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Kent City Council Special Meeting Minutes
September 29, 2015
The special meeting of the Kent City Council was called to order at 5:07 p.m. by
Council President Ralph.
Councilmembers present: Berrios, Boyce, Fincher, Ralph, and Thomas.
OPENING REMARKS - Council President Ralph reviewed the schedule.
OTHER BUSINESS
A. Mayor Cooke's 2016 Mid-Biennium Budget Adjustment Presentation. -
Mayor Cooke presented her 2016 Mid-Biennium Budget Adjustment and communicated
what has transpired with the 2015-2016 budget. She pointed out that she submitted a
balanced budget to the Council with recommendations to raise Business & Occupation
taxes, to change the $250,000 exemption to a $150,000 threshold and for the Council
to enact a transportation benefit district (TBD), with a $20 motor vehicle sales tax.
However, the Council chose to adopt a different revenue source by way of a solid
waste utility tax for residential street maintenance. She explained that the resulting
2015-2016 budget was adopted with a $2.16 million funding gap. However, she
pointed out that the City's general fund savings since then has been $1.5 million. She
added that the City was able to take care of its internal unstructured debt and the
City's credit rating was upgraded by both Standard and Poor's and Moody's credit
rating. She noted that her proposed mid-biennium budget adjustment doesn't feature
a TBD, or an increased B&O, but utilizes banked property tax capacity. She also noted
that this adds $42,000 for the City's Public Defender contract, $80,000 to the
Economic and Community Development Code Enforcement Code Abatement Program,
and $70,000 to do an employee classification study. She stated that after these
allocations $5 million would still remain in the banked property tax capacity. She noted
that the results of the McCreary decision may cause some issues with the state shared
sales tax (SST), and renewing the expiring employment contracts will affect the
budget. She highlighted capital projects to include the Meeker Street project, fiber
optics and other various street improvements to assist the pedestrians in the area.
She discussed the transportation improvements, noting that $1 million will be used to
replace the dock at Lake Meridian. She noted that $2.3 million will be added for the
public works asset management system, a quieter zone study, the "Meet Me on
Meeker Street" project, improvements to the Naden property, $600,000 for fiber
conduit on Central Avenue, and $1.2 million for pedestrian improvements on 132nd
Avenue South. In 2012, she highlighted $1.2 million from the Capital Improvement
Fund was to be used for information technology, capital projects, and street capital
projects. However, the funds were used to bring the Capital Improvement Fund out of
a negative balance and it is now balanced. Therefore, this budget includes $2 million of
the internal utility funds to be used for these previously mentioned projects, which will
require a policy revision by the Council. The proposed budget also includes $500,000
to be used out of the Capital Improvement Fund for Economic and Community
Development for their placemaking efforts on Meeker Street and the other $500,000 to
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Kent City Council Special Meeting Minutes
be utilized for the Morrill Meadows/YMCA expansion project. She noted that the B&O
tax has generated $4.7 million and the revision to the B&O means that there will be
another $1.0 million available for use. She pointed out that there has been zero dollars
applied to the City's parks and trails system. However, she noted that the 2016
proposed budget does not address the City structural imbalance, and the 2017-2018
biennium budget will be driven by the work of the Financial Sustainability Task Force.
The mid-biennium budget is balanced with reserve funds intact and a small start to
begin rebuilding the City's capital funds.
ADJOURNMENT
The meeting adjourned at 5:27 p.m.
,
Ronald F. Mo e, MMC`
City Clerk
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Kent City Council Workshop Minutes
September 29, 2015
The workshop meeting was called to order at 5:30 p.m. by Council President Ralph.
Councilmembers present: Ralph, Berrios, Boyce, Fincher and Thomas.
Overview of Proposed Budget Adjustments — Council President Ralph introduced
Finance Director Aaron BeMiller and he communicated the mid-biennium budget
schedule. BeMiller discussed the format and noted that the question and answer
sheets would be utilized as it was last year. He highlighted General Fund balance and
reviewed the specific baseline adjustments to the 2016 Adopted Budget. BeMiller
discussed the Mayor approved General Fund adjustments. He also reviewed the
property tax budget.
Councilmember Thomas verified the specific assumed revenue numbers and levy
information with BeMiller. He also inquired about the King County property tax
assessment sheets and BeMiller confirmed that the City hasn't received them just yet.
BeMiller continued and highlighted the 2016 Capital Additions as presented by Mayor
Cooke. He reviewed the returned street operating monies, 2008 bond proceeds
reallocated to parks, parks use of REET2 fund balance, and CIP funds available through
the internal utility tax.
Matheson replied to Councilmember Thomas concerning "Meet me on Meeker" and
noted that incentivizing the staff to work together on this would require the City to
have the funding available to have it drive what the City wants to see at the location.
Matheson confirmed that the funding for the website content management system
involves a brand new website and a mobile application. It also includes the opportunity
to enhance City communications with the public. He also noted the document
management system and what the improvements would be.
BeMiller continued and highlighted the FTE additions and that the positions moved in
the General Fund have been moved in order to lower the penalty the City receives
from the Cadillac Tax in 2018. He explained the Cadillac Tax and highlighted the
overall 2016 Mid-Biennium Expenditures by Fund.
BeMiller confirmed for Councilmember Boyce that the only impact to taxpayers on an
annual basis would be $20 if your house has an assessed value of $300,000.
Councilmember Thomas stated that this budget adjustment is a major change to the
original budget and is concerned.
Council President Ralph noted that when the Council passed the budget there weren't
any funds available. She noted that the landscape has changed since that ordinance
passed and now the need is in the City's parks and trail system.
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Kent City Council Workshop Meeting Minutes
Ballot Measure Fact Sheet — Council President Ralph communicated the agencies
that are in favor of and opposed to Best Starts for Kids.
City Attorney Tom Brubaker summarized the program and noted that Best Start for
Kids is a property tax levy that levies $0.14 per $1,000 assessed value. He explained
how the funds would be allocated under the program.
Brubaker discussed Initiative 1366 and noted that it reduces sales tax by one percent
(from 6.5 to 5.5 percent) unless the legislature refers a vote on a constitutional
amendment requiring two-thirds legislature approval or voter approval to raise taxes,
and majority approval for fee increases.
Brubaker communicated that if the Council wants to bring forth a resolution, the item
must be presented to the Council at a future agenda.
Matheson replied that the impact of Initiative 1366 doesn't harm cities ability to
impose sales tax. However, virtually all funding from legislature would be at significant
risk if this passes. He noted that one-eighth of the City's funding would be affected,
approximately $10 million.
Councilmember Thomas communicated that he doesn't want the City staff to prepare a
draft resolution for the Council concerning these initiatives.
Council President Ralph communicated that it would be timely to address this prior to
the ballots coming out, but the Council doesn't have to take any action.
Councilmember Boyce and Councilmember Fincher communicated that they favor the
Best Start for Kids levy and haven't decided on Initiative 1366.
Councilmember Thomas noted that there is one meeting left for the Council to support
or not support these.
Councilmember Berrios stated that he is in favor of having a proposed resolution
brought to the next Council meeting for Best Starts for Kids levy.
Councilmember Fincher moved to generate a resolution for the October 6
Council meeting in favor of the Best Start for Kids levy, seconded by
Councilmember Boyce. Motion carried 5-0.
Council consensus was to not bring a resolution in favor of Initiative 1366 at the
October 6 Council meeting.
Meeting adjourned at 6:23 pm.
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.R Ronald F. M Pdre, MKC
City Clerk A
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