09/13/2011 Finance Committee MinutesFINANCE COMMITTEE MEETING MINUTES
September 13, 2011
Present: Councilmember Petso
Councilmember Buckshnis
Councilmember Bernheim (attended 8:00 — 8:20 p.m.)
Staff.- Jim Tarte, Interim Finance Director
Deb Sharp, Accountant
Stephen Clifton, Community Services, Economic Development Director
Carl Nelson, CIO
Public: Ron Wambolt I
Following a joint meeting with the CS/DS Committee, Councilmember Petso called the meeting to
order at 7:35 p.m.
A. Discussion of Refunding and Issuinq New Bonds
Discussed during joint CS/DS-Finance Committee meeting.
B. Chan_ge Order Policy Discussion
Discussed during joint CS/DS-Finance Committee meeting.
C. Update of Scope of Services of Web Site Professional Services A_preement
Mr. Nelson reviewed the estimated cost to complete the web site update, an additional $16,000. The
original contract amount was $35,000; the total cost to complete the update is $51,000.
Councilmember Petso raised a concern with the practice of exceeding the contract amount prior to
requesting Council approval. Mr. Nelson explained per the City's purchasing policy, he sought
authorization from the Mayor and this is an informational update to the Finance Committee. Mr. Tarte
explained the City's purchasing policy delegates authority for contracts under $100,000 to the Mayor.
Recommended action: Schedule on Consent Agenda.
D. Discussion of September 6, 2011 Budget Presentation
Councilmember Buckshnis requested a breakdown of Police Department overtime and revenue from
contracts.
(Councilmember Buckshnis left the meeting at 8:00 p.m.)
E. Inter -fund Short Term Loan from General Fund to Street Fund.
Mr. Tarte explained the Street Construction Improvement Fund 112 will be spending money on
projects and the City will be reimbursed via grant and local match funds. However, the contractor
needs to be paid before the City is reimbursed. He asked for authorization to borrow $200,000 in
September and $400,000 in October and pay back the General Fund within the first two quarters of
2012.
09-13-11 Finance Committee Minutes,
Councilmember Petso suggested borrowing from the Vehicle Replacement Fund 511. Ms. Sharp
explained City ordinance restricts the use of the Vehicle Replacement Fund and an amendment to the
ordinance would be required to allow short-term loans from the Vehicle Replacement Fund.
Recommended Action: Bring to full Council an amendment to the ordinance to allow use of 511 Fund
for short-term inter -fund loans.
F. General Fund Update - July 2011
Mr. Tarte reviewed the General Fund update, highlighting telephone utility tax which is significantly
below budget. The 2012 budget will reflect that trend.
Mr. Tarte reported 2011 expenditures are below budget. During the 2012 budgeting process, he is
encouraging directors to budget what they think they will actually spend, recognizing they may need to
request a budget adjustment.
G. Update on Financial Policies and Reportin_g
Mr. Tarte referred to Tukwila's Reserve and Investment policies that were included in the packet. The
Reserve Policy establishes reserve/opening fund balance amounts. With regard to the Investment
Policies, Mr. Tarte explained investment policies require staff time and the return is currently not worth
the staff time.
Mr. Tarte sought direction from the Finance Committee regarding whether there was interest in him
staying beyond the transition period to complete the projects he is working on.
H. Public Comments - None
Adjournment —The meeting adjourned at 8:44 p.m.