HomeMy WebLinkAboutCSS 2020-05-11 Item 1D - Budget - Fire Department Budget Proviso UpdateTO: Community Services and Safety Committee
FROM: Vicky Carlsen, Finance Director
Jay Wittwer, Fire Chief
David Cline, City Administrator
CC: Mayor Ekberg
DATE: May 6, 2020
SUBJECT: Update on 2020 Fire Department Budget Proviso
ISSUE
Update City Council on status of the 2020 Budget Proviso for the Fire Department that
was included in the 2019-2020 mid -biennium budget amendment as well as an update
on the Habile Consulting contract, the company that was hired in response to Budget
Proviso 1 d of the Tukwila City Council regarding the general fund appropriation to the Fire
Department
DISCUSSION
In 2019, the Finance Committee, as well as the full Council, spent several months
reviewing a number of operational aspects of the Fire Department. The review was
conducted because the fire department has exceeded their authorized budget every year
for the last several years. One of the outcomes of the review was to authorize a budget
amendment for 2019 to true up overtime costs, fund recruits in the academy, and provide
resources for leave balance payouts incurred when firefighters retired.
The City Council approved the budget amendment but included a Budget Proviso which
listed conditions to be met in 2020. The Proviso is attached to this memo.
Status UDdate on Proviso Conditions
Condition 1 a requires the "Fire Chief to deliver a 2019 annual report to the City Council
by the end of the first quarter." While delayed due to the city's COVID-19 response, the
e report was transmitted to the City Council on April 27, 2020 and will be presented to the
Community Services & Safety Committee on May 11, 2020.
The second condition (1 b) requires the "Fire Chief to deliver quarterly reports to the City
Council discussing new revenue implementation and budget status updates." Through
the end of March, the Fire Department is meeting budget, with 25% of budget spend. A
summary report is attached to this memo and a full 1st quarter report will be presented to
the Finance Committee in May.
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INFORMATIONAL MEMO
Page 2
The third condition (1 c) requires "the Mayor and/or City Administrator to deliver a mid-
year report to the City Council regarding budget status to date and projection for year
end." This report is planned to be delivered in July or August after the 2nd Quarter closes.
The fourth condition (1 d) states, "The City will hire a third -party consultant to review the
Fire Department budgetary and management practices."
In response to Item 1d, the City contracted with Habile Consulting to perform the review.
The contract was signed on December 23, 2019. Habile Consulting began work by
interviewing Councilmembers and various City staff. Interviews were completed in mid -
January. A meeting was scheduled for March 11, 2020, when the City expected to receive
an update on the progress of the review. However, the meeting was canceled by the
contractor and the City was notified that, due to a serious medical issue with a family
member, the meeting would need to be rescheduled. Since that date, the City has had no
response from the consultant even though multiple attempts to contact the consultant
have been made. Attempts included emails as well as phone calls. At this time, the City
has not paid Habile Consulting.
Options moving forward include the following:
1. Hire another consultant to perform the independent study as required by the
Budget Proviso.
2. Defer this item until the next biennium.
3. Other options Council may wish to consider.
The fifth condition (1e) requires the Fire Department to "implement revenue sources and
operational efficiencies while considering cost savings wherever appropriate."
The following chart shows revenue collected through the end of the March for Fire related
activities. Of note, is that False Alarm charges are being charged, the monthly Ambulance
Service fees are being received, and the department has collected funds from Haz Mat
Response Recovery (accidents).
GENERAL
Fire Tech Fee
EMS Participation Grant
Haz Mat Response Recovery
Emergency Services (EMS Levy)
Fire Inspections
Planning Review Fees - FMO
False Alarm Charges
Ambulance Services
Totals
JAN
FEB
MAR
YTD TOTAL
698
$ 802
$ 773
$ 2,273
-
-
1,260
1,260
4,485
3,064
2,800
10,349
2,000
2,000
2,000
6,000
15,595
7,207
7,095
29,897
14,747
12,780
12,157
39,684
400
150
200
750
2,000 2,000 2,000 6,000
$ 39,925 $ 28,002 $ 28,284 $ 96,212
In addition, the Fire Department has continually looked at operational savings throughout
its department and has implemented these where possible.
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INFORMATIONAL MEMO
Page 3
RECOMMENDATION
Staff is seeking direction on the preferred option to meet the Proviso condition of Item 1 d
regarding hiring a third -party consultant to review the Fire Department budgetary and
management practices.
ATTACHMENTS
Attachment 1: Budget Proviso of the Tukwila City Council 2019 — 2020 Mid -Biennium
Budget Amendment
Attachment 2: Fire Department Budget to Actual Report as of March 31, 2020
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INFORMATIONAL MEMO
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Attachment 1
Budget Proviso of the Tukwila City Council
2019-2020 Mid -Biennium Budget Amendment
The following is hereby declared to be the legislative intent of the City Council regarding
the General Fund appropriation to the Fire Department:
1. The City Council approves the $522,900 amendment to the Fire Department's
2019 budget with the expectation that the following conditions be met in 2020:
a. The Fire Chief will deliver a 2019 Annual Report, per RCW 35A.92.030, to the
City Council by the end of the 1 st Quarter.
b. The Fire Chief will deliver quarterly reports to the City Council discussing new
revenue implementation and budget status updates including overtime and
training.
c. The Mayor and/or City Administrator will deliver a mid -year report to the City
Council regarding budget status to date and projection for year-end.
d. The City will hire a third -party consultant to review the Fire Department
budgetary and management practices.
e. The Fire Department will implement additional revenue sources and
operational efficiencies while considering cost savings wherever appropriate.
2. It is expected that the Fire Department will operate within the adopted budget for
2020. If the above proviso conditions are met, the City Council may reconsider a
budget amendment following the mid -year report.
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INFORMATIONAL MEMO
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Attachment 2
FIRE
CITY OF TUKW ILA
GENERAL FUND EXPENDITURES
YTD AS OF MARCH 31, 2020
BUDGET
ACTUAL
VARIANCES
ACTUAL
EXPENDITURE TYPE
OVERt(UNDER)
% CHANGE
2020
ALLOCATED
2020 ANNUAL
ALLOCATED
2018
2019
2020
BDGT
EXPENDED
2018/2019
2019/2020
11 Salaries
7,666,823
1,916,706
1,814,823
1,910,209
2,002,445
85,740
26%
5%
5%
12 Extra Labor
-
-
825
-
-
-
-
-
-
13 Overtime
534,648
170,822
121,036
207,665
106,435
(64,387)
20%
72%
(49)%
15 Holiday Pay
295,454
-
2,443
-
-
-
-
-
-
21 FICA
208,956
52,239
33,511
38,196
35,719
(16,520)
17%
14%
(6)%
22 Pension-LEOFF2
446,274
111,569
96,434
106,396
105,306
(6,262)
24%
10%
(1)%
23 Pension-PERS/PSERS
51,129
12,782
12,517
13,551
8,650
(4,132)
17%
8%
(36)%
24 Industrial Insurance
422,619
105,655
66,953
102,081
96,946
(8,709)
23%
52%
(5)%
25 Medical & Dental
1,548,497
387,124
364,164
376,823
420,224
33,100
27%
3%
12%
Total Salaries & Benefits
11,174,400
2,756,897
2,512,706
2,754,921
2,775,726
18,830
25%
10%
1%
31 Supplies
206,877
84,753
38,063
56,102
29,641
(55,112)
14%
47%
(47)%
35 Small Tools
87,268
2,132
3,307
276
26,898
24,766
31%
(92)%
9643%
41 Professional Services
302,945
18,442
74,446
54,160
70,932
52,490
23%
(27)%
31%
42 Communication
32,170
6,321
8,318
7,169
8,620
2,298
27%
(14)%
20%
43 Travel
7,000
757
1,788
2,355
468
(290)
7%
32%
(80)%
45 Rentals and Leases
654,151
162,974
151,209
168,731
164,060
1,086
25%
12%
(3)%
46 Insurance
199,922
172,182
191,453
164,888
173,213
1,031
87%
(14)%
5%
47 Public Utilities
73,360
15,575
23,270
23,846
35,354
19,780
48%
2%
48%
48 Repairs and Maintenance
36,921
8,218
11,418
11,876
16,121
7,903
44%
4%
36%
49 Miscellaneous
143,874
18,750
82,056
22,512
22,517
3,767
16 %
(73) %
0 %
64 Machinery& Equipment
200,000
-
-
-
-
-
-
-
-
Total Operating Expenses
1 1,944,488
490,1041
585,328
511,914
547,824
1 57,720
28%
(13)%
7%
Total pn..
1 13,118,888
3,247,001
3,098,033
3,266,836
3,323,550
1 76,549
25%
5%
2%
Percent of year completed 25%
59