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06/15/2021 - 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 remotely with all participants using Zoom on June 15, 2021 at 5:00 p.m. PRESENT: Council members John Clauson, Beck Ashby, Shawn Cucciardi, Mayor Rob Putaansuu, Director of Finance Noah Crocker, Public Works Director Mark Dorsey, Police Chief Mike Brown, DCD, Nick Bond, Debbie Lund, Human Resource Manager. The meeting was audio recorded. Finance Report The Finance Director discussed the Sales Tax and REET Revenue report. The sales tax revenue collected May 2021 is at 31% over its 2021 budget and 25% over the 2020 actual sales tax revenue collected. Real Estate Excise Tax collected thru May 2021 is at $752,935. This represents approximately 54% of the biennial budget and approximately 238% of what was budgeted for collections for 2021 YTD. The committee reviewed a fund balances and had no questions or concerns. The Finance Director reviewed all the fund balances and the committee had no questions. The committee discussed timing of transfers from the general fund to the street fund. The Finance Director proposed executing some of the 2022 biennial transfers in 2021 to provide a complete biennial look at the fund balance. The committee was supportive of either approach. Personnel The mayor discussed the need to create a human resource specialist position. As a part of the creation of this position the proposal is to defund the administrative assistance position. The mayor reported the city is working on hiring a Building Official. The mayor discussed the need for the city to hire 2 additional public works personnel and 1 public works laborer. Next, the Mayor discussed creating a new position, assistant planner for DCD. Lastly, the Mayor discussed a lateral incentive program for Police recruits. The Finance Committee was supportive of additional employees as well as looking at creating an incentive if needed. Water CFC Code-Exceptions The Finance Director presented on the Capital Facility Charges and the chapter on exceptions. The Finance Committee reviewed the current CFC and discussed alternative methodologies for charging (ERU’s vs METER Size). The finance director proposed 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. three alternatives to addressing the methodology for establishing the ERU for the purposes of determining exceptions to the CFC fee. The city staff is still evaluating all options and are not ready to bring forward a recommendation. The Committee discussed the draft alternatives and were supportive of using a current ERU count methodology. At this time, the finance committee would prefer the topic be discuss at the next upcoming utility committee meeting in July after all questions have been fully vetted. The Finance Director agreed the team needed more time to review, evaluate, and make a recommendation to the committee’s and council. Good of the Order The meeting adjourned at 6:00 pm.