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FC071222FINANCE COMMITTEE MEETING July 12, 2022 Elected Officials Participating Virtually Staff Participating Virtually Councilmember Diane Buckshnis (Chair) Dave Turley, Administrative Services Director Councilmember Will Chen Michelle Bennett, Police Chief Council President Vivian Olson (ex-officio) 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 5:32 p.m. by Councilmember Buckshnis. 2. COMMITTEE BUSINESS 1. Position Conversions to 1.0 FTE for DV Coordinator and Parking Enforcement Positions Chief Bennett explained the parking enforcement officer is currently a .75 FTE and the request is to increase it to 1.0 FTE. The domestic violence coordinator is currently a .5 FTE and the request is to increase it to 1.0 FTE. The reason for the request is realistic staffing levels and it is much easier to fill a full-time position. The City has not had a parking enforcement position for a year; revenues are down and parking complaints continue to arise throughout the City. There is a large gap in services available to victims of domestic violence and for victim advocacy. Domestic violence incidents range up to 400 year which includes some unhoused individuals which the social worker and domestic violence advocate can collaborate on. Questions and discussion followed regarding whether the domestic violence coordinator should be a social worker, differences between a domestic violence advocate and a social worker, whether domestic violence cases increased during the pandemic, importance of the domestic violence advocacy's work, and the domestic violence advocate collaborating with the social worker. Action: Domestic violence coordinator - full council; parking enforcement — consent agenda Discussion followed regarding staffing for the community storefront on Highway 99, safety improvements at the storefront, future budget request to staff the storefront with an officer, bike officers who plan to patrol near the storefront, and increased police presence on Highway 99. 2. Business Improvement District - Collections Update Collections Questions and discussion followed regarding sending out the delinquency letter, whether writing off debt from closed businesses was a gift of public funds, and pursuing delinquent dues from active businesses. The City Charging the BID Mr. Turley described staff's activities in support of the BID. 07/12/22 Finance Committee Minutes, Page 2 Pam Stuller, BID, pointed out the BID's budget assumption did not include a charge from the City and she urged committee members to consider the value of BID to the City. Discussion followed regarding whether dues could be increased to cover administrative fees, the process for increasing dues, and the council assistant researching amounts charged by other cities. 12% Delinquency Fee Discussion included the amount of the fees, collection rate, serial non -payers, delaying collection during 2020, and waiving delinquent fees in 2020, Collection Agency Discussion included that a collection agency was not an effective method for businesses, small amount are not worth the collection agency's time, and changing the policy regarding the threshold amount to send to a collection agency. Action: Staff send delinquency letter now and further discussion by the task force 3. 2020 Audit Follow-up Actions Mr. Turley explained in 2020 the City distributed over $1 million in small grants to businesses and individuals in Edmonds, federal CARES funds provided via the Department of Commerce in accordance with eligibility criteria that was reviewed and adopted by Council. The auditor's office audited the grant distribution process and questioned 109 grants totaling $871,500. Staff reviewed the grants and made a judgment that out of the 109, 33 (totaling $268,500) did not qualify. Staff recommends sending a strongly worded letter stating they did not qualify for the grant and asking them to return the money. All the grants were $10,000 or less, most were approximately $2,000. After the letter is sent, the results will be evaluated and a decision made regarding how to proceed; options include doing nothing (not staff's intent), civil court, or criminal court. Questions and discussion followed regarding the auditor's identification of 109 businesses/individuals who did not qualify, how the auditor's list was narrowed to 33, whether businesses should be required to be located in Edmonds, providing follow-up to the auditor, potential audit question about distribution of ARPA funds in 2021, and staffing issues associated with sending out the letters. Action: Send letter to 33 businesses/individuals 4. ERP Update Mr. Turley relayed staff is currently implementing the OpenGov budget module which is separate from an ERP (the entire financial system). The City hired a consultant as a project manager to research ERP examples and provide a report and recommendation. Questions and discussion followed regarding staffing issues that may affect selection and implementation of the ERP system, research the consultant is doing, whether to delay pursuit of an ERP, end date for support of the Eden financial system, time it will take to implement a new financial system, whether the 2023 budget will utilize OpenGov, timeline for implementing OpenGov, and how financial information is input into OpenGov. Action: Staff continue to provide updates at finance committee meetings 5. May 2022 Monthly Financial Report Mr. Turley reviewed: 07/12/22 Finance Committee Minutes, Page 3 • Noteworthy items: o REET revenues are down $405,510 from this time last year, but only $42,632 under budget. o Sales Tax is up $561,209 from this time last year. o Gas Utility Tax is up $56,776 from this point in time last year (colder than usual spring). o Parks & Recreation Program Fees are up $136,020 from this point in time last year. o Interfund Reimbursement — Contract Services — January through May of 2022 Engineering Overhead has not yet been recorded; we are waiting on this from Engineering. January through May of 2021 was a total of $905,601. o Traffic Infraction Penalties are down $(60,448) from this point in time last year (vacancy in the enforcement officer position). • Sales Tax Revenues for 5 months ended May 31 - $561,000 ahead of last year, and $590,000 ahead of budget • Sales Tax Revenues for 12 months ended May 31 by category Sales Tax anah.%h By Category Current Yeliod: Slav 2022 Year to -Date Total $4.483,349 Aul.,_n, a R4_0 a� sxrseol & igs" I - Rreseni . U9.916 [mtsmrcN'0 Trade ElealihR $W'. 09 Pen ]Cure. Exu ssS--,. Acc --,radon. 5119.9.3i 15017_ 1 Cnsob,te_$1 L01a 415.1N5 xemil f�N1 W1 . -d Clothing Y11t ie3 .lccevsntie;.$141,F59 Aatail �1lsrostnti: a, fornlnwiutnns. Mi"R.[rtl. E1.061A27 51a4 E"f9i',5`I Nhoksale Td,.rn4r $L654] Others. V1350 MamrGchuvsP. S<_'_54 FatmP & 0uullwp. • Real Estate Excise Tax Revenues for 5 months ended May 31 - Under budget by $43,000 (97.3%) • Preliminary results are in for last year: The General Fund's ending fund balance at 12/31/2021 s the uity's largest ever. Edmonds - General Fund, Budget and Actual for 2021 Final Budget Revenues $ 42,187,229 FzPenses (45353,097) Revenues over(undsr) Expenses (3,165,868) Net Transters(Out) (529,332) Net Change In Fund Balance (3,695,200) Fund Balance, 1/1/2021 13,868,745 Fund Balance, 12/31/2021 S 10,173,545 Actual Results Variance from Budget $ 43,697,155 (41 365,223) $ 1,509926 3 987:874 2,331,932 (269,323) 5,497,800 260,009 2,062,609 13,868,745 5,757,809 $ 15,931,354 $ 5,757,809 Per Preliminary Annual Report, NOT incl GF Sub Funds • Preliminary results are in for last year - City-wide Budget compared to Actual Results Ecneands -Pre I irrl City -Wide Results, Budget anc Actual for 2021 =coal Budgzt Revenues $ 120,280,616 Expenses 135.015,309) Revenues over Winder) Expenses {14,734,693) Fund Balance, 1/1ro21 13?,L8,098 Fund Balance, 12/31 f2021 $ 122,4E3,405 Actual Results Variance from Budge - $ 124,175,732 (113,L9� 582) $ 4,195,116 21,524,727 1C,985,75� 137,19E109E 25,719,843 - $ 14E,183,24E $ 25,719,843 ter Prellminary D-.cerl Monthly Report 07/12/22 Finance Committee Minutes, Page 4 With $ 16 million of fund balance in the General Fund alone, the city remains in a very strong position financially. o General Fund, Fund 001, Restricted fund balance - $7,493,332 o General Fund, Fund 001, Unrestricted fund balance - $$8,438,022 o Contingency Fund 012, restricted - $1,768,863 Questions and discussion followed regarding where bond funds are recorded and staff vacancies. Action: Received for Filing agenda item 6. Miscellaneous Discussion followed regarding requests for additional positions in Administrative services and the police department (discussed at the PSPHSP committee), the need to staff appropriately, finalizing the police commander position job description, and installing a Edmonds Police Department sign when the Highway 99 storefront is staffed with a police officer. 3. ADJOURN The meeting was adjourned at 7:23 p.m.