06/03/2015 - MinutesCity of Port Orchard
Council Finance Committee
A meeting of the Council Finance Committee was held at City Hall June 3, 2015 at 5:00 p.m.
PRESENT: Chairman John Clauson, members Rob Putaansuu and Jerry Childs, Mayor Tim
Matthes, Clerk Brandy Rinearson, Treasurer Allan Martin, and Nick Whittleton.
Chairman Clauson called the meeting to order at 5:00 p.m.
Finance Report
Treasurer Martin reported the overall sales tax revenue was up 1.44% over year-to-date
projections. The amount overall was $23,532. Real estate excise tax collection was up year-over
a-year by $24,000 and bested the five-year average by $30,000. The city is on track to meet or
exceed the $320,000 projected revenue budgeted and derived from real estate excise tax. The
Washington State Forecast Council reported strong real estate excise tax statewide but cautioned
that it may lessen in coming months and may not be sustainable at the current level. The Council
discussed local real estate sales and housing stock availability at the higher end of the housing
market and not so in the more moderately priced properties. Currently the city has a strong cash
flow position but on the expenditure side will need to monitor prisoner boarding costs. One
substantial prisoner medical bill payable by the city was reported.
The 2014 Annual Financial Report was presented to the committee as part of its submittal to the
state auditor’s office. The committee’s attention was directed to Management Discussion and
Analysis (MD&A) discussion as the narrative portion that describes and explains the numerical
data presented in the report. Reductions (negative) numbers are due to recognized annual
depreciation, and less grant activity as compared to 2013. General Fund Budgetary Highlights
on page 7 provides that revenue endrf the year ahead of the budget 1.9%. Sales taxes collection
increased $23,759 and property tax increased by $1,821. Expenditures were 92.4% of the
amended budget. This keeps with the city’s conservative budgeting practice of estimating
expenses high and revenue low.
2015 first half year Budget Amendments will be presented at the next upcoming council meeting
for action. Members were informed of the following amendments.
(1) Estimated Appropriations:
a. $19,500 from Water/Sewer Fund No. 401 for continued Water/Sewer GAP
Analysis professional services provided by Katy Isaksen and Associates.
b. $1,600 from Current Expense Fund 001 for additional landscape services
provided by Progressive Landscapes LLC.
c. $15,100 from Current Expense Fund 001 for the Marina Park Restroom Security
Modification Project.
d. $31,000 from Street Capital Improvement Fund No. 304 for the continuation of
the Bay Street Pedestrian Pathway Project with N.L. Olson & Associates, Inc. for
Design Documentation activities needed for the project's right-of-way phase.
e. $4,000 transfer from Current Expense Fund No. 001 Recreation Reserve to
Capital Construction Fund No. 302 for expenditures relating to the Paul Powers
Park Interim Improvement Plan Ad Ready PS&E with N.L. Olson & Associates.
f. $5,500 from Current Expense Fund No. 001 for continued partnership with the
Port of Bremerton in the Construction of a covered structure located at the
Observation Area of Marina Park.
(2) Estimated Revenues:
a. $13,935 to Current Expense Fund No. 001 from a Washington State Parks and
Recreation Commission Recreational Boating Safety Federal Financial
Assistance grant.
The Committee was provided a list of upcoming surplus items owned by the general fund and
proprietary funds.
Court Video System County Jail Administration
A Memorandum regarding Video Court Interface from Court Administrator Hunt outlining the
aging and failing condition of the municipal courts video equipment was reviewed. The video
links with the Kitsap County jail and used for video hearings where the defendant is housed in
the jail and not physical transported to City Hall for their hearing in front of the judge. The city
has used legacy equipment that will no longer be supported by the County system. Three options
were offered by the Court Administration. 1) Purchase the equipment required to continue
video hearings. 2) Direct staff to include funding in the 2016 budget while acknowledging that
the system may fail before this occurs. 3) Eliminate the video system process and transport
inmates to and from the jail and court. After discussing various cost scenarios committee
members recommended pursuing option No. 1.
Records Management Software
Clerk Rinearson presented the record management system that her office is considering.
Funding is provided in the 2015 budget. The department manages 7,250 paper files and over
14,000 electronic files. Information technology archives all electronic emails and documents and
the barracuda archiving system archives 1400 emails a day. The department deals with non-city
issued email accounts used by volunteers, city interns, and Council members. Added into the mix
are social media contacts, text messaging, images, screenshots, video, and audio recording of
meetings. The new system is meant to reduce the cost of managing records, save time, space, and
money. It will identify vital records and provide for their protection and reconstruction. It will
meet legislative and audit compliance issues thereby avoiding costly fines and penalties, provide
a reliable recording system, and improve discovery and public records request preparedness.
Risks should be abated and more manageable, and limit risk through retention scheduling.
Transparency, trust, and reputation will be increased for the city. The cost is estimated to be $99
per month following the initial set up of $1,000.
The Committee thanked Ms. Rinearson for her continued due diligence and her presentation.
Meeting was adjourned at 5:41.