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
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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
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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
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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.
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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
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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.
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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
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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,
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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
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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