HomeMy WebLinkAboutCity Council Committees - Operations - 01/18/2011
OPERATIONS COMMITTEE MINUTES
January 18, 2011
Committee Members Present: Ron Harmon for Debbie Raplee, Jamie Perry, Les
Thomas (Chair).
The meeting was called to order by L Thomas at 4:03 p.m.
1. APPROVAL OF MINUTES DATED JANUARY 4, 2011
R Harmon moved to approve the Operations Committee minutes dated
January 4, 2011. J Perry seconded the motion, which passed 3-0.
2. APPROVAL OF VOUCHERS DATED DECEMBER 31, 2010
J Perry moved to approve the vouchers dated December 31, 2010. R Harmon
seconded the motion, which passed 3-0.
3. RECOMMEND THE CITY COUNCIL ADOPT THE CITY OF KENT 2011 STATE
LEGISLATIVE AGENDA – TOP PRIORITIES AND MOVE DIRECTLY TO
TONIGHT’S CITY COUNCIL MEETING UNDER OTHER BUSINESS.
The 2011 Regular Session of the Washington State Legislature convened on
January 10, 2011. The State Legislative Agenda provides an overview of the items of top
concern for the City of Kent. A formally adopted State Legislative Agenda by the council
would provide strong direction and guidance to staff, representatives, and advocates of
our community in the legislative process. A detailed overview of the top priorities was
presented and discussed at a workshop earlier in the year. Michelle will summarize again
later in the Council meeting tonight.
Michelle clarified for R Harmon the proposed tolling on SR 509 is part of the Transportation
Partnership group advocating financing to research the tolling, not necessarily advocating
a toll road. L Thomas noted toll roads are a hot topic in Olympia as state, city and federal
try and find ways to raise money for roads.
R Harmon moved to recommend that the City Council adopt the City of Kent 2011
State Legislative Agenda – Top Priorities and move directly to tonight’s City
Council meeting under Other Business. J Perry seconded the motion, which
passed 3-0.
4. SUMMARY FINANCIAL REPORT AS OF NOVEMBER 2010 (INFORMATION ONLY)
Bob Nachlinger, Finance Director, opened with a report on the Utility Tax. The Utility tax as
was discussed at the December Operations Committee meeting has been coming in lower
than budget. An upside is the electricity tax is up, which shows an increase in business
production and beginning of a recovery of the economy. As a result of recent changes in
the billing structure of phone providers, there is a decline in the telephone utility tax
revenue. Federal policy states because the internet is free, there is no tax. This makes it
hard to distinguish between the internet and telephone as providers bundle their services.
As Tom Brubaker, City Attorney described it, “The models traditionally used no longer fit the
reality.” The utility providers are essentially supplying to us what is phone and what is
internet. Staff will have a recommendation to resolve the million dollar shortfall in the
Utility Tax for Council at the next Operations Committee meeting and revise the 2011
budget.
Operations Committee Minutes
January 18, 2011
Page: 2
In other areas, Revenue is $3 million under budget. As a result we will not make our
forecasted reserve. Retirement payouts and overtime costs continue to affect the budget.
John Hodgson, Chief Administrative Officer, noted staff will know by the first part of March
what the year-end revenue will be and what the dollar amount difference of the 4.6%
projected and 8.1% forecasted fund balance will be.
The meeting was adjourned at 4:42 p.m. by L Thomas.
_________________________
Pam Clark
Operations Committee Secretary