HomeMy WebLinkAboutCity Council Committees - Operations Committee - 06/06/2017Operations Committee
Minutes
Approved June 20, 2017
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Date: June 6, 2017
Time: 4:00 p.m.
Place: Chambers East
Attending: Les Thomas and Dana Ralph, Chair; Bill Boyce was absent
Agenda:
1. Call to Order.
2. Roll Call.
3. Changes to the Agenda.
There were no changes to the agenda.
4. Approval of Check Summary Reports dated 4/16/2017 thru
4/30/2017 and 5/01/2017 thru 5/15/2017.
L. Thomas moved to approve the check summary report dated 4/16/2017
thru 4/30/2017 and 5/01/2017 thru 5/15/2017. D. Ralph seconded the
motion, which passed 2-0.
5. Approval of Meeting Minutes dated May 2, 2017.
L. Thomas moved to approve the Operations Committee meeting minutes
dated May 2, 2017. D. Ralph seconded the motion, which passed 2-0.
6. Amendment to KCC 3.40.040 - Interfund Loans - Recommend.
Finance Director Aaron BeMiller asked to amend the previously discussed debt
management policy. The updates include changes to the process and
requirements for the City to stay compliant when using interfund loans as a
funding tool.
The three significant changes to Kent City Code section 3.40.040 Interfund
Loans include:
delegation of interfund loan approval to the finance director for loans
not longer than three calendar months and the Mayor for loans not
longer than twelve calendar months,
the requirement of an analysis of the loaning fund(s) to indicate that
excess funds are available and the use of those funds will not impact the
loaning fund’s current operations or constitute a permanent diversion of
funds, and
eliminates the loan duration restriction.
Operations Committee
Minutes
Approved June 20, 2017
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In general, interfund loans can be a more cost effective means to fund capital
items and is usually much quicker when done in-house.
L. Thomas moved to recommend Council adopt an ordinance that amends
Kent City Code 3.40.040 to update the City’s interfund loan policies and
procedures, and to delegate to the Finance Director and the Mayor approval of
certain short-term interfund loans without council action. D. Ralph seconded
the motion, which passed 2-0.
7. April Financial Report – Information Only.
Mr. BeMiller reported an overall positive budget variance of $1.7 million. The
2017 budget reflects an expected use of $2.4 million of fund balance, including
$2 million for Parks capital projects. The budgeted use of fund balance is offset
by the positive budget variance of $1.7 million, reducing the estimated actual
use of fund balance to less than $700,000. General Fund Reserves are
estimated to end the year at $16.4 million, or 17.0 percent.
The following highlights were reported:
Revenues are estimated to end the year at nearly $1.7 million (1.6 percent)
higher than budgeted while miscellaneous revenues are estimated to come in
$330,000 higher than budgeted.
Expenditures through April show all departments are remaining fairly close to
budget.
8. Director’s Report – Information Only.
Mr. BeMiller’s final update included information on two topics, they are:
The June 20 fiscal cliff workshop discussion will be used to roll-out the 2018
budget process. Finance staff will be organizing meetings with Mayor Cooke
and Chief Administrative Officer Derek Matheson to discuss where the City is
at. While 2018 is a mid-biennium adjustment year it is not expected to be easy
with work to be done.
The State Auditor’s Office (SAO) has been on-site conducting the 2016 annual
audit. A conversation has been scheduled with the SAO to discuss the
treatment used on the 2016 refunding with the elimination of the Public
Facilities District sales tax debt and transferring it to the City. There is a
difference of opinion of how it should be accounted for.
Operations Committee
Minutes
Approved June 20, 2017
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13. Adjournment.
The meeting was adjourned at 4:21 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary