01/10/2012 Finance CommitteeFINANCE COMMITTEE MEETING MINUTES
January 10, 2012
Councilmembers Present
Staff Present
Councilmember Buckshnis
Shawn Hunstock, Finance Director
Councilmember Yamamoto
Carl Nelson, CIO
Mayor Earling
Rob English, City Engineer
Public Present
Finis Tupper
Ron Wambolt
Bruce Witenbera
Councilmember Buckshnis called the meeting to order at 7:04 p.m. She added discussion of the
Economic Alliance of Snohomish County to the agenda.
F. Economic Alliance of Snohomish County
Mayor Earling explained the former Snohomish County Economic Development Council, comprised of
the Everett Chamber of Commerce and the South Snohomish County Chamber, has morphed into a
new body, the Economic Alliance of Snohomish County. This group has been organizing for the past
year and is well established with representation from major industry across the State and Snohomish
County including private industry and municipalities. The membership fee is $5,000. By joining
Edmonds will become part of the Executive Board as well as have the opportunity to have key staff
members involved in decision making at the staff level. Other participating cities include Everett,
Arlington, Marysville, Bothell, Mountlake Terrace, and Mill Creek. They are still recruiting and currently
have over 100+ members.
Finance Committee recommends Edmonds join the Economic Alliance of Snohomish County.
Action: Schedule Authorization to Join Economic Alliance of Snohomish County on the Consent
Agenda.
A. Purchasing Policy Update
Mr. English reviewed changes to the purchasing policy:
• Incorporate the change order policy previously approved by the Council
• Incorporate the apprenticeship and responsible bidder criteria previously approved by the
Council
• Increase threshold for small works contracts to $300,000 (from $200,000) to be consistent with
State law.
• Increase threshold for award of a small works contract to $100,000 (from $30,000) to be
consistent with the remainder of the purchasing policy
Finance Committee recommends approval of the Purchasing Policy.
Action: Schedule Approval of the Purchasing Policy on the Consent Agenda.
B. Quarterly Report Reaardina Fiber Optic Opportunities
Mr. Nelson explained a quarterly report on fiber optics is required by Resolution 1234. He highlighted
the addition of SNOCOM as customer and expenses for repair and maintenance during this quarter.
Action: Schedule on Consent Agenda.
01 -10 -12 Finance Committee Minutes, Page 2
C. Investment Policy
Mr. Hunstock reported the only changes since the Finance Committee last reviewed the policy were
minor grammatical corrections and at Councilmember Petso's request, a statement on page 6 of the
policy was revised to read, "The policy shall be reviewed on at least an annual basis."
Once the policy is approved by the City Council, it will be sent to the Association of Public Treasurers
of U.S. and Canada for certification. Certification shows the auditor and the public that the City's
policy complies with State and professional requirements.
Finance Committee recommends approval of the Investment Policy.
Action: Schedule Approval of the Investment Policy on the Consent Agenda.
D. General Fund Update — November 2011
Mr. Hunstock reported the following:
• Property tax will be slightly under budget at year end. He will contact the Snohomish County
Auditor to determine the reason, could be due to appeals.
• Sales tax slightly over budget
• Telephone utility tax will be $110,000 under budget by year end. Telephone utility tax revenue
will continue to decline as the number of land lines decreases
• Gas utility tax 4% under budget, electric utility tax 5% under budget
• Leasehold excise tax slightly below budget
• Licenses and permits, intergovernmental charges, charges for goods and services, plan check
fees are over budget
• Expenditures under budget in all line items
• REET revenue approximately 22% below budget. The 2012 REET revenue budget is lower
than 2011
• Anticipate will end the year with a slight surplus
Mr. Hunstock reported the 4th quarter unaudited results will be available next month. He relayed one
of the retreat topics will be a discussion regarding the budget including the City's reserves and
expenditures increasing faster than revenues.
Action: Information only
E. Public Comments
Ron Wambolt, Edmonds, pointed out the 2012 REET budget is $650,000; he questioned whether
that was attainable in light of the 2011 year end forecast of $543,000. He reported this is the lowest
REET revenue has been since 1999; the outlook is poor as property values continue to drop. He
recommended lowering the REET budget further. Next, Mr. Wambolt pointed out the amount
generated by the EMS levy is declining along with property taxes. He suggested lobbying the
legislature to change the structure of the EMS levy ($0.50/$1000 AV) so that it is structured similar to
school district taxes that generate a certain amount of money.
Bruce Witenberg, Edmonds, urged the Council to proceed cautiously when considering spending
reserves for day -to -day operations.
Adjournment —The meeting adjourned at 7:45 p.m.