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HomeMy WebLinkAbout100818CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL WORKSHOP MEETING OF OCTOBER 8, 2018 CALL TO ORDER The Port Townsend City Council met in workshop session on the 8th day of October 2018 in Council Chambers at 540 Water Street. Mayor Deborah Stinson called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Robert Gray, Amy Howard, Ariel Speser, Deborah Stinson, and Michelle Sandoval with Pamela Adams, and David Faber excused. Staff members present were City Manager David Timmons, Finance and Administrative Services Director Nora Mitchell, Finance Manager Sheila Danielson, Development Services Director Lance Bailey, Police Chief Michael Evans, and City Clerk Joanna Sanders. DISCUSSION ITEMS Equipment Rental and Replacement Finance and Administrative Services Director Nora Mitchell gave a presentation on the history of the Equipment Rental and Replacement Fund (ER&R) and its current status. Following the ER&R analysis by FCS Group in 2007, Staff worked on policy changes in the fund, including separating the replacement funds. Issues that have been identified are not fully funding operations and maintenance, co -mingling funds, and not apportioning the additional police fleet mechanic and IT staff to the departments benefiting from those expenses. The results to the General Fund reflect a negative balance of $342,000. Only the IT shortfall is built into the 2019 budget and financing options are under review. Following discussion and no council objection, Staff agreed to bring back ordinances to rescind the current policy and adopt the new policy. Proposed Budget Priorities for 2019 Finance Manager Sheila Danielson reviewed detailed changes to the supplemental budget. She noted the ER&R proposed changes are not yet incorporated into the 2019 budget. Total supplemental appropriations comprise a total of $1.6 million. At the last meeting, there was a review of proposed revenues. Some of the revenues have been reduced slightly (sales tax and B&O tax projections). She then reviewed the balance of the Council Reserve Fund summary. The 2019 budget is primarily status quo with changes as mentioned to the ER&R funds and 2% cost of living City Council Workshop Meeting October 8, 2018 Page 1 of 2 increases. The Deferred and Unfunded Items lists continue to be under review by departments. The formal budget presentation is scheduled for November 5. Update of Long Range Financial Forecast with Preliminary Budget Numbers Ms. Mitchell reviewed the long-range financial forecast detailed report. Permanent financing is being sought for Parks, Streets and Library and are part of the updated Strategic Plan. The Library level of service study would be coming forward to Council when complete. Mr. Timmons responded to questions about the timing for developing a facilities district. There was Council interest in more information on deferred and unmet needs. ADJOURN There being no further business, the meeting adjourned at 8:02 pm. Attest: Joanna Sanders, MMC City Clerk City Council Workshop Meeting October 8, 2018 Page 2 of 2