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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 09/17/2019 Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information pl ease contact Cathie Everett at 253-856-5705, or via email at CEverett@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications R elay Service at 7-1-1. Operations Committee Agenda Chair - Les Thomas Bill Boyce– Dennis Higgins Tuesday, September 17, 2019 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair 01 MIN. 2. Roll Call Chair 01 MIN. 3. Changes to the Agenda Chair 01 MIN. 4. Approval of August 20, 2019 Minutes YES Chair 05 MIN. 5. Approval of Check Summary Reports Dated 8/1/2019 - 8/15/2019 and 8/16/2019 - 8/31/2019 YES Chair 05 MIN. 6. July Financial Report NO Michelle Ferguson 05 MIN. 7. 2nd Quarter Investment Report NO Joe Bartlemay 05 MIN. 8. HB 1406 Sales & Use Tax for Affordable Housing Resolution of Intent YES Merina Hanson and Paula Painter 10 MIN. 9. Adjournment Chair 01 MIN. Page 1 of 4 Pending Approval Operations Committee CC Ops Regular Meeting Minutes August 20, 2019 Date: August 20, 2019 Time: 4:01 p.m. Place: Chambers Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Agenda: 1. Call to Order 4:01 p.m. 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Present Bill Boyce Councilmember Present Dennis Higgins Councilmember Present 3. Changes to the Agenda There were no changes to the agenda. 4. Approval of Minutes dated July 16, 2019 MOTION: Move to approve the Minutes dated July 16, 2019 RESULT: APPROVED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 5. Approval of Check Summary Report Dated July 1 through July 15 and July 16 through 31, 2019. MOTION: Move to approve check summary reports dated July 1 through July 15 and July 16 through 31, 2019. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Boyce, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Thomas, Boyce, Higgins 6. Small Cell Franchise with Verizon Assistant City Attorney Christina Schuck presented a request to recommend council adopt an ordinance establishing a 5-year franchise agreement with Seattle SMSA Limited Partnership, doing business as Verizon Wireless. The 4 Packet Pg. 2 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 0 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes August 20, 2019 Kent, Washington Page 2 of 4 City recently updated its code to establish a specific franchise application process and has established design standards and aesthetic requirements for small cells located within the right-of-way. The terms of the franchise agreement with Verizon Wireless include these new design standards. Because small cell technology and the legal landscape surrounding it will continue to evolve, the franchise term was set for five years. MOTION: Recommend council adopt an ordinance establishing a 5-year franchise agreement with Seattle SMSA Limited Partnership, doing business as Verizon Wireless, subject to final terms and conditions acceptable to the City. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS] Next: 8/20/2019 7:00 PM MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 7. Municipal Court Ordinance KCC 2.34 - Repeal and Reenact Deputy City Attorney Tammy White and Judge Glenn Phillips presented a request to recommend Council repeal and reenact chapter 2.34 of the Kent City Code relating to the establishment and operations of the Kent Municipal Court. Existing code was last amended in the late 90s. The current Ordinance contains many provisions where we have just restated provisions in State statute. When State statutes are updated, those provisions become outdated and conflict with State law. The new ordinance generally points back to chapter 3.50 of the RCW and adopts a new section which ensures that when new provisions are adopted in chapter 3.50 of the State statute, those are carried over and adopted through our Kent City Code. It also implements the provisions of general court rule 29 which was amended in 2002 to deal with separation of powers issues. The only real substantive change this ordinance does is remove the provision that when the Mayor appoints a judge to fill a vacancy, that Council confirms that appointment. That confirmation is not required by State law and gets into another separation of power issue between Council and the Mayor. Committee members had questions around this change that were answered by Ms. White. Committee member Higgins expressed a hope that the current and future Mayors will continue to remain collaborative with Council in the appointment process for our municipal court judges. MOTION: Recommend Council repeal and reenact Chapter 2.34 of the Kent City Code relating to the establishment and operations of the Kent Municipal Court. 4 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 0 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes August 20, 2019 Kent, Washington Page 3 of 4 RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 9/3/2019 7:00 PM MOVER: Bill Boyce, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Thomas, Boyce, Higgins 8. Origami - Risk Management Information System Contract Risk Manager Chris Hills presented a request to recommend Council authorize the Mayor to enter into a three-year agreement with Origami Risk LLC. Origami Risk provides a cloud-based risk management information system which provides current dashboards to risk management staff for analyzing claims data, providing reports, increasing awareness of claims trends and providing performance measures based on prior year performance in an easily accessible format. Origami is widely used in the industry, is considered one of the best risk management information systems and was the least expensive of the top three risk management information systems we reviewed. MOTION: Recommend Council authorize the Mayor to enter into a three- year agreement with Origami Risk LLC for a cloud-based Risk Management Information System (RMIS), subject to final terms and conditions acceptable to the City Attorney and Risk Manager. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS]Next: 9/3/2019 7:00 PM MOVER: Dennis Higgins, Councilmember SECONDER: Bill Boyce, Councilmember AYES: Thomas, Boyce, Higgins 9. 2019-2020 Property Insurance Program Review Risk Manager Chris Hills provided an update on the City's 2019-2020 property insurance program. We are looking at a premium increase of 23%, which is about average compared to other governmental entities. These increases are due to severe losses from the California fires in 2018 combined with the two major carriers limiting their coverage. To offset the increase, we have lowered our flood/earthquake limits to $35M and we've lowered our per occurrence maximum to $150M. Committee members had a few questions regarding the decrease in our flood/earthquake limits which were answered by Mr. Hills. 10. June Financial Report Senior Financial Analyst Shane Sorenson presented the June financial report. General fund reserves are estimated to end the year at $24.9 million. Revenues are estimated to end the year approximately $2.5 million higher than budgeted. Through June, all departments are remaining fairly close to budget with the overall budget variance of $768,000 or 0.7%. In the capital 4 Packet Pg. 4 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 0 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) Operations Committee CC Ops Regular Meeting Minutes August 20, 2019 Kent, Washington Page 4 of 4 resource fund our estimated revenues have increased by a little over $1 million due to the 4th quarter streamlined sales tax mitigation payment that will be coming in. We are currently in the process of working on the 2020 budget and as part of that we are looking at capital spending. There may be some projects that can't be funded in 2020 that could be funded in 2019. 11. Adjournment 4:39 p.m. Cathie Everett Committee Secretary 4 Packet Pg. 5 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 0 , 2 0 1 9 4 : 0 0 P M ( O P E N S E S S I O N ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: September 17, 2019 TO: Operations Committee SUBJECT: Approval of Check Summary Reports Dated 8/1/2019 - 8/15/2019 and 8/16/2019 - 8/31/2019 MOTION: Move to approve the check summary report dated August 1 through August 15, 2019 and August 16 through August 31, 2019. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 09/03/19 Operations Committee MEETING CANCELLED Next: 09/17/19 5 Packet Pg. 6 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: September 17, 2019 TO: Operations Committee SUBJECT: July Financial Report SUMMARY: Michelle Ferguson, Interim Financial Planning Manager, will report out the July 2019 financial report. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. July 2019 Consolidated Monthly Report (PDF) 6 Packet Pg. 7 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Revenues 107,712,000 64,253,731 110,865,330 3,153,330 2.9% Expenditures 108,581,297 52,261,702 107,629,113 952,184 0.9% Net Revenues Less Expenditures (869,297) 11,992,029 3,236,217 4,105,514 Beginning Fund Balance 23,341,440 23,341,440 Ending Fund Balance 22,472,143 26,577,657 Ending Fund Balance Detail: General Fund Reserves 22,148,353 25,712,847 20.4%23.9% Restricted for Annexation 323,790 864,810 Revenue Overview Expenditures Overview Required Ending Fund Balance Calculation Estimated Expenditures for 2019 (from above)107,629,113 18.0% 18% GF Ending Fund Balance 19,373,240 Through July, all departments are remaining fairly close to budget with an overall budget variance of $952 thousand or 0.9%. July 2019 Monthly Financial Report City of Kent, Washington General Fund Overview Summary Analysis through July shows an overall positive budget variance of $4.1 million. The budgeted use of fund balance is offset by the positive budget variance of $4.1 million, creating a net surplus of $3.2m. General Fund Reserves are estimated to end the year at $25.7 million, or 23.9% of estimated 2019 expenditures. Revenues are estimated to end the year approximately $3.2 million (2.9%) higher than budgeted. 2.06 0.83 0.64 4.13 7.65 9.46 11.91 18.92 20.65 21.67 25.71 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Est. 2019 General Fund Ending Fund Balance 10-year History (excluding Annexation)$ in millions Page 1 of 14 6.a Packet Pg. 8 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) Revenue Categories 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) Taxes: Property 29,978,040 16,340,441 30,183,080 205,040 0.7% Sales & Use 21,770,980 14,731,364 23,961,780 2,190,800 10.1% Utility 19,596,150 11,521,077 19,128,170 (467,980) -2.4% Business & Occupation 11,500,000 5,373,726 11,979,850 479,850 4.2% Other 882,650 418,925 836,040 (46,610) -5.3% Licenses and Permits 7,082,370 4,906,921 7,448,500 366,130 5.2% Intergovernmental Revenue 6,735,580 4,245,619 6,512,980 (222,600) -3.3% Charges for Services 6,001,180 4,381,710 6,499,840 498,660 8.3% Fines and Forfeitures 1,113,790 602,589 1,084,550 (29,240) -2.6% Miscellaneous Revenue 2,135,530 1,693,729 2,280,540 145,010 6.8% Transfers In 915,730 37,631 950,000 34,270 3.7% Total Revenues 107,712,000 64,253,731 110,865,330 3,153,330 2.9% July 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Revenues Variance analysis for revenues is provided for particular line items or those in which the estimated actual amount differs from the budgeted amount by at least 10% or minimum of $500,000. Variance Notes Sales & Use Tax: $2.2m increase due to higher than anticipated sales tax revenues, including $274k in annexation sales tax revenue, due to a strong construction economy. 2019 Estimated General Fund Revenues Property Taxes 27% Sales Taxes 21% Utility Taxes 17% B&O Taxes 11% Other Taxes 1% Licenses and Permits 7% Intergovernmental 7% Charges for Services 6% Fines and Forfeits Misc & Transfers In 3% Other 16% Page 2 of 14 6.a Packet Pg. 9 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) Prior Year Revenues Budgeted Revenues Actual Revenues January 5,721 6,215 6,540 February 5,542 5,547 5,521 March 7,432 8,270 7,624 April 18,343 17,454 20,431 May 8,891 7,923 9,230 June 6,778 6,752 6,226 July 8,084 7,509 8,682 August 5,496 5,735 0 September 6,935 7,278 0 October 19,388 18,072 0 November 8,117 7,123 0 December 10,353 9,833 0 Total 111,081 107,712 64,254 Prior Year Revenues Budgeted Revenues Actual Revenues January 0 10 32 February 213 225 230 March 736 953 866 April 12,768 12,204 12,268 May 1,860 2,172 2,730 June 121 158 128 July 269 111 87 August 104 110 0 September 327 591 0 October 11,934 11,603 0 November 1,432 1,589 0 December 207 251 0 Total 29,971 29,978 16,340 Prior Year Revenues Budgeted Revenues Actual Revenues January 1,761 1,626 2,060 February 2,045 2,037 2,485 March 1,810 1,611 2,058 April 1,604 1,564 1,788 May 2,074 1,834 2,244 June 2,019 1,618 1,765 July 2,000 1,752 2,331 August 2,152 1,966 0 September 2,066 1,808 0 October 2,056 1,811 0 November 2,261 1,983 0 December 2,851 2,162 0 Total 24,699 21,771 14,731 July 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) All Revenues Sources Property Tax Sales Tax $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 3 of 14 6.a Packet Pg. 10 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) July 2019 Monthly Financial Report City of Kent, Washington General Fund Revenues ($ in Thousands) Prior Year Revenues Budgeted Revenues Actual Revenues January 1,860 2,082 1,887 February 1,771 1,748 1,583 March 1,719 1,669 1,680 April 1,737 1,840 1,707 May 1,602 1,542 1,575 June 1,447 1,419 1,450 July 1,647 1,739 1,639 August 1,482 1,482 0 September 1,560 1,681 0 October 1,427 1,479 0 November 1,537 1,494 0 December 1,499 1,422 0 Total 19,289 19,596 11,521 Prior Year Revenues Budgeted Revenues Actual Revenues January 1 6 2 February 3 14 2 March 33 261 48 April 322 1,785 2,479 May 1,688 844 543 June 223 175 81 July 2,011 2,286 2,637 August 340 446 0 September 145 129 0 October 2,100 2,530 0 November 252 417 0 December 3,378 3,491 0 Total 10,496 12,383 5,793 Prior Year Revenues Budgeted Revenues Actual Revenues January 2,099 1,894 2,560 February 1,510 934 1,221 March 3,135 2,772 2,972 April 1,912 1,688 2,189 May 1,667 1,549 2,139 June 2,968 2,855 2,801 July 2,157 1,736 1,987 August 1,419 1,424 0 September 2,836 2,724 0 October 1,870 1,973 0 November 2,634 1,485 0 December 2,417 2,951 0 Total 26,625 23,984 15,868 Utility Tax Other Taxes Other Revenues (Intergovernmental, Licenses & Permits, Charges for Service, Fines & Forfeits, and Misc Revenues) $0 $5,000 $10,000 $15,000 $20,000 $25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $2,000 $4,000 $6,000 $8,000 $10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 Bud 18 Act 19 Act Page 4 of 14 6.a Packet Pg. 11 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) Department 2019 Adj Budget 2019 YTD 2019 Est Actual Variance Favorable (Unfavorable) %Variance Favorable (Unfavorable) City Council 439,300 227,745 408,200 31,100 7.1% Mayor's Office/City Clerk 3,005,410 1,592,392 3,078,000 (72,590) -2.4% Economic & Community Dev 7,374,150 3,957,756 7,140,200 233,950 3.2% Finance 3,343,250 1,984,561 3,298,700 44,550 1.3% Fire Contracted Services 3,905,690 2,047,536 3,690,303 215,387 5.5% Human Resources 2,204,290 1,218,938 2,109,800 94,490 4.3% Information Technology 528,260 293,665 512,500 15,760 3.0% Law 1,828,780 1,016,544 1,795,300 33,480 1.8% Municipal Court 3,516,080 2,082,409 3,568,700 (52,620) -1.5% Parks, Recreation & Comm Svcs 19,149,947 10,442,544 18,657,200 492,747 2.6% Police 42,803,350 24,802,500 42,932,300 (128,950) -0.3% Public Works 1,142,280 658,169 1,097,400 44,880 3.9% Non-Departmental 19,340,510 1,936,943 19,340,510 Total Expenditures 108,581,297 52,261,702 107,629,113 952,184 0.9% July 2019 Monthly Financial Report City of Kent, Washington General Fund Overview - Expenditures Variance analysis for expenditures is provided for particular departments or those in which the estimated actual amount differs from the budgeted amount by at least 10% or a minimum of $500,000. Variance Notes None. City Council Mayor's Office/City Clerk 3% ECD 7%Finance 3% Fire Contracted Services 3% Human Resources 2% I.T. Law 2% Municipal Court 3% Parks, Recreation & Comm Svcs 17% Police 40% Public Works 1% Non-Departmental 18% Other 6% 2019 Estimated General Fund Expenditures Page 5 of 14 6.a Packet Pg. 12 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Adj Budget YTD Est Actual Beginning Fund Balance 19,987,828 21,595,175 23,341,440 23,341,440 23,341,440 Revenues Taxes: Property 22,999,864 29,971,155 29,978,040 16,340,441 30,183,080 Sales & Use 21,109,277 24,699,301 21,770,980 14,731,364 23,961,780 Utility 19,648,349 19,289,162 19,596,150 11,521,077 19,128,170 Business & Occupation 9,141,800 9,422,048 11,500,000 5,373,726 11,979,850 Other 900,663 1,074,356 882,650 418,925 836,040 Licenses and Permits 6,962,130 7,557,658 7,082,370 4,906,921 7,448,500 Intergovernmental Revenue 8,102,414 7,919,860 6,735,580 4,245,619 6,512,980 Charges for Services 7,328,567 6,602,681 6,001,180 4,381,710 6,499,840 Fines and Forfeitures 1,549,964 1,360,976 1,113,790 602,589 1,084,550 Miscellaneous Revenue 2,241,585 2,233,777 2,135,530 1,693,729 2,280,540 Transfers In 934,128 950,000 915,730 37,631 950,000 Total Revenues 100,918,740 111,080,973 107,712,000 64,253,731 110,865,330 Expenditures City Council 349,577 344,160 439,300 227,745 408,200 Mayor's Office/City Clerk 2,745,792 2,759,974 3,005,410 1,592,392 3,078,000 Economic & Community Dev 5,841,098 6,675,576 7,374,150 3,957,756 7,140,200 Finance 2,522,554 3,061,472 3,343,250 1,984,561 3,298,700 Fire Contracted Services 3,668,180 3,619,385 3,905,690 2,047,536 3,690,303 Human Resources 1,835,276 2,075,553 2,204,290 1,218,938 2,109,800 Information Technology 521,151 506,265 528,260 293,665 512,500 Law 1,600,451 1,673,438 1,828,780 1,016,544 1,795,300 Municipal Court 3,128,652 3,442,107 3,516,080 2,082,409 3,568,700 Parks, Recreation & Comm Svcs 16,655,356 17,992,171 19,149,947 10,442,544 18,657,200 Police 37,167,622 39,315,958 42,803,350 24,802,500 42,932,300 Public Works 1,111,563 1,155,562 1,142,280 658,169 1,097,400 Non-Departmental 22,164,122 26,706,702 19,340,510 1,936,943 19,340,510 Total Expenditures 99,311,394 109,328,323 108,581,297 52,261,702 107,629,113 Net Revenues less Expenditures 1,607,347 1,752,650 (869,297) 11,992,029 3,236,217 Ending Fund Balance 21,595,175 23,347,825 22,472,143 35,333,469 26,577,657 Ending Fund Balance Detail: General Fund Reserves 20,654,415 21,666,605 22,148,353 25,712,847 based on same year actuals/budget 20.8% 19.8% 20.4% 23.9% Restricted for Annexation 940,760 1,681,220 323,790 864,810 July 2019 Monthly Financial Report City of Kent, Washington General Fund Page 6 of 14 6.a Packet Pg. 13 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 % of thru July thru July thru July Budget Revenues Taxes: Property 12,134,733 15,966,538 16,340,441 373,903 2.3%54.5% Sales & Use 11,930,710 13,312,609 14,731,364 1,418,755 10.7%67.7% Utility 11,985,004 11,783,475 11,521,077 (262,398) -2.2%58.8% Business & Occupation 4,389,635 3,722,837 5,373,726 1,650,889 44.3%46.7% Other 424,268 557,608 418,925 (138,683) -24.9%47.5% Licenses and Permits 3,762,594 4,827,175 4,906,921 79,746 1.7%69.3% Intergovernmental Revenue 4,314,445 4,333,403 4,245,619 (87,784) -2.0%63.0% Charges for Services 4,012,177 4,190,226 4,381,710 191,484 4.6%73.0% Fines and Forfeitures 1,038,162 707,161 602,589 (104,573) -14.8%54.1% Miscellaneous Revenue 1,223,334 1,390,387 1,693,729 303,343 21.8%79.3% Transfers In - - 37,631 37,631 4.1% Total Revenues 55,215,062 60,791,419 64,253,731 3,462,311 5.7%59.7% Expenditures City Council 206,362 208,981 227,745 18,763 9.0%51.8% Mayor's Office/City Clerk 1,326,882 1,342,004 1,592,392 250,388 18.7%53.0% Economic & Community Dev 3,259,645 3,910,418 3,957,756 47,338 1.2%53.7% Finance 1,430,631 1,852,167 1,984,561 132,394 7.1%59.4% Fire Contracted Services 2,166,770 2,192,569 2,047,536 (145,033) -6.6%52.4% Human Resources 1,025,635 1,214,551 1,218,938 4,387 0.4%55.3% Information Technology 312,612 294,804 293,665 (1,139) -0.4%55.6% Law 902,946 994,919 1,016,544 21,625 2.2%55.6% Municipal Court 1,809,197 1,920,447 2,082,409 161,962 8.4%59.2% Parks, Recreation & Comm Svcs 9,493,625 10,117,866 10,442,544 324,678 3.2%54.5% Police 21,324,904 22,791,264 24,802,500 2,011,237 8.8%57.9% Public Works 677,388 682,095 658,169 (23,925) -3.5%57.6% Non-Departmental 2,846,140 4,217,208 1,936,943 (2,280,264) -54.1%10.0% Total Expenditures 46,782,736 51,739,292 52,261,702 522,410 1.0%48.1% *General Govt. includes City Council, Mayor/Clerk, HR, IT, & Finance Variance July 2019 Monthly Financial Report City of Kent, Washington General Fund Year-to-Year Month Comparison 2019-18 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Property Taxes Sales & Use Taxes Utility Taxes Other Revenues GF Revenues thru July 2017 2018 2019 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Police Parks *General Govt. ECD Non-Dept & Other GF Expenditures thru July 2017 2018 2019 Page 7 of 14 6.a Packet Pg. 14 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2019 2019 2019 2019 Beginning Fund Balance Estimated Revenues Estimated Expenditures Ending Fund Balance Operating revenues and expenditures only; capital and non-capital projects are excluded. General Fund 23,341,440 110,865,330 107,629,113 26,577,657 Street Fund 5,416,967 19,005,720 19,630,190 4,792,497 LEOFF 1 Retiree Benefits 1,872,112 1,179,590 1,423,000 1,628,702 Lodging Tax 336,765 296,130 510,790 122,105 Youth/Teen Programs 91,846 957,730 957,730 91,846 Capital Resources 15,599,192 17,686,480 22,601,850 10,683,822 Criminal Justice 7,247,796 6,380,530 6,087,720 7,540,606 ShoWare Operating 2,563,460 1,159,000 1,423,790 2,298,670 Other Operating 587,401 112,670 112,670 587,401 Councilmanic Debt Service 1,451,046 10,266,810 9,803,310 1,914,546 Special Assessments Debt Service 479,916 1,305,380 1,119,460 665,836 Water Utility 20,822,197 30,322,610 36,221,310 14,923,497 Sewer Utility 6,829,754 31,820,310 31,667,540 6,982,524 Drainage Utility 17,562,223 23,758,520 29,677,130 11,643,613 Solid Waste Utility 466,749 896,530 874,520 488,759 Golf Complex (1,110,421) 2,638,000 2,660,000 (1,132,421) Fleet Services 5,869,149 6,707,070 7,593,290 4,982,929 Central Services 15,044 396,000 387,290 23,754 Information Technology 3,348,099 8,931,250 9,078,180 3,201,169 Facilities 2,316,961 5,789,380 5,104,090 3,002,251 Unemployment 1,401,222 121,700 313,610 1,209,312 Workers Compensation 3,478,730 1,094,000 1,456,980 3,115,750 Employee Health & Wellness 3,886,427 15,443,840 13,012,690 6,317,577 Liability Insurance 878,314 1,810,690 2,017,600 671,404 Property Insurance 607,537 1,365,920 1,332,100 641,357 General Fund Special Revenue Funds Debt Service Funds Enterprise Funds Internal Service Funds Fund Balances July 2019 Monthly Financial Report City of Kent, Washington Page 8 of 14 6.a Packet Pg. 15 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. Street Fund Revenues 14,407,771 15,241,855 17,345,420 8,260,870 19,005,720 Expenditures 12,511,397 15,698,374 19,630,192 8,854,993 19,630,190 Net Revenues Less Expenditures 1,896,373 (456,519)(2,284,772)(594,123)(624,470) LEOFF 1 Retiree Benefits Revenues 1,285,285 1,948,504 1,179,590 101,297 1,179,590 Expenditures 1,163,174 1,372,764 1,423,000 787,952 1,423,000 Net Revenues Less Expenditures 122,111 575,740 (243,410)(686,656)(243,410) Lodging Tax Revenues 316,975 320,774 294,830 147,397 296,130 Expenditures 328,804 441,566 510,790 232,526 510,790 Net Revenues Less Expenditures (11,830)(120,791)(215,960)(85,129)(214,660) Youth/Teen Programs Revenues 955,757 928,958 957,730 552,848 957,730 Expenditures 942,000 942,000 957,730 957,730 Net Revenues Less Expenditures 13,757 (13,042)552,848 Capital Resources Revenues 19,948,247 22,962,097 16,169,310 9,468,136 17,686,480 Expenditures 15,579,639 23,009,239 22,601,850 3,173,050 22,601,850 Net Revenues Less Expenditures 4,368,607 (47,142)(6,432,540)6,295,086 (4,915,370) Criminal Justice Revenues 6,032,589 5,141,297 6,300,130 3,378,180 6,380,530 Expenditures 4,533,302 5,090,504 6,087,720 3,608,868 6,087,720 Net Revenues Less Expenditures 1,499,287 50,792 212,410 (230,688)292,810 ShoWare Operating Revenues 1,355,226 1,502,759 1,150,000 205,863 1,159,000 Expenditures 1,067,836 1,373,763 1,423,790 599,510 1,423,790 Net Revenues Less Expenditures 287,390 128,996 (273,790)(393,648)(264,790) Other Operating Revenues 129,338 133,288 112,670 112,670 Expenditures 40,094 72,045 112,670 88,794 112,670 Net Revenues Less Expenditures 89,244 61,243 (88,794) Councilmanic Debt Service Revenues 10,781,229 10,535,010 10,266,810 2,510,901 10,266,810 Expenditures 10,316,403 10,070,185 9,803,310 2,536,712 9,803,310 Net Revenues Less Expenditures 464,826 464,826 463,500 (25,811)463,500 Special Assessment Debt Service Revenues 1,979,573 1,458,264 1,305,380 630,587 1,305,380 Expenditures 2,585,818 1,561,009 1,119,460 441,072 1,119,460 Net Revenues Less Expenditures (606,245)(102,745)185,920 189,515 185,920 Debt Service Funds July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Special Revenue Funds Page 9 of 14 6.a Packet Pg. 16 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Water Utility Revenues 28,209,235 29,438,960 29,589,060 17,795,663 30,322,610 Expenditures 26,577,932 28,004,249 36,221,310 11,719,429 36,221,310 Net Revenues Less Expenditures 1,631,303 1,434,710 (6,632,250)6,076,233 (5,898,700) Sewer Utility Revenues 31,820,310 19,113,437 31,820,310 Expenditures 31,667,540 16,736,831 31,667,540 Net Revenues Less Expenditures 152,770 2,376,606 152,770 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 54,240,288 57,343,023 23,343,620 14,624,722 23,758,520 Expenditures 49,060,469 56,879,160 29,677,130 8,543,927 29,677,130 Net Revenues Less Expenditures 5,179,819 463,863 (6,333,510)6,080,795 (5,918,610) Solid Waste Utility Revenues 754,868 799,794 892,980 494,450 896,530 Expenditures 577,964 812,476 874,520 421,158 874,520 Net Revenues Less Expenditures 176,904 (12,682)18,460 73,292 22,010 Golf Complex Revenues 3,027,079 9,229,538 2,819,210 1,543,021 2,638,000 Expenditures 3,081,308 6,467,553 2,963,220 1,626,507 2,660,000 Net Revenues Less Expenditures (54,229)2,761,985 (144,010)(83,485)(22,000) Fleet Services Revenues 5,480,210 5,686,534 6,707,070 4,909,637 6,707,070 Expenditures 4,164,630 7,286,339 7,593,290 3,800,495 7,593,290 Net Revenues Less Expenditures 1,315,580 (1,599,805)(886,220)1,109,142 (886,220) Central Services Revenues 350,602 375,410 447,090 211,303 396,000 Expenditures 290,147 357,253 387,290 196,798 387,290 Net Revenues Less Expenditures 60,455 18,157 59,800 14,505 8,710 Information Technology Revenues 8,173,478 8,416,261 9,116,700 5,611,603 8,931,250 Expenditures 8,175,302 8,676,906 9,078,180 5,139,544 9,078,180 Net Revenues Less Expenditures (1,824)(260,645)38,520 472,059 (146,930) Facilities Revenues 4,737,520 4,941,020 5,754,880 3,090,545 5,789,380 Expenditures 4,761,950 4,933,077 5,838,050 2,456,043 5,104,090 Net Revenues Less Expenditures (24,429)7,943 (83,170)634,503 685,290 Unemployment Revenues 167,215 158,565 121,700 95,579 121,700 Expenditures 75,154 181,851 313,610 126,999 313,610 Net Revenues Less Expenditures 92,061 (23,286)(191,910)(31,420)(191,910) Enterprise Funds Internal Service Funds Note: Golf revenues include proceeds from the sale of land of $500k in 2017 and $6m in 2018. 2018 Exp include $3.3m transfer to Capital Projects Page 10 of 14 6.a Packet Pg. 17 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 2019 2019 Actual Actual Budget YTD Est Actual Operating revenues and expenditures only; capital and non-capital projects are excluded. In instances where expenditures exceed revenues, fund balance is being utilized. July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Workers Compensation Revenues 1,082,091 1,829,452 1,094,000 710,328 1,094,000 Expenditures 1,013,278 725,048 1,456,980 686,206 1,456,980 Net Revenues Less Expenditures 68,813 1,104,404 (362,980)24,122 (362,980) Employee Health & Wellness Revenues 11,707,967 13,857,791 15,052,030 8,956,763 15,443,840 Expenditures 13,428,552 12,931,931 14,898,160 7,672,222 13,012,690 Net Revenues Less Expenditures (1,720,584)925,860 153,870 1,284,541 2,431,150 Liability Insurance Revenues 2,087,755 1,950,908 1,810,690 1,250,966 1,810,690 Expenditures 2,180,680 2,733,726 2,017,600 1,762,252 2,017,600 Net Revenues Less Expenditures (92,925)(782,818)(206,910)(511,286)(206,910) Property Insurance Revenues 556,770 587,906 1,365,920 1,083,081 1,365,920 Expenditures 436,283 632,404 1,332,100 1,003,628 1,332,100 Net Revenues Less Expenditures 120,487 (44,498)33,820 79,453 33,820 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Revenues Special Revenue Funds Enterprise Funds Internal Service Funds 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 General Fund Special Revenue Funds Enterprise Funds Internal Service Funds 2019 Estimated Fund Balances Beginning Balance Estimated Ending Balance 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 2017 Actuals 2018 Actuals 2019 Budget 2019 Est. Actuals Other Fund Expenditures Special Revenue Funds Enterprise Funds Internal Service Funds Page 11 of 14 6.a Packet Pg. 18 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru July thru July thru July Operating revenues and expenditures only; capital and non-capital projects are excluded. Street Fund Revenues 6,783,752 6,999,043 8,260,870 1,261,828 18.0% Expenditures 6,389,978 7,163,351 8,854,993 1,691,642 23.6% Net Revenues Less Expenditures 393,774 (164,308)(594,123) LEOFF 1 Retiree Benefits Revenues 559,312 456,412 101,297 (355,115)-77.8% Expenditures 654,800 836,915 787,952 (48,962)-5.9% Net Revenues Less Expenditures (95,488)(380,503)(686,656) Lodging Tax Revenues 141,118 148,799 147,397 (1,403)-0.9% Expenditures 197,009 238,753 232,526 (6,227)-2.6% Net Revenues Less Expenditures (55,891)(89,954)(85,129) Youth/Teen Programs Revenues 590,423 575,261 552,848 (22,412)-3.9% Expenditures Net Revenues Less Expenditures 590,423 575,261 552,848 Capital Resources Revenues 9,471,493 10,848,558 9,468,136 (1,380,422)-12.7% Expenditures 2,195,013 2,744,213 3,173,050 428,837 Net Revenues Less Expenditures 7,276,479 8,104,345 6,295,086 Criminal Justice Revenues 2,757,434 2,855,594 3,378,180 522,587 18.3% Expenditures 2,481,367 2,402,045 3,608,868 1,206,823 50.2% Net Revenues Less Expenditures 276,067 453,548 (230,688) ShoWare Operating Revenues 179,265 450,970 205,863 (245,108)-54.4% Expenditures 220,652 519,810 599,510 79,700 15.3% Net Revenues Less Expenditures (41,388)(68,840)(393,648) Admissions Tax revenues received quarterly (April, July, September, January) Other Operating Revenues 5,000 (5,000)-100.0% Expenditures 26,237 43,467 88,794 45,327 104.3% Net Revenues Less Expenditures (26,237)(38,467)(88,794) Combines several small programs, including City Art Program and Neighborhood Matching Grants Special Revenue Funds Variance July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Page 12 of 14 6.a Packet Pg. 19 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru July thru July thru July Operating revenues and expenditures only; capital and non-capital projects are excluded. Variance July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Councilmanic Debt Service Revenues 2,721,443 2,620,517 2,510,901 (109,616)-4.2% Expenditures 2,721,443 2,620,517 2,536,712 (83,805)-3.2% Net Revenues Less Expenditures (25,811) Debt service payments are generally due in June and December. Special Assessments Debt Service Revenues 993,473 710,077 630,587 (79,490)-11.2% Expenditures 196,552 188,577 441,072 252,495 133.9% Net Revenues Less Expenditures 796,920 521,501 189,515 Water Utility Revenues 15,144,244 16,027,297 17,795,663 1,768,366 11.0% Expenditures 10,837,358 12,697,517 11,719,429 (978,087)-7.7% Net Revenues Less Expenditures 4,306,886 3,329,780 6,076,233 Sewer Utility Revenues 19,113,437 19,113,437 Expenditures 16,736,831 16,736,831 Net Revenues Less Expenditures 2,376,606 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Drainage Utility Revenues 30,685,202 33,211,247 14,624,722 (18,586,524)-56.0% Expenditures 26,082,304 25,121,241 8,543,927 (16,577,313)-66.0% Net Revenues Less Expenditures 4,602,897 8,090,006 6,080,795 Note: Sewer Utility was combined with Drainage Utility in 2017 & 2018. Solid Waste Utility Revenues 350,797 448,885 494,450 45,565 10.2% Expenditures 286,910 457,911 421,158 (36,753)-8.0% Net Revenues Less Expenditures 63,887 (9,026)73,292 Golf Complex Revenues 1,509,433 7,478,545 1,543,021 (5,935,524)-79.4% Expenditures 1,569,873 2,105,743 1,626,507 (479,237)-22.8% Net Revenues Less Expenditures (60,440)5,372,802 (83,485) 2018 Revenues include $6m in proceeds from the sale of land. Fleet Services Revenues 2,859,629 2,939,383 4,909,637 1,970,255 67.0% Expenditures 1,988,009 3,001,881 3,800,495 798,614 26.6% Net Revenues Less Expenditures 871,619 (62,499)1,109,142 Central Services Revenues 196,098 231,331 211,303 (20,027)-8.7% Expenditures 154,434 241,188 196,798 (44,390)-18.4% Net Revenues Less Expenditures 41,664 (9,857)14,505 Debt Service Funds Enterprise Funds Internal Service Funds Page 13 of 14 6.a Packet Pg. 20 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) 2017 2018 2019 thru July thru July thru July Operating revenues and expenditures only; capital and non-capital projects are excluded. Variance July 2019 Monthly Financial Report City of Kent, Washington Other Funds Overview (Revenues and Expenditures) Year-to-Year Month Comparison 2019-18 Information Technology Revenues 4,602,714 4,850,916 5,611,603 760,687 15.7% Expenditures 3,361,135 4,607,584 5,139,544 531,959 11.5% Net Revenues Less Expenditures 1,241,579 243,332 472,059 Facilities Revenues 2,740,245 2,875,801 3,090,545 214,745 7.5% Expenditures 2,309,713 2,347,753 2,456,043 108,290 4.6% Net Revenues Less Expenditures 430,532 528,048 634,503 Unemployment Revenues 104,851 89,881 95,579 5,698 6.3% Expenditures 36,904 100,269 126,999 26,729 26.7% Net Revenues Less Expenditures 67,947 (10,388)(31,420) Workers Compensation Revenues 615,275 670,939 710,328 39,390 5.9% Expenditures 606,239 611,740 686,206 74,466 12.2% Net Revenues Less Expenditures 9,036 59,199 24,122 Employee Health & Wellness Revenues 6,304,351 8,226,052 8,956,763 730,711 8.9% Expenditures 8,137,150 7,893,470 7,672,222 (221,248)-2.8% Net Revenues Less Expenditures (1,832,799)332,582 1,284,541 Liability Insurance Revenues 1,556,608 980,090 1,250,966 270,876 27.6% Expenditures 2,280,275 1,623,049 1,762,252 139,203 8.6% Net Revenues Less Expenditures (723,668)(642,959)(511,286) Property Insurance Revenues 326,699 347,099 1,083,081 735,982 212.0% Expenditures 570,050 599,762 1,003,628 403,866 67.3% Net Revenues Less Expenditures (243,351)(252,663)79,453 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Revenues thru July 2017 2018 2019 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 Special Revenue Funds Enterprise Funds Internal Service Funds Other Fund Expenditures thru July 2017 2018 2019 Page 14 of 14 6.a Packet Pg. 21 At t a c h m e n t : J u l y 2 0 1 9 C o n s o l i d a t e d M o n t h l y R e p o r t ( 1 9 8 6 : J u l y F i n a n c i a l R e p o r t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: September 17, 2019 TO: Operations Committee SUBJECT: 2nd Quarter Investment Report SUMMARY: Joe Bartlemay, Cash & Investment Officer, will report on the June 30, 2019 investment report. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services ATTACHMENTS: 1. Q2 2019 Investment Reports (PDF) 7 Packet Pg. 22 CITY OF KENT INVESTMENT PORTFOLIO June 3O, 2Ol9 Purchase Market Value Investment Date Investment Description Yield Maturitv lôt30t2l¡19 TotelO6l3OlL9 Cash - US BankO6/3O|L9 WA State LGIP 9þ1LO/L9 PFM Manased Portfolio 2.5OOo/o 2.5060/o 2.52Oo/o Overnight Overnight 982 Days L6,44O,214 85,L74,O75 r2r.35L.9L2 t6,44O,214 85,I74,O75 119.181.623 222.96,6,.2l¡1 22l¡-795-l Kent Portfolio r Cash r WA StAtE LGIP r U.S, Treasuries rSupra National Bonds r Municipal Bonds r Gov't. Agencies rCorporate Notes r Commerc¡al Paper . Bank Notes PFM initiated 5 investment trades in the 2nd quarter of 2019. The PFM managed portfolio held 104 investments at06/30/20L9. The City is currently carrying greater than adequate liquidity in cash and the LGIP. Portfolio allocations at06/30/2019 were in compliance with the City's investment policy Q2-20L9 investment i nterest revenue : $L,330,2I4.57 . YTD -2019 investment interest revenuet $2,533,776.05. 7.a Packet Pg. 23 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) CITY OF KENT CASH AND INVESTMENTS BY TYPE QUARTER ENDING BALANCES 2018 Q2-Q4 AND 2019 Q1-Q2 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 -___--_----a ---i--- Tobt Gl +LGIP øêrtNofrnb ---"----{,- ----------ç---a----------' X x- 2nd Quarter 2018 3rd Quarter 2018 4th Quarter 2018 1st Quarter 2019 2nd Quarter 2019 7.a Packet Pg. 24 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) CASH AND INVESTMENTS MONTH ENDING BALANCES 201712018t2019 250,000,000 200,000,000 150,000,000 -r----- æ17 100,000,000 50,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC \o ''-o -\ ---;-- .Y --a"'.--J-'---ù-----ù-- { -0- --a--- + 4 --a--- /4j- _--4" 4 4 ---J- --* -b --+' F V a--' 7.a Packet Pg. 25 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) Quarterly Interest Earnings Q2r 2O1g - Q2r 2O1g 1,400,000 1,200,000 t,077,093 L,O73,927 1,000,000 800,000 600,o00 585,449 400,000 200,000 Q2 2018 Q3 2018 Q4 2018 Ql2019 q2 2019 I General Fund r Other Funds 186,0551q?' 7?ç,1 qR ¿9r 7.a Packet Pg. 26 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) Total Cash and Investments By Fund June 30, 2019 1000 1 100 1200 1 300 1400 I 500 1600 1 800 1900 1950 2200 2500 3100 3200 3300 3400 3500 4100 4300 4400 4700 4800 51 00 5200 5400 5600 5900 6200 6400 6500 6600 6700 6800 7100 General Fund Street Fund PS Retiree Healthcare Fund Lodging Tax Fund Youth/Teen Fund Capital Resources Fund Criminal Justice Fund Housing & Comm Dev Fund Other Operating Projects Fund Kent Events Center Operating Fund Non-Voted Debt Service Fund Spec Assess Debt Service Fund Street Capital Projects Fund Parks Capital Projects Fund Other Capital Projects Fund Technology Capital Projects Fund Facilities Capital Projects Fund Water Fund Sewer Fund Drainage Fund Solid Waste Fund Golf Fund Fleet Service Fund Central Services Fund Facilities Management Fund Insurance Fund Deferred Compensation Fund Firefighters Pension Fund Deferred Comp Fund Payroll Clearing Fund Subsystem Clearing Fund Utility Clearing Fund Agency Clearing Fund Special Events Center-PFD Total: 31 ,196,51 6 6,498,171 1,312,591 232,982 495,530 19,341,260 6,142,775 (253,764) 751,626 2,141,760 1,428,478 484,497 12,277,962 13,957,027 1,481,951 5,624,291 42,680 39,904,747 (63,167,835) 103,756,749 514,165 4,046,941 6,225,277 4,426,176 5,523,551 11,326,439 92,453 2,341,291 131,524 (9,575) 627,634 1,544,932 365 122 795 912 7.a Packet Pg. 27 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) pfm CITY OF KENT - 4882OOOO Description U.S. Treasury Bond / Note Supra-National Agency Bond / Note Municipal Bond / Note Federal Agency Bond / Note Corporate Note Bank Note Managed Account Sub-Total Accrued Interest Total Portfolio Unsetüed Trades 28.650/o 7 -53o/o 2.O9o/o Portfolio Summary and Statistics Par Value Market Value Percent 66,985,000.00 5,285,000.00 455,000.00 18,039,000.00 29,340,000.00 120,599,000.00 120,599,000.00 tztpo7,342.55 0.00 0.00 27.83o/o 67,L29,90L.92 5,327,34r.12 462,L02.55 L8,L43,349.37 29,790,104.40 499,Lt2.96 12L,351,912.32 100.00o/o 555,430.23 15.92o/" 0.000/o US TSY Bond / 55.32o/o Yield to Maturity at Cost Yield to Maturity at Market Duration to Worst Weighted Average Days to Maturity For the Month Ending June 30, 2019 Note O.4Io/o Note 24.55o/o Fed Agy Bond / Note L4.95o/o Muni Bond / Note 0.38o/o Supra-National Bond / Note 4.39o/o 2.52o/o L92o/o 2.56 982 5s.32 4.39 0.38 14.95 24.55 0.41 17.98o/o 0-6Months 6-12Months 1-2Years 2-3Years 3-4Years 4-5Years Over5years Account Summary Sector Allocation Maturity Distribution Characteristics PFM Asset iáanagement LLC Account 4882OOOO Page 2 7.a Packet Pg. 28 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) CITY OF KENT Sector 6/30/2019 % of Portfolio U.S. Treasury $67,129,902 30.10/o FederalAgencies $18,143,349 8.1% Supranational $5,327,341 2.40/o Municipal $462,103 0.20/o Commercial Paper/ Corporate Notes $30,289,217 13.60/o For the Quarter Ended June 30, 20lg Potffolio Compliance Portfolio Compliance Permitted by Policy ln Gompliance 313112019 % of Portfolio 100o/o lOOo/o 20o/o 2oo/o 25o/o ø ø ø ø ø ø N/A $64,121,600 30.3% $19,347,378 9.1o/o $5,276,049 2.50/o $459,109 0.20/o $30,598,488 14.50/o LGIP $85,174,075 38.20/o 100o/o $75,160,710 35.5% Bank Deposit $16,440,214 7.40/o N/A $16,551,825 7.8o/o Total $222,966,202 100o/o s211,515,159 100o/o Maket values, excluding accrued interest. DeÞil may not add to total due to rcunding. Cunent invest¡¡ent policy as of March 2017. PFM Asset Management LLC 7.a Packet Pg. 29 At t a c h m e n t : Q 2 2 0 1 9 I n v e s t m e n t R e p o r t s ( 1 9 8 7 : 2 n d Q u a r t e r I n v e s t m e n t R e p o r t ) OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: September 17, 2019 TO: Operations Committee SUBJECT: HB 1406 Sales & Use Tax for Affordable Housing Resolution of Intent MOTION: Recommend council adopt a resolution declaring its intent to authorize a sales and use tax for affordable and supportive housing in accordance with Substitute House Bill 1406. SUMMARY: In the 2019 Regular Session, the Washington State Legislature passed Substitute House Bill 1406 (“SHB 1406”). SHB 1406 creates a revenue sharing program for local governments which authorizes a local sales and use tax credit. The tax will be credited against state sales taxes collected within the City, meaning that taxes collected are, in effect, shifted from the state to the City, and no additional taxes are paid by consumers. The additional funds directed to the City as a result of the tax credit may be used for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of such housing. In order to secure the additional funding provided by the program, the City Council must first pass a resolution by January 27, 2020, declaring its intent to adopt legislation to authorize the maximum capacity of the tax. While this declaration of intent does not bind the City to any future action, it is required in order to preserve the City’s ability to impose the tax and access the additional funding. The City is not required to decide how the funds will be used at this time, but the City Council must pass legislation imposing the tax by July 27, 2020. If adopted, the tax credit would be effective for up to 20 years. Staff is currently evaluating options for how the City can best utilize and leverage the additional funds. SUPPORTS STRATEGIC PLAN GOAL: Sustainable Services 8 Packet Pg. 30 ATTACHMENTS: 1. Sales and Use Tax for Affordable Housing Resolution of Intent (PDF) 8 Packet Pg. 31 1 Sales and Use Tax for Affordable Housing RESOLUTION NO. ___________ A RESOLUTION of the City Council of the City of Kent, Washington, declaring the intent of the City Council to adopt legislation to authorize a sales and use tax for affordable and supportive housing in accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019). RECITALS A. In the 2019 Regular Session, the Washington State Legislature passed, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB 1406”). B. SHB 1406 authorizes the governing body of a city or county to impose a local sales and use tax for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of affordable or supportive housing. C. The tax will be credited against state sales taxes collected within the City and, therefore, will not result in higher sales and use taxes within the City and will represent an additional source of funding to address housing needs in the City. 8.a Packet Pg. 32 At t a c h m e n t : S a l e s a n d U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n o f I n t e n t ( 1 9 8 8 : H B 1 4 0 6 S a l e s & U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n 2 Sales and Use Tax for Affordable Housing D. Additional funding is desirable to address the City’s housing need, and the City Council has determined that imposing the sales and use tax to address this need will benefit its citizens. E. The tax must be used to assist persons whose income is at or below sixty percent of the City median income. F. In order for the City to impose the tax, within six months of the effective date of SHB 1406, or January 28, 2020, the City Council must adopt a resolution of intent to authorize the maximum capacity of the tax, and within twelve months of the effective date of SHB 1406, or July 28, 2020, must adopt legislation to authorize the maximum capacity of the tax. G. This resolution constitutes the resolution of intent required by SHB 1406, and the City Council now desires to declare its intent to impose a local sales and use tax as set forth herein. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. – Resolution of Intent. The City Council declares its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406, or by July 28, 2020. SECTION 2. – Severability. If any one or more section, subsection, or sentence of this resolution is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution and the same shall remain in full force and effect. 8.a Packet Pg. 33 At t a c h m e n t : S a l e s a n d U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n o f I n t e n t ( 1 9 8 8 : H B 1 4 0 6 S a l e s & U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n 3 Sales and Use Tax for Affordable Housing SECTION 3. – Corrections by City Clerk. Upon approval of the city attorney, the city clerk is authorized to make necessary corrections to this resolution, including the correction of clerical errors; resolution, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 4. – Effective Date. This resolution shall take effect and be in force immediately upon its passage. DANA RALPH, MAYOR Date Approved ATTEST: KIMBERLEY A. KOMOTO, CITY CLERK Date Adopted Date Published APPROVED AS TO FORM: ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY 8.a Packet Pg. 34 At t a c h m e n t : S a l e s a n d U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n o f I n t e n t ( 1 9 8 8 : H B 1 4 0 6 S a l e s & U s e T a x f o r A f f o r d a b l e H o u s i n g R e s o l u t i o n