06/28/2016 - MinutesCity of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held at City Hall on June 28, 2016 at 7:30
a.m.
PRESENT: Chairman John Clauson, members Bek Ashby and Shawn Cucardi, Mayor
Putaansuu, Engineer Mark Dorsey, and Treasurer Allan Martin.
Finance Report
Treasurer Martin discussed the sales tax revenue report that is currently 15% over projection for
the most recent collection period, stating that the month of June was a catch up month from the
month before that showed 2% over projection. The city is in alignment with the state collections
that are equally as strong.
The current expense cash flow for May had an ending balance of $2.5 million, which is a strong
end to the first half of the year.. However, the city is about to enter into the heavier spending
months caused by capital project spending, and police guild labor contract negotiations remain
open. Treasurer Martin compared the years beginning balance to May’s ending balance and
clarified that the city looks at actual fund balance versus on an accrual basis.
Member Ashby asked that Impact Fee Fund balances be shown on future reports. Public Works
Director Mark Dorsey reported that permit activity was up with several pending. These permits
have a positive effect on impact fee collect.
The city has received its first half property tax revenue. Real Estate Excise Tax (REET)
collection is on track to meet 2016 projection. Mr. Dorsey spoke to project costs that will have
an impact on REET fund balance.
Information Technology Upgrade Status: Seitel has mapped the building for wireless routers as
well as CCS pulling in the wire to the various stations. $1,500 has been spent on Seitel so far.
The bids for the equipment necessary for the wireless upgrade is $7,418. Treasurer Martin has
requested recommendations regarding warranties and internet speed from Seitel, and is hoping
to have the first phase of upgrades to be completed early July.
Interviews for the Information Technology Specialist part time position were completed and a
viable candidate was identified. An offer has been extended to the individual, and the city is
planning on a mid to late July start date. Treasurer Martin discussed the candidates qualifications
in relation to what the city was seeking.
Tremont Widening Project Finance Plan Development: Mr. Martin discussed the various finance
segments involved in the Tremont Project financing. The expenditures are continuing to be fine
tuned along with timing of construction payments. Treasurer Martin discussed the best option for
obtaining bonds in relation to the other available funding sources.
The CIP might need reorganized to best arrange projects with funding options. Public Works
Director, Mark Dorsey, walked the committee through the various portions of the project and the
costs involved in each. The committee discussed the information and how the TBD fees might
impact the funding, as well as the different grant, loan, and bond options available.
Administration
Kitsap Fire District Interlocal Agreement (ILA): The mayor discussed the information handout
included in the packet in regards to a ILA. The costs associated with paying a portion of the fire
district inspector or the costs of hiring a city employee to provide fire inspection services. The
point was discussed on why the city would help pay for that employee when other jurisdictions
do not. The mayor explained that the city’s land use / building inspector duties were different
from the fire districts inspector services. Committee members brought up that they didn’t want
citizens to be charged fees that they would otherwise not pay if they lived outside the city.
Office Building 720 Prospect Street: The mayor brought before the committee several different
options available to expand City Hall. One of the options includes buying 720 Prospect Street
and possibly moving a department into the location. Such as permitting services. Another option
is to expand the current city hall building, or to look for a new, separate location for the police
department. The mayor will obtain additional information for the council in helping to make an
informed decision.
The meeting was adjourned at 8:39 a.m.
Next meeting
Pending