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HomeMy WebLinkAbout2015-07-21 Finance and Safety MinutesCity of Tukwila • Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes July 21, 2015 — 5:30 p.m.; Hazelnut Conference Room PRESENT Councilmembers: Kathy Hougardy, Chair; De'Sean Quinn, Dennis Robertson (Absent: Joe Duffie) Staff: David Cline, Mike Villa, Bruce Linton, Peggy McCarthy, Bob Giberson, Gail Labanara, Rachel Bianchi, Jack Pace, Vicky Carlsen, Moira Bradshaw, Laurel Humphrey Guest: Gail Chase CALL TO ORDER: Chair Hougardy called the meeting to order at 5:30 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA Chair Hougardy announced that item 2a relating to arena project contracts would be held until August 18. There was consensus to amend the agenda to receive the 2015 2nd Quarter Police Department Report as the first item of business, and to hear public comment from Gail Chase, owner of ABC Towing, as the second item of business. A. 2015 2nd Quarter Police Department Report Assistant Chief Linton shared a presentation that updated the Committee on Police Department items of significance that occurred during the 2nd quarter of 2015. The information included a staffing update, 1St quarter highlights, and crime statistics. A map showing locations of residential burglaries was distributed. Councilmember Quinn suggested the Police Department work with Teens for Tukwila on youth engagement opportunities. INFORMATION ONLY. Update from ABC Towing Gail Chase from ABC Towing again addressed the Committee about her wish to contract with the City for towing services. The Committee noted that the City's towing contract is under the purview of the Police Department and the decision is made based upon cost savings and level of service. PUBLIC COMMENT. B. Ordinance: Amending the 2015 -2016 Biennial Budget Staff is seeking Council approval of an ordinance to amend the 2015 -2016 Biennial Budget. In the past, budget amendments were done once in the fall, but for 2015, an additional amendment ordinance has been prepared in order to capture the following: • Items known at the time the budget was published but not included due to time constraints; • Carryovers from 2014, other than capital projects • Other initiatives supported by Administration or Council • Items that are revenue backed with no effect on fund balance. Finance & Safety Committee Minutes July 21, 2015 - Pape 2 Committee members asked clarifying questions about the information outlined in the memo and its attachments. For those items involving an increase or reduction in the beginning fund balance, the Committee requested that the memo be edited to include additional explanation. A public hearing is scheduled for July 27, 2015. UNANIMOUS APPROVAL. FORWARD TO JULY 27, 2015 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING. C. Resolution: Adopting a Financial Reserve Policy Staff is seeking Council approval of a resolution that would revise the City's Financial Reserve Policy in three specific areas, described below: 1. Change the General Fund minimum balance from 10% to 18 %. The Committee reviewed and approved this proposal at its July 7, 2015 meeting and had no further comment. 2. Establish a One -time Revenue Reserve based on 10% of one -time revenues. This item was previously discussed at the July 7, 2015 meeting and the Committee made no recommendation pending additional information. Since then, the name of the proposed reserve has been changed from "Special Project Reserve" to "One -time Revenue Reserve." This reserve is based upon 10% of the prior year one -time revenues and will be stored in the contingency fund. In addition, there is a new provision that the reserve would be credited only if the General Fund surplus is sufficient to cover the reserve funding. As before, use of this reserve could occur only by Council resolution. Staff noted that although this reserve is proposed to be kept in the contingency fund, the accounting system is such that it will be easily identifiable as separate. Following discussion, committee members supported the proposed One -Time Revenue Reserve but requested that the full Council engage in a policy discussion regarding the parameters for spending these funds. It is expected that this discussion will occur at the July 27, 2015 Committee of the Whole. 3. Change the self - insured healthcare reserve minimums from 2.5 times the IBNR (incurred but not reported) to 1.5 times. The Committee reviewed and approved this proposal at its July 7, 2015 meeting and had no further comment. UNANIMOUS APPROVAL. FORWARD TO JULY 27, 2015 COMMITTEE OF THE WHOLE. D. General Revenue Sources Staff provided a comprehensive briefing on various options available to increase revenues, including information such as the amount available, mechanism, type and payee. Options discussed included levy lid lifts, voted bonds, Business & Occupation (B &O) tax, Transportation Benefit Districts, special purpose districts, admission tax, parking tax, Revenue Generating Regulatory License (RGRL), impact fees, Local Improvement District (LID), utility tax, and City -wide reduction of operating costs. The Committee expressed appreciation for the table included in the packet and distributed in color at the table. The following additional information was requested: • Estimated cost to the median homeowner for those items impacting property tax • Appendix indicating King County cities with TBD, B &O tax, levy lid lift, special purpose districts or other similar revenue generating mechanisms. • Admissions tax rates charged by neighboring cities. • Property tax rates of neighboring cities. Finance & Safety Committee Minutes July 21, 2015 - Page 3 Chair Hougardy led a discussion about next steps for this information. Committee members agreed that this information is extremely valuable and all Councilmembers should be well versed in revenue options. The Committee decided they would like another opportunity to review the options table with ample time for questions and answers. INFORMATION ONLY. RETURN TO COMMITTEE. E. Lease Agreement: Police Evidence Vehicle Storage Staff is seeking Council approval of a lease agreement with IIT Andover DC, LLC for space at 571 Strander Boulevard to be used for Police Department evidence vehicle storage. Current facilities do not meet state standards and are insufficient to meet current and future storage needs due to safety and capacity concerns, lack of environmental protection, and lack of biohazard storage. Recently a 10,000 square foot space opened in the Andover Distribution Center which is suitable for the City's needs. The negotiated lease rate for 2015 is $4,700, with the first three months free. Power, security, water and sewer will bean additional charge, expected to be around $1,650 per month. Police has budgeted $50,000 for a leased storage facility, and the budget will need to increase 3% annually at the negotiated lease rate. UNANIMOUS APPROVAL. FORWARD TO AUGUST 3, 2015 REGULAR CONSENT AGENDA. III. MISCELLANEOUS Meeting adjourned at 7:29 p.m. Next meeting: Tuesday, August 18, 2015 — 5:30 p.m. — Hazelnut Conference Room Committee Chair Approval Minutes by LH