HomeMy WebLinkAbout2017-10-03 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
October3, 2017- 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Acting Chair; Dennis Robertson, Kathy Hougardy
Staff: David Cline, Jay Wittwer, Vicky Carlsen, Gail Labanara, Laurel Humphrey
CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Resolution: Ordering the Cancellation of Past Due Accounts Receivable
Staff is seeking Council approval of the annual resolution that would declare the cancellation
of uncollectible accounts receivable. The total for this year includes false alarm fees equaling
$4,750.00, miscellaneous billings equaling $4,224.76 and NSF checks equaling $30.49 for a total
of $9,005.25. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 16, 2017 REGULAR CONSENT
AGENDA.
B. Resolution: Cancelling Abandoned or Unclaimed Property
Staff is seeking Council approval of the annual resolution that would declare the cancellation
of abandoned or unclaimed property that is owed to individuals or business owners in time for
reporting to the Washington State Department of Revenue Unclaimed Property Section by
November 1, 2017. This year's report includes the cancellation of outstanding General Fund
claims in the total amount of $3,184.12. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 16,
2017 REGULAR CONSENT AGENDA.
C. 2017 2"d Quarter Sales & Miscellaneous Revenue Report
Staff presented the 2017 2nd Quarter Sales Tax and Miscellaneous Revenue Report, including
details on retail sales tax, gambling tax, and admissions tax revenues with sale tax broken out
by industry classifications. Total sales tax collections for the 2nd quarter were $277K below
those for the same period in 2017. Committee members and staff discussed the decision of the
state legislature to phase out streamlined sales tax mitigation payments. DISCUSSION ONLY.
D. Public Safety Plan Financing
Staff is seeking Committee direction on an approach to identify additional funding needed for
the Public Safety Plan due to cost escalation and market conditions. The financial estimates for
the buildings were developed in 2015 as part of the city's facilities replacement study, and since
then the region has seen unprecedented growth leading to significant increases in land and
construction prices. The City Council will need to identify additional sources of funding for the
Public Safety Plan, and staff is seeking direction on next steps as well as confirmation that the
Finance Committee Minutes October3, 2017
construction of buildings in the Plan should be completed as stated. Staff offered to work with
the Committee to develop a written proposal to present to the full Council, identifying
philosophies which could include one-time revenues, ending fund balance, or others. Each
Committee member spoke in support of committing to delivery of the full Public Safety Plan.
Chair Seal noted that the City is embarking on Priority -Based Budgeting and this will be an
opportunity to rethink the entire City budget, which will also help the Council work through the
Public Safety Plan financing. Councilmember McLeod stated that he wants all options on the
table, and that firm numbers will not be available until 2018. Councilmember Hougardy asked
what escalator was used in the construction estimates. Staff confirmed that it was 3% based on
historical trends and in reality, the market is showing 10-20% The Committee agreed that this
work will largely occur in 2018 and they do not need staff to return with options this year.
DISCUSSION ONLY.
III. MISCELLANEOUS
Chair Seal informed the committee that work on the compensation policy was not going to progress
this year due to collective bargaining, and that the Committee had agreed earlier that these efforts
should not be simultaneous. Because it is nearly time to set the 2018 compensation for non -
represented employees, she suggests finding a comparable percentage with what the teamsters
contract ends up at. This item will return to Committee. Staff suggested that next year's Finance
Committee address compensation as early in the year as possible.
Adjourned at 6:26 p.m.
HJT..
Committee Chair Approval
Minutes by LH