HomeMy WebLinkAbout06-22-2016 Minutes r * Special City Council Meeting
e�n oF.-.-�' . .�_
�.j � June 22, 2016 - 2:00 PM
�" Auburn City Hall
wn3t�i�vcTcrN MINUTES
I. CALL TO ORDER
Mayor Nancy Backus called the special meeting to order at 2:06 p.m. in the
Council Chambers located at Auburn City Hall, 25 West Main Street in
Auburn. The purpose of the meeting was to discuss the 2017-2018 Biennial
Budget.
II. DISCUSSION ITEMS
A. 2017-2018 BudgetProcess
Director Coleman reviewed the meeting agenda and explained today's
meeting is the first of several budget meetings relating to the 2017-2018
Biennial Budget.
Director Coleman reviewed the budget calendar and provided an
overview of the funds and fund fypes. She reviewed typical department
and capital budgets and spoke regarding future budget challenges.
Director Coleman reported Mayor Backus and the department directors
will be meeting the week of July 18th to finalize department budgets.
The next Council budget meeting will take place in August.
Director Coleman stated some of the advantages to adopting a biennial
budget versus an ann.ual budget include. saves Council and staff time,
provides for a longer financial planning perspective, and allows policy
makers a better view or longer vision. Biennial budgets are created in
odd numbered years and appropriations are for two years or two one year
budgets (Auburn uses two one-year budgets).
Director Coleman reviewed the Ciry's fund structure. The City's budget
includes a t6tal of 33 funds, including Governmental Funds (General
Fund, special revenue, debt service and capital project funds), Proprietary
Funds (enterprise and internal service funds), and Fiduciary and
permanent funds.
In the last year, the City created seven new capital sub-funds to
accumulate resources for capital projects or capital acquisitions. The
sub-funds are in the water, sewer, storm, cemetery, airport, equipment
rental and innovation and technology funds. Funds available for these
uses will be transparent and not co-mingled with funds or reserves
reqUired for operations, debt reserves and debt management. Project
managers will know precisely how much funding has been accumulated
for projects and financing needs will be apparent.
Page 1 of 3
Director Coleman then reviewed a sample draft Human Resources and
Risk Management Department budget along with department mission
statement, department overview, accomplishments and objectives,
performance measures, department staffing levels, preliminary
department budget by expenditure category, and the department budget
detail report.
Director Coleman then reviewed a sample Capital Improvement Fund
(Fund 328) budget, including budget detail reports, lead schedules and
project detail sheets.
Director Coleman also reviewed a draft Proprietary Fund for Equipment
Rental. Director Coleman reminded that proprietary funds are both
operational and capital in nature. She provided a brief overview of the
fund's mission statement, fund overview, accomplishments and
objectives, performance measures, and budget detail reports for both
operational and capital corriponents.
Director Coleman discussed some of the budget challenges anticipated
for upcoming years. Director Coleman stated the sales tax growth is
slowing. This year the City experienced a two percent increase over the
previous year For the last three years, the City has averaged a nine
percent increase in sales tax growth. Sales tax on new construction is
dedicated to the local street p�eservation program.
Director Coleman stated the State will be looking for funds to meet the
funding obligations under the McCleary decision during the 2017-2019
biennium. She cautioned that funds normally shared with cities could be
in jeopardy
Director Coleman reminded that the annexation sales tax credit will
sunset on June 30, 2018. The annexation sales tax credit averages $1 7
million in revenue.
Director Coleman also stated that the demand for services is increasing
faster and is greater that budget growth, particularly in public safety,
transportation, and human services—homelessness and mental health.
Director Coleman and Gouncil discussed the underfunding of the PERS 1
retirement system. Director Coleman stated the employee contributes six
percent while the employe� pays 12.67 percent to the public employees
retirement system (PERS 1).
In response to a question from Councilmember Wagner, Direcfor
Coleman stated that the 2017-2018 program improvements will be
included with the department budget.
Director Coleman pointed out the appendix section of the Council packet,
which includes property tax statistics, the reserve policy, the budget
calendar and a list of funcis.
Page 2 of 3
In response to a question from Councilmember Holman, Director
Coleman stated the sales tax on construction this year is anticipated to be
approximately $2 million.
Councilmembers and Director Coleman briefly discussed fund balances
and working capital guidelines.
III. ADJOURNMENT
There being no further discussion, the meeting adjourned at 3�04 p.m.
APPROVED THIS Io � DAY OF � , 2016
D� r V�o,trl��,is �c �e,�� _
NA CY B CI'�S, N�A R ielle Daskam, City Clerk
Page 3 of 3