2018-06-05 Finance Minutes - Laserfiche WebLink

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City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes June 5, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Bruce Linton, Peggy McCarthy, Henry Hash, Rachel Bianchi, Jay Wittwer, Laura Crandall, Laurel Humphrey, Trish Kinlow CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Public Safety Plan Financing As follow up to the May 22, 2018 Committee meeting, staff provided various financing scenarios for the Public Safety Plan including Whitebirch modeling against the six-year financial forecast. Staff also provided preliminary information on 1st quarter sales tax, which at this time appears to be equivalent to 1st quarter 2017. The Committee was asked to recommend a preferred financing scenario to be presented to the full Council at its June 11, 2018 Work Session with a goal of final action on June 18, 2018. Staff's recommendation is "Option E" with LTGO financing over 30 years, as shown below: This scenario includes construction of all facilities within the current timeline, dedicates $30M to shops, and implements a State financing tool that allows cities to finance large apparatus over 10 years. Staff believes that this scenario provides the greatest flexibility for the general fund. Councilmember Robertson spoke to his concerns about the sales tax, as the financial analysis of all scenarios assumes a small annual increase and there is no indication this will occur. He looked at two additional scenarios with a 0% increase and a 1.5% increase and is concerned about the impacts to the fund balance. LTGO Repayment Method Option FS 51 FS 52 FS 54 A&E JC — PW LTGO Bond Range of Annual Cash Contribution Capacity from maturing debt Total GF Cont. Total Debt Service — E-30 $12M $17M $14M $15M $68M $30M $55M $283K in 2017 $830K $2M per yr $51.9M $70.6M This scenario includes construction of all facilities within the current timeline, dedicates $30M to shops, and implements a State financing tool that allows cities to finance large apparatus over 10 years. Staff believes that this scenario provides the greatest flexibility for the general fund. Councilmember Robertson spoke to his concerns about the sales tax, as the financial analysis of all scenarios assumes a small annual increase and there is no indication this will occur. He looked at two additional scenarios with a 0% increase and a 1.5% increase and is concerned about the impacts to the fund balance.