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Home My WebLink About10-15-2012 cI _Tror_ =---�*_,� Finance Committee October 15, 2012 - 5 30 PM N Annex Conference Room 1 WASHINGTON MINUTES I CALL TO ORDER A. Roll Call Vice Chair John Holman and Member Largo Wales were present. Chair John Partridge was excused City officials and staff members present included Mayor Peter B Lewis, Deputy Mayor Nancy Backus, Finance Director Shelley Coleman, City Attorney Daniel B Heid, Police Chief Bob Lee, Public Works Director Dennis Dowdy, Planning and Development Director Kevin Snyder, Parks, Arts and Recreation Director Daryl Faber and Deputy City Clerk Shawn Campbell. Also present was Scot Pondelick and Chris Kealy B Announcements There was no announcement. C Agenda Modifications There was no agenda modification. II CONSENT AGENDA A. Minutes of the October 1 , 2012 regular meeting Member Wales moved and Vice Chair Holman seconded to approve the October 1, 2012 minutes. MOTION CARRIED UNANIMOUSLY 2-0 B Claims Vouchers (Coleman) Claims check numbers 417415 through 417777 in the amount $5,830,106 01 and dated October 15, 2012. Committee members reviewed the claims and payroll vouchers and briefly discussed claims vouchers 427424, 417475 , 417524 and 417417 Vice Chair Holman stated he is concerned about open purchase orders. He asked for the status on issuing state procurement cards. Page 1 of 5 Director Coleman said the Finance Department is testing the system now and developing policies and procedures. There are weekly meetings to discuss implementation. Member Wales moved and Vice Chair Holman seconded to approve and forward claims and payroll vouchers to the full Council for approval. MOTION CARRIED UNANIMOUSLY 2-0 C Payroll Vouchers (Coleman) Payroll check numbers 533270 through 533310 in the amount of $822,254 64 and electronic deposit transmissions in the amount of $1 ,216,582.30 for a grand total of $2,038,836 94 for the period September 13, 2012 to September 26, 2012. See claims vouchers above for approval of payroll vouchers. D Call for Public Hearing 2013-2014 Preliminary Biennial Budget (Coleman) City Council to set the date for a public hearing on November 19, 2012 to receive public comments, proposals and suggestions on the 2013- 2014 Preliminary Biennial Budget. Member Wales moved and Vice Chair Holman seconded to approve and forward the call for Public Hearing on the 2013-2014 Preliminary Biennial Budget to full Council. MOTION CARRIED UNANIMOUSLY 2-0 III DISCUSSION ITEMS A. Ordinance No. 6427 (Coleman) An Ordinance of the City Council of the City of Auburn, Washington, amending Section 3 80 060 of the Auburn City Code relating to the tax on social card games Director Coleman stated the Ordinance is regarding the tax assessed on card rooms in the City The Ordinance would authorize a reduction in the amount of gambling taxes applicable from twelve percent down to four percent. The General Fund budget would need to be adjusted down to reflect the reduced revenue The Iron Horse Casino has requested an additional promissory note for the difference between the four percent and the twelve percent tax rate. Member Wales asked if the balloon payment due in 2014 was a part of the budget. Director Coleman stated the balloon payment is not currently in the proposed budget but the expected tax revenue is Page 2 of 5 at twelve percent. Mr Kealy, Managing Partner of Iron Horse Casino, stated the Iron House Casino has been in the community for twelve years. The reduction in gambling tax from twelve percent to four percent saved the business. He is requesting an extension of the four percent gambling tax. The Casino is working on the details to repay the lien owed to the City He proposed a second lien with personal indemnifications giving the priority lien position to the City Vice Chair Holman stated the number of jobs provided to the community is important. Mr Kealy said the Iron Horse employees 92 full time and 55 part time people. Member Wales wants to support the people the casino employees. The City must protect the $380,000 loan Mayor Lewis stated the City must have the numbers back soon. The next opportunity to bring this item back to the full Council is the first Council meeting in November Vice Chair Holman said he wants the company to succeed It is important to recognize the fiduciary responsibility to the City Member Wales said the City is ready to make a decision once all the numbers are available Director Coleman said the City does have the note ready for the next Finance Committee meeting The City is waiting on the one item, and she will bring this forward for action at the next Finance Committee meeting B August 2012 Financial Report (Coleman) Director Coleman stated the City is ahead of expected budget regarding revenue and behind in expenditures. This shows the departments are being conservative in spending Development and permit revenues are above projections resulting in sales tax and property taxes increasing in the future The City has been collecting the utility taxes at the new rate for two months. Member Wales confirmed the cemetery is expected to break even in the operations portion of the budget with the increased plot fees. Vice Chair Holman asked if Director Coleman had additional concerns for any of the enterprise funds Director Coleman stated she is watching the airport closely due to the loss of the flight school. Member Wales asked how the Auburn School District was able to pay the permit fees for the High School when the measure has not yet been approved by the voters. Director Snyder stated the School District paid the fees in advance. The permits are valid for six months but can be extended Page 3 of 5 C Cemetery Financial Review (Coleman) Vice Chair Holman stated he requested a presentation be given to the Finance Committee regarding the Cemetery Director Coleman stated the administration will be coming forward with additional information regarding the cemetery shortly, but due to the nature of the information it will have to be provided during an executive session. Director Coleman provided the Committee with graphs showing the number of interments and inurnments, cemetery lot sales and end of year capital from 2002 through projected totals for 2014 and a graph with the total number of full time employees at the cemetery Lot sales have not met budgeted amounts since 2008 The full time vacant position at the cemetery has been removed from the proposed budget for 2013-2014 Director Faber stated the City is prepared for the trend showing a greater need for inurnment space Member Wales asked for the average full time employee cost at the cemetery Director Coleman stated the average cost is approximately $85,000 per year D Resolution No 4865 (Lee) A Resolution of the City Council of the City of Auburn, Washington, authorizing the Mayor and City Clerk to enter into Interlocal Agreements with Government Agencies for the Valley Special Weapons and Tactics (VSWAT) Team to provide VSWAT services on an "as needed" basis Police Chief Lee stated on occasion the Valley Special Weapons and Tactical Team is requested to respond to jurisdictions that are not a part of the multi-jurisdictional team. The attached agreement is to provide standards with providing services to jurisdictions who are not members E. Resolution No 4867 (Snyder) 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 Petdata, Inc. for animal licensing services Director Snyder said the proposed agreement for animal licensing services is with PetData. There will be two additional actions that will be required before the end of the year This agreement would allow the City the opportunity to prepare for animal licensing in conjunction with Auburn Valley Humane Society Member Wales commended Director Snyder on the quality of research provided to Council. Director Snyder stated PetData will need three month to set up the Page 4 of 5 licensing system. The licensing fees have not been set. The City is working with the Auburn Valley Humane Society to establish pet licensing fees for 2013 F Resolution No 4869 (Dowdy) 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 Brandon P and Trena L. Wrubleski for purchase of property from Mr and Mrs. Wrubleski in lieu of condemnation Director Dowdy explained that during a current project it was discovered the lift station encroaches on a private property This agreement purchases the additional property IV ADJOURNMENT There being no further business to come before the Committee, the meeting adjourned at 6 12 p.m. APPROVED the 5th day of November, 2012. ohn Holman, Vice Chair Shawn Campbell, Deputy City Clerk Page 5 of 5