City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes August 28, 2013 Present: Councilmembers Fiedler, Molenaar, Lindquist, Quam, Hulst, Ragan, and Urban, Mayor Boudreau Staff present: Finance Director Alicia Huschka, Human Resources Director Bartlett, Fire Chief Hari, City Attorney Rogerson 1. July 2013 minutes were reviewed and approved. 2. Financial Update: 2013 Revenue Review:  Sales Tax: Alicia recapped the August 2013 figures which are 10.3% higher than August 2012; January through August 2013 is 7.5% higher than the same period in 2012.  Criminal Justice Sales Tax: January through July collections are up 9.2% compared to the same period for 2012.  Motor Vehicle Fuel Tax: January through July 2013 collections are up 2.4% compared to the same period for 2012.  Building Permits: January through July 2013 is up 1% above the same period in 2012.  Real Estate Excise Tax: January through July collections are 101% above the same time in 2012. 3. Economic Impacts of Bridge Collapse:  The bridge was down for 27 days from May 23 through June 19, 2013. A review of 46 businesses in the most affected area reflected a decrease of 1.5% in sales tax revenue for the May-June 2013 time period compared to the same period in 2012. Citywide during this timeframe sales tax revenues were up 7.5%.  Construction sales tax collections are up 41% compared to January through August 2012. 4. 0.3% sales tax passage & impacts to 2014 budget:  In 2014 the City will save an estimated $350,000 with the reduction in the daily bed rate becoming effective in the March/April 2014 timeframe, as a result of the interlocal jail agreement with Skagit County. However, the Police Department is filling open positions that saved $200,000 in the 2013 budget; the City will have to account for the loss of liquor tax revenue of $80,000 which directly supports public safety in the City, and will have increased costs in 2014 due to union negotiations and related salary increases. These new costs and/or decreases in revenue will be addressed in part by the reduction in the 2014 jail bill, resulting from the passage of the 0.3% sales tax passage. 5. Workmen’s Compensation Risk Pools: City of Mount Vernon Finance Committee August 28, 2013 Page 2  The City’s L&I ratings have improved over the past few years and L&I pools have approached the City about joining. This creates an opportunity to earn a refund of L&I premiums. Other benefits are claims administration, safety training, reimbursement of safety programs and reduction in L&I premiums. Kandy will bring an agreement to Council in September for their review and possible adoption. 6. Lodging Tax applications are now available and applicants have until September 27, 2013 to submit them. There are new requirements that have been implemented due to State legislative action. 7. New Market Tax Credit Application is underway. 8. Jana presented a request from Paul Springer for an extension of the right of way variance to be extended to 10/31/13. It will be brought back to Council for agreement of an amendment. 9. Kandy reported that mediations and negotiations are underway with various unions. There are job openings that are being advertised. 2 new Fire positions are in the final hiring stages. One Police Officer has been hired and two more are in process. Adjourned at 6:50 p.m. Submitted by Rebecca J. Wade