HomeMy WebLinkAbout2019-09-23 Finance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
September23, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn
Staff: David Cline, Vicky Carlsen, Jay Wittwer, Bruce Linton, Juan Padilla, Erika Eddins,
Wynetta Bivens, Gail Labanara, Aaron Williams, Henry Hash, Trish Kinlow, Tony
Cullerton, 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. Resolution: Cancellation of Uncollectable Accounts
Staff is seeking Council approval of the annual resolution that would declare the cancellation of
uncollectible accounts receivable. The total for this year includes Police Department false alarm
fees equaling $2,350.00 and miscellaneous billings equaling $50,840.56 for a total of $53,190.56.
This is an accounting practice that will reduce the accounts receivable balance but these
accounts are still being actively worked for collection, except for those accounts where a
responsible party cannot be identified or accounts covered by bankruptcy law. Chair McLeod
asked that the memo be updated to include historical data for the past few years. UNANIMOUS
APPROVAL. FORWARD TO OCTOBER 7, 2019 REGULAR CONSENT AGENDA.
B. Resolution: Cancelling Abandoned or Unclaimed Property
Staff is seeking Council approval of the annual resolution that would declare the cancellation
of abandoned or unclaimed property that is owed to individuals or business owners in time for
reporting to the Washington State Department of Revenue Unclaimed Property Section by
November 1, 2019. This year's report includes the cancellation of outstanding claims in the total
amount of $10,150.18. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 7, 2019 REGULAR
CONSENT AGENDA.
C. 2019 2nd Quarter Financial Report
Staff presented a summary of the 2019 2nd Quarter financial report, including budget variances,
sales and property tax and other revenues, expenditures, departments, fund balance, special
revenue funds, capital projects, enterprise funds, and internal service funds. Through June 30,
2019, General Fund revenues exceed expenditures by $617 thousand. General Fund revenues
were $178 thousand over allocated budget and expenditures were under allocated budget by
$156 thousand.
Finance Committee Minutes September23, 2019
The Committee asked that the Summary section include a few more sentences highlighting
trends and possible long-term impacts to the budget, such as the downward trend for telephone
tax. Chair McLeod noted that Foster Golf is over allocated budget and he hopes there is a plan to
finish the year within budget. DISCUSSION ONLY. FORWARD TO OCTOBER 14, 2019
COMMITTEE OF THE WHOLE.
D. Non -Represented Employees' Compensation
Staff updated the Committee on the status of Resolution 1951, which modified and restated the
employee compensation policy. The update included new reporting requirements, expanded
the number of comparable cities, adjusted the guidelines on positions more than 5% below or
10% above market, simplified language around compression, and added annual policy review.
Staff reviewed the status of implementation of the provisions of Resolution 1951 as described in
the memo. Staff noted the limitations of the Association of Washington Cities' annual salary
survey and asked if there was committee interest in either polling comparable cities for
information on each non -represented position or contracting with an outside firm. The
Committee asked staff to return with the cost benefit of both options. Staff recommends
moving away from a Decision Band Method (DBM) compensation system to a market -based
system and will return with a proposed process to explore this option. RETURN TO COMMITTEE
OCTOBER 14, 2019
E. Cash & Investment Report
Staff presented the 2019 1st and 2nd Quarter Cash and Investment Report, including information
on the City's portfolio components, performance, policy compliance and liquidity analysis, fund
cash and investment balances, and investment environment. At June 30, 2019, the portfolio
totaled $69.3 million comprising $50.6 million in cash and cash equivalents and $18.7 million in
longer term investments. Investments are within the standards of the City's Investment Policy,
which staff intends to review and update in 2020. DISCUSSION ONLY.
F. RCW 35.103 Fire Departments - Performance Measures
Chair McLeod stated that the Committee intends to increase standards of accountability for the
Fire Department and its budget. He referenced the requirements in the Revised Code of
Washington regarding the service delivery objectives policy statement and the annual report.
He also referenced a performance measures compliance guide issued by the Washington State
Council of Firefighters and the Washington Fire Chiefs Association, asking if City Administration
was familiar with the guide. Staff is familiar with the guide and also plans to bring a memo and
discussion on service levels to the next Committee meeting, including information about
compliance with the annual reporting requirement. Committee members and staff discussed
the process for billing false alarms, which has not been done yet. The process allows the first
two false alarms free, so it will take some data analysis. Fire and Finance are working together
on implementation. Councilmember Quinn said he is interested in clarity and additional
reporting mechanisms to better equip the Council going into budget review. Councilmember
Seal stated the Council needs a clear understanding of the cost of fire service and yearly budget
amendments should not continue. Chair McLeod closed by commenting an effective annual
report will be a good tool for Council as well as the community. RETURN TO COMMITTEE.
Finance Committee Minutes September23, 2019
III. MISCELLANEOUS
Adjourned at 6:41 p.m.
. Committee Chair Approval
Minutes by LH