Councilmembers present:

Donald MacGilvra, Alan Kiest, Peggy Gerdes, Carolyn Armanini, Dwight Thompson, Mary Jane Goss, Nate Herzog

Staff present:

David R. Hutchinson, Mayor; Doug Jacobson, City Administrator; John Rogers, Police Chief; Scott Drown, Administrative Sergeant; Sarah Phillips, Government and Community Relations Coordinator; Joyce Papke, Finance Director; Tema Nesoff, Human Services Coordinator; Susan Stine, City Clerk; Linda Page, Police Secretary

Others present:

11 visitors

Mayor David Hutchinson called the budget workshop/special meeting to order at 7:34 p.m.

Cmbr. Thompson requested that public comments be added to the agenda prior New Business/Discussion. Thompson also noted that Ordinance 807/Adopting Year 2000 Budget should be added to the second reading calendar.

Jean Linhart, 3734 NE 188^th, said she is opposed to Ordinance 808 which would increase the business and occupation tax. She noted that the proposed tax is an increase of 100 percent and said that Initiative 695 was not a mandate for cities to raise taxes. She encouraged the council to consider ways to grow the Lake Forest Park economy.

Beverly Read, 3826 NE 195^th, said she is opposed to Ordinance 808, and she suggested that the administration work with the economic development committee and businesses in the community to find ways to provide a good environment for businesses in the city. Read said that as a real estate professional, an increase in the business and occupation tax takes a slice out of her pocket. In response to a question from Thompson, Read said that real estate professionals pay business and occupation tax through their company. Read noted that the council has increased the property tax and has imposed a utility tax recently, and these taxes add up.

State Senator Darlene Fairley, 17430 Ballinger Way NE, said she is going to Olympia for a committee weekend and has been asked to provide anecdotal information regarding the loss of criminal justice funding. Senator Fairley said the state will spend part of its reserves on one-time crises related to the impact of Initiative 695. She noted that funding for transportation projects associated with Referendum 49 will not be distributed unless the projects are underway. Fairley encouraged councilmembers to contact her if a one-time need is identified that might qualify for state funds.

Gary Falls, 20051 33^rd Ave. NE, said he is a REMAX broker-owner and expressed concern regarding the proposed Ordinance 808.

Chris Farrells, 16564 35^th NE, said she is a realtor with Windermere, and she said she is opposed to the business and occupation tax increase.

City administrator Doug Jacobson reviewed issues related to the capital improvement fund and the loan repayment schedule. He noted proposals for park improvements at Horizon View and Blue Heron Parks.

In response to a question from Armanini, Parks Commission staff Tema Nesoff discussed the grant funding for the Blue Heron Park project. Armanini requested that staff provide information on matching funds needed for grants.

MacGilvra said he would like to make one last pitch for retaining the interim city hall property. He said it would be a crime for the city to dispose of the seven-acre site.

Hutchinson said that he and Jacobson have met with the Shoreline Community College president, and he indicated that the community college is interested in purchasing the property.

Councilmembers discussed use of the real estate excise tax, grants, and projects involving McAleer Creek, the Animal Acres property and the Morris waterfront property.

Councilmembers reviewed the November 30, 1999 memorandum from the city administrator regarding the city hall project. Armanini discussed her interest in consistency in the budget document to reflect the council discussions regarding outsourcing the police dispatching services.

In response to questions from Thompson, Jacobson discussed computer hardware and software and the value of volunteer hours in creating the city website.

A 15-minute recess was called for at 8:35 p.m.

The meeting was resumed at 8:50 p.m.

Hutchinson said that an assumption can be drawn from the Lake Forest Park vote on Initiative 695 that the majority of citizens here would support maintaining the current level of service. This ordinance will replace some of the lost revenue to help maintain some services.

Gerdes noted the difficulty facing the council in preparing a budget for 2000, and she said she supports the ordinance increasing the business and occupation tax.

MacGilvra said he agrees with Gerdes in support of this ordinance and noted that the city will face more budget cuts next year.

Armanini said she reviewed the revenue information from businesses in preparation for the budget committee meeting. She said this tax increase should be viewed as spreading the burden between businesses and residents. She noted that the utility tax was a more difficult decision since it affects citizens on fixed incomes and senior citizens.

Thompson moved to advance Ordinance 808/Amending Ordinance 272 and Increasing Business and Occupation Tax to the final action calendar.

Goss said she believes care should be taken regarding the conclusions drawn from the vote on Initiative 695. She noted that this tax increase seems easy because the businesses may be least resistant. She pointed out that members of the Economic Development Committee are not necessarily residents of the city. She said that as a business person, she would look at the return from the city for taxes paid. Goss expressed concern that information provided by local business had been reviewed by another councilmember. She suggested that rather than increase the taxes, the city should look at its record methods of collecting the current tax due from businesses at the current rate. Goss said that she does not think the city collects from every realtor business doing business in the city. (Council approved 12/16/99)

Herzog said he is undecided regarding his vote on Ordinance 808. He is in favor, however, of building up reserves. He stated he would not be in favor of passing this ordinance at this meeting.

Hutchinson noted that he had received calls in opposition to Ordinance 808.

In response to a question from Kiest, Jacobson discussed information provided by the city attorney regarding the effective date of the ordinance.

Thompson moved to add Ordinance 807/Adopting Year 2000 Budget to the November 30 agenda for second reading. Armanini seconded. The motion carried unanimously.

Thompson moved to place Ordinance 807/Adopting Year 2000 Budget before the council for amendments. Armanini seconded. The motion carried unanimously.

Thompson moved to amend the proposed Year 2000 budget to include marine patrol services for $4,688.00 for six months of the year 2000. Kiest seconded.

Thompson said he understands the county will provide this service for the first six months.

Armanini expressed concern that the county budget hinges on successfully lobbying the state for funding for the second half of the year 2000.

Kiest expressed his interest in funding this line item at the full amount so that a budget amendment would not be necessary if the city contracts for services with another entity.

Thompson noted that the budget committee had deleted $9,000, but he has learned since then that the county put money in its budget to cover these services for six months.

Councilmembers discussed the services provided by marine patrol and service levels at various times of year.

Goss expressed support for the motion and noted that infractions may occur across city boundaries. the marine patrol’s presence at the north end of the lake helps to provide service and safety in Lake Forest Park. (Council approved 12/16/99)

MacGilvra expressed his support for the motion and noted that the safety factor is extremely important.

Thompson moved to amend the preliminary budget to reduce state-shared revenue for criminal justice by $4,499.00. Armanini seconded.

Thompson noted that this is a technical amendment, which reduced the ending balance.

Armanini moved to amend the preliminary budget to reduce the debt payment from the general fund by $46,040. MacGilvra seconded.

Armanini noted the November 4, 1999 memo from the finance director regarding this matter.

In response to a comment from Thompson, councilmembers agreed that the ending fund balance should be adjusted in response to these amendments.

Jacobson said no funds have been identified in the budget for the police chief recruitment process, and he recommended that $5,000 be added for this purpose.

Gerdes moved to bring back from the table the motion to reinstate the three corporal positions premium in the proposed 2000 budget. Kiest seconded. The motion carried unanimously.

Gerdes said her reasons for requesting the reinstatement of the corporal positions premium include the fact that this is a critical time for the police department because of the impact of cuts related to Initiative 695. She expressed concern regarding staffing issues on employee morale and noted the impact from the pending change in leadership when the chief retires. Gerdes said that her impression based on correspondence from citizens is that they support a highly visible police presence.

In response to questions from Armanini, Rogers discussed overtime pay for sergeants and the amount of time sergeants spend on patrol. Sgt. Scott Drown discussed paperwork requirements and attempts to simplify the report review process.

Thompson said he is not in favor of this motion and expressed concern about the request of an additional supervisory level.

Goss said she believes that council action provided guidelines for the department which are being followed. Gerdes noted that this budget request makes sense, and councilmembers should not attempt to micro-manage the department.

Kiest said he took a position in the budget committee meeting which Gerdes has requested him to rethink. Kiest said he will change his position on this issue and said he appreciates Gerdes’ leadership. Kiest said he also is concerned regarding the impact of the changes in the department. Gerdes noted that she is interested in protecting the investment the city has made in hiring and training police officers.

In response to a question from Herzog, Rogers said the intent is that these officers would be supervising when sergeants are not present. Rogers said this is intended also to create a career path and development of officers for positions of leadership.

Herzog said he can see the value of this request; however, he is hesitant to approve new expenditures.

Thompson said that the motion is to reinstate the three corporal positions premium for a total of $7,800.

Armanini expressed concern regarding the impact on the bargaining unit, and Drown noted that these would be three-year assignments on a rotational basis.

MacGilvra said he reviewed the information regarding budget cuts prior to the passage of Initiative 695 and budget cuts after passage. He said he views the receipting software as a one-time expense which will save future labor costs and provide time for other necessary tasks. He said this should be considered as a one-time cost which will equal saving in the future.

MacGilvra moved to reinstate the receipting software in the amount of $5,000. Herzog seconded.

In response to a question from Thompson, Herzog said his own cost benefit analysis confirmed there will be savings realized from this purchase.

Gerdes moved to reduce the proposed budget of $14,300 for Shoreline-Lake Forest Park Arts Council by $7,800 to a total of $6,500. Herzog seconded.

Armanini moved to table the motion to the December 6 Council budget workshop. Goss seconded.

Armanini said the Arts Council director was in attendance earlier and should be allowed to be present for the discussion. Thompson said he did not believe the vote will change.

A five-minute recess was called for at 10:45 p.m.

The meeting was resumed at 10:50 p.m.

Thompson moved to amend the proposed budget and to increase the executive services/professional services and expenses by $5,000 for recruitment costs for the police chief position. Kiest seconded. The motion carried 6-1 (Aye—Armanini, Kiest, MacGilvra, Gerdes, Thompson, Herzog; Nay—Goss).

Thompson moved to amend the proposed 1996 construction fund budget as indicated on a separate page and to reduce the city hall construction fund by $50,000 and increase the project contingency’s line item by $50,000. Armanini seconded. The motion carried unanimously. (Council approved 12/16/99)

MacGilvra said he is concerned about the $9,655 for dues for the Puget Sound Regional Council (PSRC) and the Suburban Cities Association.

Kiest noted the role of the PSRC related to transportation funding and said Suburban Cities has 100 percent membership except Bellevue and Seattle. Armanini noted that the city is well-represented on the Regional Policy Committee of Suburban Cities by Kiest. She suggested that participation in Suburban Cities should not require paying for an expensive dinner. Gerdes noted the value of the PSRC’s statistical analysis of population growth and the study of transportation issues.

MacGilvra moved to adopt Ordinance 808/Amending Ordinance 272 and Increasing Business and Occupation Tax. Kiest seconded.

Kiest said he is in favor of this ordinance and believes this is a responsible way to react to the current budget needs.

Goss said she believes there are other options and suggested revisiting the gambling tax ordinance. She suggested that consideration be given to reducing the tax if Initiative 695 is overturned.

Gerdes noted her request for consideration of the purchase of portable defibrillators and requested that a plan be developed for acquisition in the future. She said, however, that she is aware of budget considerations this year.

In response to a question from Herzog, Thompson reviewed the meeting schedule for the month of December. Herzog said he is willing to meet on December 2 as requested by the city administrator if the city council would be able to complete its tasks by December 16. Councilmembers agreed that no extra meeting would be scheduled for December 2.

There being no objection, the meeting was adjourned at 11.22 p.m.

Susan Stine, City Clerk

_______________________________

David R. Hutchinson, Mayor

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