City Council Committee Agendas

Mount Vernon Finance Committee Parks & Enrichment Services Committee Minutes August 28th, 2019 Present: Councilmembers Beaton, Brocksmith, Carías, Hulst, Hudson, Moberg, Molenaar Staff present: Mayor Boudreau, Doug Volesky, Kevin Rogerson, Bill King, and Peter Donovan Citizens present: 2 1) Minutes from the July 24th, 2019 committee meeting were approved. 2) 2020 Pre-Budget Discussion by Mayor Boudreau a) Reviewed Discretionary and Non-Discretionary Budget Items b) Reviewed the City Council’s 2019 Budget c) Presented the proposed 2020 City Council Budget d) Presented the COLA recommendation of 3% e) Discussed the current projects and concerns for 2020 f) Overview of REET 1 and its balance 3) Finance Department Update by Finance Director Doug Volesky a) Director Volesky reviewed the City of Mount Vernon’s Fiscal Policy i) Review of the goals of the City’s existing Fiscal Policy ii) Reviewed the Revenue Policies (1) Policies governing how revenues should be calculated, forecasted, and sufficient enough to cover expenditures. (2) Policies for Grant Revenues and Enterprise Revenues (3) Presented 2020 Budget Suggestions from the MRSC Revenue Guide for WA Cities and Towns iii) Reviewed the Expenditure Polices (1) Cost control, responsible financial management, improving productivity, leveraging technology, documenting employee needs, etc. (2) Personnel Compensation and Equipment Maintenance and Replacement. (3) Indirect Cost Allocation for services to outside sources and between funds. City of Mount Vernon Finance Committee August 28, 2019 iv) Reviewed the City’s Reserve Policies (1) The City shall maintain General Fund reserve of 15% or more (a) The City finished 2018 with a General Fund Reserve of 18%. (2) Other Governmental Operating Funds such as Library, Parks & Enrichment, and Streets shall maintain a reserve of 10% or more. (a) The City finished 2018 with a Library reserve of 15%, Parks & Enrichment reserve of 16%, and Streets reserve of 10%. (3) Councilmember Hulst recommended only using reserves for non-operating, one-time expenses. v) Review of the City’s Debt Management Policies b) Mayor Boudreau reviewed House Bill 1406 i) The goal of HB 1406 is to encourage investments in affordable and supportive housing. ii) Under HB 1406 there are multiple methods of taxation the City could use to generate funds for this project; however, all of them are considered Qualifying Local Taxes and would require a vote. (1) Affordable Housing Levy (RCW 84.52.105): regular property tax levy of up to fifty cents per thousand dollars of assessed property value for 10 years. (2) Sales and Use Tax for Housing and Related Services (RCW 82.14.530 max .001%): this is tax that may be imposed at the county level. (a) Skagit County is currently collecting taxes on this for services offered throughout the county. (3) Property Tax Levy (RCW 84.55.050) if solely used for affordable housing: an increase to property taxes specifically earmarked for affordable housing. (a) This option is more complicated and they Mayor would not recommend doing this since we have bank capacity. (4) Bond Issuance iii) Mayor Boudreau reviewed some of the ideas where this money could be allocated from rental assistance, shelter(s), capital investments, joint county projects, etc. iv) Other HB 1406 considerations must be made for the staff time allocated to managing the projects associated with this funding. c) Monthly Sales Tax, TBD Revenue, and Real Estate Excise Tax (REET) Review i) Director Volesky presented a brief over view of all three accounts. (1) Sales Tax and TBD Revenue continue to outpace budgeted expectations. (2) REET Tax is still below budgeted expectations. City of Mount Vernon Finance Committee August 28, 2019 4) Parks and Enrichment Services. a) Project Update i) Bakerview Roadway & Sidewalk Project is Currently Underway ii) Hillcrest Rehab (1) Repairing Asphalt and Landscaping damaged after Garden project (2) Currently repairing the asphalt iii) Hillcrest Walkway Project is nearly complete (1) Removed old walk way and lawn (2) Repaved the walkways (3) Re-sodded the lawn iv) Little Mountain Project is currently underway (1) They are currently clearing, leveling, and grading the entrance and parking area. v) Other Parks Projects (1) Pacific Quarry Reclamation Plan (2) Skagit Pickleball Club Project (a) Fundraised 32k of their 42k goal (3) Vaux House Sewer repair b) Recreation Update i) Director King gave an overview of some of the programs gearing up for this fall. ii) Director King thanked all the Volunteers who’ve contributed over 2293 hours so far this year. iii) Director King provide a brief over view on the Arts Commission activities c) City Work Program Update i) Continuing trend in fewer embedded camps requiring Notice to Vacate & more overnight messes. ii) Working on Trumpeter & Kulshan trails, Riverwalk, and assisting private residences with encampment issues. 5) For the Good of the Order a) None The meeting adjourned at 6:56 p.m. Submitted by: Chase Kinney Chase Kinney