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Home My WebLink About10-21-2002 CITY OF AUBURN FINANCE COMMITTEE October 21, 2002 MINUTES I. CALL TO ORDER Chair Fred Poe called the meeting to order at 6:30 PM at Cascade Middle School, 1015 24th Street NE, Auburn. Members present included: Chair Poe and Member Gene Cerino. Vice Chair Trish Borden arrived at 6:34 PM. Others present during the meeting included: Mayor Peter B. Lewis, Finance Director Shelley Coleman, Human Resources Director Brenda Heineman, Compensation and Benefits Manager John Fletcher, City Attorney Daniel B. Heid, and Deputy City Clerk Cathy Richardson. The meeting was tape recorded. II. APPROVAL OF MINUTES A. Minutes of the October 7, 2002 Finance Committee meetin.q. Member Cerino moved and Chair Poe seconded to approve the October 7, 2002 minutes. MOTION CARRIED UNANIMOUSLY. 2-0. III. CONSENT ITEMS A. Vouchers 1. Claims F4.9,5 Claims check numbers 314926 through 315268 in the amount of $4,166,931.05 and dated October 21, 2002. 2. _Payroll F4.9.2 Payroll check numbers 501844 to 502003 in the amount of $646,444.70 and electronic deposit transmissions in the amount of $834,953.05 for a grand total of $1,481,397.75 for the pay period covering October 3, 2002 to October 18, 2002. Page 1 Finance Committee Minutes October 21,2002 B. Surplus Property F4.6.1 1. Planning & Community Development Department City Council to authorize the surplus and disposal of the following described equipment which is of no further use to the City: Polaroid Electric Eye Land Camera, model J66, serial no. J282230, with carrying case 2. Police Department City Council to authorize the surplus and disposal of the following described equipment which is of no further use to the City: Canon AP110 Electric Typewriter/City ID tag 0012100006 1 work station One 4 drawer file cabinet, City ID 032 115 1 keyboard drawer 1 desk hutch 1 two drawer file cabinet 1 two shelf bookcase 3. Finance Department City Council to authorize the surplus and disposal of the following equipment which is of no further use to the City: Item COA Asset # Serial # Digital Alpha Server 1000 4/266 0012100059 N161303H00 Digital 15 inch Monitor 3N55108003 Digi Board (s) D30 03757 C. Call for Public Hearing F3.17 City Council to call for a public hearing to be held on November 4, 2002 to receive public comment on the 2003 Budget. Member Cerino moved and Chair Poe seconded to approve the consent agenda. MOTION CARRIED UNANIMOUSLY. 2-0. Chair Poe recessed the meeting at 6:34 PM. Vice Chair Borden arrived at this time. Page 2 Finance Committee Minutes October 21,2002 Chair Poe reconvened the meeting at 6:35 PM IV. ORDINANCES AND RESOLUTIONS A. Ordinance No. 5699 04.7 An Ordinance of the City Council of the City of Auburn, Washington amending Chapter 3.40 of the Auburn City Code by increasing the water, storm drainage and sewer utility fund tax from four and one- half percent to six percent, effective January 1, 2003. Vice Chair Borden moved and Member Cerino seconded to approve Ordinance No. 5699 and Ordinance No. 5700. Director Coleman reviewed current utility tax rates. MOTION CARRIED UNANIMOUSLY. 3-0. B.Ordinance No. 5700 04.7 An Ordinance of the City Council of the City of Auburn, Washington, amending Chapter 3.41 of the Auburn City Code by increasing the City's garbage utility tax from two percent to six percent, effective January 1, 2003. See Item IV.A above for action on this item. C. Resolution No. 3541 A3.4 A Resolution of the City Council opposing Initiative 1-790, which changes the administration of the LEOFF 2 Pensions Program. Vice Chair Borden moved and Member Cerino seconded to approve Resolution No. 3541. Director Coleman distributed a memorandum dated October 21, 2002 reflecting the estimated financial impact of 1-790 to the City based upon the actuarial study performed by the Office of the State Actuary. Director Coleman explained that 1-790 calls for a minimum benefit based upon an investment return of eight percent. Mayor Lewis stated that, in the event the investment return was less than eight percent, the City would be required to pay the difference. Due to the current economic climate, the City would be Page 3 Finance Committee Minutes October 21, 2002 forced to reduce full time fire and police employees by a comparable amount. Director Coleman stated that critical language relating to investment earnings of the trust in excess of eight percent states that excess earnings are to be used exclusively for additional benefits rather than shoring up those years with returns of less than eight percent. MOTION CARRIED UNANIMOUSLY. 3-0. V. DISCUSSION ITEMS A. 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. Director Coleman noted that unaffiliated employees pay for one- quarter of their health care costs. Director Coleman reported that long-term health care insurance can be offered to unaffiliated employees at a relatively Iow cost and offers the opportunity for employees to purchase additional benefits. Member Cerino referred to page S-2, Guaranteed Renewable. Member Cerino expressed concern regarding the wording under guaranteed renewable benefits relating to information required by Unum. City Attorney Held referred Committee Members to page S-3, which defines some of the required information. The information must have a bearing on the insurance. Director Heineman stressed that the long-term health care insurance package is a very good, Iow-cost benefit, which can be offered to unaffiliated employees. Employees would have the option of purchasing additional benefits to include immediate and extended family members. Committee Members reviewed rates for the base plan. Page 4 Finance Committee Minutes October 21, 2002 Director Heineman stated that, in the event rates increase, the benefit could be reviewed and changed at that time. Director Heineman pointed out that, in addition to sick-leave and comp-time cash out options, two additional vacation days, and greater life insurance benefits, health care benefits for affiliated employees are paid one-hundred percent by the City. At this time, unaffiliated employees pay twenty-five pement of health care costs and pay thirty-three percent each year of any increase in rates. Director Heineman reported that approximately ten cities and the federal government currently offer the Unum long-term health care insurance benefits to their employees. Vice Chair Borden moved and Member Cerino seconded to approve Resolution No. 3533. MOTION CARRIED UNANIMOUSLY. 3-0. B. Municipal Court Jud.qe Salary Director Heineman distributed a survey of comparable cities for elected municipal court judge salaries. Director Heineman presented a request on behalf of Judge Patrick Burns for review of his salary. The municipal court judge position is fairly new. Judge Burns is currently serving the first year of his second term as municipal court judge for the City of Auburn. Director Heineman reported that the salary survey of the cities of Kent, Renton, Olympia, and Bremerton revealed that the average salary for an elected municipal court judge is approximately $95,338. Committee Members reviewed Judge Burn's salary history. Vice Chair Borden moved and Member Cerino seconded to increase the salary for the municipal court judge to step six of the executive pay range, which is commensurate with his years of service as Auburn Municipal Court Judge, effective January 1, 2003. MOTION CARRIED UNANIMOUSLY. 3-0. C. 2002 Third Quarter Reports Director Coleman distributed the 2002 Third Quarter Revenue Report. Director Coleman reported that overall revenues are at approximately seventy-one percent of revenue projections. Property tax revenues, which are at fifty-five percent, are not due until the end of October. Page 5 Finance Committee Minutes October 21, 2002 Committee Members reviewed sales, use, utility, and gambling tax revenues, which are currently meeting revenue projections. Revenues are approximately nine percent less than revenues received in 2001. Director Coleman reported that real estate and excise tax (REET) revenues are stronger than anticipated by approximately $.2 million. Director Coleman stated that total expenditures are currently at approximately sixty-five to seventy percent of projections. The preliminary 2003 budget anticipates approximately $3.2 million of unspent 2002 expenditures, which will be rolled into the 2003 general fund. Committee Members reviewed the storm drainage and solid waste funds. VI. ADJOURNMENT There being no further business to come before the Finance Committee, the meeting adjourned at 7:25 PM. APPROVED THIS /~ DAY OF NOVEMBER, 2002. Fred Poe, Chair Cathy Ricl:lardson, Deputy City Clerk I:\clerk\finance~fca~2002fca 10-21 Page