ESTACADA BUDGET COMMITTEE MEETING MINUTES

ESTACADA CITY HALL, COUNCIL CHAMBERS

TUESDAY, MAY 25, 2004 – 6:30 P.M.

1. CALL TO ORDER BY PRESIDING OFFICER – Vice Chair Marli Stauffacer at 6:30pm.

2. ROLL CALL AND APPROVAL OF MAY 11, 2004 BUDGET MINUTES. (Councilors Atkinson and Gavic were absent.) The minutes were approved as presented.

3. BUDGET REVIEW

General Fund –

The Committee discussed the difference between departmental and non-departmental in the General Fund. BO Ealy reported that he would have City Recorder/Finance Director Denise Carey offer a technical definition as part of the Budget notes from this year’s committee.

The Committee stated that in non-departmental (10-02-869) has $2,500 budgeted for the Chamber of Commerce donation, but in the budget message it states $5,000. BO Ealy again stated that he would have Carey offer where the remaining $2,500 was expended from as part of the Budget Notes.

The Committee feels it is difficult to have a meeting without CR Carey present to answer some of the technical questions surrounding budget form and definition of terms, which are more specific than the broader policy and project information BO Ealy presents annually.

BO Ealy responded to questions about the General Funds diminishing cash carry-forward. Several factors, including rising costs of those services provided in the General Fund, continue to reduce reserves- but BO Ealy commented that there are still 60 days of revenues that are not available and the carry-forward may not be quite as low as projected.

BO Ealy discussed the increasing costs of planning, particularly un-billed planning time spent by staff. This factor continues to grow apart, particularly with such a high demand currently for housing and business expansion projects.

The Budget Committee asked for clarification on park improvements (Park Improvement Reserve Fund) due to the fact that the park maintenance line-item for Park Administrative Unit of the General Fund for appeared low. The Reserve Fund has SDC money saved for park improvement projects.

The Committee asked if the lights in the Industrial Park have been turned off. BO Ealy recalled that they had been turned off, but would clarify.

Special Revenue Funds.

BO Ealy reported the projections for the Building, Library and Street Funds. Special mention was given to the Library Fund and its’ reduction in revenues if the Nov. library operating levy fails. The Street Fund remains heavily dependent on transfers in from other funds to balance its’ expenses.

Enterprise Funds.

Questions from the Budget Committee surrounded rising operating expenses versus collections for services in the Water and Sewer funds. The Budget Committee again recommended that incremental increases in utility rates should be pursued by the City Council, as opposed to dramatic rate increases every 5 years. The Committee asked for further clarification on facility maintenance line-items, to be reported as a Budget Note.

Debt Service Funds.

BO Ealy stated that the City will budget for $276,814 in debt service, and that $165,430 of that payment is provided by land owners for local improvement district (LID) payments.

The Committee discussed the projected PERS budget. It was suggested that staff should address the portion of PERS that is currently unresolved in the courts (Oregon Supreme Court is expected to rule in June). The Committee asked that staff (1) research the amount the City would need to budget for if the court reverses the Legislature’s ruling, and (2) staff should prepare a contingency plan for the unfounded liability we would be obligated for if the decision is indeed reversed. BO Ealy will check with the League of Oregon Cities for an official opinion.

Budget Notes.

BO Ealy stated that he would distribute official “Budget Notes” as recommended by the Budget Committee for the purposes of the City Council’s review as well as in preparation for the next budget Committee meeting which was scheduled for early Fall of 2004.

4. MOTION BY KAY NELSON TO APPROVE PROPOSED BUDGET. SECONDED BY SUE CAMPBELL. MOTION PASSED UNANIMOUSLY.

5. MOTION BY PAM BUTCHER TO APPROVE TOTAL AD VALOREM PROPERTY TAXES. SECONDED BY COUNCILOR STAUFFACHER. MOTION PASSED UNANIMOUSLY.

6. ADJOURNMENT

The meeting was adjourned at 8:30 pm.