MINUTES OF THE METRO COUNCIL BUDGET WORK SESSION

Wednesday, February 24, 1999

Council Annex

Presiding Officer Monroe called the meeting to order at 2:05 PM.

1.  CONSIDERATION OF MINUTES OF FEBRUARY 10, 1999

2.  ORDINANCE NO. 99-793, FOR THE PURPOSE OF ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 1999-2000, MAKING APPROPRIATIONS, LEVYING AD VALOREM TAXES, AND DECLARING AN EMERGENCY

EXECUTIVE OFFICE BUDGET

Mike Burton, executive officer, appeared before the council to present the proposed budget for the executive office for fiscal year 1999-2000. A copy of the proposed FY 1999-2000 Metro budget containing the executive office budget is included as part of the meeting record.

Presiding Officer Monroe asked John Houser, senior council analyst, to review the changes to the executive budget that were recommended by Presiding Officer Monroe and Deputy Presiding Officer McLain. Mr. Houser distributed a memorandum dated February 23, 1999, entitled “Proposed Budget Amendments for the February 23 Budget Workshop” to the committee. A copy of this memorandum is included as part of the meeting record. Mr. Houser noted that the memorandum, which he wrote on behalf of the presiding officer and deputy presiding officer, outline the changes for all of the budgets under consideration at today’s meeting.

(Proposed amendment No. 1 to the executive office budget):The first recommended change pertained to the executive’s proposal to establish a centralized communications team. Specifically, $75,000 is budgeted in contracted professional services for this centralized unit, over which the presiding officer and deputy presiding officer believe council should have an approval role. Mr. Houser drafted a budget note that would amend the budget.

Presiding Officer Monroe asked Executive Officer Burton whether the proposed budget note would be satisfactory to him. Mr. Burton said it would. He clarified that the $75,000 is not new money, but rather money that has been identified in existing programs. He said there is no intent to change what is currently being done.

Proposed Budget Note:

A total of $95,000 has been allocated for contracted professional services within the public affairs and government relations section of the office of the executive officer. Of this total, $75,000 has been allocated for the general support of the communications and outreach activities of the new central communications team. These funds are not allocated for specific purposes or contracts. Therefore, the council directs that these funds shall not be expended until the proposed communications plan has been developed, submitted to, and adopted by the council. The plan shall include a proposal for the expenditure of these funds.

(Proposed Amendment No. 2 to the executive office budget): Mr. Houser said the second recommended change would be an adjustment to the salary of the executive officer to reflect a potential 6% salary increase, which would be required in the event of a corresponding increase by the Legislative Assembly of the salary of state circuit court judges. Presiding Officer Monroe said if the legislature comes in with a lower number, the excess amount budgeted would revert back to the general fund reserves.

Councilor Park asked about the restructuring of the executive office to include the chief operating officer. Mr. Burton said under the charter, he is responsible for the administrative actions and the execution of the policies of this agency, and that does not change as a result of the restructuring. He said the COO position was originally the chief administrative officer in the administrative services division. By moving this position to the executive’s office, the primary effect has been to achieve an excise tax savings. Mr. Burton said as an elected official, his first responsibility is his leadership role, and he is also responsible for managing the agency. He said he needs assistance managing the agency because it is a big organization, and he has directors in place to do that. He said he would not support a deputy executive position, because that role is not warranted. However, he said a role is needed to do preliminary staff work.

Councilor Atherton asked when the communications plan would be available. Mr. Burton said it would be complete within 30 to 60 days.

Councilor Bragdon said he is concerned that the endangered species program in the executive’s office have some scientific “horse power” behind it. Executive Officer Burton briefly reviewed the qualifications of the individual hired to coordinate this program and described how it will fit within the organizational structure.

Councilor Park asked about language in the budget referring to national media markets, and the reference to building Metro’s reputation as a regional government locally and nationally. He asked how the national element fits into the executive’s purview. Mr. Burton responded that Metro enjoys a national reputation for its excellence in growth management and regional governance. He said a tremendous amount of information is mailed out in response to inquiries about Metro. Almost every week, visitors from around the world visit Metro. Mr. Burton said he receives invitations to speak or visit other cities around the US or Canada. If the host city is willing to pay, Metro is willing to send someone to attend, if there is time to do so. He said he attended a meeting in Atlanta last week, in order to assist the governor of Georgia to set up a body similar to JPACT. Councilor Park said he thinks it is good to get the message out, however, he said attention needs to be paid to make sure the correct balance is achieved between national outreach and the needs of the region. Mr. Burton said some of the national trips have resulted in grants being awarded to Metro. He said these events are helpful to meet others in government and to learn about what federal programs are coming up. He also said they usually take place on the weekend. Councilor McLain said she has found that out of town meetings and conferences have always provided a return benefit to Metro in terms of a sharing of information.

Presiding Officer Monroe said any amendments to the executive’s budget and any other budget should be submitted by no later than April 1, 1999.

Councilor Kvistad asked about the 129% increase in personal services and the 217% increase in capital outlay in the executive’s budget. Kathy Rutkowski, principal administrative services analyst/budget coordinator, reviewed the budget increase, and said it was caused by the transfer of public affairs staff from individual departments into the executive’s office. Councilor Kvistad said this is a big policy shift that we should have a discussion about.

Councilor Atherton said from his point of view as having worked in municipal government, the amount of resources (i.e., paper) put out by Metro is excessive. Presiding Officer Monroe said in his meetings with leaders around the region they have told him Metro should make more creative use of e-mail rather than sending so many reams of paper.

Councilor Park asked whether under the current public outreach structure, there is equal access to Metro creative services for both the executive officer and council. Deputy Presiding Officer McLain said the path may be different, but the abilities to access service remain the same. She pointed out that Beth Anne Steele, council public outreach coordinator, sits on the communication team as the council office team. Councilor Bragdon said there would be no change between the council branch and the executive branch, it is a matter of where the people are housed within the executive branch.

Councilor Kvistad said the ongoing problem is whether the executive speaks on behalf of the agency or on behalf of the executive. He was concerned that policy positions of the council are not being moved forward and that material is being put out that is not coordinated with council policy. He said this move makes the positions directly under the direction and purview of the executive officer. Councilor Kvistad referred to the executive’s discussion of his recent trip to Atlanta to talk about transportation issues and JPACT. He asked why a councilor was not invited or notified of this event. In spite of the budget note, Councilor Kvistad said his history leads him to believe that things will be brought back to the council as a done deal, and the council will be forced to react.

Deputy Presiding Officer McLain said she is comfortable on all three levels of the change: 1) the money savings, 2) the structure, and 3) the efficient and effective communications. She said the budget note will maintain council’s role in public outreach.

AUDITOR’S OFFICE BUDGET

Alexis Dow, Metro auditor, appeared before the council to present the proposed budget for the auditor’s office for fiscal year 1999-2000. A copy of the proposed FY 1999-2000 Metro budget containing the auditor’s office budget is included as part of the meeting record. Ms. Dow distributed three documents pertaining to her budget to members of the committee. Copies of these documents are included as part of the meeting record.

Ms. Dow said she has agreed to a $5,000 reduction her proposed budget in response to budget constraints, however, she would not be in favor of a $10,000 reduction proposed by Mr. Houser.

Presiding Officer Monroe asked Mr. Houser to describe the presiding officer’s and deputy presiding officer’s budget recommendation. Mr. Houser referred once again to his memorandum dated February 23, 1999, entitled “Proposed Budget Amendments for the February 23 Budget Workshop.”

(Proposed amendment No. 1 to the auditor’s budget): Mr. Houser briefly reviewed the first proposed amendment, which would reduce the contracted professional services line item by $10,000.

In response to a question by Councilor Atherton, Ms. Dow briefly explained the three-year contract that was awarded to the outside audit agency. In response to a question by Councilor Park, Ms. Dow reviewed the FTE levels for previous years. Discussion followed about the agency’s policy of not counting temporary employees in the FTE count. Jennifer Sims, chief financial officer, said that although the FTE number does not include temporary employees, the dollar amount shown under personal services does include budgeted funds for temporary employees.

(Proposed Amendment No. 2 to the auditor’s budget): Mr. Houser said the second recommended change would be an adjustment to the salary of the auditor to reflect a potential 6% salary increase, which would be required in the event of a corresponding increase by the Legislative Assembly of the salary of state circuit court judges.

OFFICE OF GENERAL COUNSEL BUDGET

Dan Cooper, Metro general counsel, appeared before the council to present the proposed budget for the office of general counsel (OGC) for fiscal year 1999-2000. A copy of the proposed FY 1999-2000 Metro budget containing the OGC budget is included as part of the meeting record.

The presiding officer and deputy presiding officer did not recommend any changes to the budget for the office of general counsel.

COUNCIL OFFICE BUDGET

Jeff Stone, council chief of staff, appeared before the council to present the proposed budget for the council office for fiscal year 1999-2000. A copy of the proposed FY 1999-2000 Metro budget containing the council office budget is included as part of the meeting record. Mr. Stone distributed a copy of a memorandum from Chris Billington, Budget Manager, dated February 16, 1999 entitled, “1999-2000 Budget Proposal.” A copy of this memorandum is included as part of the meeting record.

Following discussion, a number of amendments were recommended by council staff as well as the presiding officer and deputy presiding officer. They are as follows:

(Proposed Amendment No. 1 to the council office budget): The first amendment would eliminate the new council assistant to the presiding officer position that is included in the proposed budget.

(Proposed Amendment No. 2 to the council office budget): The second amendment would clarify the merit and cost of living pay adjustments for councilors and staff. A) It would make an adjustment to the councilor salaries to reflect a potential 6% salary increase, which would be required in the event of a corresponding increase by the Legislative Assembly of the salary of state circuit court judges. B) It would allow for a 2% COLA to be included in salary adjustments, in keeping with the COLA increases being approved for the rest of agency employees. C) It would reflect a 4% (rather than 5%) merit increase calculated from the anniversary date.

(Proposed Amendment No. 3 to the council office budget): The third amendment would provide a modest level of additional funding for council outreach programs. The first two amendments would result in $44,899 in savings of which: A) $40,000 would be transferred to the council’s public outreach office in the contracted professional services line item. B) $2,737 in savings from the reduced merit increase in the council public outreach office would be transferred to that division’s miscellaneous expenditures line item, and C) $2,167 in savings from the council office would be placed in the council budget’s miscellaneous professional services line item.

In response to a question by Councilor Atherton, Presiding Officer Monroe said the $40,000 for additional public outreach would be split evenly between councilors.

Councilor Kvistad said in light of the upcoming challenges by LUBA it might not be wise to eliminate a position in the council office budget. He said the staff person assisting Presiding Officer Monroe will soon be facing a very increased work load when controversial issues come to the table. It was decided to keep the position in the budget, but make it an unfunded position. Councilor Kvistad and Councilor Washington both commented that each year, the council does a disservice to itself by not approving a budget adequate to meet its needs, both in terms of personnel and public outreach. Deputy Presiding Officer McLain said this is not the year to have the perception in the public that council is increasing its budget when other departments and agencies are tightening their belts. Councilor Bragdon said he could not support any increase in the council budget. Following discussion, Presiding Officer Monroe said these items would be discussed in greater detail at the councilor-only meeting to be held the next day.

There being no further business before the committee, Presiding Officer Monroe recessed the meeting at approximately 5:10 PM until March 10, 1999 at 2:00 PM.

Respectfully submitted,

Lindsey Ray

Senior Council Assistant

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