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FC030822FINANCE COMMITTEE MEETING March 8, 2022 Elected Officials Participating Virtually Staff Participating Virtually Councilmember Diane Buckshnis (Chair) Dave Turley, Finance Director Councilmember Will Chen Rob English, Acting Public Works Director Susan McLaughlin, Development Services Director Councilmembers in Audience Doug Merriman, Interim Comm. Serv. & Econ. Dev. Dir. Council President Olson Ange Feser, Parks, Rec., Cultural Arts & Human Serv. Dir. Shannon Burley, Deputy Parks, Rec., Cultural Arts & Human Serv. Dir. Thom Sullivan, Facilities Manager Jeff Taraday, City Attorney Scott Passey, City Clerk 1. CALL TO ORDER The Edmonds City Council virtual online Finance Committee meeting was called to order at 6:02 p.m. by Councilmember Buckshnis. 2. COMMITTEE BUSINESS 4. ARPA Funding Status Mr. Merriman reviewed graphs illustrating expenditures, commitments and funds allocated by account: A. Total ARPA Funds Total ARPA Funds - $11,893,099 $80,288 A -City Expenditures-6.3% 1 $90,474 — $7 0,000 B - Household Support - - $299,129 34.9% C - Business Support -9.5% D - Nonprofit Support - 4.2% $199,999 E-Job Retraining-5.0% $6t $6( F - Green Infrastructure - 40.1% $4,150,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 0 Expenditures Commitments 0 Funds Allocated - Account 03/08/22 Finance Committee Minutes, Page 2 B. Household Support Subcategories B - Household Support Subcategories - $4,150,000 $0 Housing Repair Support- $0 24.0% $1,000,U00 $5,443 Utility Bill Support -3.6% $50,000 $150,010 $29 ,686 Household General Support- $1 OW 000 72.4% $3,000,000 $0 $500,WO $1,000,000 $1,500,000 $2,000,000 $2,500,000 53,000,000 $3,500,000 ■Expenditures ■Commitments ■ Funds Allocated C. Business Support Subcategories C - Business Support Subcategories - $1,125,000 164,161 Small Business Support - 55.6% $501,661 $625,00 $49, 6 Tourism Support - 26.6% $49, 9 $300,000 $11,212 General Business Support- $11,227 17.6% $200,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $6W,OW $700,000 ■ Expenditures Commitments ■ Funds Allocated Questions and discussion followed regarding how the green infrastructure allocation would be used and whether there was sufficient staff for implementation, an RFP that was issued regarding green streets, first right of refusal for the Unocal property, whether some of the allocations could be reassigned, increasing non-profit support, whether the parameters for subcategories like housing repair support or general business support could be changed, whether any of the ARPA funds could be used for Plum Tree Plaza businesses damaged by fire, support for adding funds to job retraining, confirming whether colleges have distributed job retraining funds, eligibility requirements for job retraining funds, cumbersome federal guidelines for distributing ARPA funds, adopting the Treasury Department's newest sets of guidelines to expedite distribution, whether allocation to some categories needed to be increased, human service's focus on prevention, and whether information regarding ARPA fund availability is provided in multiple languages. Action: Mr. Merriman and Ms. Burley discuss and determine whether to return to Finance Committee or to full Council. 03/08/22 Finance Committee Minutes, Page 3 1. 2022 Carryforward Budget Amendment Mr. Turley reviewed the budget amendments: 1. Unspent ARPA Funds 2. Equipment Purchase Carryforward (Administrative Services/Information Technology) 3. Brackett's North Restroom Repair 4. EAC Create Grant Program 5. Civic Park 6. Greenhouse 7. City Walkway Pedestrian Safety Project 8. Street Tree Plan 9. Climate Action Plan Update (ESA) 10. Climate Action Plan Public Engagement 11. Canopy Assessment (SaveATree) 12. Highway 99 Community Renewal Plan 13. 175th Slope Repair (E21 FB/c560) 14. Dayton Street Stormwater Pump Station 15. Seaview Infiltration Facility Phase 2 16. Storm Maintenance Project Phase 2 17. Storm Maintenance Project Phase 3 18. Utility Fund Reserve Policies 19. Phase 3 Sanitary Sewer CIPP 20. Phase 7 Sewer Replacement 21. Phase 9 Sewer Replacement 22. Phase 11 Waterline Replacement 23. Phase 12 Waterline Replacement 24. 2021 Traffic Calming Program 25. Citywide Pedestrian Crossing Enhancements 26. Highway 99 Revitalization & Gateway - Stage 2 27. Elm Way Walkway from 8th Ave. S to 9th Ave. S 28. 2021 Guardrail Program 29. 84th Ave. W Overlay from 220th St. SW to 212th St. SW 30. 2021 Overlay Program 31. WWTP Capital Carryforward to complete carbon recovery project Mr. Turley responded to questions regarding completion of the Highway 99 Community Renewal Plan, location of the Seaview infiltration project, and details about the traffic calming program and why there was a carryforward. Mr. Turley relayed the total effect of the amendments is a $9.2 million increase in revenue and $22.1 million increase in budgeted expenditures. Action: Schedule for full council for 30 minutes. 2. 2021 Disposed Assets Mr. Turley explained these are assets that have been on the books for up to 40 years. For example, the cost to build the Civic Center basketball court decades ago was $19,700; that was capitalized and has been on the books for 30 years. As the new Civic Park is built, the basketball court was removed which is considered disposal of an asset. Staff makes a list of the assets that are disposed of and informs council of their disposal. Most of the capital assets on the list are disposed of, not sold. Vehicles will typically be sold at auction and the proceeds returned to the original funding source such as the 511 B Fund. 03/08/22 Finance Committee Minutes, Page 4 Action: Consent Agenda 3. January 2022 Monthly Financial Report Mr. Turley reviewed: • Noteworthy items o Fund 001 revenues are down $499,256 from this point in time last year. This is primarily due to a "DOC Frances Anderson Center roofing" grant received in January 2021 and DS revenues being down a total of $80,966 from this point in time last year o REET Revenues are down a total of $247,946 from this point in time. REET revenues for the month are still at a high level, but they are down compared to last year because January 2021 was an exceptionally big month o The difference for Fund 422 is primarily due to a grant reimbursement in January 2021 o Sales tax is up $83,574 from last January • January — December Change in Sales Tax Revenue by Category o 2021 came in $1.99 million more than 2020 January 2021 compared to January 2020 Change in Sales Tax Revenue by Category o January 2021 came in $83,674 more than January 2020 Total Sales Tax Revenues for 12 month ended January 31, 2022 o Retail Food stores - $341,587 o Automotive Repair - $221,808 o Retail Automotive - $2,520,049 o Manufacturing - $131,412 o Gasoline - $39,762 o Eating & Drinking - $1,068,982 o Health & Personal Care - $260,438 o Others - $244,903 o Construction Trade - $1,601,406 o Clothing & Accessories - $335,738 o Amusement & Recreation - $58,280 o Misc. Retail - $1,847,363 o Wholesale Trade - $356,025 o Communications - $240,836 o Accommodation - $39,088 o Business Services - $1,078,515 Questions and comments followed regarding strong sales tax in all categories, amount of the utility rate increase in 2022, and compliments on the investment portfolio. Action: Consent Agenda 3. ADJOURN The meeting was adjourned at 7:16 p.m.