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HomeMy WebLinkAbout12-18-2000 - MinutesMEDINA CITY COUNCIL PUBLIC HEARING CONTINUATION MEETING MINUTES December 18, 2000 Medina City Hall 5:00 PM 501 Evergreen Point Rd. CALL TO ORDER Mayor Becker called the special meeting of the Medina City Council to order at 5:00 p.m. The meeting was recorded on audiotape. ROLL CALL Present: Council Members Paul Demitriades, Suzanne Cohen, Jim Lawrence, Mary Odermat, Steve Preston and Mayor Dan Becker Absent: Council Member Morgan Staff Present: City Manager Doug Schulze, City Attorney Kirk Wines, Police Chief Michael Knapp, Planning Director Jenny Schultz, Finance Officer Jan Burdue, and Interim City Clerk Caroll Wedlund DISCUSSION 2001 PROPOSED BUDGET ring Meeting for consideration of the proposed 2001 Mayor Becker opened the Continuation Public Hea budget. Miles Adam 8424 NE 10th Street Medina Mr. Adam congratulated everyone regarding the excellent level of service provided by the City. He noted that residents were very fortunate to receive such a high caliber of service. Mr. Adam indicated that over the past two years, everyone had been blessed with low inflation, and he would like to think that the budget reflected that level. Mr. Adam stated that the population had remained the same, which would also suggest small increases in expenditures. He suggested that the Council reconsider some of its expenditure levels, and was not convinced that an increase of the size suggested in the 2001 proposed budget was best for the City. He stressed that the City of Clyde Hill had been able to reduce their tax rate by ten percent, but the Medina Council had chosen to leave it at the same rate. Mayor Becker responded that Medina had increased the caliber of its Police Department and the number of officers, and that this action was reflected in the budget. Mr. Adam indicated that approximately 40 percent of the increase related to these upgrades within the Police Department. He continued that the other part the Council should review was the cost for Medina's Building Official and the people he had brought on board. Mayor Becker stated that user fees paid for this, and that component should be removed from the budget. He emphasized that Medina had higher expenditures, but they also had higher revenues as an offset. Mayor Becker continued that there had been a lot of service delivered by City Hall staff, yet at the same time there were not any building and planning increases in the budget. City Manager Schulze explained that to make a comparison of where the budget should be in contrast with the population was difficult. He pointed out that there was conflict with permit activities in general. City Manager Schulze continued that in 1998 the City had processed 192 permits, and in 2000 there were 550 permits, basically with the staff level as in 1998. City Manager Schulze emphasized that the City could not continue to operate and meet both the legal and the review requirements that were expected that much of an increase in the number of permits processed. City Council Meeting December 18, 2000 Page 2 Council Member Preston interjected that not all revenue was in the budget, and that the Council would be making budget adjustments. City Manager Schulze continued that the Clyde Hill reduction in the property tax was a good point. He noted that Clyde Hill residents paid utility tax on gas, telephone, water and sewer, and that Medina residents did not pay six percent of their bill for these services. City Manager Schulze emphasized that this constituted about $250,000 per year in taxes. Mayor Becker added that one of the Council's goals for the year was to review the City's annual expenses for the next five years and its revenues over that period to make sure that there was a balanced budget. He added that any surpluses would be put into capital projects or future reductions. Art Dietrich 707 Overlake Drive Medina Mr. Dietrich was delighted to see someone else scrutinizing the budget. He was encouraged by how efficiently the staff was doing their job, but was also appalled that Medina had 25 staff. He was also dismayed that it took three weeks to resolve a tree problem. ding fund indicated that the plan Council Member Lawrencehad showed anout the year endingfund bala0ncenof $2.6 million, and e on December 6, 2000 and he thought it would tart a bit higher than that at the beginning of 2001. City Manager Schulze stated that the City was anticipating sales tax revenues of $60,000 to $75,000 during the month of December. He continued that the City of Bellevue payment for NE 24th Street and for Overlake would be somewhere in the $300,000 to $400,000 range. City Manager Schulze referred those present to the first two pages of the November 2000 revenue report, indicating that most of the line items received 100 percent of projected revenue for the year. City Manager Schulze explained that the City typically collected 95 to 98 percent of what was levied. City Manager Schulze noted that sales taxes were dependent upon retail sales, and he did not anticipate a big change. Council Members Lawrence and Preston expressed concern about the cash decrease during the current year. Mayor Becker explained that there had been a couple of deferred capital expenditure projects this year for which the cash had been accumulated during the previous year. He continued that after the beginning of 2001, the Council would discuss the current levels of expenditures and revenues. Mayor Becker stated that the Council might determine that it wished to take a different course of action after the first of the year. He continued that the Council needed to pass the budget and that they could discuss projections in relationship to the current level of revenues and expenditures in the early new year. Council Member Demitriades announced that the Council must pass a budget tonight that overstated the expenses. Council Member Lawrence interjected that it was in balance according to government accounting. Council Member Demitriades continued that the budget overstated the expenses because the City had not recognized all of the revenues from the service fees and reimbursement from the City of Bellevue. He proposed that the Council could revisit the budget after they had determined the potential service fee revenue increases. Council Member Demitriades stated that the Council should pass the projected budget; however, he believed that the potential revenue to be recognized in January or February could result in budget revision if the revenue did not meet some expenditure items at that time. Mayor Becker added that the Council had also taken into account some added expenditures for litigation of two major projects, emergency preparedness, and the Endangered Species Act risk analysis. He noted that the budget was being increased by $125,000 this year over last year for those projects alone, and the City was spending $275,000 for projects that could not be recouped but nevertheless affected the community, such as tree preservation, 1-520, jet noise and the Utilities Conversion Master Plan. Council Member Demitriades concurred, adding that the City was faced with some one-time expenditures. Mayor Becker stated that the discussion for next year was whether or not the fees charged by the City were appropriate for the expenditure levels it had incurred. He continued that the Council would review an City Council Meeting December 18, 2000 Page 3 increase in revenues to counterbalance expenses. Mayor Becker also noted that it made sense to deal with the code enforcement position as a future expenditure to be offset by increased building fees. City Manager Schulze interjected that the budget projected an ending fund balance in the general fund of zero. He added the City had an ending fund balance of $1.9 million, which was essentially a combination of surplus revenues and expenditures falling below the budget allocation. He continued that this had been the scenario for the past five years. However, five to ten years ago, the City experienced ending fund balances of below or at $1 million total, including reserve funds of approximately $300,000 to $400,000. City Manager Schulze emphasized that the City was much better off than the budget plan had predicted. Mayor Becker explained that Medina did not fund capital projects with special bonds or levies as did other cities. Council Member Demitriades added that the City had maintained the same tax rate, it had generated a larger surplus, and was able to complete capital projects out of its operating budget that were generally bond issues in other cities. Mayor Becker asked the City Manager if there was any flexibility in the costs associated with the ESA risk analysis, the tree preservation inventory and the Utilities Conversion Master Plan. City Manager Schulze responded that it had been trimmed from an original amount of $300,000 to $75,000. Mayor Becker asked about the tree preservation inventory. City Planning Director Schultz replied that there had been discussion of combining the tree preservation inventory with other required studies in the future. Council Member Cohen stated the tree preservation inventory could definitely be postponed. Council Member Demitriades concurred, indicating that there was a three-year window in which this inventory could be deferred. City Manager Schulze commented that the Utilities Conversion Master Plan figures on page 32 of the 2001 proposed budget had resulted from a recommendation of the Undergrounding Utilities Committee. Council Member Preston suggested that the Council propose an LID. City Manager Schulze responded that if a neighborhood wished to have an LID, the City would have a plan in place via the Utilities Conversion Master Plan to complete sections of it. City Manager Schulze distributed a copy of the Building/Planning Services Cost Analysis, noting that some of the total costs were quite large. He pointed out that the second sheet did not include the hearing examiner costs, as it was assumed they would be a pass through for the City. City Manager Schulze showed the proposed fee for each permit type and the proposed total annual revenue increase, assuming the activity level remained at its present pace. City Manager Schulze indicated that with the proposed Code Administrator, fines and penalties would be imposed for those not in compliance. Council Member Demitriades suggested that the Council accept the 2001 proposed budget, including building and planning expenses, with the provision of further review next month. Mayor Becker emphasized that the Council should be reviewing expenditures as they related to code enforcement and possible revenue increases due to increased building fees. Council Member Demitriades stated that he wished to pass the budget as presented at this meeting. City Manager Schulze added that any new positions included in the budget would require the Council to specifically approve each one. He pointed out that the Council could pass the budget and amend the revenue and expenses as they related to the Building Department. Council Member Lawrence agreed with Council Member Demitriades, adding that he was not happy with the numbers. Mayor Becker explained that the last item on the list for this meeting was to develop a long-range five-year financial plan, projecting operations, on -going staff positions and services. He suggested that the Finance Committee might wish to review what the City was offering as core services, projected over five years. He suggested that the staffing levels were another area for Finance Committee review, so that the Council _ would not be in a time crunch during November and December. Mayor Becker predicted that the City would not experience the same level of construction or development in the future. He added that within the industry, capital expenditures were beginning to decrease, and the Council should pay attention to this trend for projection purposes. City Council Meeting December 18, 2000 Page 4 Council Members Preston and Odermat concurred with Council Member Demitriades' recommendation to pass the budget as presented at this meeting. Council Member Odermat also suggested the Finance Committee should meet with the City Manager with their questions and concerns prior to the next Council meeting. e about Council Member Demitriades agreed Cilwith Mayor w t Brevenuethat projectionseconomic a very conservat ve manner, to Council change. He suggested that the proceed Mayor Becker indicated that any applications for a variance were still being processed at the current rate. Council Member Lawrence stated that in the interest of time, the fees could be established at a later date. City Attorney Kirk Wines promised that an ordinance establishing hearing examiner fees would be ready for the January 8, 2001 Council meeting. OTHER BUSINESS ORDINANCE NO. 700 — AN ORDINANCE TO ADOPT THE 2001 BUDGET Council Member Demitriades moved, seconded by Council Member Odermat, to adopt Ordinance No. 700 as written. The motion passed unanimously. ORDINANCE NO. 702 — AN ORDINANCE AMENDING ORDINANCE NO. 680 2000 BUDGET FOR THE CITY OF MEDINA Ordinance No. 702 as Council Member Odermat, seconded by Council Member Demitriades, to approve written. The motion carried unanimously. ORDINANCE NO. 703 — AN ORDINANCE CERTIFYING TO THE GOVERNING AUTHORITY OF KING COUNTY THE ESTIMATES ASSEESEFTHE VA UATI ON OF HE PROPERTOUNT TO. BE RAISED BY IN THETION FOR THE YEAR 2001 ON CIITY AS REQUIRED BY R W THE ESTIMATED ASSES 84.52.020 Council Member Cohen moved, seconded by Council Member Demitriades, to adopt Ordinance No. 703 as submitted. The motion passed unanimously. RESOLUTION NO. 274 — DESIGNATING BUILDINGS OF HISTORICAL SIGNIFICANCE IN THE CITY OF MEDINA City Manager Schulze indicated that he had talked with Mrs. Lee today, and that she would like to meet with members of the Council sometime during the current week for an informal discussion. City Attorney Wines did not think such a meeting would fall under the Public Meetings Act if it were a meeting with a Council committee. However, it would have to be presented to the full Council before any decisions could be made. Mayor Becker stated that potential property acquisition was generally discussed in executive session. He wanted to ensure that the Council was in strict compliance with state regulations. City Attorney Wines was of the opinion that legally, it would be permissible to meet with Mrs. Lee. However, he cautioned that there could be citizens who might get the wrong perception. He continued that a meeting held on any night other than a regularly scheduled Council meeting would require notice to the media as well as public notification. Council Member Odermat suggested that the Mayor, the City Attorney and the Planning Director meet with Mrs. Lee, and circulate a memo afterwards to the Council. In this way, Mrs. Lee could be granted a forum. Council Member Odermat added that she was uncomfortable with the City only placing one piece of private property on the land preservation list. She emphasized that there should also be other parcels included in this list. Council Member Odermat also suggested that the Council should meet in executive session regarding this issue. Council Member Demitriades suggested that the Council also consider the clock tower property for the land preservation list. Council Member Odermat agreed, adding that it had historical significance, and was a beautiful parcel. City Council Meeting December 18, 2000 Page 5 NEW BUSINESS CITY MANAGER PERFORMANCE EVALUATION Council Member Demitriades reminded the Council on behalf of the Personnel Committee that they owed the City Manager a performance evaluation for the year 2000. He proposed that each Council member complete an evaluation form, and on behalf of the Council, the Personnel Committee would in turn meet with the City Manager. City Manager Schulze responded that he would furnish the performance evaluation form to all Council members. Council Member Demitriades promised that the Personnel Committee would schedule a meeting with the City Manager in January of 2001. ADJOURNMENT Council Member Cohen moved to adjourn the Continuation Public Hearing Council meeting, seconded by Council Member Demitriades. All were in favor, and the meeting was adjourned at 6:36 p.m. Dani W. Becker, Mayor Attest: v Caroll P. Wedlund, Interim City Clerk