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Home My WebLink About2018-03-06 Finance Minutes City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes -;L=B Ǹț ǴǲǳǺ ǷȜǵǲ JȚGȚ (;T?FHON #IH@?L?H=? 2IIGț #CNS (;FF Councilmembers: , Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Bruce Linton, Jack Pace, Peggy McCarthy, Vicky Carlsen, Sherry Wright, Jay Wittwer, Trish Kinlow, Rachel Bianchi, Gail Labanara, Laurel Humphrey CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I.PRESENTATIONS II.BUSINESS AGENDA Public Safety Plan Financing A. Committee members and staff continued the discussion on financing the Public Safety Plan budget gap building upon feedback gathered at the February 6 and February 21 Committee meetings. &?<LO;LS Ǵǳ &IFFIQȯOJ Staff first reviewed the follow ups to requests made at the last meeting as shown underlined and attached in the agenda material. Because the map showing City-owned property does not show parks properties, the Committee requested an additional map with that information. 2?P?HO? /JNCIHM Staff has added to the list of available revenue options gambling tax. The City currently levies a 10% tax on cardrooms which yielded $3.8 million in 2017. The City can levy up to 20% and if the tax were increased to 12%, an additional $720k per year could be collected, and an increase to 15% could yield an additional $1.9 million. The Committee chose not to add this to the list of revenue options to be evaluated further, which currently includes B&O tax on larger businesses and a Local Improvement District. '?H?L;F &OH> IJ?L;NCIHM Another option to fill the Public Safety Plan budget gap is to reduce General Fund expenditures, which could be done by an across the board reduction, reducing/eliminating programs under current budget structure, or reducing/eliminating programs using the Priority-Based Budgeting (PBB) model currently being developed. Staff reviewed the pros and cons for each, recommending the PBB option because it will identify lower level priorities while factoring in actual program costs. Councilmember Kruller stated support for that option but also would like there to be immediate identification of attainable reductions, such as meeting meals, travel, or head count attrition. She feels the City can be making progress in the short-term while also &CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ-;L=B ǸțǴǲǳǺ working toward program evaluation. Chair Quinn acknowledged that across the board cuts can be problematic and asked if Administration is already discussing the kind of possibilities mentioned by Councilmember Kruller. Trimming the budget is an institutional decision and he would like to see a proactive approach from Administration. Councilmember Robertson added consulting fees to the list of things that should be evaluated for cost savings. Staff noted that decision making on the Public Safety Plan budget will occur around May-June, and near-term operational reductions can be part of that discussion as requested. Chair Quinn also requested that the other Council standing committees be briefed on discussions of operational reductions proposed by Administration. #;JCN;F )GJLIP?G?HN 0F;H 0LCILCNCT;NCIH Another tool for the Council to consider is to reprioritize the Capital Improvement Plan (CIP) to dedicate General Fund dollars that transfer to the CIP to the Public Safety Plan. General Fund dollars go to leverage grant funds and other matching funds, and the City has budgeted an average of $3 million per year over the past four years. Council could also choose to reduce but not eliminate the General Fund transfer. In addition, REET 2 funds that are currently dedicated to bridges and arterial streets could go to financing the Public Safety Plan. Chair Quinn requested that staff make thoughtful, professional recommendations around prioritization that will help the Council make defensible decisions. He requested that staff show Committees the potential impacts to projects if certain General Fund reductions are made. Councilmember Robertson noted the Strander Boulevard Extension project assumes a significant General Fund contribution and suggested that the possibility of a Local Improvement District be considered for affected property owners. Staff also noted that Attachment C to the CIP is a good resource for this topic as it shows City funding and grant funding for residential street projects. At the next Committee meeting on March 20, staff will bring updated versions of the financial planning matrix and be prepared to discuss the project schedule and ramifications of delaying certain aspects. The Committee requested to also have a discussion on market conditions. RETURN TO COMMITTEE. III.MISCELLANEOUS Adjourned at 6:27 p.m. Committee Chair Approval -CHON?M <S ,(ț 2?PC?Q?> <S 2"ț 6#