2024-01-09 Council FIN MinutesFINANCE COMMITTEE MEETING
January 9, 2024
Elected Officials Present
Staff Present
Councilmember Will Chen (Chair)
Dave Turley, Administrative Services Director
Councilmember Jenna Nand
Kim Dunscombe, Deputy Admin. Serv. Director
Council President Olson (ex-officio)
Scott Passey, City Clerk
Councilmember Susan Paine
Mayor Mike Rosen
Councilmember Michelle Dotsch
1. CALL TO ORDER
The Edmonds City Council Finance Committee meeting was called to order virtually and in the City
Council Conference Room, 121 — 5th Avenue North, Edmonds, at 5:31 p.m. by Councilmember Chen.
2. COMMITTEE BUSINESS
1. November 2023 Monthly Financial Report
Mr. Turley advised the November 2023 Monthly Financial Report is included in the packet and he
offered to respond to council questions. Discussion followed regarding whether to add structure to the
committee's review of the monthly report such as a presentation from staff highlighting figures in the
report or to have staff respond to council questions. As the 30-page report with financial information
was included in the packet, Mr. Turley's preference was Q&A.
Questions and discussion followed regarding ability for staff to answer detailed questions outside of
committee meetings, monthly General Fund expenditures and what it was spent on, concern the
monthly financial report is historical data and difficult to react to, budget forecasts included in the
monthly reports, anticipation use of the contingency reserve would be necessary by February, difficulty
forecasting monthly expenditures as each department is responsible for their own budget, Finance as
a central department that reports information provided by individual departments, new process that
would be required to forecast monthly expenditures by department, appreciation for moving funds to
the state investment pool to generate more interest income, and staff's plans to make the adopted 2024
budget available by the end of next week,
Committee recommendation: Consent Agenda
2. Finance Committee 2024 Work Plan
Councilmember Chen referred to his email listing a few key items:
Use of contingency fund reserve
If the City does not borrow from the utilities, there is potential to dip into the contingency reserve in
February/March. Councilmember Chen suggested the city attorney prepare a resolution authorizing use
of the contingency fund reserve to avoid using it without council approval.
Questions and discussion followed regarding the reporting mechanism from finance to the mayor
regarding use of the General Fund reserve in accordance with the fund reserve policy, confusing
language in the fund reserve policy and varying interpretations, when the process is triggered and how
the council is notified, risk of not preparing a resolution in advance and spending contingency reserve
01/09/24 Finance Committee Minutes, Page 2
funds without authority, the adopted budget does not forecast using contingency fund reserves, and
whether there is a strategy to replenish reserves used in 2023.
Fund balance reserve policy review and update
Questions and discussion followed regarding the process for updating the policy, preparation of an
interfund loan policy, a suggestion to hold a public hearing or council workshop when an interfund loan
is proposed, and formation of citizen advisory groups in the past. It was agreed to form a policy review
group (Councilmembers Chen & Nand and 1-2 Finance staff) to review and rewrite the policy prior to
review by the city attorney.
Property tax revenue discussion
Questions and discussion followed regarding diversifying the City' revenue streams, the legislature's
consideration of an increase in the 1 % property tax limit, Seattle's capital gains income tax that targets
high earners, inflation versus the 1 % property tax limit, increases in the City's expenses, opportunity for
a sales tax increase to support cultural arts that potentially could generate $300,000/year in revenue,
considering revenues opportunities now for 2025, increases in construction costs, timing for ballot
measures, concern with impacts of increasing Edmonds' sales tax rate, and considering ways to make
City events more revenue neutral.
Stopgap/bridge public safety levy
Councilmember Chen proposed council begin planning to put a public safety levy on the ballot to cover
2025 public safety expenditures. Questions and discussion followed regarding the deadline to have a
levy on the ballot (Feb 23 for April ballot), importance of a public education campaign, accurately framing
a public safety levy, importance of the council and the public's support of a public safety levy, budget
for police and fire in 2024, involving the RFA in town halls and public outreach, information staff could
provide related to a levy, and council action required to proceed with a levy.
Borrowing from the utility fund
Questions and discussion followed regarding borrowing from the utility fund as a short-term solution as
it takes less time than a levy, options to raise short-term revenue (borrow from the utility fund, levy lid
lift, bank loan, councilmanic bonds), voter approval required for a levy lid lift, process for borrowing from
the utility fund, when a public hearing is/is not appropriate, whether borrowing from the utility fund would
have an adverse impact on rate payers, and the need for an interfund loan policy.
Fire and EMS services
Councilmember Chen referred to Fitch & Associates' presentation to the PSPHSP committee regarding
the scope of the fire feasibility assessment.
Questions and discussion followed regarding whether project numbers can be assigned to allow council
to track expenditures on multi -department projects, whether project reporting could be incorporated into
monthly financial reports, whether project reporting could be done for 3-4 large projects, and assigning
a project number to the Landmark project.
Committee recommendation: Discussion.
3. ADJOURNMENT
The meeting was adjourned at 6:58 p.m.
SCOTT PASSEY; CLERK