HomeMy WebLinkAboutFC031020Minutes
FINANCE COMMITTEE MEETING
March 10, 2020
_________________________________________________________________________________
Elected Officials Present Staff Present
Council President Fraley-Monillas Scott James, Finance Director
Councilmember Vivian Olson Dave Turley, Assistant Finance Director
Councilmember Luke Distelhorst Phil Williams, Public Works Director
Jerrie Bevington, Recorder
The meeting was called to order at 7:10 p.m. in the Jury Meeting Room. The agenda was amended to
reverse the order of Items 1 and 2.
2. 2019 Transportation Benefit District Report
Mr. Williams reviewed:
• Edmonds City Council formed TBD on November 18, 2008
• TBD Board enacts $20/year fee with Ordinance No. 1 on February 17, 2009 limiting the use of
funds collected to maintenance and preservation of streets and related traffic controls assets
• Legislature created opportunity three years ago to allow Councilmanic adoption of additional
$20 which the Council has not done
• Funds collected
o 2012 $640,994
o 2013 $670,435
o 2014 $623,111
o 2015 $687,421
o 2016 $701,467
o 2017 $692,589
o 2018 $716,013 + $43,181 in additional qualifying expenditures = $759,194
o 2019 $689,668 + $26,345 in additional qualifying expenditures = $176,013
• Schedule of Revenues, Expenditures and Changes in Fund Balance 1/1/19-12/31/19
Revenues
$20 Vehicle Registration Fee $689,668
Total Revenues $689,668
Expenditures
Road Maintenance (includes repairs, patching, crack sealing)
Labor & Benefits 149,090
Supplies 36,089
Traffic Control
Labor & Benefits 190,949
Supplies 170,895
Total Expenditures $689,668
Net Charge in Fund Balance --
Fund Balance - Beginning --
Fund Balance - Ending --
[1] A additional $26,345 in expenditures were eligible for reimbursement from this funding source, however, due to
funding constraints, these expenditures were absorbed by Fund 111 – Street Fund
o Some jurisdictions use their TBD funds in other ways as allowed by statute
03/10/20 Finance Committee Minutes, Page 2
o Funds collected are about 40% of street maintenance budget
• 2020 Paving Program
o Total $799,492.70
o Revenue & Expense
Revenue Expense
Fund 112-Street $ 400,000 Streets
Fund 125-REET 2 250,000 Employee time $ 50,000
Fund 126-REET 1 450,000 Pave Cnsltnt-Design 48,000
Budget Amendment1 Pave Cnsltnt-Construct 10,000
Fund 112-Street 46,157 Construction 740,000
Fund 125-REET 2 96,188 Contingency 74,000
Fund 126-REET 1 92,655 Constr Mgmt 88,800
Subtotal1 $235,000 Dayton 93,000
Total Pavement Budget $1,335,000 2021 Design 50,000
Total Funding $1,335,000 TOTAL $1,153,800
1 The $235,000 will be requested in a first quarter budget amendment.
• Map of 2020 Overlay Program
Mr. Williams responded to questions regarding collection of Traffic Impact Fees (TIF) and a past
decision not to collect TIF when businesses change in the downtown core.
Mr. Williams reported on the status of I-976 which was challenged on constitutional grounds by King
County, Seattle and the Garfield Transportation Authority and requesting an injunction. The judge
granted the injunction which usually signals the likelihood of the appellants eventually prevailing.
Supporters of I-976, represented by the Washington State Attorney General, appealed to the
Supreme Court and the Supreme Court upheld the injunction. The judge issued a partial decision that
largely favored the initiative, but leaving two issues to be decided, 1) Burien issued bonds pledging
TBD revenues to pay the bonds and whether it was legal for a subsequent initiative to interfere, and
2), the initiative set vehicle valuation based on Kelley Blue Book; the judge was concerned with a third
party, non-government controlled/influenced method of establishing value.
Mr. Williams explained the judge is likely to decide those issues by the end of the month. Regardless
of his decision, it will be appealed to the Supreme Court which will likely take until the end of 2020. If
the case is ultimately lost, there is a possibility that the monies collected between when I-976 would
have been effective (December 5, 2019) and the date of the final decision will have to be reimbursed.
He commented on the impacts to the City’s Street fund if the TBD is eliminated as a future funding
source and those funds are required to be reimbursed.
Action: Brief presentation to full Council
1. January 2020 Monthly Financial Report
Mr. Turley and Mr. James highlighted:
• January is 8% through the year
• REET revenue is above budget
• Affordable and Supportive Housing Fund revenues will total approximately $70,000 in 2020;
use of those funds has not yet been determined
• Some expenditures budgeted in Fund 332 (Civic and Waterfront Redevelopment) will not
occur until 2021
Mr. Turley and Mr. James responded to questions and discussion followed regarding revenues by
fund, transfers, differences in Combined Street Construction/Improvement 2019 compared to 2020,
03/10/20 Finance Committee Minutes, Page 3
use of the scholarship fund, street and curb permit revenue, criminal justice-special programs
revenues, parks donations, Police and Streets overtime, developing a policy for the use of the
Cemetery Maintenance Trust Fund, source of funds in the Cemetery Maintenance Trust Fund,
insurance expenditures paid annually, LEOFF medical insurance, benefit costs, repair and
maintenance costs, ECA contribution, rental/lease, Equipment Rental Fund, increase in professional
services in Facilities, impact on sales tax from the coronavirus, decreasing telephone utility tax, higher
than budgeted HR expenditures, and the rate of return on investments.
Committee requests included:
• Research use of the Cemetery Maintenance Trust Fund
• Consider renaming the Equipment Rental Fund and separating expenditures
Mr. James invited the committee to identify what they want to see/do in the coming year. Potential
policies include funding and prioritizing projects in the Facility Condition Assessment and Street
Condition Assessment, determining levels of service for building, a budget policy, and a gap closing
policy. A report on how restricted revenues sources are spent was suggested; the committee will
discuss what they want included in that report at a future meeting.
Action: Schedule on Consent Agenda
The meeting was adjourned at 8:40 p.m.