HomeMy WebLinkAboutCity Council Committees - Operations Committee - 03/21/2017Operations Committee March 21, 2017
Minutes Kent, Washington
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Date: March 21, 2017
Time: 4:04 p.m.
Place: Chambers East
Attending: Bill Boyce, Les Thomas, and Dana Ralph, Chair
Agenda:
1. Call to Order.
2. Roll Call.
3. Changes to the Agenda.
There were no changes to the agenda.
4. Approval of the Check Summary Reports dated 2/16/2017 thru
2/28/2017.
L. Thomas moved to approve the check summary report dated 2/16/2017
thru 2/28/2017. B. Boyce seconded the motion, which passed 3-0.
5. Approval of Minutes dated March 7, 2017.
B. Boyce moved to approve the Operations Committee minutes dated March 7,
2017. L. Thomas seconded the motion, which passed 3-0.
6. Consolidating Budget Adjustment Ordinance for Adjustments between
December 1 and December 31, 2016 - Recommend.
Finance Deputy Director Barbara Lopez asked members to approve a
consolidating budget adjustment ordinance to increase the 2016 budget. The
$3,693,440 consists of three different transactions:
2,517,160 – debt service on the 2016 refunding debt
$1,100,000 – additional Business and Occupation (B&O) taxes received
(to be transferred to the Capital Resources Fund)
$76,280 – payment for Transit Now obligation to King County
It was emphasized that no additional monies are being spent as these
expenditures are mostly budget transfers. For final approval, it was on the
consent calendar during the March 21, 2017 City Council meeting.
L. Thomas moved to recommend Council approve the consolidating budget
adjustment ordinance for adjustments made between December 1 and 31,
2016, reflecting an overall budget increase of $3,693,440. B. Boyce
seconded the motion, which passed 3-0.
7. City Investment Report - Information Only.
Operations Committee March 21, 2017
Minutes Kent, Washington
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Finance Director Aaron BeMiller and Senior Financial Analyst Joe Bartlemay
discussed two items with members, they are:
The first item was a summary on the fourth quarter investment report
for 2016. As of December 31, 2016 the City’s total investments were
$120,230,927. Of that amount $100,043,099 is the State Local
Government Investment Pool; $20,187,828 is other investments made
over the last couple of years; the average rate of return is 1.385
percent, and; the average years to maturity is 1.68 years.
The second item discussed was about the hiring of PFM Asset
Management and TVI Investments and how the City has made changes
to the way Finance will process/report investments starting 2017. At the
end of this year, the two competing companies’ performance will be
measured by their annual average yield, reporting, communication and
education processes.
8. Director’s Report – Information Only.
Mr. BeMiller provided additional information on three separate items, they are:
The City’s 2016 year-end process should be complete by the end of
March. A preliminary meeting has been set-up with the Washington
State Auditor’s Office for finance staff to go over the audit plan for both
financial and accountability. The start date should be around mid-April
and will run through September 2017 with a final report submitted 150
days later.
At the close of February 2017, the City’s total citywide cash and
investments was reported to be $142.5 million. In comparison, at the
close of February 2013 the City had $43.9 million in total cash and
investments; a significant 225 percent increase over that last four years.
At the close of February 2017, the City’s general fund had $15.2 million
in total cash and investment while 2013 reports were -$1.6 million.
During the March 7 Operations Committee meeting, members approved
new language for the City’s investment policy. In accordance with that
approval, the debt manual is near completion and should be finalized
late April or early May. One of the highlights of the manual is debt
management policy. Resolution #1882 was adopted in 2014 by Council
which has information included in the budget book that has the look of a
debt policy but isn’t policy driven. Finance is working on a debt policy
that will be brought to Operations in the next month.
At the beginning of 2015, Finance made a request to hire staff to aid in
the collection of B&O taxes. As a result of hiring staff, $9 million has
been collected so far, a $3 million increase from 2015.
Operations Committee March 21, 2017
Minutes Kent, Washington
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13. Adjournment.
The meeting was adjourned at 4:22 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary