City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes October 31, 2012 Present: Councilmembers Fiedler, Ragan, Urban, Molenaar, Quam, Lindquist and Hulst, Mayor Boudreau Staff present: Finance Director Alicia Huschka, Police Chief Dodd, Community and Economic Development Director Hanson, Fire Chief Hari, Assistant Public Works Director Love, Parks and Recreation Director Otos 1. Review 2013 Hotel/Motel Tax Funding. Alicia reviewed with the Finance Committee the lodging tax advisory committee’s recommendations for disbursement of the Hotel/Motel Tax revenue for 2013. The requests were very similar to previous year’s requests. Alicia reviewed restrictions of the use of hotel/motel tax funds with the committee. The advisory committee’s recommendations were very much in line with 2012 awards. 2. Miscellaneous:  Criminal Justice sales and use tax – there is an RCW that allows Cities or Counties to submit a tax increase of 0.3% for Criminal Justice to the voters for approval. The County is currently in the planning stages of this process with the intention of using the revenue to help fund a new jail. LaConner and Sedro- Woolley have added a 0.1% sales tax ballot measure to the general election ballot for approval. If the County submits their ballot proposition first for the 0.3% tax would distribute 60% of the funds to the county and 40% to the City on a per capita basis. Cities can present to their voters a sales tax measure for a maximum of 0.1% sales tax, in which 15% would go to the county and 85% would go to the city. The state statue reads that a minimum of 1/3 of the tax revenue must be used for criminal justice purpose. The ballot must clearly state the purpose of this tax. 3. Property Tax levy – Alicia reviewed with Council the information received from the County Assessor regarding new construction values; $23 million of new value will be added to the tax rolls in 2013 which will generate $66,580 in property tax should Council take all new construction allowed to them. The committee discussed the upcoming property tax public hearing and the options available to Council for action. 4. Budget Discussion: Council focused on some departmental budget line items, and reviewed with the Mayor and staff. Adjourned at 8:25 pm Submitted by Rebecca J. Wade