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09/17/2018 - 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 Council Chamber Meeting Room at City Hall on September 17, 2018 at 5:15 p.m. PRESENT: Chairman John Clauson, council members Beck Ashby and Shawn Cucciardi, Mayor Rob Putaansuu, Finance Director Noah Crocker, The meeting was audio recorded. Finance Report Finance Director Crocker presented the sales tax collection report in a new format to simplify and better reflect the sales tax revenue and REET information. The Finance Committee approved the new format. The sales tax revenue collected thru the end of August 2018 was 8.0% over its 2018 projection. It was noted that there was 0% growth in actual sales tax from August 2017 to August 2018. Real Estate Excise Tax has remained strong for 2018, with total year-to-date collections at $474,818. Although, when compared to the same time period for 2017, it is approximately $105,462 less. REET still remains higher than the 5 year average. The committee reviewed cash reports and identified the City as having healthy fund balances at this time. There was discussion that in future meetings the finance director will bring some tables identifying all obligations along with the fund balance reports. The intent is to demonstrate that the fund balance will be factored into all future obligations. Tremont Widening Project Finance Director Crocker provided members the Tremont Widening Project Construction Finance Plan. The committee walked through the expenditure plan and compared year-to-date budget to year-to-date actuals. Thus far, the project has spent approximately $9.130 million. For Tremont it was identified that, at this time, the project budget is anticipated to grow to approximately $18.5 million; which is over its current authorized expenditure authority. The Finance Department is working with public works to identify the expenditures and potential funding sources for these overages. It was also communicated that all sources budgeted and planned to include the contingencies for this project have been exhausted and the project will need additional funding. 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. The Finance Department identified that public works have brought a significant amount of change orders for this project, which a new standardized template is attempting to capture and make more transparent. The plan will be updated monthly and, as the project progresses, expenditure trends will become more apparent. Capital Project Status Updates Finance Director Crocker provided members a review of all capital projects utilizing the project management spreadsheet. They discussed any change orders and additional funding needed for projects. Several of the projects currently do not have complete funding in the budget. However, the Finance department has identified additional funding sources to fully fund the projects. These budgets will be amendments as a part of the final budget amendment in December. The Park Impact Fee Fund, Recreation Reserve Fund, REET funds and Transportation Impact Fees will used to fully fund the projects. Budget Timeline and Process • September received department request • October 1st goal to have the Mayors Budget, including both Operational and Capital • Mid-October Revenue Hearing • Director Meetings will follow the Mayors budget with finance committee and council Equipment Rental and Revolving Fund: The Finance Director described the progress and process with the ERR. Completed: • Adopt Ordinance establishing the ERR Fund--- COMPLETED • Adopt an ERR Policy--- COMPLETED Next Steps: • Adopt Budget Amendments to move current cumulative Equipment Reserves to the ERR Fund • Monies from funds 303, 402 and 422 to Fund 500 • Adopt 2019-2020 Budget of Rental Payments to Fund 500 for the following: • Replacement • Operations • Maintenance • Adopt 2019-2020 Budget for Capital Purchases and Vehicle Replacements 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. Good of the Order: • Mayor discussed a meeting with the West Sound Utility District • Mayo r discussed a meeting with the County and co-locating public safety The meeting adjourned at 6:25 pm. Next meeting October 16, 2018 at 5:15 p.m.