Salt Lake County Council s6

Salt Lake County Council Committee of the Whole ~Minutes~ Tuesday, June 7, 2016 1:38:45 PM

Committee Members Present: Richard Snelgrove Jennifer Wilson Jim Bradley Arlyn Bradshaw Michael Jensen Sam Granato Steven DeBry Aimee Winder Newton, Vice Chair

Excused: Max Burdick

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Citizen Public Input (1:38:45 PM)

No one appeared for Citizen Public Input.

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Mayor’s Budget Presentation (1:31:37 PM)

Mr. Doug Macdonald, Economic Consultant, Econowest Associates, and Jeff Thredgold, Thredgold Economic Associates, delivered a PowerPoint presentation regarding economic conditions globally, nationally, and locally. Utah job growth moderated from 3.8 percent in 2015 and is projected to be between 2.9 percent to 3.6 percent in 2016; after rising from $518 million in 2011 to $1.1 billion in 2015, Salt Lake County home building values have slowed down; and due to low gas prices and strong job growth, Utah new car and truck sales are still expected to grow between 2 percent and 6 percent.

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Mr. Rod Kitchens, Director, Planning & Budget Division, Mayor’s Office, continued the PowerPoint presentation by reviewing sales tax revenue projections, property tax revenues, motor vehicle fee-in-lieu taxes, recorder fee revenues, and the General Fund revenue summary.

Council Member Snelgrove asked what the tax rate was for Airbnb and Uber and what effect they had on County taxes.

Mr. Kitchens stated he did not know, but would look into it and report back to the Council. In summary the 2015 revenues established a high baseline, which will be hard to grow over. However, projections for 2016 remain strong, but will be lower than 2015. The June budget adjustments are generally positive for tax revenues. The property tax revenue and rates will not be final until next week.

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Mr. Darrin Casper, Chief Financial Officer, Mayor’s Office, continued the PowerPoint presentation. He reviewed program shifts, FTE issues, new requests and an analysis/structural balance/big picture of the budget. He stated new requests were only considered if they were exigent in nature. The goal of this budget was to maintain ending fund balances at adopted levels. There is a proposal within the budget to combine Mayor’s Operations and Mayor’s Administration funds.

Council Member Newton asked why this change would happen mid-year and not during the regular budget sessions.

Mr. Casper stated this change is completely technical. There is no increase in funding. In summary, all funds are budgeted at or above minimum reserves as required by policy; most major tax funds are above original adopted fund balance levels; the economy continues to grow, but at a slower pace; and Salt Lake County finances remain in excellent condition.

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Other Post-Employment Benefits (OPEB) Annual Plan (3:02:56 PM)

Mr. Darrin Casper, Chair, Board of Trustees, Other Post-Employment Benefits (OPEB) Trust, presented the 2015 Annual Report of the OPEB Trust. The responsibility of the trustees is to manage the trust for its intended purpose. It is an irrevocable trust set up to hold assets for outstanding OPEB obligations. The County’s OPEB obligation continues to rise, and this year went up by $1.5 million. The goal of the trust fund is to accumulate assets to lessen the County net obligation, or eventually to start reversing that trend.

The trust consists of an investment account and an operating account. Moreton Asset Management handles the investment account and will invest for the long term. These monies are designed to accumulate value and ultimately to cover the costs of the County’s OPEB obligations. The operating account monies are invested in the Public Treasurers’ Investment Fund (PTIF). His office will make almost daily payments into this account to pay for OPEB benefits. It will also receive frequent payments from plan participants or County organizations that participate in the plan. The goal of the operating account is to slowly accumulate monies and then transfer those excess monies to the investment account. The board has set up a minimum reserve of $250,000 in the operating account. If assets exceed the $250,000 level, money will be transferred to the investment account. This year, the board voted to transfer $240,000 of excess reserves from the operating account to the Moreton account. The trust had a very successful first year of operation.

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Review of Proposed Hires (3:08:14 PM)

Mr. Brad Kendrick, Budget & Policy Analyst, Council Office, reviewed the following proposed hires:

Agency Position

2 Committee of the Whole Tuesday, June 7, 2016

Human Resources Division Internal Services Manager 28

Facilities Services Division Plumber 22/24

Parks & Recreation Division Recreation Program Coordinator 19/21/23

Office of Township Services Senior Policy Advisor

Office of Regional Development Assistant Fiscal Manager 34

Sheriff’s Office Cash Accounting Specialist 13 2 Jail Clerks 15

Youth Services Division Public Relations Coordinator 24 Part-time Youth Worker 21

Salt Lake County Health Department Medical Assistant 15 2 Program Specialists 16

Behavioral Health Services Division Quality Assurance Manager 30

Aging & Adult Services Division Ombudsman 22

Criminal Justice Services Division 5 Case Managers 24

Library Services Division Construction & Maintenance Specialist 17 4 Part-time Library Shelvers 11 Part-time Customer Service Specialist 15

Animal Services Division Animal Services Operations Manager 33

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Reclassification (3:08:36 PM)

Mr. Brad Kendrick, Budget & Policy Analyst, Council Office, reviewed the following reclassification request:

Planning & Development Services Division

Request to reclassify a Plans Examiner 22/24/26/28 position to an Inspector 26/28 position.

Council Member Bradshaw, seconded by Council Member Wilson, moved to approve the reclassification and forward it to the 4:00 p.m. Council meeting for formal consideration. The motion passed unanimously.

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Council’s Contribution Utah Film Center Fire Recovery Fundraiser (3:09:09 PM)

Council Member Bradley stated on March 29, 2016, a fire destroyed the building housing the Utah Film Center. He asked the Council to contribute $1,250 to help the Film Center re-establish an office building and a place to conduct business. This donation will go to a fundraiser being held by the Film Center and matches a similar contribution made by the Mayor’s Office. He also disclosed that he is a founding member and long-time board member of the Utah Film Center.

Council Member Bradley, seconded by Council Member Bradshaw, moved to approve the contribution and found the County received fair and adequate consideration for the contribution and forward it to the 4:00 p.m. Council meeting for formal consideration. The motion passed unanimously.

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County Authority Over Utah Transit Authority Funding (3:11:26 PM)

Council Member Wilson stated Utah Transit Authority (UTA) closed its meetings to the public, and in doing so, created discussions among the Council as to what oversight authority Salt Lake County has over the $150 million pass through tax.

Mr. Jason Rose, Legal Counsel, Council Office, stated the State Auditor released an alert in June 2014, stating money that flows through the County, even if it does not come directly to the County, should be recognized as a revenue and expenditure on the financial statements of the County because the County imposed the tax. The County has an agreement with UTA that the money will go directly from the state to UTA. The Council has limited power to investigate or audit UTA. The state statutes and interlocal agreement with UTA specifies the $150 million has to be used for the purpose it was imposed for.

Council Member Jensen stated the other counties along the Wasatch Front contribute to UTA. The Council has no authority over how those funds are used. He asked how the money contributed by Salt Lake County would be segregated when looking into transportation that goes in and out of other counties.

Mr. Rose stated an ordinance would need to be adopted to audit outside of the express statutory authority. The Council would need to work with stakeholders to determine the extent of the audit.

Council Member Bradley stated the Council needs to determine what course of action it is going to take. He asked if the goal was to find out how and where the money is being spent or to send a message that it is inappropriate to close public meetings.

Council Member Snelgrove stated the taxpayers of Salt Lake County want to feel comfortable and know how the $150 million per year is being spent. It is good for UTA to recognize that the Council has authority to investigate.

Mr. Rose stated another provision is that UTA bonds for some projects. The Council would need to review the interlocal with UTA and bond holders before taking any action related to that money.

Mr. David Delquadro, Chief Financial Manager, Council Office, stated in 2007, the Council passed the following legislative intent:

It is the intent of the Council to receive annual reports from the Utah Transit Authority (UTA) regarding the amount of sales tax revenue generated to help fund the commuter rail line and the four additional light rail lines referred to in the December 2007 Inter-local Cooperating Agreement. The annual reports will commence in 2015, and will identify the annual amount of the Part 17 sales tax (one-quarter of one percent) generated and the annual expenditures financed by that tax.

Legislative intent continues to be rolled over year after year with no modifications made. The Council can modify it to include auditing the funds.

Council Member Wilson stated she would like UTA to walk the Council through expenditures of funds, and if the Council is not satisfied then it could pursue an investigation.

Council Member Wilson, seconded by Council Member Snelgrove, moved to circulate the legislative intent and request UTA present the Council with its report. No vote was taken on this motion.

Mr. Delquadro stated UTA posts a comprehensive annual financial report (CAFR) online, and has the same budget year as the County. The Council has the opportunity to be more collegial by having the Debt Review Committee meet with UTA representatives and review the annual reports; then, present the findings to the Council.

Council Member Bradley stated it is important to approach UTA in a collaborative matter. There has been no attempt to have dialogue or an exchange of information and ideas between the Council and UTA. He would like the Debt Review Committee to understand what the Council’s concerns are, meet with UTA, and present the findings to the Council.

Council Member Jensen stated $150 million is technically Salt Lake County’s money, and as such, the County should have a seat at the table. Currently, Salt Lake County has no say in how the money is being spent.

Council Member Wilson, seconded by Council Member Snelgrove, moved to direct the Debt Review Committee to meet with UTA asking for clarification of the $150 million regarding inflow and expenditures. The Debt Review Committee and UTA will then

present the report to the Council during a future Committee of the Whole meeting. The motion passed unanimously.

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CONSENT AGENDA: (3:50:12 PM)

Clerk’s Office

The Council reviewed a request by Sherrie Swensen, County Clerk, for approval of a submitted list of vote centers for the 2016 Primary Election, and to make changes to the list as needed.

Council Member Bradley, seconded by Council Member Jensen, moved to approve the request and forward it to the 4:00 p.m. Council meeting for formal consideration. The motion passed unanimously

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Resolution and Interlocal Agreement

The Council reviewed the following resolution and agreement. The resolution authorizing execution of the agreement has been placed on the Council agenda for final approval and execution:

Midvale City regarding the scheduling and maintenance of the Bingham Junction Park Softball Field.

Council Member Bradley, seconded by Council Member Jensen, moved to approve the resolution and agreement and to forward them to the 4:00 p.m. Council meeting for formal consideration. The motion passed unanimously.

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Other Business

Approval of Minutes

Council Member Jensen, seconded by Council Member Bradley, moved to approve the May 17, 2016, and May 24, 2016, Committee of the Whole minutes. The motion passed unanimously.

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The meeting was adjourned at 3:51:10 PM.

______Vice-Chair, Committee of the Whole

______Deputy Clerk

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