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Approved Minutes - 2009-05-04 OE LAKE°sip, /W CITY OF LAKE OSWEGO CITIZENS' BUDGET COMMITTEE MINUTES May 4, 2009 Proposed FY 2009-2010 Budget OREGON Chair Ron Smith called the meeting to order on May 4, 2009 at 6:37p.m. in the Santiam Room of the West End Building, 4101 Kruse Way, Lake Oswego, Oregon. Members present: Jack Hoffman, Mayor Ron Smith, Chair Donna Jordan, Council President Katherine Shallenberger, Vice Chair Kristen Johnson Frank Bearden Sally Moncrieff Kelly Calabria Mary Olson Jeff Gudman Bill Tierney Daniel Williams Members excused Roger Hennagin Staff present: Alex McIntyre, City Manager Darin Rouhier, Finance Director Jordan Wheeler, Management Analyst David Donaldson, Assistant City Manager Brant Williams, Economic & Capital Development Director Robert Galante, Redevelopment Director Dan Duncan, Police Chief Carol Bryck, Assistant Finance Director Kam Frederickson, Budget & Financial Analyst Linda Dickhous, Administrative Support I. Welcome & Agenda Jordan asked if there was an alternate Committee member. Smith confirmed there was an alternate, but he was currently out of state and would serve when he got back. II. Economic Development Program Alex McIntyre, City Manager introduced Brant Williams, Economic and Capital Development Director. He said Williams had been doing work that could help accomplish the City Council's goal to emphasize economic development before the new department had been created, so it made sense to appoint him to lead the effort. Brant Williams said his department now included the Lake Oswego Redevelopment Agency (LORA) and they would have a new Economic Development Manager. The Events Specialist position had been moved from LORA to the Parks & Recreation budget. The department would accomplish the City Council goal to promote the prosperity and vibrancy of Lake Oswego by working with the business community in all areas, not just downtown or the Lake Grove Village Center. They were also responsible for advanced planning of the Streetcar; formal planning of the Foothills area; and implementing the Village Center plan. He said the department would City of Lake Oswego Citizens' Budget Committee Page 1 of 10 Minutes of May 4, 2009 help the Council achieve another goal to maintain and improve City facilities and make an informed decision about the West End Building. He anticipated a draft economic development plan for the City could be ready to present to the Council by mid-summer. One component of the strategy was the Main Street program. Another was to plan how to use Tourism dollars to promote local business. Most of the $150,000 budget for Professional & Technical and Miscellaneous Charges would go towards programs the City Council chose to use in this effort. III. Foothills / Streetcar/ Lake Grove Brant Williams said the primary current Lake Grove Village Center plan implementation project was the Boones Ferry Corridor plan. That was housed in the Planning Department budget, but might be transitioned to the Economic & Capital Development Department at some point in the future His staff would be working with the Lake Grove Business Association to fashion a Main Street program. Gudman asked of part of the projected spending would be devoted to measuring success? B.Williams confirmed that. B.Williams said that he saw a need to improve communication with businesses along Kruse Way, in Lake Grove, and in the southwest industrial area. The department would gain a better understanding about how businesses were doing today and what they needed to succeed or what was keeping them from being more successful. He said the City had never before had the resources to do that on a citywide basis. Smith asked if the Boones Ferry Corridor improvements were in the current budget. B.Williams said Phase 1 was in this year's budget and Phase 2 was $120,000 in the proposed Planning Department budget. Calabria asked if the City had received any feedback from businesses— if they were receptive to what the City was offering? B.Williams reported the Chamber and the Downtown Business Association seemed very interested. He had not talked to many individual business owners yet, but some had indicated they wanted more communication with the City. Most businesses wanted more customers, and the City might be able to help them with marketing and by generating more housing in Foothills. He said downtown parking was a huge issue. Owners of small lots had to find room on them to meet the parking requirement. Portland developers addressed that by looking for common parking areas that would satisfy the parking requirements for several small lots. B.Williams reported the Portland to Lake Oswego Transit and Trail Project (Streetcar) project was moving from the alternatives analysis phase to the Draft Environmental Impact Statement (DEIS) phase. The DEIS put the City into position to gain federal funding for the streetcar project. The alternatives were two kinds of bus alternatives, or a streetcar. The City Council had approved spending $150,000 for the DEIS (capital outlays of$57,000 in the current year and $93,000 in the proposed budget). Funds from the Professional & Technical budget would be used to plan around the transit stations and terminus locations. He noted that although only a small part of the Streetcar project was in Lake Oswego, Lake Oswego had the most to gain from this project. Calabria asked what it would cost to run the streetcar? B.Williams said Tri-Met and Metro had found the cost of the streetcar was less then running bus service on Highway 43. B.Williams said if the streetcar operated at a lower cost than bus service, maybe Tri-Met would be able to fund it out of their budget, and the City would try to get them to do that. Other streetcar projects in Portland had used a combination of local, parking funds and Tri-Met funds to operate. He noted the City already owned a lot of the right-of-way of the projected route. The total capital cost of the project, including right-of-way, would be in the $300 million range. The department would likely look at an urban renewal district or LID as a source of funding. Daniel Williams City of Lake Oswego Citizens' Budget Committee Page 2 of 10 Minutes of May 4, 2009 asked what would be the ongoing costs. B.Williams said they had preliminary information that it was quite a bit less than running a bus. D.Williams asked about the cost of the bus. B.Williams offered to provide the Committee with a copy of the Tri-Met/Metro alternatives analysis, which had that information. He confirmed for Olson that the City did not currently pay to run buses. Calabria asked if there had been a study of who was going to use the streetcar and if Lake Oswego citizens would utilize it? B.Williams said the alternatives analysis concluded that streetcar ridership would be higher than the enhanced bus or"no build" alternative. Gudman asked him to confirm that analysis indicated that ridership would be more than the "no build" alternative. B.Williams confirmed that and explained that the "no build" alternative was the same bus system in place today. That was compared to the two other alternatives of enhanced bus service (where special features like passing lanes and queue jump lanes up and down Highway 43 allowed for faster bus travel) and the streetcar. He said the alternatives analysis forecasted ridership, operating cost and capital costs. Shallenberger asked if they took into account how to pull people into the City from the south? What were the consequences of making Highway 43 a more attractive way in? B.Williams anticipated that bus service would still be provided from the south up to a point of transfer to the streetcar. There would be Park & Ride facilities in appropriate locations to minimize impacts to Highway 43. Shallenberger asked about the Stafford or McVey area. B.Williams said it would not be any different than it was today. As growth continued, the City would work with Tri-Met to offer more bus service to get those people to the streetcar. Shallenberger asked if they were projecting any additional highway traffic on McVey, Stafford and Highway 43 coming into the City? B.Williams said increases in traffic and congestion coming in on Highway 43 and those other roads would increase transit ridership. The region was forecast to grow by over a million people. Jordan said she understood the way the growth forecast for traffic worked with the forecast for the streetcar was that after the streetcar was running traffic would stay at the same level it was today. The concept was that even though automobile drivers who moved to transit left more room on the highway for other cars, traffic and congestion would stay the same, not increase. She noted that if Stafford were designated as an urban reserve it would be 20 years before it would be developed. At that time the streetcar would be operating and there would also be outlying connections to 1-205 or other, additional, high capacity transit. All of those things were concurrently being explored. Shallenberger explained that a lot more residents of areas, such as Tualatin, might decide it was faster to come into Lake Oswego to take the streetcar than to take WES to Beaverton and then transfer to light rail to Portland. That would create a potential Park & Ride issue. Jordan said if the next light rail line was along Highway 99W those people would likely opt to use it instead of coming into Lake Oswego. Calabria asked who would ride the streetcar? Would it be the same people who currently rode the bus? B.Williams explained they would no longer have the option of using the bus if streetcar service was available between Lake Oswego and Portland. Calabria asked if there was only one place to get on the streetcar, would there only be one place to get off? B.Williams said there would be multiple stops, and transfers to the light rail system would be available. Calabria observed it might be easier for people to take the bus than the streetcar because they could catch a bus closer to their home. B.Williams said the plan was to still have a bus system - ideally better bus service — in Lake Oswego that would connect to the streetcar. There were different options for where the streetcar would end in Lake Oswego. One would be downtown near Safeway and the other near Albertsons. The choice would likely be near Albertsons. But there would be two or three other stops along State Street for people to get on to go north. He asked what the capacity of the streetcar was and how many cars there would City of Lake Oswego Citizens' Budget Committee Page 3 of 10 Minutes of May 4, 2009 be. Smith asked if there was a fact sheet on the streetcar. Hoffman said all the related reports were on the Metro website. Tierney wondered if the Boones Ferry Corridor study in the Planning Department was on a path leading to the same conclusion. He asked if the department could wait to fill the position of Economic Development Manager until the City Council approved a related policy document. B.Williams said he and McIntyre had discussed having that person help the City Council determine what an economic strategy should look like. Gudman asked who would pay for any legal challenges to the streetcar project? B.Williams advised that it was a federal project and after the DEIS and final environmental impact statement the construction dollars would come the federal government to fund the project. So the Federal Transportation Agency (FTA) would basically be the owner of the project. The Councilors explained that the reason for the new position was to have resources in place to help the Council achieve a priority goal this year. Johnson had found the website that Hoffman had referred to. She read that today's ridership is 1,870 people, but in 2025 it was expected to be 6,780 people. Bus rapid transit ridership would be 8,600 people, and the streetcar ridership would be 10,900 people. Annual transit operating costs per rider for bus rapid transit would be $2.52 and for Streetcar would be $.83. D.Williams observed that was based on projected numbers, and people could put in whatever numbers they wanted to. B.Williams advised that Tri-Met projections for other projects had not been too far off. D.Williams asked who was to be responsible for security. B.Williams said it was mostly Tri-Met's or the City of Portland's responsibility, but local police would help if there were a security issue. He clarified that Portland actually owned and operated the streetcar now, but it would be a long-term decision whether to continue that. Gudman had counted 18 or 19 projects the that were the department's responsibility. Moncrieff recalled the City Council goal to have thriving, healthy, citywide business districts was a top priority and deserved a person who was an expert in economic development. Hoffman added they did not want to lose that position. Smith asked when the decision would be made between the DEIS alternatives of" no build," enhanced bus, or streetcar? Who made the decision? What was the timing and exposure? He said it looked like there was a line for$57,000 of it this year. B.Williams said the initial draft DEIS would be done by November 2009. Then the FTA would take several months to review the draft and solicit public comment. He anticipated the DEIS would be approved by the FTA and all associated jurisdictions in the spring of 2010. The "locally preferred alternative" would be recommended by a steering committee composed of Mayor Hoffman, Mayor Adams, some Metro Councilors, and Fred Hanson from Tri-Met. Then the group would start pursuing federal construction funding. He noted an east side loop project had just received $75 million in funding and this project could be the next one in line for federal dollars. Public Input Matt Finnegan, 128 Condolea Drive, said the $120,000 for Lake Grove Village Center continuation was under budget. He recalled a previous budget Committee had allocated $1 million to get the study and a demonstration project underway. He stressed a final design was needed in order to move forward and get further funding. He encouraged the Committee to look for more money to implement the plan. He urged the City to plan how to use the land around the Trolley in the manner and density the community really wanted to see before they went ahead with the project. City of Lake Oswego Citizens' Budget Committee Page 4 of 10 Minutes of May 4, 2009 John Surrett, 1685 Edgecliff Terrace, indicated the City was putting the cart before the horse. He advised that federal grants would want to see 40 units per acre, high density, housing in the Foothills and Albertsons area. He said the issue of what to do about the sewage treatment facility down there had to be addressed. He said he understood that storage facilities there would have to be moved for an underpass. He said it raised questions regarding the impact on Oswego Point and Albertsons. He asked if the draft environmental impact statement would take all those things into account. He said they all needed to be worked out before a new development district that met federal requirements was created. Brant Williams advised that the DEIS did look at future ridership connected with development in the Foothills area, but he acknowledged that many of Surrett's questions still needed to be answered. He said moving forward and approving the DEIS on the streetcar did not commit the City to the streetcar. That time would come when the City had to decide to put the local share of construction money into the project. He confirmed for Surrett that seven governmental jurisdictions owned the right-of-way. Surrett observed the City of Portland owned the hardware —the streetcar. He said getting bond revenue was what was going to make or break the project. Olson wanted clarification on the issue that Finnegan had raised. She said apparently a prior council had at some point budgeted $1 million for the Lake Grove Village Center plan and a demonstration project. Jordan recalled that Bridgeport Village developers had been required to give Lake Oswego money to mitigate the traffic impacts of their development on Boones Ferry Road. At that time she served on TAB. Hoffman recalled the City had negotiated an amount close to $850,000. Jordan said then the City was going to build a demonstration project at the Lanewood intersection that involved widening the roadway, putting in a turn lane and a signal. However, the project was not done because the signal alone cost $1 million and there were parties who did not want to see the intersection rebuilt the way it was proposed. Then the 3.5- year-long Lake Grove Village Center planning process had begun and that required some money. The purpose of Phase 2 was to accomplish a completed plan that showed where driveways should be consolidated; where the turn lanes should be; where pedestrian crossings should be; and what the width of the street was to be all the way along the corridor. Finnegan said his concern was the project had not been funded beyond Phase 1. Jordan clarified it was funded for Phase 2 in the proposed budget. Jordan clarified that the $120,000 took the plan beyond what had already been done. Finnegan questioned whether that amount of money would address grades, slope, sub base of road and final design. Jordan clarified it was not an engineering study to construct the road, but a preliminary design to set where the right-of-way, intersections and crosswalks should be—that was all in Phase 2. B.Williams said he believed it included an economic study too. Jordan said it did include a study of the economic impact on the businesses that might be affected by the new median. Finnegan recalled that 64% of the community wanted the project implemented and he held this budget was not helping the project move forward, it was a "band aid." Brant Williams said he believed that this and the next year's budget put in one-quarter of a million dollars that would move the project into the next phase. Jordan anticipated that after the right-of-way and median studies were done, the Economic & Capital Development Department would look at where to put public parking. Smith observed that was beyond the proposed budget cycle. Jordan anticipated it would be in the 2010-11 budget. Johnson said one reason it might look like a small amount was that this was a one-year budget, not a two-year budget. Finnegan said the Village Center area wanted to see the plan implemented and the business community was in agreement. He held there were things the City should do now that would encourage interest in redevelopment there. He said they could synchronize the traffic lights to City of Lake Oswego Citizens' Budget Committee Page 5 of 10 Minutes of May 4, 2009 lower traffic speed because the community had asked to slow down traffic on Boones Ferry Road. Smith observed the Committee did have a clear picture of the $120,000 in the proposed budget and Finnegan had given them a good description of the community's concerns. B.Williams said the City Council made it very clear that part of their goal was to figure out financing strategies for Lake Grove Village Center, and that task would likely fall to his department. Jordan suggested adding money to the proposed budget to pay for the architectural style guide the Village Center Plan called for. She said that would enhance support for the plan. Brant Williams said over the past four to six years a number of studies of Foothills had been done and a Transportation Growth Management (TGM) grant had been used to look at different density scenarios and some street patterns. But there had not been much effort since then. He said Foothills was prime for redevelopment. There were 17 or 18 acres of light industrial land ready for it. Foothills Park had been built, but was underutilized. He explained there were several reasons why the existing urban renewal district could not be expanded to include Foothills. He related that the industrial land owners and the City had a joint contract with a developer to look at options for redeveloping the industrial area and the rest of the 120-acre Foothills area, including Oswego Point, which was already in an existing urban renewal district. Gudman asked if there was a timeline and what the impact on the proposed budget was. B.Williams said pre-negotiation talks were just beginning and the City still needed to figure out how streets were to be laid out; what was to happen to the treatment plant; how to deal with the floodplain; who would be responsible for what; and how it would all be funded. Gudman asked if the budget included money for consultants this year? B.Williams said the property owners and the City would incur the cost if they moved forward with formal planning and fashioned a development agreement. He said the City had already spent close to $600,000 on the Lake Grove Village Center Plan and it could take five years and $800,000 to finish. He said he hoped Foothills would not take that long to plan. He recalled the Portland South Waterfront Framework plan had cost over $2 million. Hoffman noted the City Manager's Budget Message talked about Foothills. Gudman observed it did not mention an amount. He wanted a "best guess" about how much the City was going to spend. Smith asked if any activities in the Planning Department were already integrated into B.Williams' head count and skill set? B.Williams said no. Smith observed B.Williams was not tapping anything currently on board — he was starting with a clean slate. He observed this could be a demand on one of the General Fund contingencies. McIntyre said that was correct, but what it would be was a moving target. He said the answer to Gudman's question was it was somewhere between $800,000 and $2 million over the next 36 months. B.Williams clarified that was the potential cost of the planning process. The City did not yet know what their piece of the entire development cost would be. Gudman asked the Committee members if they should not approve a budget for a project that would require an enormous amount of funding over several years —with a big chunk of it up front— unless there was something in the budget for it. He asked how they would otherwise measure how they were doing? Tierney said he thought the staff was saying that there were so many variables they did not yet have a handle on it, but if everything came together there would be resources available in the contingency funds that the City Council could decide to use. McIntyre said if a proposal was ready to present to the City Council sometime next year he would ask the City Council to direct him to submit a supplemental budget for it. City of Lake Oswego Citizens' Budget Committee Page 6 of 10 Minutes of May 4, 2009 IV. West End Building How does the City pay for the $20 million dollar line of credit taken out for the purchase of the building? Brant Williams handed out the draft Strategy for the West End Building and Other City Facilities dated April 21, 2009. He said last July the City Council had directed him to fashion a decision making process related to the WEB and other City buildings. He had gathered the necessary information and the City Council had studied it and agreed on a strategy to put out for public review. There willl be several public input meetings including one the following Saturday at City Hall; one on May 18th at the WEB; and the public hearing was scheduled for June 2nd Smith wanted to get a sense of the impact of this process. B.Williams pointed out Guiding Principal #5 prioritized implementation tasks into immediate, short term (5 years), intermediate term and long term tasks. All the tasks had a cost associated with them. The City Council might decide to adopt it or let voters decide what was to be done with the WEB. Smith observed there was currently $800,000 set aside for the WEB. A decision needed to be made about it by July. There would be a finance cost to continue the bond after July. Other WEB associated costs would be maintenance and enhancements to increase its marketability. He asked if money needed to be budgeted for that. B.Williams said that depended on the City Council's decision. The City might have to budget for the implementation tasks. Smith asked the Committee if they were willing to go forward with this "blind." He said he sensed from the choice of strategies that more funds would be necessary. Hoffman said the $800,000 was for debt service refinancing for 2009-10. Smith asked if another $100,000+ was budgeted for maintenance? McIntyre said that was in the Public Works budget. B.Williams explained the only enhancement was a capital outlay to replace the WEB's chillers and he confirmed that ongoing daily maintenance was also in the budget and that was $250,000 to $300,000 per year. Jordan and Smith asked if the cost was charged back to the users. McIntyre said the Parks Department use was a cost to the General Fund, but the City did charge LOIS and the water team and other buildings users. The budget team then passed out a summary of WEB expenditures since "day one." B.Williams pointed out it showed the interest paid in each of the three years of City ownership; property taxes the City paid for the first six months that Safeco was still in the building; itemized consultants fees; a structural and seismic analysis in 2008; and the cost of the recent decision- making process. Jordan advised one thing the City could do to enhance the value of this property would be to change the zoning. Shallenberger asked what services were currently in the WEB and where the City would locate them if they had to be relocated? B.Williams said the Parks & Recreation Department had been there for two years; the LOIS team had offices there, and the water project team would have an office there. Jordan confirmed for Shallenberger that new Parks programs had been added because the WEB offered more space for them and there was demand for them. Moncrieff understood that almost all the programs had been housed in rented space before the City owned the WEB. Hoffman said if the City sold the WEB that would not preclude the possibility of retaining some type of City involvement with the property. B.Williams said there were nine other City facilities. Their physical deficiencies and their ability to provide services had been analyzed. Some were over capacity (City Hall, the Library, ACC and Maintenance Services) and only the WEB was underutilized. There were costs to deal with the deficiencies. The three highest priorities were getting police and 911 out of City Hall; the City of Lake Oswego Citizens' Budget Committee Page 7 of 10 Minutes of May 4, 2009 South Shore Fire Station; and the Maintenance Services facility. B.Williams advised Gudman that he had capital cost estimates for all of them, but no estimate of what might be necessary to spend for that in the 2009-10 fiscal year until the City Council adopted a strategy for them in June. Hoffman said the City Council was going to make a decision by the end of June about the Guiding Principles 1-5 and that decision depended upon what the citizens told them. Smith saw a need to have something in the budget to be prepared for a police, fire and maintenance facility. B.Williams advised the staff could not be involved in the issue because the City Council might decide to let the voters decide it. Gudman observed that meant there were no incremental dollars to budget for it. Johnson observed that the Guiding Principles called for tasks to be done in the first three months, but there were no funds in the proposed budget for that. Tierney referred to the General Fund summary spreadsheets the budget team had passed out. He said the way he read it the budget was balanced by taking some money from existing reserves. He asked if the Committee was comfortable with letting the contingencies or reserves pay for some expenses. He recalled they had discussed projects that night that could require significant expenditures in 2009-10. He asked if the Committee should try to cover them in the operating budget? He suggested they reduce some proposed expenditures to make room for them unless the others were comfortable with the fact there was contingency funding that would cover them and still leave the City in good financial condition. He said he did not have the full picture yet, but the staff was providing a lot of good materials. Calabria asked what the new Economic Development manager would be doing. B.Williams said his/her primary role would be to focus on economic development. But there were many other projects that person could help him and Bob Galante implement. That would be an added benefit of having more help. Calabria asked how the new department's budget overlapped the LORA budget. B.Williams advised that LORA funds had to be spent in a certain area and in a certain way, but now that LORA was under the umbrella of the Economic & Capital Development Department the staff could provide service throughout the City. He stated that time the new person spent on LORA projects would be charged to LORA. He said the City Council was scheduled to hold a study session on May 12th to review the proposed LORA budget so they would have a stronger sense of the projects by the May 13th CBC meeting. Smith invited public comment. Public Input Matt Finnegan wanted to know when the Committee was scheduled to finalize their recommendation. Smith said that was at their final meeting on May 13th at the WEB. John Pullen asked when the Committee would discuss state revenue sharing. McIntyre said that would be on May 13th Tierney asked what were the component pieces of General Fund balancing? McIntyre said the budgeting team had collapsed other funds into it. In doing so they made some tradeoffs in order to keep it in balance. He said the City Council initiatives and goals increased demands on resources by over a million dollars. The budget team was not as aggressive in estimating increases in revenues as in the past and they adjusted expenditures. Jordan asked if money for an architectural style guide for Lake Grove would be appropriate in the Long Range Planning Budget, or elsewhere? McIntyre said it would likely be that budget, City of Lake Oswego Citizens' Budget Committee Page 8 of 10 Minutes of May 4, 2009 but wherever it was put it would be a General Fund expenditure that the Committee would have to find a tradeoff for. McIntyre stated that the Committee members should raise any issues of their own at the May 11th meeting. He asked that they forward them to him ahead of time. Olson said she thought the City Council travel budget should be cut by $4,000. Smith related that he and Gudman had met with McIntyre, Rouhier and Wheeler to discuss Gudman's list of points and his framework. They had asked Gudman to condense it for the Committee. He advised that the Committee had the authority to move dollars around, so that would not be out of order. Smith asked all the members to email their own lists to McIntyre and copy the other Committee members. Calabria asked if the Natural Area coordinator would be a seasonal position; and if she maintained open space. McIntyre said she was a half-time employee who worked year round. The position had been moved from Planning to the Parks department. He advised that open space could not just be left alone, it had to be maintained. The City Council had approved the Cook's Butte Management Plan and that might be a model approach to other areas, if it worked. Gudman pointed out the resource history spreadsheet behind the Budget Crosswalk was actually a consolidated total for the General Fund, not across the City. He said the challenge with a citywide consolidated revenue inflow comparison was there were restricted buckets of money outside the General fund so the consolidated revenue picture did not actually offer the Committee more flexibility to solve the challenges that individual members might want solved. delinquency. Gudman related that Bob Galante and the City Attorney were re-examining the Percent for Art ordinance to verify whether it applied to purchasing buildings. Johnson wanted to know if the two municipal grants the City had been awarded were in the budget. Rouhier and McIntyre said they were in the proposed Finance Department, Nondepartmental budget. Gudman said the other information he wanted to see was an estimate of property tax. Bearden observed that some people who had previously paid all their property tax all at once might have decided to start spreading the payments out. Gudman said another factor might be people paying delinquent taxes for previous years. Olson asked for more detailed information regarding investment income. Public Input John Surrett said WEB financing was a little confusing, especially now that funds were rolled up into the General Fund. The community center development fund used to show the cost of the building and everything that went into it, but it was not as transparent now. He recalled that B.Williams' slides showed $800,000 for interest. Then maintenance capital outlay of$250,000 was mentioned, but the budget only showed $800,000. He wondered what Wells Fargo Bank was using as the index for establishing the interest rate on the City's line of credit. He asked if the line of credit would be extended three years again or for a shorter term? He asked if there was a penalty for paying it off sooner? Rouhier said there was no prepayment penalty on the credit line. He said the $800,000 in the budget was a reasonable estimate of the interest that would be paid over the next year, plus a small amount to refinance the credit line the City had now until June. It would likely be extended for two years. More clarity would come when it was determined what was to happen with the building. Besides the $800,000 interest, there were WEB maintenance costs of$250,000 reflected in the Facilities budget. He explained that the community center development fund City of Lake Oswego Citizens' Budget Committee Page 9 of 10 Minutes of May 4, 2009 had been collapsed into the General Fund because money flowing into the development fund was actually transferred from the General Fund to pay the debt service on the credit line. Tierney asked the staff to report the current, actuals, and add the budgeted amounts for the WEB. He noted the figures came from a number of different sources and that would help make it more transparent. Surrett said the community was talking about consolidating school facilities. Perhaps the City could consider relocating the police and 911 operations to a school such as Waluga Junior High. He observed there had been no discussion of the ACC. Gudman distributed a summary, "Possible Lake Oswego 2009-2010 Budget Trade Offs. It was a condensed summary of a much larger document he had prepared trying to keep the big picture in mind while looking at the details of the budget. His approach was how an average resident of the City would construct a budget that met the City's goals, but did not extract additional funds from citizens other than the library tax they had just voted for and the increases in water and sewer rates. He asked the Committee members to look at the options and tradeoffs in the summary and discuss it later. V. Adjournment Chair Smith adjourned the meeting at 8:58 p.m. Respectfully submitted, Kam Frederickson /s/ Kam Frederickson Budget & Financial Analyst APPROVED BY THE CITIZENS' BUDGET COMMITTEE: April 19, 2010 City of Lake Oswego Citizens' Budget Committee Page 10 of 10 Minutes of May 4, 2009