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HomeMy WebLinkAboutSSN011419 CITY OF CENTRAL POINT oregokt Council Study Session Minutes Monday, January 14, 2019 Call to Order Attendee Name Title Status i Arrived Hank Williams Mayor Present Neil Olsen Ward I Absent Kelley Johnson _ Ward II Present Brandon Thueson Ward Ill - Present Taneea Browning Ward IV Present Rob Hernandez At Large Excused Michael Parsons At Large Present Staff members present were City Manager Chris Clayton, Finance Director Steven Weber; City Recorder Deanna Casey; II. Discussion Items 1. Financial Plan Update (Weber/Clayton) City Manager Chris Clayton began the presentation with an explanation and background on why the City of Central Point has a financial plan. We were able to survive the recession with little to no layoff of staff members or cutting services. We had several retirements or employees leave and we did not fill those positions. We contracted out jobs when we could in order to avoid hiring staff that could later be laid off. During the budget process we avoided planning capital project early in the recession so that we did not use all of the General Fund Reserve. In 2015 we hired a consultant to help with our Financial Plan. At that time expenditures were exceeding revenue and the City Council implemented fees instead of increasing the tax rate. The Financial Plan has helped us prepare for future growth and options for the City to implement in different situations. Finance Director Steven Weber presented a power point showing long term options the Council had in 2015. At the time the council had four options: • Baseline - Do nothing and hope we ride it through. • Fee Increase - $3.00 monthly public safety and Parks maintenance fee • Economic Growth - 15.62% increase in assessed value (AV) since FY 2014-15 (10.62% increase needed in 1st year). • Property Tax Rate Increase - increase from $4.47/$1,000 AV to $4.78/$1,000 AV in FY 15-16 and decrease annually ($4.60 for FY 18-19) At the time staff and council adopted a hybrid approach with $1.00 monthly public safety and parks maintenance fee; economic growth at 12.32% in AV; and no increase to the property tax rate. City of Central Point City Council Minutes January 14, 2019 Page 2 Mr. Weber explained several charts and tables regarding where we would have been if the financial plan had not been approved. He explained how the different funds have been growing at a safe and controlled rate. arsii There was discussion regarding fund balance analysis. Each ending fund balance is projected to be well above the adopted policy of 25% for fiscal year 2017. The Building fund is becoming more self-sufficient and the water fund is strong and healthy. There was discussion and a presentation explaining the differences in local jurisdictions taxes and fees. Explained the difference in each cities tax, what the differences are if they have a fire district or not. Central Point lowered our tax rate after the fire district was formed which is why we are not collecting our allowed amount? Central Point may be higher for property taxes but we are lower on fees compared to other cities in the area. Property owners can use their property taxes as a deduction for taxes, but they cannot claim utility fees. Mr. Clayton explained that Central Point is doing fine financially. We are starting to work on budget preparations with the kick off meeting on February 14th. He thinks there will only be a request for two new employees this year, a police officer and a planner for Community Development. He will allow an inflationary increase of 3% for materials and services and the only capital project planned are the Council Chamber remodel and Police Department updates. He will be making a presentation to the Budget Committee to use capital funds to build the $8 million dollar community center at no additional cost to the citizens. There are different options for paying off current debts and going out for a bond to pay for the community center depending on how the surveys come back and if the public is in favor of a fee to help pay for staffing the center. There are options for Urban Renewal to help with the cost of the center. III. Adjournment The Study Session for January 14, 2019, was adjourned at 6:50p.m.