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HomeMy WebLinkAbout2009-08-18 Finance and Safety Minutes City of Tukwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes August 18, 2009 5: 00 p. m.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Mary Miotke, Gail Labanara, Jim Haggerton, Rhonda Berry and Kimberly Matej Guests: Jeremy Eide CALL TO ORDER: Chair Linder called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Citv -Wide Ouarterly Budget Update In order to increase transparency as well as Council knowledge of the ongoing status of the budget, Finance Director Shawn Hunstuck will begin to give City -wide quarterly budget updates. Shawn gave a brief overview of the status of various funds throughout the City, noting that the agenda packet information is a very useful tool in providing an overview of the current state of funds. Overall, revenue is down, and so are expenditures; therefore, there is no immediate concern in terms of cash flow. Shawn inquired about the best way to communicate this information to Council. Committee members felt it is most appropriate to continue providing this information to the Finance Safety Committee first, and then under separate cover for the remaining Councilmembers. INFORMATION ONLY. B. Sales Tax Report Shawn reviewed sales tax receipts through the month of May. Through May, the City is 24.88% below budget for the year, and 22.77% below the prior year's receipts for the same time period. If these differences continue at this rate, the City may be looking at further reductions beyond the 3% reductions the City has already implemented. INFORMATION ONLY. C. 2008 CAFR Update Shawn distributed copies of the 2008 Comprehensive Annual Financial Report (CAFR) to each Committee member. He reported that there were no audit findings for 2008, which is great news for the City. He pointed out information presented on page 72, Annual OPEB Cost and Net OPEB Obligation, which the City has not been required to disclose previously. Remaining Councilmembers will receive copies of the CAFR. INFORMATION ONLY. D. SCORE Interlocal Agreement Amendments Staff is seeking full Council approval of an ordinance amending the current SCORE Interlocal Agreement replacing the City of Des Moines' designation as an owner city with that of a host jurisdiction. On January 20, 2009, the City Council adopted an ordinance authorizing the execution of an interlocal agreement which established the structure of the South Correctional Entity Facility (SCORE) and allocated debt service to each of seven owner cities. Recently, one of the owner cities' bond rating was downgraded. This rating could have a negative effect on the debt service obligation of SCORE resulting in a substantial increase in debt service over the life of the bonds. Based on this information, the SCORE Interlocal Agreement has been amended to remove the Finance Safety Committee Minutes Auaust 18. 2009 Paae 2 City of Des Moines as an owner city, and instead designate the entity as a host jurisdiction. The host jurisdiction designation will entitle Des Moines to the same rights as the owner cities; however, they will be removed from their obligation of debt service. The City of Des Moines will enter a separate agreement with the cities of Auburn, Federal Way and Renton for their portion of the debt service. This amendment does not change the City of Tukwila's rights or obligations under the original interlocal agreement. UNANIMOUS APPROVAL. FORWARD TO AUGUST 24 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5:55 p.m. Next meeting: Wednesday, September 9, 2009 5:00 p.m. Conference Room #3 �S Z— Committee Chair Approval Minutes by KAM.