HomeMy WebLinkAbout03-19-2012 cn,roF. _`���� Finance Committee
March 19, 2012 - 5:30 PM
. _ ,__ _.. __,. Annex Conference Room 1
WASH INGTON, MINUTES
I. CALL TO ORDER
Chair John Partridge called the meeting to order at 5:30 p.m. in Conference Room t
located on the second floor of the City Hall Annex located at One East Main Street in
Auburn.
A. Roll Call
Chair Partridge, Vice Chair John Holman and Member Largo Wales were
present. Also present during the meeting were: MayorPeter B. Lewis, Deputy
Mayor Nancy Backus, Public Works Director Dennis Dowdy, Utilities Engineer
Dan Repp, City Attomey Daniel B. Heid, Flnancial Services Manager Rhonda
Ewing, Financial Planning Manager Martin Chaw, Information Services Director
Lorrie Rempher, Community Services Manager Michael Hursh, and City Clerk
Danielle Daskam.
B. Announcements
There was no announcement.
C. Agenda Modlfications
There was no change to the agenda.
II. CONSENT AGENDA
A. Minutes of the March 5, 2012 Regular Meeting
Vice Chair Holman moved and Member Wales seconded to approve the March 5,
2012 minutes.
MOTION CARRIED UNANIMOUSLY. 3-0.
B. Claims Vouchers (Coleman)
Claims check num6ers 411835 through 412222 in the amount of
$3,112,851.79 and dated March 19, 2012.
Committee members reviewed the claims and payroll vouchers and briefly
discussed the foilowing claims vouchers: 411873, 411917, 411960, 411981,
412005, 412068, 412160, 412197, 412204, 412086, 412107, 412167, 412180,
412202.
Member Wales noted Shat voucher number 411873 to the Auburn School District
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is payment for the City's use of school district facilities forbefore and after school
programs. Member Wales spoke in favor of reviewing the City's agreement with
the school district for use of schooi and city facilities.
MemberWales moved and Vice Chair Holman seconded to approve the claims.
and payroll vouchers.
MOTION CARRIED UNANIMOUSLY. 3-0.
C. Payroll Vouchers (Coleman)
Payroli Check numbers 532741 through 532773 in the amount of
$830,010.79 and electronic deposit transmissions in the amount of
$1,179,374.62 for a grand total of $2,009,385.41 for the pay period covering
March 1, 2012 to March 14, 2012.
See claims vouchers above for approval of payroll vouchers.
II I. ORDINANCES
A. Ordinance No. 6400 (Coleman)
An Ordinance of the City Council of the City of Aubum, Washington,
amending Ordina,nce No:6339, the 2011-2012 Biennial Budget Ordinance
as amended by Ordinance No. 6351, Ordinance No. 6352, Ordinance No.
6362, Ordinance No. 6370, Ordinance No. 6378 and Ordinance No. 6379
authorizing amendment to the City of Aubum 2011-2012 Budget as set forth
in Schedule "A"
Financial Planning Manager Martin Chaw preserrted O.rdinance No. 6400, the
2011-2012 Budget Amendment No. 7. The Ordinance was previously discussed
at the March 5, 2012 Firiance Committee meeting.. Mc. Chaw noted that a
couple small adjustments have been made to the Ordinance since March 5th;
including acknowledgment in_the cover memo regarding.the increase in the
Insurance Fund to reflect higlier unemployment insurance claim costs and an
approximate $42,000 reduction in the budgef adjustment ta reflect a total budget
adjustmentof$20,917,330:
Chair Partridge inquired regarding the golf course debt management. Financial
Planning Manager Ghaw explained that the budget amendment creates a new
Golf Course Debt SerVice Fund and funds golf course debt through an interfund
transfer from the General Fund. The Golf Course Er�terprise Fund and the Golf
Course Debt Service'Fund would be distinct, but the overall performance and
operation of the golf aourse would be evaluated w'ith the two funds camingied
through the annual financial report.
Chair Partridge expressed concem that the GolfCourse Enterprise Fund is being
supported by 4he General Fund, and stated that it was his belief that the golf
course would be self-supporting.
Mr. Chaw responded that based on the ordinance authorizing the sale of the
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bonds for the golf course clubhouse, the bonds were sold as general obligation
bonds of the City. Therefore, even though the bonds were used to finance
improvements at the goif course, the bonds were sold with the full faith and credit
of the City. City Attorney Heid added that the General Fund can be used to
support the enterprise fund operations, but enterprise funds cannot support the
General Fund.
Chair Partridge recommended adding the words "competition" and "restaurant
pertormance"to the last sentence of the second paragraph for Goif Course Debt
Management of the Ordinance cover memo to read in part: ". . . , which has
declined as a result of the economic recession, competition, restaurant
performance, and weather conditions."
Vice Chair Holman moVed and Member Wales seconded to approve Ordinance
No. 6400.
MOTION CARRIED UNANIMOUSLY. 3-0.
IV. RESOLUTIONS
A. Resolution No. 4787 (Dowdy)
A Res,olution of the City Council of the Ciry of Auburn, Washington,
declaring certain items of property as surplusand authorizing theirdisposal
Pubiic Works Director powdy exptained that Resolution No. 4787 deGares a 1993
potice jail van and alelevision as surplus property. Both items are considered too
costly to maintain and of no further use to the City.
Member Wales moved and Vice Chair Holman seconded to approve Resolution
No. 4787.
MOTION CARRIED UNANIMOUSLY. 3-0.
B. Resolution No. 4804 (Rempher)
A Resolution of the City Council of the City of Aubum, Washington,
approving and authorizing the 2012 Regional Aerial Mapping Funding
Agreement
Information Services Director Rempher presented Resolution No. 4804, which
was discussed at the Marah 5th Finance Committee meeting. Director Rempher
explained that Resolution No. 4804 approves an interlocal funding agreement to
complete the 2012 Aerial Mapping Project.
Vice Chair Holmam moved and Member Wales seconded to approve Resolution
No. 4804.
MOTION CARRIED UNANIMOUSLY. 3-0.
V. DISCUSSION ITEMS
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A. Utility Rate Study Update (Coleman & Dowdy)
Financial Planning Manager Chaw reviewed the resuks of the City's water, sewer
and stormwater utility rate study update. The update identifies the annual rate
revenue requirements needed to fund operating, capital, and debt service
coverage needs for each year from 2012 to 2017, based on the estimated
revenues over the study period under existing rates, the:identified capital needs;
and the forecasted operating expenses based on the 2012 approved budget..
The rate stucJy update has been reviewed by the PublicWorks Committee. The
time line for the rate study includes implementation of new rates effective June 1;
2012.
Mr. Chaw reviewed construction needs for each u6lity, based on the Capital
Facilities Program; the funding plan for each utiliiy's construction needs; utility rate
revenue requirements;and working capital tialance projections.
Based on the rate study, the following increases are proposed for the utiiities:
WATER
2012 2013 2014 2015 2016 2017
Previously approved inorease 6.9% 6.9% 6.9% 0.0% 0.0% 0.0%
Recommended add'I increase 8.0% 3.5% 3.5% 3.5% 3.5% 3.5%
SEWER
Previously approved increase 10.0% 10.0% 10.O�o 0.0% 0.0% 0.0%
Recommended add'I.increase 33.0% 0.0% 0.09'a 0.0% O.O�o O.Oqo
STORMWATER
Previously approved increase 5.49�, 5.4% 5.4�e 0.0% 0.0% 0.0%
Recommerided add'I increase 2.5% 2.5% 2.5�0 2.Sqa 2.S�a 2.5°/<
Mr. Chaw reported that the Pu61ic Works Committee recommended re-evaluating
the 2015, 2016 and 2017`sewer utility revenues.'
Committee members recorrimended reviewing the utilities annually.
Mr. Chaw presented a gomparison of the City's current, approved, and
proposed utility rates, compared to the existing ratesfor the cities of Kent, Tukwila
and Renton. Aubum`swaterrates would be the lowest among all_jurisdictions
compared. Auburn's proposed sewer rates would be higher only to KenYs.
Aubum's stormwater rate§would be the highest among the other jurisdictions.
Mayor Lewis stated that.the cities of Kent, Tukwila, and Renton are also
considering rate increases in the future.
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Mayor Lewis noted that water and sewer rates are driven by usage. In addition to
a siowerthan anticipated growth for thfe utilities, other factors that decreaseil
usage included lower climate temperatures, increased precipitation, contraction
and recession, and conservation by customers.
B. January 2012 Financial Report (Coleman)
Due to meeting time constrairrts, review of the January 2012 Financial Report was
postponed to the April 2, 2012 Committee meeting.
C. GSA Project Planning and Budgeting (Dowdy)
Pubiic Works Directorbowdy explained that the General Services Administration
(GSA) deeded the GSA 815 Builiiing, locatedat 2905 C Street SW, to the City in
2006. The City agreed to implement the separation of access and utility services
for the property from the balance of the GSA campus. While the work was
scheduled to be accomplished by the end of2008, due to financial considerations;
the majority of the work was not completed, and it is not currently budgeted. As
such, GSA has requested the City to commit to a new schedule for the completion
of the work. Staff will be using the rest of thisyear to negotiate with Boeing for the
rail crossing in order to have separate access to the GSA site. Next year's budget
will include design objecfives and costs to sever the utilities. The roadway costs
will be delayed until the ulUmate end user isknown. The Vailey Regional Fire
Authority is the only tenant of the GSA building at this time.
D. Resolution No. 4807 (Heid)
A Resolution of the City Council of the City of Auburn, Washington, revising
the City of Auburn policy for identified city officials to participate in and
maintain mem6ership in professional organizations and in civic, community,
service or governmental organizations, amending Resolution No. 3417
accordingly
Due to meeting time consVaints, discussion of Resolution No. 4807 was
postponed to the April 2, 2012 Committee meeting.
E. Other Discussion
Member Wales requested adding a discussion item related to credit card use by
Councilmembers to theApril'2, 2012 agenda.
VL ADJOURNMENT
There being no further business, the meeting adjoumed at 7:12 p.m.
APP VE the day of April, 2012.
/������
ohn Partridge, Chair Danielle Daskam, City Clerk
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