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HomeMy WebLinkAbout12-01-2003WASHINGTON MINUTES FINANCE COMMITTEE DECEMBER 1, 2003 I. CALL TO ORDER Chair Fred Poe called the meeting to order at 6:00 p.m. in the Council Conference Room located at City Hall, 25 West Main Street, Auburn, Washington. Committee members present included: Chair Fred Poe, Vice Chair Gene Cerino, and Member Nancy Backus. Also present during the meeting were: Mayor Peter B. Lewis, Councilmember-elect Lynn Norman, Councilmember-elect Bill Peloza, City Attorney Daniel B. Heid, Finance Director Shelley Coleman, Human Resources/Risk Management Director Brenda Heineman, and City Clerk Danielle Daskam. II. APPROVAL OF MINUTES A. Minutes of the November 17, 2003 Finance Committee meeting. Vice Chair Cerino moved and Member Backus seconded to approve the November 17, 2003 minutes. MOTION CARRIED UNANIMOUSLY. 3-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 326109 through 326447 in the amount of $1,286,515.81 dated December 1, 2003. 2. Payroll F4.9.2 Payroll check numbers 506400 to 506577 in the amount of $335,022.97 and electronic deposit transmissions in the amount of $965,902.17 for a grand total of $1,300,925.14 for Page 1 Finance Committee Minutes December 1, 2003 IV the pay period covering November 13, 2003 to November 26, 2003. B. Surplus Property F4.6.1 1. Fire Department City Council to authorize the surplus and disposal of the following items: Make Model Serial No. Asset No. Tvpe Frigidaire FPD-16TM 1565058 None Frost Free Refrigerator Frigidaire FPD-16TM 1571716 None Frost Free Refrigerator C. Contract Administration 1. Professional Services Contract A3.16.3 City Council to authorize the extension of a Professional Services Contract with Advocates, Inc. relating to post office expansion/relocation issues. Finance Director Coleman briefed the Committee members on the request to authorize the extension of a professional services contract with Advocate, Inc. Since April, Advocates, Inc. has been working on behalf of the City meeting with US Postal Service representatives and US Congressional delegation members to secure funding for and work through issues related to the relocation of the post office distribution facilities from the main post office and provide for expansion of the current post office retail facility. Extending the contract for another five months would allow their work to continue. Mayor Lewis reported that the Federal General Services Administration has approximately 35,000 square feet available for lease for possible use by the US Postal Service as a new distribution facility. Vice Chair Cerino moved and Member Backus seconded to approve the consent items. MOTION CARRIED UNANIMOUSLY. 3-0. ORDINANCES AND RESOLUTIONS Page 2 Finance Committee Minutes December 1, 2003 A. Ordinance No. 5797 F6.8 An Ordinance of the City Council of the City of Auburn, Washington, amending Sections 3.84.040 and 3.88.040 of the Auburn City Code relating to taxes on outside utilities Finance Director Coleman presented Ordinance No. 5797, which increases utility taxes on telephone, gas, and power by .5% from 4.5% to 5.0% and levy a utility tax on cable services. Proceeds from the tax increase would be used for capital projects. The proposed effective date is April 2004. Ms. Coleman estimated that the City receives approximately $3.3 million from outside utility taxes from the current 4.5% tax rate. The tax increase would generate approximately $500,000. Director Coleman presented a graph to the Committee members illustrating a comparison of general fund revenue and expense from 1995 projected through 2009. Vice Chair Cerino moved and Nancy Backus seconded to recommend approval of Ordinance No. 5797. Chair Poe spoke in favor of providing more public notice of an anticipated tax increase through public hearing or other notification. MOTION CARRIED. 2-1. Chair Poe voted no. Councilmember Poe requested that concise data relating to the amount of taxes collected and those projected for collection be provided at the Council meeting. B. Ordinance No. 5800 F3.17 An Ordinance of the City Council of the City of Auburn, Washington, amending Ordinance No. 5702, the 2003 Budget Ordinance, as amended by Ordinance No. 5738 and Ordinance No. 5762, and authorizing the Mayor to accept Schedule "A" which relates to the City of Auburn 2003 Budget for additional appropriations in various funds pursuant to RCW 35A.33.120, and setting forth findings. Finance Director Coleman presented Ordinance No. 5800 which amends the 2003 budget ordinance. The ordinance includes the transfer of funds from the LID Guarantee Fund to the General Fund and then to the Capital Improvement/Projects Fund. Page 3 Finance Committee Minutes December 1. 2003 V. Director Coleman explained that there is sufficient funding in the existing Parks and Recreation budget to fund the senior swim program discussed at the November 17, 2003 meeting. Vice Chair Cerino moved and Member Backus seconded to recommend adoption of Ordinance No. 5800. MOTION CARRIED UNANIMOUSLY. 3-0. C. Ordinance No. 5804 F4.11 An Ordinance of the City Council of the City of Auburn, Washington, amending Section 3.04.600 of the Auburn City Code pertaining to change funds for City departments Finance Director Coleman presented Ordinance No. 5804. She noted that the version presented at the meeting includes the addition of change funds for the building division and the detention facility. Each change fund is $200. Vice Chair Cerino moved and Member Backus seconded to recommend adoption of Ordinance No. 5804. MOTION CARRIED UNANIMOUSLY. 3-0. D. Ordinance No. 5808 F3.18 An Ordinance of the City Washington, adopting the Washington, for the year 2004 Council of the City of Auburn, budget for the City of Auburn, Finance Director Coleman presented Ordinance No. 5808 and reported that the changes discussed in the budget work session held November 12, 2003, are incorporated in the budget ordinance. Vice Chair Cerino moved and Member Backus seconded to recommend adoption of Ordinance No. 5808. MOTION CARRIED UNANIMOUSLY. 3-0. DISCUSSION ITEMS A. Resolution No. 3665 — Endorsing Streamlined Sales Taxes Page 4 Finance Committee Minutes December 1, 2003 Finance Director Coleman presented Resolution No. 3665, endorsing the adoption and implementation of streamlined sales taxes by the State of Washington at such time as and concurrent with federal adoption of internet and catalog sales taxes and requesting that any system adopted by the State not negatively impact cities Director Coleman explained that the effect of the proposed streamlined sales tax moves the sales transaction from point of sale to point of delivery. Automobile sales are exempt from streamlined sales tax. Vice Chair Cerino moved and Member Backus seconded to recommended Council approval of Resolution No. 3665. MOTION CARRIED UNANIMOUSLY. 3-0. VI. ADJOURNMENT There being no further business, the meeting adjourned at 6:39 p.m. APPROVED THE DAY OF 2003. Fred Poe, Chair I:\c1erk\finance\fcm\2003fcm 12-01 Danielle Daskam, City Clerk Page 5