FC071117FINANCE COMMITTEE MEETING
July 11, 2017
Elected Officials Present
Councilmember Diane Buckshnis (Chair)
Councilmember Dave Teitzel
Staff Present
Scott James, Finance Director
Dave Turley, Assistant Finance Director
Jeannie Dines, Recorder
The meeting was called to order at 7:26 p.m. in Council Chambers.
Second Quarter 2017 Budget Amendment
Mr. James relayed:
• 14 decision packages
o 5 previously reviewed
o 9 new
• Approximately $136,000 in new revenues
• Approximately $282,000 new expenditures
• Approximately $146,000 in ending fund balance will be used
Mr. James reviewed the budget amendments:
• New:
o Annual software maintenance for the Government Access Channel programming
o Additional consultant plan review of building permits due to increases in permitting activity.
o Additional $1,000 in 2017 Diversity Commission staff budget to cover delayed invoice
o Use of vendor fee receipts for 2017 Holiday Market professional services
o Use of sponsorship receipts for 2017 Puget Sound Bird Fest professional services
o Transfer of funds from Non -departmental to Parks & Recreation for payout of retiring
employee
o Insurance reimbursement for traffic controller damaged in a vehicle accident
o Preliminary design of a replacement retaining wall within right-of-way - $16,400
o Stormwater educational programs for students and businesses as part of the City's
Stormwater Permit compliance efforts
Previously discussed by Council:
o Fund temporary Administrative Assistant position while employee on maternity leave
o Corrections to Lodging Tax Fund line items for professional services
o Additional expenditure Frances Anderson Center Bandshell - $32,000
o Additional $71,000 spending authority for Veterans Plaza
o Budget correction related to transfers from the Utility Operating Funds to the Bond Fund
Mr. James responded to questions regarding budgeted 2017 beginning and ending fund balance, Fund
421 revenue versus expenditures, projects that will utilize outside consultant plan review, and use of
increased permit revenue to fund outside consultant plan review.
Action: Schedule for 15 minutes for full Council on July 18 or 25
2. May Monthly Financial Report
Mr. Turley reviewed the May Monthly Financial Report, highlighting the following:
07/11/17 Finance Committee Minutes, Page 2
• General Fund revenues similar to 2016
• Utility revenue and expenses lower than 2016 due to delays in grant billing
• Fund 112 - $3.6 million 2017 compared to under $1 million 2017
• Building permit revenue $295,000 in 2016 versus $332,000 in 2017
• Investments revenue is up
• Interest income for June is over $100,000, $325,000 YTD
Mr. James distributed Review of Sales Tax by Category and a graph of the top four sales tax categories
(retail automotive, contractors, retail eating and drinking and miscellaneous retail trade). He and Mr.
Turley responded to questions regarding REET revenue expectations, campus safety revenue in May
2017, traffic infraction penalties revenue May 2016 actual versus May 2017 budget, the City's loan to
the PFD and the PFD's financials, long range task force, and reserve funds.
Mr. Turley provided a brief update on the audit, advising the auditors have not identified any findings.
They have raised questions regarding the loans to the Street Fund and to the PFD.
Action: Schedule on Consent Agenda
3. Library District
Councilmember Teitzel remarked times are changing and a great deal of information is available on
the internet. He questioned whether the current library model fit the way information is evolving and
whether it is the most financially reasonable.
Mr. James distributed and reviewed the Library Annexation Agreement the City entered into in 1998
which requires the Library District to set aside funds in years 1-3 totaling approximately $1.1 million.
The contract states use of the funds must be mutually agreed to by the District and the City.
Approximately $300,000 was used for the roof repair. He suggested researching that reserve fund as
well as researching Edmonds' residents' assessments to determine if Edmonds is subsidizing other
cities in the Sno-Isle System. Councilmember Teitzel expressed interest in reviewing the proforma if
one was prepared when the decision was made to join Sno-Isle.
Action: Council/Legislative Assistant Andrew Pierce to research and provide a report within 4-6 weeks.
The meeting was adjourned at 8:20 p.m.