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
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