City Council

Mount Vernon City Council Study Session November 18, 2015 The meeting was called to order by Mayor Boudreau at 7:00 p.m. Present: Mayor Boudreau, Councilmembers Fiedler, Hulst, Lindquist, Molenaar, Quam, Ragan and Urban Staff Present: Human Resources Director Bartlett, Public Works Director Bell, Surface Water Manger Chesterfield, Police Chief Dodd, Community and Economic Development Department Director Hyde, Fire Chief Hari, Finance Director Huschka, City Attorney Rogerson, Library Director Soneda Citizens Present: 3 NEW BUSINESS A. Committee Report: Economic Development: for details please see committee minutes. B. Committee Report : Committee of the Whole: for details please see committee minutes C. Community Comments • Bill Reinhard representing the Wildcat Steelhead Club came forward to ask for support of a steelhead fishery in the Skagit River. D. Library Update Presentation: Mr. Soneda presented an update on recent Library activities. E. Continuation – Set 2016 Property Taxes: This item was continued from November 4, 2015 when a public hearing was held. Ms. Huschka reviewed state statute regarding property tax levies. The City is allowed to increase the property tax levy by 0.251% as measured by the Implicit Price Deflator. Council also has the option to bank a 1% increase for future use if an ordinance of substantial need is also passed. An increase of 0.251% would generate $17,736 in revenue. New construction value will generate $96,906 of new revenue for the City, this has been included in the 2016 preliminary budget, but no other increases in property taxes have been included in the preliminary budget for 2016. Staff is requesting Council to set the 2016 property taxes at $7,163,101 which includes new construction and no other increase. Councilmember Urban moved to approve Ordinance 3666 not taking the 0.251% property tax increase, but banking the capacity. Motion seconded by Councilmember Lindquist. Motion carried 7-0. Councilmember Urban moved to approve Ordinance 3667 stating substantial need for the City for the full 1% tax levy increase; however, this amount will be banked. Motion seconded by Councilmember Lindquist. Motion carried 6-1 (Councilmember Hulst opposed). Mount Vernon City Council November 18, 2015 Page 2 of 3 F. Open Record Public Hearing for Proposed Amendments to the Utility Tax on Domestic Water: Ms. Huschka presented a request for Council to increase the rate of utility tax on domestic water from six percent to seven percent to be effective January 1, 2016 and to repeal the expiration date on the utility tax on domestic water. Councilmember Ragan urged Council to continue implementing a sunset clause of twelve months on the Domestic Water Utility and maintain the rate at 6%. Councilmember Urban stated that he felt that the sunset clause was superfluous since there would be an annual discussion of the tax rate. Mayor Boudreau opened the public hearing. There being no comments Mayor Boudreau closed the public hearing. Councilmember Ragan moved to approve setting the tax rate at six percent and setting an expiration date of December 31, 2016. Motion seconded by Councilmember Hulst. Motion failed 3-4 (Councilmembers Urban, Lindquist, Fiedler, Molenaar opposed). Councilmember Urban moved to approve Ordinance 3668 setting the tax rate at 7% percent and repealing the expiration date of December 31, 2015. Motion seconded by Councilmember Lindquist. Motion carried 6-1 (Councilmember Ragan opposed). G. 2016 Preliminary Budget Discussion: Councilmembers and staff continued budget discussions. • Mayor Boudreau reviewed the job description of the position to be called Enrichment Services Director. This position will administratively oversee the Parks Department and the Library. • The Mayor also reviewed the job description of the Project and Policy Development Manager position. • Councilmember Hulst would like the budget for a parking structure capital fund reduced by $100,000 and would like to increase the street and/or transportation budget for road maintenance by that amount. • Councilmember Fiedler asked for a discussion regarding the use of parcels that the City owns and how they work with the overall capital projects that the City wants to move forward on. He asked for the $100,000 in REET funds that are proposed for the Shop facility capital project to be eliminated and that those funds be left in the REET fund. • Councilmember Hulst asked Ms. Huschka to present information on what an increase to public utility taxes would look like, in order to possibly fund an addition street department employee. The meeting was convened into executive session at 8:40 p.m. and was estimated to last 15 minutes. H. Executive Session: Real Estate and Potential Litigation. The meeting was reconvened at 9:05 p.m. There being no further business the meeting was adjourned at 9:05 p.m. Mount Vernon City Council November 18, 2015 Page 3 of 3 . SUBMITTED BY: ______________________________________________ Rebecca J. Wade, Recording Secretary ATTEST: ______________________________________________ Alicia D. Huschka, Finance Director APPROVE: ______________________________________________ Jill Boudreau, Mayor