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FIN 2023-10-23 COMPLETE AGENDA PACKET
City of Tukwila Finance and Governance Committee O Kate Kruller, Chair O Kathy Hougardy O De'Sean Quinn AGENDA MONDAY, OCTOBER 23, 2023 — 5:30 PM Distribution: K. Kruller K. Hougardy D. Quinn C. Delostrinos Johnson T. McLeod M. Abdi T. Sharp Mayor Ekberg D. Cline C. O'Flaherty A. Youn L. Humphrey 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 313004383# Click here to: Join Microsoft Teams Meeting For Technical Support during the meeting call: 1-206-433-7155. Item Recommended Action 1. BUSINESS AGENDA a. Tax Levy legislation: Pg.1 (1) An ordinance levying the general taxes for the City a. Forward to 11/13 C.O.W. commencing 1/1/2024. Meeting for Public Hearing (2) An ordinance increasing the regular levy commencing & 11/20 Regular Meeting. 1/1/2024. Vicky Car/sen, Finance Director b. An ordinance amending the 2023-2024 Biennial b. Forward to 11/13 C.O.W. Pg.11 Budget. Meeting for Public Hearing Vicky Car/sen, Finance Director & 11/20 Regular Meeting. c. August General Fund Expenditure Update. c. Discussion only Pg.29 Tony Cullerton, Deputy Finance Director 2. MISCELLANEOUS Next Scheduled Meeting: November 13, 2023 The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCitvClerk©TukwilaWA.gov) for assistance. City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Manager CC: Mayor Ekberg DATE: October 17, 2023 SUBJECT: 2024 Property Tax Levy ISSUE Approval of ordinances adjusting the regular levy from the previous year and adopting the general and excess property tax levies for 2024 by November 30, 2023. BACKGROUND A Public Hearing for adoption of the 2024 property tax levy is required by RCW 84.55.120. The Hearing is scheduled for November 13, 2023. The City was notified on October 5, 2023 that the assessed value for Tukwila for 2024 is projected to be $9,267,988,624. The ordinance to set the general tax levy also includes the excess levy related to the Public Safety Plan that voters approved on the November 8, 2016, general election. The City sold $36.5 million of bonds in 2016 and debt service repayment began in 2017. The remaining voter -approved bonds were sold in October 2019. The excess levy for both bond issues will be assessed for as long as the bonds are outstanding; the final payment for the 2016 issue is scheduled for December 2036 and the final payment for the 2019 issue is scheduled for December 2039. The total excess levy requirement for 2024 debt service is $4,800,000. DISCUSSION Levy Amount The assessed value and the allowable levy are subject to change until final levy rate determination. A levy amount of $18,400,000 will be used for the ordinance. If the final allowable levy is less than the ordinance amount, King County Department of Assessments will adjust the ordinance amount to the final allowable levy amount and no further action by the Council will be required. Also included in the tax levy ordinance is an excess levy in the amount of $4,800,000 for debt service related to the unlimited tax obligation bonds that were sold at the end of 2016 and in 2019. All voter -approved bonds have now been issued. 1 INFORMATIONAL MEMO Page 2 Levy Limit RCW 27.12.390 allows for a maximum statutory levy rate for cities at $3.60 per $1,000 of assessed value, less the actual regular levy made by a library district. RCW 41.16.060 also allows for an additional levy of $0.225 if a city has a firemen's pension fund. The maximum allowable levy for 2023 is estimated to be $3.56297. However, due to the 1 % limitation, the Levy Limit Worksheet received from King County estimates the City's preliminary levy rate for 2024 at $1.94136 per $1,000 of assessed value. RECOMMENDATION The City Council is being asked to approve the ordinance adopting the General Tax Levy and the ordinance showing the dollar and percent change from the previous year at the November 13, 2023 Committee of the Whole meeting and subsequent November 20, 2023 Regular Meeting. A public hearing has also been scheduled at the November 13, 2023 Committee of the Whole. ATTACHMENTS Draft Ordinances (2) Preliminary Levy Limit Worksheet-2024 Tax Roll 2 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/Info Memo - 2024 Taxes with Excess levy.docx AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, LEVYING THE GENERAL TAXES FOR THE CITY OF TUKWILA IN KING COUNTY FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2024, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN SAID CITY, THAT IS SUBJECT TO TAXATION FOR THE PURPOSE OF PAYING SUFFICIENT REVENUE TO CARRY ON THE SERVICES OF THE SEVERAL DEPARTMENTS OF SAID CITY FOR THE ENSUING YEAR, WITH AN EXCESS PROPERTY TAX LEVY FOR THE PURPOSE OF PAYING DEBT SERVICE ON THE CITY'S UNLIMITED TAX GENERAL OBLIGATION BONDS ISSUED IN 2016 AND 2019, AS REQUIRED BY LAW; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Tukwila has considered the City's anticipated financial requirements for 2024 and the amounts necessary and available to be raised by ad valorem taxes on real, personal and utility property; and WHEREAS, the following sentence is provided for information only: The maximum Statutory Levy Rate for the City of Tukwila, as allowed by RCW 84.52.043, is $3.825, which includes $0.225 for the Firemen's Pension Fund as allowed by RCW 41.16.060; and WHEREAS, the City, pursuant to Ordinance No. 2514, passed on November 21, 2016, authorized the issuance and sale of $36,500,000 principal amount of the City's Unlimited Tax General Obligation Bonds, 2016 and pursuant to Ordinance No. 2610, passed on July 15, 2019, authorized the issuance and sale of $40,885,000 principal amount of the City's Unlimited General Obligation Bonds, 2019 (together the "Bonds"); and has determined that to provide the money necessary to pay the debt service requirements on the Bonds in the year 2024, an excess property tax levy in the amount of $4,535,975 for the Bonds must be levied in year 2023, and collected in year 2024; and WHEREAS, the final assessed valuation calculation has been determined; CC: Legislative Development\General Tax Levy + Excess Levy 10-17-23 V.Carlsen Review by Andy Youn Page 1 of 3 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regular and Excess Tax Levy. A. There shall be and hereby is levied on all real, personal and utility property in the City of Tukwila, in King County, whose estimated assessed valuation is $9,267,988,624, current taxes for the ensuing year commencing January 1, 2024, in the amounts specified below: Regular Tax Levy Excess Tax Levy Rate Amount $1.94 $ 18,400,000 $0.52 $ 4,800,000 B. The said taxes herein provided for are levied for the purpose of payment upon the general bonded indebtedness of the City of Tukwila, the General Fund, and for the maintenance of the departments of the municipal government of the City of Tukwila for the fiscal year beginning January 1, 2024. The regular tax levy includes new construction and improvements to property, estimated to be $221,385, a re -levy of prior year refunds in the estimated amount of $81,227, and any increase in the value of state -assessed property. C. The excess levy is levied for the purpose of debt service payments on the unlimited tax obligation bonds sold to finance costs related to the City's Public Safety Plan, as submitted to the qualified electors of the City at a special election held on November 8, 2016. Section 2. Collection. This ordinance shall be certified to the proper County officials, as provided by law, and taxes here levied shall be collected to pay to the Finance Director of the City of Tukwila at the time and in the manner provided by the laws of the State of Washington for the collection of taxes for non -chartered code cities. Section 3. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect January 1, 2024. CC: Legislative Development\General Tax Levy + Excess Levy 10-17-23 V.Carlsen Review by Andy Youn Page 2 of 3 4 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Office of the City Attorney CC: Legislative Development\General Tax Levy + Excess Levy 10-17-23 V.Carlsen Review by Andy Youn Page 3 of 3 5 6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, INCREASING THE CITY OF TUKWILA REGULAR LEVY FROM THE PREVIOUS YEAR, COMMENCING JANUARY 1, 2024, ON ALL PROPERTY, BOTH REAL AND PERSONAL, IN COMPLIANCE WITH RCW 84.55.120; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has properly given notice of a public hearing held on November 13, 2023, pursuant to RCW 84.55.120; and WHEREAS, after such hearing and after duly considering all relevant evidence and testimony presented, the City Council has determined that in order to discharge its expected expenses and obligations the City requires an increase in property tax revenue from the previous year, in addition to the increase resulting from the addition of new construction and improvements to property and any increase in the value of State -assessed property; and WHEREAS, the City Council has determined it is in the City's best interest and necessary to meet its expenses and obligations for the property tax revenue to be increased for 2024, and the final assessed valuation calculation has been determined; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. An increase in the regular property tax levy, in addition to any amount resulting from the addition of new construction and improvements to property and any increase in the value of State -assessed property, is hereby authorized for the 2024 levy in the amount of $154,351, which is a percentage increase of 0.88% from the previous year. This increase is exclusive of additional revenue resulting from new construction, improvements to property, any increase in the value of State -assessed property, any annexations that have occurred and refunds made. CC: Legislative Development\Regular Tax Levy Increase 10-4-23 V. Carlsen Review by Andy Youn Page 1 of 2 7 Section 2. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force and effect January 1, 2024. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Office of the City Attorney CC: Legislative Development\Regular Tax Levy Increase 10-4-23 V. Carlsen Review by Andy Youn Ordinance Number: Page 2 of 2 8 WS Utilized by District TAXING DISTRICT PRELIMINARY LEVY LIMITATIONS WORKSHEET 10.12.2023 Tukwila 2023 Levy for 2024 Taxes 1 /0/ 1900 IPD: 1.03670 A. Highest regular tax which could have been lawfully levied beginning with the 1985 levy (refund levy not included). Year 2023 $17,514,762 x 101.000% = $17,689,910 Highest Lawful Levy Since 1985 Limit Factor/Max Increase 101% B. Current year's assessed value of new construction, improvements, and wind turbines, solar, biomass, and geothermal facilities in original districts before annexation occurred times last year's levy rate (if an error occurred or an error correction was made in the previous year, use the rate that would have been levied had no error occurred). $113,689,510 x 1.94728 + $1,000 = $221,385 A.V. Last Year's Levy Rate C. Tax Increment finance area increment AV increase (RCW 84.55.010(1)€) (value included in B & D cannot be included in C) $0 x 1.94728 + $1,000 = $0 A.V. Last Year's Levy Rate Current year's state assessed property value less last year's state assessed property value. The remainder is to be multiplied by last year's regular D' levy rate (or the rate that should have been levied). $252,416,094 - $252,416,094 = $ - Current Year's A.V. Previous Year's A.V. Remainder $0 x 1.94728 + $1,000 = $0.00 Remainder from Line C Last Year's Levy Rate E. Regular property tax limit: A+B+C+D = $17,911,295 Parts F through H are used in calculating the additional levy limit due to annexation. To find the rate to be used in F, take the levy limit as shown in Line E above and divide it by the current assessed value of the district, excluding the F. annexed area. $17,911,295 + $9,267,988,624 x $1,000 = 1.93259 Total in Line E Assessed Value Less Annexed AV G. Annexed area's current assessed value including new construction and improvements, times the rate in Line E. $0 x 1.93259 + $1,000 = $0.00 Annexed Area's A.V. Rate in Line F H. Regular property tax limit including annexation E+G = $17,911,295 I. Statutory maximum calculation Only enter fire/RFA rate, library rate, & firefighter pension fund rate for cities annexed to a fire/RFA or library, or has a firefighters pension fund. 3.60000 - 0.00000 - 0.26203 + 0.22500 = 3.56297 District base levy rate Fire or RFA Rate Library Rate Firefighter Pension Fund Statutory Rate Limit $9,267,988,624 x 3.56297 + $1,000 = $33,021,565 A.V. of District Statutory Rate Limit Statutory Amount J. Highest Lawful Levy For This Tax Year (Lesser of H and I) = $17,911,295 K New highest lawful levy since 1985 (Lesser of H & I minus C, unless A (before limit factor increase) is greater than $17,911,295 I or H minus C, then A before the limit factor increase L. Lesser of I and J $17,911,295 M. Refunds $81,227 N. Levy Corrections Year of Error: 0 1. Minus amount over levied (if applicable) $0.00 2. Plus amount under levied (if applicable) $0.00 O. Total: L+M+/-N (unless voted rate) $17,992,522 P. Tax Base For Regular Levy 1. Total district taxable value (including state -assessed property, and excluding boats, timber assessed value, and the senior citizen exemption for the regular levy) $9,267,988,624 Q. Tax Base for Excess and Voted Bond Levies 2. Less assessed value of the senior citizen exemption of less than $40,000 income or 65% of the median household income for the county based on lower of frozen or market value. $30,753,160 3. Plus Timber Assessed Value (TAV) $0 4. Tax base for excess and voted bond levies (1-2+3) $9,237,235,464 R. Increase Information 1. Levy rate based on allowable levy 1.94136 2. Last year's ACTUAL regular levy $17,535,559 3. Dollar Increase over last year other than New Construction (-) Annexation $154,351 4. Percent Increase over last year other than New Construction (-) Annexation 0.88021% REV 64 007 Page 1 9 10 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Manager CC: Mayor Ekberg DATE: October 17, 2023 SUBJECT: 2023 - 2024 Mid -Biennium Budget Amendment Ordinance ISSUE Approve the administrative 2023 - 2024 mid -biennium budget amendments. BACKGROUND While amending the budget is only required when a fund, in total, is in danger of exceeding budget, it is a best practice to adjust the budget to identify significant changes in financial plans, policy decisions, and provide transparency for key decisions. Several of the proposed budget amendments have been reviewed and consensus given by Council Committee and/or Council process as noted below in the charts. The proposed budget amendments make the following types of modification to the current biennium: • Housekeeping amendments such as adjusting budgeted beginning fund balance to actual beginning fund balance, • Increasing certain general fund revenue streams, • Reflect revenue -backed projects/expenditures, • Truing up certain expenditure budgets including liability insurance and LEOFF 1 responsibilities • Formalize budget amendments previously approved via Council consensus. The proposed amendments also reflect a change in budget philosophy. In order to maintain the integrity of department budgets and demonstrate the cost of providing the current level of services, department budgets that are expected to be below budget due to vacancies, etc., will not be reduced to cover expenditures elsewhere. Rather, unbudgeted expenditures will be called out in the charts below for full transparency, but budgets will not be moved from one department to another to cover the unbudgeted costs. All revenues and expenditures have been reviewed and expected results (net increase in revenue and net decreases in total expenditures) are shown in the Dept. 20 section. All budget amendments are detailed below with explanations provided for each amendment as well as the effect on ending fund balance. Budget amendments are summarized by fund in the tables attached to this memo. 11 INFORMATIONAL MEMO Page 2 DISCUSSION General Fund Adjust Beginning Fund Balance A beginning fund balance decrease of $2,840,262 to adjust the budgeted beginning fund balance to reflect the actual beginning fund balance. Land sale revenue that was anticipated at the end of 2022 was not received. It should be noted that after all amendments, the general fund is expected to meet reserve policy requirements for both 2023 and 2024. Amendments by Department The footnotes following the chart provide additional details about each proposed amendment. Dept. - Not - Description of Proposed Amendment - 2023 2024 Revenue Expenditure Revenue Expenditure Mayor (Economic Development) A Carryforward unused 2022 Econ Dev Strategy funds 84,000 Mayor (Economic Development) B Reallocate unused ARPA for Business assistance for use in 2024 budgets (from 9/25/23 Council meeting) (190,000) (190,000) Mayor (City Attorney) C Increase budget for Prosecution services (from 6/5/23 Reg Council Meeting) 9,000 18,000 Mayor Total $ (190,000) $ (97,000) $ - $ 18,000 Administrative Services (Comm Svcs & Engagement) B Reallocate unused ARPA for rental assistance for use in 2024 budgets (from 9/25/23 Council meeting) (135,000) (135,000) Administrative Services (TIS) D Tukwila Connectivity Project (from 3/20/23 Council meeting) 1,336,350 1,336,350 Administrative 0 True up voter registration costs 20,000 20,000 Administrative Services Total $ 1,201,350 $ 1,221,350 $ - $ 20,000 Finance E Roll forward unused budget -financial sustainability plan (100,000) 100,000 Finance F Roll forward unused budget-ERP expenses (270,000) 270,000 Finance I 2nd dedicated B&O position 170,000 Finance U Increase in liability insurance per WCIA 68,515 Finance Total $ - $ (370,000) $ - $ 608,515 Recreation -Parks B Reallocate returned 2023 ARPA funds to Parks Maint position 2024 (from 9/25/23 Council meeting) 149,455 Recreation G Grant: NRPA Community Wellness Hub grant & related activities (from 6/3/23 Council meeting) 85,000 85,000 Recreation G Grant: add budget for VSHSL grant (from 3/20/23 Council meeting) 60,000 60,000 60,000 60,000 Recreation G Add budget to account for Operating Grants & sponsorships activity and operating adjustments 60,396 60,396 61,670 61,670 Recreation G Grant: King County Re+ Grant (Reg Council meeting 10/2/23) 83,000 83,000 Recreation G Grant: Planning for Recreation Access (PRA) (Reg Council meeting 9/18/23) 10,000 10,000 187,300 187,300 Recreation Total $ 215,396 $ 215,396 $ 541,425 $ 391,970 Community Development B Reallocate returned 2023 ARPA funds to Permit Processing position 2024 (from 9/25/23 Council meeting) 246,429 Community Development G Increased funding for WSDOT TDM grant (from 10/2/23 Council meeting) 4,774 4,774 9,548 9,546 Community Development G New KC Metro TDM grant (from 2/13/23 Council meeting) 112,500 112,500 112,500 112,500 Community Development G New GMC Periodic Update grant (from 2/13/23 Council meeting) 72,500 72,500 52,500 52,500 Community Development G New Middle Housing grant (from 2/13/23 Council meeting) 140,500 140,500 10,500 10,500 uommuniry G New HAPI arant 15,591 15,591 4,410 4,410 Community Development Total $ 345,865 $ 345,865 $ 435,887 $ 189,456 Police H Increase Employer contributions for LEOFF1 plan 21,500 21,500 Police U Increase in liability insurance per WCIA 49,414 Police Total $ - $ 21,500 $ - $ 70,914 12 INFORMATIONAL MEMO Page 3 Dept. • Not - Description of Proposed Amendment - 2023 2024 Revenue Expenditure Revenue Expenditure Fire H Increase Employer contributions for LEOFF1 plan 28,500 28,500 Fire J Additional costs of PSRFA contract 700,000 Fire J Additional revenues for Fire services to reflect revised projections 200,000 400,000 Fire U Increase in liability insurance per WCIA 35,257 Fire Department Total $ 200,000 $ 728,500 $ 400,000 $ 63,757 Public Works -Street Maintenance B Reallocate unused 2023 ARPA to Street Maint positions for 2024 (from 9/25/23 Council meeting) 225,641 Public Works - Facilities, Eng. & Streets K Operating adjustments-PW Facilities, Engineering and Streets - Public Works U Increase in liability insurance per WCIA 7,336 Public Works Total $ - $ - $ 225,641 $ 7,336 Dept. Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Dept. 20 - Transfers Out L Authorize transfer of Gazebo Insurance funds from Gen Fd to Fd 301 51,681 Dept. 20 - Transfers Out F Roll forward unused budget-ERP transfer from 302 (270,000) 270,000 Dept. 20 - Transfers Out M Carry forward unused transfer in budget for TCC HVAC (100,000) 100,000 Dept. 20 - Transfers Out N Transfer out to Fund 105 - one time construction sales tax 170,470 Dept. 20 - Transfers Out P* Teamsters and non -rep retro pay adjustment for 2020-2022 1,500,000 Dept. 20 - Transfers Out V„ General revenue increases & departmental expenditure one-time savings 1,600,000 (400,000) (600,000) Dept. 20 Transfers Total $ 1,330,000 $ 1,222,151 $ 270,000 $ (500,000) Dept. Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure General Revenue S Increase Sales Tax budget to reflect better than expected results 1,000,000 1,100,000 General Revenue T Add additional budget to reflect higher interest earnings 150,000 150,000 Total General Revenue Amendments $ 1,150,000 $ - $ 1,250,000 $ - Total General Fund 4,252,611.00 3,287,762.00 3,122,953.00 869,948.00 A Carry forward of unused budget from 2022 for Economic Development Strategy B ARPA budget from business assistance and rental assistance are being returned for reallocation to 2024 for Planning, Parks, and Streets Maintenance C Increase budgets for prosecution services contracts D Add budgets for Tukwila Connectivity project grant revenues and related expenditures E Roll -forward of budget for Long Term Financial Sustainability plan, work began later in 2023 and will continue into 2024 F Roll -forward of budget for ERP project, delays in project timeline including payroll module implementation G Adjustments to Parks & Recreation operations and DCD due to grants and other funding received and related expenditures H Add budgets to 2023/2024 for contributions to LEOFF 1 retirees healthcare fund (Fund 503) from both Police and Fire I 2nd B&O position needed for basic program. Administering the B&O tax involves a wide variety of duties that exceed current capacity. We need to answer tax questions from customers, review tax returns filed for accuracy and timeliness (which includes gathering additional records/information and giving written tax reporting instructions), reconcile payments received to amounts reported on the returns, invoice and refund over- or under- payments, work amended returns/refund requests, work penalty waiver requests and appeals/correction requests, and maintain our database of active businesses and their filing 13 INFORMATIONAL MEMO Page 4 history (which involves analyzing DOR business licensing and sales tax data on a regular basis) to identify unfiled tax returns and/or unlicensed businesses. This is in addition to the 2 positions approved through the budget process. J Adding budget for Fire services contract with PSRFA to account for additional costs to City combined with additional revenue projected for fire services. Costs are associated with overtime and increased dispatch costs K Operating adjustments for Facilities, Engineering and Streets, three positions were reclassified resulting in a net $0 change to the Public Works budget L Authorizing a transfer to fund 301 for insurance proceeds related to gazebo replacement costs, which were paid by fund 301. Insurance proceeds were received in General Fund in 2022 M Work for the TCC HVAC project (in fund 302) is expected to occur primarily in 2024; project costs and sources are being shifted to 2024 N Authorize the transfer to Contingency of 10% of prior year construction sales taxes, 2022 construction related sales taxes $1,704,700 O True up voter registration costs. This is a pass -through charge from King county that we don't have control over P Retros for non -represented employees and one bargaining group will be charged to Dept. 20 rather than skew department budgets. Funding for retros will come from departments' underspending in 2023 and will be sufficient to cover the retro payments. Retro includes both salary adjustments as well as associated benefits. This affects approximately 80 employees. Notation only, budgets will not be adjusted. Non -rep retro approved via ordinance 2688 S Increasing the Retail Sales Taxes budget to reflect revised projections. This increase in primarily related to high costs and inflation and doesn't necessarily reflect higher retail sales activity T Adding additional budget to reflect higher interest earnings due to the current economic/interest rate environment U Increase in liability insurance per WCIA. This is above what was originally projected when the budget was drafted V Projected general revenue increases/departmental underspends. Notation only, budgets will not be adjusted 14 INFORMATIONAL MEMO Page 5 Other Funds Included in the proposed budget amendments are amendments in other funds. In addition to the amendments listed below, beginning fund balances are being adjusted to reflect actual balance available in the fund. The footnotes following the chart provide additional details about each proposed amendment. Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Contingency - Fund 105 1 Transfer in from General Fund - one time construction sales tax 170,470 Contingency - Fund 105 2 Add additional budget to reflect higher interest earnings 100,000 100,000 Total Contingency Fund Amendments $ 270,470 $ - $ 100,000 $ - Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Drug Seizure - Fund 109 3 Reclassify MHP Co -responder budget from Wages/Benefits to Prof Svcs (Reg meeting 5/8/23) - - Drug Seizure - Fund 109 3 Grant reimbursement AWC Co Responder (Reg meeting 9/18/23) 60,000 Total Drug Seizure Fund Amendments $ 60,000 $ - $ - $ - Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Residential Streets - Fund 103 4 Move forward unspent Neighborhood Traffic Calming budget to 2024 (project 82310301) - (250,000) - 250,000 Residential Streets - Fund 103 4 Roll over unspent funds of S 152nd Safe Routes to School (project 91710303) (4,000,000) (4,015,000) 4,000,000 4,015,000 Residential Streets - Fund 103 4 Roll over unspent funds of 46th Ave S Safe Routes to School (project 91710301) (510,000) 510,000 Residential Streets - Fund 103 Total Residential Street Amendments $ (4,000,000) $ (4,775,000) $ 4,000,000 $ 4,775,000 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Bridges & Arterial Street - Fund 104 4 Move forward Allentown Truck Reroute/EIS (project 92110405) funds of the $1.3M council allocation (750,000) 750,000 Bridges & Arterial Street - Fund 104 4 Move forward unspent Green River Trail Improvements (project 91810403) funds (1,150,000) 1,150,000 Bridges & Arterial Street - Fund 104 4 Move forward unspent funds, Transportation Element of Comprehensive Plan (project 72010405) (300,000) 350,000 Bridges & Arterial Street - Fund 104 4 Move forward budget for Southcenter/65th Ave (project 90310404) to 2024 (100,000) 100,000 Bridges & Arterial Street - Fund 104 5 Grant: Safe Streets & Roads for All, Used with Transportation Element of Comp Plan (Reg meeting 3/20/23) 200,000 200,000 Total Bridges & Arterial Street Amendments $ - $ (2,300,000) $ 200,000 $ 2,550,000 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Land Acq, Rec., & Park Dev. - Fund 301 2 Add additional budget to reflect higher interest earnings 142,000 Land Acq, Rec., & Park Dev. - Fund 301 6 Authorize additional expenditures for Parks project 142,000 Land Acq, Rec., & Park Dev. - Fund 301 7 Authorize transfer of Gazebo Insurance funds from Gen Fd to Fd 301 51,681 Total Land Acq., Rec., & Park Dev. Amendments $ 51,681 $ - $ 142,000 $ 142,000 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Urban Renewal - Fund 302 8 Roll forward unused budget-ERP transfer to Gen Fd (270,000) 270,000 Urban Renewal - Fund 302 9 Funding Transfer to 306 for Government contribution to PW Shops (Reg meeting 6/5/23) 1,000,000 Total Urban Renewal Amendments $ - $ 730,000 $ - $ 270,000 15 INFORMATIONAL MEMO Page 6 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Gen Gov Improvements - Fund 303 10 Carry forward unused budget for TCC HVAC (1,800,000) (1,865,000) 1,800,000 1,825,000 Gen Gov Improvements - Fund 303 10 Carry forward unused transfer in budget for TCC HVAC (100,000) 100,000 Gen Gov Improvements - Fund 303 4 Move forward & adjust unspent citywide facilities plan funds (340,000) 340,000 Gen Gov Improvements - Fund 303 4 Roll forward unused 2022 budget for City Hall Siding repair 149,200 Total General Government Improvements Amendments $ (1,900,000) $ (2,055,800) $ 1,900,000 $ 2,165,000 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Fire Impact Fees - Fund 304 11 Additional Fire Impact fees & authorize transfer 304 to 305 450,000 450,000 Total Fire Impact Fees Amendments $ 450,000 $ 450,000 $ - $ - Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Public Safety Plan - Fund 305 11 Authorize additional transfer from 304 to 305-Fire Impact fees 450,000 Total Public Safety Plan Amendments $ 450,000 $ - $ - $ - Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure City Facilities (PW Shops) - Fd 306 4 Roll forward remaining Minkler Shop improvements budget to 2024 (200,000) 200,000 City Facilities (PW Shops) - Fd 306 9 Additional authorization for 2023 PW Shops expenditures based on projections 200,000 City Facilities (PW Shops) -Fd 306 9 Funding Transfer from 302 for Government contribution to PW Shops 1,000,000 Total City Facilities (PW Shops) Amendments $ 1,000,000 $ - $ - $ 200,000 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure LID/Guaranty - Fund 206 & 233 12 Add budget for LID interest expense based on actual amount paid 19,188 LID/Guaranty Fund Amendments, $ - $ 19,188 $ - $ - Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Golf Course - Fund 411 13 Golf course fleet capital purchases (from 5/1/23 Council meeting) 80,000 Golf Course - Fund 411 13 Golf Course operations adjustments 100,000 100,000 333,000 84,199 Golf Course - Fund 411 15 Increase in liability insurance per WCIA 3,512 Total Golf Course Amendments $ 100,000 $ 180,000 $ 333,000 $ 87,711 16 INFORMATIONAL MEMO Page 7 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Water - Fund 401 15 Increase in liability insurance per WCIA 5,535 Total Water Amendments $ - $ - $ - $ 5,535 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Sewer - Fund 402 15 Increase in liability insurance per WCIA 4,005 Total Sewer Amendments $ - $ - $ - $ 4,005 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Surface Water - Fund 412 15 Increase in liability insurance per WCIA 4,005 Total Surface Water Amendments $ - $ - $ - $ 4,005 Fund Note Description of Proposed Amendment 2023 2024 Revenue Expenditure Revenue Expenditure Insurance Fund LEOFF1 (503) 14 Increase Employer contributions for LEOFF1 plan 50,000 50,000 Total Insurance LEOFF 1 Fund Amendments $ 50,000 $ - $ 50,000 $ - 1 Transfer in 1% of prior year construction sales tax, per policy 2 Adding additional budget to reflect higher interest earnings due to the current economic/interest rate environment 3 Reclassify mental health professional from a position to a contract. Simply moves existing budget from salaries/benefits to contracted services 4 Reallocate budget from approved projects from 2023 to 2024 5 Recognize new grant revenue 6 Add expenditure budget to account for additional interest earnings 7 Insurance proceeds for the gazebo rebuild were placed in the general fund but expenditures occurred in fund 301. Authorizes transfer of the insurance proceeds to the correct fund 8 Move funding for ERP project from 2023 to 2024 9 Transfer funds from fund 302 to the PW Shops project and align budgets to current project spend plan 10 Reallocate budget from approved projects from 2023 to 2024 11 Increase fire impact fee budget to reflect revised projections and true up transfers to fund 305 12 True up expenditure budget for Local Improvement District #33 to match debt service requirements 13 Add budget for golf course capital purchases. Revenues have increased sufficiently enough to cover these additional expenses 14 Add budgets to 2023/2024 for contributions to LEOFF 1 retirees healthcare fund (Fund 503) from both Police and Fire 15 Increase in liability insurance per WCIA. This is above what was originally projected when the budget was drafted 17 INFORMATIONAL MEMO Page 8 Adjusting Beginning Fund Balances In addition to the budget amendments proposed for other funds, beginning fund balances in various funds are also being adjusted to true up to actual beginning fund balances. The chart below details the adjustments to beginning fund balances included with these budget amendments. Beginning Fund Balance _ _ — Fund Adopted Budget Proposed Amendments Proposed Revised Budget General Fund: General Fund 19,085,142 (2,840,262) 16,244,880 Contingency 7,042,148 (295,673) 6,746,475 Special Revenue Funds: Lodging Tax 2,048,201 294,218 2,342,419 Drug Seizure 435,515 (140,295) 295,220 Debt Service Funds: LTGO Debt Service Funds (2)X) - - - UTGO Debt Service Fund 314,818 87,811 402,630 LID/Guaranty 1,345,636 (12,837) 1,332,799 Capital Projects Funds: Residential Streets 847,903 (113,497) 734,407 Bridges and Arterial Streets 6,570,879 (1,036,386) 5,534,493 Land Acquisition, Rec. and Park Dev. 3,751,186 (681,383) 3,069,803 Urban Renewal 1,183,800 220,443 1,404,242 General Government 444,128 109,258 553,386 Fire Impact Fees - - - Public Safety Plan 538,557 453,309 991,865 City Facilities (PW Shops) 2,274,324 (314,958) 1,959,366 Enterprise Funds: Water 4,690,562 479,614 5,170,176 Sewer 11,742,027 536,097 12,278,125 Golf 1,505,043 (36,912) 1,468,130 Surface Water 5,944,369 1,195,951 7,140,321 Internal Service Funds: Equipment Rental and Replacement 4,322,760 (100,403) 4,222,357 Employee Healthcare Plan 764,171 1,607,526 2,371,697 LEOFF 1 Retiree Healthcare Plan 258,737 (84,183) 174,554 Fiduciary Fund: Firemen's Pension 1,543,370 22,737 1,566,108 $ 76,653,277 $ (649,824) $ 76,003,453 RECOMMENDATION The Council is asked to approve the Budget Amendment ordinance and consider this item at the November 13, 2023, Committee of the Whole, and November 20, 2023, Regular Council Meeting. ATTACHMENTS Draft Ordinance Proposed Budget Changes — Summary by Fund Reconciliation of 2023 - 2024 Budget Summary to Ordinance 18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2688, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2023-2024 BIENNIUM, TO ADOPT AN AMENDED MID -BIENNIUM BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on November 28, 2022, the City Council of the City of Tukwila adopted Ordinance No. 2688, which adopted the 2023 - 2024 biennial budget of the City of Tukwila; and WHEREAS, a mid -biennium budget amendment was presented to the City Council in a timely manner for their review, in accordance with RCW 35A.34.130; and WHEREAS, on November 13, 2023, following required public notification, the City Council conducted a public hearing on the proposed mid -biennium budget amendment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2688 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2023-2024 Mid - Biennium Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.34.200. Section 2. Cost of living adjustments (COLAs) for non -represented employees shall be implemented per the City Council's Compensation Policy. Section 3. Estimated Revenues and Appropriations. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: CC:Legislative Development\Budget Amendment 2023-2024 Mid -Biennium 10-17-23 VC:AY Review and analysis by Andy Youn Page 1 of 3 19 FUND EXPENDITURES REVENUES 000 General $166/185,032 $166/185,032 $171,020,334 $171,020,334 105 Contingency $7,082,148 $7,156,945 $7,082,148 $7,156,945 101 H^+e%��„""ot�Lodging Tax $3,530,201 $3,530,201 $3,824,319 $3,824,319 103 City StreetResidential Streets $9,326,503 $9,326,503 $9,213,007 $9,213,007 104 Bridges and Arterial Streets $30,749479 $30,749,473 $29,913,093 $29,913,093 109 Drug Seizure Fund $666,515 $666,515 $586,220 $586,220 2XX LTGO Debt Service Funds $11,815,404 $11,815,404 213 Unlimited Tax G.O.UTGO Bonds $9,615,168 $9,615,168 $9,702,980 $9,702,980 206 LID Guaranty $764,958 $764,958 $756,347 $756,347 233 2013 LID $1,615,678 $1,615,678 $1,611,452 $1,611,452 301 Land Acquisition, Recreation & Park Dev. $4,692,436 $4,204,734 $4,692,436 $4,204,734 302 Facility ReplacementUrban Renewal $2,533,800 $2,754,242 $2,533,800 $2,754,242 303 General Government Improvements $2,345,128 $2,345,128 $2,454,386 $2,454,386 304 Fire Improvemcntslmpact Fees $600,000 $1,050,000 $600,000 $1,050,000 305 Public Safety Plan $2,738,557 $2,738,557 $3,641,865 $3,641,865 306 City Facilities $6,256,324 $6,256,324 $6,941,366 $6,941,366 401 Water $22,155,562 $22,155,562 $22,635,176 $22,635,176 402 Sewer $34,034,242 $34,034,242 $34,570,340 $34,570,340 411 Foster Golf Course $6,094,043 $6,094,043 $6,490,130 $6,490,130 412 Surface Water $28,393,244 $28,393,244 $29,589,196 $29,589,196 501 Equipment Rental and Replacment $7,945,539 $7,945,539 $7,845,136 $7,845,136 502 Insurance FundEmployee Healthcare Plan $13,172,855 $13,172,855 $14,780,381 $14,780,381 503 Insurance LEOFF 1 FundRetiree Healthcare $959,737 $959,737 Plan $975,554 $975,554 611 Firemen's Pension $1,694,370 $1,694,370 $1,717,108 $1,717,108 $37576R 92A $37-5T2-66T924 Total $385,249,815 $385,249,815 CC:Legislative Development\Budget Amendment 2023-2024 Mid -Biennium 10-17-23 VC:AY Review and analysis by Andy Youn 20 Page 2 of 3 Section 4. Copies on File. A complete copy of the amended budget for 2023-2024, as adopted, together with a copy of this amending ordinance, shall be kept on file electronically by the City Clerk and accessible from the City's website in accordance with Washington State records retention schedule requirements and City policy, and shall be made available to the public upon request. A copy of the amended budget for 2023-2024, as adopted, together with a copy of this amending ordinance, shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 5. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2023. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: City of Tukwila 2023-2024 Mid -Biennium Budget Amendment CC:Legislative Development\Budget Amendment 2023-2024 Mid -Biennium 10-17-23 VC:AY Review and analysis by Andy Youn Page 3 of 3 21 22 City of Tukwila Mid -Biennium Budget Amendment Reconciliation of Budget Summary to Ordinance REVENUES 2023 Beginning Fund Balance 2023 Revenues 2024 Revenues Total Revenues Mid -Biennial Amendment Mid -Biennial Amendments Mid -Biennial Amended Revenues Beg. Fund Balance �) 2023 2024 000 General $ 19,085,142 $ 71,839,634 $ 75,560,256 $ 166,485,032 $ (2,840,262) $ 4,252,611 $ 3,122,953 $ 4,535,302 $ 171,020,334 105 Contingency 7,042,148 20,000 20,000 7,082,148 (295,673) 270,470 100,000 74,797 7,156,945 101 Lodging Tax 2,048,201 726,000 756,000 3,530,201 294,218 - - 294,218 3,824,419 103 Residential Street 847,903 5,352,800 3,125,800 9,326,503 (113,497) (4,000,000) 4,000,000 (113,497) 9,213,007 104 Arterial Street 6,570,879 4,873,800 19,304,800 30,749,479 (1,036,386) - 200,000 (836,386) 29,913,093 109 Drug Seizure Fund 435,515 115,500 115,500 666,515 (140,295) 60,000 - (80,295) 586,220 2XX LTGO Debt Service - 6,179,070 5,636,334 11,815,404 - - - - 11,815,404 213 UTGO Bonds 314,818 4,487,175 4,813,175 9,615,168 87,811 - - 87,811 9,702,980 206 LID Guaranty 758,958 3,000 3,000 764,958 (8,612) - - (8,612) 756,347 233 2013 LID 586,678 525,000 504,000 1,615,678 (4,225) - - (4,225) 1,611,452 301 Land Acquisition, Rec & Park Dev. 3,751,186 487,250 454,000 4,692,436 (681,383) 51,681 142,000 (487,702) 4,204,734 302 Urban Renewal 1,183,800 1,350,000 - 2,533,800 220,443 - - 220,443 2,754,242 303 General Governmentlmprvmnts 444,128 1,901,000 - 2,345,128 109,258 (1,900,000) 1,900,000 109,258 2,454,386 304 Fire Impact Fees - 300,000 300,000 600,000 - 450,000 - 450,000 1,050,000 305 Public Safety Plan 538,557 1,100,000 1,100,000 2,738,557 453,309 450,000 - 903,309 3,641,865 306 City Facilities 2,274,324 2,141,000 1,841,000 6,256,324 (314,958) 1,000,000 - 685,042 6,941,366 401 Water 4,690,562 7,728,000 9,737,000 22,155,562 479,614 - - 479,614 22,635,176 402 Sewer 11,742,027 10,882,300 11,409,915 34,034,242 536,097 - - 536,097 34,570,340 411 Foster Golf Course 1,505,043 2,294,500 2,294,500 6,094,043 (36,912) 100,000 333,000 396,088 6,490,130 412 Surface Water 5,944,369 11,367,500 11,081,375 28,393,244 1,195,951 - - 1,195,951 29,589,196 501 Equipment Rental 4,322,760 2,237,991 1,384,788 7,945,539 (100,403) - - (100,403) 7,845,136 502 Insurance Fund 764,171 6,204,342 6,204,342 13,172,855 1,607,526 - - 1,607,526 14,780,381 503 Insurance - LEOFF 1 Fund 258,737 350,500 350,500 959,737 (84,183) 50,000 50,000 15,817 975,554 611 Firemen's Pension 1,543,370 75,500 75,500 1,694,370 22,737 - - 22,737 1,717,108 Total $ 76,653,277 $ 142,541,862 $ 156,071,785 $ 375,266,924 $ (649,824) $ 784,762 $ 9,847,953 $ 9,982,891 $ 385,249,815 EXPENDITURES 2023 Expenditures 2024 Expenditures 2024 Ending Fund Balance Total Expenditures Mid -Biennial Amendment Mid -Biennial Amendments Mid -Biennial Amended Expenditures 2023 2024 Mid -Biennial Net ' Effect on 2024 Ending Fund Balance 000 General $ 75,756,268 $ 77,992,440 $ 12,736,324 $ 166,485,032 $ 3,287,762 $ 869,948 $ 377,592 $ 4,535,302 $ 171,020,334 105 Contingency - - 7,082,148 7,082,148 - - 74,797 74,797 7,156,945 101 Lodging Tax 938,890 944,668 1,646,643 3,530,201 - - 294,218 294,218 3,824,419 103 Residential Street 5,912,000 3,145,000 269,503 9,326,503 (4,775,000) 4,775,000 (113,497) (113,497) 9,213,007 104 Arterial Street 6,149,662 19,209,451 5,390,366 30,749,479 (2,300,000) 2,550,000 (1,086,386) (836,386) 29,913,093 109 Drug Seizure Fund 266,008 279,297 121,211 666,515 - - (80,295) (80,295) 586,220 2XX LTGO Debt Service 6,179,070 5,636,334 - 11,815,404 - - - - 11,815,404 213 UTGO Bonds 4,485,975 4,811,975 317,218 9,615,168 - - 87,811 87,811 9,702,980 206 LID Guaranty - - 764,958 764,958 19,188 - (27,799) (8,612) 756,347 233 2013 LID 525,000 504,000 586,678 1,615,678 - - (4,225) (4,225) 1,611,452 301 Land Acquisition, Rec & Park Dev. 931,250 1,179,000 2,582,186 4,692,436 - 142,000 (629,702) (487,702) 4,204,734 302 Urban Renewal 300,000 200,000 2,033,800 2,533,800 730,000 270,000 (779,557) 220,443 2,754,242 303 General Governmentlmpnnnnts 2,345,128 - - 2,345,128 (2,055,800) 2,165,000 58 109,258 2,454,386 304 Fire Improvements 300,000 300,000 - 600,000 450,000 - - 450,000 1,050,000 305 Public Safety Plan 1,319,019 1,317,849 101,689 2,738,557 - - 903,309 903,309 3,641,865 306 City Facilities 2,700,000 3,000,000 556,324 6,256,324 - 200,000 485,042 685,042 6,941,366 401 Water 9,191,362 9,852,599 3,111,601 22,155,562 - 5,535 474,079 479,614 22,635,176 402 Sewer 12,549,000 13,570,855 7,914,388 34,034,242 - 4,005 532,092 536,097 34,570,340 411 Foster Golf Course 2,312,871 2,441,024 1,340,148 6,094,043 180,000 87,711 128,377 396,088 6,490,130 412 Surface Water 12,409,424 11,792,110 4,191,711 28,393,244 - 4,005 1,191,946 1,195,951 29,589,196 501 Equipment Rental 3,210,844 3,076,219 1,658,476 7,945,539 - - (100,403) (100,403) 7,845,136 502 Insurance Fund 6,060,861 6,506,054 605,940 13,172,855 - - 1,607,526 1,607,526 14,780,381 503 Insurance -LEOFF 1 Fund 444,438 460,558 54,741 959,737 - - 15,817 15,817 975,554 611 Firemen's Pension 62,000 62,000 1,570,370 1,694,370 - - 22,737 22,737 1,717,108 Total $ 154,349,069 $ 166,281,432 $ 54,636,423 $ 375,266,924 $ (4,463,851) $ 11,073,204 $ 3,373,538 $ 9,982,891 $ 385,249,815 23 24 Proposed Budget Changes - Summary by Fund 2023 Beginning Fund Balance Revenue Expenditure Ending Fund Balance Fund Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget General Fund Depts. Council - - Mayor (190,000) (97,000) Administrative Services 1,201,350 1,221,350 Finance - (370, 000) Recreation & Parks 215,396 215,396 Community Development 345,865 345,865 Municipal Court - - Police - 21,500 Fire 200,000 728,500 Public Works - - Transfers 1,330,000 1,222,151 General Revenue 1,150, 000 - Total General Fund 19,085,142 (2,840,262) 16,244,880 71,839,634 4,252,611 76,092,245 75,756,268 3,287,762 79,044,030 15,168,508 (1,875,413) 13,293,095 Special Revenue Funds: Lodging Tax 2,048,201 294,218 2,342,419 726,000 - 726,000 938,890 - 938,890 1,835,311 294,218 2,129,529 Drug Seizure 435,515 (140,295) 295,220 115,500 60,000 175,500 266,008 - 266,008 285,008 (80,295) 204,713 Contingency 7,042,148 (295,673) 6,746,475 20,000 270,470 290,470 - - - 7,062,148 (25,203' 7,036,945 Debt Service Funds: LTGO Debt Service Funds (DX) - - - 6,179,070 - 6,179,070 6,179,070 - 6,179,070 - - - UTGO Debt Service Fund 314,818 87,811 402,630 4,487,175 - 4,487,175 4,485,975 - 4,485,975 316,018 87,811 403,830 LID/Guaranty 1,345,636 (12,837) 1,332,799 528,000 - 528,000 525,000 19,188 544,188 1,348,636 (32,024) 1,316,612 Capital Projects Funds: Residential Streets 847,903 (113,497) 734,407 5,352,800 (4,000,000) 1,352,800 5,912,000 (4,775,000) 1,137,000 288,703 661,503 950,207 Bridges and Arterial Streets 6,570,879 (1,036,386) 5,534,493 4,873,800 - 4,873,800 6,149,662 (2,300,000) 3,849,662 5,295,017 1,263,614 6,558,631 Land Acquisition, Rec. and Park Dev. 3,751,186 (681,383) 3,069,803 487,250 51,681 538,931 931,250 - 931,250 3,307,186 (629,702) 2,677,484 Urban Renewal 1,183,800 220,443 1,404,242 1,350,000 - 1,350,000 300,000 730,000 1,030,000 2,233,800 (509,557) 1,724,242 General Government 444,128 109,258 553,386 1,901,000 (1,900,000) 1,000 2,345,128 (2,055,800) 289,328 - 265,058 265,058 Fire Impact Fees - - - 300,000 450,000 750,000 300,000 450,000 750,000 - - - Public Safety Plan 538,557 453,309 991,865 1,100,000 450,000 1,550,000 1,319,019 - 1,319,019 319,538 903,309 1,222,846 City Facilities (PW Shops) 2,274,324 (314,958) 1,959,366 2,141,000 1,000,000 3,141,000 2,700,000 - 2,700,000 1,715,324 685,042 2,400,366 Enterprise Funds: Water 4,690,562 479,614 5,170,176 7,728,000 - 7,728,000 9,191,362 - 9,191,362 3,227,200 479,614 3,706,814 Sewer 11,742,027 536,097 12,278,125 10,882,300 - 10,882,300 12,549,000 - 12,549,000 10,075,327 536,097 10,611,425 Golf 1,505,043 (36,912) 1,468,130 2,294,500 100,000 2,394,500 2,312,871 180,000 2,492,871 1,486,672 (116,912) 1,369,759 Surface Water 5,944,369 1,195,951 7,140,321 11,367,500 - 11,367,500 12,409,424 - 12,409,424 4,902,446 1,195,951 6,098,397 Internal Service Funds: Equipment Rental and Replacement 4,322,760 (100,403) 4,222,357 2,237,991 - 2,237,991 3,210,844 - 3,210,844 3,349,907 (100,403) 3,249,504 Employee Healthcare Plan 764,171 1,607,526 2,371,697 6,204,342 - 6,204,342 6,060,861 - 6,060,861 907,652 1,607,526 2,515,178 LEOFF 1 Retiree Healthcare Plan 258,737 (84,183) 174,554 350,500 50,000 400,500 444,438 - 444,438 164,799 (34,183) 130,616 Firemen's Pension 1,543,370 22,737 1,566,108 75,500 - 75,500 62,000 - 62,000 1,556,870 22,737 1,579,608 $ 76,653,277 $ (649,824) $ 76,003,453 $ 142,541,862 ' $ 784,762 $ 143,326,624 $ 154,349,069 $ (4,463,851) $ 149,885,218 $ 64,846,070 $ 4,598,789 $ 69,444,859 2024 Beginning Fund Balance Revenue Expenditure Ending Fund Balance Fund Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget Adopted Budget Proposed Amendments Proposed Revised Budget General Fund Depts. Council $ - $ - Mayor - 18,000 Administrative Services - 20,000 Finance - 608,515 Recreation & Parks 541,425 391,970 Community Development 435,887 189,456 Municipal Court - - Police - 70,914 Fire 400,000 63,757 Public Works 225,641 7,336 Transfers 270,000 (500, 000) General Revenue . 1,250,000 - Total General Fund 15,168,508 (1,875,413) 13,293,095 75,560,256 3,122,953 78,683,209 77,992,440 869,948 78,862,388 12,736,324 377,592 13,113,916 Special Revenue Funds: Lodging Tax 1,835,311 294,218 2,129,529 756,000 - 756,000 944,668 - 944,668 1,646,643 294,218 1,940,861 Drug Seizure 285,008 (80,295) 204,713 115,500 - 115,500 279,297 - 279,297 121,211 (80,295) 40,916 Contingency 7,062,148 (25,203) 7,036,945 20,000 100,000 120,000 - - - 7,082,148 74,797 7,156,945 Debt Service Funds: LTGO Debt Service Funds (2)00 - - - 5,636,334 - 5,636,334 5,636,334 - 5,636,334 - - - UTGO Debt Service Fund 316,018 87,811 403,830 4,813,175 - 4,813,175 4,811,975 - 4,811,975 317,218 87,811 405,030 LID/Guaranty 1,348,636 (32,024) 1,316,612 507,000 - 507,000 504,000 - 504,000 1,351,636 (32,024) 1,319,612 Capital Projects Funds: Residential Streets 288,703 661,503 950,207 3,125,800 4,000,000 7,125,800 3,145,000 4,775,000 7,920,000 269,503 (113,497) 156,007 Bridges and Arterial Streets 5,295,017 1,263,614 6,558,631 19,304,800 200,000 19,504,800 19,209,451 2,550,000 21,759,451 5,390,366 (1,086,386) 4,303,980 Land Acquisition, Rec. and Park Dev. 3,307,186 (629,702) 2,677,484 454,000 142,000 596,000 1,179,000 142,000 1,321,000 2,582,186 (629,702) 1,952,484 Urban Renewal 2,233,800 (509,557) 1,724,242 - - - 200,000 270,000 470,000 2,033,800 (779,557) 1,254,242 General Government - 265,058 265,058 - 1,900,000 1,900,000 - 2,165,000 2,165,000 - 58 58 Fire Impact Fees - - - 300,000 - 300,000 300,000 - 300,000 - - - Public Safety Plan 319,538 903,309 1,222,846 1,100,000 - 1,100,000 1,317,849 - 1,317,849 101,689 903,309 1,004,997 City Facilities (PW Shops) 1,715,324 685,042 2,400,366 1,841,000 - 1,841,000 3,000,000 200,000 3,200,000 556,324 485,042 1,041,366 Enterprise Funds: Water 3,227,200 479,614 3,706,814 9,737,000 - 9,737,000 9,852,599 5,535 9,858,134 3,111,601 474,079 3,585,680 Sewer 10,075,327 536,097 10,611,425 11,409,915 - 11,409,915 13,570,855 4,005 13,574,860 7,914,388 532,092 8,446,480 Golf 1,486,672 (116,912) 1,369,759 2,294,500 333,000 2,627,500 2,441,024 87,711 2,528,735 1,340,148 128,377 1,468,524 Surface Water 4,902,446 1,195,951 6,098,397 11,081,375 - 11,081,375 11,792,110 4,005 11,796,115 4,191,711 1,191,946 5,383,657 Internal Service Funds: Equipment Rental and Replacement 3,349,907 (100,403) 3,249,504 1,384,788 - 1,384,788 3,076,219 - 3,076,219 1,658,476 (100,403) 1,558,073 Employee Healthcare Plan 907,652 1,607,526 2,515,178 6,204,342 - 6,204,342 6,506,054 - 6,506,054 605,940 1,607,526 2,213,466 LEOFF 1 Retiree Healthcare Plan 164,799 (34,183) 130,616 350,500 50,000 400,500 460,558 - 460,558 54,741 15,817 70,558 Firemen's Pension 1,556,870 22,737 1,579,608 75,500 - 75,500 62,000 - 62,000 1,570,370 22,737 1,593,108 REVENUES 2023 Beginning Fund Balance 2023 Revenues 2024 Revenues Total Revenues Mid -Biennial Amendment Mid -Biennial Amendments Mid -Biennial Amended Revenues Beg. Fund Balance Adj. 2023 2024 000 General $ 19,085,142 $ 71,839,634 $ 75,560,256 $ 166,485,032 $ (2,840,262) $ 4,252,611 $ 3,122,953 $ 4,535,302 $ 171,020,334 105 Contingency 7,042,148 20,000 20,000 7,082,148 (295,673) 270,470 100,000 74,797 7,156,945 101 Lodging Tax 2,048,201 726,000 756,000 3,530,201 294,218 - - 294,218 3,824,419 103 Residential Street 847,903 5,352,800 3,125,800 9,326,503 (113,497) (4,000,000) 4,000,000 (113,497) 9,213,007 104 Arterial Street 6,570,879 4,873,800 19,304,800 30,749,479 (1,036,386) - 200,000 (836,386) 29,913,093 109 Drug Seizure Fund 435,515 115,500 115,500 666,515 (140,295) 60,000 - (80,295) 586,220 2XX LTGO Debt Service - 6,179,070 5,636,334 11,815,404 - - - - 11,815,404 213 UTGO Bonds 314,818 4,487,175 4,813,175 9,615,168 87,811 - - 87,811 9,702,980 206 LID Guaranty 758,958 3,000 3,000 764,958 (8,612) - - (8,612) 756,347 233 2013 LID 586,678 525,000 504,000 1,615,678 (4,225) - - (4,225) 1,611,452 301 Land Acquisition, Rec & Park Dev. 3,751,186 487,250 454,000 4,692,436 (681,383) 51,681 142,000 (487,702) 4,204,734 302 Urban Renewal 1,183,800 1,350,000 - 2,533,800 220,443 - - 220,443 2,754,242 303 General Government lmprvmnts 444,128 1,901,000 - 2,345,128 109,258 (1,900,000) 1,900,000 109,258 2,454,386 304 Fire Impact Fees - 300,000 300,000 600,000 - 450,000 - 450,000 1,050,000 305 Public Safety Plan 538,557 1,100,000 1,100,000 2,738,557 453,309 450,000 - 903,309 3,641,865 306 City Facilities 2,274,324 2,141,000 1,841,000 6,256,324 (314,958) 1,000,000 - 685,042 6,941,366 401 Water 4,690,562 7,728,000 9,737,000 22,155,562 479,614 - - 479,614 22,635,176 402 Sewer 11,742,027 10,882,300 11,409,915 34,034,242 536,097 - - 536,097 34,570,340 411 Foster Golf Course 1,505,043 2,294,500 2,294,500 6,094,043 (36,912) 100,000 333,000 396,088 6,490,130 412 Surface Water 5,944,369 11,367,500 11,081,375 28,393,244 1,195,951 - - 1,195,951 29,589,196 501 Equipment Rental 4,322,760 2,237,991 1,384,788 7,945,539 (100,403) - - (100,403) 7,845,136 502 Insurance Fund 764,171 6,204,342 6,204,342 13,172,855 1,607,526 - - 1,607,526 14,780,381 503 Insurance - LEOFF 1 Fund 258,737 350,500 350,500 959,737 (84,183) 50,000 50,000 15,817 975,554 611 Firemen's Pension 1,543,370 75,500 75,500 1,694,370 22,737 - - 22,737 1,717,108 Total $ 76,653,277 $ 142,541,862 $ 156,071,785 $ 375,266,924 $ (649,824) $ 784,762 $ 9,847,953 $ 9,982,891 $ 385,249,815 EXPENDITURES 2023 Expenditures 2024 Expenditures 2024 Ending Fund Balance Total Expenditures Mid -Biennial Amendment Mid -Biennial Amendments al Amended Mid-Biennial Expenditures 2023 2024 Mid -Biennial Net 1 Effect on 2024 Ending Fund Balance 000 General $ 75,756,268 $ 77,992,440 $ 12,736,324 $ 166,485,032 $ 3,287,762 $ 869,948 $ 377,592 $ 4,535,302 $ 171,020,334 105 Contingency - - 7,082,148 7,082,148 - - 74,797 74,797 7,156,945 101 Lodging Tax 938,890 944,668 1,646,643 3,530,201 - - 294,218 294,218 3,824,419 103 Residential Street 5,912,000 3,145,000 269,503 9,326,503 (4,775,000) 4,775,000 (113,497) (113,497) 9,213,007 104 Arterial Street 6,149,662 19,209,451 5,390,366 30,749,479 (2,300,000) 2,550,000 (1,086,386) (836,386) 29,913,093 109 Drug Seizure Fund 266,008 279,297 121,211 666,515 - - (80,295) (80,295) 586,220 2XX LTGO Debt Service 6,179,070 5,636,334 - 11,815,404 - - - - 11,815,404 213 UTGO Bonds 4,485,975 4,811,975 317,218 9,615,168 - - 87,811 87,811 9,702,980 206 LID Guaranty - - 764,958 764,958 19,188 - (27,799) (8,612) 756,347 233 2013 LID 525,000 504,000 586,678 1,615,678 - - (4,225) (4,225) 1,611,452 301 Land Acquisition, Rec & Park Dev. 931,250 1,179,000 2,582,186 4,692,436 - 142,000 (629,702) (487,702) 4,204,734 302 Urban Renewal 300,000 200,000 2,033,800 2,533,800 730,000 270,000 (779,557) 220,443 2,754,242 303 General Government lmprvmnts 2,345,128 - - 2,345,128 (2,055,800) 2,165,000 58 109,258 2,454,386 304 Fire Improvements 300,000 300,000 - 600,000 450,000 - - 450,000 1,050,000 305 Public Safety Plan 1,319,019 1,317,849 101,689 2,738,557 - - 903,309 903,309 3,641,865 306 City Facilities 2,700,000 3,000,000 556,324 6,256,324 - 200,000 485,042 685,042 6,941,366 401 Water 9,191,362 9,852,599 3,111,601 22,155,562 - 5,535 474,079 479,614 22,635,176 402 Sewer 12,549,000 13,570,855 7,914,388 34,034,242 - 4,005 532,092 536,097 34,570,340 411 FosterGolfCourse 2,312,871 2,441,024 1,340,148 6,094,043 180,000 87,711 128,377 396,088 6,490,130 412 Surface Water 12,409,424 11,792,110 4,191,711 28,393,244 - 4,005 1,191,946 1,195,951 29,589,196 501 Equipment Rental 3,210,844 3,076,219 1,658,476 7,945,539 - - (100,403) (100,403) 7,845,136 502 Insurance Fund 6,060,861 6,506,054 605,940 13,172,855 - - 1,607,526 1,607,526 14,780,381 503 Insurance - LEOFF 1 Fund 444,438 460,558 54,741 959,737 - - 15,817 15,817 975,554 611 Firemen's Pension 62,000 62,000 1,570,370 1,694,370 - - 22,737 22,737 1,717,108 Total $ 154,349,069 $ 166,281,432 $ 54,636,423 $ 375,266,924 $ (4,463,851) $ 11,073,204 $ 3,373,538 $ 9,982,891 $ 385,249,815 28 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Tony Cullerton, Deputy Finance Director CC: Mayor Ekberg DATE: October 23, 2023 SUBJECT: August 2023 General Fund Departmental Budget-to-Actuals Report Summary The purpose of the August 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 August 2023 report is based on financial data available as of October 9, 2023, for the period ending August 31, 2023. Expenditures General Fund departmental expenditures totaled $46 million through August, which is $2.2 million below the allocated budget of $48 million. Department 20, which transfers to other funds, reported $3 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 August was $49 million, which is below the allocated budget by $2.5 million. However, due to ongoing labor negotiations, the two million dollars under budget does not represent savings. Allocated Budget As of the end of August, all departments except Administrative Services and Fire are operating within their allocated budgets. The overage in Administrative Services is attributed to the Private LTE project that will be reimbursed by a State grant. The increase in Fire is due to higher than anticipated overtime and increased call volume with dispatch services. % Expended When comparing YTD spending to the percent of year completed (67%), both Administrative Services and Fire finished the month above 57%. Administrative Services is a result of the Private LTE project. The increase in Fire pertains to higher than anticipated overtime and increased call volume with dispatch services. 1 29 INFORMATIONAL MEMO Page 2 2023 Compared to 2022 A few departments reported increases greater than 5% and $50,000 when compared to the same period last year. However, most departments are within their budget allocations and hovering around the 67% mark of % Expended. Mayor's Office is up $124,980 (9.3%) over last year. Increases are attributed to Attorney Services (Special Matters) and Economic Development - Consulting Services (Community Attributes Inc). Administrative Services has been previously explained by the computer/laptop purchases for the Chromebooks, related to the Private LTE project. These expenditures will be reimbursed by a State grant. Police is significantly under their allocated budget and finished the month at 60% at 67% of the year. However, because they were $1.3 million (10.4%) over last year, we look further into the change. The increases in PD are salaries, OT, Supplies, and Tech Services. Salaries and OT are due to limited staffing. Examples of Supplies include equipment for firearm instructor school, revolver supplies, body cam repair kits. Tech Services is a contract between the City and Axon Enterprises. Fire has been previously explained. Departmental Variances Year to Date Department Expenditures Through August 2023: DEPARTMENT BUDGET ACTUAL 2023 Annual 2023 Allocated 2021 2022 2023 Allocated Budget vs Actual OVER/(UNDER) % Expended $ Change % Change 2022/2023 City Council 384,889 254,092 222,681 231,966 246,451 (7,641) 64.0% 14,485 6.2% Mayor's Office 2,502,666 1,674,077 1,287,985 1,343,393 1,468,372 (205,704) 58.7% 124,980 9.3% Administrative Services 5,676,491 3,719,233 3,183,419 3,121,353 4,461,149 741,916 78.6% 1,339,796 42.9% Finance Department 3,868,642 2,610,403 1,789,333 2,252,979 2,187,915 (422,488) 56.6% (65,064) -2.9% Rec Dept / Parks Maint 5,109,490 3,547,237 2,762,115 3,218,833 3,361,290 (185,947) 65.8% 142,457 4.4% Community Dev 4,672,314 3,112,971 2,526,548 2,755,581 2,956,228 (156,743) 63.3% 200,646 7.3% Municipal Court 1,741,340 1,160,893 802,203 1,027,557 1,065,698 (95,195) 61.2% 38,141 3.7% Police Department 22,746,448 15,292,231 11,653,368 12,414,647 13,706,302 (1,585,930) 60.3% 1,291,654 10.4% Fire Department 14,790,120 11,244,295 9,000,611 9,625,066 11,467,774 223,479 77.5% 1,842,708 19.1% PW Dept / Street Maint 7,574,988 5,538,258 4,548,810 4,900,921 4,974,344 (563,913) 65.7% 73,423 1.5% Subtotal 69,067,388 48,153,691 37,777,072 40,892,297 45,895,523 (2,258,168) 66.5% 5,003,227 12.2% Non Departmental 6,688,881 3,282,566 2,732,130 2,683,765 3,032,704 (249,862) 45.3% 348,939 13.0% Total Expenditures 75,756,269 51,436,257 40,509,202 43,576,061 48,928,227 (2,508,030) 64.6% 5,352,165 12.3% %of Year 66.7% Overall General Fund departmental costs increased by 12.3% over the same period last year. The majority of increases in expenditures were identified ahead of time and budgeted for. The graph below shows the Actual Expenditures, and Allocated Budget amounts for the General Fund departments. 2 30 INFORMATIONAL MEMO Page 3 The graph below displays Year to Date Department Expenditures Compared to Allocated Budget as of August 31, 2023. 001 I City Council 0031 Mayor's Office 004 I Administrative Services 0051 Finance Department 007 !Recreation Department 008 I Community Development (DCD) 009 [Municipal Court 0101 Police Department 011 'Fire Department 013 I Public Works Dept 015 I Park Maintenance Dept 016 'Street Maintenance Dept 020 1 Non Departmental 0991 Gen Fd General Revenues Measures •Actuals • Allocated ■ • $0 $2,000 $4,000 $6,000 $8,000 Thousands $10,000 812 000 $14,000 $16,000 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. Expended The end of August represents the completion of 67% of the year. Services is the only category that exceeds 67%. Professional Services finished the month at 73.9%. Additionally, Professional Services reported 2023 spending significantly higher than 2022. The overage is directly related to Fire's contract agreement with the RFA that went into effect this year. Communications is reported higher this month. The increase is relatively modest, finishing the month at 69.2% at 67% of the year. The largest portion of the expenditures are traced to an increase in Micorfilm/Imaging over the prior year. Technology Services also came in slightly higher, at 68%. A significant portion of the increase is the PD software & maintenance agreement with the 3 31 INFORMATIONAL MEMO Page 4 vendor Spillman. Utilities finished August at 82% at 67% of the year. However, Utilities are currently under allocated budget and behind prior year spending YTD. Repairs & Maintenance Sys. is the final account that finished the month higher than % Expended. This account is 0.7% above % Expended and $618,647 (41.6%) below the same period last year. These expenditures are within the normal course of business. $ Change 2022/2023 There are several accounts that are reporting increases over the prior year of 5% and 50k. Supplies are higher than the prior year but under both the allocated budget and % Expended. Technology Supplies is reporting the purchase of computers related to the Private LTE Infrastructure grant. Professional Services has been continuously reported as the Fire RFA agreement. Professional Development is higher as a result of the return to in -person training and seminars. Rentals are up over the prior year, but below allocated budget as well as % Expended YTD. Technology Services has previously been explained as is the PD software & maintenance agreement with the vendor Spillman. Machinery & Equipment is the final account that finished the month higher than the prior year. The increase has been identified as infrastructure expenditures associated with the Private LTE Infrastructure grant secured by TIS. 4 32 INFORMATIONAL MEMO Page 5 General Fund City of Tukwila General Fund Expenditures Year -to -Date as of Aug 31, 2023 BUDGET ACTUAL COMPARISON OF RESULTS 2023 Annual 2023 Allocated 2021 2022 2023 Actual Budget vs Allocated OVER/(UNDER) % Expended Change $ 2022/2023 2022/2023 Salaries 25,787,016 17,191,34418,541,097 19,834,605 15,295,177 (1,896,167) 59.3% (4,539,428) (22.9%) Extra Labor 769,106 598,966 109,036 314,988 430,111 (168,855) 55.9% 115,123 36.5% Overtime 755,184 491,221 1,478,149 1,717,114 982,356 491,135 130.1% (734,758) (42.8%) Holiday Pay 250,000 104,300 78,815 84,116 71,993 (32,306) 28.8% (12,123) (14.4%) FICA 2,110,086 1,406,724 1,177,800 1,288,132 1,265,699 (141,026) 60.0% (22,433) (1.7%) Pension-LEOFF 635,410 448,273 649,939 690,043 433,032 (15,241) 68.1% (257,011) (37.2%) Pension-PERS/PSERS 1,744,919 1,163,279 1,056,362 968,765 982,752 (180,528) 56.3% 13,987 1.4% Industrial Insurance 586,183 390,789 612,975 495,983 277,704 (113,085) 47.4% (218,279) (44.0%) Medical & Dental 5,748,432 3,832,288 4,483,393 4,883,745 3,574,402 (257,886) 62.2% (1,309,343) (26.8%) Unemployment 0 0 20,710 31,615 2,076 2,076 - (29,539) (93.4%) Uniform/Clothing 33,290 24,527 2,124 1,511 1,314 (23,213) 3.9% (198) (13.1%) Total Salaries & Benefits 38,419,627 25,651,711 28,210,402 30,310,618 23,316,615 (2,335,096) 60.7% (6,994,003) (23.1%) Supplies 678,334 444,699 350,017 181,581 290,402 (154,297) 42.8% $108,821 59.9% Repairs & Maint Supplies 450,010 297,577 140,246 215,214 247,174 (50,402) 54.9% $31,960 14.9% Resale Supplies 2,500 1,500 0 128 0 (1,500) - ($128) - Small Tools 213,203 142,636 35,933 42,712 52,161 (90,475) 24.5% $9,448 22.1% Technology Supplies 110,798 73,865 32,220 20,174 268,090 194,225 242.0% $247,915 1,228.9% Fleet Supplies 7,000 4,667 2,289 3,932 4,414 (253) 63.1% $482 12.3% Total Supplies 1,461,845 964,943 560,705 463,742 862,241 (102,702) 59.0% $398,499 85.9% Professional Services 21,798,537 16,401,804 4,588,387 4,784,461 16,102,785 (299,019) 73.9% $11,318,324 236.6% Communications 440,528 285,330 288,902 276,452 304,951 19,621 69.2% $28,499 10.3% Professional Dev 570,359 361,646 268,831 225,768 293,721 (67,925) 51.5% $67,953 30.1% Advertising 66,300 45,033 4,834 9,723 24,282 (20,751) 36.6% $14,559 149.7% Rentals 1,298,059 705,572 338,887 244,556 640,706 (64,867) 49.4% $396,149 162.0% Technology Services 1,031,264 724,262 312,402 476,018 704,773 (19,488) 68.3% $228,756 48.1% Utilities 2,244,354 1,888,513 1,751,795 1,870,251 1,839,884 (48,629) 82.0% ($30,368) (1.6%) Repairs & Maint Svs. 1,286,418 857,776 1,313,477 1,485,891 867,244 9,468 67.4% ($618,647) (41.6%) Miscellaneous 1,012,899 683,503 62,267 455,672 308,238 (375,265) 30.4% ($147,434) (32.4%) Total Services 29,748,719 21,953,439 8,929,782 9,828,793 21,086,584 (866,855) 70.9% 11,257,792 114.5% Capital Outlay -Land 0 0 0 0 0 0 - 0 - Other Improvements 0 0 0 0 0 0 - 0 - Machinery & Equipment 420,000 75,000 76,184 289,145 1,082,062 1,007,062 257.6% 792,917 274.2% Construction Projects 0 0 0 0 39,423 Total Capital Outlay 420,000 75,000 76,184 289,145 1,121,485 1,007,062 267.0% 832,340 287.9% Transfers Out 5,706,078 2,791,164 2,732,130 2,683,765 2,541,302 (3,164,776) 44.5% (142,463) (5.3%) Total Non Operating Expense 5,706,078 2,791,164 2,732,130 2,683,765 2,541,302 (3,164,776) 44.5% (142,463) (5.3%) Total Expenditures 75,756,269 51,436,257 40,509,202 43,576,061 48,928,227 (5,462,367) 64.6% 5,352,165 12.3% % of Year 66.7% 5 33 34