping pace. He said that sustainability has to do with the long -term capacity of the City's existing revenue stream, or growth that might occur, as opposed to adding new taxes. What is the current tax climate and STUDY SESSION — BUDGETING PROCESS . M" 19, 2009 what does it look like for the future? The continuing flow of revenues as they exist a today, are either capped under state law or are limited in terms of what you can address at this level, and they are not keeping pace with expenses that are mandated or set up under state law. He stated there is not sustainable income to keep up with the infrastructure for streets and utilities. We know there will be a gap each year and we have to find a way to fill that gap and still maintain essential services. With that kind of pressure from the economy, we continue to have to make choices. Assistant Mayor Cawley expressed the desire to have a method that paints a picture of reality that can be shown to the public as to why we don't have money to fix our streets. Council Member Lover questioned the budget related to salaries and benefits and asked how much is necessary to pay for annual increases. City Manager Zais responded that a 1 % increase of pay and benefits for all employee groups is close to half a million dollars. During further discussion, it was confirmed that the narratives supplied with the budget each year would continue. Identifying what are mandated costs was requested to be included. Council Member Rodriguez commented that what is important about th is information is that, even though the resources aren't meeting the increase in costs, we are not cutting the services but are trying to absorb them. City Manager Zais confirmed that we are doing so to the degree that we can using the recent budget reduction process we have gone through as an example. He said we will be starting the 2010 budget process soon, and it will be difficult to continue to provide current services and meet new mandates with revenues that are not growing. Although we have been able to minimize the impacts, it is getting more difficult to do so. Council Member Ensey complimented the material and agreed that the Council does not need to get involved below the first level as that would be the job of the department heads and city manager. Council Member Lover agreed and pointed out that the City Charter limits Council from micro-managing. Mayor Edler commented that we've taken our mission and vision statements and tried to pull priorities out of them. He felt those are not clear, for example, where are streets in the priorities? He emphasized the need to be more specific in declaring the priorities and mentioned the need to generate more revenue for Fire. Their budget is 94% labor and, even if we were to freeze them at their current level, they would not be able to cover their increase in labor costs. That could result in lay -offs. His concern is that we may pigeonhole ourselves into a place where we'have to do things we don't want to do because we have constrained the City Manager and his budget team with regard to those type of decisions. A discussion ensued between various Council members during which Council Member Lover stated they were getting into a level that was micro-managing. He reiterated that the Council should set priorities, turn the budget over to staff to develop, and then it would come to the Council for review and adoption. Discussion then went into areas where clarification and prioritization from Council would be helpful. Council Member Lover restated a question he has asked on a number of occasions; can we use stormwater money to fund street maintenance? The City manager said they would look into that but that he was unsure there are sufficient resources in the stormwater budget to ball. 2 r� • STUDY SESSION — BUDGETING PROCESS MAY 19, 2009 CAWLEY MOVED AND COFFEY SECONDED TO FORWARD THIS INFORMATION TO THE BUDGET COMMITTEE TO BE BROUGHT BACK TO THE FULL COUNCIL FOR RECOMMENDATION. The motion carried by unanimous voice vote. Council. Member Rodriguez requested direction on vacancies on the various Council committees, especially the Budget Committee. 3. Audience comments No one came forward to speak. 4. Adjournment CAWLEY MOVED AND ENSEY SECONDED TO ADJOURN TO EXECUTIVE SESSION AT 5:00 P.M. TO DISCUSS PENDING LITIGATION. The motion carved by unanimous voice vote. The meeting adjourned at 9:28 a.m. READ AND CERTIFIED ACCURATE BY COUNCIL MEMBER DATE COUNCIL MEMBER DATE ATTEST: CITY CLERK DAVID EDLER, MAYOR Minutes prepared by Linda Watkins. A DVD of this meeting is available in the City Clerk's Office. 3