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Home My WebLink About2018-07-17 Finance Minutes City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes July 17, 20185:30p.m. Hazelnut Conference Room, City Hall –– Councilmembers: De’Sean Quinn, Chair; Dennis Robertson, Verna Seal Staff:David Cline, Rick Mitchell, Peggy McCarthy, Vicky Carlsen, Stephanie Brown, Erika Eddins, Jay Wittwer, Gail Labanara, Wynetta Bivens, Laurel Humphrey CALL TO ORDER: Committee Chair Quinncalled the meeting to order at 5:30p.m. I.PRESENTATIONS II.BUSINESS AGENDA dinance and Resolution: Updating Commercial Parking Tax A. dd Staff is seeking Council approval of an ordinance nd resolution to amend Tukwila Municipal d Code 3.48 to gradually increase the commercial parking tax from 5% to 15% and impose a late penalty of 10% per month. The commercial parking tax was established in 1998 and has not been updated since then. An increase to 15% will make the rate comparable to tax rates in surrounding jurisdictions. There are currently nine parking facilities in Tukwila that charge customers and are therefore subject to this tax. Parking tax revenues are restricted to transportation projects. An ordinance was proposed to Council last year that would have made the 15% rate effective on January 1, 2018. Following a public hearing held on November 21, 2017staff revised the proposal to graduate the increaseby imposing 8% in 2019, 11% in 2020, , and 15% in 2021. Councilmember Robertson stated that he would like Tukwilas rate to match ’ SeaTac, which currently charges $3 per vehicle, and will not support the proposal as presented. Councilmembers Quinn and Seal stated support for the proposals. roposed ordinance: MAJORITY APPROVAL WITH COUNCILMEMBER ROBERTSONOPPOSED. d FORWARD TO JULY 3, 2018 COMMITTEE OF THE WHOLE. 2 Proposed resolution UNANIMOUS APPROVAL. FORWARD TO JULY 3, 2018 COMMITTEE OF :2 THE WHOLE. 2017 4Quarterand 2018 QuarterFinancial Report B.thst 1d Staff presented the Committee with the City’s 2017 4thQuarter Financial Report which captures the general state of financial affairs and highlights significant items and trends. For the period ending December 31, 2017 revenues are below budget by $2.3million and expenditures are below budget by $2.7millionWhile ongoing revenues were less than total expenditures by . $281K, ongoing revenues exceeded department expenditures by $5.2M Department expenditures were below budget by $2.6M.rough March 31, 2018, revenues are below dd inanceCommittee Minutes........................................................................................................................................uly172018 dd, allocated budget by $506K and expenditures are below budget by $169K. here is strong d development ativity, bringing in permit revenue. Committee members asked clarifying d questions and made comments. Because a large percentageof the departmental savings is in labor costs due to retirements and transfers, the Council should be prepared to consider what savings areplanned and sustainable. FORWARD TO JULY 23, 2018 COMMITTEE OF THE WHOLE. Business & Occupation Tax Next Seps C. d Staff is seekingCommittee direction on next steps for consideration of a Business & Occupation (B&) Tax. The Cmmittee previously discussed this topic with regard to the Public Safety Plan dd financingand decided to set it aside to potentiallybe part of the biennial budget discussions . Because sales tax revenue is flattening and sales tax mitigation payments are ending, the City is facing revenue shortfalls with a potential budget gapof more than $2 million. Of options previously discussed, a B&O tax wouldprovide the greatest additionalrevenue. B&O tax rates are calculated on gross receipts anda city can provide an exemption threshold. 43 cities in Washington State have a B&O tax with varying approaches, and varying costs associated with staffing and implementation. aff estimates that a B&O tax could provide revenue of $3million dd or more. Councilmember Robertson asked if there could be more business sector categories than just retail, wholesale, manufacturing and service. He would also like more information about thelogic used by neighboring cities in setting their rates. He suggested that Finance and Police/Fire collaborate to determine service impacts from different sectors. Councilmember Seal stated that the City needs to be clear on why it is considering a B&O tax and how the money would fund City services. Chair Quinn stated that the Councilneeds to have enough information in order to make a sound, datadriven, policy decisionThe Committee agreed hat -.d staff should bring forward additional researchand afuture budget work session should include this item. DISCUSSION ONLY. Compensation Plicy Update D. d Staff is seeking Committee direction to finalize the scope of the review of the compensation policy as formalized in Resolution 1796. The City Council had previously requested that compression, above and below market adjustments, comparable cities, and recruitment incentives be discussed. Nonrepresented employees asked the Committee to focus on - comparable cities, the process for setting nonrepresented position compensation, - compression, incentives, and direct staff to do a full market survey of all nonreppositions. The - Committee requested that staff bring at least 23 of these topics forwardat a time at future - meetings. DISCUSSION ONLY. inanceCommittee Minutes........................................................................................................................................uly172018 dd, III.MISCELLANEOUS The Committee agreed to cancel the August 7, 2018 Finance ommitteemeeting so that members d canparticipate in National Night Out Against Crime. Adjourned at 6:21p.m. Committee Chair Approval Minutes byLH