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2004, 09-21 Study Session MinutesAttendance: Councilmembers: Michael DeVleming, Mayor Diana Wilhite, Deputy Mayor Dick Denenny, Councilmember Mike Flanigan, Councilmember Gary Schimmels, Councilmember Rich Munson, Councilmember (excused) Steve Taylor, Councilmember MINUTES City of Spokane Valley City Council Study Session September 21, 2004, 6:00 p.m. Staff: Dave Mercier City Manager Nina Regor, Deputy City Manager Ken Thompson, Finance Director Greg McCormick, Long Range Planning Manager Cal Walker, Police Chief Marina Sukup, Community Development Director Cary Driskell, Deputy City Attorney Tom Scholtens, Building Official John Hohman, Senior Engineer Sue Pearson, Deputy City Clerk Chris Bainbridge, City Clerk Mayor DeVleming opened the meeting at 6:00 p.m., welcomed all in attendance, reminded everyone that this is a study session, and requested that all electronic devices be turned off for the duration of the meeting. 1. Economic Analysis Charrette for Sprague Appleway Corridor - Marina Sukup Community Development Director Sukup introduced Terry Moore, principal for ECONorthwest who has been commissioned to prepare an environmental assessment of the Sprague Appleway Corridor; she mentioned yesterday's community meeting was well attended, and tonight they will summarize that meeting and provide Council with comments from the focus groups which discussed issues last night. Below are notes from their presentation: Terry Moore: gave an overview of the study; said that they decided not to give the same presentation tonight as was given at last night's session with stakeholders and others but will summarize that presentation. He said in order to determine the economic impacts of alternate developed packages in the Sprague Corridor, we need to understand existing and future conditions; and to identify the development packets concerning land use and transportation. Overview of the process: they conducted research and drafted a report which will be available within a week or two after today's council comments; they held workshops on existing conditions and meet with stakeholders, and after tonight they will revise their draft report and comments into a final report which will be available in October, which he mentioned is all on schedule according to contract. Key factors in analysis: they need to know about couplets, bypasses and how our retail markets work Couplets or two -way: consider and justify purpose Now have excess capacity; impact and capacity will depend on business type Couplets can support area development/redevelopment Couplets usually result in Main Street being over congested so the couplet becomes the necessary fix. Bypasses are important. This is not a bypass study but it is important to look at those studies; many comments about what might happen must be put in context of what's going on with the main bypass, which is I90 which is being improved with north /south arterial connections. Study Session Minutes 09 -21 -04 Page 1 of 6 Date Approved by Council: 09 -28 -04 Main points about retail markets: he mentioned there is retail strength in Spokane Valley and also evidence for continued growth; they are not expecting retail to take a dive in the Valley; that transportation is reflective of changes in the corridor and the Sprague corridors have strength; there are some areas of specialization and a large percentage of Valley commercial land is in the corridor; but that there is also evidence of decline; there is vacant and underused land; and he concluded these observations are greater than he has seen in many other cities, and in some parts of the corridor there are relatively high vacancies and a relatively low lease base. The implications for development options are, we must see the big view for land use and transportation in the corridor. That last night they examined different scenarios for the area such as a city center. The big view is that the couplet issue is about land use; what should the corridor look like; and it should be driven by land use and any option must work in context of what we want to achieve in the corridor; five and one -half miles is too much retail and there is evidence of that and as a result we must build on the strength of corridor and rebuild at the weaknesses. The corridor has healthy ends and a weak middle. Part two of the big view is a City Center. All the evidence they heard and read is that citizens want a city center. A City Center could be in any number of places but definitely not in some places; for example, not on the south side of 32n against the hills; but that many feel Sprague would work well and it should be in the center of Sprague or at U -City. The Couplet decision is not a question of we should do it because we have the money and if we don't do it we are giving away money; their conclusion is we have to re- justify the need for couplet, and if we don't change land use in the area he feels we won't be able to justify that need. Land use and transportation should go together. The strength of the couplet is the west end with the auto sales; those companies are doing well; there is also nothing wrong with that part of Sprague coming down from the mall on Sullivan. The problem is in the middle of the corridor, and opportunity for the corridor is in the middle, which is where the people say they want a center. If you put a city center at U -City, there won't be a retail strip any more, but would be an area as a gateway that informs people that have moved into the corridor. To make a city center happen, the area needs to be more attractive and needs land use to be supported by transportation; that five and one -half miles of commercial is too big; that people are too focused on the pros and cons of the couplet and that should not be the focus. Michael Freedman: Following are highlights of his PowerPoint Presentation: Members of the consulting team focused on land use development, capital improvements; they specialized in kinds of problems and opportunities found in the Sprague Corridor. The preliminary ideas for consideration from yesterday's meeting included: a desire to draw on their experience doing corridor revitalization in similar circumstances around the country, and address part of what they learned in other communities faced with similar circumstances, and what are their thoughts on how those lessons might apply to the opportunities and challenges of this corridor in terms of what they found in their research and field work. Commercial corridors have entered a period of accelerating transition, and can be found everywhere; retail is concentrating at major intersections and freeway off - ramps. Anywhere you go commercial corridors put together similar scenarios to what we have. He sees areas replacing what used to be linear patterns of commercial development, increasing concentrations of heavily anchored retail and entertainment at power centers and off - ramps. Retail is responding to the existence of a highway; and the concentration of major retail power can be seen at off ramps which removes a tremendous amount of buying power over to the freeway. These crossroad located centers are draining economic vitality from properties located everywhere else in and out of the city. This is happening everywhere in America. As you drive down our corridor you get a sense of the history of the corridor, but also a sense of dilapidation, which gives a negative identity associated with the City. Many buildings have outlived their economic life. They found in other communities that now they have to pay attention to where the major crossroads Study Session Minutes 09 -21 -04 Page 2 of 6 Date Approved by Council: 09 -28 -04 are as those are the places where there is new net retail. To restore property values and vitality to corridors, land use and development and the design of the thoroughfare must be significantly restricted to reflect investor preferences and to respond to the real pattern of demand in the locality. To optimize the corridor's land values again and make it a highly visible and successful piece of the City, they suggest the following strategies: 1. significantly reduce the amt of land intended for commercial development along the corridor. 2. go with the marketplace: provide retail concentrations at major crossroads (in amounts that do not overwhelm market demand) in compact, walkable, lifestyle town center configurations. 3. corridor restructuring must be planned in relation to the envisioned pattern of retail in the City and in the region and the comprehensive plan is a major opportunity to plan the healthy co- existence of a pattern of commercial centers. 4. look for opportunities to redevelop grayfield malls no longer advantageously developed; promote the development of a town center at the U -City mall. Geographically, U -City is at the center, is at a crossroads and is ready to go. 5. modify land use and development policies to focus high quality residential, workplace and lodging investment like a mixed use grand boulevard, which will lend to a very successful retail work place, and have residential domination. As part of the comp plan, focus on land use decisions that consider transforming the most damaged segments away from retail, and redevelop them into housing, offices and residences which would all support a town center itself. What form should the residential segments take? Single family homes, or zoned for higher densities like multi family, townhouses? Longer setbacks, larger masses; bigger planting strips; or multi - family that looks similar to large homes to fit in well with neighborhood, that all works well. We also need to figure out how to do that with the corridor, and to do that plus meet market demands for homes without the need for having large mansions. As resources allow, focus capital improvements on setting the stage for residential development in targeted segments where it is damaged, and use capital improvements to create green leafy developments to create what is desired in that area. 6. neighborhood serving retail and services should be planned in limited clusters at strategic locations (facing the corridors). 7. promote continued success of the specialist segments of auto sales and services; and cluster such specialized uses whenever possible. He recommends we bolster the area for the auto sales and build on the best of what's already there. 8. focus street improvement resources to reconfigure each segment to create environments that are supportive of the enhanced market focus of the desired forms of investment; that is; each segment's development types must be paired with the appropriate form of street design. We need to focus improvements on the gateway to create, identify and make highly visible the city's commitment to revitalization, we want to send a positive message and not a negative message. The hardest thing to do and most necessary is to re- envision the corridor as a series of segments with their own market areas of focus and different right -of -way treatments.. Design must match the needs of development for the area next door. Question and Council discussion (paraphrased): Councilmember Taylor: How do you sell this as a City center if it takes seven to ten minutes to get there from the nearest highway exit? Michael Freedman: the mall is made up entirely of national retailers which creates a certain kind of environment. The opportunity we have is to pick a local crossroads where land is available and which is geographically central to the town itself, and to create a different kind of place, not to compete with the mall but more of an anti -mall conglomeration with shared parking, walking orientated, cafes, town green, new town hall, a kind of place where the community gathers and where people go to lunch. We have to keep in mind that the life -style retail is the now the hottest thing; major investors want to be inside urban environments; he looked at single family housing in this area and stated we should keep in mind that the Study Session Minutes 09 -21 -04 Page 3 of 6 Date Approved by Council: 09 -28 -04 baby boomers are now moving out in greater numbers and want to live by cafes, bookstores, art galleries, and theatres. Terry Moore: you only need a small amount of multi - family residences; other areas generally show a 60//40 split, and with that split we will only need less than five percent of the multifamily market into this type of unit. Michael Freedman: says in connection with transportation issues, it is essential to work with a good economic study and a good economist, so the community is not dreaming of an investment it can't get. He feels the land use pattern must be developed within realistic frameworks, but that there are limits; configuration of a roadway should be set to follow, serve and instigate what the market could deliver; we don't want people to cross five lanes of traffic, it would be better to have office or housing on one side so those people can be customers of the downtown uses on the other side. Tina Fueston: integrating transit depends on what people want; with greater densities we don't want a lot of connecting roads and so transit doesn't make a lot of sense, but with multi - family, transit does make sense. Michael Freedman: In response to Councilmember Denenny's question about not having overhead wires; this should be a prioritization issue; that up to a certain point it is not worth doing undergrounding because it's not just wires making the condition; and with the first five to ten million, you can get more for the buck to develop in ways to hide most wires; and later have it more of a priority to do undergrounding. Now undergrounding would be very expensive, usually newly incorporated cities should probably not do undergrounding because it would blow the whole pot. Additionally, suicide lanes are very dangerous and you don't get much from them. He found he could put in a narrow landscape medium down the middle of the street, and steal 16' from the middle to get eight foot parking on both sides, and add parallel parking curbside. The dealership communities tell him there is a segment of their customer base that buys cars on impulse so curbside parking would be advantageous. Dave Mercier: where are the next most likely nodes along the corridor that could benefit from a similar approach? Michael Freedman: said there are several options: if you divide the area into three - thirds, one seems to be a pretty strongly established commercial development in old- fashioned traditional forms in boxes, parking lots and big signs like up from Sullivan to the mall, and in the area of Sullivan to Pines. That is an area that can be improved because it is not flattering to business. The City can invest to improve signage, street improvements, or even have a business improvement district. On the other side are the auto sales and services. He suggests we try to find a way that the community can partner with them to make sure this is marketed as a growing and continued strong regional center to come buy a car. Terry Moore: said they have a legal requirement to get a plan done and a process is going that is part of the comp plan, to make a decision of where do you want to start and where you want things to go; and it is not clear that the first investment should be the middle; that maybe working at the two ends to make sure auto and retail ends are right would be a better start, or maybe start with the gateway improvement to show this is the start of something big. Deputy Mayor Wilhite: asked about one way or two -way. Michael Freedman: said that the street design should serve the development; this site is a site already in ownership and has visibility on both sides; and the most important place to be is where someone does not have to go across traffic on the way home. Turning into two -way would be problematic, and the evening commuters would have to turn across traffic to get in. NEXT STEPS: Terry Moore: explained that the next steps are to have a draft report to council, that the report is almost written and includes everything up through the history, existing conditions, and retail,. He feels they could have a draft report to Council within a couple weeks; allow council time to examine the report and to get comments back to the consultants, and then return the report back to council within a few more weeks with the hope of having a final report the end of October or early November. Study Session Minutes 09 -21 -04 Page 4 of 6 Date Approved by Council: 09 -28 -04 Tina Fueston: having the couplet one or two ways is not the major issue as either way works. Part of the basic question is we need to decide what is the function; we inherited that structure with the intention of having it as a primary commute through this valley. The couplet one way or two or not is not the central question: we need to decide on land use and let the infrastructure support it. Council thanked the consultants for their presentation. It was Council consensus to move forward with preparing the draft report. Mayor DeVleming called for a recess at 7:55 p.m., and reconvened the meeting at 8:12 p.m. 2. Presentation of Traffic Impact on Couplet — Evan Marques Terry Lynch of the Spokane Valley Business Association, introduced Evan Marques, Gonzaga student to give his presentation on his study of the couplet. Evan Marques thanked the Mayor and Council for the opportunity to speak, and then went over his PowerPoint presentation. Mr. Marques added that in his study, professional offices were not affected by the traffic patterns so most of his contacts were with retailers. Council thanked him for his presentation. 3. Budget Discussion- David Mercier, Nina Regor, and Ken Thompson City Manager Mercier explained that this is another in a series of budget considerations for the 2005 budget, and staff wants to propose the following for council consideration: 1. Need to brief council on stormwater utility and get direction to move forward with multi -year financial plan 2. Hope to come to conclusion of what to do with the list of theoretical predictions for 05 budget 3. Hope to prompt council consensus of what would be the gross amount of money to be allocated for outside agencies 4. Direction as to what next we can assemble and present for council information and consideration Deputy City Manager Regor explained the stormwater utility and background information section of the presentation; and added that any changes would need to be reflected to certify any assessment roll with enough time to submit information to the County by the appropriate deadlines. After discussion of the rates as shown on slide #2, Council instructed staff to begin work on the necessary Resolution. City Manger Mercier explained the details of slide 6, which shows the general fund looking forward; and pointed out the significant and annually increasing deficits on each forward looking year; he mentioned he feels it is important to have a reasonable view of the financial trends so as budget decisions are made in the current year, they are done so in context of these economic trends, and said that the major financial concerns are not for 2005 but for years beyond that. Finance Director Thompson discussed the 1 % limit listed on slide 7; and highlighted page 9 concerning staff's recommendation to reduce the budget. Deputy Mayor Wilhite stated that based on what the Finance Committee looked at, she appreciates taking a look at this so council can begin to determine where to conserve. There were no council objections to pull the amounts indicated and to prepare revised sheets for further consideration. In reference to the accompanying information concerning outside agencies, after Council review of what was allocated last time, and discussion on the allocation amounts for the upcoming year, it was Council consensus to leave the total allocation at $100,000, and for each Councilmember to go through the material and give recommendations to Deputy City Manager Regor who will give a summary of all recommendations at the October 19 Study Session. Councilmembers should attempt to get information to Ms. Regor by next Tuesday. City Manager Mercier then discussed the slide on page 14, and stated there are two problem statements: deficits in the general fund in the second column per year, and deficits in the street fund in the next column. He mentioned we have the lowest number of full time employees of all Washington cities with populations over 50,000, and our workforce numbers put us at one step below the lowest community. He Study Session Minutes 09 -21 -04 Page 5 of 6 Date Approved by Council: 09 -28 -04 stated he feels we are at shoe - string level for all programs being offering at the moment, that the options are to either select programs to reduce like code enforcement or the aquatic program, or if no programs are eliminated, we would have to turn attention to the largest segment of the budget which is public safety; and within that largest expense is law enforcement; and that we would have to do programmatic cuts to stay within the limited amount of revenue for each preceding year. It was moved by Mayor DeVleming, seconded by Councilmember Denenny, and unanimously approved to extend the meeting 30 minutes. Deputy Mayor Wilhite, speaking for the Finance Committee, stated that they have looked at the projected forecast to see where to reduce in 2005 to have the balance budget; that for the long term decline, we need to look at how to solve that problem, inform the public where our funds come from, and ask staff to look at an increase in sales tax and how much that would help to close the gap; or other alternatives to accomplish that goal. After further council consideration and discussion concerning the financial plan, it was Council consensus to come back to re- examine the options in order to bridge the budget gap. 4. Advance Agenda Additions — Mayor DeVleming Councilmember Flanigan asked that we add Mayoral Appointments to the September 28 agenda to fill a vacant position in the Lodging Tax Advisory Committee; and also asked City Clerk Bainbridge to post the ad concerning the Lodging Grant RFP and mail the RFP to those as has been done in the past. 5. Council Check -in — Dave Mercier City Manager Mercier said staff has been working with representatives from the State Auditor's office as they perform their audit, and because this is the first time working with us, they have looked at our policies, practices and procedures and will provide a preliminary report within the next few weeks; that they met last week and there are no findings, no problems, and we anticipate a clean audit report. In reference to the following year's estimated $96,000 cost to perform that audit, Finance Director Thompson said the auditors have left that determination open for conversation as why the audit should be Tess, which we will argue based on the number of transactions, ordinances, resolutions, and employees, and we feel we can build a good case for a lesser fee. 6. City Manager Comments — Dave Mercier No Comments. There being no further business, the meeting adjourned at 9:20 p.m. m / Christine Bainbridge, City Clerk, Study Session Minutes 09 -21 -04 Date Approved by Council: 09 -28 -04 Michael DeVleming, Mayor Page 6 of 6 David Mercier, City Manager Nina Regor, Deputy City Manager Ken Thompson, Finance Director September 21, 2004 City of Spokane Valley 2005 Preliminary Budget Spokane County Service Area 2005 2006 2007 Glenrose $49 $58 $63 North Spokane 31 37 40 West Plains 38 45 48 Remainder of service area 17 20 21 Stormwater Utility Background Information • Stormwater utility established to develop and maintain storm drainage systems, which protect the aquifer • City currently charges $10 annual fee per ERU; generates approx. $750,000 • Spokane County recently enacted a revised annual stormwater fee structure to implement its program in unincorporated area: 2005 Preliminary Budget 9/21/04 2 Street cleaning; winter sweeping and clean -up $569,755 Drywell repair and cleanout 116,064 Culvert repair and cleanout 12,202 Swale maintenance 4,613 Curb, gutter and inlet repair 11,867 Other 24,422 Total $738,923 Street Maintenance Costs Appropriately Charged to Stormwater Fund 402 YAIWICGOIPKU Salaries, Wages and Benefits $151,112 5160,179 5169,789 $179,977 5190,775 $202,22.2 City Overhead 552,458 $55,605 $58,942 $62,478 $66,227 570,201 Public Works 555,140 $58,448 $61,955 565,673 $69,613 573,790 Supplies $22,700 $24,970 $27,467 530,214 $33,235 536,559 Stormwater Project 5200,000 $400,000 $400,000 $400,000 5400,000 $400,000 Transfer to Street Capital Fund 5150,000 $150,000 $150,000 5150,000 5150,000 $150,000 IT Support 52,000 52,020 52,040 $2,061 $2,081 $2,102 Consulting Services $30,000 $30,300 $30,603 530,909 $31,218 531,530 Stormwater Maintenance Contract 5738,922 $775,868 $814,662 S855,395 $898,165 5943,073 Engineering Services 555,680 566,816 580,179 $96,215 $115,458 5138,550 Legal 52,500 $2,500 $2,500 $2,500 S2,500 $2,500 Contract Services 522,500 S22,725 522,952 $23,182 $23,414 $23,648 Training/Travel /Mileage 57,500 $7,575 $7,651 $7,727 57,805 $7,883 Transfer to GF 589,700 $91,494 $93,324 $95,190 $97,094 $99,036 Capital Outlay 520,000 SO SO $0 $0 SO Total Expenditure $1,600,212 $1,848,501 $1,922,065 52,001,520 $2,087,585 $2,181,092 ERU's 74,750 76,245 77,770 79,325 80,912 82,530 Rate 524 524 $24 $24 $24 524 Revenue 51,794,000 51,829,880 $1,866,478 S1,903,807 $1,941,883 51,980,721 Stormwater Utility 6 -Year Plan 2005 2006 2007 2008 2009 2010 Stormwater Utility: Six Year Forecast (9/21/04) (Fund Balanance 5978,7881 $960,1671 $904,580 $806,867 5661,165 $460,794 2005 Preliminary Budget 9/21/04 4 Stormwater Utility Fee: Assumptions and Implementation Timeline xacac •,.›..wwxj 3:, • Assumptions — ■ Stormwater Fund pays for related maintenance costs currently paid by Street Fund • Stormwater fee increases from $10 to $24 per ERU per year • Change effective January 1, 2005 • Timeline — ■ City enacts a fee resolution by December 2004 and forwards to Spokane County • County amends assessment rolls by January 15, 2005 2005 Preliminary Budget 9/21/04 5 General Fund Six Year Forecast (9/14/04) Problem Statement #1 General Fund Revenues: Sates Tax Property Tax Gambling Tax Leasehold Excise Tax Franchise Fees State Shared Revenues Planning & Building Fees Fines & Forfeitures Recreation Program Fees Interfund Transfers tnvestment Interest Total General Fund General Fund Expenditures: Legislative Executive & Legislative Public Safety Deputy City Manager Finance Legal Human Resources Public Works Planning Guiding Library Parks Admin Recreation Aquatics Senior Center CenterPlace General Government Total General Fund 2005 Estimate $ 12,400,000 10,055,316 800,000 5,000 620,000 1,035,340 1.293.000 1.200.000 90.000 80.000 36,000 27,614,656 2006 2007 Estimate Estimate $ 12,750,000 $ 10,255,869 800,000 5,000 626,200 1,061,224 1,293,000 1,200,000 90,000 42,500 50,000 2008 Estimate 12.877,500 $ 13,150,000 10,458,428 10,663,012 800,000 800,000 5,000 5,000 632,462 638,787 1,087,754 1,114,948 1,293,000 1,293,000 1,200,000 1,200,000 90,000 90,000 42,500 42,500 50,500 51,005 28,173,793 28,537,144 29,048,252 2009 2010 Estimate Estimate S 13,281,500 10,869,642 800.000 5,000 645,174 1,142,822 1,293,000 1,200,000 90,000 42,500 51,515 Surplusl(Deficlt) $ (1,127,646) $ (2,082,409) $ (3,804,866) $ (6,060,213) $ (8,514,674) 290,305 313,529 338,612 365,701 394,957 426,553 460,369 497,199 536,974 579,932 626,327 676,433 15,652,488 16,904,687 18,257,062 19,717,627 21,295,037 22,998,640 268,942 290,457 313,694 338,789 365,893 395,164 440,269 475,491 513,530 554.612 598,981 646,900 207,300 223,684 241,795 261,138 282,029 304,592 121,462 131,179 141,673 153,007 165,248 178,468 756,202 816,698 882,034 952,597 1,028,804 1,111,109 954,681 1,031,055 1,113,540 1,202,623 1,298,833 1,402,740 721,760 779,501 841,861 909,210 981,947 1,060,502 2.100,000 2,268,000 2,449,440 2,645,395 2,857,027 3,085,589 1,070,262 1,155,883 1,248,354 1,348,222 1,456,080 1,572,566 158,215 170,872 184,542 199,305 215,250 232,470 255,818 276,283 298,386 322.257 348,038 375,881 126,592 136,719 147,657 159,469 172,227 186,005 321,299 380,000 410,400 443,232 478,691 516,986 3,708,692 3,450,000 2,700,000 2,700,000 2,916,000 3,149,280 $ 27,614,656 $ 29,301,438 $ 30,619,553 $ 32,853,118 $ 35,481,367 $ 38,319,876 S 13,414,315 11,078,339 800,000 5,000 651,626 1,171,392 1,300.000 1,200,000 90,000 42,500 52,030 29,421,153 $ 29,805,202 2005 Preliminary Budget 9/21/04 6 Theoretical Reductions: 1% Limit Legislative Branch Amount Travel/Training (2,079) Executive & Legislative Support Amount Professional Services (14,000) Travel/Training (2,000) Office Supplies (202) Small Tools & Minor Equipment (500) Publications (800) (17,502) Public Safety Amount 3 SRO & 3 Traffic Officers (446,497) Finance Amount Small Tools & Minor Equipment (1,000) TravellTraining (1,300) Subscriptions (100) Printing (100) Registrations (500) Operating Supplies (300) 1/2 Administrative Assistant - Vacant (20,900) (24,200) Legal Amount Professional Services (4,993) 2005 Preliminary Budget 9/21/04 7 Theoretical Reductions: 1% Limit, continued Human Resources Amount Professional Services (2,079) Public Works Amount Small Tools & Minor Equipment (8,550) Engineering & Architectural (20,000) Office Supplies (200) Publications (2,412) Copier Maintenance (1,800) (32,962) Planning Amount Professional Services - CHAS (20,675) Building Amount Transportation (15,000) Publications (3,000) Clothing & Uniforms (650) Engineering & Architectural (1,000) Printing & Binding (1,500) Office Furniture & Equipment (2,051) Computer Software/Hardware (2,000) Code Enforcement Abatement (15,000) (40,201) GRAND TOTAL $ (591,188) 2005 Preliminary Budget 9/21/04 8 Legislative Branch $(2,079) Executive & Legislative Support (17,502) Public Safety 0 Finance (3,300) Legal (4,993) Human Resources (2,079) Public Works (32,962) Planning (20,675) Building (retains $15,000 code enforcement abatement) (25,201) Total $(108 Summary of Available Reductions (non - personnel) 2005 Preliminary Budget 9/21/04 r^a �r� �kwi> »• :j 9 Year General Fund Shortfall FTE Staff Reduction 2005 -- -- 2006 (1,128,000) (11.2) 2007 (2,100,000) (20.2) 2008 (3,805,000) (35.5) 2009 (6,060,000) (54.9) 2010 (8,515,000) (74.9) Six -Year General Fund Projected Shortfall: Impact on Law Enforcement Staffing — Service Level Outcome • Assumes 3% annual growth in cost of FTE • Does not assume potential off - setting revenues, e.g., grants • Scenario reduces 2005 law enforcement workforce by 74% by 2010 2005 Preliminary Budget 9/21/04 10 Street Fund 6-Year Plan - Service Level Maintained 2005 2006 2007 2008 2009 2010 Salaries, Wages & Benefits $198,354 $214,222 $231,360 $249,869 $269,859 $291,448 Supplies $13,280 $14,342 $15,489 $16,728 $18,066 $19,511 Spokane County Engineering Contract $ 400, 000 $ 432,000 $466,560 $503,885 $544,196 $587,732 WSDOT Street Maintenance - SR 290 & SR 27 $ 350, 000 $ 378, 000 $ 408,240 $440,899 $476,171 $514,265 Spokane County Street Maintenance Contract $2,185,364 $2,360,193 $2,549,008 $2,752,929 $2,973,163 $3,211,016 Minor Road Maintenance $300,000 $324,000 $ 349,920 $377,914 $408,147 $440,799 Street Lighting/Signal Power $300,000 $324,000 $349,920 $377,914 $408,147 $440,799 Consulting Services $0 $0 $0 $0 $0 $0 SRTC $36, 000 $38,880 $41,990 $45,349 $48,977 $52,895 Interfund Transfers - Replacement $18,645 $20,137 $21,748 $23,488 $25,367 $27,396 Total Expenditures $3, 801, 643 $4,105,774 $4,434,235 $4,788,975 $5,172,093 $5,585,861 Revenue $1,226,342 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 Surplus/Deficit ($2,905,774) ($3,234,235) ($3,588,975) ($3,972,093) ($4,385,861) Street Fund: Six Year Forecast (9/21/04) Problem Statement #2 2005 Preliminary Budget 9121104 ,;, • era. �,.v,•,�• -�X -�� �� 11 Salaries, Wages & Benefits $198,354 $0 $0 $0 $0 $0 Supplies $13;280 $0 $0 $0 $0 $0 Spokane County Engineering Contract , $400,000 $0 $0 $0 $0 $0 VVSDOT Street Maintenance - SR 290 & SR 27 $ 350, 000 $ 350, 000 $ 350,000 $350,000 $350,000 $350,000 Spokane County Street Maintenance Contract $2 185, 364 $ 599, 820 $ 599,820 $599,820 $599,820 $599,820 Minor Road Maintenance $300,000 $0 $0 $0 $0 $0 Street Lighting/Signal Power - $300,000 $250,000 $250,000 $250,000 $250,000 $250,000 Consulting Services $0 $0 $0 $0 $0 $0 SRTC $36,000 $0 $0 $0 $0 $0 Interfund Transfers - Replacement $18,645 Total Expenditure $3,801,643 $1,199,820 $1,199,820 $1,199,820 $1,199,820 $1,199,820 Revenue $1,223,312 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 Street Fund 6 -Year Plan Based on Current Revenues 2005 2006 2007 2008 2009 2010 Street Fund: Six Year Forecast (9/21/04) Service Level Afforded by Current Revenues :1 'Fund Balanance $1,5151 $1,6951 $1,8751 $2,0551 $2,2351 $2,4151 2005 Preliminary Budget 9121104 12 Six Year Projected Shortfall Summary (9/21/04) Operations: General Fund $ Street Fund Capita Needs: Parks est. Streets Other? 2005 2006 $ (1,128,000) ( 2,905,000 ) ( ( 425 , 000 ) ( 700 , 000 ) (900,000) (100,000) Total Capital (850,000) (1,425,000) Total $ (850,000) $ (5,458,000) 2007 $ (2,100,000) (3,235,000) (100,000) (1,450,000) $ (6,785,000) 2008 $ (3,805,000) $ (6,060,000) $ (8,515,000) (3,590,000) (3,975,000) (4,385,000) 2009 2010 ( 500 , 000 ) (550,000) ( 900 ,0 00 ) ( 950 , 000 ) (100,000) (100,000) ( 1 , 500,000 ) ( 1 , 600 , 000 ) $(11,535,000) $ (14,500,000) 2005 Preliminary Budget 9/21/04 13 Projected Shortfall Summary: Operations (9/21/04) General Fund Street Fund Total 2005 $0 0 $0 2006 $(1,128,000) (2,905,000) $(4,033,000) 2007 $(2,100,000) (3,235,000) $(5,335,000) 2008 $(3,805,000) (3,590,000) $(7,395,000) 2009 $(6,060,000) (3,975,000) $(70,035,000) 2010 $(8,515,000) (4,385,000) $(72,900,000) Projected Shortfall Summary: Operations (9/21/04) 2004 2005 Allocation Request International Trade Alliance $14,000 $35,000 Chase Youth Commission 2,000 10,000 Economic Development Commission 55,000 175,000 Project Access 25,000 25,000 Valley Community Center 4,000 14,283 Spokane Valley Meals on Wheels 0 8,200 0 $100,000 $267,483 Amount Proposed in 2005 Budget: $100,000 CITY OF SPOKANE VALLEY Outside Agency Requests 2005 Proposals Salaries, Wages and Benefits T $151;112! $160,179 $169,789 $179,977 $190,775 $202,222 City Overhead , ,, $52,453 $55,605 S58,942 $62,478 $66,227 $70,201 Public Works , $55,1401 $5B,448 561,955 $65,673 $69,613 $73,790 Supplies :,f, $22;700. $24,970 $27 $30,214 $33,235 $36,559 Stormwater Project , S200,000. $400,000 $400 $400,000 $400,000 $400,000 Transfer to Street Capital Fund ._ - , - $150X100 $160,000; $150,000 $150,000 $150,000 $150,000 IT Support '- $2,020 $2,040 S2,061 $2,081 $2,102 Consulting Services ' $300(10, $30,300 $30,603 $30,909 $31,213 $31,530 Stormwater Maintenance Contract '$738,922 $775,865 $814,662 $855,395 $898,165 S943,073 Engineering Services , ::- $65,680 $66,815 $80,179 $96 215 $115,458 $138,550 Legal "2 142500 $2,500 $2,500 $2,500 $2,500 $2,500 Contract Services ; $22,500 $22,725 $22,952 $23,182 $23,414 $23,648 Trainingriravel/Mileage _ ' ,‘$7,500 $7,575 $7,651 $7,727 $7,805 $7,883 Transfer to GF , ‘ - $89,700 $91,494 $93,324 $95,190 $97,094 $99,038 ipital Oil tlay , $20 _ $0 $0 $0 $0 $0 Total Expenditure - S1,600i212 $1,848,501 $1,922,065 $2,001,520 $2,087,585 $2,181,092 ERIJ's . -; -74,750 76,245 77,770 79,325 80,912 82,530 Rate c ,, :$24 $24 - $24 $24 $24 $24 Revenue $1 $1,829,880 $1,866,478 $1,903,807 $1,941,883 $1 980,721 Stormwater Utility: Six Year Forecast (9/21/04) Fund Balanance 11178788! $960,167 2005 Preliminary Budget 9121104 $904,580 $806,867 $65115I 460 r 794 6-Year Plan Stormwater Utility ' e 1 2005' 2008 2007 2008 1 2009 2010 Stormwater Utility: Six Year Forecast (9/21/04) Fund Balanance 11178788! $960,167 2005 Preliminary Budget 9121104 $904,580 $806,867 $65115I 460 r 794 Human Resources Professional Services Theoretical Reductions: 1% Limit, continued Public Works Small Tools & Minor Equipment Engineering & Architectural Office Supplies Publications Copier Maintenance Planning Professional Services - CHAS r�r f da"rrg Tfansportation Publications Clothing & Uniforms Engineering & Architectural Printing & Binding Office Furniture & Equipment Computer Software /Hardware Code Enforcement Abatement GRAND TOTAL Amount (2,079) Amount (8,550) (20,000) (200) (2,412) (1,800) (32,962) Amount (20,675) Amount (15, 000) (3,000) (650) (1,000) (1,500) (2,051) (2,000) (15, 000) (40,201) $ (591,188) 2005 Preliminary Budget 9/21/04 8 2004 2005 Allocation Request International Trade Alliance $14,000 $35,000 Chase Youth Commission 2,000 10,000 Economic Development Commission 55,000 175,000 Project Access 25,000 25,000 Valley Community Center 4,000 14,283 Spokane Valley Meals on Wheels 0 8,200 $100,000 i $267,483 Amount Proposed in 2005 Budget: $100,000 CITY OF SPOKANE VALLEY Outside Agency Requests 2005 Proposals