City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes May 22, 2013 Present: Mayor Boudreau, Councilmembers Fiedler, Lindquist, Hulst, Ragan and Urban Staff present: Finance Director Alicia Huschka, Community and Economic Development Director Jana Hanson, Human Resources Director Bartlett, Library Director Soneda 1. April 2013 minutes were reviewed and approved. 2. 2013 Revenue Review:  Sales Tax: no updated information available for May. Alicia recapped the April figures: January through April 2013 is 3.8% higher than the same period in 2012.  Criminal Justice Sales Tax: January through April collections are up 9.3% compared to the same period for 2012.  Motor Vehicle Fuel Tax: First four months collections are up .9% compared to the same period for 2012.  Building Permits: First four months are up 62% above the same period in 2012 and is well ahead of budgeted estimates.  Real Estate Excise Tax: Jan through May is up 100% compared to the same period for 2012; we are ahead of budget projections.  The fund balance in the Current Expense Fund is $174,828 higher than estimated at December 31, 2012, at the time of the 2013 budget adoption. The fund balance at the end of 2012 and projected for the end of 2013 meets the city’s informal policy to maintain two months of operating budget in reserves. 3. Human Resources Update: Kandy provided an update on how the Healthcare Affordability Act is having immediate financial implications for the City.  The 2010 congressional act is intended to provide health care for all Americans.  There are substantial changes in requirements for providing healthcare insurance coverage for employees.  The City needs to hire a consultant to assist with the implementation of the Healthcare Affordability Act. A contract will be brought to Council for their review and possible approval. 4. Budget Process Discussion  Alicia presented a generic calendar that represents the budget calendar as required by law. The process begins in late July and ends with budget adoption by City Council at the end of November. Alicia and the Mayor plan to deliver the preliminary budget to City Council on October 16th, where Council, the Mayor and Alicia will hold a special committee meeting to review the document together.  Major budget considerations for the 2014 budget include: healthcare premium increase, the Healthcare Affordability Act, liquor revenues, City of Mount Vernon Finance Committee May 22, 2013 Page 2 revenue trends, 0.3% sales tax measure and jail bill, the city’s workforce (staffing levels, wages, furloughs, contracts), and fund balance usage.  If Councilmembers have budget requests that they want added to the budget Alicia recommended that they submit these requests in the August - September timeframe so the requests can be folded into the process. 5. Report on Library Journal Design Institute Event: Brian presented information regarding the process of moving from a “wish” for a new library to opening the doors. 6. Other Items:  Budget amendments – In the General Fund it will be necessary to amend the budget to increase the medical insurance budget for the Fire Department due to an unsettled contract with the union. Also a budget amendment will likely be needed to increase salary budgets in departments that have employees out on extended medical leaves and retirements. The City has had to hire temporary help to cover these vacancies.  The Washington State Auditors will be on site beginning May 28, 2013. Councilmembers are always invited to the entrance conference by the State Auditors once they determine a time to hold such a meeting.  Financial Statements to be filed by 5/31/13. The Department is complying with rules regarding separation of duties when the Finance Director reviews these documents after preparation by another staff member.  The Finance Department received a CAFR Award for 2012 from GFOA.  Interlocal with Skagit County has lowered the liquor tax contribution to 2%.  Weekly staff meetings started today with the County, Mount Vernon, Sedro-Woolley, Anacortes and Burlington to draft an Interlocal jail agreement.  E-Bill update: electronic utility billing statements will become available to the public via the City’s website by May 28, 2013. Adjourned at 7:00 p.m. Submitted by Rebecca J. Wade