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Home My WebLink About2003-02-19 CITY OF MERIDIAN CITY COUNCIL SPECIAL MEETING I WORKSHOP AGENDA Wednesday, February 19, 2003 at 7:00 p.m. City Council Chambers 1. Roll-call Attendance: ~ Tammy de Weerd ~ Bill Nary :=::x= Cherie McCandless ~ Keith Bird )( Mayor Robert Corrie 2. Adoption of the Agenda: ~V"Y<..- 3. Revenue Enhancement Task Force Discussion of Objectives: ;)dypdaeed of d"4VUrUcC Meridian City Council Workshop f Special Meeting Agenda - February 19, 2003 - Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours priorto the public meeting. P a Se ft;sy :Sy ?k{;l/c; ,11er/; ~- 7h?02):J'! MAYOR Robert D. Corrie ~~ . ~Tf~~ . eo....,~. ~:;.,., ~ p /" CITY OF I!!~l~',. . VVLerldia,z>- &; '<~\ IDAHO Y / LEGAL DEPARTMENT (208) 288.2499 . Fax 288.2501 PARKS & RECREATION (208888-3579' Fax 898-5501 PUBLIC WORKS (208) 898-5500 -Fax 887-1297 BUILDING DEPARTMENT (208) 887-2211 . Fax 887-1297 PLANNING AND ZONING (208) 884-5533 . Fax 888-6854 CITY COUNCIL MEMBERS Tammy de Weerd William L. M. Nary Cherie McCandless Keith Bird NOTICE OF SPECIAL MEETING I WORKSHOP MERIDIAN CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold a Special Meeting at City Hall, 33 East Idaho Avenue, Meridian, Idaho, on Wednesday, February 19, 2003 at 7:00 P.M. The Meridian City Council will meet the members of the Revenue Enhancement Task Force and discuss its objectives. The public is welcome to attend. DATED this 12th day of February, 2003. -, - '"., 'II ", 33 EAST IDAHO. MERIDIAN, IDAHO 83642 (208) 888-4433' Fax (208) 887-48[3 - City Clerk Office Fax (208) 888-4218 . Human Resources Fax (208) 884-8723 ?Le(){jL, ?oSi j;y ?tLhCtc llo-h'CG.-1htWJt-g! CITY OF MERIDIAN CITY COUNCIL SPEalAL MEETING I WORKSHOP AGENDA Wednesday, February 19, 2003 at 7:00 p.m. City Council Chambers 1. Roll-call Attendance: Tammy de Weerd Cherie McCandless Mayor Robert Corrie Bill Nary Keith Bird 2. Adoption of the Agenda: 3. Revenue Enhancement Task Force Discussion of Objectives: Meridian City Council Workshop f Special Meeting Agenda - February 19, 2003 - Page 1 of 1 All materials presented at public meetings shall become property ofthe City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. ** TX CONFIRMATION REPORT ** 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 24 DATE TIME TO/FROM 02/13 08:53 PUBLIC WORKS 02/13 08:54 12084664405 02/13 08:55 8841159 02/13 08:56 2088840744 02/13 08:57 2088467366 02/13 08:58 8985501 02/13 08:58 LIBRARY 02/13 08:59 IDAHO STATESMAN 02/13 09:00 208 388 6924 02/13 09:01 2088886854 02/13 09:02 KEITH BIRD 02/13 09:03 8950390 02/13 09:04 208 387 6393 02/13 09:05 ADA CTY DEVELMT 02/13 09:06 CHERIE MCCANDLES 02/13 09:07 CHERRY LANE 02/13 09:08 POST OFFICE 02/13 09:09 208 888 1983 02/13 09:10 ID PRESS TRIBUNE 02/13 09:11 208 888 6700 02/13 09:15 3810160 AS OF FEB 13 '03 09:25 PAGE. 01 MODE UF--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S G3--S EC--S EC--S EC--S G3--S EC--S EC--S EC--S CITY OF MERIDIAN MIN/SEC PGS 00'12" 001 00'22" 001 00'21" 001 00'21" 001 00'21" 001 00'20" 001 00' 19" 001 00'20" 001 00'19" 001 00'20" 001 00'21" 001 00'20" 001 00'21" 001 00'39" 001 00'22" 001 00'19" 001 00'24" 001 00'27" 001 00'21" 001 00'21" 001 00'24" 001 CMDJ:I 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 090 STATUS OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK -------------------------------------------------------------------------------------------- PLea3~ ?oSi.j;y <P~b.(..I-'c fto-htG ~ 1hCU?t-S! CITY OF MERIDIAN CITY COUNCIL SPECIAL MEETING I WORKSHOP AGENDA Wednesday. February 19, 2003 at 7:00 p.m. City Council Chambers 1. Roll-call Attendance: Tammy de Weerd Cherie McCandless Bill Nary Keith Bird ** COMMUNICATIONS REPORT ** AS OF FEB 13 '03 09:25 PAGE.01 CITY OF MERIDIAN TOTAL PAGES TOTAL TIME SEND 0032 SEND 00011'47" RECEIVE 0000 RECE IVE 00000'00" DATE TIME TO/FROM MODE MIN/SEC PGS CMDJ:I STRTUS 01 02/13 08:53 PUBLIC WORKS UF--S 00'12" 001 090 OK 02 02/13 08:54 12084664405 EC--S 00' 22" 001 090 OK 03 02/13 08:55 8841159 EC--S 00'21" 001 090 OK 04 02/13 08:56 2088840744 EC--S 00'21" 001 090 OK 05 02/13 08:57 2088467366 EC--S 00'21" 001 090 OK 06 02/13 08:58 8985501 EC--S 00'20" 001 090 OK 07 02/13 08:58 LIBRRRY EC--S 00' 19" 001 090 OK 08 02/13 08:59 IDAHO STRTESMRN EC--S 00'20" 001 090 OK 09 02/13 09:00 208 388 6924 EC--S 00'19" 001 090 OK 10 02/13 09:01 2088886854 EC--S 00'20" 001 090 OK 11 02/13 09:02 KEITH BIRD EC--S 00'21" 001 090 OK 12 02/13 09:03 8950390 EC--S 00'20" 001 090 OK 13 02/13 09:04 208 387 6393 EC--S 00'21" 001 090 OK 14 02/13 09:05 RDA CTY DEVELMT G3--S 00'39" 001 090 OK 15 02/13 09:06 CHERIE MCCRNDLES EC--S 00'22" 001 090 OK 16 02/13 09:07 CHERRY LANE EC--S 00'19" 001 090 OK 17 02/13 09:08 POST OFFICE EC--S 00'24" 001 090 OK 18 02/13 09:09 208 888 1983 83--S 00'27" 001 090 OK 19 02/13 09:10 ID PRESS TRIBUNE EC--S 00'21" 001 090 OK 20 02/13 09:11 208 888 6700 EC--S 00'21" 001 090 OK 21 02/13 09:12 3810160 EC--S 00'31" 001 091 OK 22 02/13 09:13 PUBLIC WORKS UF--S 00'13" 001 091 OK 23 02/13 09:14 12084664405 EC--S 00'23" 001 091 OK 24 02/13 09:15 3810160 EC--S 00'24" 001 090 OK 25 02/13 09:16 8841159 EC--S 00'23" 001 091 OK 26 02/13 09:17 2088840744 EC--S 00'22" 001 091 OK 27 02/13 09:20 8985501 EC--S 00'22" 001 091 OK 28 02/13 09:20 LIBRRRY EC--S 00'26" 01211 091 OK 29 1212/13 09:22 92083776449 EC--S 00'22" 01211 091 OK 30 02/13 1219:23 208 388 6924 EC--S 00'26" 001 091 OK 31 02/13 09:24 2088886854 EC--S 00'22" 001 091 OK 32 02/13 09:25 KEITH BIRD EC--S 00'23" 001 091 OK / ** TX CONFI~ ,ON REPORT ** 21 22 23 25 26 27 28 29 30 31 32 DATE TIME TO?FROM 132?13 139'12 381131613 132?13 139:13 PUBLIC WORKS 02?13 09:14 12084664405 02?13 09:16 8841159 02?13 09:17 2088840744 02?13 09:213 8985501 02?13 09'20 LIBRARY 02?13 139'22 92083776449 132?13 139:23 2138 388 6924 02?13 09:24 21388886854 02?13 139:25 KEITH BIRD AS OF FEB 13 '03 09:25 PAGE. 131 CITY OF MERIDIAN MODE EC--S UF--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S EC--S MIN?SEC PGS 130'31" 0131 1210'13" 0131 1210'23" eel 130'23" 1301 1313'22" 1301 013'22" 001 00'26" 001 00'22" 001 100'26" 0131 1313'22" 001 1313'23" 1301 CMDII 1391 091 091 091 091 091 1391 1391 1091 1391 1391 STRTUS OK OK OK OK OK OK OK OK OK OK OK P /eaSe ft;st :kr ?t<j;f-l,<.c-(krI;~ - Th?0l..esl """i" ~p /,CIT'fOF if L/VLerzdia:n ~ -; '~~I ~~~ IDAHO /1 ~ MA VOR Robert D. Corrie Cl'rY COUNCIl. MEMBERS T~mmy deWeerd William L. M. Nary Cherie McCandless Keith Bird LEGAL DEPARTMENT (:108) 288.:1499' F.. 2SS.2S0l PARKS & RECR~110N (~08 S5$-JH9 . F... 8980-550 I PUeL1C WORKS (20B) 898.5500 '1'.. 8~7-]297 BUILDING DEPARTMENT (208) 887.2211 . F.. 881.1297 PUNNINO AND ZONING (20B) 884-5533 . F.x 888-GSS4 NOTICE OF SPECIAL MEETING I WORKSHOP MERIDIAN CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold a Special Meeting at City Hall, 33 East Idaho Avenue, Meridian, Idaho, on Wednesday, February 19,2003 at 7:00 P.M. The Meridian City Council will objectives. meet the members of the Revenue Enhancement Task Force and discuss its The public is welcome to attend. DATED this 12th day of February, 2003. .,. -,. .'t.., 33 EAST IDAHO. MERIDIAN, IDAHO 83642 (208) 888-4433' F:l.X (208) 881-18[) . Ci[y Clerk Onio. P:l.X (208) 888.4218 . HUlll,Jn Resources F~x [208) 8&4-812:' ** TX CONF I RMA1 aJN REPORT ** AS OF FEB 13 '133 139:27 PAGE. 131 CITY OF MERIDIAN DATE TIME TO/FROM MODE MIN/SEC PGS 131 132/13 139:26 CHAMBER-COMMERCE ----5 1313'1313" 1300 133 132/13 139:27 JIM JOHNSON ----S 1313'1313" 13013 THIS DOCUMENT IS STILL IN MEMORY CMDl:1 STATUS 13913 BUSY 13913 BUSY ?LectSe. ?oSi.j;y )lh.~-c ao-bCG -1hMl?:J! CITY OF MERIDIAN CITY COUNCIL SPECJAL MEETJNG I WORKSHOP AGENDA Wednesday. February 19, 2003 at 7:00 p.m. City Council Chambers 1. Roll-caJl Attendance: _ Tammy de Weerd _ Cherie McCandless _ Mayor Robert Corrie _ Bill Nary Keith Bird 2. Adoption of the Agenda: 3. Revenue Enhancement Task Force DIscussIon of Objectives: Meridian City Council Workshop I Special MeetinQ Agenda - February 19. 2003 - Page 1 of 1 All materials presented at pUblic meetings shall become property of the City of Meridian. Anyone desiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's OffiCfl at 688-4433 at least 46 hours prior to the public meeting. ; ** TX CONFf. ION REPORT ** AS OF FE8 13 '133 139:48 PAGE. 131 CITY OF MERIDIAN DATE TIME TO/FROM MODE MIN/SEC PGS CMDII STATUS 132 132/13 ~9:26 895133913 EC--S 1313'22" eel 1391 OK 134 132/13 139:28 2138 387 6393 EC--S 1313'22" eel 091 OK 135 132/1309:28 ADA CTY DEUELMT G3--S 1313'413" 1301 091 OK 136 132/13 09:313 CHER]E MCCANDLES EC--S 1313'26" 13131 1391 OK 137 132/13 139:31 CHERRY LANE EC--S 1313'26" 1301 1391 OK 138 132/13 139:32 POST OFF]CE EC--S 013'31" eel 1391 OK 139 132/13 139:33 2138 888 1983 G3--S 1313'29" eel 1391 OK 1(1 132/13 e9~34 ID PRESS TR]BUNE EC--S 130'23" 0131 1391 OK 11 132/13 e9~ 35 208 888 67130 EC--S 130'22" eel 1391 OK 12 132/13 e9~39 21388467366 EC--S 1313'22" eel 1391 OK 13 132/13 139'47 CHAMBER-COMMERCE ----5 00'1313" 13130 1391 BUSY 14 132/13 139:48 JIM JOHNSON ----S 1313'00" 000 1391 BUSY TH]S DOCUMENT ]S STILL IN MEMORY -------------------------------------------------------------------------------------------- PleaSe ft;st ftr. ?ut$.u;:;1d~ -tha?():J'! MAYOR Robert D. Corrie 4~~""a olfe;;d;~~ ID^HO lEGAl. DEPARTMENT (108) 188.1499 . Po. 238.1501 PARKS Ii. RECREATION (108 88So3579 . F"" 898.550 I PUlll.lC WORKS (1081898.5500 .F.. ftft7-ll07 BUILDING DEPARTMENT (208) 8a7.2211 . F:u 887.1191 PI.ANNINO AND ZONING fl08) 884-5533 . F.. 8884854 crrv COUNCIL MEMBERS T.mmy deWeerd William L. M. NO!)' Cherie MeC~ndless Keith Bird NOTICE OF SPECIAL MEETING J WORKSHOP MERIDIAN CITY COUNCIL NOTICE IS HEREBY GIVEN thatthe City Council of the Cily of Meridian wlll hold a Special Meeting at City Hall, 33 East Idaho Avenue, Meridian, Idaho, on Wednesday, February 19, 2003 at 7:00 P.M. The Meridian City Council will meet the members of the Revenue Enhancement Task Force and discuss its objectives. The public is welcome to attend. DATED this 12th day of February, 2003. 33 EAST IDAHO. MERmfAN, IDAHO 83642 (208) 888-4433' Fll.l< (208) 887-1813 . Cl[y Clerk OlTIoe F:lX (108) 888.4218 . Hum~n Resourees F:u (208) SS4-S723 MAYOR Robert D. Corrie 1 ;.:.-!., .:"Q .,.. .'t"':"$Ji'" ~ cMerldl;~~; '\ ~ IDAHO l 1&0. ~~y "i!otrR,,~~ ",,'~ '~.SI"CE \ 1903 LEGAL DEPARTMENT (20S) 288.2499 . Fax: 288.2501 PARKS & RECREATION (20S 888.3579 . Fax: 898.5501 PUBLIC WORKS (208) 898-5500 'Fax: 887.1297 BUILDING DEPARTMENT (208) 887.2211 . Fax: 887-1297 PLANNING AND ZONING (208) 884-5533 . Fax 888-6854 CITY COUNCIL MEMBERS Tammy dcWcerd William L. M. Nary Cherie McCandless Keith Bird NOTICE OF SPECIAL MEETING I WORKSHOP MERIDIAN CITY COUNCIL NOTICE IS HEREBY GIVEN that the City Council of the City of Meridian will hold a Special Meeting at City Hall, 33 East Idaho Avenue, Meridian, Idaho, on Wednesday, February 19, 2003 at 7:00 P.M. The Meridian City Council will meet the members of the Revenue Enhancement Task Force and discuss its objectives. The public is welcome to attend. DATED this 12th day of February, 2003. '" ", /'l ~ '. 33 EAST IDAHO. MERIDIAN. IDAHO 83642 (208) 888-4433. Fax (208) 887-4813 . City Clerk Oftice Fax (208) 888-4218 . Human Resources Fax (208) 884.8723 / ( April 11, 2003 MERIDIAN CITY COUNCIL MEETING APPLICANT April 15. 2003 ITEM NO. ~,-A --- REQUEST Approve minutes of February 19,2003 City Council Special Meeting: AGENCY COMMENTS CITY CLERK: CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: MERIDIAN SCHOOL DISTRICT: ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SEITLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: ~ O;~ Contacted: Date: Phone: Materials presented at public meetings shall become property of the City of Meridian. CITY OF MERIDIAN CITY COUNCIL SPECIAL MEETING J WORKSHOP AGENDA Wednesday, February 19, 2003 at 7:00 p.m. City Council Chambers 1, Roll-call Attendance: Tammy de Weerd Cherie McCandless Mayor Robert Corrie Bill Nary Keith Bird 2. Adoption of the Agenda: 3. Revenue Enhancement Task Force Discussion of Objectives: Meridian City Council Workshop / Special Meeting Agenda - February 19, 2003 - Page 1 of 1 All materials presented at public meetings shall become property of the City of Meridian. Anyone deSiring accommodation for disabilities related to documents and/or hearings, please contact the City Clerk's Office at 888-4433 at least 48 hours prior to the public meeting. Meridian City Council Special Meeting Februarv 19, 2003 The Special Meeting of the Meridian City Council was called to order at 7:00 P.M. on Wednesday, February 19, 2003, by Mayor Robert Corrie. Members Present: Robert Corrie, Bill Nary, Tammy de Weerd, Keith Bird and Cherie McCandless. Others Present: Stacy Kilchenmann and Will Berg 1. RolI~call Attendance: X Tammy de Weerd X X Cherie McCandless X X Mayor Robert Corrie Bill Nary Keith Bird Corrie: Welcome all of you here this evening and its certainly a pleasure to have you want to help us in our endeavor to see if we can find new avenues and revenues for the city whether it be a mill levy or bonding or whatever we need to do so. Before we start let me start and have each one of you introduce yourselves so that we can kind of get an idea of who is who. Oh I'm sorry we got a special meeting. Open the meeting for the City Council special meeting workshop Wednesday February the 19th 2003 at 7:00 P.M. and we will have roll call attendance please Mr. Clerk. Thank you. 2. Adoption of the Agenda Corrie: We have adoption of the agenda, which is the revenue enhancement taskforce discussion objective. Are there any other additions to the agenda? I will entertain a motion to accept the agenda. Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: I move that we accept the agenda as published. McCandless: Second. Corrie: Okay motion made and second to accept the agenda as published. Any further discussion? Hearing none. All those in favor say aye. All ayes. Motion carried. Again let's start - Irma you can start and we will go right down this side and then we will go down this side with Jim. Atkinson: I'm Irma Atkinson. Meridian City Council Special Meeting February 19,2003 Page 2 of 16 Jones: I'm Lori Jones. Corrie: Bob. Chandler: I'm Robert Chandler. G. Corrie: Greg Corrie. Stiller: Rod Stiller. Helm: Fred Helm. Hanson: Madelyn Hanson. Johns: Al Johns. Greene: Rich Greene. Bongiorno: Joe Bongiorno. McRoberts: Darrel McRoberts. Wardle: Shaun Wardle. Gilmore: Brad Gilmore. Keller: Jim Keller. Corrie: Okay. Again thank you all for being here. And what we are going to do tonight is kind of give you a background of some of the things we are looking for from you and some of the things you have to do in open meetings and taking minutes and I'll give you some background of what we would like to see you do. So at this time I would like to have Stacy if she could kind of give us a background. You all have received a packet here tonight. This kind of gives you a real rundown and I will let Stacy tell you about it, its good reading and Stacy. This is Stacy Kilchenmann our finance director. Kilchenmann: This is guaranteed to put you to sleep at night. What I put together is just kind of a packet on some information I thought might be helpful for you to get started. On the top its entitled City of Meridian FY 2003 budget revenue manual. The city has pretty much revamped its budget process in the last couple years and part of that is each year we'll be or I will be preparing a revenue manual that examines all of our sources of revenue, where they come from, kind of what I see in the future, what direction they are going to go. So this was for our budget that we did last year and I'm in the process right now working on the projection for 2004. But what this does is kind of goes through each Meridian City Council Special Meeting February 19,2003 Page 3 of 16 category by fund. This is probably review for some of you but briefly funds are kind of how we organize the city's business and we have three basic funds. One is the enterprise fund and that is the wastewater plant, the water plant, public works and they are operated just like a private business they generate the fees that they need for operation. So your committee will not be dealing with those funds but there is a description of them in here and its kind of interesting because some of the factors we use to predict utility revenue we use to predict general fund revenue because we use housing starts, number of utility accounts and so forth. So there is kind of a cross of information. We cannot use the enterprise funds in the general fund. We do make an allocation where we take like part of my time and part of our human resource director, part of our computer person because we provide services for those funds so we do, do an allocation of costs to the enterprise fund in that manner but we cannot take the money and use it for anything other than those kind of a dministrative allocations. T hen we have a fund that we call a special service fund and that is where we put our Building Department and Planning and Zoning and they are operated on the fees generated by the Building Department and they actually are a part of the General Fund as far as accounting classification. So what we do is accumulate all those funds we get which are above the amount we need to operate the service and we put them in what we call a capital improvement fund and the council has designated that they want those monies to only be used for capital improvement such as buildings, park development and so forth and so we just set those aside. So t hose a re funds t hat a re a vailable and if they were tab e u sed for general operating expense it would take an ordinance change because that is set up by ordinance. And finally the general fund and that is the one you are going to be primarily interested in. And that is all the services of the City that are funded basically through tax revenue or to provide those services that we can't charge directly for. For example we do have some small fees from permits and so forth. We are talking about having fees for building inspections from the Fire Department and so forth. We have some recreation fees. But as a whole we don't charge you for police calls or fire calls and we don't charge you to use the park and so forth. Although as governments face the scrunch down on tax fees that's one thing that they do look at is well do we need to search out and find all those kinds of services that we can somehow associate them to a user and charge for them. So in this packet it's a description of how the property tax levy works, which is a really exciting process and it's difficult to explain and so I'm not going to explain it here now but if any of you hav'e questions please feel free to call me and I can kind of walk you through it. When I started here, you know I have been paying property taxes for years, I didn't pay any attention to it. It took me like a year to figure out how it was actually calculated. So like I said if anybody has questions let me know I have more handouts and more information about it. There are a couple other sources, bigger sources of general fund revenue. Those are the state revenue sharing, which if you have been reading the Statesman you have probably heard about those. And that is the portion - the state gives the cities back a portion of sales tax revenue and that is along the formula to do it is to develop through lobbying efforts and tax code like we always t" Meridian City Council Special Meeting February 19,2003 Page 4 of 16 say in accounting, tax code there is no logic to it its just what lobbyist group had the most money in one particular year. So again that revenue sharing formula is kind of complicated but that is our biggest source of revenue after tax revenue. So we are hoping that the state doesn't tap into that because that would really make a difference to us. And then there are some smaller fee sources in there like I said we charge some fees. We have park impact fees that we get from building permits and those we use only to develop parkland. We have some fees like from people getting alcohol permits, liquor license and so forth and those are discussed in there too. And at the end of that manual which the pages aren't numbered but if you go all the way to the end of the manual the last page is 26 and so if you go to the page after 26 there is a report of worksheet and its called budget projections and scenarios for the general fund and this one it looks like an intimidating group of numbers when you first look at it. But what I have done because salary and benefits are probably is one of the largest component of our operating expense. I took some history going back to 1999 and we looked at the actual and then compared it to the budget for this current year that we are in and broke it down into the component that is just salary and the component that is benefits. Because for us are - I'm sure you are all facing this in your businesses and SO forth - I mean the cost 0 four health insurance just sky rockets every year, 35 40 percent increases. So this was initially prepared just to look at how those increases would impact us and so the yellow lines just show the increases historically in each of those components the cost for the city. Then the bottom is the operating expenses and then the very bottom is total capital outlay and capital outlay is the amount of money we spend for - what we kind of in a private business you would think of as fixed assets property plant and equipment park development - in the city we count anything that is a thousand dollars or more as capital outlay. So a computer would be capital outlay but somebody buys a keyboard that wouldn't be capital outlay. That's just how we account for it and designate it. Then in the middle of this worksheet I just show, we are trying to look at how health increases would impact us. So we just say what if we froze basically froze, we didn't hire new people we have to do some increase because of our police step program and our fire contract and what if we said operating expenses weren't really going to increase how would health insurance impact us. So that is what the middle one is. Then the bottom section of the worksheet is what if we continued to increase, add firefighters add police at the same rate that we have in the last few years. How much money would we have left for those capital outlay items those park development to buying new police cars, buying new fire trucks and you can see that we would have a lot less money left if we continued at the rate that we are increasing. Then the next sheet is entitled budget enhancements for the general fund and this is a history of the last three years so that you can see the kind of items that we have added like where did those historical increases come from what did we spend our money on? And so we go on a theory, we have what we call a base budget and that's the budget to say what we would get if we did the same as we did last year in other words we didn't add any people, we didn't change anything, we didn't have new programs we just stayed the same. And then we say the things that we add when we add Meridian City Council Special Meeting February 19, 2003 Page 5 of [6 new people or we buy some parkland or we buy a car or we buy a computer we call those enhancements. So this is a list of them from the last three years. We have police in blue and fire in red and parks in green so that's like accounting painting. So that will give you kind of an idea of what we've been spending our money on. Then the next sheet is called property tax information and this looks at a projection for the first chart is a historical and projected levy rates and you probably all heard us talk about this in the last two times when we tried to increase the mill levy and basically what happens is when a city is growing faster then three percent - let me see I'll go back and show you - the legislature caps the growth in property tax at three percent of the prior budget. In a city like Meridian where you are growing faster then three percent that means your levy rate mathematically goes down. So that's just the first chart shows how our levy rate is decreasing. The middle chart takes, there is some other components of property tax revenue besides just the base property tax, which just grows at three percent as long as you are growing, we also get to apply the levy rate to new construction so that gives us another amount of money or a second component and that's the revenue from growth. So from Meridian that's really kind of kept us a flow because we have a lot of new construction every year so we get that extra amount and then in the middle its showing in the orange line and then added in to that is annexation, so if we annex a property that first year we get to apply a levy rate and for us that really hasn't been really high it mostly comes from new construction. And then the bottom chart just kind of shows you how we are growing, its just like that's our assessed property value and it just keeps going up at a high rate, so you can kind of compare it to how the levy rate goes down. And then the next - Keller: Can I ask a question? Kilchenmann: Sure. Keller: On this Meridian levy rate that's going down, are you saying that if your previous collections from the Mill Levy tax were like a million dollars and you had a growth, regardless of what the growth was you could only add another 30,000 dollars to your mill levy every year. Kilchenmann: Well to calculate the formula the percentage you could only add three percent but then you get to take - so say you do that and it comes out to be like. 0031805 then you get to take that new growth like 1 8 million dollars and apply the levy rate to that and then as we get Keller: Is it three percent on top of that every year thereafter? Kilchenmann: Yes because it goes by your prior year budget, whatever the total is. So the next sheet is our capital improvement plan that we had for last years budget. And this is, it will be updated soon and so I'm sure I will have all your emails and I'll update it and send it to you but this is all those big capital projects Meridian City Council Special Meeting February 19, 2003 Page 6 of 16 the parks, fire stations, police station payment, police cars etcetera. This one goes to 2013 so it shows how much those items will cost just in it for themselves and then of course you add a fire station you also have millions of dollars in operating costs. So it kind of says additional operating total annual cost. So that just kind of gives you a picture of the kind of capital out lay and the kind of capital cost that Meridian is looking at. And again we have those color coordination's with blue for the police, red for the fire and green for the park. And then finally there is a chart called property tax and property tax levy rates actual projected. These are basically the numbers that support that chart on the graph that had the first one with the levy rates and the middle had the different lines. This kind of gives you in numbers w hat it looks like each year w hen the county calculates how much property tax we will get. So you can see the amount of property tax from the new construction roll that we get that's on the top line, that's the net that we get, its like 18 million something that we can apply the levy rate to get to that and then the annexation which like I say is not much. And then the base property tax and you can see that the base increase by three percent each year and then the percent we get from growth from our new construction for a total increase and then the bottom just for comparison we compared all of our other revenue sources. So that kind of in a fast speed through is what's in the packet. Jones: On the budget 03 percent (inaudible) increase. (Inaudible). Kilchenmann: Yes Jones: And what is the big annexation figure. Kilchenmann: For 02? Jones: 2001. Kilchenmann: 2001. Jones: Fiscal year 2002. Kilchenmann: I don't know what the exact property was. That was just the levy rate times the actual property we annexed. So I don't know what particular property. Will might now. Nary: Crossroads. Bird: Crossroads was later. Nary: You have to remember that the fiscal year that the collection is the year after they d 0 it. So it could be crossroads, it could be Wal-Mart. I t could be JaBil. Meridian City Council Special Meeting February 19, 2003 Page 7 of 16 Corrie: Jabil was in 2000 and so Jabil would be 2001 it shows up here. Kilchenmann: And on the growth I do project conservatively. It's actually like a trend if you look at the dollars and it's just an estatistical equation just doing a regression analysis in the trend of the last few years because right now this is a scary time to do revenue projections. Every month we look at the building permits and they are staying high in Meridian we are staying up there it doesn't look like growth is slowing but its just like you read the revenue the forecast for the state and its just not good. And if, you know I think to depend on the growth to build annual operating expenses is risky. Are there any other questions? Chandler: I don't think you can project that through your budget but I'm interested I see some transfers going back and forth with the utilities. (Inaudible). Are you allocating costs from the utilities to the general fund? Kilchenmann: Now e just allocated from the general fund tot he utilities. We allocate half of the human resource department and half of the finance department, to the enterprise fund to the utilities. Chandler: So the would be your allocated costs? Kilchenmann: Yes. Chandler: So you are showing impact from Human Resources, what's the other one? Kilchenmann: Finance. Chandler: Your not showing (inaudible) City Council over the first of the year. City Council, City Clerk, Mayor's Office that kind of thing. Kilchenmann: I don't think that you can transfer the cost of the elected officials but we could possibly that is one thing to look at I mean we could allocate some of the City Clerk time and we used to not do any allocation and then we started with the Finance Department and we added Human Resources. And so you could, that is definitely something you could do is look at each - Chandler: Do an analysis of impact (Inaudible) what kind of allocated costs you could bring from utilities back over to (inaudible) and it sounds like you have done some of that with Human Resources. It would be kind of fun just to do a little analysis of what else you could do (inaudible). Kilchenmann: Pretty much in general government its, besides elected officials we have Finance, Human Resources and the City Clerk and so we are pretty much allocating everything except for half of the City Clerk's time. Meridian City Council Special Meeting Pebruary ]9,2003 Page 8 of]6 Chandler: What about grants, do we do anything (inaudible). Kilchenmann: We have. The police have done some of the cop's grants. Chandler: Did you get allocated costs from that? Kilchenmann: Well it is all in the general fund so yeah it wouldn't. In my time we haven't gotten any utility grants, which is only two years so. Jones: Stacy, which salaries increase doubled from 02 to the budget of 03? Kilchenmann: Let me get back. Okay you are looking at. Jones: On the budget projection (inaudible). Oh I'm sorry. Bird: If it did Lori, somebody is in trouble. Kilchenmann: And if you look at that enhancement that shows you all the personnel we added. Yes. McRoberts: I was wondering on the last page there all other revenue sources. (Inaudible) it is fifteen percent and then all of a sudden it drops down to five percent. Kilchenmann: That is because of the revenue sharing. And that is why - I know three we really whacked the budget down on, well one thing that hurt us - well its not as big as revenue sharing but probably next to revenue sharing and we get franchise fees from the gas and electricity and we had some big jumps for a couple years. We were growing and the rates were growing and now last year they told us for 03 that they were going to decrease rates and it actually didn't happen so much I think it was electricity that did somewhat and it didn't in gas but now they are saying again okay now we are going to decrease our rates and there is an assessment formula, payback formula they do that they said they were going to decrease. So actually in the manual it talks in detail about those sources. McRoberts: That's why it shows a minus. Kilchenmann: Anything else? Keller: May I make a suggestion? That the committee name change instead of Revenue Enhancement Committee to Revenue Evaluation Committee. Kilchenmann: Okay that's. Keller: I notice we are here to evaluate (inaudible). Meridian City Council Special Meeting February] 9, 2003 Page 9 of 16 Kilchenmann: I a-9ree. Okay I think on the cover sheet has my phone number and so forth so. Corrie: Okay thank you Stacy. What I would like to do and the reason that the whole Council ish ere j s we a II believe in what's being done h ere today. We really appreciate you looking at these things and evaluating and how we can come up with some revenue to help us along because every year the Mill Levy is dropping whether we should have a mill levy increase you'll be talking to your neighbors and to the people. What is the best way we can go about this, so one of the things I'd like to have the Council President is talk about some of the objectives that we would like for you to look at in the next two months. So Tammy if you would like to do that. De Weerd: Like the Mayor said I'd like to thank you all for being here tonight. Just a little background. I know that Greg is probably the only one that has participated in our past two failed Mill Levy attempts and he can probably give you some of the background as you dove into some of this a little bit deeper. But we determined that as we see the narrowing gap between our base operation expenses and the revenues that we have coming in that we need to do something. The two failed attempts gave us a wake up call and said okay we need to step back and really take a look at this. And our answer is sitting in front of us tonight, we need our citizens to really take a critical look at what we are doing and see if there is any rock we have not turned over and to have fresh eyes looking at this and the protection of the citizens and the tax payers greatest interest and that is their pocketbook. So we appreciate you taking valuable time and helping us look critically at our revenues and seeing - we'll have our staff as a resource to you when you need them. I know understanding that the Mill Levy formula calculations was a real challenge for the citizens committee that we put together kind of in the eleventh hour in the second attempt we did. And we are really being able to communicate how that formula is really derived because it's complicated. I think that Stacy now working with it for two years can explain it in more layman's terms but it's a complicated formula that once you think that you have it figured out, you really don't. So we do have capital improvement plans that our fire department our parks department have put together. We have policies put in place by our police department that explains how their enhancements work with vehicle replacement and some of those assets that need to be replaced on an ongoing basis. We also completed last years strategic plan that were making a lot of our budget decisions based on, looking at short long term plans. So those are all resources available to you when you are at that point that you need them. Again our staff is a resource so don't hesitate and I know after already talking to Jim there is going to be a lot of research that our staff will be pulling information together for this committee. But we did try and give a sense of direction to give you some tangible objectives. Those are one to conduct a thorough review of the City of Meridian's general fund revenue streams and provide a comprehensive examination of our current and alternative Meridian City Council Special Meeting February 19, 2003 Page 10 ofl6 revenue sources for immediate and long term needs. And the second is to recommend new _ funding avenues and or adjustments to traditional revenue methods if needed that will assist in meeting the goals and objectives of the city. Pretty broad base but it kind of set the perimeters on what we are hoping for. We tried to also look at a reasonable time frame when we would like to get information back so it can also be used in determining as we set our budgets for next year and we would like to see if we could get a recommendation from this committee back by the end of June so I believe we'll let you set your times and dates and committee chairman and recorder. Will will give some recording instruments so this is a public meeting so we will want it recorded so if you'll have someone taking abbreviated minutes that would be helpful for the public record part of it. So again we really appreciate your help and your willingness to step forward and take a look at our budget and let us know what you think. Corrie: Thank you Tammy. It may seem a lot to do for us but I think once you get into it its going to be a little easier to understand. Will is going to be here. He can help you with any like Tammy said its an open meeting you need to be under that open meeting law, you have to take the minutes and so you have to notice when you are going to have your meetings and Will will take care of all that for you and make sure you don't get in trouble with the laws and again is there anyone from Council that has anything they'd like to say? Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: I really appreciate it Mr. Keller in noting that Revenue Evaluation, I think one of the objectives that we really tried to stress in all of our discussions about this committee is we were really wanting to leave it all in your hands as to what you think we can do to assist the city in looking at our revenue sources and looking at alternatives. I mean we intentionally did not want this to be called the Mill Levy Group because that is not our objective. Our objective is to find out what we can do. If that's one alternative that you decide is reasonable then that's fine but we really truly appreciate both the time and the effort that it's going to take to do that and want to make sure that we can answer whatever objective types of questions you have about what you need to do. I mean the basic stuff is getting started I think the Mayor has said, picking a chairman, getting a recorder, getting a secretary someone to make sure we get all those things to keep the momentum going but really as to whatever types of evaluation that you come up with we really really want that to be whatever you folks come up with. Corrie: If you come up with an answer that don't raise taxes that's what we are looking for. Its what the people out there are saying and what they are saying to you. So whatever your answer is that's what we wanted to hear. Now do you have any question before we adjourn our meeting and you can start yours and like I said you can have any type of help you want. You can call myself any Meridian City Council Special Meeting February 19, 2003 Page] ] of] 6 member of the council or Will and we will get the answer for you as soon as we can and hopefully _within the next day to you and you can set up your times when you want to meet and what you want to do and you are on your own. It sounds like we are just abandoning the kids here but we are not you are very capable people that can do this for us and we appreciate that so any of you have any questions? McRoberts: Just a couple of questions. The two objectives that you gave us is that the entire scope of our task or can we step outside that? Bird: Step outside. Corrie: You certainly can step outside that box if you'd like, those are some guidelines that we were looking for that can help us. If you want to step out of the box then you (inaudible). McRoberts: My second question. Only living here three and a half years is there a (inaudible) in other words you guys have looked at any structuring, cost cutting all of that stuff or do you want us to go on to that. In other words we may need to look operation and see your flow chart and organization and all of that kind of stuff. How far do you want us to go over? Corrie: Council any ideas? Bird: Mr. Mayor. Corrie: Mr. Bird. Bird: If he has any ideas to cut costs we'll take it. You bet. But I think you will find out that we are pretty cost efficient as it is we just don't have that much to play with. Corrie: 41,000 people in Meridian and we got 180 employees that is really close to the (inaudible). Mr. Nary. Nary: Yeah I was going to say I was going to say the same thing Mr. Bird was saying is that whatever types of alternatives recognizing - if your number one suggestion is eliminate the police department say one million dollars we may not do that. De Weerd: We will say no. Nary: But recognizing that any types of suggestions, we are game. Weare game for the discussion. Meridian City Council Special Meeting February 19, 2003 Page 12 of 16 Corrie: And our records are all open to you like it is to anybody else and if you want to see. I would ask that you don't bombard our finance director with a whole lot of things cause she's in the middle of getting ready for budget hearings for us but if you have questions don't hesitate and like I say you can call anyone of us and we will get the answers for you if we don't have them right there and we will give you the answer that we can and honest answers. We won't blow smoke or anything like that because you are the ones who are going to tell us what we can and can't do probably and that's what we want to hear. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I appreciate those questions. One thing we have been working on doing over the last year is updating our fee schedules. Most of those have been in the enterprise fund and in our planning and zoning which is part of the general fund but its pretty much self supporting with the building fees. We are right now in the process of updating and increasing our park impact fees. The Fire Department has a draft of some fees that are being proposed, right now its out in the billing community for comment. We are trying to do what we can with what we have and trying to allow the impact of growth to really help pay its way. So those are the kind of things that we have been working on bringing up to speed and bringing it to the level that is consistent with the surrounding communities. We are just looking at what haven't we thought of you know I invite you to definitely take a look at some of our budget practices and see if there is a way we can fine tune them. Again like councilman Nary said we wanted to leave it open ended so that you were allowed to do what you felt comfortable doing and just have at it. We actually Jim we had three different names for it I think the second name was a Revenue Analysis Task Force so its kind of similar. We just had all kinds of names for you guys. You can rename it to whatever you want. Corrie: Also I'm going to have Will. This is about the open meeting laws and what you have to do. We'll have Will copy this and see that you get it this week might have to mail it to you or get it to you do you can have that as well. Any other questions? McRoberts: The only other thing, I can't write that fast. I didn't get two of your objectives. Do you have a handout or something? De Weerd: Yes and actually we can mail it out with the open meeting laws for you if that sounds okay. I think those of you that I had emaHs for I did send the objectives out. Corrie: It should be just one page like this and I'll see that you have it tomorrow. A question back here. Meridian City Council Special Meeting February 19,2003 Page 13 of 16 Gilmore: Yes is it a safe assumption that all actual figures shown here can be backed Up 100 percent. Corrie: I'll let the finance director answer it - Bird: It better be. Corrie: It better be and the answer is yes. They have all been audited and those are actual figures from on auditor. Kilchenmann: Now the projections I can't guarantee. (Inaudible discussion amongst council members) Corrie: And there are no slush funds, the mayors office doesn't have any funds he can work with. De Weerd: You know that does ralse a point and the mayor is correct. We do take our fiscal responsibilities very serious. Once a month our finance director gives us financial reports on a monthly basis. Every council member has a department that we are a liaison to. We are responsible for looking at out departments budget on a monthly basis. We look at every expenditure and sign off on that so we do take our fiscal responsibilities very serious and we do look at it on a monthly basis and so and we are very fortunate that we have a finance department that really scrutinizes are budget and expenditures very closely as well. (Inaudible discussion amongst councll members) De Weerd: You bet. Not my personnel ones. Corrie: I think we have five cards out a nd they are a II accounted f or audited everyday. Lori. Jones: With the revenue sharing issue before the legislature will we be kept in (inaudible) of how that is coming? Corrie: Yeah it probably will happen with the legislature I have talked to that they are looking at freezing the one that we have now so in other words the City of Meridian will maybe get 1.5 million and if it comes out to be 1.7 million well we are going to loose 200,000 dollars but that looks like what the legislature is looking at right now. If they go in and rate it you'll now it that day believe me because you have to have the right figures to work with. So Greg. G. Corrie: Just so people here know what sometimes you are up against. There is a perceptual problem in the community versus reality. And I think we were up Meridian City Council Special Meeting February 19,2003 Page 140fl6 against that and I even talked to a couple of the firemen the other day. There is the perception that this town has big growth and big bucks. And when I step back and look at the figures that Stacy had provided me this last time around. This city runs extremely tight and I think the issue here is that you got to get it out to the community members I think there is some better people in here this time to keep it very simple because when you start talking a lot of mill levy math you start talking a bout a lot 0 f c harts and graphs. The average g uy 0 n the street looked at me and said I'm lost already and I think there is that perception that Meridian has gone up 231 percent the last decade in growth according to the department of Labor statistics that was just released but you can see that and I don't see the budget cut. I mean the fees (inaudible) there is a lot of smart people in the room. Many biggest thing was to get half that perception (inaudible) that can be very, very costly so I mean we can all share some of those thoughts. Tammy and I think have been to many meetings and I think Cherie was at one of the meetings and sometimes people stare at you like you are in the headlights cause they are (inaudible). Just curious did you guys have after the last two elections the levy increases. Did you have any kind of focus group discussions or come to some kind of a consensus of reasons why they (inaudible). Corrie: I think I'll let the council woman answer it on that. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I think what Greg had already vocalized was a lot of it, is there still a perception out there because of our growth rate and all the improvements that are being made and the property values and that sort of thing that we are doing very well and that we should be rolling in it basically. And so that is a perception out in the community. And frankly I just don't think we were able to simplify the message and really communicate what it really all means and so having better statistics behind you and you know figuring out how to fight the perceptions out there or not really to fight the perceptions but to help educate how the state law really ties our hands. Even if for example if we were to frozen our mill levy kept it the same rate instead of having it lower because of the formulas. One year where we really looked at the difference it meant one and a half million dollars lost in our budget that we would have had if it would of just stayed at that same level and so that's what that formula really does in actualality. In many parts of the state it serves a really valuable reason you know because peoples perceptions are the government is going to come and just raise the value of my property so they get more in taxes and so it has its purpose but in the rapid growing community it almost works against that. It was mainly a message thing it never failed by very many votes so I just think if it is attempted if that's the recommendation this committee comes back to we'll have an education process Meridian City Council Special Meeting February 19,2003 Page 15 of 16 in front of us and we maybe surprised at what you come back with and that we won't have to do that. And that would be great too. We just want the citizens to really take a critical look at this and give us what they think, because it comes better off from the citizens. I mean I'm a taxpayer too I care but I see it a little bit different as well. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: One of the reasons why we asked the school district to participate and Christine Donnell wasn't able to be here tonight but what we observed just again as tax payers is they are very good at educating the public over what it is it costs to educate the children and what it costs to do that and therefore they have been very successful in getting those bonds passed (inaudible). We felt that that expertise would be valuable to this group because that education is really key. I mean most of the general public it was just like Greg said, don't perceive that the general fund pays primarily for p alice, fire and p arks. And t hat to have parks costs money, to buy a fire engine costs a lot of money and 100 home subdivision by itself probably doesn't pay for the cost to have fire service provided and police service provided for it and a public park available for the people that live there to use. (End of side One) Nary: - don't realize those things and that's again an education process that people need to know and that's why I said I think the school district as they participate in this will probably will be very helpful in educating folks as to how do we get those kind of messages out. Corrie: Any other questions? Okay we will leave you in good hands and whoever you have as your chairman and that let me know and we will follow up routinely with you people and see how (inaudible) or anything you need. So with that if I don't have anymore questions I will entertain a motion then for the Council to adjourn our special meeting. McCandless: So moved. De Weerd: Second. Corrie: Any further discussion. Hearing none. All those in favor say aye. Motion approved MEETING ADJOURNED AT 7:53 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) Meridian City Council Special Meeting February 19, 2003 Page 16 of 16 APPROVED: ~~R 4-/I? /03, DATE 1111\\\1111/111/1 "\\~ll Of Mf:..li::/"/" " :\' 'V'l "// :::~.... () ~PORA:..;'1.-- -:..~ ;; cP .,~ -:;. ~'<f 0 \lTESTED:~~~.&.r)l ... '1': 0::: ~ vQ ,<bO~ -'or"'O Ver 15\ . ~ ~ ....::,.- ~ ~ ,~ '~// 00' ~"T"'" ~ ............."- "1 '-....-'ii"Y ~ l' \,,- II, \\\\ 1Ji!!-;1: ~un\ February 14, 2003 MERIDIAN CITY COUNCIL MEETING February 19, 2003 APPLICANT ITEM NO. 3 REQUEST Revenue Enhancement Task Force Discussion of Objectives AGENCY COMMENTS CITY CLERK: CITY ENGINEER: CITY PLANNING DIRECTOR: CITY ATTORNEY CITY POLICE DEPT: CITY FIRE DEPT: CITY BUILDING DEPT: CITY WATER DEPT: CITY SEWER DEPT: CITY PARKS DEPT: MERIDIAN SCHOOL DISTRICT: ADA COUNTY HIGHWAY DISTRICT: SANITARY SERVICE COMPANY CENTRAL DISTRICT HEALTH: NAMPA MERIDIAN IRRIGATION: SETTLERS IRRIGATION: IDAHO POWER: US WEST: INTERMOUNTAIN GAS: MERIDIAN POST OFFICE: OTHER: Contacted: Dote: Phone: Materials presented at public meetings shall become properly of the City of Meridian. \ :i '- t,f'... ~ t", 0 ~ t'-o - - \r.; \ i tJ'.. u.l ~ o u- ~ 4. l- 'i U1 ~ o ~ i w U1 '::) m Gi ~ \,fJ ~ \; ~ Q() r\ - ~ ~ \ t'-- ~ \y. \'f'\ ~ ~ ~ '';).. ~ ~ Z \ Y: ~ &- ~I ~ '"' 0. ~ (/} ~ ca ~ ~ C:t i ~ (( 'Z 'CJ t'lI f'- \ ':!" ~ ~ -- \ .::-"t. \".... \...V co rJJ ~ t r ";;;7 v \Q r t\ (" ~ ..9 I;:-.... ('\J \ \ ~ "'J- !,-~ ~ - ....s 0- \ ~ "l '"' :v ~ ~ \\ . 'yJ \i\ ~ ~ 1:' <0' ......... ~ '" \ ~ .~ f"\) ~ ~ CQ $ '3 ',u ( " ~ ~ ~ \\}. ~J 1;:'...." .~ ] '-...5::; <S- ~"{\ ~ ....9 0..... -~ - ...) l \ ~ I()o ~ ,;() ~ oa ~ --S ~ q-.. \ ~ .~ .'Q) \ ~ QO t;'-\ VJ ~ .- ~ E 7s ;~ ~ ~~ ~ dl. \J ,,~ c{ "'7.' ~ ~ ~ 'J', 1 /""'\ ~ 0 ~ t ~ --.:.... s;.. "7 C. \\;... ~ ~ tl ..:.:) ~ ""'2.:- ~ ~ \-, -"7 - .\-- .~ m o \iJ \ to ~ \..... . -' ~ f) v; 2 ...... ~ a -..:.. ..-- <:U .-:X ~ < ~ \\ \~ \ @) '\I 1,\_1 t,.. o -- o '2 '-')L. ~ ~ c ~~ ~ \ J ~ ~ \,- <... f 0 .....-l /) Revenue Enhancement Task Force Members Meridian School District Rep. Christine Donnell 454 E. Tobago Ct. 855-4540 Blue Cross Rep. Rod Stiller 3543 E. Presidential Drive 331-7646 Meridian Development Corporation Rep. Lori Hoalst Jones 1434 N. Meridian Rd. 887-1786 Jim Keller 587 E. Kingsford 888-2551/288-1992 w Brad Gilmore 1157 E. Puffin 855-9337 brad. Gilrnore@atomox.net Shaun Wardle 3064 N. Tumberry 887-6817 home Sheila Bresnaham - Mon. or Tues. only 1785 N. Summerfield 887-4654 Rural Fire District Rich Greene 2580 S. Linder Rd. 895-8050 Darrel McRoberts 581 E. Jamaca 884-1998 Association of Realtors Gene Strait 418 E Pine 409-0374/377-8850 Irma Atkinson P.O. Box 471 1124 N. Lightning Place 884-3739 Meridian Senior Center Rep. AI John 1483 E. Willowbrook Ct. 288-1019 Fred Helm 1892 E. Summerdawn Dr. 288-2725 Joe Bongiorno 2812 W Gemstone Dr 887-6847 Meridian Chamber of Commerce Rep Ro bert Chandler Memorial Monuments 598 W. Franklin Rd 888-2665 Impact Fee Committee David Fulkerson 424-3289 Meridian City Pre-Council Meetinq l.W IJfj IiJ IF it January 28,2003 The Pre-Council Meeting of the Meridian City Council was called to order at 6:00 P.M. on Tuesday, January 28,2003, by Mayor Robert Corrie. Members Present: Mayor Robert Corrie, Bill Nary, Tammy de Weerd, and Cherie McCandless Members Absent: Keith Bird Others Present: Kenny Bowers, Stacy Kilchenmann, Bill Nichols, Sharon Smith, Reta Cunningham, Mike Worley and Will Berg. Item 1. Roll-call Attendance: X Tammy de Weerd X X Cherie McCandless 0 X Mayor Robert Corrie Bill Nary Keith Bird Item 2. Adoption of the Agenda: Item 3. Presentation of Audit Report by Balukoff & Lindstrom: Item 4. Presentation of Finance Report by Finance Department: Item 5. Cash Receipt Policy: Item 6. Discussion of Building Options with Lemley & Associates, Inc.: Item 7. Discussion with Revenue Analysis Task Force: Corrie: Okay I guess discussion of Revenue Analysis Task Force I assume that is the mill levy name or a possibility of name there. De Weerd: I don't know who came up with it at the last meeting but it was coined at that time. Today we just needed to verify the committee, define the scope and a suggested timeframe. I would open it up for comment. I can tell you we have Christine Donnell, Lori Jones, Ryan Riley, Shaun Wardle, Rich Green, and Joe Bongiorno - I like that name. It's just fun to say. Robert Chandler, Blue Cross is going to get back to me in the next day or two with their name. Gene Straight, Al John, David Fulkerson, Jim Keller, Brad Gilmore, Sheila Bresnahan, Darrell McRoberts, Irma Atkinson and Fred Helm. Corrie: Who's AI John? De Weerd: AI John is the representative from the Meridian Senior Center. Corrie: Okay I heard the name but I couldn't place it. MerlUlan ....,lY r-re-....OUnCll Meet''1g January 28. 2003 i Page 2 of 7 /Q)/& lI(jAJ~~ McCandless: You were thinking of Dan John from the (inaudible). Corrie: Yes that's - (Inaudible discussion amongst Council Members) Corrie: (Inaudible) the toolbox. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: I guess one timeframe we probably need to look at is 1 know we were not prime to pre-supposing outcome of any sort but I do want to at least leave the task force the ability to go fOrNard with a levy proposal if that's what they decide that they need. I guess I would have to look to Mr. Berg. If we were going to have a levy - if we were going to have a vote on a levy proposal the furthest one - the furthest date this year would be the November election date again I assume. What would be the drop-dead date to have that proposal to be able to put it on the ballet in November? Then we work backwards on whether or not that's - Berg: Mr. Mayor, Members of the Council and Councilman Nary I believe - I'm trying to refresh my memory - 45 days I think is the announcement of an election so what we have to do prior to that - but that's the time that we - I think 45 days prior to the election date. Nary: So I guess time period wise then we would want I mean no less than 60 days before the November election. I don't mean that has to be the cut off date but that would be the latest we would want something so how much further back from that date do we think would be a reasonable amount of time because that's what the committee (inaudible) maybe something totally different but- ***End Of Side Two*** Nary: -- as much as it takes us to kick it around to decide what we're going to do next that's probably not at bad - we've also got budget in July so we really want to - we really probably want to have some closure from this task force by the end of June at the latest. De Weerd: End of June. Nary: Because that would give us the budget time to deal with if there's budgetary issues that we need to consider by whatever this task force comes up with that would give us the flexibility to do that and then give them about four months - De Weerd: Four to five months. ffd)/?:;) trif 4J is' ff> Nary: Four to four and a half months probably to get together to come up with something. That's probably enough time and if they need more then I guess they can tell us they need more. They just may lose some dates or they may lose some options this year to do things. That way at least we have some better idea of what to do but at least that would be at least an initial target I would say is the end of June. Meridian c.;ity l-'re-c.;ouncil Me"';"g January 28, 2003 ( Page 3 of 7 Corrie: June 30th is on a Monday. (Inaudible discussion amongst Council Members) De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: Is there - do you have suggestions on the scope? I mean we do realize that it will be to evaluate the revenue streams, look at cost of doing business and kind of the narrowing gap between revenues brought in and on going operational expenses. Do we want to further define that or have them define it? I think we need to provide on parameters. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: I mean I think this yellow and white sheet is a very good jumping off point that Stacy and her staff have provided to give us some idea of what the future could bring. I think that's really what we're asking this task force to do is based on what we think the future might be that may limit our options on doing things. What can we do to either address that without any change or what other changes and proposals they think we can do to not end up with this negative balance so I guess a potential (inaudible) in FY04, which isn't very far away. Those I think at least that's a starting point. Yes, I agree with what you're saying it's just I think we have to give them some idea of what they're doing otherwise they're going to spend a month just defining why they're there and waste a month discussion it. I'm not sure how much more besides these particular information as well as probably having someone from Stacy's staff or Stacy working with this group. Not necessarily, a member of the task force but providing that level of input so they have some idea of you know what the framework the city has to live with. What do we currently have in relation to our mill levy projected revenues - where our revenue sources are currently? I don't remember if we had that discussion about having the finance staff working with this group but I think it's pretty critical for them to know where do we get our money from, how do we get it, and where our limitations are currently so they have some idea of where to start. De Weerd: That is how we've kind of set it out that kind of gave them a heads up to staff that they would be a resource to this but it's very imperative that the MenOlan (.;llY I-'re-councU Me""'lg January 28, 2003 ( Page 4. of 7 ~1fff~f?1 involvement is just on a resource basis so that they can stay as unbiased as they can just so we can keep those lines clear. Nary: Right what I don't' think we want and I don't think Stacy would have a concern about this. We don't want Stacy or her folks saying well we can't do that well don't do that (inaudible) we never can do those things. We want to really leave that plate open to these folks to give us whatever recommendations they think. I think the Governors' Task Force at least is somewhat of a model of what we're talking about. They came up with lots of suggestions. Some which weren't very practical but yet it was still allowed to make suggestions I mean you still had to look at the whole picture. They obviously weren't limited by people saying oh well you can't do that anyway so don't even bother making that suggestion. I don't think Stacy would disagree with that we want to just give them the information, let those folks make those recommendations not us and not really try to steer that one way or another or try to sway one avenue or a different one. I think the committee needs to figure those things out. They may want to ask those questions, can we legally do that or is there a means to do that currently and get the answer to that but we don't really want to drive the outcome. We really wan the outcome to be whatever these folks come up with. Corrie: In other wards you're not going to box them in? Nary: Right exactly. De Weerd: Right no just provide them the resources and this indeed, Stacy is a great starting point for them to go with. As well, I know our general (inaudible) departments have really developed their Capital Improvement Plans and so that will help in the evaluation. Stacy, maybe you can pull together a packet of information that we could get to this committee. We could review that, make suggestions on other pieces that we might feel are needed and start working to set a date on getting this Council Budget Committee together to first meet. Maybe we should really target the second week in February to kick it off and then from that date, they can basically set their own schedules and that sort of thing. Let our staff know that they need them there as a resource or not. Kilchenmann: And I think we have the revenue - Gary turned me off. We have the revenue develop manual that we have with the budget and that kind of - that gives narrative on each source so I think that would be useful. I think we almost have everything we would need to give them to get started. De Weerd: We probably want to mail that out in advance of their first meeting too so they have an opportunity to go through it, have questions and that sort of thing. Kilchenmann: Yes I was thinking maybe one meeting with the staff to explain evel)'thing and then let them meet on their own and just brainstorm like the Governors' Task Force did. Meridian City Pre-Council Me" 'q January 28, 2003 (, Page 5 of 7 .... JY)1Xi~!fttr Corrie: You could possibly have all that the first meeting and then whatever is needed by then as they go - Kilchenmann: -Yes I think we already have- Corrie: -- let them have their go and then they can pre-rein and do what they need to get to us (inaudible). Any suggestions on the timing in February 11th, or 4th? Kilchenmann: Maybe the 11 tho Corrie: The 11 th okay Tuesday, the 11 tho Kilchenmann: I think we have everything we need. I think we already have it together. Corrie: You want (inaudible). We meet on the 11th. De Weerd: No, the Mayor is asking Stacy if she can have the materials. Corrie: Oh, if she can have that on the 11th by then for that committee. De Weerd: Do you think it would take that long Stacy? I would like to see them start meeting mid February if they're going to make the end of June they - Kilchenmann: Well if I use the materials I have now I could probably get it together tomorrow. I think we have enough to get them started. Corrie: Okay we'll give it the 4 th then. Nary: Just for us to look at and for a comment and then hopefully then can get a meeting set up the week of the 10th. Kilchenmann: I'll put it in your box. I was going to say I would email it but it gets really long so I'll stick it in your boxes to look at. De Weerd: And Will if you could look at the city calendar and see when we have availability at city hall to set a time. . Berg: Mr. Mayor just to - you're looking for a recommendation from this committee correct? This is a task force that is from the Mayor and City Council so they'll have to have published their date for their meeting, open it to the public and take minutes themselves so they can respond back just like any other body. Corrie: Do you have the list and their addresses? De Weerd: No, [ have their names I don't have their addresses. Meridian City Pre-Council Me.-"~q January 28, 2003 ( . Page 6 of 7 - uU~/F1f Corrie: Okay well we need to get that - put the two together then. If you can give me that entire whole list, I'll have put the names and the addresses together for us. If you can get that to me this week or as quick as possible I'll have Anita take care of that. De Weerd: Okay. Corrie: Anything else. (Inaudible discussion amongst Council Members) Nary: You just said anything else, you didn't say (inaudible). De Weerd: Mr. Mayor. Corrie: Yes. De Weerd: If we have an opportunity to discuss or go into Executive Session we might want to take five minutes and do so under which code here? Nary: 67-2345(f) (inaudible). De Weerd: Yes so I would make a motion that we move and go into Executive Session under State Code 67-2345(f). Nary: Second. Corrie: Okay motion been made and second to go into Executive Session. Any further discussion. Roll call vote please Mr. Clerk. Roll Call: Nary, aye; de Weerd, aye; McCandless, aye; Bird, absent. Corrie: Okay we should all adjourn to the office across the hall. (Return from Executive Session) De Weerd: Mr. Mayor I move we come out of Executive Session. Nary: Second. Corrie: Okay motion made and second to come out of Executive Session. All those in favor say aye. All ayes motion carried. Let the record show that no basic decisions were made in the Executive Session. MOTION CARRIED: THREE AYES, ONE ABSENT Corrie: At this time, I will entertain a motion to close the Pre-Council Meeting and come back at 7:00. MenOlan (.,;lty t-'re-(.,;ounCiI MeeU"CJ January 28, 2003 'i Page 7 of 7 De Weerd: So moved. [@f&/1t lf1f ~ IfrIJ McCandless: Second. Corrie: Okay all in favor say aye. All ayes, motion carried at 7:00 we'll be back. MOTION CARRIED: THREE AYES, ONE ABSENT MEETING ADJOURNED AT 6:38 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVED: ROBERT D. CORRIE, MAYOR I I DATE ATTESTED: WILLIAM G. BERG, JR., CITY CLERK -.o; Meridian City Pre Council February 11 , 2003 Page 17 of 24 Corrie: Okay. W-here we are now is were still investigating the plans and what administrations and that. Pauline. Skeggs: Council members and Mayor I just wanted to add. At the time that we felt we didn't have a plan in compliance we didn't have a copy of the Waddell Reed plan and we needed to make a decision to move forward in order to be in compliance. That was the answer to your question Councilman Nary. We didn't have that plan document in hand therefore we felt we weren't in compliance. We didn't get that plan document until January and we had already made that decision in December because we wanted to be in compliance. Beehler: Councilman Nary, the actual plan was signed in 97 and at that time the plan documents were here because -- what you do is you sign the documents and they tear them out of the book and you keep the book and I'm not sue what happened to them at that point but we - on those types pf plans the adoption is part of the plan and the book stays here and I don't know what happened to that back in 1997. But the adoption agreement is part of the plan document itself. So I'm not sure - (End of side one 6:20 p.m.) Beehler: -- all this time I thought you were just looking for the updated version which had been done and the final print was in January. So I thought all you needed was just the final print I thought you had the original plan since 1997. Skeggs: Councilman Nary and Council members and Mayor. Janice did find the plan document in the original with the signature. So and this one is dated August of 1994. The law changed in 96. So this one wasn't in compliance with the law. When Doug brought in the new one he gave me a copy and it was 97. I had asked him to bring me the copy that was in place when the document was signed and the one he brought in was dated 1997, but the one in the actual plan was dated August of 94. Beehler: Yeah the one Item 5. Revenue Task Force - Objectives and Members: Corrie: Next one is revenue task force objectives and members. I think we got a list of members or potential members here of a committee that would be looking into the mill levy along with some other ideas on the 19th of February meeting. I guess we have a couple of them haven't yet - Ron Steller is Blue Cross. Do we have any others that have not been filled? De Weerd: Mr. Mayor. Meridian City Pre Council February 11, 2003 Page 18 of 24 Corrie: Mrs. de Weerd. De Weerd: With the SCA I never received a name back from them. All these people have been contacted about the 19th, which is how we got all the address information, and so they're interested and ready to go. Corrie: I have one other name that the city believe it or not is my son that wanted to get on this committee because he wanted to see what he could do as far as the neighborhoods around there and how they thought. I would add that name if we didn't have any problems here, which I didn't see any conflict but he would like to be there. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: When we talked about that I thought I had talked with all the Council and the feeling was we want this to be as un biased as possible in perceptions. I don't think -- Gregg definitely has his own thoughts but we really need to be conscientious of having a bias already set going into it. Anyone that would be associated with anyone of us up here would have that bias perception. I don't know what your feelings are on that. If we want to have the impression of a clean recommendation coming back from this committee that we just need to be very careful with who we put on there so that the perceptions not there that its already loaded with the end result people think we want to see. Not that we're going into this with any preconceived notions. We just want an un biased report back but I guess that would be my concern. Corrie: Well knowing him it's not going to be biased for me. De Weerd: I know --. Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: What little bit I know of your son Gregg I have a lot of respect for his thoughts and opinions. I guess I would concur though with Council Member de Weerd that part of what we are trying to do because of the difficulty we've had with this particular issue is making sure that the publics perception is that we have tried to bring forth something that none of us up here have tried to drive in any particular way. I would welcome that - I mean this is a committee that is subject to all the public meeting requirements and I would hope that Gregg Corrie would participate actively in this committee in providing input and providing his thoughts and other people that he works with and deals with because I think he would be invaluable. Again I think it's a perception ] don't necessarily think it's a Meridian City Pre Council February 11, 2003 Page 19 of 24 reality that there is a concern about some bias I just think its something that we should probably be cautious of but I would really welcome his input to this group because I think he would be a very big help for them. Corrie: I do too. Like I say my influence and him - there is nothing on that. Nary: We all are parents. Corrie: And I don't have any objection to Ryan Riley on there either under the circumstances you have to be careful there too. Is he your campaign manager? De Weerd: Yes. I'm not related to him. Corrie: It's not related but there is still having a pre-concept of what something might look like and I don't want that to fall on your shoulders either. If the Council doesn't have any problem with the Ryan Riley on there I don't see any concept of being involved there anyway. I don't see where Gregg would but if one does then the other will too so whichever the Council. McCandless: If we are concerned about that then I would be concerned about Shawn Wardle because he is on the Parks Commission so - Nary: Well there is two representatives from the Parks Commission, that was the De Weerd: We asked for representatives. McCandless: But it's the same concept. Corrie: Well if you don't have any problem - he said he would like to work on it that's fine with me. It's just up to the Council and if they want to do it that's fine. Perception will always be there no matter who you have on it and its just will they do a good job and of course, you know what my perception is already and what things should be done. I guess I'll ask the question does it make a difference whether Gregg is on there or not? McCandless: My only concern is if we wouldn't allow Gregg to be on it then we shouldn't allow Shaun on it either or even Riley because of their association. Nary: I guess the intent was to have some Parks Commission people participate in the committee whether we have Shaun or Ryan Riley or somebody else from the Parks Commission. The intent was to have somebody from the Parks Commission on it. Meridian City Pre Council February 11, 2003 Page 20 of 24 McCandless: And that is okay I have no objection to that. I just have an objection to if that is the reason for keeping Gregg off then we should look at some of the other names too. Corrie: Do you have any problem with it? De Weerd: I only brought it up because that was the feedback I got from Council so don't kill the messenger. Corrie: I'm just saying do you have a problem with him on there? That's all I'm saying. De Weerd: I don't have a problem because I know he's not influenced by you but again I would also just lend back to the perception. I know that this is going to be such a temperamental topic that we just need to go over board. If we want to go overboard then and there is an issue with Ryan I think he would happily step off if people thought he had a conflict. Corrie: I don't think you need to step off and I think Gregg can work on it. Who cares? This is a committee for the Council to look at what the public is thinking. This is supposed to be a (inaudible) I mean my State of the City said that's what its going to be. Whose on it doesn't make any difference if they all get together and say this is what is out there the people at this point really don't feel its necessary or they do. We are trying to get the publics - the way I look at it we are trying to get the public to tell us what they think. They will tell us so I really don't see any problem with him (inaudible) and she doesn't either so if you don't see a problem then lets --. Nary: Let's go for it I think its fine. Lets do that. It's a large group of people they are going to need as much assistance and input as they can get. Corrie: Okay then any other names that anybody would like to add? Nary: I was just going to ask on the Daryll McRoberts is that the right address? Is it Jamaica or is there a Jamaca Street in Meridian or is it Jamaica Street, which is over in Meridian Greens. De Weerd: That's only the spelling that was on the list Anita gave me. Nary: There is a zillion new streets here but I know there is a Jamaica Street over in Meridian Greens so I just want to make sure. De Weerd: I don't know I just copied the information that she gave me. Nary: We just want to make sure we ask somebody and we don't send it to the wrong place but other then that. No these are just fine. Meridian City Pre Council February 11, 2003 Page 21 of 24 Corrie: Okay and if you would like to be at that first meeting it's the 19th of February. I know that Tammy will be there, correct and I will be there? McCandless: Where? Corrie: Here at City Hall and if you would like to come you certainly can and ask any questions I'm sure there are going to be some questions about what there to do and we'll give them there marching orders. Nary: Time? Corrie: At 7:00. Nichols: Mr. Mayor Members of the Council, be careful about having a quorum. Corrie: You are right thank you. Nichols: Two Council Members does not constitute a quorum but three would. Corrie: Am I a member of the Council? Nichols: No. Corrie: So all of those two have got to stay home. Nary: That's a tough one? De Weerd: Twist your arms. Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: Either that or you know I really think its important to show the commitment of this Council and its not an additional problem since this meeting needs to be published or noticed anyway to have a quorum there just as long as we post it and do the appropriate noticing. Corrie: I agree with Tammy and I think it would be nice if we were there, show our support, and tell them what you want them to do. Then they can go out and do their own thing about this but - De Weerd: Not that I didn't want you to have an out but- Nary: So you were showing us the door and now you shut it back in our face. <@~ ~ ~~ Meridian City Pre Council February 11 . 2003 Page 22 of 24 Corrie: Sit in for the City Clerk. We can on the 19th maybe notice that as a Special Meeting at 7:00 (inaudible). McCandless: So we just lost our option. Corrie: I'm sorry dear. Nary: Yes you lost your option. Corrie: So the 19th of February at seven o'clock we will be here and greet this people and wish them well and go from there. Anything else? Nichols: Mr. Mayor. You can check with the Clerk but if your purpose of your meeting is rather short and if their meeting is going to continue after yours then you can have a joint meeting. Then adjourn yours and you can go home and let them do their work. If that's what you wish to do. Nary: I think that is exactly what we wish to do. Corrie: No influence of the Council just that we are all behind them and we would like to see them give us some answers as best they can by a certain date and this is what we want them to do and folks you have the meeting. That's what we will do thank you. De Weerd: Mr. Mayor. Corrie: Mrs. de Weerd. De Weerd: I guess one last question. Stacy put together a packet of information to present to this committee did anyone have any comments on that. Things that they would like to see added or is this a good starting point? Nary: Mr. Mayor. Corrie: Mr. Nary. Nary: I think it was a very good starting point I meant to reply to the email but I think it is a good place to start and at least a good avenue to assist them in at least filling out where they begin -- obviously they are going to want more information. They are going to find ways to gather that and how they are going to do that. I think it's a starting point. McCandless: Mr. Mayor. Corrie: Mrs. McCandless. ~~ 11~ ~ Meridian City Pre Council <f:};~ February 11, 2003 :v Page 23 of 24 ~ McCandless: Just so - I have no problems whatsoever with our Park <1~ Commission peoflle on there. I only brought it up because you wanted an ~ unbiased committee and I would say that they might be a little biased themselves but I have no objection. Corrie: But we can make that understanding that no bias is nothing. They start from the bottom and work their way up and if they get information form the city and people out there will talk believe me I know they will talk to them because my phone has been ringing off the hook and I don't wait till you get here. De Weerd: You know I just think that everyone is going to have a bias. You have your representative from the business community and you have your representative from the development corporation. There is always going to be the potential for someone that has a strong preference. McCandless: I don't have any problem with it. It was just the situation as it was when I brought that up. Corrie: You show me a person that has no bias and I will show you a gravesite. Okay with that being said anything else. De Weerd: Can I quote you? Corrie: I'm not a quoter. Since that is that last of our Pre-Council Agenda and we have about 15 minutes to go to the regular meeting I will entertain a motion to adjourn. De Weerd: So moved. McCandless: Second. Corrie: Motion has been made and second to adjourn the pre council meeting all those in favor say aye. All ayes. MOTION CARRIED: ALL AYES MEETING ADJOURNED AT 7:40 P.M. (TAPE ON FILE OF THESE PROCEEDINGS) APPROVED: ROBERT D. CORRIE, MAYOR / I DATE ATTESTED: A (;uidc 10 \lunicipaJ Go....ernment for City Officil1ls ( that a statute. ordinance or other legislative act expressly create a subagency so long as there is an enabling provision which allows that subagency to come into existence at some future time. -:. 1?- Question No.4: Are_advisory committees, boards and commissions subject to the Open Meeting Law? Answer: Section 67-2341 (4) defines "public agency" to include "any subagency of a public agency which is created by or pursuant to statute. ordinance. or other legislative act:' and section 67-2341 (5) defines "governing body" to include any body "with the authority to make decisions for or recom- mendations to a public agency regarding anymatter." (Emphasis added.) Thus. advisory committees. boards and commissions are subject to the Open Meeting Law if the body is created by or pursuant to statute: ordinance. or other legislative act and if the body has authority to make recommendations to a public agency. In contrast. an administrative committee. board or commission is not subject to the Open Meeting Law if it is not entrusted with the formation of public policy, but merely carries out the public policy established by a governing body, and if its activities do not constitute the making of "decisions for or recommendations to" a public agency, Idaho Water Resources Board v. Kramer, 97 Idaho 535, 548 P.2d 45 (1976). Likewise. the Open Meeting Law does not apply to voluntary. internal staff meetings if the group is not created by or pursuant to statute, ordinance or other legislative act. even though the discussions may lead to recommendations to the governing body. See, People ,~ Carlson. 28 Ill.App.3d 569, 318 N.E.2d 675 (1975): Bennett ,: Warden, 333 So.2d 97 (Fla. 1976). ." Question No.5: Does the Open Meeting Law apply to the Governor, the Legislature or legisla- tive committees? .. Answer: The Open Meeting Law has no application to the Governor when he is acting in his official executive capacity since the Open Meeting Law does not apply to a public agency headed by a single individual. The Open Meeting Law does apply to the Legislature and its committees since section 67-1346 specifically provides: All meetings of any standing. special or select committee of either house of the legislature of the state of Idaho shall be open to the public at all times. and any person may attend any meeting of a standing, special or select committee. but may panicipate in the committee only with the approval of the committee itself. F unher. with respect to the Legislature. the Idaho Constitution. anicle 3. section 12. states; "The business of each house, and of the committee of the whole shall be transacted openly and not in secret session:' Thus, section 67-2346 carries forward the policy of the Idaho Constitution and applies to legislative committees. However in State v. Thome. et al: Idaho Fourth Judicial District No. 3L-97763, the court held that the penalty provisions of section 67-2347(2) were not applicable to members ofa standing commit- tee of the Idaho Legislature who allegedly held a secret meeting in violation of section 67-2346. Page 56 ."'1. \.,UIU" '" .'IUII''''P<lI \..oU\CrllIllCIII Illr \..It~' \.JlllC:l:ll~ ( r'. r IDAHO OPEN MEETING LAW THE ACT (Idaho Code SS 67-2340 through 67-2347) 67-2340. Formation of public policy at open meetings. The people of the state of Idaho in creating the-insuuments of government that serve them. do nm yield their sovereignty to the agencies so created. Therefore. the Legislature finds and declares that i~ is the policy of this state that the formation of public policy is public business and shall not be conducted in secret. "*- 67-2341. Open public meetings - Definitions. - As used in this act: (1) "Decision" means any determination, action, vote or final disposition upon a motion. proposal. resolution, order, ordinance or measure on which a vote of a governing body is required, at any meeting at which a quorum is present, but shall not include those ministerial or administrative actions necessary to carry out a decision previously adopted in a meeting held in compliance \Vith sections 67-2342 through 67-2346, Idaho Code. (2) "Deliberation~' means the receipt or exchange of infonnation or opinion relating to a decision, but shall not include informal or impromptu discussions of a general nature which do not specifically relate to a matter then pending before the public agency for decision. (3) "Executive session" means any meeting or part of a meeting of a governing body which is closed to any persons for deliberation on certain matters. (4) "Public agency" means: (a) any state board, commission, department, authority, educational institution or other state agency which is created by or pursuant to statute, other than courts and their agencies and divisions, and the judicial council, and the district magistrates commission: (b) any regional board, commission, department or authority created by or pursuant to statute; (c) any county, city, school district, special district, or other municipal corporation or political subdivision of the state ofIdaho; (d) any subagency of a public agency which is created by or pursuant to statute, ordinance, or other legislative act. (5) "Governing bodt~ means the members of ~y public agency which consists of two (2) or more members, with the authority to make decisions for or recommendations to a public agency regarding any matter. (6) ~'Meetingn means the convening of a governing body of a public agency to make a decision or to deliberate toward a decision on any matter. (a) "regular meeting" means the convening of a governing body of a public agency on the date fixed by law or rule, to conduct the business of the agency. (b) "special meeting" is a convening of the governing body of a public agency pursuant to a special call for the conduct of business as specified in the call. Page 5 J A l,UIOt: w~lunH':lpal vo\'(.'rnmcnl lor Ci(~. Utllclals 6i-23.e. Governing bodies - Requirement for open public meetings. (1) Except as provided below. all meetings of a governing body of a public agency shall be open to the public and all persons shall be permitted to attend any meeting except as other..vise provided by this act. No decision at a meeting of a governing body of a public agency shall be made by secret ballot. (2) Deliberations of the board ofrax appeals created in chapter 38. title 63. Idaho C ode. the public utilities commission and the industrial commission in a fully submitted adjudic:1tory proceeding in which hearings. if any are required, have been completed, and in which the legal rights. duties or privileges of a party are to be determined are not required by this act to take place in a meeting open to the public. Such deliberations may, however. be made and/or conducted in a public meeting at the discretion of the agency. (3) Meetings of the Idaho life and health insurance guaranty association established . - _ 01 under chapter 43. title 4 L Idaho Code, the Idaho insurance guaranty association established under chapter 36. title 41, Idaho Code and the surplus line association approved by the director of the Idaho department of insurance as authorized under chapter 12, title 41, Idaho Code, are not required by this act to take place in a meeting open to the public. (4) A governing body shall not hold a meeting at any place where discrimination on the basis of race, creed, color, sex, age or national origin is practiced. *- 67-2343. Notice of meetings. (1) Regular meetings. No less than a five (5) calendar day meeting notice shall be given unless otherwise provided by statute. Provided however, that any public agency that holds meetings at regular intervals of at least once per calendar month scheduled in advance over the course of the year may satisfy this meeting notice by giving meeting notices at least once each year of its regular meeting schedule. A forty-eight (48) hour agenda notice shall be required in advance of each regular meeting. however, additional agenda items may be added after completion of the agenda up to and including the hour of the meeting, provided that a good faith effort is made to include in the notice all agenda items known at the time to be probable items of discussion. The notice requiremen't for meetings and agendas shaH be satisfied by posting such notices and a~das in a prominent place at the principal office of the public agency, or if no such office exists, at the building where the meeting: is to be held. ~ - . (2) Special meetings. No special meeting shall be held without at least a twenty-four (24) hour meeting and agenda notice, unless an emergency exists. An emergency is a situation involving injury or damage to persons or property, or immediate financial loss, or the likelihood of such injury, damage or loss, when the notice requirements of this section would make such notice impracticable, or increase the likelihood or severity of such injury, damage or loss, and the reason for the emergency is stated at the outset of the meeting. The notice required under this section shall include at a minimum the meeting date, time, place and name of the public agency calling for the meeting. The secretary or other designee of each public agency shall maintain a list of the news media requesting notification of meetings and shall make a good faith effort to provide advance notification to them of the time and place of each meeting. (3) Executive sessions. If an executive session only will be held, a twenty-four (24) hour meeting and agenda notice shall be given according to the notice provisions stated in subsection; Page 5:! J j -..,. ;' 1.,' ...... . i. " A (;uidc to Municip:J1 (;o\'crnmcnt for City Oflil;i"h ( . , (2) of this section and shall state the reason and the specific provision of law authorizing the executive session. :\- 67-2344. \Vritte? minutes of meetings. (I) The governing body of a public agency shall provide for the taking of written minures of all its meetings. Neither a full transcript nor a recording of the meeting is required. except as otherwise provided by law. All minutes shall be available to the public within a reasonable time after the meetim!. and shall include at least the following: information: (a) All memb~rs of the governing body present: - (b) AJI motions, resolutions. orders. or ordinances proposed and their disposition: (c) The results of all votes, and upon the request of a member, the vote of each member. by name: (2) Minutes of executive sessions may be limited to material the disclosure of which is not inconsistent with the provisions of section 67-2345, Idaho Code, but shall contain sufficient detail to convey the general tenor of the meeting. 67-2345. Executive sessions - When authorized. (I) Nothing contained in this act shall be construed to prevent, upon a two-thirds (2/3) vote recorded in the minutes of the meeting by individual vote, a governing body of a public agency from holding an executive. session during any meeting, after the presiding officer has identified the authorization under this act for the holding of such executive session. An executive session may be held: (a) To consider hiring a public officer, employee, staff member or individual agent. This paragraph does not apply to filling a vacancy in an elective office; (b) To consider the evaluation, dismissal or disciplining of, or to hear complaints or charges brought against. a public officer, employee, staff member or individual agent, or public school student: (c) To conduct deliberations concerning labor negotiations or to acquire an interest in real property which is not owned by a public agency; (d) To consider records that are exempt from disclosure as provided in chapter 3, title 9, Idaho Code: .. (e) To consider preliminary negotiations involving matters of trade or commerce in which the governing body is in competition with governing bodies in other states or nations; (f) To consider and advise its legal representatives in pending litigation or where there is a general public awareness of probable litigation; (g) By the commission of pardons and parole, as provided by law. (2) Labor negotiations may be conducted in executive session if either side requests closed meetings. Notwithstanding the provisions of section 67-2343, Idaho Code, subsequent sessions of the negotiations may continue without further public notice. (3) No executive session may be held for the purpose of taking any final action or making any final decision. - . 67-2346. Open legislative meetings required. All meetings of any standing, special or sel~ct committee of either house of the Legislature of Pllge 53 ( STACY K[LCHENMAN;>.i FINANCE DIRECTOR ivL\ YOR ROBERT D. CORRIE ~~~i'~~~l~~ ~;;;;b::;P1~ ~, \ . lD,"HO )Y' ~. / ].0, /- 33 East Idaho ~-,'.,.... ,.,0 -\.1"'['. IDo~",~ Cl-lERIEMcC:\NDLESS ~J,w,~~,,,,~~~ '''''' . ~1](hl11_ (l.',)"t_ . 100' (2mO ~&}:-l4::'3 ,".,~_~~~..~".~=~=_~_,~~.=.=="~~,~~~..:_~~E~~::l:~~,,,_~~=,~,~""_,,,,~,cl_'"'~."""N~/~N5;J1~1..2J}.li~~JJ,,~~.-~,>>"".~ J ;\NICF S~111Il RET.\ Ct;NNIi'<GII.\,] CYrIlY DENNISON B.\RI!.\R.\ HOllLUl TElun PxrERNosITR Ctll'NClL MI:\lUFI{S \VILL1.\\1 L.iv1. Ni\RY KEITH BIRD TAM~IY DE WEERD 2/12/03 Revenue Enhancement Committee Members This packet contains information about City of Meridian revenue sources. The Revenue Manual accompanied the FY2003 Budget Development Manual. It explains the revenue sources for all of the City's funds. The fund that you will be examining is the general :fund. The enterprise fund is like a private "enterprise"; it operates on the fees charged users for specific services received. Enterprise revenues cannot be transferred to the general fund although some of the general City administration and support costs are transferred to the enterprise fund. Following the Revenue Manual is a schedule titled City of Meridian, Budget Projections and Scenarios- General Fund. The top half of the schedule illustrates historical dollar and percentage increases in the expense components of the general fund. The middle section of the schedule highlights expected increases in health insurance if all other expenses remained the same. The bottom section shows how much of the budget would remain for capital outlay (equipment, buildings, machinery) if the operating and personal expenses increased at historical rates. The report titled "City of Meridian Budget Enhancements General Fund" is a list of budget enhancements added to the general fund in the last three years. Budget enhancements are additions to the base budget, additional people, programs, or capital items. "Base budget" is the amount needed to operate at exactly the same level as the previous year. The next schedule is the Capital Improvement Plan prepared for the FY2003 budget development. This plan will be updated for the FY2004 budget development. Finally the last two schedules concern property tax and the property tax levy. They are titled City of Meridian Property Tax Information and Property Tax and Property Tax Levy Rates. These reports show the various components of property tax, the amount for the base property tax, new construction and annexation. The report has historical and projected data. Please feel free to call me if you have questions. My direct line is 884-2468 ext 208; the City Hall phone number is 888-4433. If! am not available you can ask for Reta Cunningham, the City Accountant, or Janice Smith, the City Treasurer. -Xlfa c:; /CIJ;-e ~70fJ) Stacy Kilchenmann City of Meridian Finance Director City of Meridian FY2003 Budget Revenue Manual CITY OF MERIDIAN ECONOMIC FORECAST Meridian is in the process of developing standard five year revenue forecasting. The FY2003 budget will be the first year Meridian has prepared a revenue manual. For FY2003 we are developing a three-year forecast. Revenue forecasts need to be updated on a continuous basis as relevant indicators and actual data change. Housing starts and changes in utility accounts are two solid predators of revenue for both the general and enterprise funds. Fortunately there is a strong correlation between housing starts for the State of Idaho and the City of Meridian. The percentage of Meridian to Idaho housing starts has remained consistent for the past six years. Housing Starts Plotted on a Logarithmic Axis 100,000 10,000'" 1,000 100 10 1 (;.-'.-...; III III ... ....11I . j~~./ ,;_~.~: c~. ---Idaho -fII- Meridian '~,' Ill.' III ,.~~<.' It, III '. III .".".,' ~4' ~~~I _~_ :,ti,-",--'" ~,; ~ 'r ' 19961997 1998 199920002001 2002200320042005 1 IDAHO FORECAST - STATE OF IDAHO DIVISION OF FINANCIAL MANAGEMENT- JANUARY 2002 IDAHO FORECAST In keeping with the national economy Idaho's economy took a nosedive in 2001 with the effects expected to ripple into 2002. From the State of Idaho Division of Financial Management January 2002 Economic Forecast: " The Idaho economic outlook improves after this year as the national recovery hits full stride in 2003 and continues growing in the remaining years of the forecast. Idaho nonfarm employment grows about 2% per year in this period. Leading the charge during the first years of the recovery is the states service-producing sector. The goods producing sector will post sub-par employment until 2005. This reflects ongoing challenges in resource-based industries, soft investment spending, and the gradual decline in Idaho housing starts. In 2005, however, this sector's employment is expected to grow faster than overall Idaho nonfarm job growth. Idaho's real personal income's growth pace also improves after 2002. Powered by strong wage and salary growth, Idaho real personal income should advance 3.9% in 2003,3.4% in 2004, and 3.5% in 2005. Housing starts surged from about 3,300 units in 1988 to nearly 12,800 units in 1994. Housing starts did settle down to about 9,400 units in 1995, but strong nonresidential construction kept this sector's employment healthy. Since then, total housing starts have hovered in the 9,000 to 11,000 unit range. While this was below the 1994's peak, it is about three times higher than in 1988. Despite low interest rates, Idaho's housing starts are forecast to be 11,562 units in 2001, 10,679 units in 2002,9,678 units in 2004, and 10,036 units in 2005." 2 MERIDIAN HOUSING STARTS As demonstrated by the above logarithmic graph Meridian's number of new housing starts can be expected to correlate to the projected number of state housing starts. Over the last seven-year Meridian's housing starts as a percentage of the state's has ranged from 12 % to 7%, an average of 8.14%. Using the average and the Idaho housing start projection we can expect Meridian's housing starts to be 800 in FY2002, 803 in FY2004, and 817 in FY200S. Meridian Housing Starts Actual - FY1996 to FY2001 Projected - FY2002 - FY2005 1,200 1,000 800 600 400 200 o '} 4~c;," ~ ; " I-+- Housing Starts 1 ;{,s-\~,t".~' %..... "', .A"E tc:c' !~}"~",,i'l ~ t }:"'-" ...::..~' J<,_ cc~ .. .J . " '. F~J:,;.r :~.':' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 3 Audited FY2001 City of Meridian - Total Revenue $183,23SJ $1 ,579,2~ $5,644 iii Taxes II Licenses & Permits IIlntergovemmental 121 Fines & Forfeitures . Charges for Se!".ices illnteres t III Miscellaneous o Utility Service Fees REVENUE SOURCES City revenue comes from two principal sources. One, tax revenue that is used to finance services that cannot be provided on a fee per user basis such as public safety and city administration. Two, fee revenue that results from charging a fee for the measurable use of a service such as consumption fees for water and sewer or connection fees to hook buildings to utility lines. FY2002 Budget City of Meridian - Total City Revenue $1,355,700 ~$4,500 4 II Taxes II Licenses & Permits II!IIlntergovernmental B Fines & Forfeitures . Charges for Services II Interest III Miscellaneous o Utility Service Fees FY2003 Projected City of Meridian. Total City Revenue I!!JTaxes iii Licenses & Permits IIlntergo'vemmental El Fines & Forfeitures III Charges for Services $23,400~ $1,797,000 $1,616,522 ~$1,200 iii Interest II Miscellaneous o Utility Service Fees Note: Types of revenue are categorized as follows: Taxes: Property Tax Charges for Services Penalties and Interest Franchise Fees Licenses and Permits Alcoholic Beverage License Building and Utility Permits for Dogs Intergovernmental State Liquor Apportionment Court Revenue State Sales Tax State Revenue Sharing Rural Fire Cost Sharing Fines and Forfeitures Parking Fines Filing Fees School Resource Officers Sanitary Services Admin Recreation Programs Golf Course Expansion Park Reservation Fee Park Impact Fees License Investment Interest Miscellaneous 5 Analysis and projection of revenue is essential to the City's budget development process. Starting in budget year FY2002 the City adopted a budget process that identified the cost necessary to maintain the current service and activity levels, referred to as the "budget base" . Estimated revenue minus base results equals discretionary revenue, the revenue that is available to the City to use for program "enhancements". Budget enhancements are additions to the budget for new programs or services or that allows the City to provide the same service level in spite of population growth. Due to statutory restrictions that will be discussed later in this report the amount of discretionary revenue available in the General Fund is limited. This is illustrated by the following graphs. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY2002 BUDGET MONEY AVAILABLE FOR PROGRAM ENHANCEMENTS o Restricted Revenue . Discretionary Revenue IIiII Base Budget General Special Enterprise Fund Services Fund Fund 6 FY2003 BUDGET MONEY AVAILABLE FOR PROGRAM ENHANCEMENTS 100% 90% 80% 70% - 60% - 50% - 40% 30% 20% 10% 0% -, General Fund o Restricted Revenue . Discretionary Revenue II Base Budget Special Enterprise Services Fund Fund GENERAL FUND REVENUE The majority of general fund revenue comes from property tax, state revenue sharing, and licenses and permits with the majority being property tax. These revenues fund fire, police, parks, city administration, planning and zoning, and the issuance of building permits and construction inspections. The percent of contribution of each type of revenue to the general fund revenue "pie" changes little from year to year. The only "service" that is fully supported by user fee charges is the building department. The building department issues permits and conducts building inspections for both residential and commercial developments. 7 $563,035 $451,814 \ $515,466 $1,574,023 FY2001 Audited General Fund Revenue $440'000~400'000 $430,000 $493,500~ $668,700 Ii Property Tax l!I License & Permits OState Revenue Share D Rural Fire [I Service Fees iii Franchise Fees II Park Impact Fees D Interest [I Misc II Property Tax !IIII License & Permits o State Revenue Sha re El Rural Are (I Service Fees iii Franchise Fees II Park Impact Fees Ellnterest II Mise FY2002 Budgeted General Fund Revenue 8 555,600 FY2003 Projected General Fund Revenue fjj Property Tax IIIiI License & Perm its o State Revenue Share 6] Rural Fire II Service Fees iIiIl Franchise Fees II Park Impact Fees [lD Interest II Mise FRANCHISE FEES The state of Idaho allows city's to enter into franchise agreements with water, gas, electric, cable, and solid waste collection providers. The percentage collected varies from 1 % to 5% of the provider's gross sales. Natural Gas - The franchise fee is 3% of gross (net of uncollected accounts) annual sales. The City currently has a 30-year franchise agreement with Intermountain Gas Company, which expires January 7,2017. From 2000 to 2001 (calendar year) gross revenue increased from $211,353 to $310,688. Franchise fee revenue for natural gas is projected to be about $315,000 for year 2002. The projections is based on growth and starting the year with a colder than normal winter. Intermountain Gas Company hopes to implement a price reduction program for the calendar year 2003. Fluctuations in this revenue source may be experienced because of rates and weather changes related to 9 ( heating or cooling. Projections for population and sales growth would be an increase of 3.0% for FY 2003. Cable - The franchise fee is 5% of gross sales. Cable fee revenue was about 1 % of total general fund revenue in FY2001. The dollar amount is not expected to change materially in the future. Electricity - Franchise fee is 1 % of gross sales The City currently has a 25-year franchise agreement with Idaho Power, which expires November 1,2023. Revenue from FY2002 through FY2005 is projected based on the City's projected growth of 8.14% and an annualized rate increases of5%. On May 16,2002 the PUC approved a slight increase for most residential customers, varying from 3 to 10 percent. Solid Waste Disposal- The City has contracted with private company, Sanitary Services Inc to provide garbage pick-up service since April 1, 1997. The City receives 6% of gross sales for an administration fee. The City includes the garbage collection charge on its utility bills and remits to SSI. Since September 7, 1999 SSI has provided a recycling program. SSI sells the recyclable materials and uses the proceeds to pay for the cost of the program. Any remaining proceeds are paid to the City. The City has determined that they will use recycle revenue for park equipment made from recycled materials. Recycle revenue is about $25,000 per year. The SSI administrative fee is projected at an annual increase of 13% based on an average of the 16 months prior to March 2002. 10 ( GENERAL RiND FRANCHSE FEES Actual Actual 1999 2000 Natural $159,265 $176,427 Gas 15.76% 10.78% Actual 2001 $306,853 73.93% Estimated Projected Projected Projected 2002 2003 2004 2005 $316,059 $325,540 $335,307 $345,366 base: 8.14% annual population groMh, 5% annual rate increase Cable $93,778 $114,657 $107,917 $110,000 $110,000 -4.55% 22.26% -5.88% 1.93% 0.00% based en no groMh $110,000 0.00% $110,000 o.ooolt Electricity $79,960 $111,692 $148,265 $167,747 $189,789 $214,727 $242,942 39.68% 32.74% 13.14% 13.14% 13.14% 13. 140,{ based on 8.14% annual population groMh, 5% annual rate increase Sanitary Services $121,931 $132,204 $167,300 $189,048 $213,625 $241,396 $272,778 50.54% 8.43% 26.55% 13.00% 13.00010 13.00% 13.00% based on 16 rTK:lllth historical average - Nov 2000 to rv1arch 2002 Recycle Program $25,904 $25,000 $25,000 $25,000 $25,000 LIQUOR TAX The City receives a portion of the State's liquor sales surcharge. The State charges a 15% surcharge on liquor sold through the State Liquor Dispensary. The surcharge is distributed to cities, counties, and specific programs. After distributions to alcoholism treatment, public schools, community colleges, the cooperative welfare account, and the state general fund the remainder is distributed 49% to counties and 60% to cities. The basis for distribution is the city's share of statewide liquor sales if the city has a liquor store. Some portion of the overall city share is distributed to cities that do not have a liquor store based on their population. Meridian has one liquor store. The amount of revenue the City of Meridian has collected has varied. The amount distributed depends on liquor sales and The Dispensary's needs for working capital. Weare using a conservative projection of 6% increase per year. ,State Liquor Actual FY99 Actual FYOO Actual Estimated Projected FYOl FY02 FY03 $101,384 $107,288 $141,248 $112,000 119,000 11 PUBLIC SAFETY Court Revenue: The City receives ninety percent (90%) of all fines and forfeitures collected under Idaho Code. The number of infractions and the pay schedule of each is the basis for the City~ s fine revenue. The penalty for an infraction is set in the payment schedule adopted by the Supreme Court order. FY2002 shows more traffic citations issued as the number of traffic enforcement officers increased and the population growth. Parking Fines: Meridian's parking fines are between $4 and $25 depending on the infraction. FY2002 violations were not ticketed and more warnings have been issued. Animal Control: City code authorizes animal fees and fines to be charged for licensing and impounding domestic animals, and for violations. FY 2002 animal fines tend to fluctuate from year to year and increase slightly because of growth. School Resource Officers: Meridian School District #2 has an agreement with the Meridian Police Department to provide School Resource Officer's at the designated campuses and special events. The agreement is for the school period; which in the past has started in August and ends in June. Both parties review the service agreement each year. The District pays in two installments; one-half paid in January and the balance on or before the end of May. FY 2002 the District requested an increase in law enforcement. Based on historical trends; population growth mid new schools built the revenue will show an increase. Rural Fire Contract: The Rural Fire District has an agreement with the Meridian Fire Department to provide service within the fire district boundaries. Both parties review this agreement each year. The Rural Fire District paid 26% of the City's Fire expenses during FY 2002. The expenses have increased as more stations are built and Fire Fighters staffed. The Rural Fire District percentage will decrease as the City annexes more of the county area into the City limits and more emergency calls are City vs. Rural. Public Safety FY 2000 FY 2002 FY 2003 Revenues Actual Court Revenue Parking Fines Dog License & Impound School Resource 115,000 Rural Fire 668,700 12 PARKS AND RECREATION Parks and Recreation fees: Specific programs are charged fees, such as the summer recreation programs. The City Council is authorized by Idaho State Code to establish . fees for certain services provided. Rates are separately set for each fee. Fee schedules are periodically reviewed and adjusted as necessary to cover related costs. Revenue projections are based on the population growth and the programs provided. Park rental: Fees charged for the reserved use of City's park shelters, baseball fields and special events held on City property. Revenue projections are based on the population growth, availability of park shelters-fields and are impacted by the weather. Golf Course Lease: October 1978 a 25-year lease agreement was signed between the City of Meridian and Cherry Lane Recreation, Inc. A 25-year time extension was put in place in 2001, it expires October 3,2028. The sum of Six Thousand Dollars shall be paid per year, in advance, as rental of the municipal golf course property. Donations for Parks: FY 2000 City Council approved began a voluntary donation program. Water and Sewer customers could round up their payment, which would go toward parks. FY 1997 Actual FY 1999 Actual FY 2000 Actual FY 2002 FY 2003 Organized Ree Program Adult Sports Revenue Park ReselVations Fees Rentallneome Cherry Lane Golf Lease (Rent) Pennies for Parks Donations 13 BUILDING AND DEVELOPMENT REVENUE Fees collected for building permits, inspections, and planning and development services are general fund revenue. The City accounts for these programs in a separate fund called Special Services. The revenues they collect pay all of the expenditures for these activities. Any excess of revenue over expenditures for a fiscal year is transferred to a building fund set aside for general fund capital projects. The cost of the code enforcement program is included in this fund. 90% of the revenues collected in the Special Service Fund are from the Building Department. The Building Department issues and collects money for building permits and performs building inspections. The Building Department contracts with inspectors who conduct building, electrical, plumbing, and gas inspections for residential and commercial building projects. These private inspectors are paid a percentage of the permit fees. Permit fees are based on the dollar value of the project. The March 2002 Idaho Economic Analysis housing start projections were used to predict Meridian housing starts and corresponding residential building permit revenue. As previously discussed there is a high historical correlation between Idaho and Meridian housing starts. We used the same methodology to predict gas, electrical, and plumbing permits revenue although the City does not differentiate between commercial and residential when gas, electrical, and plumbing revenue are collected. The same methodology was not used to project commercial building permits. While the number of residential building permits is a stable predictor of residential building permit revenue, the number of commercial permits is not. Commercial permit revenue varies considerably depending on the size of the project. The revenue for one large commercial project may easily exceed the revenue for several smaller projects. Prior to 1998 the City did not separate commercial building permit revenue from residential building permit revenue. During FY2000 a permit was issued for Meridian's 8t Luke's West, which created a significant upward spike in revenue. If this spike is disregarded commercial building revenue increases approximately 10% per year. Increases of 10% are used for the commercial building permit projection. 14 BUILDING DEPARTMENT REVENUE Actual Actual Actual Actual Estimated Projected Proj ected Proj ected FY98 FY99 FYOO FYOl FY2002 FY2003 FY2004 FY200S PERMITS Residential Permits $823,2]9 $592,749 $547,35] $593,194 $622,201 $620,646 $624,494 $635,173 % change 15.87% -28.00% -7.66% 8.38% 4.89% -.25% .62% 1.71% Plumbing $212,623 $212,261 $226,126 $210,949 $223,979 $223,010 $224,939 $225,810 Gas $121,701 $164,931 $246,785 $200,791 $180,200 $179,950 $180,791 $187,000 Electrical $145,040 $154,237 $186,329 $166,826 $179,660 $179,419 $180,260 $183,200 Total Other $479,364 $531,429 $659,240 $578,566 $583,839 $582,379 $585,990 $596,010 Commercial Permits $308,918 " $669,563 $334,680 $368,148 $404,963 $445,598 $490,004 Total Permit Rev $],302,583 $1,423,096 $1,876,154 $1,506,440 $1,574,188 $1,607,988 $1,655,943 $1,72],]88 Misc $56,630 $52,777 $71,897 $53,3 $55,000 $55,000 $55,000 $55,000 09 Total Build Revenue S I ,349,683 S I ,433,096 SI,937,458 SI,559,749 SI,629,188 SI,662,988 SI,71O,943 SI,776,188 . PLANNING AND ZONING REVENUE Fees for the Planning & Zoning Department cover the cost of development applications; site inspections, site and landscape plan reviews, certificates of zoning compliance, etc. Effective January 2,2002 City Council approved new fees and increase fees to cover the costs that were not being recouped through the present fee structure. PLANNING AND ZONING REVENUE Actual Actual Actual Actual Estimated Projected Projected Projected FY98 FY99 FYOO FYOl FY002 FY2003 FY2004 FY200S Filing Fees $46,165 $78,516 $114,134 $86,723 $105,000 $140,000 $150,763 $158,305 % Change - + + - + + + + 14.34% 70.08% 45.36% 24.02% 5.00% 33.33% 7.69% 5.00% Misc $10,468 $11,086 $16,232 $3,984 $5,000 $4,000 $3,000 $3,000 Total $56,633 $89,602 $130,366 $90,708 $110,000 144,000 $153,763 $161,305 15 - ENTERPRISE FUND The City provides water and sewer services on a fee basis. There are Two separate fee structures. Water and sewer usage fees are charged for the operation and maintenance of the existing plants. Assessment (hook-on) fees are charged to build out plant infrastructure and increase the service area. FY2001 AUDITED UTILITY REVENUE $10,652,248 Sewer Assessments- Commerical 3% Sewer Assessments- Residential 14% er Assessments - Residential 6% Interest Earnings 14% I Water Assessments. Commerical 2% Meter Sales 2% 16 Utility Revenue Budget FY2002 $11,092,500 Sewer Assessments- Residential 11% Sewer Assessments- Commerical 5% Assessments. Residential 6% Assessments - Commerical 2% Meter Sales 2% Utility Revenue Estimated FY2003 $11,708,190 Sewer Assessments- Commerical 3% Latecomers 1% Water Sales 25% Sewer Assessments- Residential 15% Water Assessments - Residential 7% Sew., Sal.. J 34% Meter Sales 2% Water Assessments - Commerical 2% 17 The increase in the number of utility accounts trends closely to the number of new housing starts. A straight-line regression analysis shows the number of utility accounts ,increasing at a fairly steady rate. 18,000 16,000 14,000 12,000 10,000' 8,000 6,000 4,000 2,000 o Actual and Forecasted Utility Accounts FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 USAGE FEES Changes in the structure for water and sewer and usage fees were proposed in FY02. WATER Since 1996 residential water rates have been based on a minimum monthly charge of $6.48 (4000 gallons regardless of actual use) and $1.23 per additional 1000 gallons. Commercial water rates have been based on the number of equivalent residential units assessed at the time of construction. 18 The rate calculation is based on covering the cost of operations. Operations include Plant and Administrative personnel expense~ operating expenses for plant and administration and capital costs to replace existing equipment. Also included are construction costs to increase system quality and reliability and to meet increasingly strict federal and state regulations. The rate consists of two components: Base (minimum charge) - Administrative costs that stay fixed regardless of the level of operation. For example~ billing and accounting services. V olume Charge - Covers the direct costs of providing the service, costs tend to fluctuate with the quantity of output. Such costs include maintenance and repairs~ depreciation of assets and plant labor. Public Works proposed major changes in the rate structure: · The 4000-gallon minimum charge would be removed. A base fee will be charged that will cover the administrative or fixed costs. The proposed base fee is $3.48, much less the existing $6.48 minimum. This rewards consumers who use a small amount of water like senior citizens or town house dwellers. · Commercial billings will no longer be based on an assessment made at the time of construction. Commercial users will be billed the same way as residential users. The same rate structure will be applied. This eliminates billing confusion and misunderstandings and the time spent tracking and updating construction assessments. . New Rates- o Base Charge - $3.48 Rate per lOOO gallons - $1.23 The new rate structure for water will lower annual revenue. The precise impact is hard to predict without history. Public Works developed a model that used FYOl actual '_ usage combined with the new rates to derive an annual pro forma revenue number. We used that revenue number to calculate an average water bill. This average water bill was multiplied times our projected increased number of utility accounts to arrive at a FY2003 and FY2004 projected water sales. Predicting FY02 was very difficult because 19 the rates are scheduled to change during the year, and in the summer when usage is the highest. The projected budget revenue projection uses a trend analysis based on actual increases in the number of utility accounts and the Public Works projection of the effective change in the fee structure. This results in estimated annual FY03 revenue of $2,916,750 (increase in number of accounts from FYOl to FY03 of about 14%) and annual FY04 revenue of $3,082,504 (account increase of5.7%). SEWER The philosophy and methodology for the monthly user sewer charge is the same as the water charge with one change. The system cannot separate water used for outside use from water that goes into the sewer system. So, to calculate the sewer rate for each user the City averages the gallons by the homeowner during the four winter months December, January, February, and March. This is based on the assumption that no water is used outside the house during those months. This averaged rate is recalculated on an annual basis. The sewer rate structure will be changed from a 4,000 minimum gallon monthly charge of $11.73 plus $2.60 per additional 1000 gallons to a base administrative monthly fee of $4.07 and a $2.78 per additional 1000-gallon usage charge. The new rate structure for sewer will increase sewer revenue. As with Water the impact is difficult to predict without history. In the Water Department the quantity of water sold increased less than the corresponding increase in costs, which led the City to decrease the rate. In the case of the Sewer Department the expenses have climbed more rapidly. More operators have been necessary to operate an increasingly complex plant, a swing shift has been added, the number of laboratory personnel increased and a regular TV inspection and cleaning program has been instituted Public Works used the same model used for Water to estimate that the Sewer revenue based on FYOl usage with the new rates would be $3,579,000. This budget revenue projection uses a trend analysis based on actual increases in the number of utility < - accounts and the Public Works projection of the effective change in the fee structure. This results in estimated annual FY03 revenue of $3,891,060 (increase in number of accounts from 01 to 03 of about 14%) and annual FY04 revenue of$4,112,182 (account increase of 5.7%). 20 . Pcb.B em Prqed:ed Uilily saes FeIen.e $16,(0),(11) $14(0),(11) ''''', $12.0J),0Xl $1QOO),(II) $aOO),(II) tqOJ),(II) $\(0),(11) $ZOJ),(II) $J ( -~;' ~ ~1 - ."".,. ,~",.' . I , ' '1":","," ~'," .1 I --Tda 'J '.~: ~ '" -I- S:Ma-seES -+- \fIi;Iff seES ,} I PfIOO7 A:tt.a 19B AdtB 191) am PduaI aD1 2m am ~ Pdu:II PdleI EStimted Aqeded Aqeded Additionally it should be noted that by ordinance the City should have been charging a minimum monthly of $11.73 per month. In actuality the rate has not been reflected in the billings and the City has been charging $10.48 per month. ASSESSMENT FEES When a building permit is issued a utility connection fee is charged. This revenue, called assessment revenue, is used to pay for the cost of extending sewer and water infrastructure. When a new residential property connects to the City Sewer and Water systems the homeowner is assessed $1,580 for a sewer connection and $704 for a water connection. The assessment is collected at the time the building permit is issued. For commercial assessments Public Works makes a determination of the amount they think will a 21 residence use "equivalent" to units. For example a business maybe assessed 10 ERU's which means that they will use an amount of water equivalent to the amount 10 residents would use. To project residential sewer and water assessment revenue we used the projected percentage growth in housing starts since the fee is "assessed" at the time the building permit is issued. We do not yet have a good methodogly for projecting commercial growth so a flat line conservation number was used for each year of the projection. WATER ASSESSMENT REVENUE Actual Actual Projected Projected Projected FYOO FYOl FY02 FY03 FY04 Residential $560,368 $685,165 $740,937 $801,000 $866,471 Commercial $380,666 $255,932 $250,000 $250,000 $250,000 SEWER ASSESSMENT REVENUE Actual Actual Projected Proj ected Projected FYOO FYOl FY02 FY03 FY04 Residential $1,240,300 $1,539,620 $1,664,945 $1,800,500 $1,947,030 Commercial $640,690 $372,560 $400,000 $400,000 $400,000 LATECOMERS REVENUE The City is responsible for the cost of building and maintaining the sewer plant and water wells. The cost of the sewer and water collection and distribution lines are to be paid for by the builders and developers who connect to them. At times the City will pay , _ for and put in a major line. In other cases one developer will front the cost to put in a line. As other developer or builders develop and connect to the line they ~~payback" the City or private developer. Collected money is referred to as "latecomers revenue". The City or developer may collect for up to ten years after the line is installed. The City administers the latecomer revenue for developers as well as for itself. 22 Latecomer revenue is difficult to predict. Originally the City charged by building lot and agreements on how much revenue to actually be collected took years to calculate. In the past year the City has changed policy to collect from the developer rather than the individual builders with a project and to collect before the final plat is approved. The City's eventual direction will be to collect some sort of expansion fee or trunk-line fee before lines are built rather than collecting after lines are build. Due to the uncertainty and fluctuations of revenue collections this budget revenue projection uses a flat $100,000. LATECOMERS REVENUE Actual Actual Actual Actual Projected Projected Projected FY98 FY99 FYOO FYOl FY02 FY03 FY04 Fees $429,947 $328,599 $168,573 $67,719 $250,000 $100,000 $100,000 PUBLIC WORKS REVIEW FEES Effective March 1,2002 City Council approved the New Fee Schedule for the Public Works Department. Resolution 02-374 established fees for services related to, but not to exceed, the actual cost of providing said services. Services include the Public Works review of development application; inspections, site plans and development plan reviews, Water, Sewer and Drainage System inspections. INTEREST INCOME All of the City of Meridian's funds have cash and investment balances that generate interest. The City's investment vehicles are in accordance with the dictates of Idaho . code. The City retains an investment advisor who maintains a portfolio of certificates - of deposit, and government bonds of varying maturities. The City also invests in the State of Idaho investment pool and at times utilitizes a money market account. 23 The City maintains the minimum amount of cash possible for operations in the checking account) transferring receipts to interest bearing accounts whenever possible. In FY2002 all investment rates dropped. The City was able to meet budgeted interest income numbers in the General Fund due to more aggressive movement of funds to interest bearing accounts. The projected interest revenue for FY2003 remains the same as that budgeted for FY2003. Although interest rates should start to climb, the assent will be slow) plus the balance could drop suddenly if we start using the 1.8 million set aside for purchasing easements for the Locust Grove Overpass project. Enterprise interest revenue is projected to be lower than the FY2002 budget. Revenue will meet budget for FY2002 because of the maturity of some older high rate certificates of deposit. However) new investments bear a much lower interest rate. Large projects are budgeted for in the Enterprise accounts, which could drain investment balances. However historically the actual expenditures for projects take place slowly and are offset by revenue receipts. FY2003 investment balances are projected without FY2003 requested budget enhancements. FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 INTEREST INCOME Actual Actual Actual Estimated Pro .ected ENERAL FUND 407,974 487,212 456,932 370,000 PECIAL SERVICE FUND 18.701 56.411 111.485 60.000 426,675 543,623 568,417 430,000 ENTERPRISE FUNDS WATER 448,045 521,982 495,321 500,000 WASTE WATER 835.008 998,333 991,082 1 ,000,000 1,283,053 1,520,315 1,486,403 1,500,000 OTAL INTEREST INCOME 1,709,728 2,063,938 2,054,820 1,930,000 CASH & INVESTMENT FUND BALANCE At FiscalYear End Cash & Investment Fund Balance ENERAL FUND PECIAL SERVICE FUND PARK IMPACT FIRE TRUCK LATECOMERS ENTERPRISE OTAL FUND BALANCE FY 2000 Actual 734,545 2,136,276 908,265 775,874 2,025,280 26,088.664 32,668,904 FY 2001 Actual 11,002,697 2,925,027 1,427,795 814,914 2,551,748 30.021 ,165 48,743,346 24 FY 2002 Pro 'ected 10,180,000 3,600,000 1,115,000 850,000 3,080,000 33,950,000 52,775,000 FY 2003 FY 2003 Pro 'ected % Increas 10,580,000 3.93% 3,725,000 3.47% 860,000 -22.87% 500,000 -41.18% 3,217,000 4.45% 35,308.000 4.QO% 54,190,000 2.68% SUMMARY STATEMENT OF REVENUES: Actual Actual Actual Actual Budgeted Projected Revenues FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 ENTERPRISE FUND Charges for services: Water revenues 2,299,755 2,585,074 2,925,854 3,070,570 3,350,500 2,926,750 Sewer revenues 2,266,262 2,393,808 2,767,008 2,872,606 3,400,000 3,891,060 Sale of meters 186,577 178,820 187,650 199,491 196,000 200,000 Latecomers fees 429,947 328,599 168,573 67,719 0 100,000 Miscellaneous 44,928 52,844 41 ,889 102,182 8,000 22,880 Interest Income 1,206,818 1,283,053 1,520,315 1 ,486,403 1,500,000 1,316,000 Contributed capital: Water connections 819,619 934,861 941,034 941,097 888,000 1,051,000 Sewer connections 1.716.290 1.921.054 1.880.990 1.912.180 1.750.000 2.200,500 TOTAL REVENUES: 8,970,196 9,678,113 10,433,313 10,652,248 11,092,500 11,708,190 25 Revenues Actual Actual Actual Actual Budgeted Projected GENERAL FUND FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 Taxes 3.281,848 3,642,678 4,239,026 4.781,201 5,499,586 6,146,883 Licenses and Permits Alcoholic licenses 16,869 16,588 19.881 19,463 18,800 22,000 Building permits 1,302,583 1 ,433,096 1,876,154 1,506,442 1,291,000 1,619,519 Dog License 21,902 23.853 26,605 26,442 29,000 27,000 Miscellaneous 26.238 23.184 20.029 21.676 21,000 21,000 Total licenses-permits 1,367,592 1 ,496,720 1,942,669 1,574,023 1,359.800 1,689,519 Intergovernmental State liquor distribution 66,266 101,384 107,288 141,248 112,000 119,000 Court Revenue 220.530 274,158 283,940 307,227 280,000 330,000 State sales tax 115,521 136,004 159,038 158,925 160,000 186,000 State revenue sharing 805,650 907,604 1,059,554 1,210,894 1,524,582 1,340,000 Rural Fire 294,381 320,522 613,483 632,488 668,700 555,600 Grants 58,256 36.841 191.278 103.129 Q Q Total intergovernmental 1,560,604 1,776,513 2,414,580 2,553,911 2,745,282 2,530,600 Fines and forfeitures Parking fines 5,185 5,572 4,310 5,644 4,500 1.200 Charges for Service Ada County Impact Fees 22,000 21,510 22.000 22,000 22,000 22,000 Franchise Fees 235,826 333,003 402,776 563,035 440,000 629,397 Filing Fees 51 ,369 89,501 130,329 90,708 81,500 142,500 Special police services 77,143 83,393 90,903 137,419 115,000 142,000 Admin Fees 80,997 121,931 132,204 193,203 184,000 238,625 Recreation programs 9,785 21,982 33,807 69,465 62,000 63,000 Golf course expansion fee 36,100 46,150 26,650 40,300 20,000 30,000 Park reservation fees 5,357 4,835 8,582 11,271 9,000 13,000 Park impact fees 537.400 448.228 393.127 451.814 400.000 336.000 Total charges for services 1,055,977 1,170,533 1,240,378 1,579,214 1,333,500 1,616,522 Interest 454,968 425,706 533,771 515,466 430,000 481,000 Miscellaneous Rent 2,410 19,500 6,000 6,000 10,500 10,200 Property development 11 ,549 6,653 1,550 3,890 0 0 Miscellaneous 30,302 72.953 46.961 173.348 11,700 13,200 Total miscellaneous 44.261 99,106 54,511 183,238 22,200 23,400 TOTAL REVENUES: 7,770,435 8,616,829 10,429,246 11,192,697 11,394,868 12,489,124 26 CITY OF MERIDIAN BUDGET PROJECTIONS and SCENARIOS .E.NERAL FUND 1.2/31/2002 Percent Wage and Benefits Increases - Historical FY2003 FY2002 Budget Actual $5,117,142 $4,216,004 $36,-200 $34,200 $544,221 $404,432 $5,697,563 $4,654,636 $1,042,927 $476,619 ':22A1o/.:11A1%" $385,400 $337,277 $48,123 $75,828 't4;27%' < 29.00%' $1.281,004 $918,099 $362,905 $127,949 .. >,39,53%1$.19%,' . -$268,739 -$191.454 $7,095,228 $5,718,558 $1,376,670 $602,010 24.07%.1:1 ;77% Wage and Salary Uniform Allowance Employer Taxes Total Wage Dollar Increase Wage % Increase Total Overtime Overtime Dollar Increase Overtime % Increase Benefit's Benefits Dollar Increase Benefits % Increase Transfer to Enterprise Total Salary & Benefits Total PC Dollar Increase Total PC % Increase FY2001 Actual $3,773,957 $25,200 $378,861 $4,178,017 $511,226 . '13:94"/.::, $261,449 $136,937 . .109:98"/. $790,150 $111,035 . <<:'1>;35%:. -$113,068 $5,116,548 $646,130 14;45"/,,: FY2000 Actual $3,337,038 $31,200 $298,553 $3,666,791 $322,748 > :9,65% $124,512 N/A N/A $679,115 $82,725 '>'13.81% -$90,540 $4,470,418 $529,985 . >n45% FY1999 Actual $3,077,597 $9,253 $257.193 $3,344.042 included with wages $596,390 $3.940,433 $3,940,433 Full Time Equivalents Operating Expenses Transfer to Enterprise Total Operating Expenses OE Dollar Increase OE % Increase 122 $2,712,445 -$64,000 $2,648,445 $447,902 2(t3S% : $2,254,331 -$53,788 $2,200,543 $630,652 : : 40:11% > $1,615,630 -$45,939 $1,569,891 $259,911 .1!);84% $1,350,558 -$40,578 $1,309,980 $16,329 .1~6% $1,293,651 $1,293,651 Total Capital Outlay . '<.$1;270;041: . .. . :$1,055;322: .>$4,539,B18' .:$2,130;501: . .. :$2;328;672: ' . NOTE; Allocation of Accounllng an~ Human Resources costs from Ihe General Fun~ 10 the Enlerprise Fund started in FY2ggg. Initially both Personnel Costs and Operating Costs were transferred from Operating Costs. In Fyg2 the alloealion was changed so Ihal Personnel Costs were allocated from Personnel and Operating Costallocallld from Operating. The numbers for FY2gg3 EXCLUDE one-time operallng costs, Including the 1.8 mUllon doUar appropriation for the Locust Grove Overpass. Budget Scenarios with Possible Insurance Increases 3% Salary Increase and 1% Operating Increase - No New Employees GENERAL FUND Total Ravanue Total Personnel Costs Frozen Operating Police Fire Parks Other Government Fire Station Annualized Totat 1 % Operating Increase Remaining Unappropriated> 30% Health Ins Inc 3% Wage Adj Projected FY04 $12.171,103 $B,123,932 $967,795 $308,625 $251,040 $929,914 $41,850 $2,519,224 $25,192 . .. .'.' . '. .00, ...000. $:l~502.755, 000 20% Health Ins lnc 3% Wage Adj Projected FY04 $12.171.103 $6,016,156 25% Health Ins lnc 3% Wage Adj Projected FY04 $12,171,103 $8,053,416 20% Health Ins Inc 3% Wage Adj Projected FY05 $13,336,074 $6,291,725 $987,795 $306,625 $251,040 $929.914 $41.850 $2,511.767 $25,200 oi52;507;382 , $967,795 $308,625 $251,040 $929,914 $41,850 $2,519,224 $25.192 . "$UOl>,52S:, $987,795 $308,625 $251,040 $929,914 $41,650 $2,519,224 $25,192 0$1,573;271.: Budget Scenarios with Historical Increases in Personnel and Operating Costs 10 and 15% Increases in Personnel Cost (includes new employees) and 20% Operating Increase GENERAL FUND Total Revenue Tolal Personnel Costs Frozen Operating Police Fire Parks Other Government Fire Stalion Annualized Total 20% Operating Increase Remaining Unappropriated. 0 25 % Health Ins Inc 10% Wage Increase Projected FY04 $11,610,713 $6.512.130 $987,795 $306,625 $251,040 $929,914 $41,850 $2,519,224 $503.845 $275;514- . 25 % Health Ins Inc 15% Wage Increase Projected FY04 $11 ,610,713 $6.659,907 $987,795 $306,625 $251,040 $929,914 $41.850 $2,519.224 $503.845 ;.$72;263 2110/2003revenuelrendrevexp CITY of MERIDIAN OUDGETENHANCEMENTS GENERAL FUND FY2003 Annualized OEPT Enhancements: PERSONNEL OPERATING 1 time exp TOTAL Oept Totals Costs admin Meridian Development Corp 40,000.00 40,000.00 admin add to Council training 15,000.00 15,000.00 admin Municipal Center 75,000.00 75,000.00 admin 100yr celebration 20,000.00 20,000.00 clerk City Clerk Dept Specialist 36,225.00 (9,900.00) .26,325.00 26,325.00 finance IT Coordinator 34,449.50 (30,650.00) 4,200.00 7,999.50 3,799.50 HR HR Analyst 25,551.50 1,150.00 3,200.00 30,501.50 214,826.00 27,301.50 police New Building Operations Adj 15,000.00 15,000.00 15,000.00 police Evidence Technician 26,803.00 2,000.00 28,803.00 28,803.00 police 3 Traffic Personnel (12monthsl 165,672.00 6,380.00 54,671.00 226,723.00 172,052.00 police Crime Analyst 38,705.00 5,000.00 8,000.00 51,705.00 43,705.00 police Entry Level RecordS Clerk 34,901.00 750.00 3,000.00 38,651.00 35,651.00 police Corporal Designation Addition 17.474.00 1,000.00 18,474.00 17.474.00 police Criminallnv . Promotionallnc 2,650.00 20,500.00 23,150.00 2,650.00 police IT Tech reduces Computer Exp (2,000.00) (2,000.00) police Fine Collection Officer 14,000.00 14,000.00 414,506.00 14,000.00 fire Fire Station #3 13.949,00 44,460.00 58,409.00 55,788.00 fire 9 lntro Firefighters (5 months) 181,991.00 23,162.00 205,153.00 531,454.00 fire EqUipment 46,694.00 46,694,00 fire Opticoms (4) 11,840.00 11,840.00 fire IT Tech reduces Computer Exp (1,000.00) (1,000.00) fire Train & Equip new Pan.time On-Calli 1,110.00 7,400,00 8,510.00 329,606.00 8,510,00 parks LaM Borup Property 181.000,00 181,000.00 imOile! lee parks Settler's Park RO<ld Improve 131.000,00 131.000.00 impact fee parks Chateau Park Playground 38.000,00 38.000.00 imo;'1ct lee Darks Bear Crll Resltm'Basketball Ct 146.000.00 146,000.00 impact fee oarks Storey P<I rk Redel' Phase II 155.000,00 ;55,000,00 parks IT Tech reduces Computer E~p (2.000.00) (2,000,00) parks Adventure Island 50,000.00 50.000.00 699,000.00 impact fee TOTAL GF ENHANCEMENTS 562,882.00 38,329.00 1.056,727.00 1,657,938.00 1,657,938.00 982,513.00 Impacl fees budge 546.000.00 FY2002 other funds admin Council Laptops 10,000 10,000 admin Senior Center Support 10,000 10.000 20,000 fire Opticom 10,500 10.500 . fire 3 New FireFighters 136,080 20,250 156,330 fire New Equipment & Computer Server 70,000 70,000 fire New Vehicle - 4 wheel drive 3,000 35,000 38,000 fire 2 New Fire Engines 300,000 300,000 300,000 fire Tr<lining Props & Structure 50,000 50,000 624,830 300,000 parks Phase I 56 Acre Park 300,000 300,000 300,000 parks Amity Road Parkland 100,000 100,000 100.000 parks Storey Park Renovation 120,000 120,000 parks Chamber Restroom Expansion 60.000 60,000 60.000 parks Large Mower 58.000 58,000 parks Seasonal Recreational Aide 5,980 5,980 p<lrks Asphall Shop Yard 10,000 10.000 653.980 460,000 police New Polii;e Station 10.000 190,000 200.000 police 2 New Civifian Personnel 43.757 2,000 8.600 54-,357 police 2 New Investigative Vehicles 2.500 20,000 22.500 police Archiving Software 2,100 16.812 18,912 pollce Digital Camera, Camcorder 400 3,600 4.000 police K9 + Vehide 6.578 5,850 50.100 62,528 pOlice Animal Shelter Finish Work 10,000 - to.OOO 372,297 TOTAL GF ENHANCEMENTS I 192,395 66,100 1,412,612 S 1,671,107 1,671,107 760,000 FY2001 police police police police police police fire fire fire parKS parks parks Darks parkS OGrks New Police Building 4- New Patrol Cars 3 New Patrol Officers 2 New School Resource Officers 2 New Records Clerks 1 New Animal Control Officer New Ten Mile Station 6 New Firefighters New Fire Truck Settlers Park Phase I Generations Pla;;:o Ph"S8 II Stoley Pa rk irngr,tion system Skale Park construction Bear Creek construction New Sorav ECllU)rnenl TOTAL truck fund impact fees impact fees carryforward 4,000,000.00 160,000.00 112,700.00 90,000.00 60,000.00 30,000.00 850,000.00 240,000.00 300,000.00 i.370.000.00 95,000,00 160,000.00 140.000,00 258,000.00 31.500.00 7,897.200.00 bond 4,452,700.00 1,390,000.00 firetruck funds capital improvement funds impact fees impact fees 2,054,500.00 7,897,200.00 2/1 O/2003ENHANCEMENTSforREVENUET ASKFO RCEenhancesummary l" CITY OF MERIDIAN PROPERTY TAX INFORMATION CITY COUNCil 11J19/02 0.004000 0.003500 - 0.003000 0.002500 - 0.002000 0.001500 - 0.001000 - 0.000500 0.000000 City of Meridian Levy Rates Levy Ratesl 1997 1998 1999 <000 <001 <00< <003 <004 <005 <006 $18,000,000 $16,000,000 $14,000,000 $12,000,000 - $10,000,000 $8,000,000 - $6,000,000 - $4,000,000 $2,000,000 - City of Meridian Property Tax Revenue Compared to General Fund Expenditures Total Property Tax Actual Actual Est City of Meridian - Ada County Assessed Valuation - Calendar Year $3,000,000,000 $500,000,000 - $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $0 . 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'" o o '" <3 fi - .s ~ ( Idaho Municipal Guidebook Chapter 6 MUNICIPAL FINANCE PUBLIC PURPOSE It is a basic rule in Idaho that public fUnds must be expended for a public purpose; that is, a pwpase which primarily benefits the general public and not private persons or priVdte business interests. The Idaho Supreme Court has held on numcrous occasions that a public cntity may not engage in activities which do not have primarily a public rather than a private purpose, nor may it finance or pledge its credit or property in aid of any such activity (Article 8, Section 4 and Article 12, Section 4, Idaho Constitution). Where the primary purpose of an expenditure is public, incidental benefit to private interests does not make the expenditure illegal. A public agency may not expend public fimds to promote a partisan position in a city election campaign. Public funds may be used to disseminate neutral infonnation about public election issues, including bond issues, but promotional expenditures are not permitted. BUDGET PROCESS City councils are required to take a major role in producing the city's budget and are respon- sible for adopling lhe annual appropriation ordinance. As some cities have grown, and lheir fInan- cial responsibilities have become more complex, city councils have delegated some of their responsi- bility for producing the budget to oilier city officials. Another aspecl that may influence lhe city's budget process is the fonn of government that the city uses. A mayor or city manager \ViII take responsibility [or working closely with city departments to develop a budget or in some cases with a budget committee to develop and review budget requests for the upcoming fiscal year. 10 all of these budget process variations, the cOl.mcil retains the power to approve and adopt the budget. Cities may also adopt different budget fonnats. Since decisions about capital spending can cause significant consequences for future budgets, some governmental entities choose to create separate capital budget instead of including it as a part of the annual operating budget. Capital Bud1!etint!: Capital purchases include the physical structures and equipment that have a life span of more than one year. A city's buildings and equipment, such as copy machines and computers are examples of capital expenditures. A system of capital improvement planning (CIP) can assist city officials to plan in advance for future capital needs. A CIP includes an inventory of current structures, a devel- opment of future objectives, lists of potential capital projects and their estimated costs, and a list of identified funding resources. CIP schedules capital projects throughout a five-year plan; however, only those projects that occur during the frrst year of the plan are financed and adopted as part of the annual budget The Page 159 Idaho Municipal Guidebook remaining four years in a CIP should guide the city in future planning, and should Ix: continually reviewed and modified as needs change. MAJOR REVENUE SOURCES FOR IDAHO CITIES Property Tax The property tax is the most important revenue source for most cities. The advantage of the property tax is its stable nature. Officials can fairly accurately predict the revenues that will be genemted. However, property owners have been increasingly dissatisfied Vv'ith too much reliance on this tax. Three Percent Propertv Tax Limitation The Property tax law for budget purposes was determined by the passage of House Bill 156 by the 1995 Idaho Legislature. House Bill 156 limits the non-exempt property tax portion of city budgets to no more than a three percent increase over the highest amount certified for the previous three years. Additionally, cities may apply last year's tax rate to the valuation of annexation and new construction and add these amounts to the allowable three percent increase. There are, in addition to the three percent-limitation, statutory levy rate limitations on each fund. Cities which decide not to take advantage of the maximum increase are not penalized. Any increase foregone in one year may accumulate and be carried over. License and Permits Cities have the power to levy and collect fees on occupations or businesses within the city. Cities may also collect fees from vendors providing entertainment services. Sales Tax Cities receive approximately 6.5% of the state sales tax revenue in two different allocations, which has been commonly known as inventory replacement and city-county revenue sharing. The inventory replacement program has a long history dating back to the 1960s. When the state sales tax bill was being considered in 1965) legislators, in an attempt to gain support from retailers and others) sponsored the repeal of the business inventory tax that local entities relied on for revenue. To com- pensate for the loss in revenue, local governments were allocated a portion of the money collected in sales tax. The fonnuJa was changed during the 2000 Legislature. The 2000 Legislature changed the distnbution formula for this portion of shared revenue. Each city will receive a "base" amount each quarter. The base is the amount the city received for the December 31, 1999, distribution plus 5%. Amounts over the base or excess,. are distributed by population. Approximately 2.625% of the state sales tax revenue is distributed to cities under this formula The city-county revenue sharing program was created in 1984. ill this program, cities and counties are allocated 7.75 percent of the total state sales tax collections to share equally. Half of each city's allocation is determined based on the proportion of population found in the city to the total population in 1he state. The other half of the allocation is based on the percent that each city's assessed market value is to the total Idaho cities) value. Cities receive 3.875% of the state sales tax revenue WIder this formula. Page 160 ( Idaho Municipal Guidebook Hiehwav Distribution Account The highway distribution account includes money collected by the state and COWlties through vehicle registration, ~pecia1 fuel taxes, trip permits, ton-mile taxes and others. The revenue from fees and fines are deposited into the highway distribution accOlmt to be divided between the state highway account, law enforcement account and local governments. According to the established formula, cities receive 11.30 percent of the money collected The monies are allocated among the cities on a per capita basis. State Liquor Account The profits from the state-owned liquor industry are divided among several different state accounts. After these distributions are made, cities and counties receive allocations determined by what they received in FY 1981. After this "hold hannless" allocation is made, the additional money is divided between the cities (6QDIo) and the counties (40%). Out of the money available to the cities, 90 percent is allocated to cities who have liquor stores or distribution centers and divided based population sue, with lIre remaining divided between the cities who do not have liquor slores or distribution. Court Revenues The clerk of the district court is responsible for apportioning the proceeds of the court from fines and forfeitures according to the provisions found in Section 19-4705, Idaho Code. Specifically, cities receive 90 percent of fines when city ordinances have been violated and when the arrests or citations are issued by city law enforcement officers. Service Charees The city receives revenue from parking meters, the sale of water, garbage removal. and a variety of miscellaneous charges. Some electric service is paid to city-owned power plants and distribution systems. Cities also receive some revenue from charges to users of airports, cemeteries, parks and recreation, irrigation, and libraries. Local Option Taxes Resort cities with populations of less than 10,000 may adopt and implement local option non- property taxes. Some examples of non-property taxes are liquor by-the-drink, hotel-motel room occupancy, and general sales taxes. Imoact Fees The 1996 legislature exlended statewide the auihority to impose development impact fees. The Idaho Supreme Court has held that an impact fee must be limited to the cost of providing ser- vices required by the particular development and cannol be used Lo provide capital improvements outside the particular development, Wlless the fee is expressly authorized by statutes. Franchise Fees In 1995, the Legislature passed HB 329, which gives cities the option of assessing franchise fees on public service providers which use public right-of-ways: electrical utilities, natural gas, water, and cable television companies. The fee is assessed on the gross revenue of the public service provider's revenue generated in the city. Page 161 Idaho Municipal Guidebook CITY BUDGET Cities are required to adopt an annual budget Steps in the Budeet Process 1. By April 30, notifY the county clerk of the date and Location of budget hearing. 2. Council passes a tentative or proposed budget. 3. Proposed budget and notice of public hearing is published twice. 4. Hold Public Hearing. 5. Passage of an appropriation ordinance which can be less but not more than the published proposed budget; must be published and filed with Secretary of State. 6. CertifY property tax levy to county commissioners on or before the second Monday of September. 7. Fiscal year begins on October 1. Amendin!! an Appropriation Ordinance If, after adoption of the appropriation ordinance, the council determines that additional revenue, other than property taxes, will accrue to the city during the fiscal year, the council may amend the budget appropriation by the same procedure as used in adopting the original appropriation ordinance. Emereencv borrowinf! The city has no power to expend funds unless the money has been appropriated by ordinance, and no expenditures for any improvement shall be paid exceeding the amount allocated in the annual appropriation ordinance, unless one-half plus one of the members of the full council declare an emergency caused by ~ty, accident, or act of nature. In such an event, the council may order the borrowing of a sufficient sum to provide for the expense incurred in abating the emergency or the making of repairs or restoration of improvements. The borrowing shall not exceed the close of the next fiscal year, and the necessary amount must be included in the next year's general tax levy. Jud2ments If a judgment for money is obtained against the city after adoption of the appropriation ordinance, the council may Likewise authorize the borrowing of enough money to pay the judgment, and include such amount to the next year's general tax Levy. Pronertv Tax Budf!et CaD Overrides Overrides of lhe property lax. cap are possible willi approval by a majority of lhe city's elec- tors voting on such override. The eIection must be held pursuant to Section 34-106, Idaho Code. The voters can approve the override for a maximmn period of two years. Levv Rate Increase with Voter ApDroval House Bill 712, passed by the 1998 Legislature, allows cities, whose prior year's property tax levy was less than .004. with a 60 percent voter approval, to increase their budget levy up to an Page 162 Idaho Municipal Guidebook amount equal to a .004 levy rate. The election must be held in either Mayor November. PUBLISH QUARTERLY FlNAJ.'lCIAL REPORT A quarterly publication of the city financial statement is required. Failure of the city clerk! treasurer to comply with these requirements shall be deemed a misdemeanor. HEARING ON FEE INCREASES Cities must publish a notice and hold a hearing prior to increasing fees by five percent or more. INVESTMENT OF CITY FUNDS The city treasurer is charged with the care and safekeeping of the city's public funds in places of deposit that have been determined by ordinance. TIl\fELY PAYMENT OF BILLS Idaho Code Section 67-2302 requires that all bills of public entities be paid promptly within 60 calendar days of receipt of the billing, unless the city and the vendor or contractor have agreed by contract to a longer period of time. Partial or interim payments must be paid within 45 days if an invoice is submitted and the delivered goods are usable as is. Interest charges must be paid on late payments. This section does not apply to payment of judgments. FINANCIAL REPORTING Ai'll) THE ANNUAL AUDIT At the end of each month, or whenever requested, the city treasurer is required to present the city council with a report of the accounts of the city treasury. This report includes the statements of all receipts, disbursements, and redeemed warrants. The report is then filed with the city clerk. Cities are required by state law to have an independent audit using generally-accepted gov- ernmental auditing standards: + For cities with budgets exceeding $250,000, an audit must be conducted on an annual basis. + Those cities with budgets below $250,000 but more than $100,000 may choose to have a biennial or an annual audit, + Cities whose annual budget exceeds $50,000 but less than $100,000 may elect to have its [mandaI statements reviewed on a biennial basis. + Cities with budgets less than $50,00 are not required by state law to have an audit. Page 163 555,600 FY2003 Projected General Fund Revenue . Property Tax . License & Permits o State Revenue Share o Rural Rre . Service Fees II Franchise Fees . Park Impact Fees 121 Interest . Misc PROPERTY TAX Property tax is the City of Meridian's largest source of general fund revenue. Property tax is calculated by Ada County based on State of Idaho code. In 1995 the Idaho Legislature enacted code that limited property tax increases to 3% over the greatest proceeds of any of the previous three years. The first year impacted by the 3% cap was fiscal year 1997. Cities are allowed to include new construction and annexation. The following table shows the increase in Meridian's net taxable market value, the base property tax in dollars capped at 3% and the amount of property tax received from new construction and annexation. I Actual FY99 Actual FYOO Actual FYO I Actual FY02 Estimated Projected FY03 FY04 ;t Taxable Market $ I ,084,270,029 $ I ,258,983,254 $ I ,457,744,053 $1,804,031,129 2,068,573,604 2,387,612,480 J alue % Increase 14% 16% 16% 24% 15% 15% Base Property Tax $3,262,270 $4,207,246 $4,207,246 $4,775,416 $5,649,171 $6,315,886 9 % Increase of Total 3% - 3% 3% 3% 3% 3% Tax New Construction! $362,632 $429,081 $429,081 $709,216 $482,757 $673,651 Annex Total Property Tax $3,624,902 $4,084,702 $4,636,327 $5,484,632 $6,131,928 $6,851,773 % Growth Increase 11% 10% l!% 15% 9% 9% Total Tax Increase 14% 13% 14% 18% 12% 12% Table Notes: Total Property Tax number is based on County levy assessments and budgeted amount - actual collected may vary slightly Net taxable value projection is based on a trend formula using regression analysis Annexation projection is based on an average of actual data New construction projection is based on a trend formula using regression analysis The rate levied against the taxable value of a property is calculated by dividing the total tax budget request by the net taxable market value for the entire city. The resulting rate will be applied to calculate taxes for the next year (property tax is paid in arrears). Due to the 3% cap, when market value increases the actual levy rate decreases and the taxing entity receives a smaller proportionate share. Legislation effective in 1998 allowed the addition of the dollar value of the "new construction roll". Levy Rates 0.003500000 0.003400000 0.003300000 0.003200000 0.003100000 0.003000000 0.002900000 0.002800000 0.002700000 0.002600000 0.002500000 1998 1999 2000 2001 2002 2003 2004 2005 10 The graph above show that when the denominator, the net taxable value, goes up faster than 3% the levy rate goes down. Meridian's levy rate is one of the lowest in Idaho. Levy rates under .004 may be increased by election but Idaho stature requires approval of 60% of the electorate. If attempts to increase the levy had been successful Meridian would have collected $7,216,125 in property tax in FY2002, an increase of$I,731,550. The following chart illustrates how much an average Meridian homeowner pays in property tax and what portion of the tax each government entities receives. Meridian Property Tax 2001 2001 PERCENT 2001 TAXING DISTRICT TOTAL LEVY AMOUNT TAX AMOUNT OF TAX ASSESSED VALUE SCHOOL DISTRICT #2 0.003440302 247.01 24.12% $112,300 SCHOOL #2 BOND 0.002532849 181.86 17.76% SCHOOL #2 EMERGENCY 0.000600000 43.08 4.21% HOMEOWNERS EXEMPT MERIDIAN CITY 0.003040177 218.28 21.32% $40.500 ADA COUNTY 0.002772336 199.05 19.44% 2000 ADA COUNTY HIGHWAY 0.001014584 72.85 7.11% CURRENT YEAR VALUE PRIOR YR VALUE MERIDIAN LIBRARY 0.000469536 33.71 3.29% $71,800 $65.500 MERIDIAN LIB BOND 0.000115961 8.33 0.81% EMERGENCY MEDICAL 0.000117687 8.45 0.83% W. ADA RECREATION 0.000077663 5.58 0.54% MERIDIAN CEMETERY 0.000057679 4.14 0.40% MOSQUITO ABATEMENT 0.000023179 1.66 0.16% TOTAL LEVY: 0.014261953 TOTAL TAXES: 1024.01 SUMMARY CHOOl DISTRICT #2 ERIDIAN CITY DA COUNTY DA COUNTY HIGHWAY IBRARY MERGENCY MEDICAL . ADA RECREATION ER1DIAN CEMETERY OSQUITO ABATEMENT PERCENT OF PROPERTY TAX PAID IN MERIDIAN (Based on 2001 Tax Rates & Market Value) 46.09% 21.32% 19.44% 7.11% 4.11% 0.83% 0.54% 0.40% 0.16% 11 STATE REVENUE SHARING State revenue sharing is the City's second largest general fund revenue source. The State of Idaho collects a 5% sales tax. 13.75% of the collected sales tax is distributed to cities and counties. 7 3/4% is distributed into a program called Revenue Sharing - State Distribution and 6% is distributed into a program called Revenue Sharing - County Distribution. The total revenue sharing pool is split CITIES - 28.2% COUNTIES - 28.2% BASE & EXCESS - 35.9% SPECIAL DISTRICTS -7.7% The city portion is divided and distributed based on market value and population. The base is distributed based on the fourth quarter 1999 distribution plus 5%. The excess portion is then divided by population. House Bill 468 that was passed in the 2000 legislature created a new distribution formula for that portion of the state sales tax that had been known as the "Business Inventory Replacemenf'. The new revenue sharing combined the old Business Inventory Tax replacement portion with the sales tax distribution known as City-County Revenue Sharing. The state revenue sharing distribution remains the same but the amount equivalent to the Business Inventory Tax will be distributed like the state revenue sharing, each city, county, and special district will be provided a new base. The base is the amount received for the fourth quarter of 1999. Additional growth in sales tax will be distributed to cities and counties according to population growth. The Association of Idaho Cities provides revenue sharing projections for FY2002 and FY2003. New formulas have been in use since the quarter ending September 2001. The AIC revised the FY2002 projection downward from $1,684,582 to $1,475,624, a decrease of$208,958. The projection for FY2003 is $1,527,370, a modest increase of 3.5% over FY2002. For FY2004 and FY2005 we use a projection with a 4% increase. 12 State Revenue Sharing.. Meridian Distribution $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ~ OS9'b J>..OS " ~ ~ cf e;.v ~ ~ - Revenue Sharing - State ~~~ 'i:)'\:)\::J r;;::f 'i:)\::Jr'J" r::::,"0':J \::J~ \::J(;JV:> " ~rp ~cv oCV of); f); cv ~vl8- ~v'li v1> ~e; ~ ~roo ~l> '?-v" '?-v" '?-(} . ~1> . e,u . roV . roV ~ <..0') <..0') <..o~ <v0;) <? <? <? - Revenue Sharing - County FRANCHISE FEES The state of Idaho allows city's to enter into franchise agreements with water, gas, electric, cable, and solid waste collection providers. The percentage collected varies from I % to 5% of the provider's gross sales. Natural Gas - The franchise fee is 3% of gross (net of uncollected accounts) annual sales. The City currently has a 30-year franchise agreement with Intermountain Gas Company, which expires January 7, 2017. From 2000 to 2001 (calendar year) gross revenue increased from $211,353 to $310,688. Franchise fee revenue for natural gas is projected to be about $315,000 for year 2002. The projections is based on growth and starting the year with a colder than normal winter. Intermountain Gas Company hopes to implement a price reduction program for the calendar year 2003. Fluctuations in this revenue source may be experienced because of rates and weather changes related to heating or cooling. Projections for population and sales growth would be an increase of 3.0% for FY 2003. Cable - The franchise fee is 50/0 of gross sales. Cable fee revenue was about 1 % of total general fund revenue in FY2001. The dollar amount is not expected to change materially in the future. 13