HomeMy WebLinkAbout09-17-2012 cmoF =r�� • Finance Committee
September 17, 2012 - 5:30 PM
Annex Conference Room 1
WASH I NGTON MINUTES
I. CALL TO ORDER
Chair John Partridge called the meeting to order at 5:30 p.m. in Conference Room 1
located on the second floor of the City Hall Annex located at One East Main Street in
Auburn.
A. Roll Call
Chair John Partridge, Vice Chair John Holman and Member Largo Wales were
present. City o�cials and staff members present included: Mayor Peter B.
Lewis, Assistant City Attorney Steve Gross, Public Works Director Dennis
Dowdy, Finance Director Shelley Coleman, and City Clerk Danielle Daskam.
Scot Portdelick was also present.
B. Announcements
There was no announcement.
C. Agenda Modifications
There was no change to the agenda.
II. CONSENT AGENDA
A. Minutes of the September 4, 2012 regular meeting
Vice Chair Holman moved and Member Wales seconded to approve the
September 4, 2012 minutes.
MOTION CARRIED UNANIMOUSLY 3-0
B. Claims Vouchers (Coleman)
Claims check numbers 416686 through 417030 in the amount of$4,864,763.98
and dated September 17, 2012.
Committee members reviewed the claims and payroll vouchers and briefly
discussed claims vouchers 416905, 416725, 416851, 416988 and 416759
There was additional discussion regarding the Cemetery's water bill for
irrigation purposes. Committee members suggested reducing the water usage
at the Cemetery for irrigation purposes.
Member Wales moved and Vice Chair Holman seconded to forward claims and
payroll vouchers to the full Council for approval.
MOTION CARRIED UNANIMOUSLY 3-0
C. Payroll Vouchers (Coleman)
Payroll check numbers 533191 through 533225 in the amount of$855,978.26
electronic deposit transmissions in the amount of$1,217,�98.26 for a grand
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total of$2,073,076.52 for the period covering August 30, 2012 to September
12. 2012.
See claims vouchers above for approval of payroll vouchers.
D Bad Debt Write-Off (Coleman)
City Council approve the write-off of outstanding utility customer accounts and
miscellaneous accounts receivable in the amount of$13,749.87
The Committee reviewed the bad debt write-off at their September 4th
meeting. There was no change to the request to write-off outstanding utility
customer accounts and miscellaneous accounts receivable in the amount of
$'13,749.87
Vice Chair Holman moved and Member Wales seconded to forward the bad
debt write-off to the full Council for approval.
MOTION CARRIED UNANIMOUSLY 3-0
III. RESOLUTIONS
A. Resolution No. 4807 (Heid)
A Resolution of the City Council of the City of Aubum, Washington, revising the
City's policy on membership in professional organizations and in civic, service
and community organizations
Chair Partridge recalled that Resolution No. 4807 was postponed at the August
20, 2012 meeting to tonighYs meeting.
Vice Chair Holman moved and Member Wales seconded to forward Resolution
No. 4807 to the full Council for approval.
Member Wales read the following statement for the record:
"On February, 2002, our City Council approved Resolution 3417 regarding the
City of Auburn policy for public officials membership in professional, local, civic,
community or service organizations. The purpose stated in the Resolution was
that the City recognized that membership in professional organizations by city
leaders and responsible public officials may benefit the City, and therefore, may
be permitted with support from the City The resolution was legally supported
by the State Auditor's Office Bulletin No. 13 that was published in 1995.
I gathered badcground information from Mayor Lewis regarding the intent of
the Resolution, which was reported to be twofold: provide leadership
opportunities and to connect nonresident employees with opportunities to show
their stuff and buy in to our community He went on to say that financial
assistance would help in situations where City Councilmembers have financial
hardship.
This proposed amendment would continue to allow for the City's support of
leadership opportunities for City e.mployees, but would change the scope of the
financial support for just elected officials. Elected officials would gamer support
for regional, state, national organizations where their role is to represent the
City To be clear, not local service organizations.
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The proposed amended Resolution that we are going to be reviewing tonight at
the full Council has been reviewed by Council Operations Committee, Council
Committee of the Whole, and three times by the Finance Committee. In these
discussions, we found that no other cities provided such financial assistance
to their elected officers for their participation in local service organizations such
as Lions, Kiwanis, Optimists, Soroptomis_ts, and Rotary This amended
Resolution gives emphasis to regional, state and national participation,
including such groups as National League of Cities, Association of Washington
Cities, Metropolitan Solid Waste, Regional Access Mobility Partnership,
Puyallup River Watershed Council, Suburban Cities Association, South County
Area Transportation Board, and the Auburn Chamber of Commerce, to name a
few In support of this new leadership emphasis, the City Council enacted for
newly elected and re-elected Councilmembers (Peloza, Wales, Holman, and
Osbome) a reimbursement process to aid their involvement in regional, state
and national levels.
At this time, can we afford to pay for all? We need to have our voice heard, but
at the local service groups? At City expense? My question is, if not
reimbursed, will City Councilmembers quit?
In summary, 1) Yes, the current resolution, and its amendment, is consistent
with the State Audito�'s bulletin; 2) This amendment maintains the original intent
of providing employee leadership and participation opportunities; 3) We're not
talking about a lot of money, but iYs our money, and it could be used for more
pressing City projects; 4) Financial records show only two of our current Council
members have accessed service group reimbursement. Why not use their
campaign funds, which is an approved expenditure with PDC? 5) As leaders,
Councilmembers need to take the high road, as was the case with taking a two
percent pay cut"
Vice Chair Holman read the following statement for the record:
"Seroice clubs play an important role in the social health of Aubum. They
involve their members in the fabric of our community while providing leadership
opportunities. It makes sense to encourage City of Aubum managers and
executives to join Auburn service clubs for two reasons: 1) We cannot require
a City of Aubum employee to live in Auburn, but, to increase employees'
commitment to and involvement in Aubum's social fabric, we can subsidize their
involvement in Auburn service clubs; 2) Leadership is best learned by practical
experience. Service clubs provide excellent opportunity for City of Aubum
managers and executives to gain practical leadership skills. Leadership
expertise thus learned is brought back to benefit the City of Auburn.
These are two great reasons to spend a very small amount of money on City of
Aubum employee leaders.
But as an elected official, I feel uncomfortable using public money to subsidize
my membership in a service club for three reasons: 1) I already live in
Auburn. I must live in Auburn to be eligible for this office. I do not need to be
encouraged to become involved in Aubum. I already am. It is in part, how I got
elected. 2) As an elected official, I am presented with a wealth of leadership
opportunities. While serving as an elected o�cial, one need look no further
than the office you hold for practical leadership opportunities. Both of the
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reasons we subsidize service club dues for Aubum employees are not
applicable to elected officials. Let me be very clear about my third point. The
Washington State Auditor has held that paying service club expenses for city
employee managers and elected officials is a reasonable and lawful
expenditure. I am not offering a contradiction to that opinion. I am merely
adding my personal opinion, which guides my personal action. My third point
and final is an ethical argument. My chance of becoming elected was
enhanced by contacts and friends gained through service club membership.
Now that I am elected, 1 cannot accept, and will not accept, public money for
service club dues because a future opponent would not have the same financial
advantage.
Therefore, I encourage my fellow Councilmembers to vote yes on Resolution
4807 to remove ourselves from the City of Aubum employee benefit. It is the
right thing to do in my opinion:'
MOTION CARRIED 2-1 Chair Partridge voted no.
IV DISCUSSION ITEMS
A. July 2012 Financial Report (Coleman)
Finance Director Coleman presented the July 2012 Financial Report. The
revenue collections of$30.2 million are running slightly ahead of budget-to-date
of$29.3 million due primarily to increased revenues from building permits and
development fees. Finance Director Coleman cau6oned that the budget-to-
date amount is an average of the last three years of revenue collections and
the revenues can be cyclical. Expenses totaled $32.0 million and are below
budget of$34.8 million due primarity to savings as a result of earlier staff
vacancies within the Police Department, but expenditures are ahead of
expenditures in 2011 ($28.3 million) due to,a $2.5 million transfer to the
Cumulative Reserve Fund to support transfers to the Cemetery and Golf
Course Funds and debt service payments.
There was a brief discussion regarding funding for the Cumulative Reserve
Fund. Finance Director Coleman stated that Aubum City Code directs how the
funds can be spent. The Fund can be used for revenue stabilization,
emergencies, or for capital. The Cumulative Reserve is at$7.6 million.
Mayor Lewis and Finance Director Coleman stated that it is the goal to have an
$8 million General Fund ending fund balance at the end of 2014
Chair Partridge commented that the General Fund appears strong with nearly
three time the required fund balance.
Chair Partridge noted an increase in working capital for the Cemetery and Golf
Course. Member Wales expressed concem that with the dry weather for the
past 51 days, the Golf Course reflects 500 less rounds played than the same
time last year Finance Director Coleman commented that competition among
area golf courses and the recession are factors.
There was a brief discussion regarding parking fines and the cost of parking
enforcement.
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Committee members briefly reviewed the investment portfolio for the term
ending July 31, 2012.
Mayor Lewis reported that he conducted a meeting with unaffiliated employees
today regarding the 2013-2014 Budget and the impacts of state legislation and
costs on the upcoming budget. Impacts on the budget include an approximate
$1.3 million increase in PERS (retirement) contributions, a State Supreme
Court decision impacting the budget by $400,000, property tax limited to
$500,000 less than that received in 2013 due to lowering of assessed values, a
reduction in liquor revenues, and flat sales tax revenues. Mayor Lewis stated
that he anticipates expenditures to increase next year by $5 million due to
employee step increases and costs of supplies and materials.
B. Resolution No. 4856 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington, authorizing
the Mayor to accept a federal grant to be administered through the Washington
State Department of Transportation for the Aubum Way South Corridor Safety
Improvements, Muckleshoot Plaza to Dogwood Street SE
Public Works Director Dennis Dowdy stated that the Resolution authorizes the
Mayor to accept a federal grant in the amount of$2.3 million for safety
improvements for the Aubum Way South Carridor, Muckleshoot Plaza to
Dogwood Street SE, Project. There is no local match required for the grant.
V ADJOURNMENT
There being no further business to come before the Committee, the meeting adjoumed
at 6:33 p.m.
APPROVED the 1st day of October, 2012.
� � �
n Partridge, Chair Danielle Daskam, City Clerk
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