09/21/2021 - MinutesCity of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held via Zoom link September 21,
2021 at 5:00 p.m.
PRESENT: Council members John Clauson, Beck Ashby, Shawn Cucciardi, Mayor Rob
Putaansuu, Director of Finance Noah Crocker, Steve Havert Network Administrator.
The meeting was recorded.
Finance Report
The Finance Director discussed the Sales Tax and REET Revenue report.
The sales tax revenue collected August 2021 is at 33 % over its 2021 budget and 24% over
the 202o actual sales tax revenue collected.
Real Estate Excise Tax collected thru August 2021 is at $1,544,909. This represents
approximately 110% of the biennial budget and approximately 272% of what was
budgeted for collections for 2021 YTD.
The Finance Director reviewed all the fund balances including the monthly budget
report and the committee had no questions. The Finance Director discussed the
transfer of $677k from the Fund 304 returned to the REET 2 fund as a part of the
completion of the Tremont project.
Audio Visual System Update
The audio/video equipment in the Council Chambers, at the beginning of the year, was
over to years old and was not meeting the needs of the city. Early in the year, after
identifying a vendor pursuant to the City's procurement policies, Staff engaged a vendor
to assist in upgrading the video equipment. One assumption at the time this project was
initiated was that the city would return to in -person meetings in 2021, and the project
moved forward under that assumption. The project included the installation of new
cameras, TV monitors and new video control system.
At the completion of the aforementioned project, the city began a second project to
upgrade the audio capabilities in the Council Chambers. This second project upgraded
the audio processing equipment and provided new capabilities but fell short of the city's
newly arising needs in terms of handling virtual meeting environments (i.e. Zoom). As a
workaround, the IT Department implemented a "Zoom cart" (TV monitor on mobile
stand, camera and microphone) to enable Zoom meetings in the Council Chambers.
While these projects were in process, the success of virtual City Council meetings
became apparent and Council authorized a continued hybrid model of a combined on -
premise / virtual meeting during the pendency of the emergency, to comply with the
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.
Governor's Proclamations. At the direction of the Mayor, the IT Department identified
local audio/video vendors with existing State of Washington master contracts (through
the Department of Enterprise Services (DES)) and solicited proposals for merging the
on -premise audio/video capabilities in the Council Chambers with a virtual meeting
environment.
One identified vendor, Avidex, supplied a proposal consistent with the DES master
contract, based upon an on -site visit and in-depth analysis of our current environment
and needs. The proposal was attached and reviewed by the Finance Committee. The
Finance Committee was supportive of bringing the contract forward to the next council
meeting. The estimated cost $65-$7ok.
City Hall Amendment
The Mayor reviewed the additional request for the City hall including PV Array, Police
Station renovation, ADA counters for the Court and front end reception. The total
estimated cost is — Wk. The Committee discussed the alternatives and were
supportive of the proposal.
Budget Mid -Biennial Schedule
The finance director reviewed the schedule for the mid -biennial review. The review
started in September with the Directors reviewing their budgets and providing
modifications as requested. The Finance Committee will review the budget on Oct 7
followed by the full council on October 19th with a public hearing held on the October
19th. The intent is to have the final budget adjustments adopted at the Oct. 26th
Meeting after the end public hearing meeting.
Good of the Order
The mayor discussed the community center, DNR lease, Dept of Commerce and
funding. The Finance Director let the Finance Committee know the governor's order is
set to expire and the city is moving towards shutting off water. Additionally, he shared
the pressure the utility is experiencing with the growth of additional housing and the
department might be seeking an additional position in the future.
The meeting adjourned at 5:56 pm.
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.