CITY OF SHORELINE

SHORELINE CITY COUNCIL

Summary Minutes of 2000 Annual Planning and Budget Retreat

Friday, August 20, 1999

5:00 p.m.

Edmonds Floral Centre

201 Fourth Avenue N, Edmonds, WA

PRESENT: Mayor Jepsen, Deputy Mayor Montgomery, Councilmembers Gustafson, Hansen, King, Lee and Ransom

ABSENT: None

STAFF: Robert Deis, City Manager; Larry Bauman, Assistant City Manager; Joe Meneghini, Finance Director; John Hawley, Senior Budget Analyst; Kristoff Bauer, Assistant to the City Manager; Eric Swansen, Management Analyst, Tim Stewart, Planning and Development Services Director; Wendy Barry, Parks, Recreation and Cultural Services Director; Bill Conner, Public Works Director; Steve Oleson, Budget Analyst; Mike Gillespie, City Engineer; and Rob Beem, Health and Human Services Manager.

The meeting was called to order at 5:20 p.m. All Councilmembers were present.

1. Budget Retreat Memo

Robert Deis, City Manager, reviewed the agenda for the retreat, noting that this year the annual budget retreat and the annual goal-setting retreat have been combined.

2. Update 1999-2000 Workplan Progress

• Develop and adopt new codes that implement the policies of the Comprehensive Plan

Tim Stewart, Planning and Development Services Director, reported on progress made regarding this goal and the work needed to complete the balance of the plan. Council discussed aspects of the work underway to complete the City’s Development Code.

• Create and implement an aggressive economic development effort

Mr. Stewart described the overall approach of staff in developing the City’s economy. Council discussed specific elements of the staff’s economic development efforts on properties throughout the City.

• Determine which City services to provide

Mr. Deis explained that this goal will be discussed in detail during Saturday’s session of the retreat.

• Define City’s role in supporting youth vis-à-vis other providers

Rob Beem, Health and Human Services Manager, explained the work plan for completing this goal, noting a report will be coming back to Council in January 2000. Council discussed elements and impacts of the City’s decisions about roles for specific programs and services.

• Advance CIP, Aurora Predesign, and Interurban Trail

Mike Gillespie, City Engineer, described recent progress, next steps and the status of several key elements of the City’s Capital Improvement Program: Aurora Corridor, Interurban Trail, drainage projects at Ronald Bog and 3^rd Ave. NW; and the Parks Master Plans. Council asked questions about funding sources and timelines for specific projects. Grant opportunities were discussed.

• Continue to strengthen intergovernmental relations

Mr. Deis provided a brief update on continuing activities to enhance relationships with various governmental partners, and Mayor Jepsen also described efforts in which he is directly involved.

• Develop a subarea plan for North City

Mr. Stewart described current plans to facilitate a more detailed subarea plan for North City, including both commercial and adjacent residential areas. Council expressed interest and support for the design plans and scope of the project.

• Develop a code enforcement program reflective of City values

Referring back to the July 19 workshop on this topic, Mr. Stewart said that staff is now in the process of developing the program option supported by Council. He also described the concept of developing a revolving abatement fund.

Mayor Jepsen suggested that Community Development Block Grant funding be included for possible use to improve housing and commercial properties.

• Accelerate City Hall planning

Mr. Deis explained the current schedule in working with other public entities to determine interest in developing a joint space needs study for facilities.

3. Overview of the City’s Financial Position

• 1999 Year-End Projections

Mr. Deis provided an overview of 1999 year-end projects for revenues and expenditures. He explained the reduced size of the 1999 ending fund balance and the sources of revenues that have caused lower ending balances for this year.

• 2000 Preliminary Revenue Forecast

Joe Meneghini, Finance Director, reported on the year 2000 revenue and carryover forecast. Answering questions from Council, he explained legal limits on the growth of property tax revenues.

• Gambling Tax Issues

Mr. Deis explained the volatility of gambling tax revenues and the fact that the State legislature has the power to restrict the taxing authority of cities. Council discussed various options for allocating expenditures of revenues.

• Preliminary Review of Additional 2000 Funds for Existing and Emerging Issues

John Hawley, Senior Budget Analyst, explained assumptions of funds applied for expenditures in the year 2000. Based on these assumptions, there will be approximately $408,000 in additional revenues to be used for emerging issues within the budget. Revenues in excess of this level and the addition of the beginning fund balance would allow a transfer of approximately $4 million for one-time investments or to the Capital Fund.

4. Existing and Emerging Issues Affecting 2000

Mr. Deis detailed the emerging issues that could impact the budget for one-time or ongoing expenditures.

Mr. Hawley explained Development Services cost recovery issues and what level of permit fee adjustment would be needed to achieve Council’s 80-percent cost recovery objective. Council discussed whether code preparation and amendment costs should be included in the total expenditure used as a basis for the calculation of the 80-percent recovery rate. There was consensus to target 80 percent of direct development-related activities only.

Steve Oleson, Budget Analyst, discussed parks user fees and pricing policy.

Wendy Barry, Parks, Recreation and Cultural Services Director, explained that a formal parks user fee policy discussion will be brought to Council following review by the Parks, Recreation and Cultural Services Advisory Committee.

Mr. Deis presented the issues related to establishing a reserve for insurance risk—to pay for claims where no coverage exists from the insurance carrier, Washington Cities Insurance Authority.

Staff briefly discussed emerging issues related to utilities, parks maintenance, public works development, and funding for outside organizations.

5. Council’s Input on Emerging Issues

Council identified additional emerging issues, including:

• partnering with the School District on a retention pond needed for future development of recreational facilities at the Shoreline Center;
• additional land acquisition for Paramount Park;
• additional capital projects
  • greenway trails and open spaces linking City parks;
  • Echo Lake park property acquisition;
  • North City property owned by Seattle City Light at 185^th St. and 10^th Ave. NE;
• North City improvements
• economic development incentive capital fund.

There was consensus to continue discussion of this item in the morning.

6. Adjournment

The meeting adjourned at 10:00 p.m.

Saturday, August 21, 1999

8:00 a.m.

Edmonds Floral Centre

201 Fourth Avenue N, Edmonds, WA

PRESENT: Mayor Jepsen, Deputy Mayor Montgomery, Councilmembers Gustafson, Hansen, King, Lee and Ransom

ABSENT: None

STAFF: Robert Deis, City Manager; Larry Bauman, Assistant City Manager; Joe Meneghini, Finance Director; John Hawley, Senior Budget Analyst; Kristoff Bauer, Assistant to the City Manager; Eric Swansen, Management Analyst; Bill Conner, Public Works Director; Wendy Barry, Parks, Recreation and Cultural Services Director; and Steve Oleson, Budget Analyst

The meeting reconvened at 8:10 a.m. Councilmember Lee arrived at 8:25 a.m. and Councilmember Ransom at 9:40 a.m.

5. Council’s Input on Emerging Issues (con’t)

The Council added to its list of emerging issues:

• expansion of the Shoreline Pool and parking;
• a second gymnasium (multi-purpose community and recreation center) at Shoreline Center;
• Community and Government Relations or Customer Response Team (CRT) outreach within ethnic communities
• develop and equip a video studio at Shoreline Center;
• donations programs
  • public arts programs
  • other (land, etc.)
• emergency preparedness
• Water District

1. Initiative 695 - Issues and Impacts

Mr. Hawley described the projected impacts to the City’s budget for years 2000 and 2001 if I-695 is approved by voters on November 2^nd.

Mr. Deis explained that State legislative responses to tax initiatives of this sort in California and Oregon did not provide thorough and early relief for cities that lost substantial amounts of funding.

Councilmember Hansen raised a number of questions and made comments about how the initiative would be implemented if approved.

Mr. Oleson reviewed potential additional revenues that could offset losses if I-695 is approved.

Mr. Meneghini described examples of potential reductions that may be used for departmental services and programs if I-695 is approved.

Mr. Deis summarized the impacts to the City’s service level if cutbacks are required in response to I-695. He also discussed revenue options for year 2000. A budget will be developed that will assume that I-695 does not pass, since it must be submitted to Council prior to the election. However, that budget will also identify potential cutbacks if the initiative is approved.

Council discussed options for revenues and expenditures for the 2000 budget.

2. Criteria for 2000 Budget Decision-Making

Mr. Deis reviewed the criteria used for the 2000 proposed budget. He also reviewed criteria for making cuts that may be needed to respond to revenue losses if I-695 passes. Council discussed the criteria and how they would be applied in making reductions to existing services.

3. Municipal Services Strategic Plan

Mr. Deis introduced the project staff developed in creating an analytical framework for determining what roles the City should or should not fill in providing services in the community. The concept involves running a comprehensive list of potential services through a rigorous list of criteria.

Council discussed potential involvement of the Council of Neighborhoods in reviewing the strategic plan.

4. Review and Refine the Workplan for 1999-2000 and Identify Budget Implications

Mr. Deis asked if Council wanted to make any changes to its existing workplan. Council discussed an interest in looking at various CIP opportunity projects for parks, economic development, etc.

5. Debrief 1999 Budget Process/Develop Review and Approval Process for 2000

Mr. Meneghini reviewed last year’s process and asked for Council direction on how many workshops may be needed this year. Council expressed satisfaction with the basic process used for the 1999 budget adoption. There was consensus to schedule three workshops and to see if the review can be completed in two.

6. Adjournment

The meeting was adjourned at 12:50 p.m.

________________________________
Larry Bauman
Assistant City Manager