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HomeMy WebLinkAboutFIN 2023-06-12 COMPLETE AGENDA PACKET  The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk’s Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance. City of Tukwila Finance and Governance Committee  Kate Kruller, Chair  Kathy Hougardy  De’Sean Quinn Distribution: K. Kruller K. Hougardy D. Quinn C. Delostrinos Johnson T. McLeod M. Abdi T. Sharp Mayor Ekberg D. Cline R. Bianchi C. O’Flaherty A. Youn L. Humphrey AGENDA MONDAY, JUNE 12, 2023 – 5:30 PM THIS MEETING WILL BE CONDUCTED BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. ON-SITE PRESENCE WILL BE IN THE DUWAMISH CONFERENCE ROOM (2ND FLOOR, 6300 SOUTHCENTER BOULEVARD) THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 965223169# Click here to: Join Microsoft Teams Meeting For Technical Support during the meeting call: 1-206-433 -7 1 55. Item Recommended Action 1. BUSINESS AGENDA a. Monthly General Fund update (April 2023). Tony Cullerton, Deputy Finance Director b. Honorary Street Designation for Jim Haggerton. Laurel Humphrey, Legislative Analyst 2. MISCELLANEOUS a. Discussion only b. Discussion only Pg.1 Pg.7 Next Scheduled Meeting: June 26, 2023 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM 1 TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: June 12, 2023 SUBJECT: April 2023 General Fund Departmental Budget-to-Actuals Report Summary The purpose of the April 2023 General Fund Financial Report is to summarize for the City Council the general state of departmental expenditures and to highlight significant items. The following provides a high-level summary of the departmental financial performance. The April 2023 report is based on financial data available as of June 1, 2023, for the period ending April 31, 2023. Expenditures General Fund departmental expenditures totaled $24.3 million through April, which is $1.1 million over the allocated budget of $23,288,541 million. Department 20, which transfers to other funds, reported $1.5 million in expenditures. This number reflects transactions for debt payments and interfund activity. In total the General Fund activity YTD as of the end of April was $25.8 million which exceeded the allocated budget by $959,538. The overall overage is a timing issue pertaining to Fire. Contracted services for Fire were paid in April but scheduled to be paid in June. Allocated Budget As of the end of April, all departments, with the exception of City Council and Fire, reported activity that is within their allocated budget. The overage in City Council is $8,575. The overage is attributed to consulting services for the council retreat and hotel lodging for the National League of Cities conference. Fire is over their allocated budget by $3,635,767. The overage in Fire totals $3,635,676. The overage is a result of paying the Q2 contracted services in April. Budget to Actual (% Expended) When comparing YTD spending to the percent of year completed (33%), two departments finished the month higher than 33%. Fire has been explained above. PW Dept./Street Maintenance ended the month at 41.4%. PW Dept/Street Maint reported % Expended of 41.4%. Facilities Maintenance/Structures incurred costs related to the Kennedy Cottage Demolition 1 INFORMATIONAL MEMO Page 2 2 Project. Additionally, there were increased expenditures in Insurance-Property and Utilities, attributed to the new Facilities Maintenance building that opened in June of 2022. While Public Works reported YTD expenditures of 41.4% at 33% of the year, these expenditures were previously identified and budgeted, as is supported by Public Works currently reporting total expenditures under Allocated Budget. 2023 Compared to 2022 Most of the General Fund departments reported increases over the same period compared to the prior year. This is expected as a result of increases in salaries due to contractual obligations and the general rise in the cost of ongoing expenditures. However, a few departments reported increases greater than 5% and $50,000 over the same period last year. This section of the report provides additional information on the increase over the prior year. Mayor’s Office increased $64,142 (10.3%) over the prior year. While we did not tie out 100% of the increases over the prior year, we did identify the largest increases, accounting for 93% of the variance. These expenditures were previously identified and budgeted, as is supported by Mayor’s Office currently reporting total expenditures under Allocated Budget. Administrative Services increased $125,264 (8.9%) over the prior year. The increase is primarily attributed to Online Services-Subscriptions, with the remainder being reported in Salaries. These expenditures were previously identified and budgeted, as is supported by Administrative Services currently reporting total expenditures under Allocated Budget. 2022 2023 Variance Mayor's Office 620,560 684,732 64,172 Attorney Svs Mayor 126,653 149,974 23,322 Administration Ecoonomic Dev 3,000 16,000 13,000 Mayor's Office Administration Hotel Lodging 0 4,610 4,610 Mayor's Office Administration Tuition 0 6,000 6,000 Mayor's Office Salaries 142,192 155,080 12,888 Total 271,845 331,664 59,820 Account 2022 2023 Variance Online Services-Subscriptions 58,930 145,563 86,632 2 INFORMATIONAL MEMO Page 3 3 Police are operating below allocated budget as reported year-to-date. Similar to other departments expenditures reported in 2023 have exceeded costs incurred for the same period in 2022. Salaries and Overtime are the primary drivers of the increased expenditures. Similar to other departments, Insurance-Liability is the major increase to Professional Svs. Software Maintenance Contracts represents the increase to Technology Svs. Fire increased $2,670,021 (55%). The increase has been consistently explained as due to Contracted Svs. with the Puget Sound Regional Fire Authority agreement. In prior years, these costs were reported in the Salaries line-item. This concludes the recap of notable variances within departments between 2022 and 2023. While overall General Fund departmental costs increased by 18% over the same period last year, the increase in expenditure was identified ahead of time and were budgeted for. Police Police 2022 2023 Variance % Increase 5,847,652 6,629,824 782,172 13.4% 511 Salaries 2,874,296.22 3,369,840.10 495,544 17.2% 513 Overtime 346,470.75 480,496.47 134,026 38.7% 541 Professional Svs 878,250.07 953,451.00 75,201 8.6% 546 Technoligy Svs 87,886.52 136,495.68 48,609 55.3% Total 753,380 % Identified 96.3% 3 INFORMATIONAL MEMO Page 4 4 Departmental Variances Year to Date Department Expenditures Through April 2023: The graph below shows the Actual Expenditures, and Allocated Budget amounts for the General Fund departments. Allocated Budget % 2023 2023 2021 2022 2023 vs Actual Expended $ Change % Change DEPARTMENT Annual Allocated OVER/(UNDER) City Council 384,889 117,713 103,786 114,889 126,288 8,575 32.8% 11,399 9.9% Mayor's Office 2,502,666 858,394 605,187 620,560 684,732 (173,662) 27.4% 64,172 10.3% Administrative Services 5,676,491 1,942,246 1,333,229 1,412,082 1,537,347 (404,900) 27.1% 125,264 8.9% Finance Department 3,868,642 1,563,114 1,041,509 1,211,258 1,249,851 (313,263) 32.3% 38,593 3.2% Rec Dept / Parks Maint 5,109,490 1,703,846 1,328,478 1,468,426 1,532,029 (171,817) 30.0% 63,603 4.3% Community Dev 4,672,314 1,551,737 1,286,664 1,419,896 1,421,266 (130,471) 30.4% 1,370 0.1% Municipal Court 1,741,340 580,447 378,460 505,983 527,075 (53,372) 30.3% 21,091 4.2% Police Department 22,746,448 7,578,971 5,734,389 5,847,652 6,629,824 (949,147) 29.1% 782,172 13.4% Fire Department 14,790,120 3,890,545 4,562,650 4,856,291 7,526,312 3,635,767 50.9% 2,670,021 55.0% PW Dept / Street Maint 7,574,988 3,501,527 2,671,285 3,066,233 3,138,218 (363,310) 41.4% 71,985 2.3% Subtotal 69,067,388 23,288,541 19,045,635 20,523,270 24,372,942 1,084,400 35.3% 3,849,671 18.8% Non Departmental 6,688,881 1,633,158 1,365,690 1,342,690 1,508,296 (124,862) 22.5% 165,606 12.3% Total Expenditures 75,756,269 24,921,699 20,411,325 21,865,960 25,881,237 959,538 34.2% 4,015,277 18.4% % of Year 33.3% 2020/20212022/2023 BUDGET ACTUAL 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 City Council Mayor's Office Administrative Services Finance Department Rec Department / Park Maint Community Dev (DCD) Municipal Court Police Department Fire Department Public Works Dept / Street Maint ThousandsActual Expenditures Allocated Budget 4 INFORMATIONAL MEMO Page 5 5 General Fund by Category Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting for external authoritative sources of oversight such as of the Washington State Auditor’s office. This level of reporting is also utilized for the purposes of debt issuance and by other stakeholders. For managerial reporting and internal use, the city reports activity at the department level. This provides more details and additional information used by decision makers within the city and those charged with governess. In an effort to provide an enhanced level of reporting, additional information is being provided for activity at the transaction level that reflect an increase of more than 5% over the prior year AND $50,000, that are part of a Category that is reporting total activity above the % of Year calculation. The end of April represents the completion of 33% of the year. Total Services is the only Category that reported total activity higher than 33%. Within Total Services, Professional Services stands alone as the sole account that exceeded the Allocated Budget. The event that tipped Professional Services was the Fire contract payment. As previously stated, in the prior year, these costs were reported in the Salaries line. 2023 vs 2022 When comparing the same period of the current year to the prior year, three accounts rise to the level of an increase greater than 5% and $50,000. All three accounts are reported within the Total Services Category. Professional Services has been previously explained as the Puget Sound Regional Fire Authority agreement. The Technology Services increase is attributed to Online Subscriptions as reported previously. Rentals is a new line item that has not been discussed previously. Rentals is primarily made up of leased equipment and fleet. The increase over the prior year reflects the 22 vehicles the City is currently leasing. Department Fleet Count Police 5 Public Works 4 Community Development 4 Sewer Water 3 Water 1 Techonlogy Information Services 1 Building Maintance 1 Parks 1 Recreation 2 Total 22 5 INFORMATIONAL MEMO Page 6 6 General Fund City of Tukwila General Fund Expenditures Allocated Budget % 2023 2023 2021 2022 2023 vs Allocated Expended Annual Allocated OVER/(UNDER) $ 2022/2023 % 2022/2023 Salaries 25,787,016 8,595,672 9,276,425 9,837,759 7,645,362 (950,310) 29.6% (2,192,398) (22.3%) Extra Labor 769,106 187,330 7,734 89,415 111,099 (76,232) 14.4% 21,684 24.3% Overtime 755,184 217,929 638,397 825,963 525,212 307,283 69.5% (300,750) (36.4%) Holiday Pay 250,000 8,759 7,417 7,738 3,202 (5,557) 1.3% (4,536) (58.6%) FICA 2,110,086 703,362 577,239 627,276 625,350 (78,012) 29.6% (1,925) (0.3%) Pension-LEOFF 635,410 187,137 285,510 299,898 171,702 (15,435) 27.0% (128,196) (42.7%) Pension-PERS/PSERS 1,744,919 581,640 549,458 482,058 506,994 (74,646) 29.1% 24,936 5.2% Industrial Insurance 586,183 195,395 322,374 233,483 130,719 (64,675) 22.3% (102,764) (44.0%) Medical & Dental 5,748,432 1,916,144 2,078,513 2,462,700 1,787,221 (128,923) 31.1% (675,479) (27.4%) Unemployment 0 0 0 15,108 0 0 - (15,108) (100.0%) Uniform/Clothing 33,290 15,763 1,120 598 564 (15,200) 1.7% (34) (5.7%) Total Salaries & Benefits 38,419,627 12,609,130 13,744,188 14,881,995 11,507,425 (1,101,705) 30.0% (3,374,570) (22.7%) Supplies 678,334 219,274 143,661 74,477 85,313 (133,961) 12.6%$10,836 14.5% Repairs & Maint Supplies 450,010 148,892 59,542 96,241 104,074 (44,818) 23.1% $7,834 8.1% Resale Supplies 2,500 800 0 0 0 (800) - $0 - Small Tools 213,203 71,068 8,516 11,916 9,951 (61,116) 4.7% ($1,965) (16.5%) Technology Supplies 110,798 36,933 12,129 13,554 24,058 (12,874) 21.7% $10,504 77.5% Fleet Supplies 7,000 2,333 544 1,286 1,460 (873) 20.9% $175 13.6% Total Supplies 1,461,845 479,300 224,393 197,474 224,857 (254,443) 15.4% $27,383 13.9% Professional Services 21,798,537 6,901,615 2,459,824 2,455,456 9,990,786 3,089,171 45.8% $7,535,329 306.9% Communications 440,528 142,665 137,169 133,993 105,932 (36,733) 24.0% ($28,061) (20.9%) Professional Dev 570,359 198,977 201,074 141,207 190,486 (8,491) 33.4% $49,280 34.9% Advertising 66,300 25,167 2,099 2,055 6,692 (18,475) 10.1% $4,637 225.7% Rentals 1,298,059 347,286 128,723 52,530 272,031 (75,255) 21.0% $219,501 417.9% Technology Services 1,031,264 531,095 137,426 301,739 354,745 (176,350) 34.4% $53,006 17.6% Utilities 2,244,354 1,507,777 1,363,476 1,416,209 1,460,311 (47,466) 65.1% $44,103 3.1% Repairs & Maint Svs. 1,286,418 427,384 647,044 729,095 372,939 (54,445) 29.0% ($356,156) (48.8%) Miscellaneous 1,012,899 326,346 219 162,019 93,015 (233,331) 9.2% ($69,004) (42.6%) Total Services 29,748,719 10,408,312 5,077,054 5,394,303 12,846,937 2,438,625 43.2% 7,452,634 138.2% Capital Outlay-Land 0 0 0 0 0 0 - 0 - Other Improvements 0 0 0 0 0 0 - 0 - Machinery & Equipment 420,000 37,500 0 49,499 0 (37,500) - (49,499) (100.0%) Construction Projects 0 0 0 0 39,423 Total Capital Outlay 420,000 37,500 0 49,499 39,423 (37,500) 9.4%(10,075)(20.4%) Transfers Out 5,706,078 1,387,457 1,365,690 1,342,690 1,262,595 (4,443,483) 22.1%(80,095)(6.0%) Total Non Operating Expense 5,706,078 1,387,457 1,365,690 1,342,690 1,262,595 (4,443,483) 22.1%(80,095)(6.0%) Total Expenditures 75,756,269 24,921,699 20,411,325 21,865,960 25,881,237 (3,398,506) 34.2% 4,015,277 18.4% % of Year 33.3% Change Year-to Date as of June 1, 2023 BUDGET ACTUAL COMPARISON OF RESULTS 6 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Laurel Humphrey, Legislative Analyst DATE: May 17, 2023 SUBJECT: Jim Haggerton Honorary Street Designation ISSUE Honoring former Mayor Jim Haggerton for his contributions toward the City with an honorary street designation BACKGROUND Former Mayor Jim Haggerton passed away in November 2021. He was recognized by the City Council for his outstanding character as well as the contributions he made in service to his country as a United States Marine and to the City of Tukwila during his long career in public service including as a Planning Commissioner, Councilmember, and Mayor. Last year the Finance and Governance Committee discussed an honorary street naming but set the matter aside until a new policy on naming of city property could be developed and adopted. The City Council adopted Resolution 2052 on October 3, 2022, which outlines criteria and a process for naming, including honorary street designations. The policy outlines the following criteria: Section 4. Criteria for Naming City Property A. The following unranked criteria should be used to guide decision making on naming City property: (1) Geographical location (2) Building or property’s purpose (3) Cultural attributes (4) Significant historical events (5) Natural or geological features (6) City identity and image (7) Names of persons who have made an outstanding civic contribution to the community, or whose names are of historic significance to the area (8) Names of City officials who served for a minimum of 10 years and who made outstanding contributions over and above the normal duties required by their positions and had a positive impact on the past and future development of programs, projects or facilities 7 INFORMATIONAL MEMO Page 2 The policy outlines the following process: Section 8. Honorary Street Designations A. Honorary street designations are intended to recognize and honor individuals or groups without changing the official name of the street or the official addresses of residents and businesses on the street. B. Requests for honorary street designations must be accompanied by written rationale for the name and significance of the proposed name to the criteria in Section 4.A. C. If the proposed name complies with this Policy, the City shall provide an open public comment period of 30 days that is advertised broadly including notification to all members of the City’s Boards and Commissions. D. The City Council shall review all public comment received in its determination as to whether the public interest is served by the proposed honorary street designation. In 2023, a new suggestion has emerged from discussions with the Haggerton family that would designate Southcenter Parkway between Tukwila Parkway and South 180th Street as an honorary “Jim Haggerton Street,” as shown in yellow highlight to the right. Many major development and public projects in the Tukwila Urban Center are directly related to Mayor Haggerton’s leadership including the Klickitat interchange, Tukwila South Development Agreement, Tukwila Commuter Rail station, and Southcenter Parkway. RECOMMENDATION Staff is seeking Committee direction on proceeding with the public comment period required by the naming policy. ATTACHMENT Letter from Carol Haggerton dated October 31, 2021 8 October 31, 2021 To: Mayor Allan Ekberg and Tukwila City Council Members From: Carol Haggerton, 15820 —43`d Avenue South, Tukwila, WA 98188-2701 This is an informal request for consideration of having a Tukwila street named in honor of previous Mayor Jim Haggerton not only for his 30 years in government service to the City of Tukwila, but for his more than 60 years of dedication and commitment to the Tukwila Community as a whole, as a resident and Tukwila business owner, volunteering his time and expertise in leadership to our schools and youth, our seniors, our military men and women and veterans, and every resident within our city. He sincerely believed Tukwila is the City of Opportunity, the Community of Choice as evidenced by his desire to adopt this new city motto while in office. Late '50's — early '60's he volunteered as a Little League Baseball Coach and Umpire (no children of his own at that time). He was President of Southcenter Rotary (1984-1985) and hosted Exchange Students: A young woman from Italy on a one-year program at Foster and a young man from Germany on a summer program. He headed the local Junior Achievement Program mentoring young teens interested in business and becoming Entrepreneurs. Jim was involved in "Northwest Harvest" and their beginning efforts as a food bank, and later joined the efforts of Joe Tice for our local "Tukwila Pantry". He volunteered his time and support to Tukwila's Heritage and Cultural Center because he considered it a valuable resource for the city. JI founded his business "HACO Services, Inc." in Tukwila in 1986 and lent his support to the community by sponsoring Co-ed and women's softball teams where he became an advocate and financial supporter for our current Tukwila Community Center. As a U.S. Marine Corp. Veteran he joined Tukwila American Legion Post 235 and held many positions before being elected Commander from 2006 •- 2008. He used every opportunity to speak out on the needs of our Veterans at the Local, Regional, State and National levels. Many Christmas mornings would find him at the Seattle Veterans Hospital delivering "Sweats for Vets" and visiting those men and women hospitalized and unable to be home for the holidays. Jim was our local advocate for the Boy's and Girl's State programs at Foster High and Seattle Christian Schools, and the Boeing Academy STEM Learning program. He was appointed as Government Representative to the SCHOOL ADVISARY BOARD Strategic Planning Commission by Governor Christine Gregoire and served for 10 years planning for the Growth and changes in our schools. He rarely, if ever, missed a "Night Out Against Crime" and the chance to chat with residents about any questions or concerns they had. He had an "open door" policy to his office and welcomed all. He enjoyed having young school children visit and ask questions, and made time to visit them in their classrooms as well. Jim made a habit of visiting local businesses to learn about their concerns and needs, and to celebrate with them when they were awarded King County Srrjall Business Awards. At every opportunity he was an ambassador for Tukwila, citing the benefits of opening a new business in our city. He attended many ribbon cuttings — over 300 hundred new businesses were launched in Tukwila in one just year alone. 9 His pledge to provide low-income housing for Seniors was realized with the opening of Tukwila Village and the Shag Development. 10