Loading...
10/11/2011 Finance Committee MinutesFINANCE COMMITTEE MEETING MINUTES October 11, 2011 Councilmembers Present Staff Present Councilmember Petso Jim Tarte, Interim Finance Director Councilmember Buckshnis Shawn Hunstock, Finance Director Deb Sharp, Accountant Public Present Carl Nelson, CIO Ron Wambolt Roger Hertrich Darrol Haug, representing CTAC Councilmember Petso called the meeting to order at 6:01 p.m. A. Quarterly Report re_gardin_p Fiber Optic Opportunities Mr. Nelson reported the SNOCOM contract has been signed and the City will begin collecting revenue. He anticipated expenditures for switches and maintenance this year which are consistent with the budget. Reoccurring revenues are exceeding expectations. Darrol Haug, representing CTAC, commented, 1) the fiber project is exceeding expectations, expenditures are being paid down faster than anticipated and that is likely to continue, 2) the project would not be at this point without the extra work Carl Nelson does; more could be done sooner with additional staff, and 3) a different standard than breakeven needs to be established for internally evaluating progress on the fiber project. Councilmember Petso suggested a presentation to Council at the time of the 41" quarter report. Mr. Haug suggested the Council consider providing additional resources for fiber in the 2012 budget. Action: Schedule on Consent Agenda. B. General Fund Update — August 2011 Mr. Tarte reviewed the update, highlighting the following: • Local sales tax collection is on target with the budget; approximately 3.5% above 2010. The 2012 budget projects a 2.5% increase over 2011. • Telephone utility tax is below budget; the 2012 budget projects a 1 % increase over 2011. • Licenses and permits are over budget. The 2011 budget did not include $100,000-$120,000 in revenue from franchise fees with Black Rock and Verizon. That revenue is included in 2012 budget. • Charges for goods and services are over budget, primarily due to interfund transfers from Utility Fund to General Fund. • Expenses are under budget primarily due to vacancies that have not been filled. He predicted the under expenditure will be less in 2012 because the budget is tighter and budgeted positions are being filled. Mr. Tarte advised the September General Fund Update and V Quarter Report will be available by month end. Discussion followed regarding eliminating segregated balances in the General Fund, salary savings from vacant positions, over budget in accrued vacation/sick leave in 2011 budget due to employees who have left, how bond payments will be made from REET Fund 126 with reduced revenue, bond refinancing, potentially extending the term of the Marina Beach bond, and transport fee revenue. Finance Committee Minutes, Councilmember Petso asked Mr. Tarte to research a change made to the Non -Represented Compensation policy in 2010 to limit the amount of time an employee is paid for covering for another employee's job. Councilmember Petso also requested this report include a column with historic percentages, an explanation for all interfund transfers and a narrative of reason revenues/expenses are over/under budget. Action: Information only. C. Update on Financial Policies and Reportin_g Councilmember Buckshnis expressed interest in a reserve policy and an investment policy, and updating Ordinance 3789. She liked many of Tukwila's policies. Councilmember Petso suggested the November Finance Committee meeting include discussion regarding the elimination of the Council Contingency and Animal sub -accounts in the General Fund. Action: Information only. D. Public Comments Ron Wambolt, Edmonds, thanked Mr. Tarte for the budget to projection comparisons in the 2012 budget. With regard to percentage comparisons, he pointed out that would never be remedied until the City has a monthly budget. He remarked in the past the CIO reported to the Mayor. Roger Hertrich, Edmonds, suggested the City request a report regarding transport fees that have been billed, collected and are uncollectible. With regard to the ECA, he suggested a better contract/policy with shared management responsibilities to protect the City's resources. Councilmember Petso pointed out the funds the City provides for the ECA debt are a loan and the City receives interest. She suggested the City's aid with the ECA's debt be discussed at the November Finance Committee meeting. Darrol Haug, Edmonds, commented departmental expenses in the 2012 budget are very tight; therefore the Council should expect more budget amendments during the year. He thanked Mr. Tarte for all his help. Adjournment— The meeting adjourned at 7:00 p.m.