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FC011422 SpecialSPECIAL FINANCE COMMITTEE MEETING January 14, 2022 Elected Officials Participating Virtually Staff Participating Virtually Councilmember Diane Buckshnis (Chair) Dave Turley, Finance Director Councilmember Will Chen Megan Menkveld, Assistant Finance Director Scott Passey, City Clerk Jeff Taraday, City Attorney 1. CALL TO ORDER The Edmonds City Council special virtual online Finance Committee meeting was called to order at 2:00 p.m. by Councilmember Buckshnis. 2. COMMITTEE BUSINESS 2. Eden Replacement (Continued) Ms. Menkveld reviewed recommendation considerations: • Timing o Council o Eden Risk o ARPA o Implementation estimate o Market concerns • Alternatives o OpenGov o Munis o Springbrook • Reference Checks - OpenGov o All three references very valuable and overwhelmingly positive • Staff Effort o Requires a lot of effort • Change Management o Directors o Workgroup • Only OpenGov (12 — 15 months) • Only Munis (24 to 28 months) o Or other ERP • OpenGov budget plus Munis ERP o Budget suite 5 months o ERP (x months) • OpenGov o Upfront work — so many hours o Excellent communication and responsiveness o Mission driven, collaborative, transparent approach o Staff — so much staff ■ Budget manager for Minneapolis ■ Support staff includes several priority city staff and OpenGov customers o References ■ "Every customer feels like they're their only, favorite customer." • Munis 01/14/22 Special Finance Committee Minutes, Page 2 o No upfront work 0 2.5-day demonstration February 9-11 o Over a month lead time plus 28-month implementation timeline o Not a compelling partnership Springbrook o No response o Duvall is moving from Springbrook to OpenGov A system we can use and understand o Prefer an Intuitive system ■ User -friend report filters and customizations ■ Web -based and on -demand ■ Staff can change code settings, see change logs, leave notes o Instead of a Programmed system ■ Requires ERP system expertise ■ Staff sends requests to someone who writes reports using a tool like Crystal Report ■ SQL or other programming language ■ "Green -Screen" ■ Customizations cannot be upgraded uniformly Recommendation o By January 25, 2022 ■ Full Council Presentation: proposal to waive RFPs ■ Full Council presentation: OpenGov Budget Suite with agreement o February 1, 2022 ■ Approve waiver of RFPs ■ Approval for Mayor to sign OpenGov Budget Suite Agreement o Finance Committee March 8, 2022 ■ ERP evaluation status ■ Project manager search status ■ Recommendation for product selection and project manager ■ Next steps with full Council Questions and discussion followed regarding concern interviewing Munis in February will delay OpenGov, funds available from ARPA funds, scoping meeting with OpenGov next week, why a new system is being considered, Eden (owned by Tyler) now offering Munis, considering OpenGov budget module because City does not currently have a budget module, advantages of staying with the same company's product, reason to waive RFP, whether it is better to have complete ERP system with one company, Munis versus OpenGov, pursuing OpenGov budget module and continuing to research OpenGov and Munis ERP, support for transparency provided by OpenGov, OpenGov test environment, the need for a project manager for either ERP but not for OpenGov budget module, and the City Attorney's Office researching use of ARPA funds and waiving RFP. Appropriation of additional ARPA funds will be added to next month's Finance Committee agenda. Action: Full Council on January 25 and Feb 1. 1. November 2021 Monthly Financial Report Mr. Turley reviewed: • Noteworthy items o REET is up $1,666,307 from this point in time last year o Real Property/Property Tax is up $75,857 from this point in time last year o EMS property tax is up $68,860 from this point in time last year o Sales Tax is up $1,904,891 from this point in time last year o Plan Checking Fees are up $167,751 from this point in time last year; development services revenues overall are up $259,855 from this point in time last year o Parks & Recreation program fees are up $322,388 from this point in time last year 01/14/22 Special Finance Committee Minutes, Page 3 o We are now at 92% of the year completed; all funds and department are within or under budget January - November o General Fund Revenues ■ 3.4% ahead of budget, or $1,363,289 more than planned o General Fund Expenses ■ 8.23% under budget or $3,432,922 less than budgeted General Fund o Cumulative budget forecast: $68,185,977 o YTD Actuals $38,282,347 January- November Revenues and November 30 Cash Balances Revenues January -November 2021 016 Facilities Maintenance — Bond proceeds $4,400,000 332 Parks Construction — Bond proceeds $1,634,447 Total Bond proceeds $6,034,447 142 ARPA Fund $5,991,438 126 REET 1 $2,400,000 125 REET 2 $2,400,000 421 Water Fund $14,800,000 422 Storm Fund 8,600,000 423 Sewer/WWTP Fund 24,700,000 001 General Fund $41,500,000 Total $106,425,885 Cash Balances, November 30 Snohomish County Co Investment $42,308,731 Pool WA State Investment Pool $19,924,805 Bonds/Certificates of Deposit $16,178,516 $84,211,332 *Does not take into account fund -to -fund transfer or other minor revenue streams, including transportation grants *Numbers from monthly budgetary/financial report through November • 2021 Sales Tax Revenue o Quick look at Sales Tax ■ Sales Tax received through November 30 $9,423,112 ■ Sales tax received in December $874,396 ■ Total sales tax 2021 $10,302,508 ■ Budgeted sales tax for 2021 $8,600,000 ■ Additional received (more than budget) $1,702,508 • Looking forward: Requests for policy reviews in 2022 o Risk Fund - $25,00 budget to pay small claims from o Fund Balance Policy o Investment Policy o BID/ED! Policies o Expense Reimbursement Policy o Leak Adjustment Policy Questions and discussion followed regarding whether underspending is due to not enough staff or efficiency in spending control, opportunities for using excess funds, past resolution that dedicated a portion of REET funds to Parks, funds that have increased the cash balance (ARPA, bond proceeds, etc.), and ability of OpenGov utility billing to split rates between years. Action: Consent Agenda 3. ADJOURN The meeting was adjourned at 2:59 p.m.