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10/20/2017 - 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 October 20, 2017 at 7:30 a.m. PRESENT: Chairman John Clauson, members Beck Ashby and Shawn Cucciardi, Mayor Putaansuu, Finance Director Noah Crocker, The meeting was audio recorded. Finance Report Finance Director Crocker presented the sales tax collection report that reflects an additional 2.5% collection over projection for revenue received in September. Total collection for the month of September is $403,185. October data was not included as the month is not yet complete. For the year, sales tax collected is over projection by $163,476, a 4.69% increase over projected collection. Real Estate Excise Tax has remained strong throughout the year with total year-to-date collections at $691,611. This amount exceeds the 2017 budgeted REET revenue by approximately $91,611. October data was not included as the month is not yet complete. The committee reviewed cash reports and identified that the city has healthy fund balances at this time. 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. Mr. Crocker pointed out that Finance has identified some discrepancies from what was planned for the category of Construction administrations, inspection and support. In this category, the planned expenses were noticeably different than the actual expenditure paid year-to-date. The difference was approximately $50,000 in expenses over budget. He stated that this is an excellent example of the usefulness of this tracking mechanism. This will help Finance and Public Works to better identify and manage project spending. Furthermore, due to the identification of the amount, Finance would go back and investigate and discuss with Public Works. The plan will be updated monthly and as the project progresses, expenditure trends will become more apparent. 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. Mid-Biennial Review: The Committee discussed the Mid-Biennial Review from the most recent study session and were provided a summary of budget amendments that had been discussed at the meeting. Mr. Crocker stated on November 14th the City would hold a public hearing and bring forth the budget amendments discussed with a brief presentation and staff report. Revenue Hearing: The Revenue Sources Hearing (RCW 84.55.120) is scheduled for October 24th. The committee reviewed the proposed presentation materials and made suggestions and changes. Furthermore, Mr. Crocker confirmed he would bring forth the Property Tax Levy Ordinance and Certificate to the November 14th council meeting for adoption. Salary Cola Review: Mr. Crocker provided the committee information regarding the upcoming salary adjustments for COLA’s of unionized employees. Teamsters contracts, listed below, were based on CPI with a minimum of 1.8% increase and a maximum of 2.5%. CPI as defined in the contract equaled 3.0%, thus all contracts would be at their maximum. The Port Orchard Police Guild Contracts listed below was not based on CPI, instead is included at a set increase of 2.3%. Historically non-union represented employees received COLA’s based off of the teamsters contract. Mr. Crocker confirmed he would bring forth a resolution requesting non-represented (Exempts and Non-Exempts) employees to receive a COLA of 2.5% at the November 14th council meeting. • Teamsters Public Works Contract: 2.5% • Teamsters Municipal Court Contract: 2.5% • Teamsters Police Support Staff: 2.5% • Police Guild Patrol Officers Contract: 2.3% • Police Guild Sergeants Contract: 2.3% • Non-Union Representatives (exempt and non-exempt): 2.5% Furthermore, it was stated that the current biennial budget was calculated to include all the rate increases shown above. Electronic Signatures on Checks: In an effort to gain efficiency, the Finance department will be moving toward electronic signatures on checks. Finance will work with the Mayor, Clerk and Finance Director to obtain signatures to be used in the software to produce electronic signatures on the checks. Nothing else in the approval process will be changed. GAAP vs CASH: Mr. Crocker wanted to discuss changing the City from GAAP reporting to CASH reporting. There was some discussion about the benefits of changing from GAAP to 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. CASH. He stated that he would bring back more information to a future finance committee meeting for further discussion and consideration. The meeting adjourned at 8:45 am. Next meeting November 21, 2017 at 5:00 p.m.