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Home My WebLink About2019-01-28 Finance Minutes City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes *;HO;LS ǴǺț Ǵǲǳǻ ǷȜǵǲ JȚGȚ (;T?FHON #IH@?L?H=? 2IIGț #CNS (;FF Councilmembers: Thomas McLeod, Chair; Verna Seal, DeSean Quinn Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Bruce Linton, Jeff Friend, Aaron Williams, Laurel Humphrey CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II.BUSINESS AGENDA A. Resolution: Business License Exemption for Outside Contractors Staff is seeking Council approval of a resolution that would update the business license fee schedule to exempt businesses without a physical presence and where gross revenue does not exceed $2,000. Following the adoption of this resolution the City can official transition the business license function to the State effective March 28, 2019. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 11, 2019 COMMITTEE OF THE WHOLE. B. Ordinance: Correcting General Fund in the 2019-2020 Biennial Budget Staff is seeking Council approval of an ordinance that would correct a math error in the previous budget adoption ordinance, wherein $900k in property tax and sales tax revenue were not reflected per the Councils direction. Once corrected, the final budget books will be printed and distributed. Chair McLeod asked if this error would result in any process changes. Finance staff is planning to reevaluate and improve the internal budget development process overall. Staff asked for Committee permission to bypass Committee of the Whole in order to expedite the distribution of the budget books. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 4, 2019 REGULAR MEETING. C. November 2018 General Fund Expenditure Report Staff presented the Committee with a financial update through November 2018, which describes the general state of departmental expenditures and to highlight significant trends. General Fund expenditures totaled $54.6 million as compared to the allocated budget of $57.9 million. When compared to the allocated budget, Human Resources, City Attorney, Court, Fire and Technology & Innovation Services are above budget. It is expected that when compared to the full budget at year-end these departments will be near or below budget. Staff will bring the preliminary December report to Committee when available, then present the year-end report to the full Council. DISCUSSION ONLY. &CH;H=?#IGGCNN?? -CHON?MȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚȚ*;HO;LS ǴǺț Ǵǲǳǻ rd D. 2018 3 Quarter Sales Tax and Miscellaneous Revenue Report Staff presented the 2018 Third 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 $811K or 18% over the same period last year. Construction related sales tax accounted for $26K while all other industries accounted for an increase of $785K when compared to the same period in 2017. Sales tax collections through the third quarter 2018 are $1.4 million, or 8%, more than the first three quarters of the prior year. Actual sales tax collected in the third quarter was $364k greater than anticipated. An internal cross-departmental team has been formed to evaluate sales tax issues, such as other cities methodologies and if the shared zip code interferes with appropriate revenue. Chair McLeod referenced the planned changes at Northgate and expressed hope that Tukwila would be able to anticipate significant changes with regard to its retail landscape. DISCUSSION ONLY. E. 2018 Finance Committee Work Plan Committee members and staff discussed a preliminary work plan for the year ahead. Committee members requested priority-based budgeting activity starting in the first quarter, including an information update of the work ahead. Staff noted that the banking RFP will likely move to 2020. Chair McLeod stated that he would like the Committee to discuss a philosophy around funding human services. Councilmembers Seal and Quinn stated support for revisiting overall financial policies and goals, and staff state that these could be addressed as part of the financial health/sustainability model discussion item. III. MISCELLANEOUS Adjourned at 6:21 p.m. Committee Chair Approval -CHON?M <S ,(