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HomeMy WebLinkAboutCity Council Committees - Operations - 07/21/1992 -- OPERA.TANS COMMITTEE 14INUTES City Clerk July 21, 1992 COMMITTEE MEMBERS PRESENT: Christi Houser Leona Orr STAFF PRESENT: Tom Brubaker Ken Chatwin Ed Chow Laurie Evezich Kevin Garling Roger Lubovich Tony McCarthy Alan McIalwain May Miller Kelli O'Donnell Don Wickstrom John Willits MEMBERS OF THE PUBLIC: Bill Doolittle Jean Parietti The meeting was called to order at 2:05 p.m. by Chairperson Houser. Approval of Vouchers All claims for the period ending July 15, 1992,in the amount of$1,833,021.73 were approved for payment. Drinking Driver Task Force Contribution Summary Administrative Manager McIalwain reviewed with the Committee the quarterly contributions of the Drinking Driver Task Force. Kent Springs Transmission Project Budget Adjustment Public Works Director Wickstrom informed the Committee that the subject bids were scheduled to be opened July 29th. The project has been delayed by two years during which time the Army Corp of Engineers was reviewing the permit application. The permit has been received with some modifications which include realignment, some deletion and construction of new wetlands. The combination of these factors amount to an additional cost of $350,000. Wickstrom requested authorization to transfer this amount from the Unencumbered Water Fund. He noted that he would like to award the contract at the August 4th meeting so that work could start this year. Committeemember Orr moved to authorize transfer of the $350,000 from the Unencumbered Water Fund to the Project Fund. Houser seconded the motion which passed with a vote of 2-0. Added Item - Resolution to Approve Amendments to the Interlocal Mreement Creating the Washington Cities Insurance Authority (WCIA) Risk Analyst Chatwin informed the Committee that the WCIA has requested the adoption of a revision to the existing interlocal agreement to include two changes. He added that the WCIA was originally formed by 9 cities and currently includes 70 cities. The first is to allow future interlocal changes by a two-thirds majority rather than a unanimous vote. The second is to change the language in Article 13 from premium to assessment and to make assessments at any time as opposed to retroactive. He continued that the City 1 '01 -_ ,� OPERAANS COMMITTEE MINUT*, CONT. z.. July 21, 1992 It Attorney has drafted a resolution to accomplish these changes and if approved by Committee will be taken to the full Council. Orr put forth a motion to recommend adoption of the proposed resolution to the City Council. Chow recommended having the item reviewed by Jim White and if he is in favor of the resolution it could be on the Consent Calendar of the first Council meeting in August. Orr so amended her motion which was seconded by Houser and passed with a vote of 2-0. Review of June Financial Report " Finance Director McCarthy distributed the June Financial Report to review with the Committee. He noted that he will summarize the report at the Workshop tonight with the full Council but wished to give the Operations Committee a detailed review. McCarthy began with the Cash and Investment Schedule noting that the General Fund balance has decreased about$500,000 in every six month interval since December of 1990. In addition,the Golf fund shows$(14,133.29) due to a transfer in May of$506,000 from the CIP but was approaching a zero balance. After reviewing the Debt Service Funds, McCarthy detailed the Capital Project Funds. The CIP currently has a balance of$1.1 million but a transfer of$806,000 to the General Fund has been previously approved. The CIP will be generating funds from the tax base during the remainder of the year. In the Street Utility Fund the largest project is the 272nd Corridor. The Parks Fund includes the East Hill Parks; Public Safety Projects includes the bond projects that have not been closed-out yet. The Library Fund has a remaining balance of$280,000 due to interest accumulation which may be used for a left turn pocket on Smith Street. During further review, McCarthy stated that there are various allocations that have not been used such as sidewalks, and the daycare study that will be discussed in more detail at the Council Workshop. Exhibit B outlines the investment statistics of the City. Diversity has been considered when making investments by using different institutions, types of investments and length of maturity. The City's total portfolio includes $9 million in overnight investments due to the Senior Housing Project. The State Pool is currently the best rate of return for short term investments at 3.973%. Because of the low interest rates, the forecast for interest income is lower. Exhibit C summarizes the Accounts Receivable Aging Schedule. Foreclosure is in process on eleven parcels that have been delinquent two years. In addition, the General Fund includes the King County Emergency Medical Levy billed but still owing which should collect $204,000. McCarthy stated that at the next Operations Committee he would like to bring forward a proposal from another collection agency to work on collecting traffic violations. The collection agency currently working some accounts charges $8.45 per account with the new proposal charging the delinquent accounts instead of the City. Exhibit D shows the outstanding long term debt. It also shows the councilmanic capacity which reflects no new bonds since 1989. Exhibit E shows revenue for June is 1.6% above budget but the figures were down for May and April and are slightly worse than'last year. The forecast expected some rebound. Expenditures are at 97.9% with the continued freeze and additional vacancies. Property Taxes are overcollecting due to revised figures after the budget was passed. Taxes are expected to be over budget $148,000. Sales and Use Tax includes July and is down from projections. Contact Kelli O'Donnell at 859-2116 for a copy of the June Financial Report. 2 OPERA*NS COMMITTEE MIND A, CONT. July 21, 1992 Utility Taxes are shown as down with the latest figures being from April and not due again until July. Puget Power has paid their portion which was lower than this time last year. Building Permits have been up and down all year and it is forecast that using conservative numbers we will over collect. Recreation fees are still up 6.7% and are levelling out since March and April. Fines and Forfeitures are up 13.3%. Water Revenue is at 95.6% of predicted collection, possibly due to voluntary conservation. Sewer and Drainage Revenue is also down but the increase of rates will start the end of the month. The Golf Complex Revenue is continuing to stay up but Golf Complex Expenditures are 18% over the forecast. Exhibit F summarizes the out of balance condition. The revenue has not grown as quickly as the expenses. McCarthy explained that there has been some concern over the changing forecast which can't be helped. An analysis has been prepared to show the difference between a pessimistic, conservative, realistic or optimistic forecast to illustrate the variation possible. Exhibit G summarizes the Street Fund which is dedicated to corridor improvements and setting up grant matching funds. Registration Fees have been set aside for streets. Exhibit H outlines the Capital Improvement Fund. When the CIP was reviewed last year the municipal court and emergency lighting were highly rated but the plan was not adopted. Exhibit I reflects the Criminal Justice Fund which has been used by the Police Department as well as domestic violence programs through Housing and Community Services. These funds also have some restrictions for new programs as opposed to shifting projects from other budgets. The Association of Washington Cities is conducting a survey on these issues as well as the State Auditor. Exhibit J details the Internal Services Fund which includes Central Services, Information Services and Equipment Rental. Equipment Rental is being analyzed due to overcollection for reducing 1993 rates by approximately 15%. Chairperson Houser asked if there were any questions. Bill Doolittle questioned Exhibit H, which shows the $50,000 for the Performing Arts Center matching funds with King County. He stated that at a Parks Committee meeting the Task Force had asked to use the funds to hire a consultant instead of the matching and it was Doolittle's understanding that the Operations Committee would make a determination. Houser responded that she had agreed to hear a presentation but it has not yet been brought to the Committee for review. Fire Lieutenant Willits asked if the municipal court has been funded. McCarthy replied that it had been taken off the list since the plan was not adopted but could be added back if there was additional money in the balance. Doolittle expressed his concern that the frozen positions not be a factor in the 1993 budget and asked when they would disappear. Houser responded that she did not have an answer but it could be part of budget negotiations. Chairperson Houser adjourned the meeting at 2:55 p.m. 3