FC071018FINANCE COMMITTEE MEETING
July 10, 2018
Elected Officials Present
Councilmember Dave Teitzel (Chair)
Councilmember Diane Buckshnis
Staff Present
Scott James, Finance Director
Dave Turley, Assistant Finance Director
Gerrie Bevington, Recorder
The meeting was called to order at 7:34 p.m. in the Jury Meeting Room. Edmonds Senior Center
Commitment was added to the agenda as Item 4.
Second Quarter 2018 Budget Amendment
Mr. James explained the eight budget amendments have been previously presented to Council. The
majority of the expense is repayment of CDBG funds for the Senior Center.
• New Revenue: $ 37,479
• Expense: $358,104
• Amendments
o Salary and benefits to cover two weeks of overlap/job shadowing in City Clerk's office
o Add anticipated 2019 costs to 2018 for new permit system implementation
o Second half of Joint M&O Meadowdale Playfields for 2017
o *Add Public Works Senior Accountant/Analyst*
o *Reduce Finance Department Senior Accountant budget by 50%
o Additional costs for long term care for a LEOFF 1 member (Disability Board)
o Repayment to Snohomish County of CBDG funds for senior center
o Carryforward to convert one work truck to biofuel propane that was not converted in 2017
* Removed from the budget amendment
Discussion followed regarding the City's contribution to the Meadowdale Playfields project, Public
Works' need for a senior financial analyst, Finance's need for a full-time senior accountant,
management letter the City is receiving in the audit with regard to capital assets, changes made to the
Finance senior accountant job description, grant reimbursements, and rewriting the Public Works job
description.
Action: Schedule budget amendment for full Council. Pull Finance and Public Works positions from
amendment, rewrite Public Works job description (schedule for review by PSPP Committee), justify
full-time Finance senior accountant, and schedule for Council discussion.
2. May 2018 Monthly Financial Report
Mr. Turley relayed revenues and expenses are on track. He highlighted
• Personal property tax slightly ahead of last year
• Local retail sales/use tax slightly ahead of last year due to construction
• Building Permits and Engineering Fees and Charges below last year
o Economic indicator
• Interfund Reimbursement — Contract Svcs lower than last year — timing issue
• Interest income ahead of last year
07/10/18 Finance Committee Minutes, Page 2
Mr. Turley and Mr. James responded to Council questions regarding grant billings in 2018 for 2017,
increase in parking and traffic infraction revenue, repayment of CDBG grant for senior center from
REET 1 Miscellaneous. The committee requested staff research: Decrease in 2018 in Fund 112
professional services and overtime in Development Services/Planning.
Action: Schedule on Consent Agenda
3. 76th Ave/212th Intersection Improvements -Change Order Approval
Councilmembers discussed the source of the additional project costs.
Action: Schedule on Consent Agenda, identify the source of the extra project cost
4. Waterfront Center Parking Lot
Councilmember Buckshnis referred to an agreement drafted by the Senior Center's attorney regarding
the City paying for the Waterfront Center parking lot. Discussion followed regarding the original lease
agreement, and estimated cost of the parking lot.
Action: Information only.
5. Final Acceptance of the 228—" St. SW Corridor Improvements Protect (Handling of
Unused Management Reserve)
Councilmember Teitzel inquired about the handling of the unused management reserve in Fund 112.
Mr. James described transfers made into Fund 112 as funds are needed for expenditures.
Councilmember Teitzel asked whether unused management reserve could be used for another
project. Mr. Turley advised if the source was grant funds; the granting agency can only be billed actual
costs.
Discussion followed regarding the original project budget; project reporting that includes budget,
revenue sources, and expenses; source of revenue in Fund 112; and increased REET revenue due to
the sale of four apartment buildings.
Action: Discussion only
Councilmember Teitzel inquired about progress on creating/updating financial policies. Discussion
followed regarding policies that have been completed and remaining policies (debt policy, budget
policy, fund balance policy, pavement condition index and facility condition index), reporting to Council
on impact fee receipts, 1 % for Arts, Fund 511 B, Tableau software to produce reports, unused budget
at year-end, and expenses exceeding revenues in the 2018 budget.
The meeting was adjourned at 9:00 p.m.