FIN 2017-09-19 COMPLETE AGENDA PACKET

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Councilmembers CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: September 11, 2017 SUBJECT: 2017 July Year to Date Financial Update Summary 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 July YTD report is based on financial data available as of September 11th, 2017, for the reporting period ending July 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 $33.4 million as compared to the allocated budget of $36.0 million, which is $2.6 million below budget. Notable variances are as follows: • While the fire department is below the allocated budget by $66 thousand, salaries and benefits exceed budget by $151 thousand. This is attributed to the staffing of the unbudgeted pipeline positions (5 vs 3 in 2016) to maintain minimum staffing levels and backfill for retirements. Overtime is now below allocated budget by $50 thousand, however, spending is $34 thousand greater than 2016 through the same period. Additionally, labor contracts have not yet been settled. While the budget includes a cost - of -living adjustment of 2%, actuals do not reflect contract settlement terms. • Park department exceeded budget by $107 thousand. This is a result of the department being fully staffed in 2017 compared to 2016. The department 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. A billing timing difference for surface water charges in July vs. August in the prior year has resulted in an additional expense of $60K for July. • Street department exceeded budget by $256 thousand. This is a result of a billing timing difference for surface water charges in July vs. August in the prior year. This has resulted in an additional expense of $415K for July. • Transfers from the general fund into capital projects funds through July have not been recorded. Rather than transferring funds automatically, we will be transferring funds into the capital projects funds as needed. 11