FC072517FINANCE COMMITTEE MEETING
July 25, 2017
Elected Officials Present Staff Present
Councilmember Diane Buckshnis (Chair) Scott James, Finance Director
Councilmember Dave Teitzel Dave Turley, Assistant Finance Director
Jeannie Dines, Recorder
The meeting was called to order at 7:35 p.m. in Council Chambers.
2018 Budget
Mr. James reviewed Decision Package Submittal and Line Item Change Notation Requirements
(internal procedure):
• Decision Packages for Operations
o Decision packages are required for all account increases greater than $500, with an
exception for utility funds where decision packages are required for account increases
greater than 1 %
o Decision packages required for division requests that total more than $500 with an exception
for utility funds where decision packages are required for all division increases greater than
$10,000
Program Narratives in Budget Book
o In the 2018 Budget Changes section, staff should describe:
■ Changes in budget including changes in level of staffing, programmatic strategies and
major services level impacts of budget changes; and
■ Account changes greater than $100 from 2017's budget for each account, with an
exception for utility funds.
- For utility funds, account change notations are required for all account increases
greater than $1000 or greater than $10,000 for each division. Explanation should be
very brief.
■ If no budget changes for department or program, please indicate "none" under this
section header. Do not include decision package requests in this section.
Mr. James responded to questions about the authority for requiring decision packages for increases
greater than $500 and for budget changes, why and when a $500 limit was selected, limits in other
cities, and the intended audience for decision packages and budget changes section. Committee
requested no reorganizations as a function of the budget
Action: Information only
2. Paid Student Internship
Mr. James reported the City was approached about hiring a college bound high school student through
a UW program funded via a federal grant. The program gives a student an opportunity for a fully paid
internship (12 hours/week) and to gain basic experience. This will be a third quarter budget amendment.
He recommended staff prepare a memo authorizing the hire for approval on the Consent Agenda.
Action: Schedule on Consent Agenda
07/25117 Finance Committee Minutes, Page 2
3. Finance Committee Work Plan Development
Mr. James distributed MRSC Financial Management Policies and Resources and GOFA Best Practice
Adopting Financial Policies. MRSC recommends having policies regarding asset management, cost
allocation, debt management, fund balances and reserves and investments and other financial policy
areas. Mr. James reviewed a booklet of policies he created for the City of Mukilteo; he will provide a
copy of the policies to committee members. If committee members are interested in policies that are
not included in Mukilteo's policy book, they were asked to inform Mr. Turley.
Discussion followed regarding inventorying existing and prioritizing development of new policies,
whether some policies should go through Parks, Planning & Public Works Committee such as the
Infrastructure Policy, preparation of the facility condition report and street condition report, avoiding
mechanics in policies, replacing Ordinance 3789, putting all fees in one document, intent of policies as
guidelines, annexation of Esperance, MRSC article "Which Financial Policies Work Best? It
Depends...," policies versus administrative procedures, existing City policies that have not been
adopted via resolution, priority of policy development, value of a debt policy, and the purpose of a budget
policy.
Action:
1. At next Finance Committee meeting, staff share progress of Long Range Planning Committee and
provide a matrix of existing City policies, date the policy was last updated, policies that are needed
and prioritization.
3. After Long Range Planning Committee's next meeting, provide report to Finance Committee
4. Mr. Turley develop Asset Management policy for review by Finance Committee
The meeting was adjourned at 8:50 p.m.