City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes August 26, 2015 Present: Councilmembers Urban, Fiedler, Molenaar, Lindquist, Quam, Hulst, Ragan, Mayor Boudreau Staff present: Finance Director Alicia Huschka 1. Committee minutes from July 2015 were approved. 2. Financial Update: Ms. Huschka discussed aspects of the budget to actual revenues for 2015. • Sales Tax – Ms. Huschka reviewed the sales tax revenue to date. January to August 2015 is 3.0% higher than the same period in 2014. • Criminal Justice Sale Tax – The January to July 2015 collections are 6.7% higher than the same period in 2014. • Motor Vehicle Fuel Tax – The January to July 2015 collections are 1.7% greater than the same period in 2014. • Building Permits - Activity is up 7.6% for the January through July 2015 period compared to the same period in 2014 and is ahead of the budget estimates of $510,000. • REET - January through August 2015 is 61% higher compared to same period in 2014, and is trending ahead of the budget estimate of $350,000 for the year. • Utility Taxes: • Electricity tax is down 9.5% January to August 2015 compared to the same period in 2014. • Gas is down 7% January to August 2015 compared to the same period in 2014. • Results could be combined for a decrease of $164,000 as compared to the adopted budget estimate. • PUD Water– due to a delayed start of collection and a 21% reduction for fire suppression usage revenue, this tax could come in under the budget estimate by approximately $150,000. • PUD Utility Tax – The current tax of 6% is due to expire December 31, 2015, Council action is necessary to keep this tax in place. Ms. Huschka reviewed revenue estimates based on a 6% and 7% utility tax rates. • Transportation Benefits Districts (TBD): Ms. Huschka reviewed the purpose and benefits of forming a TBD and requested for direction from the Committee. 3. Downtown Project Phase III Funding Update. • Regarding the newly committed $1.5 million by the State in the State Capital Budget for the biennium beginning July 2015, the State Department of City of Mount Vernon Finance Committee August 26, 2015 Page 2 Commerce will not enter into an agreement with the City until property acquisition is complete and the project has full funding. • A breakdown of funding was presented which includes State committed revenues, Skagit County Dike District #3, City funding and the pending Skagit County Economic Development Grant application process. Phase III of the project is fully funded with the exception of the $500,000 that will be requested from the County through the Economic Development grant process for rural/distressed counties. 4. Business License Municipal Code – Upcoming Revisions • Code revisions are necessary prior to the partnership with the State Department of Revenue, Business License Services. Updates to the City municipal code will include streamlining the fee structure and language clarification. The transition is scheduled to be complete in early 2017. 5. Other • Amendment to Jail Facility Use Agreement – An amendment will be presented to City Council to add clarification to certain dates and years in the originally adopted Jail Facility Use Agreement. Adjourned at 6:45 p.m. Submitted by Becky Jensen