HomeMy WebLinkAboutCity Council Committees - Operations - 11/01/2011 KENT
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OPERATIONS CeMMITTEE MINUTES
November 1, 2011
,ommittee Members Present: Jamie Perry, Debbie Raplee, Chair, Les Thomas (Absent)
The meeting was called to order by D Raplee at 4:35 p.m.
D. Raplee noted that an Item 5 has been added to the Agenda, which is a comment regarding
the Governor's budget.
1. APPROVAL OF MINUTES DATED OCTOBER 4, 2011.
1. Perry moved to approve the Operations Committee minutes dated October 4, 2011. D.
Raplee seconded the motion, which passed 3-0 (with concurrence from L. Thomas).
2. APPROVAL OF VOUCHERS DATED SEPTEMBER 30, 2011 AND OCTOBER 15, 2011.
J. Perry moved to approve the vouchers dated September 30, 2011 and October 15, 2011,
D. Raplee seconded the motion, which passed 3-0 (with concurrence from L. Thomas).
3. 2011 EXPENDITURES BY DEPARTMENT YTD THRU SEPTEMVER 2011 WITH
REVENUE SOURCES â INFO ONLY.
Finance Director, Bob Nachlinger provided a list of sources of funding For various departments as
had been previously requested. Committee members had no questions.
4. SUMMARY FINANCIAL REPORT AS OF AUGUST 31, 2011 (INFORMATION ONLY).
Finance Director, Bob Nachlinger presented a brief overview of the September 30, 2011 Summary
Financial Report.
General Fund Summary
Based on information available through September, General Fund revenues are estimated to end
about $2,301.403 or 3.8% under budget, while expenditures are projected to end the year about
$2,984,103 or 4.91Io below the budget. This results in a projected ending fund balance of
$2,267,104 or4.3% of the expenditure budget.
Nachlinger noted that some encouraging information is on pages 19 & 20 of the packet, the
Building Permit and Plan Check Fees charts. Building Permits seem to be tracking upward, Plan
Check fees are doing better than they had been, although still not up to budget yet. Recreation
fees (chart on page 21 of packet) which had been down earlier in the year are now headed to come
in at or above budget. J. Perry questioned why for last couple of months Utility taxes have been
way down. Nachlinger explained reason is that we finally got information from utility providers as
to breakout between the city and the annexation area; an additional amount went to the
annexation area. The decline is really over the entire year, due to more funds needed in the
annexation area as opposed to the General Fund of the City. Basically an adjustment; so although
down for those two months, should be back up for October. Page 47 compares actual expenditures
to first nine months to budget. If compare on budget to budget basis, our revenues for the General
Fund are up 4.02%. On page 48 the total expenditure side is actually down 12.52%, Page 46,
which shows years 2008, 2009, and 2010, the results through nine months were a negative fund
balance in the General Fund. This year for the first time ever that number has not been in brackets
all year long. September is typically our low point until we get second half of taxes in October. 3.
Perry questioned if this includes the adjustments, which Nachlinger responded, yes it does.
Operations Committee Minutes
November 1, 2011
Page, 2
S. GOVERNOR'S PROPOSED BUDGET â MAJOR IMPACTS.
Chief Administrative Officer, John Hodgson provided committee members with a handout
Showing a preliminary budget of the Governor's proposed reductions leading up to the
special session. This is a proposal that will be amended after the next state revenue
forecasts come out in two weeks. What was looked at through the 28 page document
was what are the budgets and reductions proposed right now that affect the city of Kent.
The figures are laid out as what would be the impact for 2012 and 2013. The reason for
that is right now the major proposed cuts don't take effect until either July 2012 or May
2012. The first two are liquor profit sharing and liquor excise tax. For the last 70 years
the cities and county have shared revenues from the state in liquor profits and liquor
excise tax. For the city of Kent, that would be about $600k next year. The major one is
the reduction of the annexation sales tax credit that would come back to the city. From
May on, that would be almost $2 million. Looking at that from a half year perspective plus
2 more months for annexation, that would be $2,5 million for 2012; full year would be $4
million. Other undetermined costs right now are the State Crime Lab, city would assume
cost of non-violent crime lab services and the State Police Academy, city would assume
50% cost of training, (up from 25%); $3,000 to $6,000. This is a preliminary proposal
from the Governor. The Association of Washington Cities has a fetter going out to the
Governor tomorrow that will be signed by as many Mayor's as possible. The letter states
concern from cities about liquor tax and annexation, things cities depend on. The letter
also requests a meeting with Governor through AWC. Hope to have a draft of the letter
to Council later tonight. Will be calling on council members to help administration in
preparation of the special session that begins November 28 to call for assistance from our
6 legislators and anyone else outside 47tn and 33r° districts. The Governor's Proposed
Budget-Major Impacts handout is attached.
The meeting was adjourned at 4.50 p,rn. by D. Raplee.
Nancy Clap/
Operadc Committe cretary
Governor's Proposed Budget- Major Impacts
General Furd Annexation Total
Impact Fund Impact Impact
Eliminate liquor profits sharing 7/1/2012 324,575 324,576
Eliminate liquor excise tax snaring 7/1/2012 220,611 220,611
Eliminate annexation sales tax credit 5/1/2012 1,998,925 1,998,925
Tctal 2012 Impact 545,187 1,998,925 2,544,112
Eliminate liquor profits sharing 649,152 649,152
Eliminate liquor excise tax sharing 441,222 441,222
Eliminate annexation safes tax credit 2,998,388 2,998,388
Total 2013 Impact (full year impact) 1,090,374 2,998,388 4,088,762
Undetermined Impact:
State Crime Lab -City assumes cost of non-violent crsme lab services
State Police Academy- City assumes 50% of cost of training up from 25%-$3,000 tâ $6,000