HomeMy WebLinkAboutCity Council Meeting - City Council Workshop - 10/01/2024 (2) Approved
City Council Workshop
• Workshop Regular Meeting
KENT Minutes
WAS M IN G 7 0 N
October 1, 2024
Date: October 1, 2024
Time: 5:15 p.m.
Place: Chambers
I. CALL TO ORDER
Council President Kaur called the meeting to order.
Attendee Name Title Status Arrived
Satwinder Kaur Council President Present
Bill Boyce Councilmember Present
John Boyd Councilmember Present
Brenda Fincher Councilmember Present
Marli Larimer Councilmember Present
Zandria Michaud Councilmember Present
Toni Troutner Councilmember Present
Dana Ralph Mayor Present
H. PRESENTATIONS
1 2025-2026 Biennial Budget Paula Painter 45 MIN.
Finance Director, Paula Painter walked the Council through the Mayor's
Proposed 2025-26 Biennial Budget relating to the Special Revenue,
Enterprise, and Internal Service Funds, in addition to B&O Tax.
Changes to the Special Revenue Funds include:
• Street operating fund reduced - due to debt being paid off in that fund.
• LEOFF 1 retirees benefit account - reduced significantly due to fund having
high budget and not spending at that budget.
• Lodging Tax - reduced due to prior adjustments to grants.
Capital Resources Fund reduced due to allocation out to KEHOC - $5M for
reinvestment.
City Arts Program - reduced - Part of $2 per capita is allocated in general
fund.
ShoWare Operating Fund - Received the Shuttered Venue Operating Grant in
2021. Those funds have been used for some of the capital projects and used
to support the operating budget. This budget is truing up for funds needed
cover the increased operating costs.
City Council Workshop Workshop Regular October 1, 2024
Meeting Kent, Washington
Minutes
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Special Revenue Funds - Major Revenue Changes
Street Operating General Fund Subsidy - decrease to due debt service being
paid off.
Capital Resources Fund
Increases in property tax.
Streamline Sales Tax - going away after receiving June 2026 payment.
Criminal Justice Fund
Decline in school zone camera revenue.
Red Light Camera Fund -truing up to current revenues.
Special Revenue Major expenditure changes
Street Operating
GIS allocation - The City now has data to properly allocate costs.
Extend Civil Engineer Design Position
Capital Resources Fund
Covert GIS Analyst III position to permanent
Transfers Out:
Roundabout Project Design - 116th Ave SE and SE 248th
East Hill North Community Park Roadway Improvements
Property Abatement
KEHOC Parks - Project Contribution
JDE Replacement
Criminal Justice Fund
Continue Car Per Officer Program
Shift 75% of Resource Coordinator position to Opioid Funding
Crime Fighting Technology
Drone Replacement
FUSUS Crime Center
Human Services Fund
Shift General Fund expenditures to Human Services Fund
Project Be Free
Opioid Funds Allowable Uses
At least 70% of funding awarded to states and localities must be spent on
"opioid remediation efforts" defined in the settlement agreement as "Care,
treatment, and other programs and expenditures (including reimbursement
for past such programs or expenditures except where this Agreement
restricts the use of funds solely to future Opioid Remediation) designed to:
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Page 2 of 4
City Council Workshop Workshop Regular October 1, 2024
Meeting Kent, Washington
Minutes
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(1) address the misuse and abuse of opioid products,
(2) treat or mitigate opioid use or related disorders, or
(3) mitigate other alleged effects of, including on those injured as a
result of, the opioid epidemic."
Painter reviewed the estimated revenue and expenses anticipated over the
next 17 years.
Enterprise Funds
Water /sewer/drainage - additional funds contributing to the KEHOC project.
Solid Waste - 2024 had carryforward balance.
Golf Complex - increase due to temps and OT.
Major Revenue Changes
Increase water/sewer/drainage based on 3.6% adjustment for CPI-W &
minor adjustments for volume.
Sewer - increase by $2.8M - 3.6% increase for Kent + 5.75% increase from
King County.
Golf Courses - increases in green and range fees.
Major Expenditure changes
Water utility transfer out to KEHOC
Sewer - transfer out to KEHOC project and pass through to King County.
Major Expenditure Changes
Drainage Utility:
Maintenance Worker II
Excavator
Flood Plain Certification Engineer Allocation
Transfer out to KEHOC project.
Utility Clearing:
Meter Reader II
Internal Service funds
Painter detailed the changes to:
• Fleet Services
• Central Stores
• Information Technology
• Multimedia
• Facilities
• Unemployment
• Workers Compensation
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Page 3 of 4
City Council Workshop Workshop Regular October 1, 2024
Meeting Kent, Washington
Minutes
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• Health & Employee Wellness
• Liability Insurance
• Property Insurance
Major Revenue changes
Information Technology fund:
Department Contributions
Transfer in for Cable Utility Tax
Facilities Fund:
Department Contributions
Department contributions for Workers Compensation, Liability & Property
Insurance.
Major Expenditure Changes
Fleet Services
Information Technology
Facilities Fund
Workers Compensation and Liability Insurance
For the Workers Comp Fund, Painter reviewed the beginning working capital,
total revenues, expenses, net income, ending working capital and target
ending working capital for the years 2021-2026.
Average program expenditures increases were detailed:
2021-2023 = 23%
2022-2024 = 12%
2023 - 2024 = 5%
B&O Tax
This budget will enact increase from $.036 to $.048 per square foot and
increase manufacturing rate from $.001 to $.00125.
Painter reviewed the various scenarios relating to increases to B&O Tax
maximum and other caps.
Council discussed various scenarios, supported Option D and would like more
information on how the budget would change if the Maximum Cap was raised
to $25M.
Meeting ended at 6:06 p.m.
Kt*n�ley A. Kam otcr
City Clerk
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Page 4 of 4
l IF
MAYOR'S PROPOSED 202S=26
BIENNIAL BUDGET
COUNCIL
00, WORKSHOP
" Kent OCTOBER 19 2024
. OVERVIEW OF
OTHER FUNDS BUDGETS
LIlr
" GENDA
• Special Revenue Funds
• Opioid Settlement Funds
• Enterprise Funds
• Internal Service Funds
• Workers Comp Fund
• B&O Tax
• Timeline
Budget Book Page 44
SPECIAL REVENUE FUNDS
:I & 2024 2025 F ,
t • Budget Proposed.. 1 • d
Street operating $ 21 ,473,100 $ 21321,220 $ 21,179,130
LFOFF 1 Retiree Benefits I M 2,800 11212,320 1 ,236,520
Lodging Tax 304,230 29000 295,020
Youth/Teen I J 12,240 1 ,158,500 1 ,199,790
Capital Resources 36/676/380 281084,650 25/600/480
Criminal Justice 13,871,330 14/128/930 14,450320
Human Services 8,214,070 8,233380 8308570
City art Program 110,3 30 104,620 100,600
ShoWare operating 1 /928/620 2/554/910 2/607/600
PROPOSED 1
Budget Book Page 46
SPECIAL REVENUE FUNDS
MA30R REVENUE CHANGES
Changes Changes
Street Operating
General Fund Subsidy $ 171,440 $ �418,3607
Capital Resources Fund
Property Tax Revenue 359,810 364,530
Streamline Sales Tax (416,1 10) (924,690)
Criminal Justice Fund
School Zone Camera Revenue (312,280)
Red Light Camera Revenue 701,630
Total Revenues $ 171,440 $ (418,360)
Budget Book Page 46
SPECIAL REVENUE FUNDS
MA,30R EXPENDITURE CHANGES
202S Proposed 2026 Proposed
Changes Changes
FTE Amount FTE Amount
Street Operating
GIS Allocation $ (315,360) $ (21,150)
Extend Civil Engineer Designer 1 Position 162,380 172,430
Capital Resources Fund
Convert G I S Analyst III Position to Permanent 87,180 160,070
Transfers Out:
Roundabout Project Design (116th Ave 5E and 5E 248th Street) 150,000 150,000
East Hill North Community Park Roadway Improvements 1,500,000
Property Abatement 200,000 200,000
KEHOC Project - Parks Contribution 600,000
JDE Replacement 500,000 1,000,000
PROPOSED1
Budget Book Page 46
SPECIAL REVENUE FUNDS
MA30R EXPENDITURE CHANGES
Criminal Justice Fund
Car per Officer Program 261,380 267,910
Shift 75% of the Resource Coordinator position to Opioid Funding 90,340 96,740
Crime Fighting Technology
Drone Replacement 70,000 70,000
FUSUS Crime Center 150,000 150,000
Human Services Fund
Shift GF Expenditures to Heiman Services Fund 225,000 225,000
Project Be Free 185,000 185,000
Offset by use of Available Budget Lines (410,000) (410,000)
Total Expenditures 0.0 $ 3,455,920 0.0 $ 2,246,000
opioir - WABLF r
At least 70% of funding awarded to states and localities must be
spent on "opioid remed iation efforts" defined in the settlement
agreement as "Care, treatment, and other programs and
expenditures (including reimbursement for past such programs
or expenditures except where this Agreement restricts the use
of fu nds solely to futu re Opioid Remed iation) desig ned to:
(1 ) address the misuse and abuse of opioid products,
(2) treat or mitigate opioid use or related disorders, or
(3) mitigate other alleged effects of, including on those
injured as a result of, the opioid epidemic."
OP101D FUNDS
FF Proposed Budget Forecast
'022 2023 2024 2025t t i2035-2038
Revenues
Actual 86,151 271,896 444,546
Projected 173,586 142,479 147,034 94,847 168,745 691,559 348,566
Total Estimated Revenues 86,151 271,896 444,546 173,586 142,479 147,034 94,847 168,745 691,559 348,566
Expenditures
10%oAC Admi n Fee 62,471 17,359 14,248 14,703 9,485 16,875 69,156 34,857
75%of Resource Coordinator 90,340 96,740 104,000 111,800 120,190 750,460 829,690
Supplies -Community Court 10,080 15,000 15,000 15,300 15,610 15,920 84,490 73,870
Total Estimated Expenditures 72,551 122,699 125,988 134,003 136,895 152,985 904,106 938,417
Revenues Less Expenditures 86,151 271,896 371,996 50,888 16,491 13,031 (42,048) 15,761 (212,547) (589,850)
Estimated Cumulative Balance 86,151 358,047 730,043 780,930 797,421 810,452 768,405 784,165 571,619 (18,232)
Received to Date: $802,594
Expended to Date: $4,495
Budget Book Page 47
ENTERPRISE FUNDS
A 1 Budgli
Proposed.. Proposed.—
Water Utility $ 36,223,510 $ 40,845,780 $ 36,920,840
Seger Utility 40,739,160 43,945,170 44,744,910
Drainage Utility 29,122,550 31 ,868,490 28,778,010
Solid baste Utility 11252,060 990,730 11028,950
Golf Complex 3/315/750 3/735/670 3/890/820
Budget Book Page 48
ENTERPRISE FUNDS
MA,OR REVENUE CHANGES
Water Utility
Water Sales Baseline/Volume Adjustment $ 1,198,460 $ 711,630
Sewer Utility
Sewer Services Baseline/Volume Adjustment 2,813,720 961,960
Drainage Utility
Drainage Services Basel i tie/Vol ume Adjustment 1,047,390 651,380
Golf Complex
Green and Range Fees 499,060 184,07❑
Total Revenues $ 5,558,630 $ 2,509,040
Budget Book Page 48
ENTERPRISE FUNDS
MA,OR EXPENDITURE CHANGES
2025 ProposedIProposed
Changesr
FTE Amount Amount
Water Utility
Transfer Out to KEHQC Project $ 6,958,460
Sewer Utility
King County Passthrough Expense 2,069,900 1,977,550
Transfer Out to KEHQC Project 3,038,680
Budget Book Page 48
ENTERPRISE FUNDS
MA,OR EXPENDITURE CHANGES
Proposed
Changes Changes
FTE Amount FTE Amount
Drainage Utility
Maintenance Worker 2 1.0 123,390 130,520
Offset by Reduction to Part-Time Salary Budgets (123,390) (126,360)
Excavator 315,000
Flood Plain Certification Engineer Allocation 35,920 38,190
Transfer Out to KEHOC Project 3,129,93❑
Utility Clearing
Meter Reader II 1.0 115,280 121,81❑
Set up/ Recurring Costs 1,100 1,100
Total Expenditures 2.0 $ 15,664,270 ❑.0 $ 2,142,810
Budget Book Page 49
INTERNAL SERVICE FUNDS
202 2025i •
Adi- Bu4ge. Proposed& Proposed -- ---'
Fleet services $ 101126,620 $ 8/463/600 $ 7,8111410
Central stores 383,640 386,400 3941130
Information Technology 111847,620 12/152/130 12,7061410
Multimedia 11126,860 11310,380 1,3591040
Facilities 91029,030 8,3391420 8,3491840
Unemployment 2271090 2481360 2601700
Workers Compensation 3,284,970 35681420 31787,840
Health & Employee Wellness 16,784,980 17/036/330 17,2811270
Liability Insurance 6,008,120 61747,990 7/063/150
Property Insurance 1,3341640 1,3571000 1,467,180
PROPOSED 1
Budget Book Page 50
INTERNAL SERVICE FUNDS
MA,OR REVENUE CHANGES
no 900,". 4
Information Technology Fund
Department Contributions $ 1,080,900 $ 638,850
Transfer in for Cable Utility Tax (369,360) (91,430)
Facilities Fund
Department Contributions 366,66❑ 312,540
Workers Compensation, Liability& Property Insurance
Department Contri butions for Workers Compensation 576,210 224,160
Department Contri butions for LiabiI ity I nsurance 851,170 326,280
Department Contributions for Property Insurance 36,010
Total Revenues $ 711,540 $ 547,420
Budget Book Page 50
INTERNAL SERVICE FUNDS
MA,OR EXPENDITURE CHANGES
2025 Proposed 2026 Proposed
Changes Changes
FTE Amount FTE Amount
Fleet Services
Parks Major Equipment Replacement $ 451,110
PW Major Equipment Replacement 410,000
Information Technology
Maintenance and Subscription Expenses 285,850 371,190
Facilities Fund
Extend Capital Facilties Project Manager Position 32,390 91,600
Workers Compensation and Liability Insurance
Workers Compensation premiums and judgments 274,920 210,130
Liability Insurance premiums and judgments 688,500 297,920
Total Expenditures 0.0 $ 2,142,770 0.0 $ 970,840
WORKERS COMP FUND
Actual Change Actua I Change Actual Change Est Actual Change Forecast Change Forecast Change
Beginning Working Capital 2,284,900 1,431,056 1,750,855 3,259,740 3,278,980 3,278,980
Total Revenues 11019,589 3,172,019 3,962,162 3,050,700 3,568,420 3,787,840
Expenditures
Judgments&Damages 1,221,148 48% 1,594,100 31% 1,640,779 3% 1,734,760 6°/0 2,192,990 269/6 2,308,010 5%
Insurance Premiums 112,062 37% 144,038 2Wo 208,249 45% 188,960 -9% 232,900 23% 256,190 10%
Intergovernmental5eivices 183,424 25% 207,532 13% 298,764 440/o 221,760 -26% 290,980 31% 312,800 7920
Other Expenses 271,799 1% 286,550 5% 315,485 10°/0 330,980 5% 351,550 6% 359,970 2%
Program Expenditures 1,788,433 35% 2,232,220 25% 2,463,276 10% 2,476,460 1% 3,068,420 24% 3,236,970 5%
Ultimate Loss Adjustment 85,000 620,000 (10,000) 555,000 500,000 550,000
Total Expenditures 1,873,433 2,852,220 2,453,276 3,031,460 3,568,420 3,786,970
Net Income (853,80) 319,799 1,508,885 19,240 870
Ending Working Capital 1,431,056 1,750,855 3,259,740 3,278,980 3,278,980 3,279,850
Target Ending Working Capital 1,966,000 1,533,000 2,266,000 3,056,000
Average Program Expenditure Increase:
2021-2023 = 23%
2022-2024 = 12%
2023-2024 = 5%
ti2025-26
BIENNIAL
• • - • - • • • 1 i
B&O TAX MAXIMUM CAP
Retail'h. - 1--
. Gross ' - - .
Scenario Maximum Cap Other Cap Tax Calculation 2025 Additional
Revenue
A $20 Million None Taxable only up to $0
(keep as is) $20 Million
B $25 Million None Taxable only up to $86 S00
$25 Million
Excess of $100 Taxable up to $20
C $20 Million Million & anything $60,000
Million over $100 Million
D $20 Million $100 Million Taxable on all $300,000
"Apply CPI-W on each maximum cap beginning January 1, 2026,
Budget Book Page 65-66
COUNCIL WORKSHOP.............. . . . . . . . . ...... ...... ...... ...... ..... ...... ...... ...... .. Oct 1
TOther funds baseline discussion:significant changes
4COUNCIL MEETING........... ...... ...... ...... ...... ...... ..... ...... ...... ...... ...... ...... ..... Oct 1
' 'I st Public Hearing-2025-26 Biennial Budget&202-5-2030 CIP
4COUNCIL WORKSHOP(Special Meeting if needed)............... ...... ..... ...... ...... ...... ..... Oct 8
Additional information and discussion
M COUNCIL WORKSHOP . . ...... ...... ...... ...... ...... ...... ..... ...... Oct 15
................ ...
Questions and Final Decisions
ECOUNCIL MEETING.. ..... ...... ...... ...... ..... ...... ...... ...... ...... ...... ... Oct 15
Public Hearing-2025 Property Tax Levy
L /'11d Public Hearing- 2025-26 Biennial Budget
COUNCIL WORKSHOP(Special Meeting if needed)............... ...... ..... ...... ...... ...... ... Oct 22
' PREPARE BUDGET ADOPTION AND RELATED DOCUMENTS.............. ...... ...... .... Oct 1 Nov 19
COMMITTEE OF THE WHOLE MEETING ............ ...... ...... ...... ...... ...... ...... ...... ..... Nov 5
N2025-26 Budget Recommendation
COUNCIL MEETING........... ...... ...... ...... ...... ...... ..... ...... ...... ...... ...... ...... .. . Dec 10
E Adoption of the 2 02 5 Property Tax Levy
Adoption of the 202�26 Biennial Budget
• Next Tuesday's Budget Workshop will bean opportunity to go over
Council 's questions
• Comp Plan presentation — Kristen Holdsworth
• Please send questions you have our way
• Paula Painter — ppainter�«Dkentwa.gov
• Michelle Ferguson — mferguson@kentwa.gov