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HomeMy WebLinkAboutSSM022221 CITY OF CENTRAL POINT Oregon Council Study Session Minutes Monday, February 22, 2021 I. Call to Order Attendee Name Title Status Arrived Hank Williams Mayor Remote Neil Olsen Ward I Remote Kelley Johnson Ward II Remote Melody Thueson Ward III Remote Taneea Browning Ward IV Remote Rob Hernandez At Large Remote Michael Parsons At Large Remote City Attorney Chris Clayton; City Recorder Deanna Casey; IT Director Jason Richmond; Parks and Public Works Director Matt Samitore; Finance Director Steven Weber; Public Works Supervisor Doug Norman; Foreman - Water Michael McClenathan; Recreation Coordinator Nikki Peterson and special guest John Ghilarducci from FCS Group. II. Agenda Items 1. City Utility Fund and Community Center Financial Review Parks and Recreation Director Matt Samitore stated that the City hired FCS Group, Inc. to review the City's enterprise funds to determine if the current rates meet the current and future demands. FCS Group did an additional analysis to determine what it would take to fund a potential Community Center's maintenance and operation. He introduced John Ghilarducci who has been working on the analysis with the City. The City asked FCS Group to analyze what it would take to have a $400,000 operating budget for the community center. The request was to look at changing the current general fund obligations of $175,000 to the Street Fund and its impact on rates. The Second was to look at how much it would cost to generate an additional $225,000 from the Parks Maintenance Fee. UTILITY RATE BASIC OVERVIEW: The Rate Analysis considers regular costs like salary and capital project costs, which vary from year to year depending on the projected projects. They provided an analysis with the intent of revenue intake to cover the costs involved in the projects. Water rates should include something for conservation, annual cost inflation, operating forecast, annual growth rates, and financial policies. We always want to have extra in the budget for unplanned water emergencies. Mr. Ghilarducci provided an overview on revenue requirements; SDC fees, fiscal policies and operating budgets, which need to be considered when creating rate studies. They consider annual Inflation, operating forecast, annual growth rates and financial policies. They try to plan for growth over the next twenty years, and do not want to see a rate spike for any period. One planned project for the water fund will be City of Central Point City Council Minutes February 22, 2021 Page 2 to replace the 120-year-old pipes in the downtown area. STORMWATER: The storm water master plan is scheduled for updates in 2030, one proposed project is a culvert replacement under Pine Street. The study shows annual cost inflation; operating forecast; annual growth rates; and financial policies. The projection only shows a slow incline for cost of living increases. STREETS: The analysis for street fees show that we need to replace $175,000 in franchise fee revenue directed to the street fund. The recommendation is to eliminate the pass-by trip reductions for businesses near I-5 and increase rates across-the-board. He explained the pass-by trip counts and the option to re-evaluate trips for grocery stores, gas stations and businesses in the I-5 area. This would help with $175,000 to go towards the Community Center. There was discussion about the pass-by fees and who should be paying them. PARKS: In order to fund the Community Center we need to raise the park fee revenue by $225,000. The study indicates that we increase the single family residential park fee to $2.70 per month and multi-family residential to $2.43 per month. This would increase the amount needed for operations, personnel and maintenance of the Community Center, cemetery and greenway. If we take ownership of the Little League fields it may increase the need for fees. The city attorney is researching if the city can charge fees for property that is outside our city limits and UGB. There was discussion about fees in the past that did not get increased on a regular basis because of the economy. The water fund is the only fee that has seen regular increases. It is important to keep up with the times and we need to continue to keep Central Point competitive with the other cities to provide for the things. The Cemetery is always to be the cities responsibility, and the greenway needs to be maintained. We know the County will not be doing maintenance and the city will have to pay for fire suppression. Mr. Clayton explained that the discussion tonight is to prepare for the budget process. We also have this topic scheduled for a study session in March so the Council has time to consider the options to direct staff in budget preparation. Once we complete the projects planned we will be in good shape. He updated the Council on the Little League fields, we are researching the option of owning the fields. We are not sure we can collect and spend the park utility fee on property not owned by the city or within our UGB. We could fast track a UGB amendment to include the fields at a future date. There was discussion about people working from home regarding the pass-by rate and we may see some push back from residents who work from home and do not drive as much as they use to. John explained the trip generation research, even if you don’t leave your house to go shop and instead have it delivered, someone is driving on the street to your house so you would still be responsible for that fee. Mr. Clayton explained that the City of Medford charges freight companies more than we do in regards to trips. Mr. Samitore explained that we are not charging Pilot the City of Central Point City Council Minutes February 22, 2021 Page 3 full amount of trips for the type of business they are conducting. Redaway has about 500 trucks in and out daily, Medford would be charging them a much larger amount. We would like to make sure we have exhausted all other options instead of increasing fees on the citizens and small businesses. Grants would not be able to help to maintain the facilities and parks but can help with the project construction. FEMA is planning to set funds aside for fire suppression along the greenway. Mr. Clayton explained that he would never propose a project like the Community Center without a plan to run it, the same goes for the Greenway and Cemetery. The increase in these fees would just be to run and maintain the planned projects. There will always be people who are unhappy with any fee increase. Mr. Olsen suggested that we ask the community to approve a tax increase to pay for these projects, at least they would be able to express their opinion on what they are willing to pay for. He would like to have more community support. Mr. Clayton by implementing these fees we can earmark them for specific projects. A tax increase could be spent on anything once implemented. There is always a chance that the next council could increase the fees and still have the tax rate increase. It is easier to reduce a fee over but not easy to reduce property tax. Mr. Weber explained that the City could increase the property tax rate in the budget process it would not be something that would have to go to a vote of the people as long as we don’t go over the permanent rate. CONCLUSION: Discussion of increasing the business trip generation’s calculations instead of putting all the increases on the citizens. Council would be in favor of changing our calculations to match Medford for high generating businesses like Pilot and Redaway. Staff will start looking at survey options and return with options for commercial traffic fee adjustments. RESULT: FOR DISCUSSION ONLY III. Adjournment The Study Session for February 22, 2021, was adjourned at 7:38p.m.