HomeMy WebLinkAbout2019-05-28 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
May 28, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn
Staff: David Cline, Vicky Carlsen, Chris Flores, Jake Berry, Juan Padilla, Rachel Bianchi,
James Booth, Jason Konieczka, Laurel Humphrey
CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. 2018 Year -End Financial Report
Staff presented a summary of the 2018 year-end financial report. Total General Fund revenues
of $64 million exceeded total General Fund expenditures of $62.5 million by $1.5 million.
Unreserved fund balance in the General Fund increased from $11.9 million in 2017 to $13.3
million at the end of 2018, sales and use tax increased $1.8 million over 2017, all General Fund
departments finished under budget, the value of building permits increased $30.1 million over
2017, and the reserve policy was met. DISCUSSION ONLY. FORWARD TO JUNE 10, 2019
COMMITTEE OF THE WHOLE.
B. Fire Department Financial Update
Staff presented an overview of the current and historical Fire Department budget, staffing, and
service levels. The Fire Department is anticipated to be over budget, and staff will return with a
projected year-end model for the Committee to discuss. Preliminary possible policy options to
keep the Fire Department within budget would be to increase budget/revenues to support the
current level of service/staffing, or to adjust service/staffing. More information about call
statistics will be brought back to the Committee for review. Committee members discussed the
information and staff will return with additional information regarding vacation policies, long-
term disability trends, and previous justifications for budget issues in the department. Chair
McLeod stated that he would like this Committee to address the Fire Department budget issues
this year and he would like Fire Department collaboration on the solution. DISCUSSION ONLY.
C. Fire Station 52 Funding
Staff presented an update on the status of Fire Station 52, which is now through schematic
design. The construction budget is estimated to over budget by $4.23 million including sales tax
and contingency. The most volatile costs on the project are associated with earthwork, so the
project team has chosen to include a 30% contingency, over $1 million. Final numbers will be
known once the bid results are received and compiled. The Public Safety Committee discussed
the project at its last meeting and agreed with staff's recommendation for the Finance
Finance Committee Minutes May 28, 2019
Committee to consider funding options and provide a recommendation to the full Council.
Options available include Streamlined Sales Tax (SST) Mitigation payments, estimated at around
$4 million over the next four years. These were unexpected and unbudgeted and would be
appropriate to use for a one-time cost. Other options include unallocated Fire Impact Fees,
contingency, ending fund balance, additional debt, and dedication of project sales tax.
Committee members expressed initial support for using the SST funds and directed staff to
return with a model reflecting that scenario. DISCUSSION ONLY. RETURN TO COMMITTEE.
III. MISCELLANEOUS
Adjourned at 6:39 p.m.
till Committee Chair Approval
Minutes by LH