MINUTES OF THE METRO COUNCIL FINANCE COMMITTEE MEETING

Wednesday, June 3, 1998

Council Annex

Chair McCaig called the meeting to order at 3:45 PM. A quorum of the membership was not present. Chair McCaig said staff would report to those committee members present on each one of the ordinances, and at the conclusion of the meeting, the committee will make a recommendation that the presiding officer place these items on the full Council agenda, for action at the full Council level.

1.  CONSIDERATION OF MINUTES OF THE APRIL 15, 1998 BUDGET COMMITTEE MEETING AND THE APRIL 23, 1998 FINANCE COMMITTEE MEETING

Due to the lack of a quorum, a vote to adopt the minutes did not occur.

2.  ORDINANCE NO. 98-740, AN ORDINANCE AMENDING THE FY 1997-98 BUDGET AND APPROPRIATIONS SCHEDULE BY TRANSFERRING $45,469 FROM CAPITAL OUTLAY TO DEBT SERVICE IN THE GENERAL REVENUE BOND FUND FOR THE PURPOSE OF CORRECTING A TECHNICAL ERROR, AND DECLARING AN EMERGENCY

Craig Prosser, Financial Planning Manager, appeared before the committee to report on Ordinance No. 98-740, which will correct a technical error in the FY 1997-98 budget. The ordinance will permit Metro to pay debt service on the loan to build the Metro Washington Park Zoo parking lot. The substance of Mr. Prosser’s report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record.

Mr. Prosser explained an additional debt service issue that will also pertain to agenda items 5 and 6. He said these actions described in these agenda items will adjust the debt service payment and relate it to the Flex Lease. He said the Flex Lease is completed each year, and debt service payments are set up on a semi-annual payment. He said one payment is due to the underwriter June 15, 1998, however, it is for a debt service payment that they make to the borrower on July 1, 1998. He said in June 1996, that payment was taken from the FY 1997-98 budget. Therefore, only one payment was made in FY 1996-97, and in FY 1997-98, three payments will be made. He said the accounting department has been apprised of their error, and are now aware of which fiscal year to charge the June 15 annual payments.

3.  ORDINANCE NO. 98-746, AN ORDINANCE AMENDING THE FY 1997-98 BUDGET AND APPROPRIATIONS SCHEDULE TO RECOGNIZE $44,000 IN NEW GRANT REVENUES, RECLASSIFY CERTAIN EXPENDITURES, TRANSFER FUNDS FROM THE REGIONAL PARKS FUND CONTINGENCY TO VARIOUS LINE ITEMS WITHIN THE FUND, AND DECLARING AN EMERGENCY

Charles Ciecko, Director of Regional Parks and Greenspaces, gave a report on Ordinance No. 98-746, which will amend the FY 1997-98 budget by making changes to the Regional Parks fund. The substance of Mr. Ciecko’s report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record.

4.  ORDINANCE NO. 98-747, AN ORDINANCE AMENDING THE FY 1997-98 BUDGET AND APPROPRIATIONS SCHEDULE TRANSFERRING $4,000,000 FROM OPEN SPACE FUND CONTINGENCY TO CAPITAL OUTLAY IN THE OPEN SPACES FUND IN THE REGIONAL PARKS AND GREENSPACES DEPARTMENT TO PROVIDE FUNDING FOR UNANTICIPATED EXPENDITURES, AND DECLARING AN EMERGENCY

Mr. Ciecko reported on Ordinance No. 98-747, which will amend the FY 1997-98 budget by transferring $4 million from the Open Space Contingency to Capital Outlay to provide adequate funds for land acquisition. He said this is because staff has closed more sales than anticipated. The substance of Mr. Ciecko’s report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record.

5.  ORDINANCE NO. 98-749, AN ORDINANCE AMENDING THE FY 1997-98 MERC OPERATING FUND BUDGET AND APPROPRIATIONS SCHEDULE FOR THE PURPOSE OF TRANSFERRING APPROPRIATIONS TO INCREASE OPERATING EXPENSES, DEBT SERVICE AND CAPITAL OUTLAY, AND DECLARING AN EMERGENCY

Mark Williams, MERC General Manager, appeared before the committee to report on Ordinance No. 98-749 which will amend the FY 1997-98 budget by transferring appropriations to increase Operating Expenses, Debt Service and Capital Outlay. He said Mr. Prosser has described the major outcome of the ordinance in his presentation on agenda item number one above. The substance of Mr. Williams’ report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record.

6.  ORDINANCE NO. 98-751, AN ORDINANCE AMENDING THE FY 1997-98 BUDGET AND APPROPRIATIONS SCHEDULE IN THE SUPPORT SERVICES FUND AND IN THE BUILDING MANAGEMENT FUND FOR VARIOUS FUNDING PURPOSES, AND DECLARING AN EMERGENCY

Scott Moss, Risk Management/Purchasing/Benefits Manager, appeared before the committee to report on Ordinance No. 98-751, which will amend the FY 1997-98 budget to compensate for the shortfall in anticipated revenues for the paid parking lot at Metro Regional Center. The substance of Mr. Moss’s report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record. Chair McCaig asked Mr. Moss to meet with councilors, specifically Councilor Morissette and Councilor McLain, to discuss this problem.

7.  ORDINANCE NO. 98-754, AN ORDINANCE AMENDING THE FY 1997-98 BUDGET AND APPROPRIATIONS SCHEDULE BY TRANSFERRING $10,000 FROM CONTINGENCY TO THE OFFICE OF GENERAL COUNSEL PORTION OF THE SUPPORT SERVICES FUND FOR VARIOUS FUNDING PURPOSES, AND DECLARING AN EMERGENCY

Daniel B. Cooper, Metro General Counsel, appeared before the committee to report on Ordinance No. 98-754A. He distributed a revised version of the staff report and ordinance, the revision increases the amount of the requested expenditure by $2,000. Funds will be expended for remodeling, ballot title challenge expenses, and LUBA expenses. The substance of Mr. Cooper’s report is contained in the staff report to the ordinance, a copy of which is included as part of the meeting record.

8.  RESOLUTION NO. 98-2653, FOR THE PURPOSE OF AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE/PURCHASE AGREEMENT, DECLARING INTENT TO REIMBURSE EXPENDITURES, AND RELATED MATTERS

Mr. Prosser reported on Resolution No. 98-2653 which will put in place lease purchase financing for the network upgrade project. He said FlexLease is not currently available because the administrators are currently in the process of changing underwriters. This financing agreement has been put out to bid, and the Bank of America quoted a very favorable rate, that is lower than FlexLease.

Councilor McFarland said that by concurrence of the committee Chair McCaig is authorized to request the presiding officer to advance these items to the full Council on the basis that a hearing was held on these items, although a quorum of the membership was not present.

There being no further business before the committee, Chair McCaig adjourned the meeting at 4:05 PM.

Respectfully submitted,

Lindsey Ray

Senior Council Assistant

C:\Micro Focus Content Manager\WebDrawerWorkpath\TEMP\HPTRIM.576\t000GIY0.doc