Finance Committee

City Hall Meeting Minutes 601 4th Avenue E Olympia, WA 98501 Finance Committee Information: 360.753.8244 Wednesday, January 19, 2022 5:30 PM Online and Via Phone Register to Attend: https://us02web.zoom.us/webinar/register/WN_q-MoRg7sSserUS2nG7-4wg 1. CALL TO ORDER Chair Parshley called the meeting to order at 5:30 pm. 2. ROLL CALL Present: 2 - Chair Lisa Parshley and Committee member Yến Huỳnh Excused: 1 - Committee member Jim Cooper 3. APPROVAL OF AGENDA The agenda was approved. 4. PUBLIC COMMENT - None 5. APPROVAL OF MINUTES 5.A 22-0078 Approval of December 15, 2021 Finance Committee Meeting Minutes The minutes were approved. 6. COMMITTEE BUSINESS 6.A 22-0048 Development Fee Cost of Service Study Community Planning and Development Director Leonard Bauer gave the update of a recent Development Fee Cost of Service Study conducted by Financial Consulting Services (FCS Group). Mr. Bauer and FCS Group consultants Martin Chaw and Luke Slaughterbeck reported the study found that, under existing development permit service fees, the City was recovering between 64 percent (in 2018) and 76 percent (in 2019) of its costs, versus its goal of 85 percent recovery of costs. The level of cost recovery is forecasted to range from 71 to 79 percent in four years of the 2021-2025 period, and up to 103 percent in 2023, depending upon the level of development fee and building activity. Going forward, the study recommends that the City: City of Olympia Page 1 Finance Committee Meeting Minutes January 19, 2022 1. Annually adjust its fees consistent with increases in the City’s labor contracts, and annually update the building valuation schedules. 2. Regularly monitor development activity, revenue collected, and cost recovery levels. 3. Update this study every three to five years to ensure fees reflect changes in City staffing and organizational processes. 4. Establish a fund balance target for the Development Fee Fund and assign responsibilities for balancing in the event revenues don’t come in as budgeted or expenses are higher than budgeted. The Committee agreed with the study recommendations as presented. The recommendation was recommended for approval. 6.B 22-0064 2022 Finance Committee Workplan Discussion Finance Director Aaron BeMiller lead the discussion. The Committee worked on filling in topics of discussion for the remainder of 2022. Mr. BeMiller will present the updated work plan at the February 16 Finance Committee meeting. The discussion was completed. 7. REPORTS AND UPDATES Mr. BeMiller reported the Finance Team is working on a new monthly report format for the Committee and it should be ready in time for the February meeting. 8. ADJOURNMENT The meeting adjourned at 7:33 pm. City of Olympia Page 2