PRESENT: Marie Bell, Verna Brown, David Crowell, Bill Dwyer, Bobby Green, Sr., Mary Ann Holser, Angel Jones, Anna Morrison, Peter Sorenson and Cindy Weeldreyer. Also present were Bill Van Vactor, David Garnick, Tanya Heaton and Greta Utecht. Zoe Gilstrap, Recording Secretary.
Chair Marie Bell called the meeting to order.
Bell noted that David Crowell has officially accepted last week's nomination and appointment to vice chair.
§ Support Services
General Expense. David Garnick, Senior Management Analyst, discussed this fund. He referred to page 4 of the proposed budget document and used this to walk the committee through the major changes. Garnick noted that Extension Services is going up 5.8% due in part to the money that was set aside as part of their serial levy. He explained that they have been using their cash reserve to cover their increases. Garnick explained that Indigent Mental Health decreased a little because actuals were not meeting what was budgeted in the past. He said the Federal Lobbying contact has been increased due to increased time on the federal legislation for County payments. Garnick said PSCC money is an LCOG grant that is being transferred to HHS. He noted that Building Maintenance and Repairs is going up dramatically due to the increase in the indirect cost allocation plan for next year which includes an increase in space rent to departments. Garnick said this will allow money to be transferred to the capital improvement fund for building maintenance and repair. He said there has been an increase for the External Financial Audit by $5,000 because Lane County is using a new firm. Garnick also noted a slight increase in association, dues and agreements. He explained that HACSA and JTPA are federally-funded agencies and cannot be charged full indirect. He said they are still taking money out of the Y2K contingency.
Board of County Commissioners and County Administration. Tanya Heaton, Management Analyst, noted that this department uses the general fund. She said it is a status quo budget, noting that the increase in personnel services is for the Intergovernmental Relations Manager position that was approved this year.
Responding to Sorenson’s question on whether they can use road fund for part of the IGR position, Heaton replied that PW would pay indirect for this.
County Counsel. Garnick noted that there are a number of funds in County Counsel. He said it looks like personnel costs are going up due the fact the Claims Investigator is being transferred into the general fund. He said this position will be included in the indirect but not until the following fiscal year; next year it will still come from the self-insured fund. He said the basic budget is status quo.
Management Services. Greta Utecht, Management Analyst, stated that there are several funds in Management Services but the largest percentage is general fund. She said the increase in personnel services reflects two positions in facilities and half a position to handle the Peoplesoft implementation and upgrade. She said there is an expected decrease in revenue due to fewer elections and fewer recordations. Utecht stated that other than those changes, this is basically status quo from last year.
Information Services. Garnick stated that Information Services is funded through indirect. He noted that personnel is going and because they are a direct services department, they needed to budget for a COLA. Garnick said their overall discretionary materials and services budget is flat. He said they have a number of adds, which were not included in the proposed budget.
§ Public Services
Assessment and Taxation. Heaton stated that this budget is status quo. She said they were able to create two new positions by a grant from the Department of Revenue and that those two new appraisers will help with their appeal process and revaluations.
Health and Human Services. Garnick stated that the budget is basically status quo. He said that because they are receiving slightly less than last year, they are not keeping up with the PERS and benefits increases.
Children and Families. Garnick said this department does not receive any general fund support. He said the overall budget is up, as well as personnel services, noting that they have requested two positions. Garnick said an Office Assistant and Nurse positions for Healthy Start were included because they are funded by grants and do not come out of the GF.
Public Works - Land Management. Heaton stated that Land Management is the only piece of PW that has any general fund. She said the proposed budget is equal. She explained that the increase in personnel reflects the 2% for step increases and PERS and benefits. Heaton noted that materials and services capital is going down and that video lottery has not changed.
§ Public Safety
Youth Services. Heaton stated that there have been quite a few changes. She said personnel is up slightly, M&S is up and revenue is up. Heaton said that Youth Services has moved into their new building, increasing the HVAC budget. Bill Van Vactor, County Administrator, noted that there will be increased costs for maintenance inside the building. Brown noted that the video lottery dollars going for the court school will free up GF money for use for the HVAC systems but is not guaranteed forever and the department should realize that it may go away.
District Attorney. Garnick stated that this budget makes no adds and reflects one position reduction, which is in the proposed budget. He said two senior positions retired and there has been a reorganization with the lapse.
Justice Courts. Garnick said that changes have been driving costs up, noting a reclassification of a clerk to a supervisor. He stated that the Elected Officials Compensation Board recommends a salary increase. Garnick said that each court would see increases but noted that M&S is flat. He said the fiscal transfer line is a reflection of revenue over and above what it takes to support the program and noted that the general fund has been subsidizing this program. He said Oakridge and Florence cannot support their own costs because there is less activity in those courts and that the Central Lane Justice Court is transferring money to help them.
Brown requested copies of the classifications for Justice of the Peace and a note of what is different now. Garnick distributed material and minutes from the Compensation Board (see material on file).
Sheriff’s Office. Utecht noted that there is a one-page explanation of how the Sheriff's Office went through its budget process this year (see material on file). She said they did prepare their budget and meet directives and they revamped their entire office. Utecht said they made sure every program accounted for all its costs. She said two positions were eliminated because they did not generate enough revenue and that INET was also eliminated. Responding to Brown, Sheriff Jan Clements explained how the INET programs works, noting that they used to have three positions but lost two through attrition. He explained why he felt he had to offer this position as a cut. Weeldreyer voiced her concern and asked that they consider all other options.
MOTION: Tentative approval of the General Fund proposed budget.
Morrison MOVED. Brown SECONDED. VOTE: 10-0.
Holser voiced concern about the time allowed for questions. Brown stated that she felt decisions were made at a Leadership Team meeting before the proposed budget was presented to the Budget Committee. She said it seemed to be in concrete and declared she strongly objects. Sorenson responded to Holser's concerns by saying that this is the time to ask questions and encouraged anyone who wished to do so, to ask now. He explained that although decisions were made at the Leadership Team meeting, they were only for a "proposed" budget. Sorenson said they decided not to make big cuts this year while they waited for the results of possible federal funding.
Status Quo - No issues or major changes:
Special Revenue and Services Fund. Garnick stated that this fund is going down. Brown noted two different amounts on LCOG dues and asked for a correction by next week.
County School Fund. Heaton noted that this is a pass-through fund to the County schools.
Special Obligation Bond Retirement Fund and the General Obligation Bond Retirement Fund. Heaton said these funds are decreasing slightly, explaining that these are the amortization of bonds and payment of bonds.
Juvenile Construction Fund. Heaton said most of the construction money has been drawn down with a little left for land or other purchases if the board decides to do so.
Enterprise Bond Retirement Fund. Heaton said this is the amortization and payoff of the bonds.
Self-Insurance Fund. Heaton explained that this is a pass-through fund for risk management insurance.
PC Replacement Fund. Garnick stated that the PC replacement fund is increasing by 3% which is the actual amount departments are paying into the fund. Gary Ingram, Information Services Director, stated that most PCs are replaced every three years, noting that high-powered ones are replaced every 2 ½ half years.
PC Replacement Fund. Garnick stated that RIS is located within the Information Systems’ fund. He said the budget is going up because all requested add packages were included. He explained this was necessary to give them budget authority. Garnick said this is needed because they are a regional agency and if other partners come up with funding during the year to do various projects, they will need to have the go ahead to receive and expend those funds. Garnick stressed that this does not obligate the County in any way. Garnick said the budget is basically status quo.
Special Revenue and Services Fund. Utecht said this fund accrues interest from different investments and revenue from foreclosed properties.
Capital Improvement Fund. Utecht stated that there are no issues but pointed out that the program resources and expenditures sheet does not match the budget sheet due to $14,000 that is part of general expense.
Animal Regulation Fund. Utecht said this is a status quo budget, noting that material and services have doubled but only amount to approximately $2,000. David Suchart, Management Director explained that they were for engineering and architectural services.
Health and Human Services Joint Social Services Fund. Garnick stated that the overall budget is .15% higher than the current year. He said they have managed changes internally, noting that they have had to absorb the increases in health care costs, PERS and salary increases. Garnick said that as these costs continue to go up, it will be harder for the grant-funded programs which don’t always receive funds sufficient to cover all these costs.
J.T.P.A. Fund. Utecht stated that department is fully funded by the JTPA Fund and has to be balanced. She said that there is a 1.5 FTE reduction because a grant is ending. Utecht noted an increase in material and services which is accounted for because a portion of their staff is moving to a new location to combine with state agencies in order to provide a one-stop service.
Fair Board COP Debt Service Fund. Utecht said the Fair Board operates on a full accrual basis whereas the County operates on a modified accrual basis. She said they did try to bring the numbers in line with the numbers the auditor for the Fair Board uses in its annual audit. She said this will make them more consistent. Utecht said there were no outstanding issues with any of the Fair Board funds this year. She explained, however, that the independent auditor has made the recommendation that next year the Fair Board fund and the Fairgrounds Construction Fund be folded into one fund because is a fair amount of flow between the two funds in the course of the ongoing projects.
Fair Board Fund. No outstanding issues (see above).
Fairgrounds Construction Fund. No outstanding issues (see above).
Special Revenue & Services Fund. Heaton stated this is the fund that is used as a holder of donations used for items for youth that cannot be purchased out of the general fund. She said funds are disbursed on Chuck Ryer's approval and are an allocation of their budget. Ryer, Assistant Director, Youth Services, explained that it may be used for things like glasses and dental work.
Liquor Law Enforcement Fund. Garnick stated that there are no real changes.
Special Revenue and Services Fund. Utecht stated that money for this comes from the Drug Enforcement Agency with a small amount from vending machines and is used for employee recognition and training. She explained that personnel increases are due to overtime and benefits related to overtime.
Dwyer requested a list showing the line staff to supervisory ratio - how many; how does it compare to other counties; do they have support staff like secretaries and assistants and, if so, how many?
Corrections Commissary Fund. Utecht said this is the fund where the monies are held in trust for inmates for items not supplied to them.
Funds with issues or major changes:
Juvenile Justice Center. This was discussed early. There were no questions.
Intergovernmental Services Fund. Utecht noted that the only significant change in this fund is that material and services has dropped because telephone services previously paid for out of this fund are now charged directly to the departments by LCOG.
Management Services. Utecht noted that the County Clerk's fund is a new fund this year based on state law that now requires that 5% of all fees collected be put into the County Clerk's fund for records, storage and retrieval systems.
Animal Regulation Authority Fund. Utecht stated that there is an add package for .5 FTE and that is only in the event that Eugene pays for the position.
Capital Improvement Fund. Utecht stated that while there are limited dollars in this fund, there is a long list of things that need to be done. She said there is a group working on a facilities plan to prioritize how to allocate the $985,000. She said this plan can be provided to this committee if requested.
Health and Human Services Fund. Garnick stated that this is primarily the grant-supported section of the department. He said they had to take a number of reductions in the proposed budget to live within available dollars, including cuts in Parole & Probation, Domestic Violence unit, misdemeanor supervision, sex offenders program and communicable disease.
Parks and Open Spaces Fund. Heaton stated that the decreases in revenue are expected. She said there is a proposed add (Car Rental tax), which will be discussed under the Additions section
General Road Fund. Heaton said this fund did have an issue but has been resolved.
Public Land Corners Preservation Fund. Heaton said this would be discussed under the section on Additions.
Solid Waste Disposal Fund. Heaton stated that they have a series of adds which will be discussed. She said they would be giving an update on the system benefit charge and an equipment request.
Motor and Equipment Pool Fund. Heaton said this is in here by mistake. There are no issues.
General Road Fund. Utecht noted because department direct and indirect were allocated out this year, there is an increase in materials and services which is a direct result of that overhead allocation. She said that because of that allocation, there has been some discussion between Public Works and the Sheriff's Office with regard to the weighmaster and inmate work crew programs, which are funded by the General Road Fund. Utecht said there may be continued discussion on where the weighmaster position may end up.
Motor and Equipment Pool Fund. Utecht stated that this is on the list because the Internal Auditor will be doing a review on how motor and equipment pool services are provided because both the Sheriff's Office and Public Works have a fleet service.
MOTION: Tentative Approval of proposed budgets for non-general fund departments. Green MOVED. Morrison SECONDED. VOTE: 10-0.
VI. NON-GENERAL FUND ADDS
Heaton noted that there is an add worksheet for the members to use.
Public Works. John Goodson, Public Works Director, discussed the car rental tax proposal, noting that Bob Keefer, Parks Manager, is participating in the Pacific Program this week. Goodson explained that the car rental tax forms the basis for the Parks’ operating budget. He said the tax was enacted in 1985 and is currently at a rate of 10% with 86% of the collected tax going to Parks and 14% to the general fund. Goodson stated there are exemptions for vehicles that were rented as replacements rather than as a tourist vehicle. He said that, in addition, there is an exemption for 10-passenger or greater vehicles. Goodson noted that the exemptions in the last four years have nearly doubled. He stated that exemptions in Lane County have grown to about 21% or just a little over $1 million in fiscal year 93/94 to about $3.3 million in FY 98/99. Goodson explained that in the last five years, gross rents have gone up 65% but actual tax receipts Lane County receives have only gone up 35.5%. He said the ordinance being proposed by Keefer would eliminate the exemption for replacement vehicles and 10-passenger and greater vehicles. Goodson stated that the formula would be changed from 86% for Parks to 76% Parks and 24% general fund. He said this would cover a shortfall that Parks is expecting.
Sorenson noted that there would be a public hearing on this on May 10, 2000. He also noted that this ordinance could be amended if they find the projections are working and the percentages need adjusting.
Responding to Dwyer, Heaton stated that the $114,000 represents 76% of the increase. She said that she has not prepared an add package for the 24% but noted that it would go into the general fund discretionary.
MOTION: To approve the Car Rental Tax addition. Sorenson MOVED, Holser SECONDED. Green asked how they could approve this before the public hearing. He said there should not be a tentative decision made before people have a chance to testify at the public hearing.
Sorenson withdrew his motion.
MOTION: That the Budget Committee recommends passing this on to the Board of Commissioners and to a public hearing. Sorenson MOVED, Holser SECONDED. VOTE: 9-1. Green dissenting. He noted that the Board has already done a reading and set a public hearing.
Waste Management. Ken Sandusky, Waste Management Manager, stated that revenues are up. He noted that last summer the Board passed an ordinance allowing a system benefits fee in order to bring waste and revenue back into Lane County’s system. Sandusky noted that the first two adds are for things that have been needed for years but have not been purchased due to revenue shortages. He reviewed the four additions. He said they used to purchase ten drop boxes every year but have not purchased any in four years and are desperately in need of them. Sandusky said the second add is for a 1.0 FTE enntry level position in the Special Waste program, noting that they are down to two people from three and would like to add a person back. He said the third add is for a much needed tarping machine. Sandusky stated that the last add is for halftime Road Maintenance 3 position which has been in the budget for three years. He noted a lawsuit is pending on the new system benefits charges.
MOTION: Approval of all four additions in Waste Management.
Sorenson MOVED Brown SECONDED. Morrison voiced concern about adding FTE due to the lawsuit. She suggested waiting until next year to see what happened with the lawsuit. Sorenson said there is money independent of system benefits charges for these additions. Sandusky explained that most of the revenue they are receiving is from the waste that is staying in Lane county and not from the actual fee.
VOTE: 9-1. Morrison dissenting.
Deodedic Base Station. Bob Ezell, County Surveyor, explained the geodedic base system. He said that with the satellite signals, they can measure distance in surveying. Ezell said this request is for a base station for the service building which will be a static station and will serve the engineering, road surveying, solid waste department and geographical information systems and is jointly funded by the road fund and the corners fund. Heaton clarified that of the $26,000 addition, $13,000 is in the road and $13,000 is in the corners fund so approval would be for two different funds.
MOTION: Approval of the GPS Geodedic Base Station. Weeldreyer MOVED, Sorenson SECONDED.
Portable scales for weighmaster. Schulz briefly explained this item, noting that funding is through the road fund.
Trailers for Inmate Road Crew. Paul Sachet, Corrections Division, noted that trailers were rebuilt four years ago by funds saved through material and services and are not covered by a sinking fund. He said that it is time to replace them.
Radio system, Sinking Fund and Support. Schulz stated that the radio system has a non-compliance issue related to the FCC and by 2003 will need to be digital.
MOTION: Approval of the Portable Scales for Weighmaster; Trailers for Inmate Road Crew and Radio System, Sinking Fund & Support additions.
Dwyer MOVED, Brown SECONDED. Van Vactor noted that the radio sinking fund is not funded in the general fund. VOTE: 10-0.
Animal Damage Control. Garnick stated that this is a request from the U.S. Animal Damage Control Services for Lane County to increase its portion by $4,000 for predator control. He explained that in the past it has come from the video lottery reserve.
MOTION: To not fund this add for animal damage control out of video lottery dollars.
Sorenson MOVED, Morrison SECONDED. Morrison voiced concern regarding the reasoning for funding this by video lottery dollars.
VOTE: 5-4, Green, Holser, Weeldreyer and Dwyer dissenting. Jones abstaining.
Motion fails. Bell suggested that this be the only item on this page to bring back for discussion. Van Vactor said that he will have Jack Spence address Weeldreyer's concerns about economic development in a letter.
This item will come back next week for further discussion.
There being no further business, this meeting adjourned at 9:05 p.m.
Zoe Gilstrap, Recording Secretary