2023-02-14 Finance CommitteeMinutes
FINANCE COMMITTEE MEETING
February 14, 2023
Elected Officials Present Staff Present
Councilmember Will Chen (Chair) Dave Turley, Administrative Services Director
Councilmember Susan Paine Angie Feser, Parks, Rec. & Human Serv. Dir.
Council President Neil Tibbott (ex-officio) Jessica Neill Hoyson, HR Director
Councilmember Vivian Olson Susan McLaughlin, Planning & Dev. Dir.
Scott Passey, City Clerk
1. CALL TO ORDER
The Edmonds City Council Finance Committee meeting was called to order virtually and in the City
Council Conference Room, 212 – 5th Avenue North, Edmonds, at 5:30 p.m. by Councilmember Chen.
2. COMMITTEE BUSINESS
1. Committee Update Format for New Standing Agenda Item
Council President Tibbott explained the intent is instead of councilmembers sending individual emails
to city staff requesting updates, committee members will discuss updates they want and submit a
request to the council office by the first Monday of the month. He will review the update requests with
the council pro tem and council assistant and schedule updates on future agendas. Short updates, 2-
10 minutes without a formal presentation, will be scheduled at the beginning of committee meetings
and longer updates may become future committee agenda items. The intent is to streamline
communication between councilmembers and staff.
Questions and discussion followed regarding submitting an update request for another committee,
concern that elected officials had to go through a peer to request information from directors, the
mayor’s thoughts about this, ability for councilmembers to still submit questions to staff, requests for
updates as part of agenda planning process, intent to eliminate multiple councilmembers contacting
multiple directors on the same topic when the entire council could benefit from and update, creating a
new channel for information, appropriateness of the committee meeting structure for updates, and
staff’s support for this approach.
Committee recommendation: Information
2. Development Fees Update
Ms. McLaughlin explained this is a standard 3-year update, the fees were last updated in 2020. After
doing comparables, an average fee increase of 14.2% was added which is consistent with other
jurisdictions. She highlighted key changes such as simplifying the fees for plumbing and mechanical
systems in new single family homes, adjusting fees for retaining walls because the City was
significantly undercharging based on the amount of staff expertise required, and adding new fees for
generators and smoke control systems. The fees have been set in collaboration with building,
planning, engineering and fire.
Questions and discussion followed regarding the hourly rate in the fees, other cities’ hourly rates, fees
for streateries and outdoor dining, how fees are allocated, when fees are collected, including recovery
of city attorney time in the fees when they do permit review, the goal to have fees cover costs, intent
for the fees to be effective March 1, and permits for generators.
02/14/23 Finance Committee Minutes, Page 2
Committee recommendation: February 21 Consent Agenda
3. Risk Management Policy
In response to a questions asked previously about whether it is appropriate for risk management to be
in HR and whether she is qualified to oversee risk management, Ms. Neill Hoyson explained risk
management is typically in Finance or HR. Prior to coming to Edmonds, she worked for Skagit County
as the director of HR and risk management for eight years and is certified in risk management, claims
management and underwriting. Mr. Turley is currently the alternate risk manager.
The City is part of a risk pool, all claims are submitted to the pool for processing under the City’s
insurance coverage. The pool distributes risk among all members, minimizes exposure and reduces
insurance cost. The proposed risk management policy arose when a boiler broke, flooding city hall
including the Chamber’s offices. The damage was covered by the Chamber’s insurance, but without a
risk management policy, there was no way for the City to reimburse the Chamber for their deductible.
This policy would provide the City the latitude to pay one-offs not covered by the City’s liability
coverage. She wrote a similar policy for Skagit County and revised it to be applicable to Edmonds.
Ms. Neill Hoyson explained the reason the policy proposes an annual report is she gets an annual
audit from the risk pool. The council sees every claim, but she only learns the impact claims have on
the City’s insurance premiums once a year. She provided an annual report at Skagit County.
Questions and discussion followed regarding interest in a quarterly report to improve council
awareness, a suggestion for an informal quarterly update to committee, highest sources of risk, how
the $5000 limit was determined, total amount in the risk management fund, coordination with the city
attorney before claim are paid, every claim first going through the risk pool, use of these funds for
things like deductibles, possibly using this fund to cover insurance deductibles for other City policies
(such as insurance on storage tanks that have high deductibles), and information that would be
provided in a quarterly report.
Committee recommendation: February 21 Consent Agenda
4. 2023 Carryforward Budget Amendment
Mr. Turley reviewed:
• 32 requests tonight; more detailed information including the draft ordinance can be found in
council packet beginning on page 38
• If approved, budget amendment would increase forecast revenues by $5,841,210 and would
increase budgeted expenditures by $11,393,854 and change the beginning fund balance by
$5,552.644.
• The request for tonight is to place the budget amendment ordinance as included in the packet,
or as amended, on the February 21 consent agenda for approval by full council.
Questions and discussion followed regarding why carryforward amounts were not incorporated into
the budget, reason for carryover amendments, fewer carryovers with a biennial budget, carryovers are
not new money just unspent money that is carried over, projects that have not been started versus
started and not completed, spreading OpenGov maintenance cost over four years, and fund balance
versus cash balance.
Committee recommendation: Full Council February 21
5. Preliminary December 2022 Monthly Financial Report
02/14/23 Finance Committee Minutes, Page 3
Mr. Turley reviewed:
• General Fund Revenues for 12 months ended December 31 are $194,860 better than budget
(0.43%)
• General Fund Spending for 12 months ended December 31 is $5,623,429 under budget
• Sales Tax Revenues for 12 months ended December 31 are $955,409 ahead of last year, and
$1,257,927 ahead of budget
• Sales Tax Revenues for 12 months ended December 31, by Category
• Real Estate Excise Tax Revenues for 12 months ended December 31 are under budget by
$502,246 and approximately $1 million below last year
• Real Estate Excise Tax Revenues
• Preliminary City-Wide Results
• Noteworthy Items
o The difference for Fund 422 is primarily due a Grant reimbursement in January of 2021.
o Fund 112 - The large Traffic Impact Fee that was received in March of 2022 was for
$133,581.97.
02/14/23 Finance Committee Minutes, Page 4
o Fund 332 – The large Park Impact Fee that was received in March of 2022 was for
$288,259.84.
o Sales Tax is up $955,409 from this point in time last year.
o Gas Utility Tax is up $84,575 from this point in time last year.
o Telephone Utility Tax is down $(40,330) from this point in time last year.
o Building Structure Permits are up $78,023 from this point in time last year, and Plan
Checking Fees are down $( 119,743) from this point in time last year.
o Parks & Recreation Program Fees are up $180,586 from this point in time last year.
o Total Interest Earnings for all funds are up a total of $141,025 from this point in time last
year.
o We have received $300,219 more in interest with the LGIP from this point in time last year,
and $235,383 more in interest with the SCIP from this point in time last year for a total of
$535,603.
Mr. Turley responded to a question regarding 2023 versus 2022 overtime.
Committee recommendation: Received for Filing
3. ADJOURN
The meeting was adjourned at 6:59 p.m.
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SCOTT PASSEY, CITY CLERK