City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes September 25, 2013 Present: Councilmembers Fiedler, Molenaar, Lindquist, Quam, Hulst, and Urban, Mayor Boudreau Staff present: Finance Director Alicia Huschka, Human Resources Director Bartlett, Fire Chief Hari, Police Chief Dodd, City Attorney Rogerson 1. August 2013 minutes were reviewed and approved. 2. Financial Update: 2013 Revenue Review:  Sales Tax: Alicia recapped the September 2013 figures which are 19.8% higher than September 2012: January through September 2013 is 8.9% higher than the same period in 2012. Increases in construction activity are contributing to this.  Criminal Justice Sales Tax: January through August collections are up 8.6% compared to the same period for 2012.  Motor Vehicle Fuel Tax: January through August 2013 collections are up 1.7% compared to the same period for 2012.  Building Permits: The City has collected more than the $400,000 that was budgeted for this revenue.  Real Estate Excise Tax: As of this meeting the $307,000 collected is in excess of the $300,000 revenue that was budgeted. 3. Budget 2014 Overview:  Revenue o Growth in Sales Tax – each 1% increase is equal to$50,0000. o Property tax levy last year was increased by 1.8% or $120,000 as approved by Council. o Utility Tax – is declining in 2013. o For the Current Expense Fund, the Ctiy used $522,000 of fund balance in 2013 to balance the budget. o Reduction in Jail Bill will be offset by reductions of liquor tax revenue and increases in expenses related to police staffing and salaries.  Expense o Work force - 74% of government operations is labor groups. Non- represented staff has had four years of furloughs. The goal is to bring them up to full time in 2014. o Medical insurance – AWC is not proposing any increase in health insurance premiums. o Equipment rental replacement reserves have not been allocated at a fully funded rate over the past years. It is not likely that the City can fully rebuild this account in one year. City of Mount Vernon Finance Committee September 25, 2013 Page 2 4. Debt Financing Overview:  Government Debt- this debt repayment is paid by voter obligation on property tax and with REET 1 collections. The City is only using 3.75% of the allowable debt limit.  Utility Debt – this debt is repaid through utility revenues. These loans represent 92% of the City’s total debt. 5. Human Resources Update:  Fire Department - has hired two fire fighter/paramedics to replace retirees. The department has promoted internally a battalion chief , a captain and a lieutenant.  Police Department - has hired three officers, which still leaves 4 positions open.  Street Utility worker - candidates were interviewed and Kandy hopes to have the new person on duty by October 16.  Wastewater Foreman – there was only one applicant who was promoted and the Operators position he left will be advertised internally.  Parks Technician – applications are still being accepted.  Starting Wages – Union employees wages are established by collective bargaining units. Non-represented positions can be placed within the steps of a set range based on knowledge, skills and abilities. City Council sets the ranges of employee pay by position; however the steps within the range for new hires is determined by the Human Resources Director in coordination with the Mayor. 6. Other Items - The New Market Tax Credit application was filed in a timely manner and local banks were supportive of this, supplying letters of interest that indicate $165,000,000 of potential commitments. March 2014 will likely be the month that the City will find out if we receive an allocation from the U.S. Treasury. The City’s application was for $50,000,000 of new market tax credits.c Adjourned at 7:00 p.m. Submitted by Rebecca J. Wade