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
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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.
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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
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