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.
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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.