FC022718FINANCE COMMITTEE MEETING
February 27, 2018
Elected Officials Present Staff Present
Councilmember Dave Teitzel (Chair) Scott James, Finance Director
The meeting was called to order at 7:08 p.m. in the Jury Meeting Room.
1. Ordinance revisina the ECC Section 3.20.080 reaardina Timina of Tax Pavment
Mr. James explained in 2017, the City received 717 individual payments totaling $1.1 million; of those
578 totaling $37,000 were less than $600. As a result, the City is processing a lot of small checks,
incurring the expense of staff time and bank processing fees. The proposal is to amend ECC Section
3.20.080 to require, 1) businesses with gross income of $10,000 or more/month to remit taxes on
monthly gross income monthly; 2) businesses with gross income under $10,000/month would remit
taxes quarterly. Discussion followed regarding minor changes to the wording in the ordinance, number
of payments under $100, and labor savings this would provide.
Action: Schedule for brief presentation to full Council on March 61h
2. Taxation Methods to Replace SERS Radios
Councilmember Teitzel recalled the presentation to Council regarding the need to replace the SERS
radio system at an estimated cost of $75 million. Taxation methods under consideration include
property tax, sales tax or potentially other funding strategies. Comments at a recent 21s' District Town
Hall indicated citizens are struggling with the amount of their property taxes, especially those on fixed
incomes. He noted sales tax is somewhat under a citizen's control versus property tax which is not.
Mr. James relayed the estimated countywide sales tax to provide that amount would be 0.1%. For
example, Edmonds' sales tax would increase from 10.3% to 10.4%. Another potential revenue source
could be increasing the E911 charge on phones. The goal is a fair funding source(s) that considers
cities with limited sales tax base, cities with high property values, etc. He plans to meet with other
cities' finance directors to discuss the method(s).
Discussion followed regarding concern with the impact of a sales tax increase on businesses, amount
a 0.1% increase generates on a $30,000 vehicle ($30), and role City/County Councils' role in
endorsing a funding strategy.
Action: Information only
3. Ordinances related to the Edmonds Marsh Fund, Homelessness Fund and Opioid
Respond Fund
Councilmember Teitzel relayed Councilmember Buckshnis is finetuning the draft ordinance regarding
the Edmonds Marsh Fund. He and Council President Nelson will begin drafting the ordinances for the
Homelessness and Opioid Response Funds.
Action: Schedule ordinances on future Finance Committee agenda
4. Public Facilities District Grant Anticipation Loan
02/27/18 Finance Committee Minutes, Page 2
Mr. James relayed the PFD obtained grants in the amount of $575,000 from Snohomish County and
the State; $125,000 for theater equipment upgrades and the remainder to replace the roof. Grants are
disbursed on a reimbursement basis; funds are expended, and invoices submitted for reimbursement,
agencies typically reimburse within 3-4 weeks. The City Attorney is drafting an Interlocal Agreement
(ILA) for Council and PFD Board approval. Theater equipment purchases will begin in April, the roof
replacement will be paid in two payments, at the halfway point and upon completion (July). He
anticipated the City would be completely reimbursed by the PFD by September. The interest rate will
be based on the Washington State Local Government Investment Pool (LGIP) which is currently
about 1.2-1.3%. Discussion followed regarding drafting the ILA and surety of the grant awards.
Action: Schedule for Full Council once the ILA is completed (March 6' or 2011)
Councilmember Teitzel requested all future Finance Committee agendas include at least one of the
financial policies. He suggested scheduling the Capital Asset Policy at the next agenda with director
input regarding small and attractive assets. He suggested the next meeting also include a timeline,
and prioritization for drafting/reviewing policies. Mr. James pointed out policies that need to be
established include a budget policy, debt policy, and asset and management policy; the reserve policy
also needs to be updated. Councilmember Teitzel noted some policies also need to be reviewed by
Long Range Financial Planning Committee.
The meeting was adjourned at 7:40 p.m.