07/16/2019 - MinutesRole of the Finance Committee
The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range
financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought
before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the
transportation benefit district.
City of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held in the Mayor Conference Meeting
Room at City Hall on July 16, 2019 at 5:30 p.m.
PRESENT: Council members John Clauson, Beck Ashby and Shawn Cucciardi, Mayor
Rob Putaansuu, Director of Finance Noah Crocker, Human Resource Coordinator,
Debbie Lund, Director of Community Development, Nick Bond
The meeting was audio recorded.
Finance Report
The sales tax revenue collected thru July 2019 is at 4.6% over its 2019 budget and 3.22%
over the 2018 actual sales tax revenue collected.
Real Estate Excise Tax collected thru July 2019 is at $554,518. This amount was
adjusted from previous discussion to reflect the change to cash reporting. Which means
we are reporting when the cash is received and recorded in that time period. This
represents approximately 40% of the biennial budget and approximately 38% of what
was budgeted for collections for 2019. The committee reviewed a fund balances and had
no questions or concerns.
Finance Director discussed sending out monthly budget reports to the full council.
Tremont
The Mayor discussed the progress of the Tremont project. Paint was put down and next
to come is thermoplastics as well as other punch list items. There will be an ordinance
brought forward to accept the $1.3 million grant award in the near future.
Affordable Housing Bill 1406
The Finance Director discussed Affordable Housing Bill 1406 and what it does. The
Finance committee discussed the bill and advocated the discussion be brought forth to
the study session and prepare the City to adopt a resolution of intent.
ERR & Purchase Updates
The Finance Director discussed an ERR Ordinance coming forward to approve vehicle
purchases in accordance with the procurement procedures established by the City
Council. All the vehicles on the list were approved in the Budget process and are
consistent with the Fleet Standardization Policy. Finance Committee was supportive
and had no questions.
Sunshine Fund
The Finance Director discussed the need to eliminate the Sunshine Fund. The State
Auditor’s Office discussed the nature of the fund and agreed it is a legacy fund that
Role of the Finance Committee
The finance committee provides oversight of city budgeting, financial planning, and financial reporting. The committee recommends long-range
financial goals along with funding strategies for the operating and capital budgets. Human resource issues requiring policy direction are brought
before the committee. The committee serves as the advisory forum for transportation and street maintenance funding, and funding relating to the
transportation benefit district.
should be eliminated. The Finance Director suspended all future donations to the fund
and discussed using these donated funds for the public benefit and consistent with the
nature of the funds purpose. The fund will be eliminated this fiscal year and had a
balance of less than $300 in it. Finance Committee was supportive.
HR Policy Updates
The Human Resource Coordinator discussed the need to correct and clarify policies and
make some code corrections. Affirmative Action in the municipal code needs to be
repealed as it doesn’t match current laws. There is an ordinance being brought forward
that clarifies the council’s intent in the medical incentive for the wellness program. The
mayor will be updating the Cafeteria Policy which the City has in place. Lastly, the
group discussed the organization and staffing. The Mayor discussed the plan and need
to recruit and hire a full time IT manager. This will require an ordinance to increase the
FTE count to 1.5 as we will have a full time and a part time employee over the next year.
Additionally, the new chief is inquiring about the need for another sergeant in the near
future to have proper shift coverage as well as possible shift schedule changes. Mayor
wants to evaluate our relationship with the fire marshal. Lastly, there may be a future
ask for more administrative support for the mechanic and/or an additional mechanic.
Debbie also mentioned a temporary employee was hired to cover for an employee that
went on maternity leave. Finance Committee was supportive.
Climate Resiliency Study
The DCD director discussed a Climate Resiliency study the City could partner with the
County on which will help the City apply for shoreline master use program. The report
will consider the probability of impacts on our local regions and take a holistic view of
Kitsap County and its participating entities. If the City desire to partner with the county
the consultant would complete a City of Port Orchard specific chapter as apart of this
work. The cost is estimated at $10,000 and the DCD director believes he can manage
this additional expense within his current budget authority. The mayor would sign the
ILA to go forward if the council thinks it makes sense. The Finance Committee was
supportive and advocated for the Mayor and DCD director to go forward with the
partnership.
GIS Update
The Finance Director discussed the three-phase approach to improving our GIS system.
Thus, far the project is moving forward, and we will need to re-allocate some of the
budget funds from stage 3 to stage 1 as the set up took more work than we anticipated.
The budget adjustment will be a renewal with AWC GIS consortium for $2500. Finance
Committee was supportive.
The meeting adjourned at 6:20 pm.