HomeMy WebLinkAbout2019-07-08 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
July 8, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Chair; De'Sean Quinn, Kathy Hougardy
Staff: Juan Padilla, Henry Hash, Jack Pace, Jeff Friend, Han Kirkland, Rachel Bianchi,
Erika Eddins, Vicky Carlsen, Aaron Williams, Gail Labanara, Jay Wittwer
CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. 2019 1st Quarter Sales Tax & Miscellaneous Revenue Report
Staff presented the 2019 1st Quarter Sales Tax and Miscellaneous Revenue Report, including
details on retail sales tax, gambling tax, and admissions tax revenues with sales tax broken out
by industry classifications. Sales tax collections increased $50,800 over the same period last
year. Retail Trade categories are underperforming, and the snowstorm, government shutdown,
and tax law revision each may have had a negative impact on consumer spending. Additional
revenues in the Motor Vehicle and Parts Dealer category helped to offset this. Construction sales
tax is almost $71K less compared with the same period last year, attributable to the snowstorms.
Building permit activity indicates that the value issued to date is nearly 80% of the total value of
permits during 2018 and already exceeds the value issued in 2017. Committee members
discussed the information. The City will receive sales tax from future electric bus sales, but staff
cautioned against considering it an ongoing revenue. Councilmember Kruller asked for
breakouts for individual casinos by year. Councilmember Robertson asked for information on
the status of the film industry overall. Chair McLeod asked if Westfield Southcenter also
attributes retail decline to the tax revisions and government shutdown. DISCUSSION ONLY.
B. Fire Department Budget
Staff provided an overview of Fire Departmental budget issues discussed to date, including
staffing and shifts, Kelly days, pipeline positions, vacation and other leaves, overtime, budget
process, and mutual aid. The City does not budget for pipeline positions or known retirements.
Councilmembers asked clarifying questions about the memo. Chair McLeod stated that he would
like the Committee to review some different service models, factoring in things such as aid car
and staffing. He wants to understand the basic required level of service, the cost of adding layers
on top, and sources of revenue. He also inquired about situations where Fire provides service at
a special event such as those at Starfire. He was told that the work is charged as overtime to the
Department but the fees paid for that service go into the General Fund. Staff replied that during
the budget process, all known/estimated reimbursable overtime is budgeted as a cost and the
Finance Committee Minutes July 8, 2019
offsetting revenue is also budgeted for the same amount. Staff is looking further to ensure that
all reimbursable overtime is billed out. Councilmember Robertson asked if the cost of
suppression has increased over time on pace with the cost of living. He requested information
showing the cost of suppression per year, including labor but not equipment, facilities or special
events. DISCUSSION ONLY.
C. Intergovernmental Purchasing Agreement with the University of Washington
Staff is seeking Council approval of an Intergovernmental Cooperative Purchasing Agreement
with the University of Washington, which would allow the City to purchase Steelcase Products
from OpenSquare at the governmental rate provided to the UW for use in the Justice Center. This
is allowed by state law and would avoid the delays associated with a bid process.
Councilmember Kruller asked if this method would save the City money. Staff stated that this
option gives users the functionality that is needed and that this is within the revised budget for
FF&E, although a direct comparison hasn't been analyzed. Steelcase was the top choice for the
user groups. Councilmember Robertson asked for the rough dollar value of the purchase. Staff
will include the interior design budget and feedback from the project designers for Council
consideration at the next meeting. UNANIMOUS APPROVAL WITH ADDITIONAL INFORMATION.
FORWARD TO JULY 15, 2019 REGULAR MEETING.
III. MISCELLANEOUS
Adjourned at 6:47 p.m.
Committee Chair Approval
mutes by LH