HomeMy WebLinkAbout2019-10-14 Fiinance MinutesCity of Tukwila
City Council Finance Committee
FINANCE COMMITTEE
Meeting Minutes
October 14, 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, Tony Cullerton, Ben Hayman, Brandon Miles,
Laurel Humphrey
Guest: Greg Sherlock, resident
CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Non -Represented Employees' Compensation
Committee members and staff continued discussion of compensation for the 39 non -
represented employees in the city. Since the last discussion, staff completed the analysis, with
the exception of the Fire Chief and Assistant Fire Chief due to the current bargaining with the
IAFF 2088. Only 19 non -represented positions were able to be benchmarked due to limitations
with the AWC salary survey. The analysis shows some positions over market more than 10% and
some under market (up to 4.44%) but does not consider internal compression or non -salary
compensation. Those showing above market may not truly be so due to the limitations of the
decision band system, such as when there is only one benchmark for several different positions
in one band. The average difference across benchmarked positions is 5.57% above market. Staff
recommends a 90% CPI-W, or 1.53% increase in 2020 for all 39 positions in order to maintain the
current market. In addition, staff recommends moving to a market -based compensation system
for non -represented employees to replace the current DBM system. To address the significant
compression between the Commanders and the Deputy Police Chief and Police Chief, staff
recommends the Chief positions receive the same longevity as the Commanders. Committee
members discussed the importance of consistent performance evaluations, impacts to staff,
whether positions above market should be frozen, maintained or lowered, budget implications
for those below market, adherence to the policy requirement of detailed justification for
deviations, and more. Staff will return with a proposed schedule and budget for changing to a
true market -based system. RETURN TO COMMITTEE.
B. Fire Department Service Levels and Compliance with State Law
Committee members and staff continued discussion of Fire Department service levels and
budget. Staff has prepared a draft resolution that would formally adopt the current level of
service in compliance with the RCW, and these adopted service levels could be amended later
Finance Committee Minutes October 14, 2019
if needed. To facilitate consideration of the draft resolution, staff presented comparatives of
expenditures per assessed value and turnout and response times. Tukwila's Fire Department
budget is in the higher median range and consistently has near the best response time metrics
from 2015-2018. The draft resolution would adopt the following current service levels:
• turnout time of 03:01 for fire calls and 02:38 for EMS calls
• response/travel time for the first arriving engine company to a fire suppression
incident of 07:59
• response time for the arrival of the full complement of a 1st alarm response of
09:20
• response/travel time for the arrival of the first emergency medical unit of 07:52
The draft resolution also requires the following services: fire suppression, basic life
support/EMS, rope rescue, structural collapse rescue, confined space rescue, trench rescue,
machinery rescue, swift water rescue, water -craft rescue, floodwater rescue, urban search and
rescue. Chair McLeod stated that the Committee is still planningto address the budget overage
for 2019. Staff is planningto bring the budget amendment ordinance back to Committee, which
includes the Fire Department and will provide time to discuss the request. RETURN TO
COMMITTEE.
C. Declining Utility Tax or other Revenue Streams
Chair McLeod stated that the quarterly financial reports highlight the declining utility tax, which
raises the question of how the City adapts when a revenue source declines or disappears. The
City should be proactive and factor in technology and innovation when considering this. Staff
from Economic Development, Technology & Infrastructure, and Finance participated in the
discussion. Highlights included:
• Diversification of revenue is a proactive strategy that the City is currently engaged
in. For example, sales tax has declined, but Economic Development is focusing on
activities that generate admissions tax, which is beneficial because cities retain the
full amount. Bowling alleys are exempted from paying admissions tax due to state
law.
• During the municipal budgeting process revenue streams are always being
evaluated, and when trends are identified they are adjusted in the next budget cycle.
Finance is working on a 10-year sustainability plan which will take a deep dive into
revenues and expenditures. Tools are being put into place including a citywide fee
schedule, revenue guide, sales tax analysis, and performance measures.
• The role of technology includes broadband infrastructure, asset sharing
agreements, and 5G connectivity. The Rockwood Rising development in Gresham,
Oregon is an example of city investments in innovation. Tukwila is working on an
asset sharing agreement with the Steam company.
Finance Committee Minutes October 14, 2019
Councilmember Quinn stated the importance of collaboration in seizing opportunities and
informing a holistic budgetary approach. Diversification is key because some cities have over -
relied on property tax. Councilmember Seal noted that shopping trends change and she is
looking forward to a sales tax analysis. Chair McLeod said that the City Council should be a
partner in moving innovation forward. The City has a great opportunity with its urban center to
be on the cutting edge. DISCUSSION ONLY.
III. MISCELLANEOUS
Adjourned at 6:50 p.m.
Committee Chair Approval
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