HomeMy WebLinkAboutCity Council Committees - Operations Committee - 02/05/2013
Operations Committee Agenda
Councilmembers: Dennis Higgins * Jamie Perry * Les Thomas, Chair
Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the first and third Tuesday of each
month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032 -5895. Dates and times are
subject to change. For information please contact Satwinder Kaur at (253) 856 -5705.
Any person requiring a disability accommodation should contact the City Clerk’s Office at (253) 856-
5725 in advance.
For TDD relay service call the Washington Telecommunications Relay Service at
1-800-833-6388.
February 5, 2013
4:00 p.m.
Item Description Action Speaker Time Page
1. Approval of Minutes YES 1
Dated January 15, 2013.
2. Approval of Check Summary YES
Report dated 1/1/2013 through
1/15/2013.
3. Budget Certification for Annexation YES B. Nachlinger 5 Min 3
Sales Tax Credit-Resolution (ADOPT).
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OPERATIONS COMMITTEE MINUTES
January 15, 2013
Committee Members Present: Les Thomas, Chair, Dennis Higgins and Jamie Perry
The meeting was called to order by L. Thomas at 4:02 p.m.
1. APPROVAL OF MINUTES DATED JANUARY 2, 2013.
D. Higgins moved to approve the Operations Committee minutes dated
January 2, 2013. J. Perry seconded the motion, which passed 3-0.
2. APPROVAL OF CHECK SUMMARY REPORT DATED 12/15/2012 THROUGH
12/31/2012.
J. Perry moved to recommend that the City Council approve the Check Summary Report
dated December 15, 2012 thru December 31, 2012. D. Higgins seconded the motion,
which passed 3-0.
3. PART-TIME WITH BENEFITS COMMUNITY OUTREACH POSITION- AUTHORIZE.
L. Patterson requested the council to approve a .6 FTE position with benefits. This position would be
responsible for reaching out to the diverse groups and help increase diverse candidates seeking the
city employment opportunities.
There is an employee, who was laid off last year, who fits this position perfectly. She has wo rked in
Human Resources before and has connections with different diverse groups in the community. Mr.
Higgins asked if the position was being created for this one person, L. Patterson responded that the
position was being created to reach the council’s strategic goal and this person fits the position
perfectly. This position would report directly to the HR Director.
D. Higgins moved to recommend that the city establish a 60% part-time with benefits
position to enhance the city’s ability to reach diverse communities as part of its hiring
procedures, and amend the budget accordingly. J. Perry seconded the motion, which passed
2-1.
4. 2013 INSURANCE PROGRAM REVIEW-INFORMATION ONLY.
C. Hills presented the annual update on the insurance programs. He said that due to hardening of the
Liability Insurance market, premium increases have averaged 6%. Our premium will increase
approximately $23,000, which represents a 3.4% increase. Our current Excess Worker Compensation
insurer, Safety National Casualty, has adopted a minimum premium philosophy for public entities. As
a result, our premium will increase from $43,000 in 2012 to $50,000 in 2013. This represents a 15%
increase. Premium cost is still below the 2003 rate, based on coverage changes instituted for the
2012 policy year.
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Operations Committee Minutes
January 15, 2013
Page: 2
5. SHOWARE REVENUE REPORT- INFORMATION ONLY.
B. Wolters appeared before the committee members to find out if they supported SMG making
decisions on the future opportunities for the ShoWare Center. The committee members agreed that
the council does not need to review each opportunity and approve. The new trend is that the
promoters are not willing to take the risk so they require the buildings share the risk with the
promoter on each show. SMG is working on three new concerts. SMG management gave the
promoters verbal approval because any delay could have negative impact on the future business
with the promoters.
6. NOVEMBER SUMMARY FINANCIAL REPORT- INFORMATION ONLY.
B. Nachlinger presented that our fund balance is projected to be in the positive. We have been
trying to be conservative with our expenses. Our projected revenues are anticipated to be up and
our expenditures will be under budget. Finance Department has been working other departments to
improve the workforce.
The meeting was adjourned at 4:49 p.m. by L. Thomas.
___________________
Satwinder Kaur
Operations Committee Secretary
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FINANCE DEPARTMENT
R. J. Nachlinger, Director
Phone: 253-856-5260
Fax: 253-856-6255
Address: 220 Fourth Avenue S.
Kent, WA. 98032-5895
February 5, 2013
To: Operations Committee
From: R. J. Nachlinger, Finance Director
Subject: Budget Certification for Annexation Sales Tax Credit-Resolution-Adopt
MOTION: Recommend Council adopt Resolution No. ______, approving
the certification of $3,751,863 for the Panther Lake annexation sales tax
credit for the period July 1, 2013 through June 30, 2014.
SUMMARY:
The City is required to certify to the State of Washington before March 1st of each
year, the amount needed from the annexation sales tax credit to provide services in
the annexed area. The Finance Department has calculated the costs and revenues
within the Panther Lake annexation area and has determined a gap between
revenues generated and expenditures used to provide services of $3,751,863 for
July 1, 2013 through June 30, 2014
BUDGET IMPACT:
The budget for the Panther Lake annexation area for the State’s fiscal year 2013 is
anticipated to be $11,743,932 in expenditures to provide City services to those
residents, while we anticipate revenues of $7,992,069 from property taxes, sales
taxes and other sources. The net of the revenues and costs produces a deficit of
$3,751,863 which is the amount being certified as the amount of annexation sales
tax credit we are requesting from the State.
The certification resolution is attached.
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Panther Lake Annexation
RESOLUTION NO. ___________
A RESOLUTION of the City Council of the
City of Kent, Washington, authorizing the City of
Kent to impose a sales and use tax as authorized
by RCW 82.14.415 as a credit against state sales
and use tax, relating to annexations, and
authorizing the city’s Finance Director to certify the
threshold amount for the 2013 fiscal year.
RECITALS
A. This is not a new tax, but a reallocation of the sales tax
already collected by the state, which will then be remitted to the City to
assist with funding the costs of the newly annexed area.
B. After providing all appropriate notice and following appropriate
procedure, and following a favorable vote on the annexation proposition,
the Kent City Council adopted its Ordinance No. 3936 on December 8,
2009, approving the Panther Lake Annexation Area effective July 1, 2010.
The population within the annexation area determined at the time of
annexation was 25,458 people.
C. On February 15, 2011, the City adopted Resolution No. 1839
authorizing the City of Kent to impose a sales tax and use tax as
authorized by RCW 82.14.415 as a credit against state sales and use tax,
relating to annexations, and authorizing the city’s finance director to certify
the threshold amount for the 2011 fiscal year.
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Panther Lake Annexation
D. On February 7, 2012, with Resolution No. 1853, the City
authorized the imposition of similar annexation sales and use taxes for the
2012 fiscal year.
E. With this Resolution, the City authorizes the imposition of
similar annexation sales and use taxes for the 2013 fiscal year.
F. The City Council of the City of Kent, Washington, finds and
determines that the projected cost to provide municipal services to the
annexed area will be at least $11,743,932, and that cost exceeds the
projected general revenue estimated to be $7,992,069 that the City would
otherwise receive from the annexation on a fiscal year basis.
G. Pursuant to RCW 82.14.415, the City of Kent is authorized,
under the circumstances of this annexation, to impose a sales and use tax
for the next state fiscal year, which shall be collected from those persons
who are taxable by the state under Chapters 82.08 and 82.12 RCW, upon
the occurrence of any taxable event within the city, with that tax being a
credit against the state tax.
H. The rate of tax imposed shall be 0.2 percent, and shall be in
addition to other taxes authorized by law, and the threshold amount for the
next (third) state fiscal year following the annexation and adoption of the
tax is as follows: $3,751,863.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
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Panther Lake Annexation
RESOLUTION
SECTION 1. – Rate and Threshold Amount. The city of Kent will
continue the sales and use tax rate to offset municipal services costs to the
city’s newly annexed Panther Lake Annexation area at 0.2 percent, which
shall be in addition to other taxes authorized by law. The threshold amount
for the Panther Lake Annexation for the state fiscal year 2013 is
$3,751,863.
SECTION 2. – Implementation and certification. The Mayor of the
City of Kent is authorized to implement administrative procedures as may
be necessary to carry out the provisions of this Resolution. The City’s
finance director is authorized to certify the amount for the 2013 fiscal year
to the appropriate agencies within the State of Washington.
SECTION 3. – Severability. If any section, subsection, paragraph,
sentence, clause or phrase of this resolution is declared unconstitutional or
invalid for any reason, such decision shall not affect the validity of the
remaining portions of this resolution.
SECTION 4. – Savings. Resolution No. 1853 shall remain in full
force and effect until the effective date of this Resolution.
SECTION 5. – Ratification. Any act consistent with the authority
and prior to the effective date of this resolution is hereby ratified and
affirmed.
SECTION 6. – Corrections by City Clerk or Code Reviser. Upon
approval of the City Attorney, the City Clerk and the code reviser are
authorized to make necessary corrections to this resolution, including the
correction of clerical errors; references to other local, state or federal laws,
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Panther Lake Annexation
codes, rules, or regulations; or resolution numbering and
section/subsection numbering.
SECTION 7. – Effective Date. This resolution shall take effect and
be in force immediately upon its passage, however the imposition of the
sales and use taxes for the 2013 state fiscal year authorized by this
Resolution shall not take effect until the commencement of that fiscal year.
PASSED at a regular open public meeting by the City Council of the
City of Kent, Washington, this _______ day of _________________, 2013.
CONCURRED in by the Mayor of the City of Kent this ______ day of
__________________, 2013.
SUZETTE COOKE, MAYOR
ATTEST:
RONALD MOORE, CITY CLERK
APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
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I hereby certify that this is a true and correct copy of Resolution No.
______ passed by the City Council of the City of Kent, Washington, the
________ day of _________________, 2013.
RONALD MOORE, CITY CLERK
P:\Civil\Resolution\Annexation Sales Tax Threshold2013.docx
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