HomeMy WebLinkAbout2018-09-05 Finance Minutes
City of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
3?JN?G<?L Ƿț ǴDzdzǺ ǷȜǵDz JȚGȚ (;T?FHON #IH@?L?H=? 2IIGț #CNS (;FF
Councilmembers: , Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Brandon Miles, Rachel Bianchi, Leon Richardson, Jay Wittwer, Peggy
McCarthy, Vicky Carlsen, Aaron Williams, Wynetta Bivens, Richard Takechi, Jeff
Friend, Derek Speck, Olin Johansen, Anthony Murietta, Laurel Humphrey
Guest: Andrea Reay, Seattle Southside Chamber of Commerce
CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II.BUSINESS AGENDA
A. Ordinance: Amending Gambling Tax
Staff is proposing an amendment to the Tukwila Municipal Code to increase the gambling
activities tax on cardrooms from 10% to 11%. There are currently four cardrooms in Tukwila,
and there is a provision in the code that the rate would become 15% when more than five are
operating. Gambling taxes are used primarily for public safety, and state law caps the tax at 20%.
Jurisdictions vary on regulation of card rooms. Auburn has a rate of 4% and Redmond has 12%.
Kent and King County are at 11%. The proposed 1% increase would generate approximately
$350,000 in additional revenue. Committee members briefly discussed the proposal and
decided to forward the item for full Council discussion with no recommendation. NO
RECOMMENDATION. FORWARD TO SEPTEMBER 10, 2018 COMMITTEE OF THE WHOLE.
B. Employee Compensation Policy
Staff returned with policy recommendations in the areas of above and below market
adjustments, comparable cities, compression, recruitment incentives, and compensation
review process for non-represented employees. The committee discussed these items and
requested the policy return to committee with additional information as follows:
-;LE?N #IGJ?NCNCP?H?MMȜ No recommendation. The three proposals will be discussed at a future
meeting.
#IGJL?MMCIHȜ Retain current language in Resolution 1796.
#IGJ;L;<CFCNSȜ Prepare resolution showing both options 1 and 2 in context. Update Table B-1
with the following:
&CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ3?JN?G<?L Ƿț ǴDzdzǺ
column to
Asterisk cities that do not have Police or Fire
)H@ILG;NCIH NI <? 0LIPC>?> NI NB? #CNS #IOH=CFȜ Add language to the draft resolution clarifying that it
is the responsibility of the Finance Committee to ensure the information specified in A(1) and A(2)
is received by staff on the expected schedule, unless a decision is made by a majority of the Council
to deviate from that schedule.
DISCUSSION ONLY. RETURN TO COMMITTEE
C. 2018 2nd Quarter Sales Tax and Miscellaneous Revenue Report
Staff presented the 2018 Second Quarter Sales Tax and Miscellaneous Revenue Report,
including details on retail sales tax, gambling tax, and admissions tax revenues with sales tax
broken out by industry classifications. Sales tax collections increased $584 thousand or 13%
over the same period last year. Construction related sales tax accounted for 28% while all other
industries accounted for 12% when compared to the same period in 2017. DISCUSSION ONLY.
D. Interlocal Agreement: Transfer of Surface Water Billing to King County
Staff is seeking Council approval of an interlocal agreement with King County authorizing the
.
Finance staff currently bills and maintains 5,286 accounts. Transferring the billing and
receipting to King County will allow staff to devote time add capacity to other existing and
potential work items. This could also be a convenience to property owners as they could pay
both surface water and property tax with one payment.
King County
one-time setup fee and annual charge (based on number of accounts) will be paid by the
Surface Water Fund. Committee members expressed support but would like to know more
detail about the increased staff capacity created since the intent is not to reduce or eliminate
positions. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 10, 2018 COMMITTEE OF THE
WHOLE.
E. 2019-2020 Biennial Budget
Staff presented the proposals for the Finance Department, Contingency Fund (105 Fund), Urban
Renewal (302 Fund), and General Improvements (303 Fund)
&CH;H=?
The proposed Finance Department budget reflects a decrease of 2.26^ for 2019 and a 2.84%
increase for 2020, yielding a net biennial increase of less than 1%. Staffing levels remain at 12,
and the additional capacity resulting from the transfer of business licenses to the State and the
potential transfer of surface water billing to King County will be redirected to other work as
discussed above. Reductions occurred in extra labor and claims and judgements based upon
actual usage.
&CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ3?JN?G<?L Ƿț ǴDzdzǺ
#IHNCHA?H=S &OH> ȸdzDzǷ &OH>ȹ
The Contingency Fund includes the 10% One-time Revenue reserve and the 10% Minimum Fund
Balance reserve. These policies are not being recommended for changes.
5L<;H 2?H?Q;F ȸǵDzǴ &OH>ȹ
The proposed budget reflects minor costs associated with Tukwila Village, and a fund balance
exists due to land sale revenue.
General Improvements (303 Fund)
The proposal includes a transfer in of $300K each year, representing an increase of $100,000.
Planned projects include siding and roof repairs at TCC and City Hall.
DISCUSSION ONLY. FORWARD TO AUGUST 27, 2018 COMMITTEE OF THE WHOLE.
III.MISCELLANEOUS
Adjourned at 7:08 p.m.
Committee Chair Approval
-CHON?M <S ,(