HomeMy WebLinkAbout2018-05-22 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
May 22, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Stephanie Brown, Erika Eddins, Gail Labanara, Jay Wittwer, Vicky
Carlsen, Laura Crandall, Rachel Bianchi
Guest: Mohamed Ahmed, student
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Compensation Policy Proposed Timeline
Staff updated the Committee on a proposed process and timeline for the review and potential
amendment to Resolution 1796, which sets the policy for compensation and benefits for
employees. At the March 20, 2018 meeting, the Finance Committee requested that the process
include an updated market study, input from non -represented employees, background on
decision band methodology, analysis on gender neutrality, desk audits, performance reviews,
appeals, merit pay and compression, and a full Council work session to understand the
background. The Committee agreed with the proposed timeline, which includes a June Council
work session, Committee review over July and August, and potential action in September. Staff
will work with the Chair on the work session agenda. DISCUSSION ONLY.
B. Preliminary Six -Year Financial Forecast/Public Safety Plan Financing
Staff presented the first preliminary six-year financial forecast using the new financial
modeling tool Whitebirch, which was previewed for the Committee at the last meeting. The
new tool provides greater predictive accuracy, monitors for structural deficits, and models
flexible scenarios. As before with "Attachment A," the projections show a decrease in the
third biennium, which the City addresses through course corrections each year via the
budget. The preliminary results show that 2018 is balanced and meets our financial policies.
As expected, ongoing revenues are not in alignment with ongoing expenses due to
decreasing sales tax and capital project. Staff included an unidentified new revenue source
beginning in 2019 to address the flattening sales tax and elimination of sales tax mitigation.
Committee members discussed the forecast and requested the following changes:
• Update the History of Six -Year Plan Forecasts vs. Actuals graph to include 2017.
• Expand the forecast to the next level of detail (for example, open the Business Tax line
to show the sub categories and amounts)
Finance Committee Minutes May 22, 2018
• Create a key to explain groupings and definitions
• Add 2015 and 2016 data
• Add notation to explain that the contingency fund is not included
• Provide document in a larger, more readable format
Staff asked Committee members which Public Safety Plan funding scenarios they would like to
see modeled at the June 5, 2018 meeting. Referencing the five scenarios on page 14 of the
agenda, the following were requested:
• Option A with a 20 -year LTGO amortization
• Option C-1 with a 20 -year LTGO amortization
• Option C-2 with a 20 -year LTGO amortization
• Option D with a 20 -year LTGO amortization
If the Finance Committee needs more time to discuss its recommendation following the June 5
meeting, it may choose to convene another meeting during that same week. DISCUSSION ONLY.
III. MISCELLANEOUS
Adjourned at 6:26 p.m.
Committee Chair Approval
Minutes by LH, Reviewed by VC