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Home My WebLink About2019-02-25 Finance MinutesCity of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes February25, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn Staff: David Cline, Cheryl Thompson, Jay Wittwer, Bruce Linton, Peggy McCarthy, Jeff Friend, Laurel Humphrey CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Grant Amendment: Public Defense Program Staff is seeking Council approval to accept an additional $10,000 from the Washington State Office of Public Defense for additional social work services for the Public Defense Program this year. The original award was for $74,000 split evenly between 2019 and 2020, but additional funds have become available and Tukwila is the first city being offered additional funds. Successful implementation of the funds may help the City receive an increased award for 2020- 2021. Funds are used for investigator services, interpreter services, social work assistance, and additional compensation to conflict public defense attorneys. UNANIMOUS APPROVAL. FORWARD TO MARCH 4, 2019 REGULAR CONSENT AGENDA. B. Preliminary December 2018 Year -End Financial Report Staff presented the Committee with a preliminary financial update through December 2018, describing the general state of departmental expenditures and highlighting trends. General Fund expenditures totaled $61.4 million, which is $7.2 million below budget. All departments ended the year under budget. Chair McLeod pointed out that the purchase of four SWAT vehicles causing the Police Department's Rentals and Leases to be over budget was offset by budget savings elsewhere in the department. DISCUSSION ONLY. C. Sales Tax Mitigation Staff updated the Committee on sales tax mitigation payments and offsets. The City receives approximately $1.15 million annually in state streamlined sales tax mitigation funds, but legislation was enacted last year to end these payments effective after September 2019. In 2018 the City received just $158,764 from voluntary remitters and the Marketplace Fairness Act, which does not adequately offset the mitigation payments. The City is involved with lobbying efforts to recommend that the state continue funding of the mitigation payments. A cross -departmental team is reviewing sales tax implications such as whether sharing a zip code with other cities impacts Tukwila's revenues. This committee will report its findings in March. DISCUSSION ONLY. Finance Committee Minutes February 25, 2019 D. 2018 Cash & Investment Report Staff presented the 2018 Cash & Investment Report, which provides portfolio information as of December 31, 2018. The portfolio totaled $83 million comprised of $58 million in cash and cash equivalents and $25 million in longer term investments. An $18 million reduction is attributed mainly to Public Safety Plan investments as well as the 42nd Avenue South and 53rd Avenue South street improvements. 2018 investment earnings of $1.58 million represents a 60% increase over the 2017 total. DISCUSSION ONLY. E. Marijuana Retail Chair McLeod stated that he would like the Committee to spend time reviewing pros and cons of expanding opportunities for marijuana retail establishments. It has been a few years since legalization was enacted and the City's current zoning was put into place, and the information should be reviewed to see what has changed. Committee members discussed information they would like to surface, including other cities' experiences, public safety concerns, crime statistics, financial impact, and changes to state law or implementation. RETURN TO COMMITTEE. III. MISCELLANEOUS Staff handed out copies of the sales tax revenue earned through December 2018. Total sales tax revenue increased $96,182 over the same period last year, with construction sales tax up $29,421. The full report will be presented in March. Adjourned at 6:29 p.m. Committee Chair Approval Minutes by LH