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MINUTES OF THE FINANCE COMMITTEE September 3, 2019 East Conference Room Present: Chairman O’Malley and Councilmembers George and Bullock Also Present: Councilmembers Litten, Bullock, O’Leary, and Rader, Finance Director Pae, Keith Schuster of the Finance Department, Clerk Bach, and Deputy Clerk Lascu taking minutes Call to Order: 5:34 p.m. Approval of the minutes of the June 24th meeting of the Finance Committee th ChairmanO’Malley moved to approve the minutes of the June 24Finance Committee meeting, which was seconded by Councilwoman George. Both members present voted in favor. Motion passed. ORDINANCE 21-19–AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force at the earliest period allowed by law, authorizing the transfer and advance of certain funds. (Placed on 1st reading and referred to Finance Committee 7/1/19, 2nd reading 7/15/19) Director Pae and members of the committee reviewed the transfer of funds process and noted that this is a standard practice and all transfers have been approved previously. Chairman O’Malley made a motion, seconded by Councilwoman George, to recommend adoption. Both members voted in favor. Motion passed. Mid-year revenue report Director Pae and Assistant Director Schuster reviewed the mid-year revenue report with councilmembers. It was indicated that the Finance Department has projections regarding municipal income tax and property taxes for the following year. The department received the final installment of property taxes from last year, which totaled $1.4 million in revenue and reflected the difference in property valuations. The department also showed a true net increase of 3.6% in income tax, which shows that the local economy is healthy.The Federal Reserve lowering rates by 25 basispoints will have an impact on the city’s interest income, which caused the city to adjust its portfolio a bit as call dates have been moved up. Waste and water fees are on trackand the city received $77,000 more this year in local government funds than the year prior. Over the past several years, the city has been receiving about a 2% increase and about a 15% increase from last year in county property valuations. Looking ahead to 2020 revenue projections, what the Finance Department is seeing this year islikely what it will collect next year. There was brief discussion on inside and outside millage on property tax collected by the city and whether the schools stood to benefit from increases in property valuations. The municipal