FIN 2017-07-18 Item 2B - Report - May 2017 Monthly Departmental Budgets - to -Actuals

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TO: CC: City of Tukwila INFORMATIONAL MEMORANDUM Councilmembers Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: July 7, 2017 SUBJECT: 2017 May Year to Date Financial Update Summary Allan Ekberg, Mayor The purpose of the 2017 Financial report is to summarize for the City Council the general state of Departmental expenditures and to highlight significant items or trends. The following provides a high -level summary of the Departmental financial performance. The 2017 May YTD report is based on financial data available as of July 7th, 2017, for the reporting period ending May 31st, 2017. Additional details can be found within the attached financial report. Allocated budgets through the reporting period are calculated by analyzing spend patterns in the previous year and allocating the current year budget using the same spend pattern. If a line item had no expenditures in the prior year but a budget in the current year, the allocated budget for the current year would be zero. Departmental Expenditures General fund expenditures totaled $23.4 million as compared to the allocated budget of $24.7 million, which is $1.3 million below budget. Notable variances are as follows: • Recreation department is above budget by $18 thousand, although overall spending to date is 35% of budget through May. Administration salaries and benefits are greater than 2016 due to being fully staffed in 2017. Supplies are higher than normal due to costs associated with the 20 -year Gala celebration. The department also incurred expenses related to the Teen visit to Olympia, these costs were funded through a grant/donation from World Vision. • Fire department is above budget by $81 thousand. This is attributed to the staffing of the unbudgeted pipeline positions (5 vs 3 in 2016) to maintain minimum staffing levels. Overtime is now in line with budget with an overspend one thousand year -to -date, however, spending is $58 thousand greater than 2016 through the same period. • Park department exceeded budget by $47 thousand. This is a result of the department being fully staffed in 2017 compared to 2016. They also incurred a higher level of spending on supplies as they are being more proactive and intentional in the planning and preparation for busier summer months. • Transfers from the general fund into capital projects funds through May have not been recorded. Rather than transferring funds automatically, we will be transferring funds into the capital projects funds as needed. 21