City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes January 28, 2015 Present: Councilmembers Fiedler, Molenaar, Lindquist, Hulst, Ragan and Urban, Mayor Boudreau Absent: Councilmember Quam Staff present: Finance Director Alicia Huschka, Fire Chief Hari, Police Chief Dodd, City Attorney Rogerson 1. Committee minutes from October 15, 22, 29 and November 5, 2014 were approved. 2. Financial Update • Property Tax review: The 2014 collection was $6,948,687 which is 99.6% of the levied $6,964,042. Alicia typically budgets 1.0% to 1.5% less than the amount of the levy to account for uncollectable accounts. • Alicia reviewed with the Committee recent Department of Revenue rulings regarding property tax exemption determinations. • Sales tax collection for the year 2014 is 2.6% higher, or $139,000 more compared to 2013 actuals. This is still 11% less than 2007 sales tax collections. January 2015 collections are 2.1% higher than January 2014. • Building Permit revenue for the year 2014 was 3.5% less compared to 2013 actuals; however, actual collections were $515,000 compared to the 2014 budgeted revenue of $505,000. • Utility Tax revenue in 2014 was 5.3% higher than 2013 although 2013 was 6.5% less than 2012. • Real Estate Excise Tax for 2014 is 12% greater than in 2013. The 2014 revenues were $441,000 compared to the budget of $300,000. • Criminal Justice Sales Tax revenue for 2014 was up 1.6% compared to 2013. • Motor Vehicle Fuel Tax revenue for 2014 was up 1.2% compared to 2013. • Downtown Flood and Riverwalk Project update on Phase III funding – Alicia reviewed with the Committee secured funding for the final phase of the project including a review of funding strategies to secure the remaining dollars needed for the project which includes a scenario of city long-term financing. 3. Business Licensing: The City continues to be committed to partnering with the State to administer city business licenses through the Master Licensing Services (MLS) program. MLS is implementing a new computer system which has halted implementations for 2015. The State has indicated that the City can move to the MLS system in early 2016 assuming their system implementation goes smoothly. Alicia indicated that the City of Mount Vernon Finance Committee January 28, 2015 Page 2 municipal code for city business licensing needs to be updated and made uniform in order for this project to be fully implemented. Staff will bring forward revisions to the city code in 2015 to be reviewed with Council prior to requesting adoption of any changes. With the MLS program the City retains full regulatory control over licenses. Most cities see an increase in compliance and this could increase revenue. 4. Utility Billing outsourcing: The Finance Department processes 9,400 invoices monthly. By outsourcing the printing, stuffing and mailing there would be no increase in expense to the City over what is currently paid for postage and supplies. An agreement with Databar for this service will be brought before Council at the next Council meeting. 5. Miscellaneous • Jail Finance Committee has formed a subcommittee to look at the way medical costs for inmates are paid for and whether changes should be made. • At the February 11, 2015 Council session Kevin will present the “Truck ordinance” for approval. He indicated that the notification process is underway. • Bob Hyde, candidate for CED Director, will meet with staff and fellow Department heads. • 2015 budget is now available on the City’s website. Adjourned at 6:55 p.m. Submitted by Rebecca J. Wade