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HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 07/13/2018Special Kent City Council Workshop Minutes July 13, 2018 Kent, Washington Approved August 7,20L8 Date: July 13, 2018 Time: 1:30 p.m. Place: The Platform Apaftments - Rooftop Meeting Room Attending: Mayor Dana Ralph Bill Boyce, Council President Brenda Fincher, Councilmember Dennis Higgins, Councilmember Satwinder Kaur, Councilmember Marli Larimer, Councilmember Toni Troutner, Councilmember Staff Attending:Derek Matheson, Chief Administrative Officer Aaron BeMiller, Finance Director Mike Carrington, Information Technology Director Pat Fitzpatrick, City Attorney Kurt Hanson, Economic and Community Development Director Tim LaPorte, Public Works Director Dana Neuts, Communications Manager Rafael Padilla, Police Chief Julie Parascondola, Parks Director Mary Fisher, Human Resources Director Margaret Yetter, Court Administrator Kim Komoto, City Clerk Council President Boyce opened the meeting at 1:30 p.m., made opening comments, and advised that the desired outcome of today's meetíng is to provide the Mayor and leadership team clear direction in preparing the budget. Mayor Ralph provided opening comments regarding her commitment to take this budget journey together and that today's conversations will be the foundation of what the budget is developed from. Mayor Ralph provided a review of where we are at now regarding B&O Tax and the long process to develop options, keeping in mind the reinvisioning of the Kent Industrial Valley that includes moving away from warehousing. Aoenda: Aaron BeMiller provided details on the presentation materials províded to attendees that included information regarding : 1. How we got here?o 2009 Streamline Sales Tax Mitigation. 2010 Annexation Sales Tax Credito 2OLO-2018 Structural Imbalance Page 1 of 3 Special Kent City Council Workshop Minutes July 13, 2018 Kent, Washington Approved August T, ZOLS 2. Actions taken to date¡ Started talking about the fiscal cliff early. Conservative budgeting approach. Refunding existing debt to reduce rateso Restructured debt payments. Building fund balances/updating policies. Levied full allowable property tax 3. 20L9-2O20 Budget Assumptions Revenue that includes property, sales, utility, B&O, and real estate excise taxes. Expenditures that include salary COLA, health plans, retirement, supplies, and services. 4. 2020 Target Impacts Reduction target impacts per departments. There are no reductions to public safety. Reductions to staff will also include reductions to services. 5. High Level Assumptions:. Sales Tax to General Fund beginning in 202t. 2o/o Internal Utility Tax beginning in 2O2L. Move eligible costs to Criminal Justice Fund beginning in 202L. Reduce Street Fund subsidy beginning in 2023. Eliminate 4o/o Internal Utility Tax to Capital Resource Fund in 2028. Phase in $12m in new B&O revenues beginning in 2O2O. 3 Additional officers per year through 2029. No other new positions or expenditureso Consistent revenue growth 6. 20t9-2O33 Forecast Includes:. $12 million in new revenues. No Streamline Sales Tax revenues. Department Expenditure Reductions. 3 Police positions per year through 2029. Consistent Revenue Growth. No new positions or other expenditures Discussion occurred regarding the current state of streamline sales tax mitigation and property tax revenues. 7. B&O Increase BeMiller reviewed a handout regarding examples of the impacts of increasing B&O Tax rates by category and year. The proposed rates were developed in consultation with the Mayor and Economic and Community Development Director. Page 2 of 3 Special Kent City Council Workshop Minutes July 13, 2018 Kent, Washington Approved August T, ZOLS BeMiller provided AWC's local B&O Tax rates per city. 8. B&O Tax Hypothetical Impacts Discussion occurred regarding the process that went into coming up with the various changes to the B&O taxes. Council expressed concerns over making reductions to staff when the City is already running lean. Councilmembers all expressed their support of raising B&O Taxes as presented. Mayor Ralph and the Councilmembers will all work to communicate to the legislators the need to restructure streamline sales tax and property taxes. Council expressed their appreciation of Mayor Ralph for including them in this budget process. Mayor advised of the next steps including individual budget meetings with departments and drafting a balanced budget that will be presented to the Council during the special city council meeting scheduled for September 25,2018. The m.eeting conclud at :03 p.m. û Kimberl Komoto City Clerk July 13, 2018 Page 3 of 3