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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 08/07/2018 Page 1 of 3 Approved Operations Committee CC Ops Regular Meeting Minutes August 7, 2018 Date: August 7, 2018 Time: 4:00 p.m. Place: Chambers East Attending: Les Thomas, Committee Chair Bill Boyce, Councilmember Dennis Higgins, Councilmember Toni Troutner, Councilmember Agenda: 1. Call to Order 4:00 p.m. 4:00 PM 2. Roll Call Attendee Name Title Status Arrived Les Thomas Committee Chair Excused Bill Boyce Councilmember Present Dennis Higgins Councilmember Present Toni Troutner Councilmember Present 3. Changes to the Agenda None 4. Approval of Minutes dated July 17, 2018 MOTION: Move to approve the Minutes dated July 17, 2018 RESULT: APPROVED [UNANIMOUS] MOVER: Dennis Higgins, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Higgins, Troutner 5. Approval of Check Summary Report dated 7/1/2018-7/15/2018 MOTION: Move to approve the check summary report dated 7/1/2018-7/15/2018 RESULT: APPROVED [UNANIMOUS] MOVER: Toni Troutner, Councilmember SECONDER: Dennis Higgins, Councilmember AYES: Boyce, Higgins, Troutner 6. Consolidating Budget Adjustment Ordinance for Adjustments between January 1, 2018 and June 30, 2018 - Adopt Operations Committee CC Ops Regular Meeting Minutes August 7, 2018 Kent, Washington Page 2 of 3 Deputy Finance Director Barbara Lopez requested the council approve the consolidating budget adjustment ordinance for adjustments made between January 1, 2018 and June 30, 2018, reflecting an overall budget increase of $11,145,837. Of that amount, $5,065,397 was previously approved by council. It was noted that typically these are done quarterly however, this one is for the first half of this year. Adjustments totaling $6,080,440 not previously approved by Council include: $4,118,880 for the use of previously collected Transportation Impact Fee monies; $2,000,000 transfer of General Fund reserves to the Health Care/Benefits Fund and Capital Resources Fund; $35,000 for temporary Facilities staff; $21,820 use of ECD downtown strategic action plan monies to fund downtown place making projects and art; and net reductions of $(8,150) for liability insurance and $(87,110) for adjustments related to the non-rep salary survey. Councilmember Higgins moved to recommend Council approve the consolidating budget adjustment ordinance for adjustments made between January 1, 2018 and June 30, 2018, reflecting an overall budge t increase of $11,145,837. Councilmember Troutner seconded the motion which passed 3- 0. MOTION: Adopt Ordinance No. ____, approving the consolidating budget adjustments made between January 1, 2018 and June 30, 2018, reflecting an overall budget increase of $11,145,837. RESULT: RECOMMENDED TO COUNCIL [UNANIMOUS] Next: 8/21/2018 7:00 PM MOVER: Dennis Higgins, Councilmember SECONDER: Toni Troutner, Councilmember AYES: Boyce, Higgins, Troutner 7. 2018-2019 Property Insurance Program Review - Info Only Risk Manager Chris Hills reviewed the property insurance program and premium history. Property insurance renewal was July 1 and the premium remains within the projected budget. 8. June Financial Report - Info Only Finance Director Aaron BeMiller presented an overall positive budget variance of $3.9 million. General Fund Reserves are estimated to end the year at $22.3 million and Revenues are estimated to end the year approximately $3.3 million (3.2%) higher than expected. Proposed plans are to move about $1 million of the excess fund balance to the LEOFF 1 long-term care fund to help cover required expenses, and an additional $250,000 to the Wellness Fund to ensure that we are in accordance with state law on reserves in that fund. Operations Committee CC Ops Regular Meeting Minutes August 7, 2018 Kent, Washington Page 3 of 3 Through June, all departments are remaining fairly close to budget with an overall favorable budget variance of $573,000, or 0.5%. 9. Director's Report - Info Only Finance Director Aaron BeMiller provided an overview of the citywide debt, the annual status of interfund loans and noted special recognition to Angie Fealy, Cheryl Lopez, Dan Leahy and Lavina Brennecke for preparation of the Debt Manual. BeMiller touched on Limited Tax General Obligation Bonds, Longterm Notes and Revenue Debt from the Debt Manual and then discussed in more depth the City's Interfund Loans. Discussion included a question from Council President Boyce and follow-up by Councilmember Higgins regarding the LED lighting project and whether we are realizing a cost savings on utility bills that is equal to the cost of the interfund loan. BeMiller indicated he will need to get the answer to that question and report back next month. An additional question was raised by Councilmember Higgins whether there is a limit to what can be taken out from a trust fund and whether we are close to that limit. BeMiller will get the answer and report back next month. 10. Adjournment 4:44 p.m. The meeting was adjourned at 4:44 by Council President Boyce. Cathie Everett Committee Secretary