MINUTES OF THE METRO COUNCIL BUDGET & FINANCE COMMITTEE

Wednesday, February 13, 2002

Council Chamber

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

Members Absent:  Councilor Atherton arrived at 1:52 p.m.

Chair Burkholder called the meeting to order at 1:45 p.m.

1.  Consideration of the Minutes

Motion:  Councilor McLain moved to adopt the minutes of the Budget and Finance Committee meeting of January 23, 2002.

Vote:  Councilors Burkholder, Bragdon, McLain and Monroe voted to adopt the minutes as presented. The vote was 4 aye/0 no/ 0 abstain, and the motion passed. Councilor Atherton was absent from the vote.

2.  Report from the Chief Financial Officer

Jennifer Sims, Chief Financial Officer, discussed the Economic Indicators Report, which was produced jointly by the Data Resource Center and the Administrative Services Department in response to Council and Cabinet concerns about the economic downturn. She said that Metro would monitor the economic situation and produce monthly electronic reports until the economy improved, at which time the report would be discontinued.

Ms. Sims reported that KPMG had been hired through an RFP process to assist accounting staff in complying with GASB34. She said that the amount of the contract with KPMG was just under $50,000 and required about 1.5 FTE staff for the gearing up process and about .5 FTE staff to maintain the work identified by KPMG.

Ms. Sims said that the FY 02-03 proposed budget has been finalized and the Executive Officer is scheduled to deliver his proposal at the March 7, 2002 Council Meeting.

A summary of Ms. Sims’ report is attached to this record.

3.  Second Quarter Financial Report

Casey Short, Manager of the Financial Planning Division, summarized the FY 2001-02 Second Quarterly Report, an overview of which is attached to this record. He explained that the report was organized into four sections that summarized operating funds, capital funds, excise tax, and spending versus appropriations. He said that agency revenues were higher in the second quarter than in the first quarter and that expenditures remained constant, and he reviewed the excise tax portion of the report in detail. Councilor McLain asked about the potential of having less waste coming to our facilities and more to non-Metro facilities in terms of more opportunities for recycling and partnering. Both she and Chair Burkholder asked whether the drop in REM excise tax collections could be attributed to a shift in the waste flow from Metro to non-Metro facilities. Doug Anderson, REM Financial Manager, responded that the decrease was due to the economy, not the shift to non-Metro facilities.

In response to a question from Councilor Atherton, Mr. Anderson said that the base tipping fee rate set by the Rate Review Committee last fall is on track.

Although this item was listed as an action item on the agenda, it was actually for discussion purposes only, and was not voted on by the committee.

4.  Ordinance No. 02-934, For the Purpose of Amending the FY 2001-02 Budget and Appropriations Schedule Transferring $31,000 from Contingency to Operating Expenses in the Building Management Fund, and Declaring an Emergency

Jennifer Sims summarized the three purposes of Ordinance No. 02-934. She said the first purpose was to conduct a visitor management pilot project to provide a more secure environment in the Metro Regional Center. A temporary staff person would be hired on a trial basis to improve the management of visitors to the Metro building and to take over a variety of non-security tasks currently performed by security staff. The second purpose was to pay for additional security cameras and recording equipment to remedy the current inadequate coverage in the lobby area. The third purpose was to provide enhancements for the hearing-impaired in the Council Chamber and in Meeting Room 370A&B. The $31,000 cost would come out of contingency and would not increase total appropriations.

Chair Burkholder asked if this project had been figured into the Executive’s 2002-03 budget. Ms. Sims said that it had not because it is a pilot. The project would be assessed at the end of the trial period to ensure that it was effective. If the decision were made at that point to continue the project, an amendment to the budget would be necessary to pay for it.

Chair Burkholder suggested that Metro consolidate sales operations, such as parks permits or reservations and contractors’ licenses, in the Data Resource Center to provide one-stop shopping and prevent the need for some visitors to come further into the building. He asked if there were a plan to manage large numbers of people attending public hearings in the building. Ms. Sims said that details such as these would be worked out during the pilot project. Councilor Burkholder said that while Metro needs to be cognizant of security issues, it should also be careful not to cut itself off from the people it serves.

Motion:  Councilor Monroe moved Ordinance No. 02-934 for approval.

Vote:  The committee unanimously approved Ordinance No. 02-934 without revision. Councilor Bragdon will carry the ordinance to the full Council.

5.  Committee Work Plan and Budget Meeting Schedule

The committee reviewed the revised Budget and Finance work plan and noted that additional meeting dates would be added on March 12, April 1 and April 9 if needed. Councilor Bragdon pointed out that the identification of budgetary impacts related to transition would occur earlier than shown in the work plan. The committee approved the work plan, with the one revision noted, by consensus.

6.  Identification of Councilor Global Budget Issues and Information Needs

Chair Burkholder deferred discussion of the global and programmatic issues to be used in the budget review process until all the councilors have had a chance to add their input. He said that he would send a second request to councilors for their input before compiling a master list of issues. He noted that the screening factors presented by Jennifer Sims at the January 23 meeting have been refined and given to the Budget Buddies group to assist them in developing the budget.

7.  Councilor Communications

There being no further business before the committee, Chair Burkholder adjourned the meeting at 2:30 p.m.

Respectfully submitted,

Claudia Wilton

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF JANUARY 23, 2002

2/13/02    Chief Financial Officer Report            021302bdg-01

2/13/02    Overview of Metro Quarterly Report, Second Quarter, FY 2001-02  021302bdg-02