HomeMy WebLinkAbout2018-04-03 Finance Minutes
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
April 3, 2018 5:30 p.m. Hazelnut Conference Room, City Hall
Councilmembers: , Chair; Dennis Robertson, Kate Kruller
Staff: Peggy McCarthy, Jay Wittwer, Gail Labanara, Vicky Carlsen, Henry Hash, Ben
Hayman, David Cline, Jack Pace, Laurel Humphrey (by phone)
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I.PRESENTATIONS
II.BUSINESS AGENDA
Year-End General Fund Update for 2017
A.
Staff updated the Committee on preliminary results of the general fund for the fiscal year ending
December 31, 2017. Total revenues exceeded total expenditures by $17K and the ending fund
balance was approximately $11.85 million. Total revenues were $60.5M, or $2.35M below budget,
and total expenditures were $2.72M under budget. DISCUSSION ONLY.
January 2018 General Fund Update
B.
Staff updated the Committee on departmental expenditures for January 2018. Expenditures
totaled $5.7 million as compared to the allocated budget of $6.0 million, with notable variances
in Technology and Innovation Services salaries and benefits, Street Maintenance, and
unresolved labor contracts and vacancies. DISCUSSION ONLY.
Proposed Schedule for 2019-2020 Biennial Budget
C.
Staff
the 2019-2020 Biennial Budget and Capital Improvement Plan. The proposal is split into three
phases: Enterprise Funds, Capital Project Funds, and General Funds, Internal Service Funds,
Other Funds and Financial Planning Model Attachment A. All budget components will be
The
process will incorporate the first phases of priority-based budgeting as all departments will have
budgets allocated to programs. Chair Quinn stated that budget preparation should be thought
of as a partnership between staff and the Finance Committee to ensure that Council has the
information needed for good decision-making. DISCUSSION ONLY.
FinanceCommittee Minutes.........................................................................................................................................April 3, 2018
General Fund 2018 Expectations
D.
Sales tax revenue began to decline in mid to late 2016, resulting in a 2.0% reduction in total sales
tax revenue from 2015 and a 0.5% decline from 2016 to 2017. To mitigate the expected lack of
sales tax revenue in 2018, departments have committed to keeping expenditures at least 3%
below the amended budget. Savings can be realized by maintaining vacancies and monitoring
line items such as professional services, travel and training. Pipeline positions in the fire
department will be reduced as retirements occur. DISCUSSION ONLY.
Public Safety Plan Financing
E.
As follow up to the March 20, 2018 Committee meeting, staff identified $540K in potential savings
in the existing Capital Improvement Program, with ongoing reduction potential of $750K per
year. taff also prepared five potential scenarios for filling the
Public Safety Plan gap, incorporating varying strategies for funding and timing as outlined in the
memo and attachments. Committee members discussed the options, but expressed they are
unable to make a recommendation to the full Council without having a long-term financial model
that reflects the different strategies. Finance staff is currently working on a replacement for
Attachment A and will bring it to Committee when it is ready. The Finance Committee will be
prepared to work on its recommendation after reviewing the updated six-year plan.
DISCUSSION ONLY.
III.MISCELLANEOUS
Adjourned at 7:22 p.m.
Committee Chair Approval
Minutes by LH