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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 07/07/2020 Approved City Council Workshop Workshop Regular Meeting Minutes July 7, 2020 Date: July 7, 2020 Time: 5:02 p.m. Place: THIS IS A REMOTE MEETING I. CALL TO ORDER Council President Troutner called the meeting to order. Attendee Name Title Status Arrived Toni Troutner Council President Present Bill Boyce Councilmember Present Brenda Fincher Councilmember Present Satwinder Kaur Councilmember Present Marli Larimer Councilmember Present Zandria Michaud Councilmember Present Les Thomas Councilmember Present Dana Ralph Mayor Present II. PRESENTATIONS 1 2021-2022 Biennial Budget Review Paula Painter 60 MIN. Finance Director, Paula Painter presented the 2021-2022 Biennial Budget Review. Painter advised of recent budget reductions made by departments during April and May and indicated that because staff focused on those reductions, work on the 2021-2022 Biennial Budget was delayed. Reductions have been moved forward to the baseline reductions for 2021- 2022. Painter indicated revenue is difficult to predict due to the lag in revenue received. Painter reviewed all the Governmental Funds Revenue, including comparisons from 2018-2021/2022 forecasts. o Property Tax is a reliable revenue source and continues to grow. o Sales Tax - During 2020, Kent received 6 months of annexation sales tax revenue that goes away in 2022. o Utility Tax - A portion is allocated to the Capital Resources Fund to pay off internal debt. The debt will be paid off in 2020. · The solid waste, electric and telephone budgets has been underfunded in the past. · Cable utility tax - The General Fund has been receiving a portion of the utility tax for annexation and will be moved into the IT fund City Council Workshop Workshop Regular Meeting Minutes July 7, 2020 Kent, Washington Page 2 of 2 o B&O Tax forecast - 2022 The increase is due to a rate increase for square footage tax effective 1/1/20 - Staff will adjust as revenues come in. o Real Estate Excise Tax - Underbudget because REET is one-time revenue o Other Taxes o State Shared Revenue - Waiting to see what happens. Anticipate coming in below budget. The drop in 2021 is due to the reduction in streamlined sales tax mitigation dollars o Licenses & Permits o Charges for Services o Fines and Forfeitures o Miscellaneous Revenues Painter reviewed General Fund Expenditures for 2021 and 2022. COLA/CPI, Medical, Supplies, and Services were reviewed. Painter reviewed the budget calendar that started today with a budget kick off meeting with City staff and goes until November 17, 2020 where the budget-related documents are anticipated to be adopted. The Council expressed an interest in having a mini retreat to obtain updated details on the proposed budget. Meeting ended at 5:48 p.m. Kimberley A. Komoto City Clerk 2021-22 Budget Preview Governmental Funds Revenue 2018 2019 2020 2021 2022 Revenue Actual Actual Budget Forecast Forecast Property Tax 29.97 30.73 30.46 31.54 31.85 Sales Tax 33.16 36.40 29.01 26.68 27.45 Utility Tax 29.82 30.60 30.16 30.86 31.10 B&O Tax 9.42 13.00 14.90 14.90 17.00 Real Estate Excise Tax 7.69 9.59 3.40 3.50 3.50 Other Taxes 1.07 0.96 0.90 0.87 0.88 Fuel Tax 2.75 2.72 2.79 2.65 2.66 State Shared/Intergov 7.44 7.11 6.65 2.86 3.08 Licenses & Permits 8.12 8.03 8.03 7.58 7.64 Charges for Services 9.10 11.58 7.02 7.20 7.31 Fines & Forfeitures 2.65 3.81 4.56 4.45 4.46 Miscellaneous Revenues 2.93 4.70 3.02 2.88 2.88 Total 144.12$ 159.24$ 140.88$ 135.95$ 139.80$ General Fund Revenues 2018 2019 2020 2021 2022 Revenue Actual Actual Budget Forecast Forecast Property Tax 29.97 30.73 30.46 31.54 31.85 Sales Tax 24.70 27.12 20.85 18.20 18.80 Utility Tax 19.29 19.60 19.28 20.87 21.01 B&O Tax 9.42 13.00 14.90 14.90 17.00 Other Taxes 1.07 0.96 0.90 0.87 0.88 Licenses & Permits 7.56 7.48 7.49 7.04 7.11 State Shared/Intergov 7.92 6.65 2.97 2.69 2.89 Charges for Services 6.60 8.00 6.28 6.47 6.57 Fines & Forfeitures 1.36 1.29 1.15 1.03 1.03 Miscellaneous Revenues 2.64 3.59 2.45 2.31 2.31 Total 110.53$ 118.42$ 106.71$ 105.92$ 109.44$ General Fund Expenditures Expenditures 2021 2022 COLA/CPI 2.0%2.5% Medical 3.5%5.0% Supplies 2.0%2.0% Services 2.0%2.0% Assumption Budget Calendar •Department Budget Presentations Council Workshop (Special Saturday) •Requests and Questions Council Workshop •Public Hearing –2021 Property Tax Levy •2nd Public Hearing –2021-22 Biennial Budget and 2021-2026 CIP Council Meeting •Final Decisions Council Workshop (Special) •2021-22 Budget Recommendation Committee of the Whole •Adopt 2021 Property Tax Levy •Adopt 2021-22 Biennial Budget •Amend Comp Plan for 2021-2026 Capital Improvement Plan Council Meeting Budget Kickoff Meeting Departments Prepare/Review Budgets Department Baseline Meetings with Finance •Review and discuss operating and capital requests ELT Budget Retreat •1st Public Hearing – •2021-22 Biennial Budget and 2021-2026 CIP Council Meeting •Mayor’s Budget Message Council Meeting (Special) •Budget Overview, General Fund and Other Funds baseline discussion; significant changes Council Workshop (Special) •Other funds baseline discussion; significant changes Council Workshop (Special –if needed) July 7 July 8-22 Sept 15 Aug 20-21 Oct 27 Oct 20 Oct 10 Oct 20 Nov 10 Nov 17 July 23 –Aug 5 Sept 29 Sept 29 Oct 1