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HomeMy WebLinkAbout2017-11-07 Finance MinutesCity of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes November 7, 2017- 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Verna Seal, Chair; Kathy Hougardy, Thomas McLeod Staff: David Cline, Jay Wittwer, Peggy McCarthy, Vicky Carlsen, Gail Labanara, Sherry Wright, Laurel Humphrey CALL TO ORDER: Committee Chair Seal called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Grant Agreement: State of Washington Office of Public Defense Staff is seeking Council approval of a grant acceptance agreement with the Washington State Office of Public Defense (WSOPD) for $37,000 each for 2018 and 2019. The City of Tukwila has received this grant in the past and in 2018 WSOPD transitioned to a two-year funding cycle. Funds will be used to provide investigator services, interpreter services, and social work assistance to the City's Public Defense Program. There is no match, but the City is required to submit three written reports as outlined in the agreement. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT AGENDA. B. Reappointment of Municipal Court Judge Staff is seeking Council approval to confirm the reappointment of Judge Kimberly Walden to the office of Municipal Court Judge for a term of January 1, 2018 - December 31, 2021. The Council is also being asked to approve an ordinance fixing the Judge's salary pursuant to city and state law. The proposed ordinance maintains the judges position at .90 FTE with the salary set at .90 of the District Court Judge salary in the schedule adopted by the Washington Citizen's Commission on Salaries for Elected Officials. The Committee agreed that Judge Walden has been serving the City well in her position which she has held since 2003. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR MEETING. C. Tax Levy Ordinances Staff is seeking Council approval of two ordinances relating to property tax: one that would increase the City's Regular Property Tax Levy from 2017, and one that would levy general and excess property taxes. These ordinances are presented to the Council on an annual basis. According to the King County Assessor, the projected assessed value for Tukwila is $6,044,327,455. The maximum allowable levy is estimated to be $3.45711. The preliminary levy rate is estimated to be $2.49969 for 2018. A levy amount of $15,300,000 is proposed in the draft Finance Committee Minutes November 7, 2017 ordinance and may be adjusted if the final allowable levy is less. Also included is an excess levy in the amount of $2,800,000 for debt service related to the Public Safety Plan unlimited tax obligation bonds sold at the end of 2016. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. D. 2017 Third Quarter Financial Report Staff presented the Committee with the City's 2017 3rd Quarter Financial Report which captures the general state of financial affairs and highlights significant items and trends. For the period ending September 30, 2017 revenues are below allocated budget by $1.3 million and expenditures are below budget by $4.18 million. Staff has purchased and is training on a long- range financial planning tool and will be demonstrating it to Council in 2018. FORWARD TO NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE. E. Ordinance: Mid -Biennium Budget Amendment Staff is seeking Council approval of an ordinance to amend the 2017-2018 Biennial Budget. Staff provided an overview of the changes, categorized as existing service levels, revenue backed, carryovers, and initiatives. Staff also noted that these types of budget amendments are considered administrative and not legally required, but staff policy is to implement them for transparency, Council communication, and record-keeping. The only department requiring an existing service level budget amendment is the Fire Department, which the Committee had been briefed upon several times earlier this year. The Committee discussed at length the Fire Department's request for an amendment for partial payment of the pipeline positions. The City currently has five unbudgeted pipeline positions in anticipation of retirements, but 2017 saw just one retirement. The Fire Department can cover $360,000 of the total cost of $600,000 for the five pipelines and is requesting a budget amendment of $240,000. This money is available from under -expenditures in other departments. The Fire Department proposes to drop the pipeline positions down to three as the next two retirements occur. In addition, they are performing daily monitoring of overtime costs and conducting monthly budget review meetings. Chair Seal asked if level of fire service is still a Council policy decision. Staff confirmed that the current proposal reflects previous Council direction regarding the level of service that should be funded. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 13, 2017 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING AND DISCUSSION. F. Resolution: Financial Reserve Policy Staff is seeking Council approval of a resolution to revise the City's Financial Reserve Policy to reflect recent changes in accounting standards. The Financial Reserve Policy outlines minimum fund balance, one-time revenues, and self-insurance reserve requirements. The proposed amendment will clarify that the effects of specific accounting standards will be excluded from the calculation of unrestricted fund balance. In 2015 the City was required to implement a new federal accounting standard for pension plans known as GASB 68. When the GASB 68 was booked in the Golf Course Fund, the unrestricted balanced dropped to 8%, which is below the required 20% of the previous year's revenues. The accounting entry for GASB 68 does not impact actual available fund balance. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 20, 2017 REGULAR CONSENT AGENDA. Finance Committee Minutes November 7, 2017 G. Park and Fire Impact Fees Legislative Process Staff is seeking Committee approval to take all the fire and park impact fee -related legislation through the Finance Committee for continuity of discussion. There will be three ordinances and one resolution resulting from the project, which Berk Consulting is concluding. The Finance Committee will be briefed on the legislation on November 21. UNANIMOUS APPROVAL. H. Public Safety Plan Public Works Shops Facility Financing Staff updated the Committee on the next steps regarding financing for the Public Works Shops building in the Public Safety Plan. The shops financing will be accomplished through the issuance of LTGO bonds with 50% of the debt service paid by the General Fund and 50% paid by the utility funds. The project timeline anticipates the site acquisition to occur during first quarter 2018 at an estimated cost of up to $15 million. To accomplish this financing the City must consider interfund loans or a short term bank loan. The City's bond counsel is preparing an ordinance that incorporates financing options for the Committee's review on November 21. DISCUSSION ONLY. III. MISCELLANEOUS Adjourned at 7:05 p.m. Committee Chair Approval Mih`utes by LH