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HomeMy WebLinkAbout08/15/2007 AGENDA FILE CITY COUNCIL 345 6th Street, Suite 600, Bremerton, WA 98337-1873 0 (360) 473-5280 AUGUST 15, 2007 CITY COUNCIL MEETING AGENDA 1. PRE-COUNCIL STUDY SESSION: 5:00 - 5:30 P.M. in COUNCIL CONFERENCE ROOM 603 A. General Council Business 2. CALL TO ORDER: 5:30 P.M. in CHAMBERS LOCATED ON FIRST FLOOR A. Pledge of Allegiance B. Invocation 3. MAYOR'S REPORT 4. PUBLIC RECOGNITION & ANNOUNCEMENTS 5. CONSENT AGENDA A. Claims & Check Register (#AB07-193) B. Minutes of Meeting - August 8,2007 (#AB07-194) C. Appointments of Donald Bolles and Sarah Bolles to the Community Development Block Grant Advisory Committee (#AB07-195) D. Resolution No. 3033, re-naming the new Police Headquarters "The Art Morken Building" (#AB07-196) E. Hiring of Court Services Manager at Band 15, Rate 3 (#AB07-197) 6. GENERAL BUSINESS A. Budget Adjustment of $19,000 (donated by Bremerton Central Lions Club) to Parks Department to construct a walking path and picnic shelter at Lions Park (#AB07-198) B. Ordinance No. 5021, amending Chapter 3.36 of the Bremerton Municipal Code to increase the minimum fund balance required in the Contingency Reserve Fund to $1,000,000 (#AB07- I 199) C. Resolution No. 3034, adopting updated Financial Goals & Policies for the City of Bremerton (#AB07-200) 7. COUNCIL MEMBER REPORTS 8. ADJOURNMENT OF CITY COUNCIL BUSINESS MEETING rI Americans with Disabilities Act (ADA) accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 by noon on the Monday preceding the Council meeting. CITY COUNCIL MEETING SPEAKERS LIST PLEASE NOTE THAT ALL REQUESTS FOR INFORMATION FROM THE CITY OF BREMERTON MUST BE SUBMITTED IN WRITING. THANK YOU. PLEASE PRINT YOUR NAME BELOW IF YOU PLAN TO SPEAK DURING THE COUNCIL MEETING TONIGHT fr( cK eor-ft-J ~ 1.J2f ~ 11 Jf fl/t-lC4"-A~ V//f , BREMERTON CITY COUNCIL MEETING 15 AUGUST, 2007 'PUBLIC COMMENT' by Helen Miller PO Box 788 Bremerton,WA 98337 SALUTATIONS: I WILL TAKE THIS OPPORTUNITY TO EXPRESS THE GRATITUDE OF CITIZENS OF OUR COMMUNITY TO KITSAP COUNTY SHERIFF STEVE BOYER AND BREMERTON POLICE CHIEF CRAIG ROGERS FOR THEIR SUPPORT, AND THEIR PERSONAL GENEROSITY IN GIVING UP THEIR OWN TIME ON SUNDAY THE 12TH OF AUGUST TO ATTEND A CITIZENS MEETING AT THE WESTGATE FIRE STATION TO EXAMINE POSSIBLE SOLUTIONS FOR THE REPORTED CONTROLLED SUBSTANCE ACTIVITIES WITHIN THAT COMMUNITY. I MUST NOTE THAT THIS WAS THE SECOND SUCH MEETING BY CITIZENS OF OUR COMMUNITY SEEKING SOLUTIONS TO COMMUNITY DRUG PROBLEMS - WITHIN THE SPAN OF WEEKS; AND SAOL Y I MUST ALSO NOTE THAT AT NEITHER MEETING WAS THERE A BREMERTON CITY COUNCIL REPRESENTATIVE NOR KITSAP COUNTY COMMISSIONER IN ATTENDANCE. THESE WESTGATE MEETINGS - TAKEN ALONG WITH SIMILAR NAVY YARD CITY PROBLEMS EMPHASIZE THE SEVERITY OF THE RED FLAG BEING RAISED BY CONCERNED CITIZENS REGARDING CRIME CONTROL AND PREVENTION IN OUR NEIGHBORHOODS. I PERHAPS THE APPLICABLE GOVERNMENTS MIGHT CONSIDER THE ADVISABILITY OF SHUNTING SOME FUNDING FROM MORE EXOTIC EXPENDItuRES TO ASSIST OUR SHERIFF AND POLICE CHIEF BY GIVING THEM MORE PEACE OFFICERS TO PATROL OUR STREETS ..... WITHOUT HAVING TO INCREASE THE CITIZENS ALREADY CRIPPLING TAX BURDEN. THE SUBJECT IS - CALLING CARDS FOR OUR SERVICEMEN OVERSEAS IN THE WAR ZONES. ANYONE WHO HAS AN OLD CELL PHONE THEY NO LONGER NEED - PLEASE DONATE IT TO PIONEER SERVICES - AT 3850 KITSAP WAY, SUITE 104 (NEAR THE FAMILY PANCAKE HOUSE) - PAMELA LADD, MANAGER, TEL: 360-405-6310. THE PHONES WILL BE CONVERTED INTO CALLING CARDS TO ASSIST THOSE CALLS HOME FROM OUR SERVICEMEN AND WOMEN. DATE SUBMITTED: BILL # 07 - /9..3 AGENDA BILL CITY OF BREMERTON CITY COUNCIL 5A I...............................................m..........................8............ SUBJECT: Committee Meeting Date: COUNCIL MEETING Date: August 15, 2007 Department: Financial Services Presenter: Cathy Johnson Phone: 473-5296 SUMMARY: Consent Agenda item. Approval of checks and electronic fund transfers. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): ll; APPROVALS: DEPARTMENT DIRECTOR: CITY AITORNEY: . FINANCE DIRECTOR: MAYOR: COMMI1TEE CHAIR COUNCIL PRESIDENT: AA)Jl4?{~ CONSENT AGENDA 0 GENERAL BUSINESS 0 PUBLIC HEARING 0 \. RECOMMENDED MOTION: Move to Approve I) Check #'8 318791 through 318955 and EFT's 7297 through 7311 in the amount of $1,085,086.23. 2) Regular Payroll for the pay period ending in the amount of COUNCIL ACTION: ~prove 0 Deny U Table ' o Continue 0 No Action DATE SUBMITTED: to; q (01 BILL # 0 7 - (cr 1- AGENDA BILL CITY OF BREMERTON CITY COUNCIL S'8 ........................................................................................ Committee Meeting Date: N/ A COUNCIL MEETING Date: Av~ US+- J S) .;loo 7 Department: City Council Presenter: Will Maupin, Council President Phone: (360) 473-5280 SUMMARY: Attached is a summary of the City Council Meeting held 1tc/~L(5t- 9; ;;Loo7 SUBJECT: City Council Meeting Minutes for meeting of A-v1VSf- fJ) 2007 ATTACHMENTS: Meeting Minutes for AUJ(,(Sf- a) ';>'007 FISCAL IMPACTS (Include Budgeted Amount): N/A APPROV ALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: Council President N/A N/A N/A COMMITTEE CHAIR COUNCIL PRESIDENT: Ne /t(~//(C?- CONSENT AGENDA GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to approve the Consent Agenda as presented. COUNCIL ACTION: 0 Approve 0 Deny 0 Table o Continue D No Action DIGITAL RECORDING CITY COUNCIL MEETING MINUTES . VVednesday, August 8, 2007 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER 345 6th Street, Bremerton, VVashington, VVednesday, August 8,2007, at 5:30 PM, with Council President Maupin presiding. Council members present were Nick VVofford, Carol Arends, Adam Brockus, Cecil McConnell, and Brad Gehring. Council Members VVendy Priest, Mike Shepherd, and Dianne Robinson were absent. Also present were City Attorney Roger Lubovich; Deputy City Clerk Cherie Henry; and Legislative Assistant Lori Smith. The Pledge of Allegiance was led by Council Member Brad GehrinQ followed by the invocation provided by Council Member Carol Arends. President Maupin announced that a Pre-Council Session to discuss General Council Business was held prior to the meeting to discuss general Council business and to hear a presentation by VVyn Birkenthal, Parks Director on "Conservation Futures Tax"funding collected by Kitsap County. PUBLIC RECOGNITION & ANNOUNCEMENTS - There were no comments or announcements... CONSENT AGENDA A. Check Numbers 318642 through 318790; and EFT-7280 through EFT-7296 in the amount of $908,044.87 for the period ending July 31,2007; and Regular Payroll in the amount of $786,413.09 for the pay period ending July 31, 2007 (#AB07-191) B. Minutes of Meeting - August 1, 2007 (#AB07 -192) 05:33:30 M/S/C/U (Arends/Brockus) Move to approve the CONSENT AGENDA as presented. President Will Maupin explained that the following item was first presented to the Council on August 1,2007; and that action was postponed until tonight. Now, Council would resume deliberation on Resolution No. 3032. GENERAL BUSINESS 5A - RESOLUTION NO. 3032. AUTHORIZING THE PLACEMENT OF THE QUESTION ON THE NOVEMBER 6. 2007 BALLOT REGARDING AN INCREASE IN THE CITY'S REGULAR PROPERTY TAX LEVY TO FUND SPECIFIED CITY PROGRAMS ("NEIGHBORHOODS NOW! REVITALIZATION INITIATIVE") (#AB07-190): Laura Lvon, Financial Services Director, reiterated that the next phase of revitalization for the City extends the renewal out to City neighborhoods, and there has been a considerable amount of time and consideration devoted to the development of the Neighborhoods Now! plan that has three major components: ~ Phase I focuses on parks (maintenance and development), community improvements, and sidewalks; ~ Phase II will zero in on preservation and repair of neighborhood streets; and ~ Phase III will bring it all together by connecting neighborhoods with some transformational trail projects. First up for Council action is Phase I. In order to provide funding for these proposed programs and activities, a proposition is recommended to be taken to the voters of the City of Bremerton in the upcoming general election on November 6,2007. Council approval of Resolution No. 3032 tonight would authorize a levy lift proposal to adequately fund programs that would: . Improve Maintenance of Existing and Future Parks & Recreational Facilities City Council Reg. Mtg. Minutes VVednesday, August 8, 2007 Page 2 of 3 . Renovate, Improve, and Develop Neighborhood Parks . Establish a Community Improvement Program; and . Improve and Construct New Neighborhood Sidewalks Mavor Bozeman first thanked the staff, led by Laura Lvon, Phil Williams, and Wvn Birkenthal, for the incredible amount of work they have put in for the last few years to develop solutions for the ongoing street maintenance and park maintenance funding needs, and community improvement. He understands it is difficult to ask people to raise their taxes, but he explained that this proposal will address the issues that the Council, Administration, and even citizens have determined to be important for the City. President Maupin opened discussion to the public... Ed Wolfe and Jerrv Reid expressed their support for this initiative and then introduced several members of the Bremerton Boys & Girls Club, including Sean Finch, Kavla Q'Brvan, Caden Guido, and Nicholas Smidt who each explained that all kids like parks and provided reasons why they think parks are important. Rev. Larrv Robertson agreed with the kids that parks are important for everyone and encouraged the Council to support this Resolution to place this item on the ballot. Guv Stitt admitted that he first wanted the City to improve streets, but now agrees that we all need parks, and the issues addressed in this plan are important Charmaine Parsons also agreed that parks were important, but offered suggestions for providing more control and security at the parks. Billie Schmidt, Branch Director of the Bremerton Boys & Girls Club expressed how important the parks are to children they serve and for all of their programs. Kellv Finch explained that as a parent, parks are very important in helping to raise kids. Jordv Ander with the Manette Neighborhood Coalition thanked the staff for their presentation and expressed the Coalition's support of this proposal. Odette Marshon also with the Manette Neighborhood Coalition asked if the City has plans to provide a dog park on the Eastside of Bremerton. Ms. Parsons cautioned the City not to combine a dog park with the same park as children for safety reasons. John Strauss reminded everyone that the issue tonight was not whether or not to support this Initiative but whether or not this issue should be placed on the ballot for approval by the voters. With no further requests to speak, President Maupin closed comment from the public at 6:08 PM... Mr. McConnell, Mr. Wofford, and Mr. Brockus asked for further explanation about when funding for street improvements can take place. Ms. Lvon and Mr. Williams responded that House Bill 1858 was passed by the Legislature this year but requires cities to wait 6-months before acting on it, which is January 22, 2008. So the City has to wait, but it allows time to collect citizen input before implementing Phase II of the plan. Mr. GehrinQ discussed the positive aspects of the new Community Improvement Program; and the prioritization of spending the funds. Also at his request, Mr. Birkenthal addressed details about the land acquisition in Anderson Cove; and Mr. Williams addressed details about sidewalk inventory. City Council Reg. Mtg. Minutes VVednesday,August8,2007 Page 3 of 3 Mr. Maupin expressed his support for placing this item on the ballot for the citizens to vote, and also thanked the Mayor and his staff for the proposal that has been presented. Mr. Brockus thanked everyone for their comments, and agreed that it was a good idea to place this item on the ballot. 6:26:53 M/S/C/U (Brockus/VVofford) Move to approve Resolution No. 3032, as amended, authorizing the placement of the question on the November 6, 2007 ballot regarding an increase in the City's regular property tax levy to fund specified City programs. VVith no further business, President Maupin adjourned the Council Meeting at 6:27 PM. L R SMITH Legislative Assistant Attest: PAULA JOHNSTON, City Clerk VVILL MAUPIN, City Council President VVM:PJ:ls:cg AGENDA BILL CITY OF BREMERTON CITY COUNCIL 6/IJ * 07 - /'1 5 DA TE SUBMITTED: August 2, 2007 5C mammam.BsD...aa......sBamamg.sasBBmBe..a...ama.m.a...a...agmam...g.m...aa..a..mma....... SUBJECT: Appointments to the Community Development Block Grant Advisory Committee Committee Meeting Date: August 8, 2007 COUNCIL MEETING Date: August 15, 2007 Department: Executive Presenter: Mayor Bozeman Phone: 473-5266 SUMMARY: There are two vacancies on the Community Development Block Grant Advisory Committee. It is recommended that Donald Bolles and Sarah Bolles be appointed to those vacancies. ATTACHMENTS: Applications for appointment available in the Mayor's office. FISCAL IMPACTS (Include Budgeted Amount): N/A CoV\'\yit\ ~ft-ee.til~ (r c,~ /Wif~ t/ ,AJk COUNCIL PRESIDENT: /tL)~P'..vT/(C>? ' RECOMMENDED MOTION: Move to confirm the appomtments of Donald Bolles and Sarah Bolles to the Community Development Block Grant Advisory Committee. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: --, CONSENT AGENDA ~ COUNCIL ACTION: [g] Approve 0 Deny 0 Table o Continue 0 No Action DATE SUBMITTED: July 27, 2007 BILL # 07 - { 9 (p AGENDA BILL CITY OF BREMERTON CITY COUNCIL 51> ma...BmB&~Bm.....SBm....a...BBB..&m.ma..mmaggmg8eB...maBa....gm.mgB...........B&a.~m..ql NO. 308 '3 SUBJECT: Resolution Regarding Police Building Name Committee Meeting Date: COUNCIL MEETING Date: Department: Presenter: Phone: August 8, 2007 August 15, 2007 Police Chief Rogers 473-5224 SUMMARY: Resolution No. 2964 passed on June 15,2005 naming the new police headquarters the 'Art Morken Law Enforcement Center' because both the municipal court and police station were going to be housed at the same location at that time. Co-location did not happen. The City Council desires to re-name the Art Morken Law Enforcement Center 'The Art Morken Building' because the Police Department is the sole building occupant. ATTACHMENTS: Resolution }l 0 i 3033 FISCAL IMPACTS (Include Budgeted Amount): None. COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA &, GENERAL BUSINESS D PUBLIC HEARING D RECOMMENDED MOTION: Move to pass resolution No. 303~ re-naming the new police headquarters 'The Art Morken Building'. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: COUNCil, ACTION: D Approve D Deny D Table D Continue D No Action RESOLUTION NO. 303..3 A RESOLUTION of the City Council of the City of Bremerton, Washington re-naming the new police headquarters "The Art Morken Building." WHEREAS, Art Morken dedicated 44 years to law enforcement in Bremerton and Kitsap County; and WHEREAS, he was responsible for instilling respect for law enforcement and was devoted to the children of the community; and WHEREAS, he is remembered by friends and colleagues as a "good cop," a friend to the kids and was respected by all; and WHEREAS, the City Council passed Resolution No. 2964 on June 15, 2005 naming the new police headquarters the "Art Morken Law Enforcement Center" because, at the time, it was anticipated that both the court and the police station were going to be housed at the same location; and WHEREAS, City Council desires to re-name the Art Morken Law Enforcement Center "The Art Morken Building"; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, W ASHlNGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The new police headquarters shall be re-named "The Art Morken Building" . SECTION 2. Severability. If anyone or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this Resolution and the same shall remain in full force and effect. SECTION 3. Efftctive Date. This resolution shall take effect and be in force immediately upon its passage. day of PASSED by the City Council of the City of Bremerton, Washington this _ , 2007. WILL MAUPIN, Council President 1 Art Morken Building APPROVED AS TO FORM: ATTEST: PAULA JOHNSTON, City Clerk ROGER A. LUBOVICH, City Attorney R:\Legal\Legal\Resolutions\Art Morken Building.doc 2 Art Morken Building '~.(, , ~ DATE SUBMITTED: August 2,2007 BILL # 07- /q 7 Sf AGENDA BILL CITY OF BREMERTON CITY COUNCIL mDsaBBBmS...8mSE8SSSS0SB.S..BE..umODmSBmSEBDs.mm..mos...mm..gam~.m...Bm&Bg.BmaB~E...BBP..Del SUBJECT: Hiring Court Services Manager at Band 15 Rate 3 . Committee Meeting Date: August 8, 2007 COUNCIL MEETING Date: August 15, 2007 Department: Municipal Court Presenter: JudgeDocter Phone: 473-5215 SUMMARY: Theresa Ewing has been selected as the Court Services Manager for the Bremerton Municipal Court. Ms. Ewing currently serves in the North Las Vegas Municipal Court and has seventeen years experience as a professional judicial employee (thirteen years as a supervisor). Her expertise with municipal courts is extensive and the Court believes it is appropriate to hire Ms. Ewing above Rate 1 in Pay Band 15. The Court is requesting City Council approval pursuant to BMC 2.50.032(a) to hire Ms. Ewing at Band 15 Rate 3. ATTACHMENTS: FISCAL IMPACTS (Include Budgeted Amount): The position. APPROVALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: COMMITTEE CHAIR COUNCIL PRESIDENT: ~. CONSENT AGENDA'Dl. GENERAL BUSINESS D PUBLIC HEARING D ~ RECOMMENDED MOTION: Move to approve the hiring of the Court Services Manager at Band 15, Rate 3 pursuant to BMC 2.50.032(a). COUNCIL ACTION: 0 Approve D Deny 0 Table D Continue 0 No Action Theresa A. Ewing COURT SERVICES :MANAGER Dedicated, creatIVc professional uffering 16 years of prugressnT expcncl1ce 111 muniCIpal court operatiuns cuupled w1th pending Bus111ess ,\dministratiun dq:;n:e. Cueer marked by partlll'nng with tc:un to deslt,rn and bUlle! multi-millIon dollar North Las Vegas JustICe Fanlity, and spearheading propnetary case management system C011\'('1"SI011 to CourtView. Recognized for executing mulriple simultaneous tasks on t11ne while deliH>nng supenor quality results. Exceptional communicator and relationship builder experienced in interacting \\7ith elected officials. Possess in- depth knowledgc of judicial, legislatiYe, and administratIYe processes. Thnve on opportunities to mill1mize potentially negative impact of court experiences on clients. Technically proficient in entire MS Office suite of applications. -. Project Management · Public Speaking · Legal Research & Analysis Professional strengths and abilities include: · Court Case Management Systems . Policy & Procedure Development . Civil / Criminal Law Knowledge · Staff Management · Training & Mentoring · Time Management PROFESSIONAL EXPERIENCE City of North Las Vegas Municipal Court; Las Vegas, NV 1991- Present MANAGER, COURT AUTOMATION & RECORDS (2000 - Present) Serve as integral member of Municipal Court Administrative staff through direct collaborations with Judges, Chief Marshal, and Court Administration to develop Court procedures and administer personnel issues. Ensure security, proper dissemination, and fmal disposal of all court records. Develop and present staffing, court performance, and improvement recommendation reports to Court Judicial and Administrative staff. Provide oversight and direction for three full-time and one part-time staff. Act as Court Administrator during Administrator's absence. Key Achievements: . Spearheaded four-year project to implement new case management system, CourtView, by working with four Clark County Courts to define system of requirements document, develop RFP, procure equipment, and initiate individual contracts within each court. Led North Las Vegas Municipal Court to be fIrst of 26 courts to implement case management system, and execute implementation on time and under budget. Increased productivity by 20% while capturing more data and facilitating higher ltTel of data retrieval for statIstical research through implementation of ne\v case 111..1nagement' system. . . Played key role in design and build of new, $27.9M, combined use North Las Vegas Justice Facility for Municipal Court and Detention :\dmlnistratlH' functions. Improved IT efficiency and productivity by Imp lemcnting HE/\. T program em bling rr team to log sen'ice calls on internet, pnoritizc ...>;ork f('lluests, and track workload. \\'orkload tracking contrIbuted to successful bId to hire additional System Techlllcian I dunng period of hiring freeze Collaborated \\lith team members to develop policy and procedure manual for I\luniClpaJ Court use. Partnered with courts state-wide to implement MC-IJIS interface system that facilitated mformatiun exchange :Ullong courts. Contributed to Court expansion through dCH'lopment of 11ew Job dcscnptl< J1le;. Sat on multiple oral boards county-\vide to hire court "taff and select pers( )nnc] for admlll1str:1tiw prolllotlOllS. . . . . . (JJl//ill/fl'rl fill PdO" ,) Theresa A. Ewing Professional Experience Continued... Page 2 of 2 TERMINAL AGENCY COORDINATOR (1994 - 2000) :'vfanagcd. monitured and cyaluated pcrfol1l1ancc, and adnlll11stered disClpline fur up to 10 personnel 111 warrant division. \\'orkccl with 'Teamster t:ninn Shop Stewards to lllterpret contract. Served oll1l1ultiple state agency COll111llttees concerning public safety ancl1ctjrisbtlve lllitlattvcs. Key A chic rem ell ts: . Prepared court for successful implementation of new case management system by rc-cngmcering and streamlining all court processes. . Enhanced court, city attorney, and detention employees' proficiency and effectiveness through development of training curnculum covering NCIC / NCJIS poliCles and procedures. . Created policy and procedure manual for court's warrant division. . Reduced redundancy in active warrant research process by streamlining \varrant service procedures. COURTROOM CLERK (1992 - 1994) COURT CLERK I (1991- 1992) Additional e."'<jJenence with Ciry of North LaJ VegaJ Police Department OJ Driller / Afwenger from! 989 to ! 99!. EDUCATION & CERTIFICATION Bachelor of Business Administration - University of Phoem.x; Expected] uly 2007 Court Management Program - National Center for State Courts; Completed 4 of 5 Courses Certified Management Program - City of North Las Vegas and University of Nevada, Las Vegas Leadership and Management Group (Invitation Only Course) - City of North Las Vegas Novell Network Engineer and Network Technician Certification Courses NCIC / NqIS Certified Instructor Development Certified COMPUTER PROFICIENCY Microsoft Office Suite... Corel Office Suite... Crystal Reports DATE SUBMITTED: August 1st BILL # () 7 - /.<1 <a AGENDA BILL CITY OF BREMER TON CITY COUNCIL 'A m.a...a.m..a.m....mBBamm......mDa......BBDDB.s.am.e..B8aUB..a..mB.amBa...S....BgBBa...RB SUBJECT: Budget adjustment of $19,000 to Parks and Recreation to construct Lions Park path and picnic shelter Committee Meeting Date: August 8th ,2007 COUNCIL MEETING Date: August 15th 2007 Department: Parks and Recreation Presenter: Wyn Birkenthal Phone: 473-5305 SUMMARY: The Bremerton Central Lions Club has made a donation $19,000 cash to the Parks Department for the construction of a paved walking path in Lions Park and the purchase an additional picnic shelter. The donation continues the Bremerton Lion's 48 year history of supporting the improvements to Lion's Park through donations and volunteer labor. This agenda item would adjust the Parks 2007 capital improvement budget by $19,000 and authorize the department to proceed with the path and shelter projects. The funds for the expenditure have been received. ATTACHMENTS: N\A FISCAL IMPACTS (Include Budgeted Amount): Annual maintenance of the shelter and path are expected to total $400 dollars per year. Some rental income will be derived from shelter reservations. APPROVALS: DEP ARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA D GENERAL BUSINESS~ PUBLIC HEARING D RECOMMENDED MOTION: Move to approve budget a adjustment in the amount of$19,000 to the Parks and Recreation Depmiment for construction of a walking path and picnic shelter at Lions Park. COUNCIL ACTION: D Approve D Deny D Table , D Continue D No Action DATE SUBMITTED: July] 8,2007 BILL # ---D / - I C'f_'1 AGENDA BILL CITY OF BREMERTON I t'.J CITY COUNCIL ~ .m~eBBa.aDmm.~gBm...~a&aBD..B..ag&mmBB~maBm.m...&Da...aaBm..........a..........B...aBaal SUBJECT: Ordinance No. '5 O~( amending Chapter 3.36 of the BMC increasing the minimum reserve fund balance required for the Contingency Reserve Fund Committee Meeting Date: 8/8/2007 COUNCIL MEETING Date: 8/15/2007 Department: Financial Services Presenter: Laura Lyon Phone: 473-5722 SUMMARY The City's Chapter 3.36 of the Bremertul1 Municipal code establishes a Contingency Reserve Fund to protect the City's General Fund in the event of unforeseen and unfunded emergency requirements. The required minimum level expressed in this chapter of $500,000 was established in 1995 and has not been revised since. The Revised Code of Washington (RCW) 35.44.145 restricts the accumulation of monies in contingency funds to $0.375 per $1,000 of total assessed valuation (A V). The limit for 2007 based on the current A V for the City of $2,692,388,791 is $1,009,645.80, therefore the Contingency Reserve minimum of $500,000 is currently well below this maximum amount. It is the recommendation of the Director of Financial Services that the City revise the City's financial goals and policies and Chapter 3.36 of the BMC regarding the minimum balance required for the Contingency Reserve Fund - increasing the minimum level to $1,000,000. ATTACHMENTS: Ordinance and Explanatory Memo. FISCAL IMPACTS (Include Budgeted Amount): None. Contingency Reserve is already funded at the required higher level of $1,000,000. APPROV ALS: DEPARTMENT DIRECTOR: CITY ATTORNEY: FINANCE DIRECTOR: MAYOR: -- ~' -- __ - ..0'''-"---' ,_ - .-~--". COMMITTEE CHAIR COUNCIL PRESIDENT: CONSENT AGENDA D GENERAL BUSINESS ~ PUBLIC HEARING D RECOMMENDED MOTION: Move to approve Ordinance No. 50d.-/ amending Chapter 3.36 of the Bremerton Municipal Code to increase the minimum fund balance required in the Contingency Reserve Fund to $1,000,000. COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action ORDINANCE NO. 5oJ-l AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 3.36 of the Bremerton Municipal Code entitled "Contingency Reserve Fund" relating to increasing the minimum reserve fund balance required to $1,000,000. WHEREAS, the City Council desires to amend chapters of the Bremerton Municipal Code relating to the established Contingency Reserve Fund in order to update the minimum fund balance required as deemed necessary to adequately provide for unforeseen and unflmded emergency requirements; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.36 of the Bremerton Municipal Code entitled "Contingency Reserve Fund" is hereby amended to read as follows: CONTINGENCY RESERVE FUND 3.36.010 ESTABLISHED. There is established a special revenue fund to be called the "Contingency Reserve Fund". The fund is established to protect the City's General Fund in the event of unforseen and unfunded emergency requirements. 3.36.020 AMOUNT AND SOURCE. The minimum Contingency Reserve Fund balance shall be established in the amount of $~O'(}';OOO".-oOI..,QQQ,Q_Q.Q"QQ. If at any time the cash balance of the fund is less than $500,00{},.OOlJ2m!",Q"QQ,im, a repayment plan shall be established by the Mayor and approved by the City Council to replenish the fund to its minimum level. The proceeds of sale of all general fund real property shall be deposited to the contingency fund. 3.36.030 ADMINISTRATION AND EXPENDITURE. The Contingency Reserve Fund shall be operated as a special revenue fund administered by the City Treasurer and the Mayor. All monies received by the fund, together with investment earnings thereon, may be expended only in the following manner: (a) Funds shall be expended only in the event of a bonafide emergency, which shall be defined as a significant crisis threatening the financial viability of the City. (b) A unanimous vote of the council shall be required to authorize fund expenditure. 3.36.040 EXCEPTION. Should the cash balance of the Contingency Reserve Fund at any time exceed $650,OO~l.OOO.()OO.OO, the excess cash may be used for capital purchases upon City Council approval by simple majority vote. SECTION 2. Severabilitv. If anyone or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 3. Effective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by law. PASSED by the City Council the day of ,2007 WILL MAUPIN, Council President Approved this day of ,2007 CARY BOZEMAN, Mayor ATTEST: APPROVED AS TO FORM: P AULA JOHNSTON, City Clerk ROGER A.LUBOVICH, City Attorney PUBLISHED the EFFECTIVE the ORDINANCE NO. day of day of ,2007 ,2007 R: \Legal\Legal\Ordinances\Finance\ContingencyReserve.doc =_=c.=.~'"_.,'~.," Me mora n dum To: From: Finance Committee Mayor Cary Bozeman Laura Lyon, Director of Financial servic~ Recommendation on Minimum Level of General Fund Financial Reserves Re: Date: June 5, 2007 The City of Bremerton financial goals and policies define what constitutes a "good outcome" for the City in regards to financial planning and decisions. The financial goals and policies establish a framework of financial health and stability and are designed to achieve financial sustainability and flexibility, demonstrate proper stewardship of public funds, and provide accountability. The goals for financial flexibility provide the following: Goals for Financial Flexibility - · Sufficient operating reserves (working capital) to manage monthly and daily cash flow variability. · Adequate liquidity to provide for limited interruptions in revenues (natural disasters, unexpected loss of revenue source, etc). · Contingency and reserve funds should be available for use in the event of emergency and/or unforeseen events. The policies then go on to describe the target levels of various operating and fund reserves deemed necessary to ensure these goals are met. Specifically, the current adopted policies provide the following: Policy - o The City will maintain reserves required by law, ordinance, and/or bond covenants. This policy statement reinforces the City's obligation to keep all mandatory reserves fully funded. This is most applicable to bond and debt reserves established by loan agreements and bond covenants. G The City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of total planned annual operating expenses. This policy directive provides liquidity equivalent to just a little over 30 days coverage of normal operating expenditures of the General Fund (30/365=8.2%) and provides adequate liquidity on an ongoing basis to accommodate the City's uneven cash flows, which are inherent with periodic tax collections. e The City will strive to maintain ending cash and investment balances of no less than 12% of total planned annual operating expenses for the Gold Mountain Golf Complex, Water Utility, Wastewater Utility, and Stormwater Utility. This policy directive provides liquidity equivalent to just a little over 45 days coverage of normal operating expenditures of the Enterprise Funds (45/365=12.3%) and provides adequate liquidity on an ongoing basis to accommodate the utilities and golf operations uneven cash flows, which naturally occur in operations that manage large capital projects (utilities) or have distinct seasonality in the generation of revenues (golf). e The City will strive to maintain a balance of at least $500,000 in the Contingency Reserve fund as a provision for unforeseen or catastrophic events and emergencies. This policy statement reinforces the City's BMC provisions in Chapter 3.36 which establishes a Contingency Reserve Fund to protect the City's General Fund in the event of unforeseen and unfunded emergency requirements. The target minimum balance of $500,000 combined with the budgeted 2007 General Fund ending fund balance of $2,758,067 equates to approximately 37 days coverage potential for average expenditures based on the adopted 2007 budget expenditures of $32,313,040. The Revised Code of Washington (RCW) 35.44.145 restricts the accumulation of monies in contingency funds to $0.375 per $1,000 of total assessed valuation (A V). The limit for 2007 based on the current A V for the City of $2,692,388,791 is $1,009,645.80, so the Contingency Reserve minimum of $500,000 is currently well below this maximum amount. The Director of Financial Services recommends that the City revise the policy regarding the target minimum balance for the Contingency Reserve Fund to increase the minimum level to $1,000,000. The current level of $500,000 was established in 1995 and has not been revised since. The statutory maximum has increased substantially since that time and affords the City an opportunity to evaluate and address (as necessary) the adequacy of the Contingency Reserve Fund amount. The Contingency Fund Reserve is projected to end the 2007 year with an unrestricted balance of $1,145,950. This amount is expected to be within the statutory limit based on the updated assessed valuations provided by the County Assessor at that time. If the minimum balance is increased to $1,000,000 as recommended - the City is already fully funded to that level and thus will not have to endure any financial pressure to meet the revised target level. According to the Government Finance Officers Association, it is considered best practice to maintain between 30 and 90 days of cash availability to cover expenses. The current days of coverage for the General Fund is just slightly above the minimum level in this range with the General Fund (by itself) having slightly more than 30 days cash coverage and when combined with the Contingency Reserve has approximately 37 days of cash coverage. By increasing the Contingency Reserve Fund minimum to $1,000,000 this combined cash coverage increases to approximately 43 days. 45 days of cash coverage for general govemment operations is in the middle of the recommended range. Increasing the Contingency Reserve to a level that achieves 45 days precisely would exceed the current statutory cap established by the RCW, so it is recommended that we increase the minimum balance for the Contingency Reserve close to the maximum currently permitted which brings the calculated days of coverage much closer to the mid range considered adequate by industry standard. This level should be periodically reviewed to consider whether it should be increased further as assessed values continue to increase - bringing the coverage factor solidly into the middle range of the recommended levels. The recommended change in the Contingency Reserve minimum level requires council approval by adoption of an ordinance that updates the BMC Chapter 3.36 and approval by resolution of an update to the City's Financial Goals & Policies. DATE SUBMITTED: Julyl8,2007 BILL# 07-;;Zo 0 AGENDA BILL CITY OF BREMERTON CITY COUNCIL ,c ....mm..a...mmGa...mm.....a...m...............sm.......................&.............881 SUBJECT: Resolution No. 303 "l adopting updated financial goals and policies for the City of Bremerton Committee Meeting Date: 8/8/2007 COUNCIL MEETING Date: 8/15/2007 Department: Financial Services Presenter: Laura Lyon Phone: 473-5722 SUMMARY The stewardship of public funds is one of the greatest responsibilities given to the City Council and the Administration of the City of Bremerton. The establishment and maintenance' of sound fiscal policies is an important part of fulfilling that expectation. The City previously adopted financial goals and policies by Resolution No. 2963 on June 1,2005. These guidelines have served the City well over the course of the past two years, however, it is important to periodically review these financial goals and policies to ensure they are continulting to meet the City's needs and are updated as needed. The proposed action repeals and replaces the existing financial goals and policies and withan updated version. Primary changes are to provide greater clarity on the internal service funds usage and expectations, and to increase the minimum balance target level for the Contingency Reserve from the current $500,000 to $1,000,000. ATTACHMENTS: Resolution with Exhibit and Explanatory Memo. NO i 303 4- FISCAL IMPACTS (Include Budgeted Amount): None. Provides guidance to financial planning and decisions for the City. COMMITTEE CHAIR COUNCIL PRESIDENT: APPROVALS: DEPARTMENT DIRECTOR' CITY ATTORNEY: FINANCE DIRECTOR: MA YOR: CONSENT AGENDA D GENERAL BUSINESS ~ PUBLIC HEARING D RECOMMENDED MOTION: Move to approve Resolution No. 3034 financial goals and policies for the City of Bremerton. adopting updated COUNCIL ACTION: D Approve D Deny D Table D Continue D No Action RESOLUTION NO. jQ3t A RESOLUTION adopting updated and amended financial goals and policies for the City of Bremerton. WHEREAS, the City Council and Mayor of Bremerton are committed to improving the City's financial management; and WHEREAS, the stewardship of public funds is one of the greatest responsibilities given to the City Council and the Administration of the City of Bremerton. Therefore, the establishment and maintenance of wise fiscal policies enables City officials to protect public interests and ensure public trust; and WHEREAS, the City Council previously adopted financial goals and policies by Resolution No. 2963 on June 1,2005 which are now in need of updating to provide greater clarity on internal service fund provisions and conform to BMC 3.36 as recently updated regarding the minimum fund balance required for the Contingency Reserve Fund; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The provisions of Resolution No. 2963 are hereby repealed and superseded in their entirety. SECTION 2. The financial goals and policies in Attachment A to this Resolution are hereby adopted. SECTION 3. Severabilitv. If anyone or more sections, subsections, or sentences of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the validity ofthe remaining portion ofthis Resolution and the same shall remain in full force and effect. SECTION 4. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. PASSED by the City Council of the City of Bremerton, Washington, on this _ day of 2007. WILL MAUPIN, Council President APPROVED AS TO FORM: ATTEST: ROGER LUBOVICH, City Attorney P AULA JOHNSTON, City Clerk R:\LEGAL\Resolutions\Finance\Financial Policy Resolution _2007 .doc 1 Financial Policy Resolution Attachment A - Resolution No. City of Bremerton Financial Goals & Policies The City of Bremerton is accountable to its citizens for the efficient use of public dollars. Resources entrusted to the Oty should be used in a manner that provides services, public facilities, and infrastructure necessary to meet the needs of the community - both for today and for the future. The following financial goals and policies establish a framework of financial health and stability that is required to meet those expectations. The goals expressed here define what constitutes a "good outcome" for the city in regards to financial planning and decisions. Goals indicate the objectives - while the policies describe actual boundaries (or measurable) that are deemed necessary to achieve those goals. Goals for Financial Sustainability- · Diversified annual resources that are sufficient to provide for the regular and ongoing operations associated with core city services - plus enough additional margins to cover debt service requirements and normal (average) ongoing capital expenditures. · Debt financing should be used to smooth the effects of unusual or significant amounts of capital expenditures and/or to finance facilities that are dedicated to the benefit of limited users (for example - Local Improvement District "LID"). Policy - · The budget and financial plans of the City shall balance recurring operating expenses, debt service, and average ongoing capital requirements to recurring operating revenue. Average ongoing capital requirements are defined to include payments necessary to the various Internal Service funds (i.e. ER&R, and Information Technology) and average recurring capital expenditures. · Before the City undertakes capital expenditures or accepts grant funds, the ongoing costs and commitments should be described fully including identification of the revenue sources expected to provide for such ongoing costs- so that proper consideration may be given to the longer term financial sustainability of the project or commitment. · Where possible, grants or contributions of capital will be identified for proposed City expenditures. e Deficit financing and borrowing will not be used to support on-going City services and operations. Expenses will be reduced to conform to the long-term revenue forecast. lnterfund loans are permissible to cover temporary gaps in cash flow, but only when supported by a clear expectation and schedule for repayment Page 1 of 4 April 22July, 200~1 Attachment A - Resolution No. over a short duration of time (3 years or less) and with interest assessed based on the current Washington State Local Government Investment Pool rate. lP Cash balances in excess of the amount required to maintain strategic reserves may be used to fund one-time or non-recurring costs. Preference should be given to uses that reduce ongoing expenses (for example - early retirement of debt). o Replacement Reserves based on expected replacement cost will be collected and placed in the Equipment Rental and Reserve Fund (ER&R) for equipment (other than computer equipment) or vehicles (other than fire engines) with a value of $20,000 or more if it is expected to be a continued need beyond its estimated initial useful life. The cost of computer equipment replacement will be included in the annual payments made to the Information Technology Fund (IT) for each computer by its using department. These payments are based on an expected five- year replacement schedule. In addition to ER&R and IT, other internal service funds may be established to appropriately account for and collect expenses for specific costs with the approval of the Director of Financial Services and the City Council. An amount equal to the annual fractional estimated cost of replacement based on the expected useful life of an asset will be included in the service charges paid by City departments to the various Internal Service funds (i.e. Equipment Rental & Reserve fund and Information Technology). Replacement cost will be reevaluated periodically throughout the life of the asset and replacement reserve charges adiusted accordingly. Assets with an initial value less than $20,000 may be included in the Equipment Rental and Reserve Fund upon request by the using department with the approval of the Director of Public Works and Utilities and the Director of Financial Services. .Replacement reserves based on historical value '.vill be established for any equipment, '/chicles, and computer equipment 'Nith a 'lalue of $20,000 or more if it is expected to be a continued necd beyond thc estimated initial useful life. l...n amount equal to the annual depreciation expense '"viii be included in the service charges paid by City departments to the various Internal Service bnds (i.e. Equipment Rental & Reservc fund and Information Technology) in order to provide for the future replacement cost of the asset acquired. i\ssets which have a value less than $20,000 may be included in the replacement reserves at the discretion of the responsible Department Director. · Long-term borrowing will be confined to significant capital improvements (or similar projects) which have an extended life and when it is not practicable to be financed from current revenues. All other available and appropriate sources of financing should be exhausted before long term borrowing is pursued. · Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the weighted average useful lives of the assets to be financed. The City will keep the average maturity of general obligation bonds at or below twenty years. · Where possible, the City will use special assessment revenue, or other self- supporting bonds instead of general obligation bonds. e The City Utility Systems shall strive to maintain a minimum debt service coverage (annual gross revenues less annual operating and maintenance expenses Page 2 of 4 April 22July, 200~1 Attachment A - Resolution No. divided by annual debt service) of the combined Utilities (Water, Wastewater, Stormwater) of at least 1.5x. Goals for Financial Flexibility - · Sufficient operating reserves (working capital) to manage monthly and daily cash flow variability. o Adequate liquidity to provide for limited interruptions in revenues (natural disasters, unexpected loss of revenue source, etc). · Contingency and reserve funds should be available for us~ in the event of emergency and/or unforeseen events. Policy - It The City will maintain reserves required by law, ordinance, and/or bond covenants. e The City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of total planned annual operating expenses. · The City will strive to maintain ending cash and investment balances of no less than 12% of total planned annual operating expenses for the Gold Mountain Golf Complex, Water Utility, Wastewater Utility, and Stonnwater Utility. · The City will strive to maintain a balance of at least $500,0001,000,000 in the Contingency Reserve fund as a provision for unforeseen or catastrophic events and emergencies. Goals for Stewardship of Public Funds - · Maintain public trust and confidence by utilizing resources in the most efficient manner possible. o Expenditures should be necessary to either: o meet regulatory requirements o provide core city services o contribute to the achievement of stated goals and policies o or undertaken in anticipation of an emerging requirement. Policy - · Budget managers will provide sufficient documentation to support requested budget appropriations and in a manner that clearly demonstrates that the expenditure is necessary to either meet regulatory requirements, provide core city services, or contributes to the achievement of stated goals or policies of the City. Page 3 of 4 l-\pril 22July, 200~1 Attachment A ~ Resolution No. III A comprehensive multi-year (minimum of six years) plan for City capital improvements will be prepared and updated annually. The Capital Improvement Plan will be consistent with and support the City's Comprehensive Plan. The Comprehensive Plan service level goals should be included in the Capital Improvement Plan. Goals for Accountability - Gl Reports demonstrating the status of financial activity and results should be prepared on a timely basis and in compliance with BARS and GAAP accounting requirements. · Reports showing the status of financial policy compliance should be provided periodically. · Ensure the legal use of public assets through an effective system of internal controls. To ensure all local, state, and federal rules are followed. Policy - · An annual audit will be performed by the State Auditor's Office and include the issuance of a financial opinion. A Comprehensive Annual Financial Report shall be prepared in accordance with generally accepted accounting principles (GAAP) and shall be distributed to the City Council, Mayor, Director of Financial Services, Department Directors, City Audit Committee, and any other interested party. · Quarterly a budget status report will be prepared and distributed to the City Council, Mayor, and Department Directors providing an overview of financial activities for the City with comparison to the approved budget. Information on the status of compliance with financial policies will be provided in this report. · Regular monthly financial statements will be prepared on a timely basis and posted for review on the City's internet and intranet site. · The City will maintain a budgetary control system to ensure compliance with the approved budget. · The City will maintain adequate internal controls to safeguard public assets. The Director of Financial Services will work cooperatively with the City's Internal Auditor and the Audit Committee to identify and address material deficiencies in internal controls. e The City shall manage and invest its residual cash through the City Treasurer on a continuous basis in accordance with the City's investment policies and within the guidelines established by the Washington State Statutes based upon the following order of priorities: I) safety, 2) liquidity, and 3) yield. Page 4 of 4 j~I-tiJ ulY, 200~.I Memorandum To: From: City Council Members Mayor Cary Bozeman II Laura Lyon, Director of Financial servicef Updates to the City's Financial Goals & Policies Re: Date: July 18, 2007 On June 1, 2005 the City adopted financial goals and policies for the City by Resolution No. 2963. These financial goals and policies define what constitutes a "good outcome" for the City in regards to financial planning and decisions. The financial goals and policies establish a framework of financial health and stability and are designed to achieve financial sustainability and flexibility, demonstrate proper stewardship of public funds, and provide accountability. At the time these policies were adopted, it was my stated intent to ensure that the City periodically undertook a review ahd update (or confirmation) process of these financial goals and policies - to ensure they remained appropriate and useful and to affirm the importance of using these policies and goals in conducting financial planning and in the daily conduct of business for the City. After a review process with the City Department Heads, the Mayor, and the. Finance Committee, only modest updates are recommended at this time. Specifically: . Under the goals for Financial Sustainability, the policy statements regarding the replacement reserves has been updated and replaced with language that is more precise on the two primary internal service funds that provide equipment replacement reserves (ER&R Fund and the Information Technology Fund) to provide additional clarity. The ER&R Fund provisions memorializes the previously evaluated and recommended exclusion of fire engines from the reserve and requires the concurrence of the Director responsible for these funds if exceptions are requested as permitted by the policy. . Under the goals for Financial Flexibility, the policy is recommended to be changed to conform with the recommended change to the BMC Chapter 3.36 - increasing the minimum balance of the Contingency Reserve from the current $500,000 to $1,000,000 (explanatory memo is attached on this subject). An ordinance for the amendment of Chapter 3.36 is currently being presented to the Council for consideration and approval. I am recommending that the City Council approve by resolution an update to the City's Financial Goals & Policies. Action is requested at the August 15, 2007 City Council meeting. The Finance Committee has reviewed these proposed changes. i Memorandum To: from: Finance Committee Mayor Cary Bozeman Laura Lyon, Director of Financial serViC{ Recommendation on Minimum Level of General Fund Financial Reserves Re: Date: June 5, 2007 The City of Bremerton financial goals and policies define what constitutes a "good outcome" for the City in regards to financial planning and decisions. The financial goals and policies establish a framework of financial health and stability and are designed to achieve financial sustainability and flexibility, demonstrate proper stewardship of public funds, and provide accountability. The goals for financial flexibility provide the following: Goals for Financial Flexibility - · Sufficient operating reserves (working capital) to manage monthly and daily cash flow variability. · Adequate liquidity to provide for limited interruptions in revenues (natural disasters, unexpected loss of revenue source, etc). · Contingency and reserve funds should be available for use in the event of emergency and/or unforeseen events. The policies then go on to describe the target levels of various operating and fund reserves deemed necessary to ensure these goals are met. Specifically, the current adopted policies provide the following: Policy - I) The City will maintain reserves required by law, ordinance, and/or bond covenants. This policy statement reinforces the City's obligation to keep all mandatory reserves fully funded. This is most applicable to bond and debt reserves established by loan agreements and bond covenants. Q The City will strive to maintain ending cash and investment balances in the General Fund of no less than 8.5% of total planned annual operating expenses. This policy directive provides liquidity equivalent to just a little over 30 days coverage of normal operating expenditures of the General Fund (30/365=8.2%) and provides adequate liquidity on an ongoing basis to accommodate the City's uneven cash flows, which are inherent with periodic tax collections. Cl The City will strive to maintain ending cash and investment balances of no less than 12% of total planned annual operating expenses for the Gold Mountain Golf Complex, Water Utility, Wastewater Utility, and Stormwater Utility. This policy directive provides liquidity equivalent to just a little over 45 days coverage of normal operating expenditures of the Enterprise Funds (45/365=12.3%) and provides adequate liquidity on an ongoing basis to accommodate the utilities and golf operations uneven cash flows, which naturally occur in operations that manage large capital projects (utilities) or have distinct seasonality in the generation of revenues (golf). o The City will strive to maintain a balance of at least $500,000 in the Contingency Reserve fund as a provision for unforeseen or catastrophic events and emergencies. This policy statement reinforces the City's BMC provisions in Chapter 3.36 which establishes a Contingency Reserve Fund to protect the City's General Fund in the event of unforeseen and unfunded emergency requirements. The target minimum balance of $500,000 combined with the budgeted 2007 General Fund ending fund balance of $2,758,067 equates to approximately 37 days coverage potential for average expenditures based on the adopted 2007 budget expenditures of $32,313,040. The Revised Code of Washington (RCW) 35.44.145 restricts the accumulation of monies in contingency funds to $0.375 per $1,000 of total assessed valuation (A V). The limit for 2007 based on the current A V for the City of $2,692,388,791 is $1,009,645.80, so the Contingency Reserve minimum of $500,000 is currently well below this maximum amount. The Director of Financial Services recommends that the City revise the policy regarding the target minimum balance for the Contingency Reserve Fund to increase the minimum level to $1,000,000. The current level of $500,000 was established in 1995 and has not been revised since. The statutory maximum has increased substantially since that time and affords the City an opportunity to evaluate and address (as necessary) the adequacy of the Contingency Reserve Fund amount. The Contingency Fund Reserve is projected to end the 2007 year with an unrestricted balance of $1,145,950. This amount is expected to be within the statutory limit based on the updated assessed valuations provided by the County Assessor at that time. If the minimum balance is increased to $1,000,000 as recommended - the City is already fully funded to that level and thus will not have to endure any financial pressure to meet the revised target level. According to the Government Finance Officers Association, it is considered best practice to maintain between 30 and 90 days of cash availability to cover expenses. The current days of coverage for the General Fund is just slightly above the minimum level in this range with the General Fund (by itself) having slightly more than 30 days cash coverage and when combined with the Contingency Reserve has approximately 37 days of cash coverage. By increasing the Conting~ncy Reserve Fund minimum to $1,000,000 this combined cash coverage increases to approximately 43 days. 45 days of cash coverage for general government operations is in the middle of the recommended range. Increasing the Contingency Reserve to a level that achieves 45 days precisely would exceed the current statutory cap established by the RCW, so it is recommended that we increase the minimum balance for the Contingency Reserve close to the maximum currently permitted which brings the calculated days of coverage much closer to the mid range considered adequate by industry standard. This level should be periodically reviewed to consider whether it should be increased further as assessed values continue to increase - bringing the coverage factor solidly into the middle range of the recommended levels. The recommended change in the Contingency Reserve minimum level requires council approval by adoption of an ordinance that updates the BMC Chapter 3.36 and approval by resolution of an update to the City's Financial Goals & Policies.