HomeMy WebLinkAbout2017-10-17 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
October 17, 2017 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Acting Chair; Dennis Robertson, Kathy Hougardy
Staff: David Cline, Jay Wittwer, Peggy McCarthy, Vicky Carlsen, Leon Richardson, Laurel
Humphrey
Guests: Deanna Gregory, Pacifica Law Group; Duncan Brown, PFM Financial Advisors LLC;
Colin Donahue, PFM Asset Management LLC
CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Grant Acceptance: National Criminal History Improvement
Staff is seeking Council approval of a grant acceptance agreement with the Washington State
Patrol to accept grant funding in the amount of $77,426.10 for continuation of the Disposition
Research Specialist position. This position corrects errors caused by incompatibilities with the
SCORE facility record system, and since the grant was first awarded last year, has corrected over
2,780 dispositions. The funding requires a 10% match of $8,602.90. Chair Seal suggested that
Mayor Ekberg bring up the system incompatibility issue with the SCORE Board. UNANIMOUS
APPROVAL. FORWARD TO OCTOBER 23, 2017 SPECIAL CONSENT AGENDA.
B. Ordinance: Urban Renewal Debt Refinancing
Staff is seeking Council approval of an ordinance that would authorize the sale of up to $2.35
million in a limited tax general obligation bond to refinance the city's outstanding Limited Tax
General Obligation Bond Anticipation Note, 2014 for the urban renewal project. It was
previously anticipated that the note would be paid from proceeds of the sale of the property,
but this has not yet occurred. The interest rate on this new bond will range from 2.6 to 3.0 over
its five-year life, and may be prepaid at any time with no penalty. Cashmere Valley Bank offered
the most favorable terms of seven responding banks. The Council earlier gave staff direction to
work with Healthpoint on the potential development of the property and this five-yeartermwill
allow that work to continue. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 23, 2017
COMMITTEE OF THE WHOLE.
Finance Committee Minutes October 17, 2017
C. Contract Amendment: PFM Financial Advisors, LLC
Staff is seeking Council approval of a contract amendment with PFM Financial Advisors, LLC to
extend the term expiration date through December 31, 2020 and to increase the "not to exceed"
amount to $300,000. In addition to the refinancing of the 2014 urban renewal debt, the City has
future plans to issue bonds for the Public Safety Plan. PFM provides technical expertise that
benefits the city and helps obtain favorable interest rates. UNANIMOUS APPROVAL.
FORWARD TO NOVEMBER 6, 2017 REGULAR CONSENT AGENDA.
D. August 2017 Department Budgets -to -Actuals Report
Staff provided a report on expenditures compared to allocated budget for each department for
the month of August 2017. General fund expenditures were $3.5 million below budget.
DISCUSSION ONLY.
E. Fire Department Budget
Staff provided a follow up regarding the Fire Department's anticipated budget overage due
primarily to the additional pipeline positions authorized in 2016 and fewer retirements in 2017.
There are currently 24 Fire personnel eligible to retire in three years or less and it was
anticipated that pipeline positions would transfer into retirement vacancies. In 2017 there has
been only one retirement, while the average has been three per year. As the next retirements
occur, staff intends to not fill two of the pipeline positions, bringing the number back down to
three. Staff is recommending a budget amendment of: $240,000 for salaries/benefits of two
pipeline positions, $125,000 for hurricane deployment, which will be reimbursed to the City in
2018, and $35,000 in additional EMS levy funds that will be received this year. Staff also
provided an overview of other anticipated budget amendments, noting that all amendments
are considered housekeeping for transparency since the total general fund will be within
budget. Councilmember McLeod asked for specifics on how fire overtime occurs. Factors
include the rigorous JETC training program, which is a regional approach and requires
additional training hours to obtain driver eligibility. 5-6 personnel have had on and off duty
injuries this year. Fire investigation can occur at odd hours and there has been a significant
arson investigation this year. Committee members discussed the information and requested
that staff return to discuss the Fire Department budget again in the context of the full budget
amendment package, and be prepared to clearly explain the details along with strategies for
the future. They also requested information showing how the pipeline positions have kept
salaries and overtime costs down. Committee members and staff briefly discussed the
hurricane deployments, which are reimbursable to the City. Tukwila has long been committed
to this type of aid, but decisions are made about how many people can be deployed to minimize
the impact to service in Tukwila. RETURN TO COMMITTEE.
III. MISCELLANEOUS
Adjourned at 7:20 p.m.
Committee Chair Approval
Mi utes by LH