FC051121FINANCE COMMITTEE MEETING
May 11, 2021
Elected Officials Participating Virtually
Councilmember Vivian Olson
Councilmember Diane Buckshnis
CALL TO ORDER
Staff Participating Virtually
Dave Turley, Finance Director
Phil Williams, Public Works Director
Scott Passey, City Clerk
The Edmonds City Council virtual online Finance Committee meeting was called to order at 6:02 p.m.
by Councilmember Buckshnis. Bond Refinancing was added as Item 2.3.
2. COMMITTEE BUSINESS
1. March Financial Report
Mr. Turley highlighted:
• What's happening in the Finance Department?
o American Rescue Plan Act (ARPA) Funds to be released soon, likely in the next 3-4 weeks
we should get the first half of $9.3M in stimulus funding coming our way.
o Budget retreat last Saturday — lots of good comments, some good suggestions made on
how we can improve the calendar and overall scheduling.
o We are discussing the possible refunding of Sewer Revenue bonds this year. More about
this later on the agenda.
o The annual SAO audit official began last week.
o Two job description updates — Systems Support Technician and Deputy Administrative
Services Director — discussed earlier tonight in PSPP Committee.
o First three months have gone according to budget, nothing negative to report.
• REET & Sales and Use Tax
Fund
Cumulative Budget
Forecast
YTD Actual
Variance
REET 1 & 2
$525,343
$1,222,093
132.53%
Sales and Use Tax
$2,110,825
$2,350,650
11.63%
Questions and discussion followed regarding the use of ARPA funds, potential projects such as
upgrading the City's Wi-Fi, timeframe to spend ARPA funds (two years), upgrading job descriptions in
Administrative Services, moving the Clerk's Office to Administrative Services, the General Fund
Reserve, and REET exceeding budget.
Action: Presentation to full Council
2. 2020 Transportation Benefit District Report
Mr. Williams reviewed:
Edmonds City Council formed TBD on November 18, 2008
TBD Board enacts $20/year fee with Ordinance No. 1 on February 17, 2009 limiting the use of
funds collected to maintenance and preservation of streets and related traffic controls assets
Funds collected
05/11/21 Finance Committee Minutes, Page 2
0
2012
$640,994
0
2013
$670,435
0
2014
$623,111
0
2015
$687,421
0
2016
$701,467
0
2017
$692,589
0
2018
$716,013 + $43,181 in qualifying expenditures = $759,194
0
2019
$689,668 + $26,345 in qualifying expenditures = $176,013
0
2020
$719,684 - $133,604 in qualifying expenditures = $586,080
• Schedule of Revenues, Expenditures and Changes in Fund Balance 1/1/19-12/31/19
Revenues
$20 Vehicle Registration Fee
$719,684
Total Revenues
Expenditures
719,684
Road Maintenance (includes repairs, patching, crack sealing)
Labor & Benefits
134,935
Supplies
26,463
Traffic Control
Labor & Benefits
195,617
Supplies
114,670
Vehicle Charges
114,396
Excess Transferred to Street Fund
133,604
Total Expenditures
$179,684
Net Charge in Fund Balance
--
Fund Balance - Beginning
--
Fund Balance - Ending
--
• 2021 Paving Program
o Revenue & Expense
Revenue
Fund 112-Street
$100,000
Fund 125-REET 2
400,000
Fund 126-REET 1
300,000
Fund 112-Street
16,269
Fund 125-REET 2
15,166
Fund 126-REET 1
9,875
Total Pave Budget
$841,311
Expense
Employee time
$80,000.00
Construct
450,454.00
Construct Contingency
45,045.40
CM
67,568.10
88' Share
66,637.50
Phase 2 Construct
145,745.00
Phase 2 Councilmember
21,861.75
Phase 2 Contingency
14,574.50
2021 Design
TOTAL
$891,866.25
o Should be paving 1.5 - 2M/year to maintain. At this level, not maintaining.
■ Could use new, dedicated revenue source
• Map of 2021 Overlay Program
• 1-976 Status
o November 2019 - Initiative 976 passed by the voters of Washington State
o An injunction, upheld by the State Supreme Court, kept the initiative from taking effect
o Local licensing fee collections remained - Edmonds continued receiving and expending
these revenues
o October 2020 - 1-976 ruled unconstitutional by the Washington State Supreme Court
Mr. Williams responded to questions regarding how streets to be paved are determined and the need
to dedicate more funding to street paving.
05/11/21 Finance Committee Minutes, Page 3
Action: Presentation to full Council
3. Bond Refinancing
The following were also present for this item:
• Marc Greenough, Foster Garvey law firm (bond counsel)
• Scott Bauer, NW Municipal Advisors (bond advisor)
• Ryan Neumeister, NW Municipal Advisors
Mr. Williams relayed staff and the above discussed refunding 2011 Water Revenue Bonds; the
savings that likely can be achieved are impressive if bonds can be issued in August. There has also
been some discussion about borrowing for capital projects and whether those could be combined.
Mr. Bauer displayed a graph of outstanding Water and Sewer Revenue Bonds. The 2011 bonds have
about $8.7M outstanding currently, $8M of which is callable beginning 12/1/21. Additional debt may
be planned this year; bond counsel has indicated the refunding and additional capital debt can be
combined into a single general obligation issue. The City has a AAA general obligation rating and the
Water and Sewer Bonds are rated AA. He reviewed estimated savings of refinancing the 2011 bonds
with either Water and Sewer Revenue Bonds or Limited Tax General Obligation Bonds. Based on
current estimated interest rates, savings improve by $173,000 when issued as a General Obligation
versus a Water and Sewer Revenue Bond. Savings amounts and differential will change when bonds
are issued.
Discussion followed regarding combining a utility revenue bond and a General Fund bond versus two
separate bond issues, how payments are made if the two are combined, PFD bond refinancing (totally
separate from this refunding), tax implications of borrowing over or under $10M, adding bonding for
capital projects, interest rates, timeline for the refunding the bonds, how the refinancing would be
structured, timeframe for determining additional capital projects, call date for the 2011 water sewer
bonds, holding a special Finance Committee meeting to discuss bond refinancing, and the timeframe
for purchasing tax exempt bonds.
Action: Schedule special Finance Committee meeting
3. ADJOURN
The meeting was adjourned at 6:54 p.m.