HomeMy WebLinkAbout2017-04-18 Finance MinutesFINANCE COMMITTEE
Meeting Minutes
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City Council Finance Committee
April 18, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Verna Seal, Chair; Kathy Hougardy, Thomas McLeod
Staff: Peggy McCarthy, Vicky Carlsen, Joseph Todd, Gail Labanara, Chris Flores, Laurel
Humphrey
Guests: Duncan Brown & Dylan Locati, Public Financial Management, Inc.; Stacey Lewis,
Pacifica Law Group
CALL TO ORDER: Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESSAGENDA
A. 2017 -2018 Capital Funding Plan
Staff and guests from Public Financial Management, Inc. (PFM) and Pacifica Law Group
provided an overview of the 2017 -2018 Capital Funding Plan. The adopted 2017 -2018 Biennial
Budget and 2017 -2022 Capital Improvement Plan includes issuance of limited tax general
obligation (LTGO) bonds to help finance the 42nd Avenue South and 53rd Avenue South
residential street projects and the Public Works shops replacement in the Public Safety Plan.
An $8.4 million bond sale for the residential streets project is being considered for issuance this
summer. The TIB Redevelopment bond anticipation note matures on December 1, 2017, and if
developer proceeds are not received to pay off the debt as planned, the City will need to
refinance or use an alternate payment source. It may be possible to apply the UTGO Public
Safety bonds to this debt, but the Public Safety Plan ordinance will likely need to be amended.
PFM's recommendation will likely be to renew or extend the line of credit. This topic will return
to committee later this year, as there is time to plan for the December 1 maturity date.
DISCUSSION ONLY.
B. Ordinance: Removing Tukwila Municipal Code 3.32.040
Staff is seeking Council approval of an ordinance that would remove Tukwila Municipal Code
Section 3.32.040 " Unbudgeted Equipment or Fixed Assets." This provision requires Mayor and
Committee (not full Council) approval of unbudgeted capital equipment or fixed assets costing
between $5,000- $39,999. These requests are infrequent and cause confusion in the
organization. Under this proposal, City processes will be streamlined as the existing TMC
3.32.030, "Bids," requiring Council approval of all purchases over $40,000, will serve as the
Council's clearly defined authority. Staff noted that once Tukwila's population reaches at least
Finance Committee Minutes ........................................................................................................ ............................... April 18, 2017
20,000, the City will have to reassess all purchasing policies and practices as State law gives
cities more flexibility at that population level. UNANIMOUS APPROVAL. FORWARD TO APRIL
24, 2017 COMMITTEE OF THE WHOLE.
C. February 2017 Department Budgets -to- Actuals Report
In response to Financial Policy GF -5 adopted along with the 2017 -2018 biennial budget, staff
provided a report on expenditures compared to allocated budget for each department for the
month of February 2017. INFORMATION ONLY.
D. Technology & Innovation Services Department Quarterly Report
The adopted 2017/2018 Biennial Budget requires the Technology and Innovation Services (TIS)
Department to provide a quarterly report to Council to describe implementation and benefits
of the increased technology investments. Staff reported on the status of the five key TIS
initiatives including budget, schedule, achievements and milestones. The Committee
requested that the full Council receive copies of the report. Councilmembers Hougardy and Seal
mentioned that wi -fi and network accessibility in City Hall continues to be challenging for
Councilmembers and would like help with solutions. DISCUSSION ONLY.
III. MISCELLANEOUS
Chair Seal requested that copies of the updated Finance Committee work plan be distributed to
attendees. Staff noted that the update includes a few items that were outcomes from the January
City Council retreat, such as the items on employee reviews and discrimination reporting. Chair Seal
asked about progress on researching a process for the 2019 -2020 Biennial Budget, which is due to
come before the Committee in the third quarter. Staff asked for clarification on how the Committee
would like to approach this topic. Committee members expressed interest in first receiving a high -
level briefing on different budget models, including priority based, incentive based, participatory,
and zero - based. The briefing should include a description of the current practice as well as a
summary and pros /cons for each of the models requested. DISCUSSION ONLY.
Adjourned at 6:19 p.m.
t Committee ChairApproval
Minutes by LH