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05/18/2021 - 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 May 18, 2021 at 5:00 p.m. PRESENT: Council members John Clauson, Beck Ashby, Mayor Rob Putaansuu, Director of Finance Noah Crocker, Public Works Director Mark Dorsey, Deputy Police Chief Donna Main, DCD, Nick Bond. The meeting was audio recorded. Finance Report The Finance Director discussed the Sales Tax and REET Revenue report The sales tax revenue collected April 2021 is at 27% over its 2021 budget and 20% over the 2020 actual sales tax revenue collected. Real Estate Excise Tax collected thru April 2021 is at $640,230. This represents approximately 46% of the biennial budget and approximately 264% 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 the all-fund balances, and the committee had no questions. The committee discussed timing of transfers to the stabilization accounts. The Finance Director reported he made 1/3 of the 2021 budgeted amount for stabilization transfer for all operating funds. He also transferred $250,000 from 001 to 002 as budgeted for preservation and operations. Police Grant The Kitsap County Sheriff’s Office is requesting to partner with South Kitsap Fire Rescue, Kitsap Mental Health, and the City of Port Orchard and its Police Department to seek a grant from the Washington Association of Chiefs and Sheriffs to fund a mental health field response team. The grant also requires the participation of a mental health professional, as defined in RCW 71.05.020(38), to perform field response professional services. The mental health professional may assist patrolling law enforcement officers either in the field or in an on-call capacity. The mental health professional may also provide preventative, follow- up, training on mental health field response best practices, or other services at the direction of the local law enforcement agency. If awarded, grant funds will be utilized to allow South Kitsap Fire & Rescue and Kitsap Mental Health to allocate existing FTE for the purpose of providing two full-time designated crisis responders (DCRs) and partial funding for a specialized fire/medic 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. response person. This would create new field response teams to provide services to benefit all partners, consisting of a DCR and fire/medical responder. Kitsap Mental Health will provide the DCRs, and South Kitsap Fire Rescue will provide the specialized fire/medical responder. With support from the grant funding, the Kitsap County Sheriff’s Office will provide additional support to this effort with its full-time crisis intervention officer (CIO). The Port Orchard Police Department will contribute the existing services performed by its shared Community Health Navigator as part of the program by continuing to provide services and follow-up to 1st responder referrals for behavior health and dependency issues. The goal of the program is to have two mental health field response teams, primarily focused on the south end of Kitsap County, with on-call twenty-four-hour coverage. It is intended to also increase the response/assessment opportunities that occur upon jail intake of subjects in crisis. Should the joint proposal be approved by WASPC, the collaborating agencies will develop an Interlocal Agreement to cover implementation and management. This will be provided to the Council for review, approval, or additional guidance. The pass-through grant funding will be managed by the Kitsap County Sheriff’s Office. The City is not expected to incur any costs. The funding period is July 1st, 2021, through June 30th, 2022. If the program remains successful, all participating agencies will intend to reapply in 2022. The Finance Committee was supportive of the grant submittal. Water CFC Code-Exceptions The Finance Director presented on the Water Capital Facility Charges and the chapter on exceptions. The Finance Committee reviewed the current CFC as well as the proposed alternatives. Staff is proposing Alternative D which is $11,571 cost per ERU which the was supported by the Finance Committee. The key distinction with alternative D is the use of a growth factor estimated by Department of Community Development. There was a review of the purpose for Water Capital Facility Charges under 13.04.030. The Port Orchard Municipal Code 13.04.030 (3) has criteria which need to be met to receive an exception. The finance committee discussed the exception code criteria. Furthermore, they discussed whether the code should be modified to consider historical connections which may not qualify for an exception under the current code during a re-developed project. The committee supported a further discussion regarding connections fee’s pertaining to older historical building and re- development. 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 Committee supported updating the CFC as planned at the 05.25.2021 meeting and updating this analysis as soon as possible. DCD discussed the rational for the implementation plan. The proposal is to have the new fees become effective on June 14, 2021. However, any project for which a building permit application was accepted by the City on or before March 1, 2021 shall only be required to pay the applicable water capital facility charges that existed immediately prior to the adoption of this ordinance (unless the building permit expires, or the application is cancelled). Additionally, this exemption shall only be available if those charges are paid in full by the applicant no later than close of business on August 31, 2021. The committee was supportive of this implementation plan as well. Bethel-Mitchel Design Amendment The Public Works Director is proposing adding ~ $200k for an additional stand alone alternative design for Bethel-Mitchel intersection which will be impacted by the Bethel- Lincoln roundabout. The $200k would be a change order to the current Skilling’s contract for this additional design and come forward in June. The proposal would be to re-appropriate from the currently budgeted TIP 1.5A of $450,000 to this design project. DCD advocated strongly to keep TIP 1.5A in the workplan as the community identifies this as a high priority project. There was some discussion regarding phasing the TIP 1.5A to fit within the current funding and allowing for the re-allocation. This discussion will be brought to the next Transportation Committee meeting. The Finance Committee is supportive of re-appropriating funds. Good of the Order The meeting adjourned at 6:05 pm.