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2020, 08-04 Special Meeting, Workshop MINUTES SPOKANE VALLEY COUNCIL SPECIAL MEETING BUDGET WORKSHOP Spokane Valley City HaIl Council Chambers—Via Zoom Spokane Valley, Washington August 4,2020 Attendance: Councilmembers _ Staff Ben Wick, Mayor Mark Calhoun, City Manager Brandi Peetz, Deputy Mayor John Hohman, Deputy City Manager Pam Haley, Councilmember Chelsie Taylor, Finance Director Tim Hattenburg, Councilmember Cary Driskell, City Attorney Rod Higgins, Councilmember Erik Lamb,Deputy City Attorney Linda Thompson, CounciImember Mike Stone,Parks &Rec.Director Arne Woodard, Councilmember Dave Ellis, Police Chief Morgan Koudelka, Sr. Admin. Analyst John Whitehead,Human Resources Manager Bill Helbig, City Engineer Jenny Nickerson, Building Official Mike Basinger, Economic Development Mgr. Christine Bainbridge, City Clerk Mayor Wick called the meeting to order at 8:30 a.m. WELCOME: Mayor Wick welcomed everyone to the meeting. ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present. Worksheet Overview--Mark Calhoun, Chelsie Taylor City Manager Calhoun explained that although this meeting is not being broadcast live, it can be viewed live via Zoom, and will be available on our website at the end of the meeting; he mentioned the four priorities of (1) public safety, (2) pavement preservation, (3) transportation and infrastructure, and (4) economic development and said that throughout this process,the meeting will focus on the combined effort of those four priorities;mentioned that today's workshop is occurring later in the year than usual due to the current COVID-19 pandemic as we felt it worthwhile to wait for revenue figures, which he said were just received in the past two weeks, and said that Ms. Taylor has updated the 2020-2021 revenue projections. Mr. Calhoun extended thanks to Finance Director Taylor and the finance department, and to all the staff who contributed to the process. Mr. Calhoun said that there will be a variety of changes between now and September 8 when Council will again hear a report on the refined 2021 budget estimated revenues and expenditures; and he noted staff will closely monitor the sale tax information as we go through the budget process. Mr. Calhoun said the notebook contains 22 sections and that we will cover the first 21 today, but will not cover section 22 as that is the preliminary 2021 Business Plan,which he said is a critical component of this entire process,but is included today for information only,Mr. Calhoun also noted the intent is to be finished with today's meeting by 2:30 this afternoon, and that there will also be a special meeting at 2:45 p.m. to handle just one item dealing with CARES funds.Mr. Calhoun said we will not go through all the line items, but that it is important to share the information as part of being transparent. He mentioned we have a fairly aggressive schedule and wants to focus on the bigger picture in each department and the material expenditures, rather than delve into too much detail today, and said he will do his best to keep things moving. As we begin the budget process, Mr. Calhoun explained, that due to significant reductions in revenues caused by the COVID event, that the 2021 general budget will have expenditures exceeding Council Special Meeting Workshop:08-04-2020 Page I orb Approved by Council:08-25-2020 revenues, but that we will be watching tax revenues carefully as we get more data from the state; he mentioned our policy of setting aside a portion of the general fund fund balance that exceeds 50%, with intent to use that in the future for continued levels of service, and that we usually wait 18 months to determine how to allocate that excess;he noted this year he strongly recommends not moving money from the general fund and to maintain historic levels of service; which he said is how this budget is built; that overall there is a 4.1% increase to deliver the status quo of service; that the public safety budget is up by 5.5%and other departments'average increase is just over 1%;and explained that there is variation in budget movement in the various departments, which is a result of a number of factors unique to department's operations. Finance Director Taylor then gave an overview of the binder and budget summaries; she explained the section contents generally; that the budget reduction is not a recommended course of action but is there to see what might occur due to an economic recession; she briefly explained the pages prior to Tab#1, and it was noted the one column should be titled"proposed 2020 amended budget"since the 2020 budget has not yet been amended,but which will occur as we receive more data. Director Taylor brought attention to page 7 of 13, and said the funds assume the economy goes back to previous levels; said we show operating deficits of about$1.9 million so there will be a future budget amendment; she mentioned the transfers in to 001 and 312 as shown in the middle of page 7 and said this is just for the street fund. She stated that the green pages are new for this year and reflects a second set of budget if we were to adopt cost cutting measures in the street and stormwater fund; and she briefly went over the figures on page 11 showing the second street fund budget with revenues the same as the white pages, but expenditures decreased $4.4 million compared to $5.6 million on page 7, and a reduced operating deficit down to about $769,000. Director Taylor also noted page 13 which shows a ten-year summary of actual FTE (full time equivalent employees), and has the footnote explaining the one vacant position in economic development was repurposed to engineering. Ms. Taylor mentioned that this budget assumes we do not take the 1%allowed increase in property taxes; and that although the month of June collections showed an increase in those delayed tax filings from the Department of revenue,she wants to see further data before making any changes to the 2021 projections; and again mentioned that all revenue estimates are subject to change. [Note: Agenda items were taken in the order as noted below.] Tab 1: City Council City Manager Calhoun went over the spreadsheet showing the line-item details with three years of actual expenditures; that this tab includes the 2020 budget and 2021 budget, as well as the budget reduction exercise. Said the overall increase in this budget is 1.51% and mentioned the largest appropriations are for the state and federal lobbyist services; as well as travel to Washington, D.C.,and for memberships in AWC (Association of Washington Cities) and the NLC (National League of Cities). Deputy Mayor Peetz noted that council position 41 is no longer mayor and Mr. Calhoun said that will be changed to position#4. Tab 2: City Manager Mr. Calhoun noted this department shows an overall increase of 1.97%, and he briefly went over some of the figures shown, remarking that the other services were reduced to reflect what we expect will be actual expenditures; he noted a large category is professional services, and said he often uses that for needs in other departments. Councilmember Thompson had a question about use of council travel funds and asked if the transferring of one councilmember's funds to another is tracked. Mr. Calhoun said there is a form where a councilmember can allocate a portion of their travel allowance; and that it does not create a formal budget amendment as we adopt a budget total and not line-item totals. Tab 3: City Attorney City Attorney Driskell explained that this department includes three attorneys,an administrative assistance, and two legal interns; said he uses outside counsel as needed or for specialty items like shoreline or grants management;said about half of the litigation is handled by outside counsel and Deputy City Attorney Lamb has taken on a fair amount of litigation;said his proposed budget is very stable relative to 2020,and includes Council Special Meeting Workshop:08-04-2020 Page 2 of 8 Approved by Council:08-25-2020 an increase of 1.5% overall; said that for his and all departments, any budget left over and not spent is returned to the general fund. Tab 4: Public Safety Senior Administrative Analyst Koudelka started out by going over page 1 of the public safety budget sheet; he noted the large amount for miscellaneous contingency as there is a large amount of unknowns in the 2020 budget; said there was some reduction due to COVID-related impacts, but overall the budget is fairly stable; he noted there are fewer cases and some changes in staffing Ievels likely with newer or entry-level attorneys working on misdemeanors resulting in a little decrease; said the law enforcement contract settlement driving the increase in the 2020 budget was partially based on 2019 costs and what is shown for 2019 isn't what we ended with; said the estimate was based on an estimate from the County that did not include a COLA (cost of living allowance), so 2021 figures will get us caught up in COLAs for multiple years; said there are now 14 positions fully budgeted which will allow the Sheriff to hire in advance and be ready to fill open positions; said he is working with the County budget office and the Sheriff's Office to recognize the current impact on our economy in revenues; that they are scaling back any discretionary expenses that may have been an increase in previous years,and are postponing those types of costs; said he will be working with Director Taylor to get a better feel for 2021 as we see where we stand in 2020. There was a question from Deputy Mayor Feetz about a clothing budget, and Chief Ellis said there is a clothing allowance in that the Sheriff's Office provides the initial first uniform when an officer is first hired. Mr. Koudelka went over the highlights of the spreadsheets and said that the use of some software and tracking will help in providing better accountability with overtime,training and scheduling time off, and to make sure special unit costs are allocated within those units. Chief Ellis spoke a little about the current training at a rented facility and that a new facility would have all that training moved. Mr. Calhoun added that in the five-year contract with the County,there is a provision for anything expensive like a new training center,but that doesn't necessarily mean that Spokane Valley would financially participate,but that it would be dealt with through a separate discussion. In continuing to go over the figures, Mr. Koudelka mentioned the issues with the current animal control and their new facility and said we offered to re-work some of the components of the cost methodology to acknowledge some unforeseen cost increases, but that didn't come to fruition so we are maintaining our status quo with our twenty-year agreement and said there are no plans at this point to re-work the contract, Tab 5: Deputy City Manager Deputy City Manager Hohman explained that he oversees four operational divisions, and that he is the only employee in this budget; said he tried to bring supplies and other services/charges including software licenses more in line with actual services, and mentioned that the QAlert system is the system that allows the public to address issues to the City. He also noted that the County GIS has been moved to economic development. Tab 6: Finance& Information Technology Finance Director Taylor said that the fmance department is responsible for cash receiving,payroll,writing cheeks, the annual audit, and IT; and includes 11.75 FTEs; said most of the increase is due to payroll and some of the cuts are for supplies,to be more in line with the three-year average. Tab 7: General Government Ms. Taylor said this budget is for expenditures not included in any specific department, like for expenses that benefit the city overall and includes a lot of IT expenses such as hardware and software. Councilmember Thompson asked about the software purchase that was planned and Ms. Taylor said she decided to postpone that for a while as it will be a substantial amount, and likely cost over$1 million. Tab 8:Human Resources Human Resources Manager Whitehead went over the spreadsheet for his department, noting that his department includes just two FTEs; said some of the services they provide include payroll, ADA Council Special Meeting Workshop:08-04-2020 Page 3 of 8 Approved by Council:08-25-2020 compliance, and risk management; said he looked at reducing expenditures without too much loss of services; said in these times they will likely do less hiring so that means less advertising; and he mentioned they will do collective bargaining again in 2021. A recess was called at 10:05 a.m., and the meeting reconvened at 10:20 a.m. Tab 9: City Hall Operations &Maintenance Building Official Nickerson went over the preliminary information included in the spreadsheet; said that the construction season isn't showing any signs of slowing although the full impact of COVID is unknown; said professional services were reduced due to a contractor for landscaping being brought in-house and we hired a part-time worker for landscaping for the summer to assist Mr. Moat; said they have seen an increase in equipment repair and maintenance more than in the past for items such as lawn mowers in order to keep those machines running well and able to attend to the facilities here and at the City shop. Tab 10: Community&Public Works—Building &Planning Building Official Nickerson explained that this division includes 21 FTEs; said cost for training was reduced as much was brought in-house and other training sessions were cancelled due to COVID and lack of ability to go to a training session in person; said they are working on more in-house training; mentioned they will purchase code books this year instead of 2021, which will be good for at least three years; and said the Code adoption was postponed to February of next year. Tab 11: Community&Public Works—Engineering City Engineer Helbig went over some of the figures in the Community and Public Works Engineering spreadsheet; mentioned the four different sections including traffic, capital project, storm utility, and development engineering; said Mr. Adam Jackson was transferred from Economic Development to his department but that does not represent an increase in FTEs; said overall his department saw a .63% nonpayroll increase and said most of the figures represent keeping the status quo. Deputy Mayor Peetz asked if there are still openings and Mr. Helbig said the engineering and assistant engineering positions are vacant but that is not reflected in the budget as he does not anticipate filling those positions at this time. Mr. Calhoun added that not knowing the exact impact of COVID on our revenues, we are trying to hold these positions open for a while and if it looks like the economy will straighten out, we could work on filling the positions, or in the alternative, keep them vacant; but that has not yet been determined. Tab 12: Community&Public Works Economic Development Manager Basinger explained that this division includes five FTEs and one part- time intern; said this division is designed to strengthen the City's identity, and provide business assistance with primary focus on retention, and recruitment, and to support new events like CRAVE and Farmers Market; said they manage contracts with partners like Visit Spokane and the Chamber, and this year his area saw changes under wages adjusted to reflect the removal of one FTE moving to engineering. Mr. Basinger also noted that the site selector is now facilitated by GSI (Greater Spokane, Inc.). Mr. Calhoun said that since we are ahead of schedule,after Mr. Stone finishes we will have Mr.Helbig and Mr.Holtman talk about the street operations and maintenance fund, and also the stormwater fund. Tab 13: Parks &Recreation Parks&Recreation Director Stone explained that there are six divisions in Parks&Recreation,and he went over the information on the various divisions, explaining that the 2021 budget goal was to continue with the status quo; said overall there was a department increase of 1.17%, some of which was affected by the minimum wage, and some by aging facilities; said CenterPlace is usually open 18 to 20 hours a day, although due to the pandemic, that is not the case now, and consequently, his department has much less spending. Mr. Stone then gave the highlights of the Administration Division, Maintenance, Recreation, Aquatics, Senior Center and CenterPlace; and said all park reservations and special events have been cancelled although staff is taking reservations for events in 2021 and even some in 2022. Concerning Council Special Meeting Workshop:08-04-2020 Page 4 of 8 Approved by Council:08-25-2020 aquatics, Mr. Stone mentioned our contract and great partnership with the YMCA; however, he noted we will not be able to open pools this year; he said some time was spent on some pool repairs and routine maintenance, and the YMCA has been very flexible with us on costs based on actual repairs. A question arose about us paying the full management fee to the Y and Mr. Stone said he and Mr. Calhoun discussed this and the likely answer is yes; he added that not opening the pool will allow us to work on some things that would be beneficial to the pool system and said he feels it would be a goodwill gesture on our part while minimizing expenditures as much as possible. Mr. Calhoun noted we will be moving to Tabs 15 and 16,then break for lunch and come back after lunch with Tab 14. Finance Director Taylor noted there were new one-page handouts each for 15 and 16, Tab#15: Street Operations & Maintenance Fund City Engineer HeIbig explained that there are two separate street fund budgets: one that is more in keeping the status quo, and the other that addresses possible budget cuts and revenue forecasting of what would be needed in order to keep the same level of service we currently provide. He noted on the non-status quo sheet, items that could be cut include roadside irrigation, street sweeping to just once a year, no longer do snow removal from sidewalks, and have very limited residential snow plowing. Mr. Helbig also went over the figures on page 2 of the spreadsheet showing an increase of winter snow services; said the figures being proposed are what we anticipate we will actually spend as past budgets have been kept artificially low. Mr. Calhoun brought attention to those thirteen pages at the beginning of the workbook binder, particularly page 7 of 13 for a good summary of these expenses. There was discussion about the street fund budget and that expenditures are greater than revenues by over$1 million and of the need to inject funds into the general fund; as noted on page 7 of 13 the recurring revenues for the proposed 2021 budget shows $1,898,050, which gets transferred into the general fund and ends up with an ending fund balance of $556,265. Discussion moved to the new one-page handout with Mr. Calhoun emphasizing that these are what we could be looking at if we didn't maintain the level of service, and that he wants Council and the community to know what that would look like. Mr. Hallman mentioned that this is all in follow up to the various conversations we have had on pavement management or pavement preservation; we know the revenues are decreasing and expenditures increasing, and at some point, we will not be able to sustain the Ievel of service; some things we cannot do without such as signal lights, but there are other things we could cut back such as street lights. Mr. Hohman also noted possible cuts to the Poe Contract could also affect crack sealing and other maintenance items which means we will see more complaints about road conditions. Mr. Helbig again cautioned that this is just an exercise but is necessary to address; and said staff is not necessarily proposing these cuts for this year. In summary,Mr.Calhoun said the initial budget shows the status quo level of service,while the second version shows substantial reduction in services and corresponding lessening amounts to the street fund;he said staff will follow policy direction by Council as we progress; said staff is not recommending a cut as the general fund can handle the expenses in 2020,and are recommending for 2021 we not transfer funds;that if the tax revenues come in stronger,then the general fund fund balance would be even greater. Further discussion included mention of the Department of Transportation's property on Flora and the purchase price for that land,with Mr.Calhoun explaining that the difference from what we have of$780,000 and what we need which is about$1.3 million, and said we can talk with Council more on that;that maybe even use the money in 312 earmarked but not committed to a particular project; and again, said that is a conversation for later. Councilmember Woodard said he would not vote for a general fund transfer at this point, and asked how long Council will keep postponing this issue of road preservation and the street fund; he added that we don't want to go backwards on some of these projects where we have already committed but not allocated the funds; and said he will not vote for the budget the way it is unless he can be convinced the$1.9 million is eliminated or taken care of in the future; said council has to have a hard-decision making discussion; that he understands $917,000 out of our fund will seriously impact those streets, and he asked when will we come back to road preservation discussion to find creative ways to address this on-going issue. Mr.Hohman said this is not just an accounting exercise but a look at what our actual costs have been Council Special Meeting Workshop:08-04-2020 Page 5 of 8 Approved by Council:08-25-2020 and if we cut back on our historic levels of service in the community,there will be more people complaining in additional to having a more difficult time getting around during the winter; said maybe we would decide not to do a full city plow, and while we can't predict the winter weather, we do have to take a serious look at this issue. Director Taylor mentioned that the actual snow activity in 2019 was well over$1 million and about$600,000 over budget,which was transferred in from the winter weather reserve; so it didn't cover it all for that year,and then we had to re-fund the winter weather reserve out of the general fund. Mr.Hohman said the point is to show that we are on an unsustainable course; that the budget deficits will continue to grow and if there is no increase in revenues, the only option would be to cut back the budget and this discussion gives Council an idea of where we might go in the future, adding that we also cannot predict revenues during the COVID; said the general fund can absorb the $1.9 million for 2021 but it means you are not taking that money to fund 312 to put to other uses; and in past years funds were set aside funds for such things as the CenterPlace West Lawn improvements,and park acquisition;and that this means we will have less money to do the extra things. Tab#16: Stormwater Fund City Engineer Helbig said this is an easier fund to discuss since it is an enterprise fund and has identified and dedicated expenses making it a little easier to plan for; mentioned the two budgets with one showing the status quo, and the second an exercise to see the figures if we had cuts; said this budget handles mostly landscape maintenance so staff is proposing a budget that provides the same level of service; noting that the first budget is no change except for increases in payroll taxes; he also mentioned the corresponding page 8 in the front of the budget workbook binder; said we are still working with the figures which will be refined over time. Mr. Calhoun added that we try to maintain a minimum working capital for cash flow purposes,and these figures would be about half of the revenues,which he said tend to come in twice a year. As noted on the new budget exercise sheet for effects of cuts in services, that were such cuts required, the landscape maintenance including swales and roadside vegetation service would be decreased by half; the roadside irrigation would be discontinued; and the street sweeping services would also be decreased by half resulting in only one full sweep annually. The meeting recessed at 11:43 a.m. for lunch; and reconvened at 12:32 p.m. Tab#14: Supplemental Budget Requests City Manager Calhoun encouraged Council discussion on these items and said none of the items are included in the budget figures discussed in the summaries. Ms. Taylor said the figures are labeled R for recurring or N for nonrecurring, summarized by the total at the general fund activity. The following are the supplemental budget requests: City Manager: Mr. Calhoun explained that the issue of homelessness has been addressed more recently and consequently has required more staff time, in particular,Mr. Koudelka's time as he handles this in addition to this other responsibilities;that during the past sixteen months,Council heard twelve different staff reports on the issue, and even had discussion about whether to continue our status quo with the CDBG/HUD program or become our own entitlement city and that the decision was to stay with the status quo as otherwise we would have had to hire two to three employees immediately,and form an advisory committee among other numerous steps. Mr. Calhoun said that Council's continued interest in housing control leads to the idea of considering the creation of a housing and homeless services division to address the homeless population in a more pro-active manner and possibly become our own CDBG entitlement community in 2024; that if we did that, this division would be comprised of two employees and would then permit Mr. Koudelka to perform his other tasks and responsibilities; that we would hire people for this division with expertise in the area. Mr. Calhoun also noted we have been working with the City of Spokane and Spokane County and he noted that while it is important to participate regionally,we would never do so at the expense of our individual city; he also noted with the new employees, we could have more discussions about FIB 1406, which encourages investments in affordable and supportive housing. Mr. Calhoun added that should we implement our own division,those new staff could develop a consolidated plan for Spokane Valley so by the spring of 2023,we could start work to become our own entitlement city in 2024.Mr.Calhoun brought Council Special Meeting Workshop:08-04-2020 Page 6 of 8 Approved by Council:08-25 2020 attention to page 5 of 13 which shows the estimated costs for this service. He also suggested that perhaps halfway through the year, a third employee could be included; and he stated that no decision is needed today as this is for discussion purposes. Discussion by Councilmembers included the idea of more local control; the issues of our own entitlement city and of freeing up Mr.Koudelka's time;the question of would this be duplicative since we are on many boards dealing with this issue; do we destroy relationships if we are our own entitlement city;that we are a contract city which is what citizens intended when we incorporated; whether to have an entire division or just start with one employee; the idea of having a currently unfilled position move to this new division on a trial basis;that the Continuum of Care's emphasis is on housing first;being reactive or proactive and what would be best for our city; having someone who could research available grants would be a positive; and that we have funds but don't have time to determine how to move this program forward. The discussion ended with Councilmembers not wanting to form a department but they liked the idea of repurposing one existing vacant position. Mr. Calhoun said he will work on how best to put all these ideas together and return to Council for future conversations. Public Safety:Mr.Koudellca explained that this list involves Building Official Nickerson, and Police Chief Ellis and others who came together to identify needs associated with the Precinct Building. Ms.Nickerson went over the list which shows each item's priority level, as well as the year sought,justifications, and approximate expense; she mentioned that staff is exploring priority items 7 and 8 to see if they would be allowable uses for the justice grant. Chief Ellis added that there are security issues with the back lot as there have been some break-ins and some vandalism;that there are times when a vehicle pending a search warrant is stored in that area so it needs to be protected, and said they feel some lighting would help with security issues, plus adding some cameras; he said the area is a bit tight but they have a need for about 65 vehicles and currently there are 42 parking spots. Councilmember Woodard stated that a reason for buying that back lot was for precinct expansion at some point,and he'd like to make sure the higher dollars items like lighting and cameras are designed so we don't lose them once the building is expanded. Deputy Mayor Peetz agreed and said perhaps something could be done on a temporary basis. The question of finds was brought up and Mr. Calhoun said an evaluation has been done on the building;said items 3 through 8 appear to be priorities but perhaps we could push them back, although they should be done sooner than later. There was some discussion about paving or re-grinding and Mr.Nickerson said she will follow up with engineering staff for a cost-effective solution.Councilmember Haley suggested some items such as 10 and 12 could be combined to get a better bid and Mr. Calhoun said staff will do their best to address the immediate safety concerns; that item 1 seems to be on the verge of failing, and the suggestion is to replace that at once if possible, and then work through the others;he also noted that the sergeants have been very patient to get that#9 remodel work done. Mayor Wick said that perhaps some CARES funds could be used for items such as 16 and Mr. Calhoun said he will research that idea. Parks & Recreation: Ms. Stone explained about the requests as shown, and said that it is likely item 1 and 3 could use the same contractor; said Mirabeau Meadows restroom is about 17 years old, has been vandalized numerous times,and we have reached the point where we just can't sustain it without it looking unattractive; said there have been suggestions of coating or staining to make it more water-repellant and more graffiti resistant. Community and Public Works Fleet Replacements: Finance Director Taylor stated that we have put funds away already for these so they are fully funded. Councilmember Woodard asked about the 2004 Ford's mileage and Deputy City Manager Hohman said this was one of the original vehicles purchased by our first street superintendent;that the mileage is correct but we can't use the vehicle for the half-year we normally do because it is unsafe. There was some brief talk about the fleet and scheduled replacement and that all departments that use the vehicles pay an internal vehicle lease amount, and Mr. Calhoun mentioned that when we look at the vehicle replacements, we determine if it has a tell-year useful life that could be expanded out into subsequent budgets to make the budget impact less. Council Special Meeting Workshop:08-04-2020 Page 7 of 8 Approved by Council:08-25-2020 Tab 17: General Fund—Fund Balance Finance Director Taylor went over the material describing the fund balance and how the amount of the reserves are calculated in order to meet operating cash needs.There was some discussion about the method for this calculation, with Mr. Calhoun explaining that if we need the reserve in case of an economic recession such as what we are now experiencing, then the funds don't get transferred out, and if we don't need the reserve, it gets moved but we have to wait about 18 months to make a decision, again due to cash flow operating needs. Tab 18: Potential &Pending Capital Projects Finance Director Taylor reviewed the material contained in the packet, and explained that the only difference is the yellow highlighted line which shows zero, and said that the only reason she left that in is because Council had already seen it with a number, but that line will eventually be gone. She also briefly reviewed the completed and committed projects and said that list will be updated as well. Mr. Calhoun added that the Balfour Park development should be more accurately labeled `earmarked' and said the park land acquisition of$500,000 is not yet committed but is earmarked and those funds could be redirected to something else if Council determines. He also noted the `future surprises/challenges' is wide open for whatever Council decides; and again stated those figures will be updated and refined. Tab 19: Fiscal Policies City Manager Calhoun noted that these fiscal policies were lifted right out of the budget document from last year; he mentioned that our budget document is unique to other budgets as Council adopts the entire budget document which includes these fiscal policies, adding that our bond rating agency looks favorably at these policies as we make a very definitive statement. After Mr. Calhoun went through the financial management and objectives as listed,he noted that objective#4,highlighted in blue,cannot ever be changed by staff without a Council budget amendment, and said he is not sure that statement is necessary, and Mr. Calhoun invited feedback on that item. It was ultimately decided since it does no damage, it will stay. Tab#20: Council Goals City Manager Calhoun said that the goals listed here are the goals Council adopted for the 2020 budget; he mentioned that as this is scheduled for additional Council discussion at the August 18 meeting, if any Councilmember wants to consider alternate wording,that can be discussed at that August 18 meeting. Mr. Calhoun also noted that in talking previously about revenue estimates and state shared revenues,that when Council sees this again,there will likely be some revenue projection changes. Tab#21: Advance Agenda There were no suggested changes to the Advance Agenda. Tab#22: Business Plan The Business Plan was for information purposes only and was not discussed. It was moved by Deputy Mayor Peetz, seconded and unanimously agreed to adjourn. The meeting adjourned at 2:32 p.m. Lif A T. Ben Wick,Mayor ristine Bainbridge, City Cler Council Special Meeting Workshop:08-04-2020 Page 8 of 8 Approved by Council:08-25-2020 BUD-3 EFFECTS OF PERSONNEL OR WORK PROGRAM CHANGES DUE TO CUTS IN DEPARTMENT SERVICES Department Name Program Fund No. Community&Public Works Street 7 101 Describe the effects on service levels of changes in personnel or work program due to budget cuts The Identified budget reductions outlined will affect several streets program services. The following reductions in service levels will occur. Contracted Street Services: Landscape maintenance,including swales and roadside vegetation service will be decreased by half. Roadside irrigation will be discontinued. Street sweeping services will be decreased by half. Anticipate only 1 full sweep annually. Contracted roadway maintenance,including crack sealing,pothole repairs,and pavement patching,services will be decreased by half. Winter Snow Operations The 2020 Budget for Winter Snow Services was kept minimal as historically it used Emergency Funds to cover. So,there is an overall increase to meet minimum service levels herein. Service operations will be affected as identified. Winter snow operations will no longer include sidewalk snow removal. Very limited residential(full-city)snow removal will be provided. Engineering&Architectural: City's traffic model will not be updated regulary and will impact City's response and comment times for development review and approval. Traffic counts will be kept to the required elements only,which will impact City's response to development. Traffic Signal and Illumination: Traffic Signal maintenance and improvements will be limited to emergency repairs only. Street lighting services will be reduced to only provide illumination at intersections. Corridor illumination will be discontinued. Total Cost of Reduction (Itemize by line-item detail only) Personnel Services BARS Number Budget Reduction I TOTAL $ - Materials and Services 101,042.000.542.30.31.08 Repair&Maintenance Supplies-Street $ (6,500) 101.042.000.542.30.41.10 Contracted Street Maintenance $ (717,108) 101.000,000.542.66,41.12 Winter Snow Services $ - TOTAL $ (723,608) Equipment 101.042.000.542.10.35.01 Small Tools&Minor Equipment-Streets $ (1,000) 101.042.000.594.42.63.03 Traffic Control Improvements $ - 101.042.000.542.64.35.01 Small Tools&Minor Equipment-Traffic $ - 101.000,000.542.66.45.03 Equipment Rental-Snow Operations $ (7,500) I TOTAL $ (8,500) Other 101.042.000.542.10.41.02 Engineering&Architectural $ - 101.042,000.542.63.47.01 Street Lighting $ (185,000) TOTAL $ (185,000) Total Reduction $ (917,108) City of Spokane Valley 8/3/2020 if BUD-3 EFFECTS OF PERSONNEL OR WORK PROGRAM CHANGES DUE TO CUTS IN DEPARTMENT SERVICES Department Name Program Fund No. Community& Public Works Storm 402 Describe the effects on service levels of changes in personnel or work program due to budget cuts The identified budget reductions in the Street Fund #101 will affect several stormwater program services. The following reductions in stormwater utility service levels will occur. Contracted Stormwater Services: Landscape maintenance, including swales and roadside vegetation service will be decreased by half. Roadside irrigation will be discontinued. Street sweeping services will be decreased by half. Anticipate only 1 full sweep annually. Total Cost of Reduction (Itemize by line-item detail only) Budget Reduction Personnel Services BARS Number Over Proposed Budget $ $TOTAL $ Materials and Services 402.402.000.531.36.41.10 Private (Contracted) Street Maintenance $ (453,100) 402.402.000.531.36.47.02 Water & Sprinkler $ (25,000) $ $$ TOTAL $ (478,100) Equipment $ _ $ - $ TOTAL $ Other $ $ TOTAL $ Total Reduction $ (478,100) City of Spokane Valley 8/4/2020 ' t ' /ice,