2023-03-14 Finance CommitteeMinutes
FINANCE COMMITTEE MEETING
March 14, 2023
Elected Officials Present Staff Present
Councilmember Will Chen Dave Turley, Administrative Services Director
Councilmember Susan Paine Scott Passey, City Clerk
Councilmember Vivian Olson
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 Updates
• City Cash Management
Mr. Turley reviewed:
o City of Edmonds investment portfolio details as of January 31, 1023
Questions and discussion followed regarding why the City has different accounts/investments, when
bonds were last purchased, cash balance versus investment value, criteria for selecting investments,
returns from the Washington State Local Government Investment Pool (LGIP) versus the Snohomish
County LGIP, maturity rates, and use of funds upon maturity.
03/14/23 Finance Committee Minutes, Page 2
• OpenGov Update
Councilmember Chen recalled at the January 31 finance committee meeting, Ms. Menkveld was
optimistic OpenGov would be operational by April. Mr. Turley reported he had a meeting with
OpenGov a week ago and April is still the expected live date. Discussion followed regarding the
schedule for training councilmembers.
• 2021 SAO Audit Issues Management Response
Councilmember Chen relayed the audit report states the misstatement has been corrected. He asked
if that correction was reflected in the 2021 financial report and if the 2021 financial statements had
been restated.
Mr. Turley answered the financial statements have not been restated. The financial statements
published on the website are correct and did not need to be changed, they are correct as presented.
Following discussion, Mr. Turley clarified the City provides financial statements to the SAO for the
audit. During the audit, the SAO identified an incorrect journal entry which was changed and that is
reflected in the published financial statements. The financial statements as corrected are published at
the conclusion of the audit.
Questions and discussion followed regarding whether forecasts in the 2023 budget book are correct,
whether the forecasts needed to be updated, and ARPA funds not affecting forecasts.
Committee recommendation: Information only.
2. January 2023 Monthly Financial Report
Mr. Turley reviewed:
• YTD Sales Tax Revenues for the 12 months ended December 31, 2022 of $11,257,927 were
$955,409 (9.3%) higher than at December 31, 2021
• YTD Sales Tax Revenues for January 2023 of $879,231 are $21,359 (2.5%) higher than for
January 2022
• Total Sales Tax Revenues for the 12 months ended January 31, 2023 by Category
Mr. Turley responded to a question regarding the difference between the fund balance and the cash
balance in the building maintenance fund.
Committee recommendation: On agenda under Received for Filing
3. 2020 Audit Update
03/14/23 Finance Committee Minutes, Page 3
Mr. Turley advised staff is seeking the finance committee’s input regarding next steps. During the
audit of 2020 CARES grant funds, the SAO determined 33 businesses who received funds from the
City did not meet the eligibility criteria or did not provide adequate documentation. Of the 33
businesses, 4 have repaid the money they received or signed up for a payment plan, 15 staff
recommends not be pursued (the businesses suffered an obvious loss but may not have provided the
precise documentation), 2 businesses have closed and 12 have not responded to the City’s
communication.
Committee members discussed how to proceed, noting the difficulty of pursuing LLCs via collections.
The committee agreed as follows:
• Do not pursue
o 4 business who had repaid or made payment arrangements
o 15 business who were able to demonstrate a loss but possibly not with the exact
documentation requested
o 4 closed businesses
• Send certified letter to the remaining 12 businesses who did not respond, requesting they
submit documentation and offering to work with them.
Committee recommendation: Certified letter requesting resubmit documentation. Report back at
future FC meeting.
4. Disposed Assets - 2022
Mr. Turley explained disposed assets are reported to the council at least annually; RCW requires the
city council be informed of assets that are disposed of and removed from the capital asset list. He
pointed out the City usually disposes of about 10 vehicles/year; this year there were only 2 because
due to supply chain issues the City was not able to purchase new vehicles and the old vehicles were
not disposed of.
Discussion followed regarding whether the council could be notified before the asset are deposed of
and disposal of the odor control improvement due to replacement with the new WWTP equipment.
Committee recommendation: On agenda under Received for Filing. Provide committee members the
RCW that requires council be notified.
3. ADJOURN
The meeting was adjourned at 6:42 p.m.
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SCOTT PASSEY, CITY CLERK