MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Thursday, April 20, 2000

Council Chamber

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

Members Absent:  None  

Also Present:    

Chair McLain called the meeting to order at 3:15 P.M.

1.  Consideration of the Minutes of April 5, 2000 Committee Meeting.

The minutes were not considered at this meeting.

2.  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 noted that the meeting was reconvened after recessing on April 17.

Chair McLain directed attention to a packet of amendments. She said the Committee would begin with Balanced Budget Amendment #1. A copy is included in the public record. Peggy Coats, Council Analyst, said that the amendment would restore balance to the General Fund, make sure there were no further impacts to it and that any unanticipated revenues coming in would be used as reserve for it. If all amendments forwarded by the Committee with a do pass recommendation were approved by Council, the drain on the General Fund would be $159,090. She said that ASD (Administrative Services Department) believed that there would be approximately $205k of unanticipated revenue due to an increase in excise tax revenues and $90k under expenditures in the Council budget. This amendment aimed at balancing the budget and allocating unanticipated revenues to reserve needs in the General Fund.

Chair McLain asked for the Committee’s support for a balanced budget. As to GM #2, her amendment to produce a watershed planning handbook for $35k, she had withdrawn it despite of her belief in its importance, due to other pressing issues. Councilor Monroe said that he still felt strongly that Metro should continue its membership in NARC (National Association of Regional Councils) in order to assist other regions in learning the benefits of elected regional government. He asked what the figure was for NARC dues. John Houser, Council Analyst, responded that it was $11K. Councilor Monroe said he would like to explore ways to find these funds. Chair McLain asked if he had any other suggestions for cuts, and pointed out that the majority of the money was not in the bank at this time, but only projections. Councilor Monroe said he was willing to look at anything. Chair McLain said that she did not want to make this decision similar to deciding which child to save; she suggested that if the projected revenues did come in, it might be possible to split the payments in two, one at midyear. Councilor Monroe said that he wanted to work within the Committee process, but he felt strongly about continuing Metro's participation. Councilor Atherton asked if NARC was more important than the MBE/WBE/DBE/ESB (Minority/Women/Disabled Business Enterprise and Emerging Small Businesses) program. Both Chair McLain and Councilor Monroe responded no.

Councilor Atherton reported that he and Mr. Houser may have found $25k to help on the Willamette Trolley Trail project. Councilor Monroe said he still needed $4k. Chair McLain asked Mr. Houser to check on budgeting NARC dues into two payments. Councilor Monroe also asked him to revisit the budget to see if there was any other area where $4k could be found. Chair McLain suggested adding a footnote indicating Councilor Monroe would like to use the $7k toward NARC dues and would seek other sources for funding the balance in the General Fund (amendment to BB #1.) Councilor Atherton said that he would vote for this amendment, but would continue looking for funding for a feasibility analysis for the Willamette Greenway. Councilor Monroe agreed that this was an important project.

Councilor Atherton said he would like to include an amendment to delete the $7k for the Howell Territorial Park Celebration be deleted by amendment and asked for direction on when to present it. Kathy Rutkowski, Financial Analyst, noted that this was RP (Regional Parks) #5, a technical amendment, passed at the April 6 Budget meeting. Chair McLain noted that this would change the revised cumulative impact line from $910 to $7,910. Ms. Coats added that net impact would also go from $115,910 to $122,910.

Chair McLain asked for direction on GF #1. A copy is included in the public record. Mr. Houser said that he felt that the passing of BB #1 took care of GF #1.

Chair McLain went on to MERC #4. A copy is included in the public record.

Chair McLain said that this amendment honored MERC amendment #3 which addressed the $175k subsidy, but allowed Metro to go forward in its budget process to Council while MERC (Metropolitan Exposition-Recreation Commission) worked on cutting their budget to meet the reduced subsidy. MERC Budget Committee would meet April 24 to discuss cuts. The Metro Budget Committee would meet April 26 at 1:30 PM if needed. She understood that MERC would offer their revised budget at this meeting if possible. Councilor Monroe said he wanted to make sure that everyone understood that MERC and Metro had agreed on the number for the cut package, but not to the specific cuts. Metro had included a list of suggested cuts, but MERC might choose to accept these cuts, develop their own list, or accept some Metro cuts and suggest other cuts. The critical point was that Metro would review their recommendations and agree or not. If not, Metro had final authority over the MERC budget. He pledged an amicable resolution of any differences, but made it clear that Metro held the purse strings and would not give them up.

Chair McLain said that to her knowledge all technical amendments were dealt with. Ms. Rutkowski said they were, but there could be a second round within the limitations approved by the TSCC (Tax Supervising & Conservation Commission). Councilor Monroe asked if the limitation was 10%. Ms. Rutkowski agreed it was 10% of each fund's appropriation. Chair McLain asked if there was any other known budget work (amendments) out at this time from any of the Metro departments. The response was negative. Chair McLain said that she was making sure that everyone was at the same point in the process. She thanked everyone for their work in making this process work. Presiding Officer Bragdon had scheduled a retreat on May 30; she had requested those discussions to include the budget and its basic foundational funding. She said that Budget Committee meetings will continue in May, but would be used to set the scene for discussion at the retreat. No decisions would be made prior to the retreat, just pre-work to consider possible options.

Councilor Monroe said that he believed there was an excise tax amendment still in REM (Regional Environmental Management) Committee, that would change the charge from 8.5% to a per ton charge, as well as some other changes. It would assist in flow control management. He asked when that amendment would come forward and if the Budget Committee would have a chance to review it. Chair McLain understood that the timeline was end of May or beginning of June for consideration. At this time she did not know if it would come before this Committee. She suggested that the question be asked of the Presiding Officer. She felt that it would be helpful to this Committee to see it when reviewing possible new funding sources. Mr. Houser said Presiding Officer Bragdon had assigned the amendment to REM, not budget. That would have to be changed in order for it to come before the Budget Committee.

Councilor Monroe asked that this Committee formally request the Presiding Officer to refer that amendment to this Committee for review. He felt it was absolutely critical to the whole budget and finance process of this Agency that such an important amendment should be reviewed by this Committee.

Chair McLain said the next item of business was to consider adoption of Resolution 00-2916.

3.  Councilor Communications

Councilor Atherton offered an amendment to his fellow Councilors to read and solicited their comments/suggestions regarding unfunded mandates. He said he might offer this amendment at the April 27 meeting. He wanted to send a clear, unambiguous message to the State on this matter. Chair McLain asked if the intent was for Metro to send the State a bill for mandated services. Councilor Atherton said yes.

Chair McLain adjourned the meeting at 3:48 PM.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF APRIL 20, 2000

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

i:\minutes\2000\budget&finance/04200bdm.doc