2023-12-12 Finance CommitteeFINANCE COMMITTEE MEETING
December 12, 2023
Elected Officials Present Staff Present
Councilmember Will Chen (Chair) Dave Turley, Administrative Services Director
Councilmember Susan Paine Scott Passey, City Clerk
Council President Neil Tibbott (ex-officio)
Councilmember Jenna Nand
Councilmember Chris Eck
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, 121 — 5th Avenue North, Edmonds, at 4:31 pm by Councilmember Chen.
2. COMMITTEE BUSINESS
1. 2023 December Budget Amendment Ordinance
Mr. Turley reviewed the 41h quarter budget amendments. If approved, revenues would change by
$503,898 and expenses would change by $582,734. Only $13,140 affects the General Fund. He
reviewed the three decision package
1. Street Fund (111) is projected to end the year with a negative fund balance due to revenues not
coming in as expected. This decision package is to transfer $400,000 in REET into Fund 111.
REET is a legal use for street maintenance; in the past the request would likely have been to
transfer funds from the General Fund. This unanticipated transfer will require reevaluation of
REET expenditures in 2024.
2. Parks purchased three pieces of equipment that they request be added to the Equipment Rental
Fund and a B-Fund Replacement Fund be established. The equipment includes a Conservation
Seeder, a John Deer Terrain -Cut Mower and a John Deer Gator. The purchases were initially
made from the General Fund but staff is requesting the budget and expenditure be moved from
the General Fund to the Equipment Rental Fund. The B-Fund will be established next year
during the budget process. The life expectancy of these pieces is approximately 10 years.
3. Computer equipment is required for the additional police vehicles approved and purchased in
2023 as take home vehicles. The equipment includes computer, docking station and printer per
vehicle. The approved decision packages prepared by the Police Department did not include
budget for this equipment; $13,140 in interfund rental is to cover future replacement.
Questions and discussion followed regarding whether REET funds are entirely used every year, how
the amount to transfer from REET to the Street Fund was determined, purpose of the B-Fund, whether
the police take home vehicles are scheduled in the B-Fund, effect of budget amendments on the
beginning fund balance, when the ending fund balance is finalized, beginning and ending fund balance
are estimates until audited, whether the previous year's ending balance becomes the following year's
beginning balance, and possibility that revenues and expenses can change until finalized by the audit.
Committee recommendation: Consent Agenda
Council President Tibbott observed the estimated 2023 ending fund balance is under $500,000. A
resolution will be prepared for council review and action regarding use of General Fund operating
reserves and he asked if a resolution should be prepared regarding use of the contingency reserves.
12/12/23 Finance Committee Minutes, Page 2
Mr. Turley did not anticipate it would be necessary to use contingency reserves, but having a resolution
prepared would not be harmful. Council President Tibbott advised he may ask the city attorney to
prepare such a resolution.
3. ADJOURN
The meeting was adjourned at 4:54 p.m.
SCOTT PASSEY; CLERK