City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes April 24, 2013 Present: Mayor Boudreau, Councilmembers Fiedler, Molenaar, Quam, Lindquist, Urban and Hulst Staff present: Finance Director Alicia Huschka, Information Services Manager Kleppe, Human Resources Director Bartlett, Police Chief Dodd, Fire Chief Hari 1. March 2013 minutes were reviewed and approved. 2. 2013 Revenue Review:  Sales Tax: The January through April 2013 collections are up 3.6% compared to the same period in 2012. The April 2013 collections appear to be 3.1% less than the April 2012 collections. There is a discrepancy in the raw data that could affect the percent of change in April to a 2% decrease. Alicia will know this when we get the final month-end remittances from the State.  Criminal Justice Sales Tax: January through March collections are up 12.5% compared to the same period for 2012.  Motor Vehicle Fuel Tax: January through March collections are up 3.0% compared to the same period for 2012.  Building Permits: January through March permit revenue is up 59% compared to the same period for 2012 and is well ahead of budgeted estimates.  Real Estate Excise Tax: January through April is up 124% over the same period for 2012 and is also ahead of budget estimates. 3. Year End Close Review: The Finance Department has closed the fiscal year 2012. Alicia gave an over view of the year-end financial position.  The Current Expense Fund actual fund balance of $3,557,154 at December 31, 2012 is $174,828 higher than estimated when the 2013 budget was adopted. This was due primarily to better than expected revenue collections in November and December 2012 for sales tax, property tax, telephone utility tax and building permits. The Current Expense Fund fund balance estimate for December 31, 2013 meets the City’s goal of reserving two months of operating budget, which would be $3,040,582 for 2013. The estimated fund balance at December 31, 2013 is $3,035,040. 4. Dark Fiber Optic Lease Agreements: Kim discussed the agenda item that Council will hear regarding City leases of dark fiber to businesses. There is excess capacity that is available and medical centers or hospitals prefer to utilize this because of the vast amount of data that they can share. The item to be reviewed by Council will establish a billing fee and formalize the usage that is available. Discussion focused on whether a rate schedule should be established so Council doesn’t need to approve each connection. This would operate in a similar manner to a utility. . City of Mount Vernon Finance Committee April 24, 2013 Page 2 5. Human Resources Update: Kandy provided an update on what the HR department does.  Labor Management  Recruitment – related to retiring employees and departing employees.  Civil Service – this relates to compliance with Civil Service Rules.  LEOFF & FR&P – benefit administrations as well as activity with the board and implications regarding obligations related to these retirees.  Employee compensation and benefits – redesigning medical plans that have saved the City $500,000 as well as performing salary studies.  Safety – established a safety committee that has a set meeting schedule, training and compliance with rules and regulations. The City’s L&I loss ratio went from 89.1% in 2010 to 25.4% in 2012.  Staffing issues are arising as the departments which are operating at minimal staffing levels have employees who are out because of medical conditions. This often requires hiring temporary staff to cover the workload for those people.  The Healthcare Affordability Act is having immediate financial implications for the City. Kandy may need to hire a consultant to assist during the establishment of the process and rules that are associated with this Federal requirement. Adjourned at 6:50 p.m. Submitted by Rebecca J. Wade