HomeMy WebLinkAbout2011-07-06 Finance and Safety Minutes City of Tukwila
Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
July 6, 2011— 5: 00 p.m.; Conference Room #3 *'Wednesday due to holiday
PRESENT
Councilmembers: Kathy Hougardy, Chair; Joan Hernandez and Dennis Robertson
Staff Mike Villa, Shawn Hunstock, Marty Grisham, Nick Olivas and Kimberly Matej
Guest: Chuck Parrish
CALL TO ORDER: Chair Hougardy called the meeting to order at 5:00 p.m.
I. PRESENTATIONS
No presentations.
II. BUSINESS AGENDA
A. SCORE Investigative Services Agreement
Staff is seeking Council approval to enter into an Investigative Assistance Agreement with all SCORE
detention facility member cities (Auburn, Burien, Des Moines, Federal Way, Renton, SeaTac and
Tukwila).
This cooperative agreement is for investigative services for any criminal or significant activity that that
occurs at the SCORE facility and pursuant to RCW Chapter 10.93 (Mutual Aid Peace Officers Powers
Act). Investigative needs will be equally shared among member cities as necessary. Misdemeanor crimes
will be handled through internal processes. Without this investigative agreement, services would need to
be contracted and paid for through an outside entity (i.e.: King County). Legal has reviewed the
agreement, and the agreement has been approved by the SCORE Operations and Administrative Boards.
UNANIMOUS APPROVAL. FORWARD TO JULY 11 COW FOR DISCUSSION.
B. Ordinance Update: Emergencv Management
Staff is seeking Council approval of an ordinance amending existing Tukwila Municipal Code (TMC)
Section 2.57 regarding Emergency Management. The proposed draft ordinance addresses discrepancies as
identified through the Revised Code of Washington, and updates definitions and duties as appropriate.
This section of the TMC was last updated via ordinance in February 2008. The item is returning to
Committee from January 19, 2011, when the Committee suggested several areas of the ordinance that
needed clarification and/or further definition for application. Those areas have been modified and staff is
returning to Committee for additional review. Highlights of changes include:
New Section: Mayor's Responsibilities
Title Changes
Clarification/Specification of Roles (i.e.: changing control to coordination)
Staff mentioned that the new ordinance is NIMS compliant. All other City- issued emergency plans will
be built off of this ordinance increasing reliability, coordination and consistency of responsibilities.
UNANIMOUS APPROVAL. FORWARD TO JULY 11 COW FOR DISCUSSION.
C. Donation to Fire Department: Ford Expedition
Staff is seeking Council approval to accept the donation of a 1997 Ford Expedition for the Tukwila Fire
Explorer Post from the Valley Regional Fire Authority.
Finance Safety Committee Minutes July 6, 2011- Paae 2
Acceptance of this vehicle will allow for the transport of more equipment and Explorers as needed to
respond to incident recovery, meetings and other events. Upkeep costs will be absorbed into the Fire
Department's current budget. This vehicle will not be considered a City pool vehicle, and will not be
funded in the City's vehicle replacement program. UNANIMOUS APPROVAL. FORWARD TO
JULY 11 COW FOR DISCUSSION.
D. Sales Tax Report March/ADril 2011 Receipts
Information for March receipts was provided in the Committee agenda packet, and Shawn Hunstock
distributed the April report at the meeting.
Sales tax receipts for both March and April increased compared to the same months last year as well as
budget. Actual receipts were up $274,000 from budget in March and $150,000 in April. As of April,
receipt totals are up by 12% cumulative for the year. Additionally, the City continues to receive
mitigation payments. INFORMATION ONLY.
III. MISCELLANEOUS
Meeting adjourned at 5:39 p.m.
Next meeting: Tuesday, July 19, 2011 5:00 p.m. Conference Room #3
Mint 4 Committee Chair Approval
b, LIMO Reviewed by SH and MG.
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: July 6, 2011
SUBJECT: Sales Tax Revenue for April 2011
Schedule 1 in 1,000's
Sales Receipt 2010 2011 2011 Increase /(Decrease) %Increase /(Decrease)
Month Month Actual Estimated Actual Month YTD Month YTD
Jan Mar 1,034 1,080 1,039 (41) (41) -3.80% 0.00%
Feb Apr 1,006 1,033 1,043 10 (31) 0.97% -1.47%
Mar May 1,157 1,179 1,453 274 243 23.24% 7.38%
Apr June 1,070 1,102 1,252 150 393 13.61% 8.94%
May July 1,067 1,138 (1,138) (745) 100.00% 13.47%
June Aug 1,247 1,243 (1,243) (1,988) 100.00% 29.34%
July Sept 1,251 1,299 (1,299) (3,287) 100.00% -40.71%
Aug Oct 1,216 1,176 (1,176) (4,463) 100.00% 48.25%
Sept Nov 1,357 1,185 (1,185) (5,648) 100.00% 54.13%
Oct Dec 1,082 1,036 (1, 036) (6,684) 100.00% 58.27%
Nov Jan 12 1,202 1,101 (1,101) (7,785) 100.00% 61.92%
Dec Feb12 1,891 1,628 (1,628) (9,413) 100.00% 66.29%
Totals 14,580 14,200 4,787
Mitigation Received 611
5,398 107.85% of Budget Incl. Mitigation
Sales tax collections for April showed a significant increase versus the same month in the
previous year. April represented the ninth consecutive increase, and tenth increase during the
last twelve months. For April, collections more than the budget for the month, and more than
actual collections in the same month the previous year. Actual receipts for April were $150,000
more than budget, and $182,000 more than the same period last year. We are up 13.61% for
the month compared to budget, and up by 12.19% compared to the same month last year. This
is just the second month since August 2008 that actual sales tax collections for the month were
more than the budgeted amount.
It should be noted that of the $182,000 increase from the same month in the prior year,
approximately $30,000 of that was due to an amnesty program the Department of Revenue had
earlier this year. Under the program businesses had to apply for a waiver of penalties and
interest for unreported, or underreported, sales tax from prior periods and prior years. If the
application was approved by DOR, the business had to pay the appropriate tax between
February 1st and April 30 that would have otherwise been due if reported correctly initially. This
INFORMATIONAL MEMO
Page 2
is the first -ever amnesty program for DOR and was enacted by the legislature at the request of
the Governor. Excluding the amnesty amount received by Tukwila, the net increase due to an
overall increase in retail sales is $152,000.
Including mitigation payments, we are currently at 107.85% of budget for the year to date. This
includes a mitigation payment of $305,295.38 received on June 30, 2011. Mitigation payments
are now annualized and will only be adjusted once per year in the fall, effective with the
December 31 payment. Staff completed work on the last mitigation detail file and submitted to
the Department of Revenue a list of firms that should be removed from the mitigation calculation
process. These firms are ones that were offsetting other losses, thereby reducing our mitigation
payment.
Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this
schedule indicates, the trend is flat or down for most of the classifications.
Schedule II
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
448* Clothing and Accessories 584,668 558,164 26,505 4.75%
452* General Merchandise Stores 559,112 573,469 (14,358) -2.50%
443* Electronics and Appliances 486,382 285,390 200,992 70.43%
722* Food Services, Drinking Places 425,337 436,752 (11,415) -2.61%
423* Wholesale Trade, Durable Goods 343,647 414,341 (70,694) 17.06%
236 Construction of Buildings 240,631 122,159 118,473 96.98%
441* Motor Vehicle and Parts Dealer 215,440 204,899 10,541 5.14%
451* Sporting Goods, Hobby, Books 185,158 185,531 (373) -0.20%
453* Miscellaneous Store Retailers 152,834 144,118 8,715 6.05%
444* Building Material and Garden 147,947 156,488 (8,540) -5.46%
Mitigated NAICS Code
As you can see there are large variances from last year for the same time period. For instance,
sales tax for Construction of Buildings is up by 96.98 Electronics and Appliances is up by
70.43 and Wholesale Trade Durable Goods is down by 17.06 As illustrated above, five of
the top ten merchant categories have declined versus prior year, and all but one of the ten
industry classification codes are ones for which we receive streamlined sales tax mitigation.
Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000
collected year -to -date.
WAFIN ProjectslSales Tax InformationlSales Tax Files from Shawn12011\Info Memo Sales Tax 06152011.docx
INFORMATIONAL MEMO
Page 3
Schedule III
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
423* Wholesale Trade, Durable Goods 343,647 414,341 (70,694) 17.06%
811 Repair and Maintenance 28,430 35,092 (6,662) 18.98%
531 Real Estate 12,384 14,134 (1,749) 12.38%
517 Telecommunications 117,172 127,206 (10,034) -7.89%
444* Building Material and Garden 147,947 156,488 (8,540) -5.46%
323* Printing and Related Support 15,325 15,828 (503) -3.18%
722* Food Services, Drinking Places 425,337 436,752 (11,415) -2.61%
452* General Merchandise Stores 559,112 573,469 (14,358) -2.50%
721 Accommodation 135,716 137,459 (1,743) 1.27%
451* Sporting Goods, Hobby, Books 185,158 185,531 (373) -0.20%
Mitigated NAICS Code
Attached is a Sales Tax Summary comparing year -to -date 2011 vs. 2010 by major NAICS
codes. Also included is a comparison of total receipts year -to -date for the last six years.
Please let me know if you have any comments or questions. Thank you.
WARN ProjectslSales Tax Information\Sales Tax Files from Shawn1201 Unfo Memo Sales Tax 06152011.docx
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Six Year Comparison
2011 $4,786,52
2010 $4,268,280
2009 $4,6,
20085'
2007 $5,8152,10ts
2006
$2,000,000 $4,000,000 $6,000,000
Taxes Collected Year to Date