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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 02/02/2016 OPERATIONS COMMITTEE MINUTES February 2, 2016 Committee Members Present: Dana Ralph, Chair; Bill Boyce; and Les Thomas. The meeting was called to order by Dana Ralph at 4:05 p.m. 1. ROLL CALL. 2. CHANGE TO AGENDA. There were no changes to the agenda. 3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 1/01/2016 THRU 1/15/2016. B. Boyce moved to approve the check summary report dated 1/01/16 through 1/15/16. L. Thomas seconded the motion, which passed 3-0. 4. APPROVAL OF MINUTES DATED JANUARY 19, 2016. L. Thomas moved to approve the Operations Committee minutes dated January 19, 2016. B. Boyce seconded the motion, which passed 3-0. 5. LODGING TAX ADVISORY COMMITTEE BOARD MEMBER EXPANSION ORDINANCE - RECOMMEND. Economic and Community Development Director Ben Wolters asked members to move forward clarifying language pertaining to staggered terms in Ordinance No. 4176 which was adopted during the December 8, 2015 council meeting. The ordinance increased the number of members appointed to the Lodging Tax Advisory Committee from seven to nine members. In order to alleviate confusion concerning the terms of the two new additional members, and to remain consistent with state law, minor changes to the Kent City Code are required. It was noted that this is a house-cleaning request therefore there is no impact to the budget. B. Boyce moved to recommend City Council adopt clarifying language pertaining to term limits in Ordinance No. 4176 amending Chapter 2.54 of the Kent City Code, entitled “Lodging Tax Advisory Committee,” to increase the number of committee members from seven to nine. L. Thomas seconded the motion, which passed 3-0. 6. BUDGET CERTIFICATION FOR ANNEXATION SALES TAX CREDIT-RESOLUTION - RECOMMEND. Deputy Finance Director Barbara Lopez requested certification of the difference between Panther Lake annexation area revenues and expenditures for July 1, 2016 through June 30, 2017. Estimated costs for the annexation area for the State’s fiscal year 2016 is anticipated to be $12,792,765 to provide City services to those residents, while the City Operations Committee Minutes February 2, 2016 Page: 2 anticipates revenues of $8,028,475 from property taxes, sales taxes and other sources. The net of the revenues and costs produces a deficit of $4,764,290 which is the amount being certified as the amount of annexation sales tax credit the City is requesting from the State. This certification period is the seventh year the City will receive the annexation sales tax credit, which will expire June 30, 2020. L. Thomas moved to recommend Council approve the resolution certifying the Panther Lake annexation sales tax credit of $4,764,290 for the period July 1, 2016 through June 30, 2017. B. Boyce seconded the motion, which passed 3-0. 7. DIRECTOR’S REPORT. Finance Director Aaron BeMiller and Ms. Lopez discussed three items for the report:  Ms. Lopez discussed the City’s business license compliance efforts and the steps taken in relicensing a business and enforcing the collection of business and occupations tax (B&O). The current practice only allows a $50 fine if a business license is not relicensed in a timely manner and is difficult to enforce. The new practice is if payment is not received for a license, a correction letter followed by a notice of violation letter will be sent advising a business they have a fine of $500. Moving forward, the Finance and Law departments are working to make changes to the business license code to: clarify the language that it is not renewing rather reissuing a license; build-in different compliance steps starting with civil infractions, possible criminal offences then injunctions; lastly, reviewing business license classifications for appropriateness of different events.  Mr. BeMiller talked about the approval of an interlocal agreement between the City and Regional Fire Authority (RFA) to complete the 72nd street project. In the agreement, the RFA will pay the City $1.2 million over the next ten years. That will leave an upfront funding gap of $1.2 million to complete the project. The City will use $200,000 of interest revenue from the 2008 bond. The other $1 million would be collected from an inter-fund loan from the drainage fund. The inter-fund loan will be paid back by the earlier mentioned RFA interlocal agreement. Finance plans to recommend this to committee members at a future meeting.  Mr. BeMiller provided a quick update on closing out 2015 books. Earlier this year strategic transfers were discussed regarding the excess general fund dollars: $500,000 has been transferred to ShoWare Center operating fund to front load the repayment of the no-interest SMG loan; $500,000 paid down an additional year of the Public Works allocation payback the general fund is making to the utilities for the change in cost allocation methodology; transferred $500,000 to the other capital projects fund for strategic land purchases; and, transferred $100,000 into the facility space study project for the 2017 portion. With the revenues still coming in and expenses a bit lower than anticipated two more transfers were made for: $250,000 was transferred for the LEOFF 1 fund to Operations Committee Minutes February 2, 2016 Page: 3 replenish that fund; and, $50,000 transfer for the facility space fund for 2015 portion of the study. That said, the general fund is still expected to have a fund balance of 13 percent of the 2016 budgeted general fund expenditures. The meeting was adjourned at 4:30 p.m. by D. Ralph. J. Hays Jennifer Hays Operations Committee Secretary