MINUTES OF THE METRO COUNCIL

BUDGET AND FINANCE COMMITTEE REGULAR MEETING

Wednesday, September 11, 2002

Metro Council Chamber

Members Present:  Rex Burkholder (Chair), Susan McLain, Rod Monroe

Members Absent:  David Bragdon (excused), Bill Atherton

Chair Burkholder called the meeting to order at 1:31 p.m.

1.  Consideration of the Minutes of the July 24, 2002 Budget and Finance Committee Meeting

The Chair heard agenda item #3 next.

3.  Ordinance No. 02-962, An Ordinance Amending the FY 2002-03 Budget and Appropriations Schedule for the Purpose of Transferring $72,000 from the Planning Fund Contingency to Capital Outlay to Provide Appropriation Authority for the Carryover and Completion of the TRANSIMS Computer Purchase; and Declaring an Emergency.

Kathy Rutkowski, Budget Coordinator for the Financial Planning Division, explained that this action was a housekeeping item to provide appropriation authority for a project that was carried over from FY 2001-02. She said that last year the Council authorized $300,000 for the Transims computer purchase. The entire purchase was not completed last year and so the department asked for the additional appropriation authority this year to complete the project.

Councilor Monroe agreed to carry the ordinance to the full Council.

2.  Report from the Chief Financial Officer

Jennifer Sims, Director of the Administrative Services Department, explained that the department was in the process of refunding the Open Spaces bonds, which would result in a half-million dollar savings per year to the region’s tax payers, totaling $8 million over the life of the bonds. She said they were also considering refunding the Solid Waste Revenue bonds, but they would need to consider all the management issues around the whole solid waste system first.

Ms. Sims reported that the PERS Board voted to update their actuarial tables effective 1/1/04 (effective date of retirement). She said that until they completed the rule making process, they would not know the effect on retirees. She also reported that PERS had delayed notification of the new PERS rate to December, 2002.

Ms. Sims’ comments are summarized in a handout, which is included as part of this meeting record.

Councilor Monroe mentioned that the Oregon State Senate recently passed a PERS reform measure and requested that, if the bill passed the House, the Council be notified of the ramifications. Ms. Sims said that Kathy Rutkowski was monitoring everything related to PERS and that they would keep the Council informed.

4.  FY 2001-02 Fourth Quarter Financial Report

Jennifer Sims briefly reviewed the operating fund, capital fund, excise tax, and spending vs. appropriations sections of the Quarterly Report (a copy of which is included in this meeting record). She pointed out that the figures contained in the report were unaudited second closing figures. She noted that both revenues and expenditures were lower than budgeted, at 89% and 86% respectively, and that excise tax revenue projections came within $12,000 of the actual revenue amount. She said that Metro would have approximately $910,000 in the discretionary general fund balance, approaching the goal of a million dollars set earlier, due in part to underspending in excise tax related areas, particularly in elections. She added that, although the excise tax projections for individual facilities and functions were off in some cases (the Convention Center was below projections and the Zoo above), the revenues balanced out. Chair Burkholder said that, although this was good news overall, it was important to be aware of the significant declines at some of the facilities.

Ms. Sims also noted that for the first time Metro was able to make a contribution to the Excise Tax Rate Stabilization Reserve in the General Fund in the amount of $67,000. She went on to say that interest rates were projected to be 5.5 percent and that the amount actually earned on the total portfolio was 3.2 percent. She pointed out one correction to the document: On page 12, under the enterprise revenue section, the figure 1.7% should have been 7%.

Councilor McLain said she liked the format of the report and found it to be a very useful document. She suggested including in writing some of the analytical nuances that Ms. Sims covered verbally in the committee meeting.

5.  Budget Assumptions Update and Discussion

The committee agreed to change two budget assumptions in light of new information received. The COLA inflation factor changed from 3 percent to 2 percent and the interest rate from 2.5 percent to 2 percent.

6.  Councilor Communications

Councilor Monroe said that he would not be able to attend the September 25 Budget and Finance Committee meeting because he would be out of the office.

There being no further business before the committee, Chair Burkholder adjourned the meeting at 2:05 p.m.

Prepared by,

Claudia Wilton

Council Assistant

ATTACHMENTS TO THE PUBLIC RECORD FOR THE MEETING OF SEPTEMBER 11, 2002