HomeMy WebLinkAboutCOW 2004-10-25 Item 4H - Budget - 2005 Budget and 2005-2010 Capital Improvement Program (CIP) COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
CAS NUMBER: 04-149 I ORIGINAL AGENDA DATE: 10/25/04
AGENDA ITEM TITLE Review of 2005 Budget and 2005 -2010 CIP
CATEGORY Discussion Motion El Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 10/25/04 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal Pc°R Police PIP'
SPONSOR'S Review the water and sewer sections of the CIP, and the Revenues section of the budget
SUMMARY
REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE:
RECOMMENDATIONS:
SPONSOR /ADMIN. Review budgets
COMMI1 I EE Two committees have started their budget reviews
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
10/25/04
MTG. DATE ATTACHMENTS
10/25/04 Memo from Lucy Lauterbach dated October 20, 2004
Minutes from Finance and Safety Committee (10- 18 -04)
Minutes from Utilities Committee (10- 19 -04)
To: City Council
From: Lucy Lanterbach
Alan DoerscheI
Date: October 20, 2004
Subject: Review of the 2004 Budget and CIP
Two committees have started reviewing the 2005 Budget and Planning Model. Alan began his
overview of the budget and Attachmenl A and B last week. He would like to continue with an
overview and explanation of Attachments D, E, F, and G before the Council gets into specific
budgets.
The Utilities Committee began their review of the Utility CI~S, including Attachments D,E, and
F. They completed reviews of Water and Sewer in the CIP, and can lead the Council in your
review of those sections if you have time.
The Finance and Safety Committee only had time to review the Revenues, which include some
overall city issues that will come up in departments. Bring both your CIP and Budget books, and
depending on the time you have, you may review the CIP sections and the Revenues Section in
the budget at the COW.
Finance and Safety Committee
October 18, 2004
Page 2
6. Budget Review Alan spent some time going over the Revenues with the Committee, as they
included some anomalies that needed explanations. The Committee asked about the Lodging
Tax's payments for the TOD property near McCloud, and Alan explained that they are making
payments of $100,000/year for several years in order to pay offthe loan fi.om the 103 Street fund
they used to buy the property. That way, when the property is sold for less than what it was
bought for, there will not be a huge discrepancy. They'll pay offthe whole thing when the
property is sold. The Mall's $525,000 contribution for Klickitat is shown in 2005. There are
Real Estate Excise Taxes (REET) in the 301 fund that have come in fi.om the sale ofJC Penney's
and Winners. Andy Berg will be paid for his carwash from these funds. Alan pointed out the
Golf Course may need a loan from the general fund in the first few years after construction, as
play has not returned to its former level. Them is revenue from Gordy's who is paying offthe
kitchen equipment. Information.
Committee chair approval
Present: Pam Carter Chair; Pam Linder, Dennis Robertson
Alan Doerschel, Jim Morrow, Frank Lriarte, Bob Giberson, Mike Cusick, Ryan
Larson, Gail Labanara, Pat Brodin, Lucy Lauterbach
1. Budget and CIP Review The Committee began their budget review by going through the
projects in the CIP. Alan explained Attachments D, E, and F which brought forth several issues
in funding over the long term of the enterprise funds. They then went through first the Water
fund. Jim M said the Nisqually earthquake didn't cause obvious damage, but two water pipes in
the CBD got cracks that needed repair within 6 months of the shake. Infrastructure pipes will be
needed, but staff decided after their analysis this year that current rates are adequate. They'll
know more about pipe conditions after 2007. Rates will be looked at each year.
The Committee liked the explanation of which projects on the list were new on the title page of
each utility. They also asked that the term "Enterprise Funds be added on each of the utility
sections, with an explanation of what an enterprise fund is. Jim M said the bids on the
Allentown sewers were high, and they are still analyzing what to do about it. One issue that came
up is the possibility the City may one day annex parts of water districts within the City.
Developments of the Mall and at the JC Penney's site may affect the timing of the Minkler water
looping.
Alan had some new numbers in the Sewer fund Attachment E. Jim talked about the need for a
new sewer worker, though it is not in the budget. He said they have not added new sewer staff
since 1989 and there is much more infrastructure to maintain now. The Committee added a new
note on Page XV to say there are remaining unsewered areas beyond 2010. Dennis said he was
thinking of the Loop area, where sewers could cost $20 m. A $3m. sewer line that may extend s.
orS. 180th is not in the plan yet, though it's mentioned in the Southcenter Parkway street project.
The sewer fund is adequate now but could not handle any unanticipated repairs, TVS sewer
lines, or issues like the higher cost of putting sewers in Allentown. The Committee discussed
planning a rate increase beyond the 15% increase planned in 2006. Dennis argued that planning
for another increase in 2008 was prudent fiscal strategy. Pam C thought more time and
discussion should go into the decision to raise rates. The Committee asked for a matrix of all the
utility rates and expected increases for the next 6 years. A new sewer line and pump station
upgrade will he needed from Minkler to behind Levitz at S. 180th and eventually to S. 200th.
3. Status of Court/Council Chamber Uoerade Jim passed out a sheet with the most basic
information about the upgrade. The committee was very interested in the topic, and asked for the
detail sheet with what would be done by whom. Jim said they had considered putting in both
laptops and flat screens, but found they were too expensive. The Council will have clip
microphones with wireless transmitters. It is still unknown when the project will start.
Information.
Committee chair approval