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HomeMy WebLinkAbout10-07-2002 CITY OF AUBURN FINANCE COMMITTEE October 7, 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 Gene Cerino. Others present included: Mayor Peter B. Lewis, Finance Director Shelley Coleman, Benefits and Compensation Manager John Fletcher, City Attorney Daniel B. Held, Probation Services Manager Greg Bockh and City Clerk Danielle Daskam. The meeting was tape recorded. I1. APPROVAL OF MINUTES A. Minutes of the September 16, 2002 Finance Committee meetinq. Vice Chair Borden moved and Member Cerino seconded to approve the September 16, 2002 Finance Committee minutes. MOTION CARRIED UNANIMOUSLY. 3-0. II1. CONSENT ITEMS A. Vouchers 1. Claims F4.9.5 Claims check numbers 314417 through 314925 in the amount of $2,222,224.58 and dated October 7, 2002. 2. Payroll F4.9.2 Payroll check numbers 501693 to 501843 in the amount of $286,001.58 and electronic deposit transmissions in the amount of $863,406.87 for a grand total of $1,149,408.45 for the pay period covering September 7, 2002 to October 2, 2002. Finance Committee Minutes for October 7, 2002 Page 2 B. Surplus Property F4.6,1 1. Fire Department City Council to authorize the surplus and disposal of the following described apparatus which are in disrepair and no longer in service: 1971 Mack 75 foot aerial VIN #CF685FAP-1133 1979 Mack pumper VIN #CF612F(15)-1009 2. Airport City Council to authorize the surplus and disposal of the following described equipment which is of no further use to the City: 1 each - fire extinguisher; no inventory control number C. Bad Debt Write-off F4.12 City Council authorize the write off of a refuse account bad debt in accordance with City policy in the amount of $177.86. D. Business Enterprise Center City Council to consider continuing partial rent payment for the Business Enterprise Center for the period of September 2002 through August 2003 in the amount of $2,000 per month for a total of $24,000. Vice Chair Borden moved and Member Cerino seconded to approve the Consent Items. MOTION CARRIED UNANIMOUSLY. 3-0. Finance Committee Minutes for October 7, 2002 Page 3 IV. ORDINANCES AND RESOLUTIONS A. Resolution No. 3532 A1.4.1 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to execute an Agreement between the City of Auburn and Highland Courte Treatment Center, September 10, 2002 - December 31, 2003. Compensation and Benefits Manager Fletcher explained that Resolution No. 3532 appreves an agreement with Highland Courte Treatment Center for the term September 10, 2002 to December 31, 2003. The contract continues an existing program for inpatient treatment for eligible defendants who have been assessed as chemically dependent. The agreement with Highland Courte replaces the agreement with Cedar Hills Treatment Facility, which facility is scheduled to be closed. Mr. Fletcher presented the Committee with an analysis of the substance abuse treatment costs compared to the costs of incarceration based on a 28 day treatment plan and up to 30 days administrative time for release arrangements. Mr. Fletcher estimated that since the program started in May 2001, the City has saved approximately $2.4 million in incarceration costs. Mr. Bockh spoke briefly on the success rates for treatment programs. Mr. Bockh noted that the agreement with Highland Courte provides for a minimum of eight beds with opportunity for more if needed. However, there is an increasing demand statewide for treatment beds with a limited and decreasing number of facilities. Vice Chair Borden moved and Member Cerino seconded to recommend Council approval of Resolution No. 3532. MOTION CARRIED UNANIMOUSLY. 3-0. Finance Committee Minutes for October 7, 2002 Page 4 B. Resolution No. 3533 A4,1.1 A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk of the City of Auburn to execute an Agreement for long-term health care insurance for unaffiliated City employees through UnumProvident, Unum Life Insurance Company of America. Compensation Manager Fletcher presented Resolution No. 3533 which authorizes an agreement for long-term health care insurance for unaffiliated employees. The annual cost of the program is approximately $12,000 to the City for the base plan. Employees will have the opportunity to purchase additional benefits. Vice Chair Borden moved and Member Cerino seconded to recommend Council approval of Resolution No. 3533. MOTION CARRIED UNANIMOUSLY. 3-0. V. DISCUSSION ITEMS a. VEBA Compensation Manager Fletcher updated the Committee on the status of the proposed unaffiliated employees VEBA Plan. The City is not pursuing a City contribution, but will conduct a survey and vote by the employees on a plan funded by employee contributions. Three VEBA Plan presentations will be made to unaffiliated employees, and a vote of employees will be taken in November. A 60% vote in favor of the Plan will be needed to go forward with implementation of the Plan. B. Gambling Tax Rate Finance Director Coleman presented information on the City's gambling tax rates for card rooms, pull tabs, bingo and raffles, and amusement games. She noted the City derives the majority of its gambling tax revenue from card rooms. Last year the City received approximately $1,060,000 in gambling taxes; $800,000 of that amount was from card rooms. The current City tax rate on card rooms is 12%. An increase of the tax from 12% to 15% would generate an additional $200,000 per year. The last tax increase on social card games was in 1999 when the tax rate was increased Finance Committee Minutes for October 7, 2002 Page 5 from 10% to 12%. The maximum allowable tax rate on social card rooms is 20%. Committee members reviewed the gambling tax rates for the cities of Bellevue, Federal Way, Kent, Renton, and Tukwila. Mayor Lewis commented that the Committee should not only consider the additional revenue generated by the tax increase, but also consider the increased law enfomement activities related to gambling activities. He suggested the Committee refer the proposed gambling tax rate increase to the Municipal Services Committee for review. City Attorney Heid added that state law regarding gambling taxes contains language that ties gambling taxes to enforcement responsibilities. The primary use of the taxes must be for gambling enforcement. Vice Chair Borden moved and Member Cerino seconded to refer the proposal to Municipal Services with the Finance Committee's sentiment that Finance Committee members are interested in an increase in the gambling tax rate on card rooms. MOTION CARRIED UNANIMOUSLY. 3-0. Committee members briefly commented on the State's discussion regarding a proposed law to allow slot machines in the state of Washington and the potential taxes derived from them. C. Utility Tax Rates Finance Director Coleman presented draft ordinances increasing the utility tax rate on garbage, water, storm drainage and sewer to 6%. The tax would be absorbed by the utility funds and not passed on to the customer. The net effect is approximately $700,000 in additional tax revenue for the General Fund. The ordinances will be presented to the Public Works Committee on October 14. The proposed rate increases would be effective January 1, 2003. Vice Chair Borden moved and Member Cerino seconded to refer the proposed utility tax rate increase to the Public Works Committee with the sentiment that members of the Finance Committee support the increase in order to protect the General Fund. Finance Committee Minutes for October 7, 2002 Page 6 MOTION CARRIED UNANIMOUSLY. 3-0. VI. ADJOURNMENT There being no further business to come before the Finance Committee, the meeting adjourned at 7:20 PM. APPROVED THIS DAY Of OCTOBER, 2002. Fred POe, Chair Da~r~elle Daskam, City Clerk f:\clerk\finance\fca~2002fcm I 0-07.doc