City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes August 27, 2014 Present: Councilmembers Molenaar, Fiedler, Hulst, Quam, Lindquist, Ragan, Urban and Mayor Boudreau Staff present: Finance Director Alicia Huschka, Human Resources Director Bartlett, Economic Development Director Jana Hanson, Building Official Prosser, City Attorney Kevin Rogerson and Police Chief Dodd Finance 1. July 23, 2014 committee minutes were approved. 2. Financial Update:  Sales tax collection for January to August 2014 is up 5.1% compared to the same period in 2013; assuming no further increases the 2014 annual increase would be 3.3% compared to 2013.  Property tax banked capacity is approximately $621,000 and a 1% increase would be approximately $70,000.  Criminal Justice Sales Tax for January to July 2014 is up 1.9% compared to the same period in 2013.  Building Permit revenues for January to July 2014 are down 11% compared to the same period in 2013; however, actual collections are slightly ahead of revenue budget estimates.  Motor Vehicle Fuel Tax for January to July 2014 are up 2.7% compared to the same period in 2013.  Alicia went through a preliminary review of the 2015 budget major financial impacts that will need to be addressed in the 2015 budget. These increases include professional services for the comprehensive plan, increased medical costs due to the Affordable Healthcare Act, a five percent increase in medical premiums, increased labor costs due to union contracts and cost of living adjustments, rebuilding the Equipment Rental Replacement Reserves/Budget and additional costs of public defense and judicial expense. In total these major budget impacts will cost an additional $1,045,000 to the City’s governmental operating funds.  Alicia also reviewed some very preliminary positive impacts to be considered in the 2015 budget process which includes improvements to sales tax collection, the additional decreased cost to the Police jail budget, and a few other areas, which will have positive impacts of approximately $600,000 on the 2015 budget.  The Committee and staff reviewed in further detail the impacts to the public defense budget for 2014 and 2015. City of Mount Vernon Finance & Economic Development Committees August 27, 2014 Page 2 3. Budget Amendments: Alicia reviewed the upcoming budget amendments that will presented at the next City Council meeting for approval. Some of the items include increased costs due to retirements of three employees, additional public defense related expenditures, additional contracted planning services in Community Economic Development, and unanticipated increases to the elections and voter registration charges by the Skagit County Auditor’s office. Additionally the budget amendment will include the Jail sales tax collection and pass-thru to the Skagit County Jail Fund and a Kiwanis Club grant received by the Parks and Recreation Department. 4. Proposed Employee Handbook Revision specific to Healthcare and Healthcare Affordability Act:  Kandy Bartlett reviewed proposed changes to the City Employee Handbook in section 8.3 and 8.4 that are required because of the Patient Protection and Affordability Care Act.  Kandy also gave the Committee an FTE personnel update including recent retirements, recruitment proceedings, and other related activities. 5. Training for Election Officials – postponed to a future meeting. 6. Kincaid Roof Project and Skylight Roof  Rick Prosser said that from the small works roster one bid was received for the Kincaid roof project to remove the existing roofing, add insulation, and install a new roof. The bid received by Rainshield is higher than the estimates. Council suggested going through the formal bid process to ensure the most economical cost is received. Kevin said if they wanted to reject the bid to make a motion during the council meeting to reject the bid and direct staff to go through the formal bid process.  Rick Prosser gave an update on the progress for Hillcrest skylight roofing. Adjourned at 7:05 p.m. Submitted by Lori J. Kimbriel