HomeMy WebLinkAboutITEM III-DFINANCE COMMITTEE
WASHINGTON
MINUTES
SEPTEMBER 21, 2009
I. CALL TO ORDER
Chair Nancy Backus called the meeting to order at 6:30 p.m. in the
Council Conference Room at Auburn City Hall, located at 25 West Main
Street in Auburn. Chair Backus, Vice Chair Bill Peloza and Member Lynn
Norman were present. Present during the meeting were Mayor Peter B.
Lewis; Assistant City Attorney Steve Gross; Finance Director Shelley
Coleman; Planning, Building and Community Director Cindy Baker;
Assistant Planning Director Kevin Snyder; Grant Writer Michael Wilson;
Deputy Police Chief Bob Lee; and City Clerk Danielle Daskam.
II. CONSENT ITEMS
A. Approval of Minutes
1. Minutes of the September 8, 2009 Finance Committee
meeting.
Vice Chair Peloza moved and Member Norman seconded to
approve the September 8, 2009 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
B. Vouchers
1. Claims
F4.9.5
Claims check numbers 388646 through 388976 in the
amount of $4,994,065.22 and dated September 21, 2009.
2. Payroll
F4.9.2
Payroll check numbers 527265 to 527357 in the amount of
$778,971.89 and electronic deposit transmissions in the
amount of $1,150,302.82 for a grand total of $1,929,274.71
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Finance Committee Minutes September 21, 2009
for the pay period covering September 3, 2009 to
September 16, 2009.
Committee members reviewed the consent items and briefly
discussed claim vouchers 388648, 388653, 388659, 388666,
388673, 388683, 388692, 388814, and 388830.
Vice Chair Peloza moved and Member Norman seconded to
approve the vouchers.
MOTION CARRIED UNANIMOUSLY. 3-0.
III. ORDINANCES AND RESOLUTIONS
A.
B.
Ordinances
There was no ordinance for Committee approval.
Resolutions
1. Resolution No. 4526
F5.4.1
A Resolution of the City Council of the City of Auburn,
Washington, authorizing the Mayor to accept grant funds
from the U.S. Department of Justice for Byrne Memorial
Grant and acceptance of an Interlocal Agreement with the
City of Seattle Police Department
Grant Writer Wilson explained that the City of Seattle Police
Department is the regional grant coordinating agency for
Justice Assistance Grant (JAG) funds. In order for the City
to receive the JAG grant funding, the City must execute an
interlocal agreement with the Seattle Police Department.
The City of Auburn was awarded a grant in the amount of
$161,101 for the following programs: 1) $40,000 for
community policing; 2) $50,000 for the Municipal Court's
alternative to incarceration mental health and substance
abuse program; and 3) $71,101 for installation of a video
surveillance system for the new city parking facility.
Vice Chair Peloza moved and Member Norman seconded to
approve and forward Resolution No. 4526 to the full Council.
MOTION CARRIED UNANIMOUSLY. 3-0.
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Finance Committee Minutes September 21, 2009
2. Resolution No. 4528
04.4.13; F6.17
A Resolution of the Cit
Washington, authorizing
Services Agreement with
I nc.
f Council of the City of Auburn,
the Mayor to sign a Financial
Breckenridge Consulting Services,
Grant Writer Wilson stated that Resolution No. 4528 and the
Financial Services Agreement with Breckenridge Consulting
Services is the precursor to initiation of New Market Tax
Credits funding. New Market Tax Credits are an alternative
financing structure that has been created by Congress to
allow for investment of funds into communities for economic
development purposes.
The City intends to fund and construct a new community
center/activity center using New Market Tax Credits. The
total project cost is $11.2 million. The project will be funded
utilizing a mix of existing City funds, a partnership with the
Boys and Girls Club, Community Development Block Grant
funds and a Housing and Urban Development (HUD)
Section 108 loan, and New Market Tax Credits funding.
Committee members briefly discussed the financing
strategies for the project.
Due to the complexity of new market tax credit transactions,
staff recommends the City retain financial consultant
services to assist in navigating the City's new market tax
credit financing initiative and coordinate/manage the
process. The City solicited proposals from financial
consultants and received responses from five firms, two of
which are located in the Pacific Northwest. A panel
consisting of Councilmember Wagner, Finance Director
Coleman and Mr. Wilson interviewed the two firms and
ultimately selected Breckenridge Consulting Services as the
firm that best meets the City's financial service needs.
Vice Chair Peloza moved and Member Norman seconded to
approve and forward Resolution No. 4528 to the full Council.
MOTION CARRIED UNANIMOUSLY. 3-0.
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Finance Committee Minutes September 21, 2009
IV. DISCUSSION ITEMS
A. Ordinance No. 6266
An Ordinance of the City Council of the City of Auburn,
Washington, amending Title 15, Buildings & Construction, of the
Auburn City Code
Committee members briefly reviewed Ordinance No. 6266.
B. Resolution No. 4523
A Resolution of the City Council of the City of Auburn, Washington,
declaring certain items of property as surplus and authorizing their
disposal
Committee members briefly reviewed Resolution No. 4523 which
declares a seized/forfeited vehicle as surplus.
C. Quarterly Investment Summary
Committee members reviewed the quarterly investment portfolio
summary for the period ending August 31, 2009.
D. Update on SCORE Financing
Finance Director Coleman presented a September 21, 2009 memo
regarding SCORE debt options. The finance representatives from
the SCORE member cities have been analyzing debt options for
the SCORE project. Finance Director Coleman presented the
pros/cons of issuing standard tax exempt bonds or Buifd America
Bonds (BAB's), which offer a 35% tax credit to the issuing
government on the amount of interest paid. Finance Director
Coleman stated the BAB's are issued non tax exempt and
therefore carry a higher interest rate. The 35% tax credit payable
back to the issuer brings the true cost of interest on the issue to a
level that is competitive and often preferable to tax exempt bonds.
However, there are some limitations on how the bond proceeds
may be used when compared to tax exempt bonds.
The recommendation is that SCORE issue Build America Bonds.
The net positive cash flow to the City will average $268,100
annually, and the total interest savings to the City is estimated at
$5.9 million over the term of the issue. The option of Build America
Bonds will require the City to finance start up capital of $1.223
million from an interFund loan.
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Finance Committee Minutes September 21, 2009
VI. ADJOURNMENT
There being no further business to come before the Committee, the
meeting adjourned at 7:24 p.m.
APPROVED THE DAY OF OCTOBER 2009.
Nancy Backus, Chair
Danielle Daskam, City Clerk
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