MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Tuesday, April 11, 2000

Council Chamber

Members Present:  Susan McLain (Chair), Bill Atherton (Vice Chair), Jon Kvistad, and Rod Monroe

Members Absent:  None  

Also Present:  David Bragdon (Presiding Officer), Ed Washington, Rod Park

Chair McLain called the meeting to order at 3:27 P.M.

1.  Ordinance No. 00-847, For the Purpose of Adopting the Annual Budget for Fiscal Year 2000-01, making appropriations, and levying ad valorem taxes, and declaring an emergency.

Chair McLain thanked Mark Williams, Metropolitan Exposition-Recreation Commission (MERC) General Manager, and George Bell, MERC Chair, for their input to the Committee's thorough review of MERC. She felt that important issues had been raised that would result in improved support by Metro. An amendment package would be presented and discussed today. Councilor Monroe would be out of town for tomorrow's meeting, so he had asked that a decision be reached today. She asked the analysts to go over the details of the package.

Peggy Coats, Council Analyst, spoke to the two amendments, MERC #1 and #2. Copies are included in the public record. Chair McLain said she supported MERC #1 amendment because historically there had been a substantial gap between what MERC paid for Support Services and what Metro saw as the actual costs. The difference between these two figures had to be made up out of the General Fund. She said this document was a policy statement as to how long Metro would subsidize MERC and by how much. Councilor Washington agreed that the only difference between the two amendments was the dollar amount. He pledged to work with the Chair to come to agreement on one figure.

Councilor Monroe moved to amend the motion to delete the dollar amounts pending continued negotiation between Chair and Councilor Washington. Councilor Atherton asked for clarification; was the essence of the amendment to endorse the process, rather than the exact numbers. Chair McLain agreed that it was. Councilor Monroe thought it was the prudent thing to do after the Councilors’ success in reaching agreement on everything but the dollar amount. He had great faith that a compromise would soon be reached. Councilor Kvistad said he would not support the amended amendment; the Committee needed to set figures and make decisions. He supported the original MERC budget, but had been willing to compromise by supporting Councilor Washington's amendment. Councilor Bragdon said he felt the remaining differences could be discussed and resolved at Council. He appreciated everyone's hard work. This work would bring MERC and Metro closer by correcting an inherently unstable situation. He felt it would bring Metro closer to MERC while allowing MERC the independence to price facilities, and be active in the tourism and cultural marketplaces. He supported Councilor Monroe’s amendment.

Chair McLain said that she agreed with Councilor Kvistad on this subject. MERC needed to get on with their budget year. On the other side of the coin, all seven Councilors needed to vote on the MERC budget. If this amendment version made some Committee members uncomfortable, she would support a range between the two figures. She preferred a range to having no number in place at all. Councilor Monroe said he agreed; that had been his intent. Both Councilors’ reasons should be a part of a public dialogue. Councilor Atherton said that there was room for negotiation and agreed it was not an impossible task. Councilor Washington felt comfortable with the idea of further negotiation.

Chair McLain said it was important to start the process, but knew there would be further discussion at Council. She stated that the motion and its amendment would be voted on separately. Councilor Kvistad said that the Committee had been meeting for some time; it was time to move forward, set a number. There was still a lot of work to be done in order to come up with a balanced budget. Councilor Monroe said he was not prepared to vote for the higher figure, but would vote for the range. The lower figure would be more prudent, but he was concerned with providing a logical transition for MERC. He felt the range approach would allow time for discussion and compromise. Chair McLain said she was prepared to go forward with a neutral recommendation on the range. She was in favor of the lower figures, because, after all the discussion and review, she saw $379K of opportunity where cuts could be made to the MERC budget. She did not believe the higher subsidy was needed, and Metro had no money to spare in the General Fund.

Councilor Kvistad said it was important to go forward; today was a special meeting, noticed and attended with the idea of making these tough decisions. Set a number and so be it, it could be changed at Council. Councilor Bragdon said it was a remarkable accomplishment to have reached this agreement from where things stood 2 weeks ago. Reaching a firm number created no certainty that the Council might not arrive at a different number. Councilor Washington agreed that they had come a long way. He seconded the idea of the range because it would only be temporary. He asked the Committee to give the Chair and him a chance to resolve their differences. Councilor Monroe agreed that today's vote was not a final decision. There was no guarantee that any number they chose today would be the final answer.

Chair McLain pointed out that language in the amendment indicated that the whole issue of cost allocation would be taken up in the long-term segment of the Committee's review beginning in May. If MERC ended up managing more or fewer facilities, or if a facility's size changed, the cost allocation would be reexamined. Michael Morrissey, Council Analyst, suggested that some of the recommendations (noted on page 3 of the amendment) might be considered as budget notes when it went to Council. Councilor Washington agreed that these notes were a part of the package.

Chair McLain directed attention to the Fiscal Impact Summary. It is included in the public record. She reminded everyone that at the meeting tomorrow, April 12, the Committee would deal with Support Services Questions/Issues. John Houser, Council Analyst, asked the Committee to review his Issues and Questions for the Auditors office, IT (Information Technology) and ASD (Administrative Services Department). Tomorrow's meeting would be limited to discussion of questions and responses. Amendments would come forward at next Monday's meeting, along with General Counsel and Human Resources. Chair McLain said that any further technical amendments could be brought up April 17.

Councilor Kvistad asked if any decisions would be made tomorrow. Chair McLain said no, that the voting would take place April 17. Councilor Kvistad stated that he would not attend any further meetings where decisions would not be made. He found it an incredible waste of time for all concerned. Chair McLain said she felt the Committee had moved a long way today. It had been agreed that Financial Planning and Council staff would have time to review all amendments and present all of the financial implications to the Committee. That review required more than an overnight turnaround. She thanked the analysts and clerk for all their hard work.

3.  Councilor Communications

There being no further business before the Committee, Chair McLain recessed the meeting at 4:07 P.M.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF APRIL 11, 2000

The following have been included as part of the official public record:

i:\minutes\2000\budget&finance/04110bdm.doc