City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes April 22, 2015 Present: Councilmembers Urban, Fiedler, Molenaar, Lindquist, Quam, Hulst, Ragan, Mayor Boudreau Staff present: Finance Director Alicia Huschka, Police Chief Dodd, Fire Chief Hari, City Attorney Rogerson, Community Development Director Hyde, Special Projects Administrator Stendal, Surfacewater Manager Chesterfield, Parks Manager Weppler 1. Committee minutes from March 2015 were approved. 2. Financial Update: • Property Tax – Ms. Huschka reviewed recent property tax exemption rulings from the Department of Revenue resulting in refunds and loss of revenue in 2015. The total negative impact to the general levy is a reduction of $66,892 and the negative impact to the general levy plus the voted bond levy amounts to $71,668 for 2015. Ms. Huschka budgets 1% to 1.5% less than the amount levied each year for property tax revenue; therefore, this revenue decrease may not be too significant of an impact in 2015. • Sales tax collection for April is 5% higher than April 2014. The first four months are up 1.37% compared to the same period in 2014. The Finance Department is researching Microflex as a potential company to provide audit services for sales tax. This company tries to find any sources of missed sales tax and their fee is based on that. • Criminal Justice Sale Taxis up 5.7% and Motor Vehicle Fuel Tax is unchanged for the period January through March compared to the same in 2014. • Building permit activity is up 9% for the January through March 2015 period compared to first quarter 2014 and is in line with budget estimates of $510,000. • REET for January through April 2015 is 115% higher compared to same period 2014, and is trending ahead of the budget estimate of $350,000 for the year. 3. 2014 Year End Review – Government Operating Funds budget to actual: The Current Expense Fund fund balance is slightly higher, $74,464, than estimated at time of the 2015 budget adoption; fund balance in the Street Fund is a little lower ($2,218); Parks fund balance is up $27,666; the Library fund balance is up $26,175. Total increases to the four governmental operating funds fund balance total $126,087 when compared to estimates at time of the 2015 budget adoption. • These changes were a combination of higher revenues and lower expenditures. Although there were some revenue sources that were down, property tax and sales tax were up. City of Mount Vernon Finance Committee April 22, 2015 Page 2 • The ending fund balance when projected forward to December 31, 2015 shows that Streets, Parks & Library have more than 1 month of reserves and the Current Expense fund has 1.95 months of reserve. Council is going to be asked to consider, discuss and adopt fund balance policies. 4. Capital Improvement Plan Financing Options for Projects- delayed to another meeting 5. Public Defense Screenings Update - Eric Stendal indicated that the second biannual report was filed. The reviews were complimentary of the City’s efforts to address issues. 6. Interlocal with Western Washington University - Bob Hyde reviewed a proposal to have the City enter into an agreement with Western Washington University for assistance in developing an Economic Development Plan that would be a part the comp plan. This agreement would not exceed $5,000. 7. MVSR9 Gravel Pit lease Agreement – Esco Bell and Blaine Chesterfield gave a first reading of an agreement for a lease of the gravel pit. This agreement with Skagit Aggregates is for a 10 year term that will fully mine out the pit. There is a possible 5 year extension if there is any material left. The property will be restored per DNR reclamation requirements. 8. Miscellaneous -Special Payroll Audit – is done and we are in compliance. State auditors will begin their audit of the City’s 2014 financial statements on May 6 and will be on-sight for approximately 6 weeks. Adjourned at 6:50 p.m. Submitted by Rebecca J. Wade