HomeMy WebLinkAbout09-03-2002 CITY OF AUBURN
FINANCE COMMITTEE
September 3, 2002
MINUTES
I. CALL TO ORDER
Chair Fred Poe called the meeting to order at 6:30 PM in Conference
Room 1 located on the first floor of Auburn City Hall, 25 West Main Street,
Auburn. Members present included: Chair Poe, Vice Chair Trish Borden,
and Member Cerino. Others present during the meeting included:
Finance Director Shelley Coleman, Human Resources Director Brenda
Heineman, Compensation and Benefits Manager John Fletcher, City
Attorney Daniel B. Held, and City Clerk Danielle Daskam. The meeting
was tape recorded.
I1. APPROVAL OF MINUTES
A. Minutes of the Auqust 19, 2002 Finance Committee meeting.
Vice Chair Borden moved and Member Cerino seconded to
approve the August 19, 2002 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
III. CONSENT ITEMS
A. Vouchers
1. Claims
F4.9.5
Claims check numbers 313643 through 314076 in the
amount of $1,380,829.59 and dated September 3, 2002.
2. Payroll
F4.9.2
Payroll check numbers 501356 to 501534 in the amount of
$535,137.66 and electronic deposit transmissions in the
amount of $818,387.76 for a grand total of $1,353,525.42 for
the pay period covering August 14, 2002 to August 23,
2002.
Finance Committee Minutes
for September 3, 2002
Page 2
B. Call for Public Hearin,q
1. 2003 Preliminary Budget
F3.17
City Council to call for a public hearing to be held
September 16, 2002 on the 2003 Preliminary Budget
including revenue estimates and possible increases in
property taxes.
C. Surplus Property
F4.6.1
1. Golf Course
City Council to authorize the surplus and disposal of
the following described property:
One (1) 1977 Chevy Step Van VIN #CPL3273300427
Committee members briefly discussed Claims Voucher 313713 to
Berryman & Henigar Inc.
Motion by Vice Chair Borden, second by Member Cerino to
approve the consent items.
MOTION CARRIED UNANIMOUSLY. 3-0.
IV. ORDINANCES AND RESOLUTIONS
There was no ordinance or resolution for consideration.
V. DISCUSSION ITEMS
A. Utility Taxes
Finance Director Coleman presented the Committee members with
a handout that contained information on potential revenue from
utility tax increases, comparison of utility tax rates among cities in
the valley, and historical and current data related to general fund
taxes. The same information was previously provided to the Public
Works Committee.
Ms. Coleman updated the information on the survey of cities and
reported that the City of Tukwila is proposing a tax rate increase to
6% for telephone, electric and gas. Kent has not responded to the
Finance Committee Minutes
for September 3, 2002
Page 3
survey yet, and Federal Way is not proposing any changes in their
taxes at this time. Ms. Coleman urged the Committee members to
consider increasing the tax rate on gas, electric, telephone and
refuse to six percent.
Committee members reviewed the historical revenue data. Ms.
Coleman noted that in 2001 revenues increased six percent, but
the 2002 Budget revenues are nearly ten percent less. The
projected actual for 2002 will be in line with the 2002 budgeted
revenues.
Ms. Coleman reviewed the General Fund balance. She explained
that in the past few years, revenues grew at a greater rate than
expended; revenues came in higher than budgeted and
departments under spent. She anticipates that the 2003 Budget
will see a reduction in the fund balance. She estimated the 2003
beginning fund balance at approximately $9 million,
Ms. Coleman indicated that the Public Works Committee members
were supportive of the tax increase.
Vice Chair Borden expressed support for the tax increase, but
requested tax rate information from the cities of Kent and Federal
Way.
Chair Poe stated that that he would prefer to review the preliminary
budget before making a decision on potential tax increases.
Committee members discussed potential efforts by King County to
tax utilities.
The Committee agreed to continue discussion of the utility taxes to
the October 7, 2002 meeting when preliminary budget expenditure
figures will be available.
B. Long-term Care Survey
Human Resources Director Heineman reported on the employee
survey on unaffiliated employee interest in long term care
insurance coverage. There are 160 unaffiliated employees, and
approximately fifty percent of the surveys were returned. Of those
returned, 54 are interested in buying-up on long term care
Finance Committee Minutes
for September 3, 2002
Page 4
insurance, two are not interested at all, one needed additional
information, and 12 are interested in a basic plan without buying
up. The annual cost to provide the employer-paid basic long-term
care plan would be $8,000 to $11,000.
Ms. Heineman distributed brochures on the MSNVEBA (public
sector) Plan. The VEBA Plan is a pre-tax medical savings plan
which can be used to pay out-of-pocket health care costs. Ms.
Heineman explained that a VEBA plan must be set up by an
employer for an employee group. Ms. Heineman suggested that
the City offer a one-half percent employer contribution with an
equal mandatory employee contribution to the VEBA Plan. The
annual cost to the City for the VEBA Plan would be $36,000.
Ms. Heineman briefly spoke regarding the rising cost of health care
insurance.
The Committee members agreed to discuss the concept of an
employer-paid VEBA Plan at the next Committee meeting.
C. Collective Bargaining Agreements
Human Resources Director Heineman reported that the court
clerical unit approved their contract, the Maintenance and
Operations employees unit will vote on their contract September
10, and the Fire Department contract ballots will be counted on
September 8.
VI. ADJOURNMENT
There being no further business to come before the Finance Committee,
the meeting adjourned at 7:17 PM.
APPROVED THIS /~ ~ DAY OF SEPTEMBER, 2002.
red Poe, Chair ' askam, City Clerk
f:~clerk\finance\fca~2002FCM09-03