MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Wednesday, May 16, 2001

Council Chamber

Members Present:  Susan McLain (Chair), Carl Hosticka (Vice Chair), Bill Atherton, David Bragdon, Rex Burkholder, Rod Monroe, Rod Park

Members Absent:  None

Chair McLain called the meeting to order at 2:09 PM.

1.  Consideration of the Minutes of April 12 and 17, 2001 Budget and Finance Committee Meetings.

Chair McLain noted that the minutes from April 17 had been corrected. The date had changed from the original date of April 18, 2001. Councilor Burkholder noted a typo in the April 17 minutes vote record for Council Amendment #1, the vote should be shown as 4 aye/3 nay/0 abstain. Minutes were corrected to so read.

2.  Ordinance No. 01-899 An Ordinance Amending the FY 2000-01 Budget and Appropriations Schedule for the Purpose of Adopting a Supplemental Budget for the Zoo Operating Fund for the Fiscal Year Beginning July 1, 2000 and Ending June 30, 2001; and Declaring an Emergency.

Kathy Kiaunis, Oregon Zoo Assistant Director, spoke to the ordinance. Councilor Atherton asked about Zoo Capital Fund outlay of negative $116k. Ms. Kiaunis said the assumption that some outlays anticipated to be capital turned out to be either unnecessary, or were actually materials and services items rather than capital outlay.

3.  Ordinance No. 01-903 An Ordinance Amending the FY 2000-01 Budget and Appropriations Schedule by Transferring Appropriations from Contingency to Operating Expenses in the Information Technology Department within the Support Services Fund; and Declaring an Emergency.

David Biedermann, IT (Information Technology) Director, spoke to the ordinance. Councilor Hosticka asked about its impact on FY 2000-01 budget assumptions. Tony Mounts, ASD (Administrative Services Department) Financial Planning Manager, said that in the case of the Support Services Fund, where part of the contingency fund would be used, the change in balance would be brought forward as a technical amendment at the June 19 meeting.

4.  Ordinance No. 01-891A For the Purpose of Adopting the Annual Budget for Fiscal Year 2001-02, Making Appropriations, and Levying ad valorem Taxes, and Declaring an Emergency.

5.  FY 2000-01 Third Quarter Financial Report

Mr. Mounts spoke to Third Quarter FY 2000-01 through March 31, 2001. A copy is included in the public record of the meeting. Councilor Hosticka asked if the amount designated as contingency was actually allocated there. Mr. Mounts responded that much of that amount was associated with the closure of the St. Johns Landfill. Money in the unappropriated fund balance could not be touched during the current budget year, but was available if an environmental disaster should occur. Councilor Park asked if it was true that reduction of tonnage was partially due to increased recycling as well as reduced economic activity. Chair McLain noted that tonnage was down at both Metro and non-Metro operated facilities. Mr. Mounts said 25% of the drop was due to recycling and 75% was due to an overall drop in activity.

Chair McLain noted that last year financial staff had been asked to work with Oregon Zoo staff, but she had seen no improvement in their understanding of the difference between maintenance and capital improvement projects. She requested a review as to whether any improvement had occurred 6-months after the CIP process was complete. Mr. Mounts said ASD would continue working with the Zoo to improve this process. Councilor Burkholder asked about the transfer in the Zoo Capital Fund. Karen Feher, ASD Budget Analyst, said part of the improved operational profits went into the Capital Fund.

Chair McLain asked if there were any grants contained in the Planning Fund that were definitely not coming in this year under Community Planning, and what the operating impact would be. Councilor Hosticka asked about $2.3 million of other revenue that had been budgeted, but not collected. Mr. Mounts said he would investigate and report back at the next meeting, May 30. Councilor Park asked for a breakout between Transportation and Community Planning in the Planning Fund. Mr. Mounts agreed to make that change.

Mr. Mounts next spoke to MERC Operating Fund Summary of Budget Adjustments. A copy is included in the public record of the meeting. Councilor Atherton asked if the General Revenue Fund allowed expenditures to buy equipment such as tables and dishes. Mr. Mounts said that based on Oregon law Expo (Portland Metropolitan Exposition Center) could have bought that equipment, which is an integral part of operation if Metro had issued the bonds. Since OECCD (Oregon Economic CC Department), issued the bonds, their rules allowed reimbursement only for attached equipment, e.g. stoves, walk-in freezers, etc. However the interest earnings on the bonds after debt service could be so used. Councilor Burkholder asked for a comparison in spending by year in charts. Mr. Mounts agreed to pull it together for the committee.

Mr. Mounts discussed FY01-02 Budget Debrief, requested by the Chair. A copy is included in the public record. Chair McLain asked that the committee review the attached Budget Process Questionnaire and get back to Mr. Mounts with any changes/concerns.

6.  Councilor Communications

Councilor Bragdon applauded the chair for the excellent preparation she had done with staff that made the entire budget process flow so smoothly.

Chair McLain adjourned the meeting at 3:07 PM.

Respectfully submitted,

Pat Weathers

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF MAY 16, 2001

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

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