TO: Mayor and City Council
FROM: Steve Powers, City Manager
SUBJECT:
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Confirm Direction from the January 16, 2018 City Council Policy Agenda Work Session and Next Steps
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
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ISSUE:
Shall the City Council confirm their direction from the January 16, 2018 City Council Policy Agenda and Work Session and next steps.
RECOMMENDATION:
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Confirm direction from the January 16, 2018 City Council Policy Agenda Work Session and next steps.
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SUMMARY AND BACKGROUND:
The Salem Strategic Plan, adopted by City Council on October 23, 2017, articulates the mission, vision, values and goals of the City (Attachment 1). The Strategic Plan charts a three to five year course for the City and represents the culmination of extensive community input on issues, followed by discussion and vetting by issue work groups of actions that would advance the policy issues.
The Strategic Plan is foundational to the Salem City government in four primary areas. The Strategic Plan:
1. Articulates the mission vision and values for the organization,
2. Defines expectations of the Council and community for the primary services the City should provide,
3. Establishes policy priorities for the next three to five years,
4. Sets the framework for Council’s annual policy direction through the City Council Policy Agenda.
FACTS AND FINDINGS:
Council and Community Expectations: Mission, Vision, Values
The mission, vision and values articulate what is expected of the organization in the future, the purpose of the organization and the services it provides, and how the services will be provided. The mission, vision and values also provide a basis through which the community and Council can review a proposed new (or change in existing) program or service. For our purposes, the lenses through which we evaluate proposals will likely be:
• How is this proposal, program or service responsive to a community need (at your service)? Is this building capacity and partnerships to help us prepare for the future?
• How is this proactive and forward thinking?
• How will this proposal, program or service enrich the lives of present and future residents?
• How is this proposal, program or service promoting our values of being fair, equitable and safe?
• How does this further the City’s values of being open and inclusive?
The 2018 Policy Agenda
On January 16, 2018, the City Council discussed its 2018 Policy Agenda. The Policy Agenda will provide guidance to the Department Directors and City Manager in the preparation of the annual budget. Through an annual City Council Policy Agenda, City Council will make its initial priorities for action clear to staff and the community, and provide direction on aligning resources towards the policy areas in the Salem Strategic Plan.
The 2018 Policy Agenda is part of an annual cycle of policy and program evaluation, financial forecasting, and reporting to City Council and the community (Attachment 2).
To assist City Council in their discussion of policy priorities for the 2018 Policy Agenda, staff prepared presentations and progress reports. Staff presented ideas and received positive feedback from Council for actions to implement Strategic Plan priorities and include in next year’s budget, including:
• Sustainable Services: Core services and desired level of service through Priority Based Budgeting
• Vision for Growth and Development: Updated approach and timeline
• Environmental Action: Greenhouse gas inventory
• Economic Development & Downtown: High speed internet downtown, market feasibility
• Affordable Housing, Homelessness and Social Services: Sobering center
• Open Fire Station 11
• Add capacity for Neighborhood Association support
Several other questions were raised about other Strategic Plan actions, planned for discussion at Work Sessions in 2018, as shown in the attached schedule (Attachment 3). Staff will be returning with options for revenue strategies in the summer. Also this summer, staff plan to return with more information on the assessment management and general obligation bonding strategy.
Staff were also asked to return with more information on the Child Friendly initiative and another proposed Strategic Plan action to “increase the use of grants to seismically retrofit downtown buildings.”
Next Steps
Child Friendly. At the January 16, 2018 Work Session, staff provided an information report on existing policies, planning, programs and activities in which the City engages directly with children. To do more, a shift in responsibilities of existing staff from current priorities would be required, reducing available time and resources for other initiatives. With the shift to reporting budget and progress by outcomes or Service Areas and through the Priority Based Budgeting exercise, emphasis may be placed on those programs and services that directly benefit future generations.
Seismic Improvements for Downtown Buildings. With regard to offering incentives to downtown property owners for seismic retrofits, through its Urban Renewal Agency grant program, building owners may apply for grants to make seismic improvements and adapt older buildings for their re-use (Attachment 4). In the West Salem, North Gateway and Riverfront Downtown Urban Renewal Area there are grant programs to assist commercial, industrial and mixed-use buildings to construct and renovate buildings.
All of the grant programs are different based on the needs of a particular URA, but universally support eligible capital project costs that address building code violations, which could include seismic upgrades. Since 2004, Riverfront-Downtown Urban Renewal Area funds have partially funded seismic improvements in several formerly vacant large downtown historic buildings.
In addition, if the end use is intended to be multi-family, Salem offers a Multiple Unit Housing Tax Incentive Program. This up to 10-year tax exemption is available for new or converted housing units within the boundary for the program, which includes the Historic Downtown and is slightly larger than the Riverfront Downtown Urban Renewal Area.
In the 2017 Oregon Legislative Session, a new law was put into place that authorizes a city or county to adopt an ordinance or resolution to provide for a full or partial property tax exemption for eligible property that will undergo structural seismic retrofitting.
“Eligible property” means improvements built before January 1, 1993, that constitute a commercial, industrial, or multifamily building that is not centrally assessed or state-assessed industrial property. The exemption period may be a maximum of 15 years. The new law provides numerous safeguards and limitations. Staff will return in the spring with more analysis of what would be involved for the City to implement and administer tax abatements under Chapter 537 of Oregon Revised Statues.).
Priority Based Budgeting. For the February 12, 2018 City Council meeting, a transfer resolution will be recommended to Council to begin Priority-Based Budgeting in May 2018. In addition, an update on Service Areas will be included.
2018 Policy Agenda. For the February 26, 2018 meeting, staff will return with a final draft of the 2018 City Council Policy Agenda for Council’s approval. In April, the Budget Committee will begin meeting to discuss the FY 2018-19 Budget.
Attachments:
1. 2017 Strategic Plan in brief.
2. City Council Policy Agenda Budget Development and Operations
3. Draft 2018 Work Session Schedule
4. Capital Improvement Grant Program for the Riverfront Downtown URA