City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes July 24, 2013 Present: Councilmembers Fiedler, Molenaar, Lindquist, Quam, Hulst, Ragan, and Urban Staff present: Finance Director Alicia Huschka, Community and Economic Development Director Hanson, Fire Chief Hari, City Attorney Rogerson 1. June 2013 minutes were reviewed and approved. 2. New Market Tax Credit Program and Technical Assistance Scope of Work. Ms. Hanson introduced Norm McLoughlin from McLoughlin and Associates.  Mr. McLoughlin presented a summary of the financial tools and processes that are part of this program designed to promote economic development. 3. 2013 Revenue Review: July sales tax data is not available at this time, but Alicia will share data with Council once it is received.  Sales Tax: Alicia recapped the June 2013 figures which are 14% higher than June 2012: January through June 2013 is 7.5% higher than the same period in 2012.  Criminal Justice Sales Tax: January through June collections are up 10% compared to the same period for 2012.  Motor Vehicle Fuel Tax: January through June 2013 collections are up 1. 9% compared to the same period for 2012.  Building Permits: January through June 2013 is up 25% above the same period in 2012 and is well ahead of budgeted estimates.  Real Estate Excise Tax: Jan through July collections are 101% above the same time in 2012. At this point the City has collected 80% of the annual budgeted revenue. 4. Legislative Review:  Capital Budget – the City will receive $5 million for Phase III of the Downtown/Waterfront Project.  WWRP Recreation Grants – the City will receive $500,000 for the Waterfront Park Plaza, which includes funds to complete the downtown public restroom project.  The State budget swept the PWTF Program and moved these program funds to the State operating budget.  The State budget includes $11.25 million for competitive grants for floodplain management. The City will pursue this program for Phase III of the downtown flood project.  Liquor Tax was cut but not fully eliminated; the State cut liquor tax to local municipalities by 50% which will be a reduction of $80,000 annually to the City of Mount Vernon. City of Mount Vernon Finance Committee July 24, 2013 Page 2  Fleet conversion – In previous legislation the State mandated that municipal vehicle fleets will be converted to alternative fuel vehicles by 2018. This legislative session exempted emergency vehicles from this mandate and cities will not be required to replace vehicles that are not past their useful lives.  The State Audit for 2012 is complete and the City will receive a clean audit report, no audit finding, no management letter. The audit lasted 7 weeks and will cost approximately $54,000.  The City has filed for State reimbursement for costs incurred for the bridge collapse. The City applied for $20,000 for overtime costs in the Fire Department and $23,000 for use of equipment. The City anticipates receiving $43,000 in reimbursement from the State.  Alicia and Kandy will be reviewing potential risk pools that the City could join for workman’s comp and will provide an review to Council at the next finance committee meeting. Adjourned at 6:55 p.m. Submitted by Rebecca J. Wade