Finance Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Finance Committee Information: 360.753.8244 Wednesday, February 8, 2017 5:00 PM Council Chambers 1. CALL TO ORDER Chair Cooper called the meeting to order at 5:04 p.m. 2. ROLL CALL Present: 2 - Chair Jim Cooper and Committee member Jeannine Roe Excused: 1 - Committee member Jessica Bateman 3. APPROVAL OF AGENDA The agenda was approved. 4. APPROVAL OF MINUTES 4.A 17-0145 Approval of January 11, 2017 Finance Committee Meeting Minutes The minutes were approved. 5. COMMITTEE BUSINESS 5.A 17-0119 Approval of the 2017 Finance Committee Work Plan Administrative Services Director Jane Kirkemo distributed copies of the work plan and pointed out meeting schedule conflicts in 2017 between Finance Committee and City Council off-weeks. An annual review of the investment policy was added to May. An annual review of utility rates was added to October. Chair Cooper asked for a report from the Olympia Metropolitan Park District (OMPD) advisory board before the OMPD advisory board reports to the full Council. He asked to schedule it in October as a placeholder. Committee member Roe moved, seconded by Chair Cooper, to forward the 2017 Finance Committee Work Plan to the full Council for approval on consent. The motion was approved. 5.B 17-0120 Oral Report - Review of 2016 Year-End Numbers Ms. Kirkemo reviewed preliminary year-end financial information. The City was $54,904 under budgeted revenues and $822,941 under planned expenses. Subtract City of Olympia Page 1 Finance Committee Meeting Minutes February 8, 2017 fund balance used in the 2017 budget and growth in the 10% reserve and there is approximately $345,000 available in excess of our 10% reserve. These numbers are very preliminary and will change prior to closing. When the Committee meets in March they must make recommendations for assignment of the balance to City Council. Staff presented the priorities suggested by Council during 2017 budget reviews. If the Committee recommends the original priorities made (without knowing the numbers), there is sufficient funding for legislative advocacy, art/cultural program enhancement, Comprehensive Plan implemetation, study of college education funding and regressive local tax structure, citizen engagement for community policing, and the downtown strategy. Committee member Roe said circumstances have changed and we need to re-look at priorities. The Committee will reassess during the March meeting. Chair Cooper asked City Manager Steve Hall about the OMPD interlocal agreement requirement of $500,000 for park land acquisition in the CFP or appropriated as a part of year-end fund balance. Mr. Hall reminded the Committee this was discussed last fall during the budget meetings. Staff's interpretation of the agreement is since no OMPD funds exist until May of 2017 that portion of the agreement, along with establishing the advisory review committee, will begin in 2017. The full 1% Non-voted Utility Tax should be appropriated in the 2018-2023 CFP. If sufficient funds do not exist then the Council would appropriate $500,000 from the 2017 year-end fund balance. Chair Cooper asked staff to prepare funding options to add an additional $500,000 in the 2017 CFP for park land acquisition. The report was received. 6. REPORTS AND UPDATES Ms. Kirkemo advised the Committee of the timing for 2017 elections. The deadlines for getting items on the ballot have already passed for the February and April elections. The City's deadline for the August 1 (primary) election is May 9. The City's deadline for the November 7 (general) election is July 25. Sales tax measures require 75 days notice to the Department of Revenue and collections can only begin at the beginning of the first, second or third quarters. Mr. Cooper recognized Ms. Kirkemo's upcoming retirement and thanked her for her many contributions and years of service to the City. 7. ADJOURNMENT Chair Cooper adjourned the meeting at 5:58 p.m. City of Olympia Page 2