State of the City
A while back the Mayor said to me, “Look toward the horizon, but keep your hand on the plow.” The City Council looks to the horizon (sets policy) and the City Manager keeps their hands on the plow (implements policy.) Today I will highlight the health of the City, current projects, and future challenges.
A year ago the Council brought in a new City Manager who oversees eight departments;
1. Newberg- Dundee Police Department
• 35 sworn police officers and 10 Communications Officers.
• Responsible for the protection of property and safety for over 25,000 citizens.
• Approximately 40,000 motorists on daily average.
• Over 5,000 students enrolled in the Newberg School District.
• Approximately 3,500 students enrolled at George Fox University.
• Computer Forensics
• Person/Property/Narcotics Detectives
• School Resource Officer
• Traffic Safety Division
• K-9 units
• Big on community outreach
• We are a 9-1-1- Communications (dispatch point) for emergency communications on police, fire and medical. Dispatch 24/7
2. Newberg Fire and EMS
• 26.76 FF/PP. The staff is provided through a combination model that utilizes both career and volunteer personnel.
• Operates through four major divisions – Administration, Suppression, Prevention, and Emergency Medical Services.
• No increase in staffing since 2006 yet there is a 33% increase in call volume during the same time.
• Retaining employees continues to be an issue. Turnover volume is high because of geographically where Newberg is located and we cannot compete with metro compensation packages.
• Apparatus replacement needs- 2 medic units and a ladder truck.
• Newberg Volunteer Firefighters Association is a civic organization made up of member of the NFD. We have a strong volunteer program with recruitment of 10 volunteers and an additional 12 so far in 2015.
• Very involved with the “Toy & Joy” program that delivers Christmas presents at to over 900 less fortunate children in our community.
3. Community Development Department
• 6.8 FTE
• Planning Division -Current planning (new buildings and subdivisions), long range planning, economic development and we also contract plan with Dundee.
• The Building Inspection Division provides services for plan review, permit issuance and inspections for residential, commercial and industrial development. We also provide these per a contract with Dundee, Dayton, and Lafayette.
• Engaged in business retention, expansion and recruitment activities as well as administers the Enterprise Zone and Economic Development Revolving Loan Fund. ($200k available).
4. Finance Department
• 6.5 FT
• Finance Department is responsible for the accounting and financial oversight of the City’s resources. Payroll, payables, budgets, auditing and financial reporting.
• This department also oversees Utility Billing (invoicing, collections, and customer service for 6,400 residential, commercial and industrial accounts.)
5. Public Works Department
• The Public Works Director manages the Engineering Services, and the Public Work Operations and Maintenance Departments.
• Approximately 44 FTE
• We have a water system, wastewater system, transportation system, and stormwater system.
• Engineering Department plans improvements to the City of Newberg infrastructure using the system master plans, and manages design and construction of system improvements.
6. City Manager’s Office
• City Recorder and Human Resources
• The City manager is the chief administrative officer, which includes budget officer for the city and oversees the city’s daily business and helps translate the policy directives from the City Council into action. Provides support for the Mayor and Council.
• The City Recorder is the clerk for the Council, the Elections officer, the City’s Records Manager and coordinates general public records requests.
• Human Resources administers the employee’s compensation system, benefits program and worker’s compensation program.
7. IT
• 5.5 FTE
• Supports the city-wide area network, office applications, hardware, including e-mail system, data backup, website, and 9-1-1 center.
• Provides computer network, and telephone support for all departments and divisions.
8. Library
• 12 FTE
• Provides circulation services, children’s services, adult and teen services, administration services.
• Offers traditional services of checking out books, adding downloadable e-books, DVDs, and audio books.
• Provides technology; internet and Wi-Fi as well as PCs and IPads/tablets.
• Provides sense of community; a place for people to gather together or to individually find shelter, a place that is safe, inclusive and inspirational as well as reaching out into the community with programs such as delivery of books to child care centers, youth centers, and senior centers.
Structure and accountability is my focus. My first priority was to assess personnel in management positions and make necessary changes. I am very pleased with our new Public Works Director, Finance Director, Community Development Director, City Engineer, and City Recorder. With these additions we have a combination of fresh perspectives with seasoned personnel that make up our very competent management team.
My second priority was to assist our Finance Director in creating a simplified balanced budget document. This year the City’s budget process received a makeover, culminating in the 2015-16 adopted budget by City Council at the June 1st meeting.
This year’s budget represents a fiscally conservative approach to balancing resources with essential services the City provides. The total adopted budget is $88,164,730, which is an 8% reduction from the prior fiscal year. The decrease is contributed to less capital projects and increases in increases in interfund transfers. The primary fund of the City is the General Fund. For the first time in eight years, the adopted budget does not plan to draw from the reserves.
This year we have proposed funding for projects that we believe we can reasonably accomplish. The City is limited on its collection value of property taxes due to Measure 5. Further, we are diligent to assure that the City is capturing all revenue we are entitled to through improved communications with Yamhill County so we can sustain service levels. The budget assumes a 4% growth rate in the assessed value, which is based on recent trends and allows for new development (which I will touch on in a minute).
Transient Lodging Tax increase is due to a combination of a tax rate increase to 9% and an increase in sales revenue. These funds will be accounted for in a newly-created Transient Lodging Tax fund. Approximately 35% of total lodging tax revenue is required to be spent on tourism-related activities, although not necessarily in the same year the taxes are received. The remainder will be transferred to the General Fund to support city services. A portion of the 35% ($130k annually) goes to the Chehalem Valley Chamber of Commerce to provide marketing services. The City is in the process of researching the establishment of a Tourism Advisory Committee to administer distribution of the remaining 35%. It should be in place the first of 2016.
The City just completed refinancing current debt of the City. The debt consist of six total loans. Five were used for water and wastewater infrastructure improvements and the other was a certificate of participation used to finance the reconstruction of City Hall in 1999. Interest rates are at a historic low and the City was able to secure a 2.25 rate which means the present value benefit is $894,586 of which most will go back to public works enterprise funds.
Employees are our biggest asset and they are one of my priorities this year. Personnel services expenditures comprise 60% or 9.06 million of the General Fund and include payroll and related benefits. Not included are fiscal implications from current collective bargaining negotiations with the police Association or the wage opener with the Fire Department Association. For the first time in several years wage-step increases have been unfrozen for employees eligible to receive them. Because wages have been unadjustable due to previous budget constraints the current wage system needs to be evaluated. This is to ensure that they are being compensated fairly and equitably to other organizations similar in size that provide the same level of services. Employee retention is a problem and administration will conduct and make determinations on a city-wide strategic assessment of our compensation plan in the new fiscal year.
A reserve policy promotes sound financial management and assists in the City’s stability, efficiency and effectiveness to accomplish the goals and objectives set forth in the organization. Reserves are established to address immediate and dramatic difficulties as well as to cover operational costs for a period of time until property tax revenues are collected in November of each year. Having an appropriate level of working capital is a critical element in establishing good fiscal health. The Council will be reviewing its Reserve policy this year to assure an appropriate and sensible reserve level.
Finally, on the budget, it sets the foundation for preparing a 3-5 year long range plan so that the City is “forward thinking” about the options of today and what those mean for the future as our local government strives to match the services offered to our revenue realities. In order to assure that we are aligning our resources to community priorities the Council is in the development phases of a strategic plan that creates the basis for future funding decisions. This will enhance the Council’s policy-making ability by providing accurate information on program and operating costs.
The financial integrity of our government is of supreme importance as it is accountable to its citizens for the use of public dollars. Resources should be used widely to ensure adequate funding for the services, public facilities and infrastructure necessary to meet the community’s present and future needs. It is also important for citizens to be reminded that our revenue sources are tied to specific expenditures and can only be used for their prescribed purpose.
Current City Projects
1) TGM Newberg Historic Downtown Plan Grant- the City received $260,000 from the Oregon Department of Transportation (ODOT) to develop a detailed plan that will guide the revitalization of historic downtown Newberg. The Plan will reimaging the land uses and streetscapes within the study area so Newberg downtown will be able to reach its full potential after the quality and quantity of downtown traffic is changed as a result of the opening of the Phase I Newberg Dundee Bypass.
The study area is generally bordered by Chehalem Creek to the west, Franklin Street to the north, Hess Creek to the east and 5th Street to the south. It is bisected by two heavily traveled state highways: 99W (east to west) and 219 (north and south).
City will be identifying stakeholders and appointing members to an advisory committee that will assist the consultants, City, and the Newberg Downtown Coalition in the process for the next 15 months.
2) Historic Preservation Grant.
In conjunction with the TGM Grant the City also received a $13,000 Certified Local Government Grant from the Oregon State Historic Preservation Office for historic preservation work. The City’s historic Preservation Committee and staff will complete Reconnaissance Level Survey of approximately 50 properties in the downtown and will also complete an Intensive level Survey on four properties in the downtown based on the RLS results. They will also develop a digital brochure about the downtown properties and connect it to the City’s existing audio tour. They will develop and present a walking tour and public presentation for local community groups. Prepare a report on the potential for a downtown National Register District and steps to achieve it.
The good news is that we found out that the State Historic Preservation Office already did a Reconnaissance Level Survey for downtown Newberg in 2013 so we will not need to redo what they did. We then have an opportunity to shift more consultant funds to the Intensive Level Survey and public promotion assistance.
3) Transportation System Plan-
The existing TSP plan was updated in 2005. This project will result in a new updated plan for the City, along with implementing land use ordinances and a funding plan. The TSP update will comply with new and/ or amended federal, state and local plans, policies and regulations that will take us to 2035. It will test the traffic impact of potential street changes in downtown.
As you can see with the three projects I just mentioned there will be a heavier emphasis on the downtown area of Newberg for the next couple years.
4) Capital Improvement Plan.
As a handout today you have a copy of the City’s Capital Improvement Plan for Fiscal year 2015-16. The CIP is the Engineering Services’ Department’s implementation plan for identified transportation, storm drainage, water, and wastewater projects. The capital infrastructure needs within the CIP are identified through a variety of sources, including Master Plans. Other sources used to identify capital projects are: City Council goals, operational needs and regulatory obligations.
Use first two pages of the CIP and highlight projects.
➢ Wastewater Treatment Plant Expansion:
o Significant repairs, renovations and expansions to remain compliant with DEQ discharge permit.
o A six year, $50 million dollar upgrade project
o Current upgrade projects include influent pump station and screw presses.
o Upcoming projects are expanded chlorination facilities, compost storage and septage receiving.
o Current $15 million dollar phase is projected to come in roughly 4380K under budget which is phenomenal.
5) Current Planning Projects
• Martell Commons (off of Villa Street) – 5.94 acre comp plan zone change from low residential density to high residential. Planning Commission recommended approval on June 11h and it will not go before Council on July 6th. The applicant is proposing an apartment complex however if the comp plan zone change is approved by Council the applicant would need to go through design review.
• Design Review Projects
✓ Issued a permit for George Fox College for construction of a new cafeteria style service area for 900 students. It will include a kitchen, café, a service plaza, loading dock area, outdoor plaza, and sidewalk and parking lot improvements. The proposed development is located on the east side of Hess Creek, and will be connected to the central campus via a new foot bridge spanning Hess Creek.
✓ Old Mill Market Place was issued a permit for the new development at Elliott and Hwy 99. The development includes 3 multi-tenant buildings with mixed use retail and professional office space on 1.9 acres. Proposed to start construction this summer.
✓ Issued a permit for the new Taste of 808 restaurant at the corner of Villa and Hwy 99.
✓ Fred Meyer Gas station was issued a permit to expand its fueling pumps from 14 to 18 and to change its hours of operation from 7 am- 11 pm to 5 am – 11 am.
✓ Verizon submitted a design review and variance to setback standards application to construct a 70 ft. cell tower at 2401 Hancock.
✓ CalPortland submitted a land use application to construct a ready mix concrete batch plant at 2808 NE Wynooski Road. This is property that the City just completed a real estate land exchange with CalPortland. The application includes curb and sidewalk improvements, small parking lot improvements, gravel yard area, material storage and a concrete ready mix batch plant.
• Subdivisions/Partitions
✓ Highlands at Hess Creek phases 4 and 5. The property owner submitted an application to subdivide a 4.94 acre parcel of land into 27 lots for single-family homes. The Planning Commission will review the application at their June 25th meeting. If successful the applicant would create 27 lots for single-family homes, in two phases. The subdivision will extend Kennedy Drive and Corrine Drive to create a loop.
• Current comp plan changes
✓ Temporary and portable sign code changes has been vetted through the planning process and will go to Council in late August. We are waiting for information from ODOT in relations to putting temporary signs in their right of way.
✓ Medical Marijuana Dispensaries. The City Council approved an ordinance amending the development Code to allow medical marijuana dispensaries in the C-2 and C3-3 commercial zones, does not allow them in other zoning districts, established a 1000 foot buffer around schools and parks where dispensaries would not be allowed, and limiting the hours of operation to 9 am– 8 pm.
Currently there are two active applications; one at 1013 N. Springbrook Rd (next to Jack in the Box) and one at 2316 Portland Road.
• Sign Permits
✓ Ruddick Wood
✓ Bella Casa Real Estate
✓ Crush 2 Cellars
✓ Owen eye Care
✓ Taste 808
• Under Construction
✓ George Fox College Dormitory
✓ Springbrook Ridge Apartments (Fernwood and Springbrook).
✓ Terra Estates Subdivision located at 3805 Terrace Drive.
• Pre-applications- projects coming up for consideration
✓ Habitat for Humanity continues to work on their plans for the Restore on Meridian. The pre-application meeting is causing them to make some modifications to their development concept.
✓ Del Boca Vista is working on a subdivision proposal for a residential subdivision at the SE corner of College St and Quail Drive.
✓ The Community Department had a second pre-app meeting on the Firendsview Retirement Community expansion on Cherry Street north of not Fulton.
✓ A pre-application meeting is scheduled for a residential project (number of lots not determined yet) with the Lockwood’s off of College Street (3509) north of Foothills Drive.
✓ Wilco continues to work on their design review packet for a shed roof expansion to store hay.
✓ Crestview Crossing- Gramor development is currently working on wetland mitigation and are proposing to submit an application to the City within a few months.
✓ Newberg High School Boosters are working on their design review package for a new indoor batting facility for baseball and softball.
✓ An exciting pilot project coming to a work session for Council in July is the idea of a Parklet. Ruddick-Wood wants to do a Parklet, or “street seating” on Edwards Street. Community development and Engineering are working on a program that would allow use of the public right-of-way parking spaces.
Future Challenges for the City
a) PERS In April the Supreme Court PERS ruling invalidated the COLA PERS reforms to retiree benefits earned before the effective date of the act. This will negatively impact PERS contribution rates when they are set for the next two year cycle of 2017-18. We are not sure what the fiscal impact will be however the Finance Director and I will set up a reserve account in the 2016-17 year as we are committed to finding responsible and workable solutions that provide public employees with the benefits they deserve without financially compromising a city’s ability to fund critical services.
b) Streets. As mentioned earlier, street funding continues to be an issue in Newberg and statewide. Our primary source for the roadway maintenance budget is the City’s share of the state gas tax revenue which is underfunded primarily to the public’s response to increased fuel prices, higher mile per gallon vehicles, and only moderate economic growth. A secondary funding source is federal funding distributed by ODOT through the Surface Transportation Program (STP) and can only be used for new roadway construction or full reconstruction of existing roadways, not maintenance projects.
In May of 2014 the Council received a presentation of the Pavement Condition Evaluation & Street Maintenance Prioritization Plan. The City has 65.5 miles of paved streets. The average pavement condition is 73, which means our streets are barely in the category of “good”.
To completely eliminate the backlog of maintenance on our streets in 7 years is would take $2.85 million per year.
We could maintain the current budget of $150,000 per year, which means streets conditions would continue to decline at a rapid rate.
We could maintain the current condition of the streets for 1.87 million per year.
Finding sustainable revenue for our streets is a priority for the Public Works Director this year. Possible funding options will include bond measures, gas tax, utility fees and street user fees.
c) Urban Growth Expansion
The gift that keeps giving. The City of Newberg has worked closely with the Department of Land Conservation and Development over the past several years to craft an updated Economic Opportunities Analysis (EOA) and a corresponding industrial urban growth boundary amendment (UGB) to mitigate the city’s deficit on industrial land.
(EOA: is a method to evaluate and analyze industrial and other land needs for a 20 year planning period with urban growth boundaries. The supply of land is for industrial and employment uses in the community).
DLCD staff referred our application to the Land Conservation and Development Commission for their review and it was recommended that our application be remanded on 12 points. Newberg believes the recommended remand of our EOA and industrial UGB amendment is at odds with the city’s research, adopted documents, and begins to set an impossibly high bar for local governments to meet.
Our choices were to (1) enter mediation with objectors (primarily 1000 Friends of Oregon/Friends of Yamhill County), (2) accept LCDC remand order, (3) appeal LCDC’s decision to the Court of Appeals, (4) withdraw our application and re-strategize.
The City Council directed staff to enter into mediation with DLCD and the objectors. We participated in two sessions. There was some progress made during and between sessions however consensus had ultimately not been reached. We agreed on acreage but not on the location of an industrial UGB amendment or on certain aspects of the EOA. Therefore we decided to recommend withdrawal from mediation and withdrawal of our application. Council concurred.
We have a new Community Development Director and together he and I will re-strategize by taking a fresh look at the data and updating our buildable lands inventory and re-evaluating the economic opportunities analysis so that when we submit a new UGB expansion application we are assured to have a diversified variety of residential, commercial, and industrial lands available to foster and encourage economic development in the community.
The City has put many hours and dollars into this process and it’s important to preserve the work that has been done. Staff remains committed to striving to meet Newberg’s mission and vision statements of creating a healthy community where citizens can work, play and grow. We believe that goal may be better served at this time by stepping back from the legal process we have become immersed in, reviewing our options, and proceeding in a strategic manner.
D) Sustaining general fund services; police, fire, library, communications and digital communications interoperability.
Fire: There is a 33% increase in call volume since 2006 with no increase in staffing (primarily motor vehicle crashed and fire responses.) We need to replace 2 medic units due to increase call volume have caused a rapid increase in miles on the currently staffed ambulances. Replacement will provide both reliable first-line ambulances and back-up ambulances.
The current ladder truck is 15 years old and is no longer supported by its manufacturer. Because of this parts have to be custom made and specialized companies have to be relied upon for necessary repairs.
Police: Maintaining a safe and fully equipped fleet of patrol vehicles continues to be a principal budget issue. Due to budget reductions in previous years the police department has leased and purchased used patrol cars in an effort to maximize available funds. Other areas of the police budget that could use enhancements as the City’s financial situation recovers includes the training budget, portable radios, ballistic vests and defensive tactic equipment.
Police Department remains focused on racial and anti-law enforcement movements, legalization of marijuana, Terrorist threats and Lone Wolf Attacks (someone who commits violent acts in support of some group, movement, or ideology, but who does so alone, outside of any command structure and without material assistance from any group.)
Newberg shares combined Communications System (Radios) is on the Washington County Consolidated Communications Agency’s (WCCCA) repeater site. The Cities of Newberg and Dundee joined the system in 2009 to take advantage of the coverage in their areas as well as the overall reliability and services.
The state is mandating that the system move from analog to digital by 2019. This means that the Newberg 9-1-1 radio system and dispatch consoles will be replaced, as well as police and fire radios (to an 800 MHZ). This is an unfunded mandate that potential will cost between $5 and $7 million. This next year we will also be exploring funding options.
Library: The budget does reflect increasing the book and materials line item back to ($84,000). This puts it back to 2008-09 levels with the last seven years it having a continued decrease with the last two years under $40,000, the lowest book and library materials budget since 1987-88. This is the highest priority to improve library service. While Newberg’s open hours, at 37 per week are some of the fewest of any library in the state, if there not books and other library materials on the shelves, increased hours are only of limited value.
Closing: Newberg is a thriving community that boasts a high quality of life, good jobs, parks, schools and other institutions, and a strong sense of community. Newberg is also growing and in order to keep Newberg a community where citizens can “live here, work here, and shop here” we must make strong efforts to retain and attract businesses that can employ our citizens and bring new resources to the community.