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05/08/2012 Finance CommitteeFINANCE COMMITTEE MEETING MINUTES May 8, 2012 Councilmembers Present Councilmember Buckshnis Councilmember Yamamoto Public Present Ron Wambolt Roger Hertrich Bruce Witenberg Dick Van Hollebeke Staff Present Shawn Hunstock, Finance Director Carrie Hite, Parks & Recreation Director Phil Williams, Public Works Director Carl Nelson, CIO Sarah Major, Accountant Jeannie Dines, Recorder Councilmember Buckshnis called the meeting to order at 6:28 p.m. A. Authorization to Sell Two (2) Surplus Ford Crown Victoria Patrol Vehicles to the City of Tenino, Washington Mr. Williams explained these are 2006 and 2008 police vehicles. Both have over 100,000 miles which is when City vehicles are typically rotated out of the fleet. Police vehicles are typically auctioned and on average bring $3500 each. In this case, a municipal entity wants to buy the vehicles, saving the City from stripping the vehicles for sale to a civilian. The City purchased six Crown Victoria Police Interceptor models last year because Ford will not offer that model after 2011. Those vehicles were placed in storage and will be sufficient to replace patrol vehicles through 2013. Action: Schedule on the Consent Agenda. B. 2012 May Budget Amendment Mr. Hunstock relayed the amount will be corrected from $102,630 to $101,172.90. The funding source is the General Fund balance. Funds will be moved from the General Fund to REET where all the other Haines Wharf project costs have been captured. Action: Schedule on the Consent Agenda. C. Update on Park Impact Fee Study Ms. Hite explained the Council unanimously approved a Park Impact Fee Study and $30,000 was included in the budget in the REET Fund. Based on language adopted by the Legislature to allow REET to be used for maintenance and operations, staff decided the study would be an allowable expenditure from REET. After the exit interview with the auditor, she emailed MRSC who indicated this is a gray area. As park maintenance is an eligible REET expenditure, she proposed expending the $30,000 for the Park Impact Fee Study from the General Fund and doing a journal ledger entry to spend $30,000 for park maintenance budget from REET funds. This will have no impact on the REET or General Fund budget. She briefly reported on the schedule for the Park Impact Fee Study. Action: Schedule on the Consent Agenda. D. DRAFT 2011 Financial Statements Mr. Hunstock reported four parts are still being finished, 1) a transmittal letter, 2) MDNA executive level overview of the financial statements, 3) notes, and 4) the statistical section with 10 years of historical information. Those will be completed before the financial statements are released to the auditor at the end of this week or early next and then provided to the Council. 05 -08 -12 Finance Committee Minutes, Page 2 Mr. Hunstock responded to questions regarding specific reserve funds, footnotes, timing of a reserve policy, and delay in the receipt of the Public Facility District's financial statements. Action: Schedule for full Council in two weeks. E. 2012 First Quarter Financials Mr. Hunstock explained this is a work in progress. There is no narrative because it is too early to identify consistent trends. He planned to add user friendly information such as trends with charts and graphs and narrative information regarding significant items. Mr. Hunstock reviewed the 2012 first quarter financials, commenting nothing stands out. Discussion followed regarding the reduction in liquor excise taxes and profits. He reviewed expenditures by department, noting the Human Resources Department is over budget due to use of a consultant and overtime. That was addressed by a budget amendment but the first quarter financials do not reflect the budget amendment the Council adopted in April. Action: Schedule for full Council in two weeks. F. March Monthly General Fund Update Mr. Hunstock highlighted revenues and expenses that are over and under budget. He explained the graphs follow Redmond's format. Information in the report is consistent with past monthly reports but is formatted differently. This report will be posted on the City's website. Councilmember Buckshnis suggested using footnotes to explain any deviations. Action: Schedule for full Council next week. :r�iTf1IC•� • u u - Ron Wambolt, Edmonds, was disappointed the graphs do not provide as much historical information, particularly seasonality for REST. He pointed out a multi -year executive forecast has not been prepared since the budget was produced; that would be helpful, particularly during exploration of a Metropolitan Park District. Mr. Hunstock agreed, stating the loss of liquor excise tax will have a significant impact on the projections. Councilmember Buckshnis inquired about an actuary for LEOFF 1 and whether the 511 B fund is sufficient funded. Bruce Witenberg, Edmonds, expressed concern with recent appropriations for additional legal counsel and asked why the City Attorney was not able to handle it within their flat fee. Councilmember Buckshnis responded that is executive session material. There are specific reasons why external attorneys are needed on some issues. For example, at next week's closed record hearing the Council will have their own attorney to avoid a conflict of interest. Mr. Witenberg was concerned citizens would not support a Metropolitan Park District if the Council was appropriating additional legal fees and approving damage awards. Dick Van Hollenbeke, Edmonds, asked the impact to the City's budget of the loss of liquor excise taxes. Mr. Hunstock responded it was a reduction of $211,000 /year. Roger Hertrich, Edmonds, agreed with Mr. Witenberg's concerns. He doubted citizens would support a MPD due to issues such as that. Adjournment — The meeting adjourned at 7:29 p.m.