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11/20/2018 - 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 Mayor’s Conference Meeting Room at City Hall on November 20, 2018 at 5:15 p.m. PRESENT: Council members Beck Ashby and Shawn Cucciardi, Mayor Rob Putaansuu, Director of Finance Noah Crocker, The meeting was audio recorded. Finance Report The sales tax revenue collected thru the end of October 2018 is at 8.6% over its 2018 projection. Real Estate Excise Tax has remained strong for 2018, with total year-to-date collections at $656,373. Although, when compared to the same time period for 2017, it is approximately $131,742 less. REET still remains higher than the 5 year average. The committee reviewed a fund balances and had no questions or concerns. 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 $10.5 million and is anticipated to be complete by June. AP Authority Policy-Resolution Finance Director Crocker provided members a description of the disbursing funds policy and resolution for the study session. The City desires to pay its claims and obligations in a timely manner to meet the city’s business needs. The current process for approving claims and releasing payments to obligated parties is structured around the timing of council meetings. The timing of council meetings does not necessarily meet the business practices of the city or the vendors that work for the city. City staff have worked to create a Policy for the Disbursement of Funds prior to council approval including proper expenditure controls. The purpose of the policy is to delegate authority to the finance department to release payments to obligated parties as a function of city business. This requires maintaining proper internal controls in accordance with the State Auditors requirements as well as controls to meet council approval. 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. This policy will allow the executive branch of the city to operate and pay claims on a business need irrespective of the timing of council meetings. It maintains the requirement for council approval on all claims approved for payment. After reviewing the process in detail the finance committee did not have concerns regarding the policy and resolution and felt comfortable bringing it forward to the full council. Budget Status and Capital Projects Update Finance Director Crocker provided a power point presentation on the Budget Status report with the following highlights: Operating Highlights • For the General Fund YTD the City collected 101% of its biennial budget • For the General Fund YTD the City spent 85% of its biennial budget • For the General Fund All Departments are below their expenditure capacity • For the Street Fund YTD the City collected 97% of its biennial budget • For the Street Fund YTD the City spent 83% of its biennial budget • For the Water-Sewer Fund YTD the City collected 103% of its biennial budget • For the Water-Sewer Fund YTD the City spent 86% of its biennial budget • For the Storm Drainage Fund YTD the City collected 95% of its biennial budget • For the Storm Drainage Fund YTD the City spent 80% of its biennial budget Capital Projects Highlights • Water Projects: o Well station #9 is nearly complete o Well station #13 has recently started and is incurring expenses. • Sewer Projects : o McCormick Pump Station #2 Design work is nearly complete o Tremont has spent more than its current authority. A Budget Amendment will be needed for this before the end of the year. o Marina Pump Station Design will need a budget amendment before the end of the year. o Bay Street Pump Station has incurred some minimal costs. • Storm Projects: o Annapolis Creek 30% Design is complete and there will be a presentation at the November 20th study session. Not all invoices have been received. o Tremont which has nearly exhausted its current authority. A Budget Amendment will be needed for this before the end of the year. 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. • Park/Facility Projects: o McCormick Woods Park is nearly complete, and a budget amendment will be required before the end of the year. o Rockwell Park has incurred some expenses and will require a budget amendment before the end of the year. • Transportation Projects: o Bay St Pedestrian Path-Segment #3 will require budget amendment before the end of year. o Old Clifton/Anderson Hill Intersection will require budget amendment before the end of year. o Tremont Widening is progressing and still has budget authority. o Bay St Ped-ROW and Easements still has budget authority. o Bay St Ped-Rockwell Property still has budget authority. Good of the Order: 1) Mayor discussed desire and topics for next council retreat The meeting adjourned at 6:05 pm.