Loading...
HomeMy WebLinkAbout2010-11-16 Finance and Safety Minutes City of Tukwila y. Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes November 16, 2010 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: De' Sean Quinn, Chair; Allan Ekberg and Dennis Robertson (filling in for Kathy Hougardy) Staff: Shawn Hunstock, Peggy McCarthy, Steve Lancaster and Kimberly Matej Guest: Chuck Parrish CALL TO ORDER: Chair Quinn called the meeting to order at 5:07 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. 2011 -12 Legal Services Contract: Kenyon Disend, PLLC Staff is seeking Council approval to enter into contract with Kenyon Dispend, LLC for legal services to be provided during the 2011 -12 biennium. With the exception of the changes listed below, the essential components of the legal services contract remain the same as in past years. Contract has been reduced by $50,000 per year for basic services No longer guarantees the use of pagers for communication Hourly rate schedule increase per employee of 4 -6% (does not affect overall contract amount) New category added in Exhibit B: Compensation and Method of Payment, Section 2, Item D significant projects which require specialized knowledge A project example of the last bulleted item above is the legal work that was completed on the Shoreline Master Program (SMP). Work related to the SMP was billed as a separate matter; however, Kenyon Disend requested clarification for such projects in the new contract. In regards to Exhibit A: Scope of Services, Item 4, Special Services, Acting Committee Member Robertson requested a copy of all special matters and issues that were attended to by Kenyon Disend as outlined in their invoices submitted to the City during 2009 and 2010. Committee Chair Quinn requested that this same information come forward to Finance Safety so that Committee Members could identify and anticipate future liability. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. B. Legislation: 2011 Property Tax Levy Staff is seeking Council approval of an ordinance increasing the City's Regular Property Tax Levy from the previous year; an ordinance levying the General Taxes and a resolution declaring a finding of substantial need relating to the Property Tax Levy. Shawn Hunstock reported that today the King County Assessor released an update for Tukwila's assessed values which reports an increase in both assessed valuation (now $4,839,390,773) and annexation value from values originally published. This means that the levy rate needed for 2011 has decreased slightly from what is reported in the memo to Committee. The new rate is $2.78 which reflects a 4.51% increase from last year. Finance Safety Committee Minutes November 16, 2010 Page 2 Today's assessed value represents a decrease of 2.9% compared to last year, and staff is recommending levying a full 1% increase to property taxes due to a negative Implicit Price Deflator. In order to levy the full 1 Council will need to pass a resolution declaring a finding of substantial need relating to the property tax levy. A public hearing is scheduled for November 22, 2010. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR PUBLIC HEARING AND DISCUSSION. C. Leeislation Reeardina Budget CIP Staff is seeking Council approval of an ordinance amending the 2010 Budget; an ordinance adopting the 2011 -12 Biennial Budget; and a resolution adopting the 2011 -16 Capital Improvement. Each item is discussed in more detail below. Ordinance Amending the 2010 Budget As required by the Revised Code of Washington, staff is seeking Council approval of an ordinance amending the 2010 Budget. The amendment includes many items that have been discussed and addressed throughout the year. Both the property taxes and business license revenue line items are over budget by slightly more than $400,000 total. This coverage will help fund additional expenses outlined in the budget amendment. The items, explained in detail in the Informational Memo included in the November 22 Finance Safety Committee agenda packet, include: Project deficits in Finance, Legal, Community Development, Court, Fire, and Parks Maintenance Bond Revenue for Southcenter Parkway and Emergency Response Equipment Debt Service on tax exempt bonds issued UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. Ordinance Adopting the 2011 -12 Biennial Budget Staff is seeking Council approval of an ordinance adopting the 2011 -12 Biennial Budget. Shawn Hunstock reported that the City will be adopting two single year budgets rather than one 24 -month budget. This makes the process of adjustments, amendments and forecast much more efficient. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -16 CIP, there was minimal discussion on the draft ordinance which adopts the budget. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. A Resolution Adopting the 2011 -2016 CIP Staff is seeking full Council approval of a resolution adopting the 2011 -2016 CIP. As the City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -2016 CIP, there was minimal discussion on the draft resolution which adopts the 2011 -2016 CIP. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION. D. City Investments As per City policy, staff provided the quarterly update to the Committee regarding City investment reports. Report details begin on page 37 of the Committee agenda packet and demonstrate what the City currently has in its portfolio. Peggy McCarthy also briefed the Committee on an investment policy for the City which was last seen by the Committee on June 22, 2010. At that meeting, staff reported that the City's revised investment policy was submitted to the Washington Municipal Treasurers Association (WMTA) for certification and they were awaiting return of the policy prior to coming forward to Committee for approval. Staff has not yet heard from WMTA and is requesting Committee approve the policy in the meantime in order to begin policy implementation. The draft policy remains the same as it was in June with the exception of Section 11.1: Maturities, which will now call for a minimum of 30% of the of the City's portfolio to be comprised of investments Finance Safety Committee Minutes November 16. 2010 Paae 3 maturing or available within one year. Previously the minimum requirement was 50 This policy essentially increases the flexibility to track funds and how they move, and creates an investment/bond ladder through allowable maturity terms. The Committee made minor wording changes to the policy which clarifies the requirement for items to come before the Finance Safety Committee for approval as compared to making Committee input optional. CITY INVESTMENT REPORT INFORMATION ONLY. INVESTMENT POLICY UNANIMOUS COMMITTEE APPROVAL WITH CHANGES. E. Sales Tax Report Sales tax receipts for August show the largest increase this year in comparison to the previous year. However, cumulative totals to date show the City 30% behind budget and 4% below last years' actuals. There is evidence of slight recovery in certain retails areas, and with mitigation payments, we are currently at 76% of budget sales tax revenue receipts. INFORMATION ONLY. III. MISCELLANEOUS Meeting adjourned at 6:21 p.m. Next meeting: Tuesday, November 16, 2010 5:00 p.m. Conf. Room #3 Committee Chair Approval Minutes by KAM.