City Council Committee Agendas

Mount Vernon City Council Finance Committee Minutes November 2, 2016 Present: Councilmembers Fiedler, Hulst, Hudson, Lindquist, Molenaar, Quam, Ragan, and Mayor Boudreau Staff present: Alicia Huschka, Kevin Rogerson, Bill King, Chief Dodd, Gary Duranceau, James Weppler, Peter Donovan, Chief Brice, Kandy Bartlett, Brian Soneda, and Kim Kleppe 1) Minutes from October 26, 2016 were approved. 2) Budget Update: The Council continued the review of the 2017 Preliminary Budget: a) Ms. Huschka reviewed the October sales tax collections for the City, which were 10.9% higher than October 2016, while year to date sales tax is 13.1% (or 9.0% removing the jail construction project) higher than Jan-Oct 2016. Sales tax estimates in the preliminary budget document have been updated for these actual revenue collections. b) Ms. Huschka reviewed the budget worksheets focused on fund balance analysis and calculating the target fund balance reserves for the Current Expense Fund, and Streets, Parks and Library. Additionally the worksheet on ‘Summary of one-time purchases, non-essential items or postponable purchases’ was reviewed with the Committee. c) The remainder of the committee meeting focused on major revenues in the Current Expense Fund. Property tax revenues and the erosion of tax dollars devoted to the Current Expense Fund were discussed, along with a historical review of the impacts of the Council not taking the lawfully allowed one percent increase in property tax for eleven of the past twelve years. The other major revenues that were discussed included utility tax with a focus on public utility tax rates for sewer, garbage and PUD water. Private utilities tax rates such as electricity, natural gas and telephone are capped at 6%. The City’s current utility tax rate for sewer is 8.5% and the rate for PUD water is 7%. Surface water does not impose a utility tax. Various scenarios were discussed regarding rates or tax increases. d) There was a discussion regarding a possible joint venture with the downtown businesses for the purchase and maintenance of flower baskets. Adjourned at 7:00 p.m. The Finance Committee reconvened at 7:35 p.m. 3) Budget Update: Ms. Bartlett, Human Resources Director reviewed salary survey results for non- represented employees, with two separate survey results being reviewed; the director salary survey and the non-represented salary survey. The City’s 2016 salary schedules were compared to comparable cities, and to all cities statewide in the population categories of 15,000 to 29,999 and 30,000 to 49,999. In nearly all instances the city’s salaries were lower than the mean and median to the comparatives. The city councils’ salary/stipend was also reviewed. Budget discussions will continue on November 9, 2016. Adjourned at 8:30 p.m. Submitted by Rebecca J. Wade