HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 08/20/2013 KENT
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Kent City Council Workshop
August 20, 2013
The meeting was called to order at 5:45 p.m. by Council President Dennis Higgins.
Councilmembers present: Thomas, Boyce, Ralph, and Ranniger. Councilmember Perry
was absent. Councilmember Albertson arrived at 5:48 p.m.
Council President Higgins added an item on the Highway 167/State Route 509 project
to the agenda.
Revenue Estimates for 2014 Budget. Finance Director Robert Nachlinger discussed
a document he handed out and discussed adjustments for the 2014 Budget. He
highlighted the phone service taxation and that it would generate some funds for the
City. He added that the annexation sales tax is less than budgeted.
Councilmember Ralph confirmed that the phone sales tax would go into effect on
January 1, 2014.
Nachlinger discussed lower gambling revenues based on the Great American Casino
tax percentage reduction. He reviewed intergovernmental reductions and that the City
no longer qualifies for Criminal Justice high crime funding due to reductions in crime
activity. He noted that the change to the previously adopted budget is almost
$385,000. He continued and discussed the Capital Improvement Fund and the
revenues from sales, utility, property sales, and REET taxes. He also reviewed
miscellaneous revenues and transfers in facilities and the general fund. He highlighted
the sale of the Northwest Corporate Park and its REET revenues.
Council President Higgins verified that after this meeting Nachlinger would take these
numbers and prepare a budget adjustment ordinance for the 2014 calendar year after
the Council reviews and finalizes 2014 expenditures at a future meeting.
Council President Higgins inquired about the City not being eligible for the high crime
funding any longer and Nachlinger replied that the lack of funds will not cause the
City to put any police positions on hold.
Brubaker verified that the REET from the Northwest Corporate Business Park is
$850,000. Nachlinger communicated that this report is through June and the
property's REET wasn't done until July, so those numbers aren't reflected in this
report.
Council President Higgins communicated that the Council went through a lesson last
year and it is better to be conservative and stay in the black.
Brubaker noted that the City has been conservative and that is reflected through
these numbers.
Councilmember Boyce inquired about the reduction in the liquor sales tax revenues
and Nachlinger responded that the legislature retained half of those revenues.
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Kent City Council Workshop Minutes
August 20, 2013
Brubaker pointed out that the City will be at 10.2% of its reserve. He noted that the
contingency fund for unanticipated costs will be at $500,000, and there will be $1.15
million in the strategic opportunities fund.
Council President Higgins communicated that there weren't any changes in the B&O
tax and Nachlinger confirmed that there won't be any proposed changes. He noted
that the B&O returns are at $1.5 million, which have increased. Brubaker
communicated that the projected annual revenue estimate is $5 million, but that for
this first year of implementation, only $3.3 million was budgeted.
Councilmember Boyce verified that there is a 5% late fee for late filings which has a
maximum penalty of 25% depending on when filing takes place,
Councilmember Ralph confirmed that the late fees go into effect in the second
quarter.
Councilmember Albertson verified with Nachlinger that utility tax revenues fluctuate
with changing weather patterns. He added that rate increases are expected this
winter which will increase the revenues.
Discussion continued about the utility tax item and Brubaker noted that the utility tax
amount is conservative if based on the previous year.
Councilmember Ranniger communicated that an estimated 2.47% increase feels high.
Council President Higgins suggested cutting the 2.47% increase in half to 1.38%. He
noted that makes it a little more conservative.
Brubaker noted that the revenue went up $1.2 million in an unusually warm winter.
He noted that the estimate for this winter is only an increase of $470,000.
Councilmember Ralph confirmed with Nachlinger that Puget Sound Energy is
increasing their rates and telephone rates go up every year. She also confirmed that
the phone line tax is a sales tax.
Brubaker inquired if the $470,000 estimate is conservative enough for the Council.
Councilmember Ralph inquired and confirmed that there was an increase in water,
sewer, and gas rates in 2013.
Councilmember Albertson inquired about the 11.27% amount in fines and forfeitures
and Nachlinger replied that the funds will be derived from school zone cameras.
Council President Higgins, Councilmember Boyce, Councilmember Ralph, and
Brubaker verified that this was the correct estimate to be derived from the traffic
cameras.
Councilmember Thomas discussed the sale of property line item and Nachlinger noted
that it is from the sale of surplus properties within the City and Brubaker specified
which sales were included in the line item.
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Kent City Council Workshop Minutes August 20, 2013
Council President Higgins summarized that the last issue is to determine whether the
estimated percent change to the utility tax from 2013 to 2014 should be kept at
2.47%.
Brubaker reviewed the process again and noted that this will go to the committee and
come back to the Council again.
State Route 167/State Route 509
Councilmember Albertson communicated that State Route 167 and State Route 509
were reviewed at the last legislative session. She said the key stakeholders are still
lobbying the senators and the governor concerning this item. She added that she is
on the State Route 509 executive committee and they had a meeting with the
Washington State Department of Transportation (WSDOT). She stated that the State
Route 167 Coalition has dedicated funding streams and is a better coordinated effort.
She noted that there has been discussion concerning combining both groups and
fundraising. She asked the Council for funding consideration. She noted that the
Senators are holding listening sessions for the public to get involved and if movement
doesn't happen this item won't be resurrected in the legislature.
Council President Higgins communicated that if the coalition asks for funds he would
bring it to the Council.
Councilmember Albertson said she would be the one bringing the item to the Council
and Council President Higgins replied that he would determine what the Council could
donate out of its budget.
Councilmember Ranniger noted that this has been on the table for years and it is
frustrating that it hasn't gone forward. She encouraged the Council to act.
Councilmember Thomas inquired if King County Councilmember Patterson need any
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assistance and Councilmember Albertson said she is going to speak to her tomorrow
about a funding estimate she had drawn up in the past.
Revenue Estimates for 2014 Budget (continued) Council President Higgins
verified with Nachlinger that in 2011 utility tax revenues increased by $2 million.
Council consensus was that they were comfortable with the estimates.
The meeting adjourned at 6:33 p.m.
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Ronald F. oore,,,MMC
City Clerk
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