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Home My WebLink About2018-10-24 Special Minutes - 2019-2020 Biennial Budget Work Session City of Tukwila City Council 7ILE 3?MMCIH ǴǲǳǻȯǴǲǴǲ "O>A?N ,I=;NCIHȜ Council Chamber $;N?Ȝ October 24, 2018 3N;LNȜ 5:30 p.m. %H>Ȝ 7:30 p.m. 02%3%.4 #CNS #IOH=CFȜ Verna Seal, Dennis Robertson, , Kate Kruller, Thomas McLeod, Zak Idan -;SIL Ǳ 3N;@@Ȝ Allan Ekberg, David Cline, Laurel Humphrey, Peggy McCarthy, Vicky Carlsen, Jeff Friend, Jack Pace, Hari, Ponnekanti, Gail Labanara, Rick Still, Rachel Bianchi, Joseph Todd, Henry Hash, Bruce Linton, Jay Wittwer, Derek Speck 7?F=IG? Finance Committee Chair Quinn called the meeting to order and welcomed attendees, explaining that the purpose of the meeting is to clarify information in order for effective decision-making by the Council. 0LCILCNSȯ";M?> "O>A?NCHAȯ 0LIAL;G 3=ILCHA Staff updated the Council on the Priority-Based Budgeting project. Since the last work session where the draft list of programs was distributed, the peer-reviewed scores were submitted to the Center for Priority-Based Budgeting who allocated the programs to tiers based on how well each connection and tier four the least. This is a multi-year effort focusing specifically on the General Fund for now with other funds and performance measures included in the next phase. Councilmembers discussed the program scores and asked clarifying questions. Additional information requests included: List of mandated programs and dollar amounts List of non-mandated programs and dollar amounts Data/results in the form exactly received from the Center for Priority-Based Budgeting 3OGG;LS I@ &CH;H=? #IGGCNN?? 2?PC?Q 0LI=?MM Staff provided a summary of work done by the Finance Committee this year to address financial matters related to both the Public Safety Plan and the 2019-2020 budget. The Committee discussed many aspects including debt capacity, bonds, impact fees, land sales, REET 1, general fund operations, capital project re-prioritization, and new revenue opportunities including B&O, gambling tax, business license fees, and more. Once a decision was made about the Public Safety Plan in June, the Committee turned to the biennial budget to consider how to address the loss of City Council 2019-2020 Budget Work SessionOctober 24, 2018Page 2 streamlined sales tax mitigation payments and flattening sales tax. Administration was anticipating a shortfall of nearly 2 million in 2019 and nearly 3 million in 2020. Based on the work done in Committee, both department reductions (3% for most departments, 1.5% for Police and Fire) and $1.8M new revenues in the form of increases to gambling tax and the business license fee. The Finance Committee has not made a formal recommendation on either, and the full Council will continue to discuss both options in November. An open house for the business community is being held on October 29 from 4:30-6:30 p.m. in City Hall. 2?P?HO? 5J>;N? Staff presented a revenue update based upon results through September 30, 2018. As a result, the 2018 projected and 2019 and 2020 budgeted sales tax amounts have been increased by $650K. Year-to-date actual sales tax exceeded budget by $132K, 1% over the annual budget, and over the prior year same period by $1.26M. In addition, based on the preliminary 2019 property tax worksheet from King County, new construction property tax is $250K more than originally budgeted. Expenditures are line with the original projects except for a $350K settlement cost and $300K of Police budget savings authorized to purchase four SWAT vehicles. Ending fund balance in t is $2,794,345 in 2019 and $3,416,261 in 2020. Since unexpected revenues for 2019 and 2020 total $950K per year, the revised budget gap is estimated at $900K for 2019 and $1.8M for 2020. #IOH=CF $CM=OMMCIH Councilmembers discussed these concepts at length, focusing on trade offs and opportunities. Ideas that surfaced included: Stairstep implement the increase to the business license fee Capital needs, short and long-term, including an Administration recommendation when appropriate Phase in of gambling tax Exempt cardrooms from the business license fee increase if Council approves the 1% gambling tax increase. Profit threshold to apply 11% gambling tax Councilmembers also discussed potential options for funding, and ideas that surfaced included: Pedestrian crosswalk near the Abu Bakr Islamic Center Swings at Cascade View Park Enhancements to senior programming Dog parks Enhancement to safety in school zones, including traffic cameras Completing/implementing Tukwila International Boulevard CNU recommendations Revisit Council priorities that emerged in previous work sessions Additional savings Councilmembers discussed next steps in reviewing and adopting the budget, which must be completed by the end of the year. The November 5 Regular Meeting will include the gambling tax proposal as well as an updated six-year plan factoring in the new revenue information. The City Council 2019-2020 Budget Work SessionOctober 24, 2018Page 3 November 13 Committee of the Whole will include the business license fee proposal and the budget public hearing. The Council requested that Department Directors make themselves available at the next several meetings to answer questions about their budgets. If the Council wishes to move forward with an increase to business license fees, the decision should ideally be made on November 19 so that license renewals can go out timely. Final budget adoption could occur November 19, December 3, or December 10, and meeting agendas will reflect the direction and timing desired by the Council. Summary by LH