HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 10/20/2015 iOGltl ■ XENC�&
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Kent City Council Workshop Minutes
October 20, 2015
The workshop meeting was called to order at 5:02 pm by Council President Ralph.
Councilmembers present: Ralph, Berrios, Boyce, Fincher, Higgins, Ranniger and
Thomas.
Council President Ralph reviewed the schedule for the meeting.
Budget — Aaron BeMiller, Finance Director highlighted that Council questions 1, 3, 5,
6, 7, and 8 from the Mid-Biennium Budget Questions/Requests sheet would be
responded to at this meeting and that the City has received updated information
concerning the City's assessed valuation.
Jeff Watling, Parks and Recreation Director replied to question 1 and reviewed with the
Council a spreadsheet highlighting what Parks capital has been budgeted and spent
over the past thirteen years.
Watling replied to an inquiry from Councilmember Thomas concerning the $2.5 million
expenditure in 2014. Councilmember Thomas also pointed out the lack of grants.
Councilmember Higgins discussed general obligation bonds and asked BeMiller when
he felt the City would be in a good position to put forth some bonds for parks. BeMiller
replied that it depends on how big of a bond because the City would have to pay it
back. He stated that over the next several years the City is in a good position because
it will be able to refund the existing bonds as was done with the 2006 bonds this year.
He stated that it all depends on revenues.
Councilmember Higgins inquired about the City's level of indebtedness and BeMiller
replied that the City is far below the debt capacity level.
Barbara Lopez added that the City's level of indebtedness was related to utilities, and
the policy is that it be no more than 20 percent of the revenues.
Watling replied to Councilmember Boyce that Parks has received $1.5 million in grant
funding in 2015. However, Watling warned that grant funds are very prescriptive and
aren't always guaranteed.
Councilmember Higgins discussed.the debt service payment under the REET section of
the spreadsheet. He inquired if the number will level off and BeMiller stated that it will
level off in time. Councilmember Higgins confirmed with BeMiller that the bond has a
twelve year term.
Councilmember Berrios thanked Watling for the spreadsheet and noted that the
situation has gotten worse.
Kent City Council Workshop Meeting Minutes
BeMiller continued and read question #3. He reviewed the five options that the City
staff came up with to fill the $863,000 budget gap.
Councilmember Berrios communicated that last year the City was excited about the
increase in permit revenues and also noted that the City is doing well this year.
Therefore, Councilmember Berrios stated that those funds could possibly be used.
However, BeMiller communicated that both permit revenues and sales tax revenues
are volatile.
BeMiller discussed question #5 concerning a prioritized list of expenditures to be cut
and replied that the City could possibly eliminate new positions and additions for 2016.
Councilmember Thomas discussed police officers and BeMiller replied that a hiring
freeze on all positions could address the funding issue.
Council President Ralph discussed the savings from freezing positions and BeMiller
replied that it would also mean overtime coming out of those savings.
Councilmember Boyce noted that these are critically needed positions and is against
freezing any positions in 2016.
Council President Ralph noted that she also doesn't agree with freezing any positions.
Councilmember Berrios also didn't favor freezing any positions in 2016. He added that
the City is clearly understaffed and staff cannot be doing overtime, especially the
police officers.
Councilmember Thomas stated that the City regularly needs eight or more police
officers and isn't in favor of freezing positions.
Councilmember Fincher inquired about sales tax and permitting and BeMiller replied
that the revenues from The Dwell and The Platform may have been considered, but
there was no way to obtain concrete numbers to be included in the budget.
Councilmember Boyce confirmed that there are new positions to be added for 2016
and asked for a list of vacant positions which Councilmember Berrios confirmed are
budgeted.
BeMiller noted that the City staff isn't recommending the utilization of fund balance to
cover the gap. He noted that using those funds would be against the City's operating
budget policy and best practices. However, if it was utilized the City would still be
within the 10 percent reserve target.
BeMiller highlighted the upcoming Kent Police Officer Association (KPOA), AFSCME, and
Teamster negotiations, a non-represented salary study, the Panther Lake sales tax
credit expiration negotiations and unknown funding issues such as streamlined sales
tax (SST) and state shared revenues which will affect the budget in the next five
years.
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Kent City Council Workshop Meeting Minutes
Councilmember Boyce confirmed with Chief Administrative Officer Matheson that the
goal of the Financial Sustainability Task Force is to come up with suggestions
concerning the future financial sustainability of the City.
BeMiller discussed question #7, to find alternative methods to fund Morrill
Meadows/YMCA and Meeker Street Place Making excluding B&O and a transportation
benefit district.
Councilmember Higgins inquired if the City could reallocate a part of the utility tax into
the General Fund and use the same amount to go into the Morrill Meadows/YMCA.
Chief Administrative Officer Matheson replied that it could be done, but it would reduce
the funding to IT, Streets, Parks and placemaking over the long term. BeMiller replied
that the City could also utilize a one-time change to the sales tax allocations to leave
the funds in the General Fund.
Councilmember Berrios agreed with BeMiller's suggestion.
BeMiller reviewed question #8 and provided the utility tax ordinance.
Council President Ralph stated that the next workshop will be on November 10.
Chief Administrative Officer Matheson discussed the budget adoption schedule and
highlighted that it may make sense to keep the November 10 workshop.
Councilmember Berrios thanked the Finance team for the presentation. He suggested
having an update on where the City is in regards to permit revenues. He also stated
that it is important to know how the City is doing with permits compared to two years
ago.
Councilmember Thomas thanked Finance for the information and stated he felt more
comfortable going forward.
2016 Business & Occupation & Residential Street Repair Proiect List — Tim
LaPorte, Public Works Director highlighted the B&O and Residential projects completed
in 2015. He specifically reviewed the Central Avenue Improvements Project and what
the status was. He communicated that the City is making a lot of progress on
sidewalks within the City.
Councilmember Thomas thanked LaPorte for the work on 1091" Avenue. He inquired
about the guardrail on 277`" and LaPorte responded that it is located in Kent city
limits.
Councilmember Berrios inquired about James Street and the tree stumps and verified
that they would be removed. He added that there was a community meeting about the
work on James Street and isn't clear on what the plan is. LaPorte noted that the plan
will be brought back to the community concerning shrubs there. He added that the
area is currently being irrigated and the plan will be vetted within the next couple of
months.
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Kent City Council Workshop Meeting Minutes
LaPorte continued and reviewed the projects under the 2016 Proposed Utilization of
Business and Occupation Funds plan.
Council President Ralph confirmed which projects were being done through contract
and in-house street services.
Council President Ralph confirmed that the signage replacement federal mandate is for
all the City's street signs to be replaced by 2018.
LaPorte replied to Councilmember Boyce and noted the Mayor's Office will be
generating a communication to the business community on how the B&O Funds are
being utilized.
Councilmember Berrios agreed with Councilmember Boyce and suggested that there
be something generated on the City's website which notes how the B&O funds were
expended in 2015 and what projects are on tap for 2016.
Councilmember Higgins suggested that there be a link on the B&O payment webpage
on what the funds have been used for and future projects.
LaPorte noted that the City has received a non-matching grant to get all of the flashing
left turn arrows and fiber optics connected.
Councilmember Berrios confirmed that there aren't any additional items that would
need to be installed under the pavement on James Street.
LaPorte reviewed the 2016 Proposed Utilization of Residential Street Maintenance and
Repair Funds list.
Councilmember Berrios confirmed that Highland Meadows around 124th isn't on the list
and it is an area that really needs to be addressed. LaPorte communicated that that
street is two years out from being addressed and costs about $2.5 million.
Councilmember Fincher thanked Public Works for the work done on Military Road.
Meeting adjourned at 6:34 pm.
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Ronald F. Moore, MMC
City Clerk,/<
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