Finance Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Finance Committee Information: 360.753.8244 Tuesday, November 20, 2018 5:30 PM Council Chambers Special Meeting 1. CALL TO ORDER Chair Cooper called the meeting to order at 5:32 p.m. 2. ROLL CALL Present: 3 - Chair Jim Cooper, Committee member Jessica Bateman and Committee member Lisa Parshley 3. APPROVAL OF AGENDA The agenda was approved. 4. PUBLIC COMMENT Larry Dzieza spoke. 5. APPROVAL OF MINUTES 5.A 18-1108 Approval of October 25, 2018 Finance Committee Meeting Minutes The minutes were approved. 6. COMMITTEE BUSINESS 6.A 18-1089 Budget Snapshot - Special Accounts and Special Funds Fiscal Services Director Nanci Lien provided a budget snapshot on special accounts and funds. She briefed the Committee on terminology, use and restrictions. The information was provided. 6.B 18-1109 Discussion of the Preliminary 2019 Operating and Capital Budgets City Manager Steve Hall led a discussion on staff’s responses to the Committee's recommended changes to the 2019 proposed budget. Following is a list of the topics and Committee recommendations. City of Olympia Page 1 Finance Committee Meeting Minutes November 20, 2018 Operating Budget 4th/Columbia Property. The Finance Committee discussed adding a new project page to the Final 2019-2024 Capital Facilities Plan. The plan will recognize $500,000 in funding from the Economic Development Fund. Parks Impact Fees. The Finance Committee recommended adopting a parks impact fee ordinance based on the new formula and applying a legislative discount to the 2019 fees to reflect 2018 rates. Housing Stimulus Proposal The Finance Committee discussed the following items related to the housing stimulus proposal: 1. Impact fee legislative discounts to be discussed in 2019. 2. Low income housing impact fee waiver scheduled for Council action on December 11. 3. School and transportation impact fee reductions scheduled for Council action on December 11. 4. Multi-family tax exemption boundaries discussion for Land Use and Environment Committee on December 20. 5. Developing new categories of parks/transportation impact fees for missing middle-type housing. Firefighter Transition to Core Duties. The Finance Committee recommended including $283,000 in the 2019 baseline budget using $150,000 of 2018 Fire Department operating expenses and projected 2018 General Fund savings. Firetruck Replacement. The Finance Committee agreed to schedule a Finance Committee meeting February 20, 2019 to discuss a financing plan. The intent is to order the fire trucks in time to avoid steel tariffs which will save approximately $600,000 in the purchase price. Overall Fire Needs. The Finance Committee agreed to schedule a Finance Committee discussion on February 20, 2019. REET for Homeless Services. The Finance Committee recommended revisiting the use of REET for homeless capital needs after Public Works receives information on grant applications worth $1.8 million. Budget Stabilization Account Funding. City of Olympia Page 2 Finance Committee Meeting Minutes November 20, 2018 The Finance Committee recommended funding the new budget stabilization account as the highest priority for year-end funds. B & O Tax Adjustments. The Finance Committee recommended using 2018 budget savings to cover the $44,000 revenue gap created by adopting the required model ordinance. Capital Budget Administrative Services Director Debbie Sullivan lead a discussion on the proposed changes to the final Capital Facilities Plan and 2019-2024 financial plan. Tree Maintenance. The Finance Committee recommended reallocating $23,000 from Building Repair and Maintenance to tree maintenance in 2019. Transportation Impact Fees. The Finance Committee recommended appropriating $873,317 of transportation impact fees in 2019 to complete the Henderson Boulevard and Eskridge Boulevard intersection improvement project. Ms. Sullivan confirmed the funding was accounted for in the 2020-2024 financial plan. New CFP Project Pages. New pages, along with the financial plan, will be included in the final CFP for the following projects: § Home Fund Capital § 4th/Columbia Property § Tree Maintenance Committee member Bateman asked staff to address Councilmember Rollins' budget requests during the November 27 Council meeting and to add the Police Auditor topic to a future 2019 Finance Committee meeting. The discussion was completed. 7. REPORTS AND UPDATES The next Finance Committee meeting is scheduled for Wednesday, December 19. At this time the only item on the agenda is a discussion of the 2019 draft work plan. 8. ADJOURNMENT The meeting adjourned at 7:00 p.m. City of Olympia Page 3