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HomeMy WebLinkAbout2011-09-20 Finance and Safety MinutesCity of Tukwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes September 20, 2011— 5: 00 p.m.; Conference Room #3 PRESENT Councilmembers: Kathy Hougardy, Chair; Joan Hernandez and Dennis Robertson Staff: Shawn Hunstock, Derek Speck, Peggy McCarthy, Jennifer Ferrer -Santa Ines, Katherine Kertzman, Ashley Comar, Gail Labanara and Kimberly Matej CALL TO ORDER: Chair Hougardy called the meeting to order at 5:01 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Advertising Agreement: Seattle Southside and Bonneville International Staff is seeking Council approval to enter into a multi -year agreement with Bonneville International for multi -media (on -line and radio) advertising for Seattle Southside Visitor Services (SSVS) in an amount not to exceed $84,000. This advertising campaign will run November 2011 through December 2012, and is funded jointly by SSVS cities of Tukwila, SeaTac, Kent and Des Moines. Both Tukwila Lodging Tax Advisory Board and SeaTac Hotel Motel Tax Advisory Committee have reviewed and approved this agreement. All costs for this agreement are funded through lodging tax funds and not general fund monies. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 26 COW FOR DISCUSSION. B. Re- Funding: 2003 General Obligation Bonds Staff is seeking Council approval to re -fund general obligation bonds from 2003 (original amount of $12,050,000) that were issued for arterial street capital improvements, South Park Bridge transfer and the golf course clubhouse. Decreasing interest rates have made it more cost effective for the City to refinance/re -fund bonds such as these from 2003. Re- funding the remaining amount of the bonds will save the City approximately $337,000. There was brief discussion at the Committee of possibly paying off the bonds for the golf course, and only re- funding the arterial streets portion. Staff commented that regardless of the Council's decision, the golf course bonds cannot be paid off until December 1, 2013. However, re- funding could include options with callable bonds and other possibilities. Committee Members requested that Finance staff provide a table that identifies the options for what can be done with the bonds relative to the golf course and explain it in greater detail at the upcoming Budget Work Session on Tuesday, September 27, 2011. NO COMMITTEE RECOMMENDATION. FORWARD TO SEPTEMBER 26 COW FOR DISCUSSION. C. Pavoff: Earlv Redemption of 1995 Revenue Bonds As information only, staff updated Committee on an item that was previously reviewed by Utilities Committee and is moving forward for Council discussion on September 26, 2011. Staff is seeking Council approval for an early redemption of Revenue Bonds originally issued for $4,500,000 from 1995. If approved, this early redemption will result in the payoff of the revenue bonds three years earlier than scheduled. The payoff face value is currently $1,370,000 and the early payoff will Finance Safety Committee Minutes Seotember 20.2011— Paae 2 save the City approximately $150,000. Payoff monies will come from the Fund 401 Water, which was the same fund financed by the original bonds for capital improvements. INFORMATION ONLY. D. Revenue Generating Resulatory License (RGRL) Non Profit Fee Analvsis At Committee request (see Finance Safety Committee minutes dated June 7, 2011), staff is returning to provide additional information on RGRL fee impacts and non profit businesses. Currently, non profit entities are exempted from the City's RGRL fee. If the City withdrew this exemption, the City would collect approximately $147,000 in additional RGRL fees from the 76 non profit businesses located/operating within the City. Staff provided a calculation breakdown based on employee threshold. The fee collections are provided below: RGRL revenue from all non profits $146,740 RGRL revenue from non profits with more than 20 employees $132,990 RGRL revenue from non profits with more than 50 employees $117,755 RGRL revenue from non profits with more than 75 employees $113,960 RGRL revenue from non profits with more than 100 employees $113,960 Due to the impact of any decision on this item, Committee Members felt that it would be most beneficial for the entire Council to have a discussion on the current exemptions and any possibility of implementing thresholds. NO COMMITTEE RECOMMENDATION. FORWARD TO SEPTEMBER 26 COW FOR DISCUSSION. III. MISCELLANEOUS Based on recent conversations within the community, Committee Member Robertson suggested that the Committee consider a future discussion of individual neighborhood needs and wants and working towards addressing them as appropriate (i.e.: public safety focus, clean -up). Meeting adjourned at 6:25 p.m. Next meeting: Tuesday, October 4, 2011 5:00 p.m. Conference Room #3 �Q� Committee Chair Approval MinUes by KAM. Reviewed by SH.