HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 08/10/2020
Approved
City Council Workshop
Workshop Special Meeting
Minutes
August 10, 2020
Date: August 10, 2020
Time: 4:01 p.m.
Place: THIS IS A REMOTE MEETING
I. CALL TO ORDER
Council President Troutner called the meeting to order at 4:01 p.m.
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. 2021-2022 BUDGET
Finance Director, Paula Painter presented extensive details on the 2021-2022
budget forecasts.
Painter reviewed forecast factors for general fund revenues for 2021 and
2022, that include factoring in when a vaccine becomes available, if there is
going to be another round of shutdowns, and the loss of annexation funding.
Painter reviewed comparisons from 2019 actuals, 2020 budget, 2020 year-
to-date and 2021 and 2022 revenue forecasts.
Painter provided factors that were considered in the preparation of revenue
forecast for property tax, sales tax, utility tax, B&O tax, other taxes, licenses
& permits, State shared/intergovernmental, charges for service, fines &
forfeitures, miscellaneous revenues.
Painter reminded the Council of the recent reductions in response to COVID-
19.
The city anticipated revenue shortfall of $15.7 million. To address the
anticipated shortfall, the City:
•Used $5 million in general fund fund balance
•Made non-Departmental Capital transfer of $3.2 million
•Transferred from the Health & Wellness fund - fund balance $1 million
•Departments made - ongoing $5 million and $1.5 million in one-time
reductions
City Council Workshop Workshop Special
Meeting
Minutes
August 10, 2020
Kent, Washington
Page 2 of 3
The factors considered for City-wide expenditure increases for 2021/2022
include increases in:
•COLA/CPI
•DRS contribution rates
•Medical
•Supplies
•Services
General Fund Expenditures and impacts to salaries, benefits, supplies,
services and allocations were detailed. Painter explained the impacts of how
annexation funds were accounted for and the changes that need to be made
to the budget to reflect the loss of annexation funds.
For general capital, Painter reviewed the sources, known expenses and
estimated funds available. The City is seeing reductions in revenues due to
the loss of streamlined sales tax dollars. The structural imbalance will be
addressed once COVID has passed.
Painter reviewed the 2021-22 biennial budget calendar and indicated the
budget is anticipated to be adopted during the November meeting.
III. COUNCIL PRIORITIES
Councilmembers expressed support for a Racial and Social Justice Manager
and suggested utilizing reserve funds for the position.
Councilmembers expressed support for a consultant to help gather and
analyze police data and ultimately make that data available to the public.
Councilmembers expressed an interest in reserving funds to hire a consultant
to analyze what revenue-producing opportunities the City could potentially
implement. The revenue-producing sources should not impact the residents
or businesses.
Councilmembers discussed if there is a need to conduct an efficiency study in
the Police Department.
Councilmembers discussed the need to contact State legislators to convey
the City’s desire to have the State provide social justice funds to cities.
Councilmembers requested a detailed budget document that includes line
items that they can review.
Mayor Ralph advised the City is already having conversations around a
race/equity manager position that will be included in the upcoming budget.
City Council Workshop Workshop Special
Meeting
Minutes
August 10, 2020
Kent, Washington
Page 3 of 3
Mayor Ralph provided her thoughts on data analytics and advised that she is
interested in data collection standards.
Mayor Ralph requested input on possible additional revenue sources and
asked if the Council is looking to revisit the cost recovery work or other
additional revenue sources.
Councilmembers Boyce and Michaud indicated they will not support any cuts
to the Parks Department.
Council President Troutner thanked the Councilmembers for participating in
this important conversation and if they are requesting additional positions,
that they also offer what cuts they would be willing to offer to cover the cost
of any new positions.
Mayor Ralph indicated departments were deliberate when making budget
cuts to ensure no additional cuts would be needed through 2022 - unless a
new crisis happens. No additional revenues are expected, and no major cuts
are anticipated.
Matheson advised of the next steps
Meeting ended at 6:10 p.m.
Kimberley A. Komoto
City Clerk
BUDGET MINI RETREAT
SPECIAL COUNCIL
WORKSHOP
AUGUST 10, 2020
A
G
E
N
D
A
•Revenues
•Forecast Factors
•Forecast Estimates
•Expenditures Estimates
•COVID -19 Reductions
•Forecast Factors
•Forecast Estimates
•General Capital
•Budget Calendar
•Council Input
2
REVENUES
3
FORECAST FACTORS
4
General Fund Revenues 2021 2022
Property Tax 1% +$150k 1% +$150k
Sales Tax -12.7%3.3%
Utility Tax -8.2%0.5%
B&O Tax 0%$3m
Other Taxes -17.8%5.4%
Licenses & Permits -10.5%6.1%
State Shared/Intergovernmental -9.5%0.4%
Charges for Services -9.0%10.1%
Fines & Forfeitures -9.5%-1.0%
Miscellaneous Revenues 7.3%-1.5%
FORECAST ESTIMATES
5
General Fund Revenues 2019 Actual 2020
Budget
2020 July
YTD
2021
Forecast
2022
Forecast
Property Tax 30.73 30.46 16.48 31.53 31.85
Sales Tax 27.12 20.85 13.38 18.20 18.80
Utility Tax 19.60 19.28 11.69 17.70 17.78
B&O Tax 13.00 14.90 6.25 14.90 17.90
Other Taxes .96 .90 .27 .74 .78
Licenses & Permits 7.48 7.49 4.12 6.70 7.11
State Shared/Intergovernmental 6.65 2.97 1.98 2.69 2.70
Charges for Services 8.00 6.28 2.16 5.65 6.22
Fines & Forfeitures 1.29 1.15 .58 1.04 1.03
Miscellaneous Revenues 3.59 2.45 1.17 2.63 2.59
Total 118.42 106.73 60.50 103.14 107.27
EXPENDITURES
6
COVID-19 REDUCTIONS
7
Revenue
Shortfall
$15.7
million
General Fund –
Fund Balance $5.0
million
Non-
Departmental
Capital Transfer
Reductions $3.2
million
Health & Wellness
Fund –Fund
Balance $1
million Department
Reductions –
Ongoing
$5 million
Department
Reductions –One-
time $1.5
million
FORECAST FACTORS
8
City-wide Expenditure Increases 2021 2022
COLA/CPI
AFSCME/NR/KPOA 1.0%1.0%
Teamsters (COLA and range increase)2.5% + 2.5%2.5%
DRS Contribution Rates
PERS .11%.11%
PSERS .11%.11%
L2PD --
Medical 3.8%5.0%
Supplies 2.0%2.0%
Services 2.0%2.0%
FORECAST ESTIMATES
9
General Fund Expenditures
(in Millions)2019 Actual 2020
Budget
2020 July
YTD
2021
Forecast
2022
Forecast
Salaries 37.72 41.29 21.80 41.93 42.97
Benefits 17.18 18.46 10.32 18.91 19.54
Supplies 2.51 2.44 1.14 2.61 2.68
Services 42.49 36.24 21.48 30.41 31.38
Allocations -15.16 -11.60 -8.70 -4.17 -3.86
Total 84.74 86.83 46.04 89.69 92.71
GENERAL CAPITAL
10
GENERAL CAPITAL
11
•Sources
•Sales Tax
•REET Q1 %
•Utility Tax
•Interest Income
•Known Expenses
•Debt
•ShoWare
•Estimated Funds Available
•2021: $5.4m
•2022: $6.0m
(in Millions)
2019
Actual
2020
Budget
2020
YTD
2021
Forecast
2022
Forecast
Beginning Fund Balance 13.00 12.58 5.19 5.23
Revenues 17.21 15.83 9.63 9.76 9.89
Expenditures
Debt 8.75 7.38 1.08 4.17 3.74
Allocations .16 .10 .16 .15
Projects 8.87 13.38 .19 5.40 6.00
Ending Fund Balance 12.58 7.50 5.23 5.23
BUDGET
CALENDAR
12
2021 -22 BIENNIAL BUDGET CALENDAR
•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 baseline discussion; significant changes
Council Workshop (Special)
•Other funds baseline discussion; significant changes
Council Workshop (Special –if needed)
•Capital baseline discussion; significant changes
Council Workshop (if needed)
•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
Sept 15
Aug 20-21
Sept 29
Sept 29
Oct 6
Oct 27
Oct 20
Oct 10
Oct 20
Nov 10
Nov 17
Oct 1
13
COUNCIL INPUT
14