HomeMy WebLinkAboutCity Council Committees - Operations Committee - 10/18/2016
OPERATIONS COMMITTEE MINUTES
October 18, 2016
Committee Members Present: Chair Dana Ralph, Bill Boyce, and Les Thomas.
The meeting was called to order by Dana Ralph at 4:01 p.m.
1. ROLL CALL.
2. CHANGES TO THE AGENDA.
There were no changes to the agenda.
3. APPROVAL OF THE CHECK SUMMARY REPORT DATED 9/16/2016 THRU
9/30/2016.
L. Thomas moved to approve the check summary report dated 9/16/2016 thru
9/30/2016. B. Boyce seconded the motion, which passed 3-0.
4. APPROVAL OF MINUTES DATED OCTOBER 4, 2016.
B. Boyce moved to approve the Operations Committee minutes dated October 4, 2016. L.
Thomas seconded the motion, which passed 3-0.
5. 2017 STATE LEGISLATIVE AGENDA - RECOMMEND.
Community and Public Affairs Manager Michelle Wilmot and Legislative Lobbyist Doug Levy
asked members to move forward the City’s legislative agenda. Kent partners with the
State in the delivery of critical services such as criminal justice, community and human
services, flood protection and other services.
High-profile priorities discussed for 2017 include:
The protection of Streamlined Sales Tax payments and other state-shared
revenues, with a combined annual impact of approximately $10 million.
Providing needed infrastructure improvements necessary to help secure a YMCA on
Kent’s East Hill.
Retaining the jobs and economic benefits derived by the presence of the corporate
headquarters of Blue Origin.
L. Thomas moved to recommend Council to adopt the City of Kent’s 2017 State
Legislative Agenda. B. Boyce seconded the motion, which passed 3-0.
6. 3RD QUARTER PROCUREMENT REPORT – INFORMATION ONLY.
Chief Administrative Officer (CAO) Derek Matheson reported on the third quarter
procurement report; there were no significant highlights discussed.
7. AUGUST FINANCIAL REPORT – INFORMATION ONLY.
Finance Director Aaron BeMiller reported overall the City is in line with what was reported
for the July report. Analysis through August show both revenues and expenditures ending
Operations Committee Minutes
October 4, 2016
Page: 2
the year favorable compared to budget, creating an overall positive variance amount of
$3.2 million. The current estimated ending fund balance reserves for 2016 calculates to
15.9 percent of estimated 2016 expenses. The following highlights were reported:
Revenues are estimated to end the year at nearly $4.1 million or 4.6 percent higher than
budgeted. Most of the City's major revenue sources show positive variances compared to
budget, including sales tax ($695,000), licenses and permits ($507,000),
intergovernmental revenue ($518,000) and B&O ($1.6 million). This is offset by
unfavorable variances compared to budget for other taxes ($150,000) and fines and
forfeitures ($44,000).
Through August, all departments are remaining fairly close to budget.
8. DIRECTOR’S REPORT – INFORMATION ONLY.
Mr. BeMiller and Accounting and Reporting Manager Lavina Brennecke discussed a couple
of topics:
Ms. Brennecke provided an update to the Department of Revenue’s excise tax
audit, in which the City files excise tax returns monthly. The audit findings were
extremely positive, so positive the City is getting a credit from the State for over
paying taxes in a higher tax bracket. The second part of the audit is in regards to
sales and use tax on goods purchased. With the trust of the State, Kent was
allowed to do a managed audit. Out of 450 items from 2012 – 2014, there was only
one error found.
Mr. BeMiller discussed the investment policy. The City is moving forward with hiring
PFM Asset Management who will take over the management of city investments.
PFM has already substantially added to the current investment policy keeping within
the robust changes to state law to what public entities can invest in. Later this year,
PFM’s Asset Management Liaison will present to committee members about who
they are and what they do. Later, the new investment policy will be forwarded to
the Washington Public Treasurer Association for review and certification.
The meeting was adjourned at 4:50 p.m. by D. Ralph.
J. Hays
Jennifer Hays
Operations Committee Secretary