2024-11-19 Council FIN MinutesFINANCE COMMITTEE MEETING
November 19, 2024
Elected Officials Present Staff Present
Councilmember Jenna Nand Kim Dunscombe, Acting Finance Dir.
Council President Vivian Olson (ex-officio) Shane Hope, Acting Planning & Dev. Dir.
Councilmember Susan Paine Brian Tuley, IT Mgr.
Jeanie McConnell, Engineering Program Mgr.
Leif Bjorback, Building Inspector
Scott Passey, City Clerk
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 pm by Councilmember Nand.
2. COMMITTEE BUSINESS
1. 2025 Update of Fees Associated With Development
Ms. Hope relayed development fees are adjusted periodically. Engineering adjusted theirs fees in April
2024 but other fees have not been adjusted recently. The intent is to update the fees effective January
1, 2025. The proposed building, planning and fire fees would be adjusted to reflect an increase based
on 4.6% CPI in 2025 and 3.8% in 2026. Because Engineering's fees were adjusted recently, they would
reflect only a 3.8% increase. The resolution also indicates for the next three years, or until a more
comprehensive rate study is conducted and implemented, fees would increase by CPI.
Questions and discussion followed regarding a request from a community member to reduce the fees
for ADUs, 50% reduction in park impact fee for ADUs, a community member's concern with the water
meter fees for ADUs, justifiable fees for ADU, support for tying fee increases to CPI, park impact fee for
ADUs established by ordinance during ADU code update, and future plans to update impact fees.
Committee recommendation: Consent Agenda
2. ERP Update
Mr. Tuley referred to a PDF he emailed to council today. The initial kickoff for the preimplantation phase
with Tyler occurred yesterday. During the preimplantation meeting yesterday, staff met Tyler's project
manager, reviewed a project management web portal and transfer procedures, and tasks were
assigned to the technology department to be completed before the software implementation phase
begins on December 15. Following software implementation, the cloud environment will be configured.
The main implementation kickoff will begin the first week of January. He pointed out this project will
require a significant amount of staff resources to be successful, not only from IT but various other
departments. Reductions in staff hour availability will introduce critical risks to the project that include
missed deliverables, extended timelines that could lead to cost overruns, etc. Councilmembers
expressed appreciation for the update.
Committee recommendation: Update
3. October 2024 Monthly Financial Report
11/19/24 Finance Committee Minutes,
Ms. Dunscombe relayed October 2024 is on task with forecasting for the last couple months. She
continues to watch sales and use tax. She displayed the following graphs, explaining July was $135,000
over 2024, but October 2024 compared to 2023 illustrates a decrease. The increase in October is only
1 % above last year which illustrates sales and use tax is beginning to decrease; a 3% increase above
the forecasted 2024 is budgeted in 2025. She was hopeful sales and use tax would increase in the next
couple months, but it is trending the opposite which is a risk for the 2025/2026 budget.
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Retail automotive and construction are two large components of sales and use tax,; retail automotive is
about 20-23% of the total sales and use tax and construction is about 12-15%. Trends related to
automotive purchases and construction significantly impact the City's budget. She relayed the following:
• According to Washington State's Economic & Revenue Forecast Council
o Washington car and truck sales increased for the second consecutive month in August. The
seasonally adjusted number of new vehicle registrations grew 2.8% in August from the
month before to 269,600 (SAAR). Passenger car registrations fell 1 % while light truck
registrations rebounded 37.7%. The number of total registrations were done 5.3% over the
year in August.
o Washington housing construction slowed in the second quarter of 2024. The number of
housing units authorized by building permits declined to 33,300 (SAAR) in the second
quarter from 38,000 in the fist quarter. Single family permits declined 3,000 to 17,500 (SAAR)
units and multifamily permits declined 1,700 to 15,700 (SAAR) unit. The June forecast
expected 35,500 units (SAAR) in the second quarter, consisting of 20,500 single family units
and 15,000 multifamily units. Permits increased by 2,100 units (SAAR) in July to 35,400.
Permits consisted of 16,900 single family units and 18,500 multifamily units. The June
forecast expected 36,800 units (SAAR) for the third quarter as a whole consisting of 20,200
single family units and 16,600 multifamily units.
• School zone camera citations
o October 2024
Type of Infraction
Number
Amount paid
School zone citations
138
r S1 7.060.00
Overtime parking
152
56.005.00
Total
290
S23r065.00
2024 YTO
Type of Infraction
Number
Amount paid
School zone citations
2425
S301r79I.00
Overtime parkenp
1527
S61.880.81
Tota,
3952
S363.67I.81
School zone camera revenue
$301,794
Camera Lease
186,724
Net Revenue
$115,070
11/19/24 Finance Committee Minutes, Page 3
Ms. Dunscombe advised the above does not include court overtime. Ms. Dunscombe referred to the
cash forecast, September versus October cash flow, and the increase in service fees in October due to
receiving EMS transport fees a month earlier than last year.
Questions and discussion followed regarding a spreadsheet submitted by Municipal Court Judge Weiss
indicating the addition of school zone citations in 2024 and the projected addition of red light cameras
in 2025 would require the court add 2.67 FTE, incentivizing revenue generating industries, Lynnwood's
sales tax, recurring revenues and expenses, concern Edmonds' sales tax amount deters shopping,
month -to -month variances in facilities maintenance, difficulty predicting cashflow for capital projects,
compliments to departments that are under their monthly budgeted forecast, fees received from the
Edmonds Green Apartments, future development fees from the Edmonds Green project, $3.2M
(vacancy rate) in Department 39 that was not divided up between departments, fiscal discipline
exercised by departments, increase in salaries and benefits in May due to retro payment, and increase
in utility fund revenues due to bonds.
Committee recommendation: Received for Filing
3. ADJOURNMENT
The meeting was adjourned at 6:07 pm.
SCOTT PASSEY; ftIf CLERK