HomeMy WebLinkAbout01-22-2013 CITY Of �� Finance Committee
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January 22, 2013 - 5.30 PM
OR1'7: -' p Annex Conference Room 1
�--+� WASHINGTON MINUTES
I CALL TO ORDER
Chair John Partridge called the meeting to order at 5 30 p.m in Annex
Conference Room 1 located on the second floor of the City Hall Annex at
One East Main Street in Auburn
A. Roll Call
Chair John Partridge, Vice Chair Largo Wales, and Member John
Holman were present.
City officials and staff members present included: Mayor Peter B
Lewis, Public Works Director Dennis Dowdy, Traffic Engineer Pablo
Para, Assistant City Engineer Ingrid Gaub, Economic Development
Manager Doug Lein, City Attorney Daniel B. Heid, and Deputy City
Clerk Shawn Campbell. Also present was Scot Pondelick.
B. Announcements
There was no announcement.
C Agenda Modifications
An updated version of Resolution 4898 was provided to the Committee
prior to the meeting.
II CONSENT AGENDA
A. January 7, 2013 meeting minutes
Member Holman moved and Vice Chair Wales seconded to approve
the January 7, 2013 minutes.
MOTION CARRIED UNANIMOUSLY 3-0
B 2012 Claims Vouchers (Coleman)
2012 claims check numbers 419623 through 419627 and check
numbers 419631 through 419897 in the amount of $3,100,269 50 and
dated January 22, 2013
Committee members reviewed the claims and payroll vouchers and
briefly discussed claims vouchers 419843, 419851 , 419863, and 2013
voucher419976
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Vice Chair Wales moved and Member Holman seconded to approve
the 2012 and 2013 claims vouchers and payroll vouchers as
presented
MOTION CARRIED UNANIMOUSLY 3-0
C 2013 Claims Vouchers (Coleman)
2013 claims check numbers 419628 through 419630 and check
numbers 419898 through 419990 in the amount of $2,839,403 97 and
dated January 22, 2013
Please see 2012 claims vouchers above for action on 2013 claims
vouchers.
D Payroll Vouchers (Coleman)
Payroll check numbers 533533 through 533571 in the amount of
$846,539 14 and electronic deposit transmissions in the amount of
$1 ,164,477 43 for a grand total of $2,011,016 57
See 2012 claims vouchers above for approval of payroll vouchers.
III DISCUSSION ITEMS
A. November 2012 Financial Report (Coleman)
Director Coleman stated the City is on target with budget projections
for both income and expenses. The building and planning fees are out
pacing projections, sales tax will hold through December She noted
that through August sales tax was down 2 4% over the prior year, the
remainder of the 2012 sales tax increased 1 14% over 2011
Director Coleman said the expenses are tracking according to
budget. She noted the report is missing the November and
December SCORE invoices. The City will end the year with
approximately $3,600,000 in actual expenses for SCORE. During the
2011 midterm correction the SCORE budget was increased by
$700,000 to allow a contribution by member cities if required. Those
funds will be rolled into the next budget. The City is going to use funds
from a capital bond to pay down a portion of the principal on the
SCORE facility
Chair Partridge stated approximately half of the increase in revenue is
from building permits and development services.
Vice Chair Wales asked if the City is developing a plan for the Golf
Course similar to the plans developed for SCORE and the
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Cemetery Mayor Lewis stated the department is in the process of
developing a plan for the Golf Course and will present it to the Council
in the near future. Director Coleman noted there was an error in the
report for rounds in 2012. The number of rounds is down in 2012 but
revenue was up due to an increase of green fees.
Chair Partridge thanked Director Coleman for the addition of the new
graphs. He asked if the funds transferred in to the Cemetery Fund will
show as a positive number Director Coleman stated the funds
transferred in March of 2012 were an operating transfer so the
Cemetery Fund would not be negative The other transfer was for a
Capital Project. Mayor Lewis stated the purpose of the fund transfer
was to stabilize the Cemetery fund and it is not a loan Chair
Partridge asked if the City will need to transfer additional funds to the
Cemetery in the future Director Coleman stated the 2013-2014 budget
has $320,000 available to transfer into the Cemetery fund if needed.
Vice Chair Wales stated the plan of the Finance Committee is to
continue promoting growth and looking at the best options to be
fiscally responsible Member Holman asked for clarification on the
Storm and Sewer Enterprise Funds. Director Coleman stated the cost
to operate the system and the depreciation and amortization comprise
the operating loss. With the rate increase the City is expecting the
Sewer Fund to become positive by 2014
Mayor Lewis noted at the end of 2014 the City reserves will be at the
State minimum of 8% Chair Partridge stated when the 2012-
2013 budget was adopted the City expected to use $10,500,000 of
reserve funds instead the City ended with revenue exceeding
expenses by $1,500,000 Mayor Lewis stated the City uses a very
conservative model for revenue planning He also noted the City
historically has unplanned expenses during each budget cycle and
the new 2013-2014 budget is designed to draw reserves down to the
8% minimum, level even with normal planning
B 2013 Utility System Revenue Bond (Coleman)
Director Coleman shared the staff working schedule for the 2013 Utility
Revenue Bond. The proposal will be brought to committee
meetings on February 4, 2013 and return back for full Council
consideration on February 19, 2013 The City will sell bonds starting
February 28, 2013 and funds will be available two weeks later A
portion of the revenue is required to fund a reserve account. A list of
proposed projects with expenses was provided to the Committee. The
Water and Stormwater funds are the only funds that will have bond
funded capital projects. Vice Chair Wales asked why the railroad
crossing requires City funded utility improvements. Director Dowdy
stated the City is required to install the conduit to protect the City lines
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and utilities.
C Ordinance No 6446 (Coleman)
An Ordinance of the City Council of the City of Auburn, Washington,
establishing the local sales and use tax rate for local revitalization
financing for 2012
Director Coleman stated Ordinance No 6446 authorizes a credit
against the revitalization area. The funds have been promised but
require the City to pass an ordinance annually to request them.
Member Holman asked if the State has the authority
to withhold funds from the City Attorney Heid said the State
Constitution prohibits the Legislature from impacting bonded or
contracted indemnities, and the State is not able to withhold this type
of revenue
D Resolution No 4894 (Coleman)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the City of Auburn to impose a sales and use tax as
authorized by RCW 82.14 415 as a credit against state sales and use
tax, relating to annexations
Director Coleman stated there is no bonded debt associated with the
funds. The funds are for operation and maintenance of the Lea Hill
area. The City cannot utilize the funds for capital. The City must also
provide a report stating the revenue and expenses for the prior year
The funds are not protected by State Constitution
Vice Chair Wales clarified these funds are to mitigate a portion of
the expenses the City incurs when annexing an area. Mayor Lewis
stated the State is considering not providing this type of funds to
jurisdictions. Director Coleman stated if the revenue for the area
exceeds expenses the City will not be eligible for the funds.
E. Resolution No. 4898 (Dowdy)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor and City Clerk to execute an Interlocal
Agreement with King County for the purpose of providing road
services
Traffic Engineer Para stated the City has entered into similar interlocal
agreements with King County for several years. The agreement allows
for the City to request each task individually and the agreement
will renew annually The 2013 budget has allocated $200,000 for
pavement marking, $5,000 bridge inspections, $50,000 bridge
maintenance and repairs, and the Storm Utility maintenance. The City
has attempted to contract out the storm pond maintenance by public
bid, but received no responsive bidders.
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Vice Chair Wales clarified the City has similar agreements with both
King and Pierce County Chair Partridge stated the two county
agreements appear to be complementary
F Resolution No 4899 (Lein)
A Resolution of the City Council of the City of Auburn, Washington,
authorizing the Mayor to execute administrative procedures as needed
on behalf of the City to accept a State grant in the amount of
$12,500 00 from the Department of Commerce to fund administrative
activities within the Urban Center for Innovation Partnerships,
Innovation Partnership Zone (IPZ #15)
Economic Development Manager Lein stated the City has received an
administrative grant from Washington State Department of Commerce
for the Innovation Partnership Zone (IPZ). The grant has no project or
matching fund requirements. The City of Auburn is the only City that is
in an IPZ and only four IPZ's received grants.
IV ADJOURNMENT
There being no further business, the meeting adjourned at 6 32 p.m.
APPROVED this 4th day of February, 2013
6� Q'53'�- -
J hn Partridge, Chair Shawn Campbell, Deputy City Clerk
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