HomeMy WebLinkAbout2011-08-23 Special Minutes - Budget WorkshopCity of Tukwila
City Council
Budget Workshop
Location: Tukwila City Hall Council Chambers
Date: August 23, 2011
Begin Time: 6:03 p.m.
End Time: 8:22 p.m.
PRESENT
Electeds: Allan Ekberg, Council President (via conference call); Councilmembers: Joe Duffle, Joan Hernandez,
Dennis Robertson, Verna Seal (running work session in President Ekberg's physical absence), Kathy Hougardy and
De'Sean Quinn
Staff Shawn Hunstock, Interim City Administrator; Peggy McCarthy, Acting Finance Director; Bob Giberson,
Public Works Director; Gail Labanara, Public Works Analyst; Mike Cusick, Rick Still, Parks Recreation
Director; Derek Speck, Economic Development Administrator; Marty O'Brien, Curt Chandler, Warren Orr
The Budget Workshop consisted of the following:
Overview and Discussion of the Sewer 402 Fund
Overview and Discussion of the Golf Course 411 Fund
Sewer Fund 402
Staff gave an overview of the Sewer Fund 402 Revenue and Expenditures as of June 30, 2011 (2 Quarter Report).
Four proposals /scenarios of Attachment E 2012 Sewer Enterprise Fund (in the Financial Planning Model) were
presented by staff for Council review. Those scenarios included the 2012 -2017 Analysis with the following
considerations:
Receipt of a Public Works Trust Fund Loan
No Public Works Trust Fund Loan and $200,000 per year for the CBD Sanitary Sewer Rehabilitation
Receipt of a Public Works Trust Fund Loan, a 10% Utility Tax, 10% and 5% Rate Increases
Receipt of a Public Works Trust Fund Loan, a 6% Utility Tax, 10% and 5% Rate Increases
Council's preference is to provide policy direction after the City is notified of the status of the Public Works Trust
Fund Loan, which is anticipated be available in November. Staff is currently working on the Sewer Comprehensive
Plan, which is also expected to impact the Financial Planning Model.
Staff also discussed rate increases included in the CIP as well as how the utility tax affects the Fund. Tukwila still
remains in the median of residential sewer rates in comparison to surrounding communities.
Golf Course Fund 411
Staff gave an overview of the Golf Course Fund 411 Revenue and Expenditures as of June 30, 2011 (2 Quarter
Report) and discussed other financial data historical and current.
In order to address the current operating deficit of the Golf Course (general fund, debt service, capital) several
options were presented to Council for discussion:
Continue Subsidizing the Golf Course through the City's General Fund
Transfer Sales Revenue from the Parks Acquisition Fund into the Golf Course Fund
Utilize an Outside Source to Contract Golf Operations
Change Golf Course Configuration
Close Course and Sell/Develop Land
Budget Workshoa
August 23, 2011— Paw 2
After discussion, Council determined, prior to a policy decision, they would like to receive input from golf staff, in
particular, regarding the options for the Golf Course. In addition to assessment of the above options, Council has
requested staff present scenarios that include balancing the budget and/or reducing the general fund subsidy.
Council has requested this information be provided in another work session within a month.
Hand -Outs Distributed Prior to Meeting:
Meeting Agenda
2011 Second Quarter Financial Report
Various handouts related or applicable to reviewing the Sewer Fund
Various handouts related or applicable to reviewing the Golf Course Fund
Memo from Peggy McCarthy, Deputy Finance Director, dated July 7, 2011: Foster Golf Course
Financial Follow -Up (includes three page Excel document)
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Summary by KAM