HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 10/17/2017Kent City Council Workshop October 17, 2017
Minutes Kent, Washington
Pending Approval
Date: October 17, 2017
Time: 5 p.m.
Place: Council Chambers East/West
Attending: Bill Boyce, Council President
Tina Budell, Councilmember
Jim Berrios, Councilmember
Brenda Fincher, Councilmember
Dennis Higgins, Councilmember
Dana Ralph, Councilmember
Les Thomas, Councilmember
Council President Boyce opened the meeting at 5:04 p.m.
Agenda:
1. 2018 Mid-Biennium Budget Adjustment Review Aaron BeMiller
Aaron BeMiller, Finance Director, advised that this is the 1st workshop on the mid-
biennium budget adjustment. Aaron provided information as follows:
A. Property Tax – Banked Capacity - EHB 2242 – State School Levy
Changes
Aaron BeMiller reviewed the General Fund 6-Year Forecast that includes the loss of
streamline sales tax mitigation beginning in July 2019; an allowance for three new
police positions and one other General Fund position that will begin in 2019; sales
tax revenues over $2.5m shifted from the Capital Resources Fund beginning in
2019; continuance of the 2% internal utility tax; use of banked property tax
capacity; and an additional $500,00 in revenues from marijuana and card rooms
beginning in 2019.
Aaron BeMiller provided details regarding the use of banked capacity and impacts to
Kent residents regarding property tax assessed valuation and levy rates, including
implications from EHB 2242.
Derek Matheson, Chief Administrative Officer, provided details regarding the
legislative action adopting a new tax on remote sales. Derek indicated the
Legislature has provided for a study and the City will work with Doug Levy, the
City’s lobbyist, along with the Association of Washington Cities and Department of
Revenue to ensure that Kent is the leader in the study, in an effort to save our
sales tax mitigation.
B. Square Footage Tax Increase – Mayor addressed in her budget
message – Aaron BeMiller, Finance Director, provided information on the square
footage tax analysis, that included: a background on the implementation of the
City’s B&O Tax on January 1, 2013; the fact that most B&O taxes are generated
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Kent City Council Workshop October 17, 2017
Minutes Kent, Washington
Pending Approval
outside of Kent; and taxes collected are disproportionate to revenues needed to
provide essential City services. Aaron BeMiller provided the square footage tax
analysis, including the impact of doubling square footage tax and uses for additional
revenues. Aaron also reviewed the local business tax rates for Washington cities
obtained from the Association of Washington Cities.
C. External Utility Tax Increase – Mayor addressed in her budget
message – Increase from 6%-8%. Aaron BeMiller provided examples of
estimated annual increases to a businesses and residences. Aaron indicated that
internet charges are excluded since they are not subject to utility tax. Aaron
provided an overview of the increase to property taxes that includes the use of
banked capacity and an external utility tax increase.
D. Communications Specialists. Derek Matheson advised that the
2017-2018 adopted budget included the formation of Communications Department
with the addition of a new director. The plan was to merge the Communications
Department with the Multi-media Department. Since adoption, fiscal cliff issues
arose and the Mayor proposed rolling back the Communications Department
request. The new proposal is to keep Communications in the Mayor’s office, and
the Multi-media Department will remain in the Information Technology Department.
Instead of hiring a department director, the City would hire a Communications
Specialist that would focus on the tactical aspects of communications. The
Community and Public Affairs Manager would focus on strategies.
Derek provided a detailed list of duties for the Community and Public Affairs
Manager and Communications Specialist positions. The Community and Public
Affairs Manager position is currently vacant.
2. YMCA Funding – Included in Mayor’s proposed budget – Aaron reviewed
the proposed funding sources.
3. Potential Quiet Zone Funding – From the Public Works Committee
Aaron BeMiller indicated the proposed funding for the Quiet Zone will include funds
from the 2017-2018 Street Capital Budget, General Fund reserves over 18%, and
the Capital Resources Fund. Aaron provided details regarding the impact to the
Capital Resources Fund.
Council President Boyce requested that additional details regarding the increase of
the cost from $2m to $3m will be provided.
Aaron provided the following upcoming dates of note:
• Council Workshop (Special meeting) on November 14th
• Council Workshop – Final Decisions on November 21st
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Kent City Council Workshop October 17, 2017
Minutes Kent, Washington
Pending Approval
• Operations Committee – Budget Review and Recommendation on December
5th
• Council Meeting – Adoption of the 2018 Property Tax Levy and Adoption of
the 2018 Budget Adjustment on December 12, 2017.
The meeting concluded at 6:08 p.m.
Kimberley A. Komoto
City Clerk
October 17, 2017
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