HomeMy WebLinkAbout10-27-2003 - MinutesMEDINA CITY COUNCIL
STUDY SESSION MINUTES
October 27, 2003 Medina City Hall
6:00 PM 501 Evergreen Point Road
Mayor Becker called the Council Study Session to order at 6:02 p.m.
ROLL CALL
Present: Council members Miles Adam, Drew Blazey, Thomas Morgan, Todd Nunn, Bob Rudolph, and
Mayor Dan Becker
Absent: Deputy Mayor Odermat
Staff Present. City Manager Doug Schulze, City Attorney Kirk Wines, Public Works Director (PWD) Shel Jahn,
Planning Consultant Joseph Gellings, and Recording Secretary Caroll Wedlund
Absent: Police Chief Michael Knapp
ANNOUNCEMENTS
Mayor Becker there would be an Executive Session following tonight's Study Session following tonight's
meeting to discuss personnel issues, per RCW 42.30.110(g).
OTHER BUSINESS
Discussion of 2004 Budget Goals — City Manager Schulze referred to the 2004 preliminary budget, noting it
would require cuts or additional revenues of approximately $540,000 to avoid spending down reserves. He
relayed the budget figure did not include reserves set up as a sinkirg fund, the park debt, the tree fund, or
equipment replacement. He had also excluded SR-50 and jet noise moues, as the Council may wish to address
these as policy issues. In addition to the budget, he had provided the following items to facilitate Council
discussion and to assist them in the decision -making process:
a. Memo and supporting data regarding utility taxes;
b. Memo and supporting data regarding discretionary and non -discretionary expenditures
c. List of services -related issues to be considered, and
d. Memo and response to budget questions submitted by Council member Morgan on October 20, 2003.
City Manager Schulze dispersed a sheet showing 2004 preliminary expenditures for all funds, noting the column
titled "2004 Optional" assumed implementation of the average of King County cities utility tax rate and storm
water tax fee. Most cities in King County that had implemented storm water utilities charged $10-$12 per month.
He suggested the city could loan money to itself at a 3 percent rate, thereby paying itself that rate of interest or
more and be financially ahead. City Manager Schulze explained the current budget showed use of reserves
before any cuts were made. The second sheet City Manager Schulze distributed was a comparison of municipal
taxes paid by different city employees whose homes were in Bothell, Issaquah, Redmond and Renton. He gave
several examples of how other cities charged more for property taxes than Medina.
City Manager Schulze explained the largest area to cut was with the staffing changes that had been proposed,
thereby reducing $200,000 annually from the budget. It would also allow changes in permit revenue services, as
the Town of Hunts Point had expressed interest in a contact with Medina for review and permitting services.
This would be a minimal workload and would generate potentially $50,000 to $100,000 of additional revenue.
City Manager Schulze continued with the heavy rain a couple of weeks ago, there were a number of storm water
problems which should be addressed. He noted a Medina resident, who was present this evening, had been
significantly impacted by the storm water. Medina should not have water from the streets flowing into a
resident's front door. He emphasized long range plans were needed, ;and the city must approach the problem
with a strategic plan and best management plan financial policies. City Manager Schulze concluded the Council
should also consider the level of service the residents expected.
City Manager Schulze indicated it would help slightly with the deficit if t-ie city were able to recover $200,000 to
$300,000 in user fees. No one knew how many variance applications the city would receive. If the activity level
remained fairly stable based on the last five-year average, he could project $75,000 to $125,000 annually. He
relayed a significant percentage was passed through once one got through the permit threshold. However, the
$50 right-of-way permit cost was actually two to three times that amount, and the city received in the range of 75
to 90 right-of-way permits a year. Additionally, a lot of staff time for support services and overhead for facility
and utility costs should be taken into consideration. He suggested the city could narrow that gap anywhere from
one half to a third, unless the Council wanted to go above a typical fee. He continued the reason the city was
City Council Study Session Minutes
October 27, 2003
Page 2
not presently charging more was when the fee schedule had been submitted a couple of years ago, the Council
had not approved it. A Council member emphasized the city should not be subsidizing services. City Manager
Schulze continued the city was probably recouping 100 percent of the flat building permit costs. It was the other
activities associated with building permits that were being subsidized. He gave an example of false complaints
regarding homeowner zone violations, noting the person consistently making an unsubstantiated complaint
should pay. There had been prior discussion about all fees associated with a development being passed along
to the developer. The cost could be recovered with increased fees. Further, there was a significant amount of
service provided that was general in nature, for example, real estate agents doing research for a potential sale.
City Manager Schulze suggested a variance applicant should pay 100 percent of the cost. Some people wanted
to process five to six variances per application, and the cost was the same whether it was just one or multiple
variances simultaneously. City Manager Schulze indicated he had gone through the Code and identified every
fee as well as concealed weapons permits, and had listed each fee and the amount charged by the Code. He
promised to provide this at the November Study Session or December meeting, along with the recommended
adjustments. City Manager Schulze suggested the proposed fee schedule changes could make up to 5100,000
and could be annually updated.
Council member Adam distributed a handwritten proposed budget change from the 2004 preliminary budget,
and stated as the keepers of the city purse, the Council should commit to reducing expenditures before making
a decision regarding taxes. A Council member relayed the reserve fund had dropped S1 million. The city was
now playing catch up with capital improvement projects that had been delayed. Further, the City Manager had
brought the budget in on target. Another Council member commerted the more the Council balanced total
spending every year to total revenues, the better off the city would be, but the budget must be trimmed. City
Manager Schulze relayed the best way to trim expenses was with additional staff to replace consultants. In
response to Council member Rudolph's query whether that could be clone with the current facility, City Manager
Schulze's recommendation based upon the options available was to convert the Council chambers into four
different offices, which also made the most sense in terms of efficiency. However, such action would require
Council and other public meetings to be held at another facility. The council chambers were also used for staff
meetings and conferences. He added more citizens came to City Hall during the day than to attend public
meetings. Following further discussion, the Council requested the City Manager to explore the alternate options
and to submit a proposal.
City Manager Schulze continued he had polled about 20 people in the past couple of weeks and explained the
revenue shortfall issue, the 5750,000 expenditures over revenue issue and the three options of the use of
reserves, diversifying the revenue sources, and cutting spending. Approximately 75 percent of those polled had
suggested a combination of the three options. He noted this group of citizens was a pretty good representation
of the community. It was requested the City Manager furnish suggested priorities.
City Manager Schulze referred to his 2004 optional budget figures, rioting the city would not realize the entire
savings in the first year. However, with staffing changes and some cu:s in the discretionary expenditures he had
identified, $200,000 in the general fund could be found without impacting the service level to the point it would
be significantly noticeable to the community. The city could find some reductions in the street fund, but that
would mean deferring maintenance, resulting in more costs in the futu-e. The same held true for capital projects.
PWD Jahn explained the PW 2004 budget proposal, noting there were also items needing attention that were
not currently in the budget. He identified a few small works projects that were probably only part of the small
works projects which had been deferred. PWD Jahn provided colored pictures to the Council as examples of
some of the small works projects that had been neglected, such as sidewalks that were extremely unsafe as
well as old, cracked overlay throughout the city.
David Powell, 8450 NE 9`h, referred to number 9 on the deferred maintenance small projects list, Drainage
Project in NE 91h Street Cul-de-sac. He noted the surface water was draining across the cul-de-sac, down his
driveway and to his front door. However, the water did not come into his home, due to the 15 sandbags
furnished by the city. He had been requesting a storm drain for two years, and stressed this amounted to
deferred maintenance. PWD Jahn explained the water would shoot off the cul-de-sac area that should be
collected by a storm water system that instead ran off the street onto Mr. Powell's property.
City Council Study Session Minutes
October 27, 2003
Page 3
Council member Adam proposed a spending reduction of S400,000 from expenses and taking S345,000 out of
reserves. City Manager Schulze stated he could present that information to the Council at the November
meeting. He cautioned the Council had one more regular meeting plus a Study Session to make a decision. The
November meeting would be the Council's last opportunity to adopt ar ordinance establishing the 2004 property
tax. He also noted it could take two to three months to implement a utility tax. Following further discussion, the
Council by consensus requested a $400,000 expenditure reduction in :he 2004 budget, as well as the following:
a. Identify revenue options by priority
b. Provide cost estimates for off -site staff space
C. Provide cost estimates for off -site meeting space
d. Identify temporary options for staffing changes
Discussion of Zoning Code Housekeeping Amendments — Ma or Becker suggested the Council defer
discussion of Zoning Code Housekeeping Amendments to the December Council meeting. A Council member
clarified he had never had a problem leaving discretion to staff, and requested further discussion of discretionary
authority in the next Planning staff report. Planning Consultant Gellings promised to do so. By consensus, the
Council tabled discussion of Zoning Code Housekeeping Amendments to the December Council meeting.
Discussion of Study Session Meeting Times —Mayor Becker recommended the Council postpone discussion
of Study Session meeting times to the November Study Session, and the Council by consensus decided to do
so
POINT OF ORDER
Per RCW 42.30.110(g), the Council by consensus adjourned into Executive Session to discuss personnel
issues at 7:40 p.m., and reconvened at 8:10 p.m.
ADJOURNMENT
Council member Blazey moved, seconded by Council member Adam, to adjourn the meeting at 8:10 p.m., and
the motion carried unanimously.
Daniel Becker, Mayor
Attest:
Caroll P. Wedlund, Recording Secretary