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.
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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
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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.
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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
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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
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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
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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)
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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
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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 $274k in annexation
sales tax revenue, due to a strong construction economy.
2019 Estimated
General Fund
Revenues
Property Taxes
27%
Sales Taxes
21%
Utility Taxes
17%
B&O Taxes
11%
Other Taxes
1%
Licenses and
Permits
7%
Intergovernmental
7%
Charges for
Services
6%
Fines and Forfeits
Misc & Transfers In
3%
Other
16%
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Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 5,721 6,215 6,540
February 5,542 5,547 5,521
March 7,432 8,270 7,624
April 18,343 17,454 20,431
May 8,891 7,923 9,230
June 6,778 6,752 6,226
July 8,084 7,509 8,682
August 5,496 5,735 0
September 6,935 7,278 0
October 19,388 18,072 0
November 8,117 7,123 0
December 10,353 9,833 0
Total 111,081 107,712 64,254
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 0 10 32
February 213 225 230
March 736 953 866
April 12,768 12,204 12,268
May 1,860 2,172 2,730
June 121 158 128
July 269 111 87
August 104 110 0
September 327 591 0
October 11,934 11,603 0
November 1,432 1,589 0
December 207 251 0
Total 29,971 29,978 16,340
Prior Year
Revenues
Budgeted
Revenues
Actual
Revenues
January 1,761 1,626 2,060
February 2,045 2,037 2,485
March 1,810 1,611 2,058
April 1,604 1,564 1,788
May 2,074 1,834 2,244
June 2,019 1,618 1,765
July 2,000 1,752 2,331
August 2,152 1,966 0
September 2,066 1,808 0
October 2,056 1,811 0
November 2,261 1,983 0
December 2,851 2,162 0
Total 24,699 21,771 14,731
July 2019 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ 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
$30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
19 Bud 18 Act 19 Act
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July 2019 Monthly Financial Report
City of Kent, Washington
General Fund Revenues ($ 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
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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
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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
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2017 2018 2019 % of
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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
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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
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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
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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
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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
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Actuals
2019
Budget
2019
Est.
Actuals
Other Fund Revenues
Special
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Enterprise
Funds
Internal
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Funds
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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
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10,000,000
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30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
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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
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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
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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
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Special Revenue
Funds
Enterprise
Funds
Internal Service
Funds
Other Fund Revenues thru July
2017
2018
2019
0
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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
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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
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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.
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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
---"----{,-
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X
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2nd Quarter 2018 3rd Quarter 2018 4th Quarter 2018 1st Quarter 2019 2nd Quarter 2019
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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
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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
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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
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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
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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
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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
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ATTACHMENTS:
1. Sales and Use Tax for Affordable Housing Resolution of Intent (PDF)
8
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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.
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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.
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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
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