City Council Committee Agendas

Mount Vernon City Council Committee of the Whole Minutes June 25, 2014 Present: Councilmembers Fiedler, Molenaar, Quam, Hulst, Lindquist, Ragan and Mayor Boudreau Staff present: Finance Director Alicia Huschka, Economic Development Director Jana Hanson, City Attorney Kevin Rogerson and Police Chief Dodd Finance 1. April and May 2014 committee minutes were approved. 2. Financial Update  Property taxes: $6,888,000 is budgeted for 2014; the levied amount is $6,959,785. New construction added in 2014 is $105,000. The current banked levy capacity is approximately $621,000.  Sales tax collection for June 2014 was 2.9% below the June 2013 collections. January through June collections for 2014 are up 6% compared to the same period in 2013.  Criminal Justice Sales Tax revenue for January through May 2014 is 1.2% higher compared to the same period in 2013.  Public Safety Sales Tax collections will require a budget amendment of approximately $1.0 million. Alicia will bring this forward at a future council meeting. The collections of March through May are averaging $86,000 per month.  Motor Vehicle Fuel Tax collections for January through May 2014 is up 3 .8% compared to the same period in 2013. The budget estimate for this revenue is 0.4% less than 2013 actuals.  Building permit activity for January through June 2014 is 10% lower than same period in 2013, but activity is still slightly ahead of the budget estimate of $505,000.  Real Estate Excise Tax for January through June 2014 is 8.2% lower than the same period in 2013, but in line with budget estimates. 3. Annual Audit is now complete and financial statements are now available on the City’s website. 4. A budget amendment for the General Fund will be needed estimated to be $65,000 due to:  Three employee retirements resulting in vacation and eligible sick leave payouts.  Voter Registration fees were $12,000 higher than budget estimates.  Public Defense budget will need an increase of an estimated $23,000. 5. Jail Finance Committee Update  Jail Outsourcing – the County has contracted with Chelan County.  Jail Medical costs – the Jail Finance Committee will be reviewing and addressing medical costs incurred by inmates and look for potential ways to control and/or fund this expense. City of Mount Vernon Finance & Economic Development Committees June 25, 2014 Page 2 6. New Market Tax Credits Update (NMTC)  The City did not receive a NMTC allocation award; 310 CDE’s applied for NMTC requesting over $25.9 million. The U.S. Treasury’s Community Development Financial Institutions Fund (CDFI) awarded $3.5 billion in NMTC allocations to 87 Community Development Entities (CDE), of which only one CDE was awarded in Washington State, the Seattle Investment Fund, who received $28 million. There will be another application round that may open up later in 2014; no further information has been announced yet. 7. Downtown Project Funding Phase III Update  The City has secured $6.4 million in funding for this $10 million phase. With an additional $500,000 of City funding available for the project, the funding need remains at $3.1 million. Options to complete the funding include a grant request to Skagit County’s Economic Development (Rural County) program with a maximum request of $500,000; a State Capital Budget Request and lastly internal debt financing with the City to complete full funding. Any debt scenario would require Council approval. Economic Development 8. CED Director Authority/ Pre-application Process.  Jana provided a copy of the Mount Vernon Municipal Code which outlines the procedures for all land use and development applications. 9. Economic Development Activity  College Way and Riverside Drive area is a focus of the CEDD. Current and potential retailers are worked with regularly to maintain or acquire their presence in that corridor. Several of the properties are tied up by private leases and private ownership and are not inclined to change their status of empty buildings. The Economic Development Department will be sending out information to over 160 technology businesses in the Puget Sound area in an attempt to recruit their businesses to Mount Vernon. 10. Building Permit/ Development Activity  Several subdivisions have been approved and these permits will be paid soon. Construction on new retail spaces are going to be happening soon. 11. Miscellaneous  Kevin Rogerson received a proposal for a lease from Mr. Kevin Moss at Glacier Energy for installation of solar energy panels to be placed on the Wastewater Treatment Plant. This is a first reading of this proposal as Mr. Moss has a time deadline for applying for a federal grant by July 7, 2014. Adjourned at 7:00 p.m. Submitted by City of Mount Vernon Finance & Economic Development Committees June 25, 2014 Page 2 Rebecca J. Wade