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HomeMy WebLinkAboutFS 2009-10-20 COMPLETE AGENDA PACKET1. PRESENTATION(S) 2. BUSINESS AGENDA a. b. c. d. e. City of Tukwila Finance and Safety Committee O Pam Linder, Chair O Joe Duffie O De`Sean Quinn Item AGENDA TUESDAY, OCTOBER 20, 2009 CONFERENCE ROOM #3; 5:00 PM A resolution regarding the Non represented Employee Wage Schedule; Viki Jessop, Administrative Services Director. M.J. Durkan lobbying services contract; Rhonda Berry, City Administrator. Authorization for Transfer of Funds for additional budget reductions for 2009; Shawn Hunstock, Finance Director. Budget Process and Deadlines; Shawn Hunstock, Finance Director. Sales Tax Report; Shawn Hunstock, Finance Director. 3. ANNOUNCEMENTS 4. MISCELLANEOUS Distribution: P. Linder J. Duffle D. Quinn J. Hernandez D. Robertson Mayor Haggerton R. Berry C. O' Flaherty(punched) B. Fletcher B. Giberson D. Haynes 1 Action to be Taken a. Forward to 10/26 C.O.W. and 11/2 Regular. b. Forward to 10/26 C.O.W. and 11/2 Regular. c. Forward to 10/26 C.O.W. and 11/2 Regular. d. Forward to 10/26 C.O.W. and 11/5 Special Workshop. e. Information only. Next Scheduled Meeting: Tuesday, November 3, 2009 Committee Goals: Work together in cooperation with nearby cities to address common problems in the Highway 99 corridor and Military Road. Ensure a commitment to continued human services funding in relation to the cost of living through consistent review of regional, state and federal budgets affecting human services progams and services (also assigned to CAP). Research the viability of sponsoring a City -wide Citizens' Academy (also assigned to CAP). S The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 433 -1800 for assistance. S. Hunstock D. Speck M. Hart R. Still V. Jessop D. Tomaso S. Kerslake M. Villa K. Kertzman Judge Walden T. Kinlow B. Arthur K. Matej C. Parrish M. Miotke J. Eide G. Labanara K. Narog(cover) D. Lincoln S. Kirby(emaii) N. Olivas S. Norris(emaii) J. Pace I Page Pg.1 Pg.13 Pg.21 Pg.25 Pg.29 TO: ISSUE BACKGROUND City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Viki Jessop, Administrative Services Director DATE: October 14, 2009 SUBJECT: 2010 Non Represented Wages Jim Haggerton, Mayor 2010 Non Represented Wage Schedule analysis based on external comparables and internal equity. In alignment with Resolution No. 1537, Establishing a Non Represented (NR) Employees' Compensation Plan, passed December 1, 2005, a wage study has been conducted for calendar year 2010. The resolution requires that a market analysis be done every other year for the upcoming year for Non Represented positions. The current analysis has been conducted based on information in the Association of Washington Cities 2009 Salary and Benefit Study, rather than going out to individual cities this year. It was decided that the data in the AWC survey would be utilized in part due to the economic and staffing constraints facing comparable cities as a result of furloughs, layoffs, and other budget changes affecting staff. As in the past, a comparison was done of external comparables (cities) and internal equity (union pay scales). The Decision Band Methodology (DBM) and regression line analysis have been completed in determining the "best line of match" and a wage schedule developed based on the market trend calculation outcome. The following comparable cities were used for this study: Comparables Auburn Bothell Federal Way Kent Kirkland Redmond Renton SeaTac The average increase for all top steps of DBM ratings on the Non Represented wage schedule equals 4.14 A complete 2010 wage schedule was calculated using the information developed through the linear regression analysis and the percentage increase provided over the 2009 wage schedule in order to place new and current employees onto the proper step on the new wage schedule. Individual DBM rating top step increases vary according to how the trend line analysis compares to the market for the specific position. Current Non Represented wage increases that relate to INFORMATIONAL MEMO Page 2 established DBM ratings with corresponding classifications range from 1.5% to 6.7 Once again, the overall average for the entire wage schedule is 4.14 The Non Represented top step wage information was then compared to the unions' top step wages for 2010, which shows the union wage increases for 2010 ranging from 3.25% to 4 The market trend analysis and its various percentage increase related to specific Bands on the wage schedule and confirmed internal equity between all positions, union and non represented, in the City of Tukwila for 2010. DISCUSSION After the City of Tukwila Non Represented wages were approved in 2007 for 2008, it was noted that many of Tukwila's comparable cities were adjusting the wages for their non represented management level employees to a greater degree than had occurred in previous years. One of the primary reasons behind these increases was the difficulty the cities were having in recruiting and retaining qualified management level employees. The economy was still fairly healthy and the need for strong leadership at the management level was desired. Another reason for the non represented wages increasing in other cities was the "fear" many cities had that they would be unable to recruit qualified police officers, much less retain them. Many cities were increasing the police officer wages in an effort to attract more viable candidates to their cities. By taking this action, they needed to raise the wages for other police officer positions, not just entry level, which then resulted in management level wages needing to be raised to avoid wage compression problems. These and other actions by cities resulted in the City of Tukwila Non Represented employees falling behind the comparable market almost immediately in 2008. These wage increases in other cities are reflected in the market results for the comparable cities in Tukwila's 2009 study. Fairly soon after the wage increases were made in other cities, the economy took a major hit and with it a shift in how wages and benefits were considered by the cities. It has necessitated that some of the same cities that raised wages have requested reductions in wages and /or benefits from their Non Represented employees and, in some instances, have negotiated similar changes with their unions. (Without their unions being willing to make reductions, the overall wage structure would be skewed by just reducing the wages of the Non Represented employees.) One of the results would be union positions making more than Non Represented management employees; even without consideration of premium pays and /or overtime. This type of situation can create a wide variety of problems. The City of Tukwila has been fortunate that there have not been wage freezes or other changes in wages or benefits thus far in 2009. In order to maintain external comparability and internal equity, it is important to keep the Non Represented wages consistently moving in alignment with the market and union wages. Based on the current analysis for the Non Represented, a waae increase for 2010 would cost INFORMATIONAL MEMO Page 3 approximately $15,700 Der month (about $188,400 in 2010), exclusive of payroll taxes, retirement, etc. The $188,400 is approximately $10,600 more than what was budgeted for 2010. RECOMMENDATIONS The following Non Represented employee wage increase scenarios for 2010 are presented to the Mayor and Council for consideration: 1. Approve the 2010 Non Represented market trend analysis wage schedule (see attached draft resolution), which provides for external comparability and internal equity effective January 1, 2010. The estimated cost to implement wages only is $188,400 in 2010. An additional cost over budget of $10.600. 2. Phase in one -half of the increases based on the 2010 wage schedule on January 1, 2010, and the remaining one -half of the increases on July 1, 2010, for all Non Represented positions as developed through the market trend analysis. By phasing in the wage increases, the Non Represented wage schedule is in alignment with the union wage schedules in mid -year. This method provides savings to the 2010 budget by spreading out the time in which wage increases are made in 2010 for the Non Represented employees. The estimated cost to phase in wage increases with one -half on January 1, 2010 and the second half on July 1, 2010, is $141,100. The estimated savings over implementing 100% of the market increase on January 1, 2010 is $47.300. 3. Do not give an increase in 2010 to DBM ratings D62 -D72, E, and F (management and supervisory levels), unless the City's economic condition begins to stabilize during the year. Often called a "COLA Holiday it would be important to seriously consider giving the total wage increase to D62 -D72, E, and F levels sometime later in 2010 or at the beginning of 2011. Waiting until 2011 may require the 2010 wage increases be given and /or additional COLA to keep up with internal equity compared with union wages for 2010 and 2011. Provide full wage increases to those at the A, B, C, and D -61 levels (generally technical and staff support levels) on January 1, 2010, in order to maintain internal equity for these positions, which have more internal similarity with the union positions. The estimated cost to implement wages for A, 8, C and D -61 levels on January 1, 2010 is $61.400. The estimated 2010 budget savings to implement this option, rather than implementing the wage increase for all Non Represented employees on January 1. 2010. is approximately $127.000. INFORMATIONAL MEMO Page 4 4. Do not give any wage increases to any of the Non Represented in 2010, and give the full wage increase, COLA, and /or possible catch up in 2011. The estimated savings of this choice in 2010 is approximately, $188,400; however, the choice would create a "catch up" situation in 2011. Finance has provided the attached tables for each of the above scenarios. These tables include the TOTAL COST for the increases in wages AND benefits for 2010 (without consideration for an increase sometime during 2010 for the D62 -D72, E, and F levels under scenario #3). MAYOR'S RECOMMENDATION Mayor Haggerton has reviewed the wage scenarios shown above, and there has been discussion of other possible combinations and options for managing the Non Represented wage increases for 2010. Though it is his preference for all Non Represented staff to receive the full wage increase based on external comparables and internal equity, he recognizes the current budget concerns and broad economic conditions create a need to look at reducing and /or cutting wages and benefits. Options #3: Mayor Haggerton recommends the Tukwila City Council select Option #3 above, which provides the full 2010 wage increase positions at DBM levels A, B, C, and D61 and take a "COLA Holiday" on 2010 wage increase for DBM levels D62 -D72, E, and F. The Council is being asked to consider this issue at the October 26, 2009 Committee of the Whole meeting and subsequent November 2, 2009 Regular meeting. ATTACHMENTS Wage and Benefit estimate tables for all scenarios Draft Resolution with attachments: Attachment A 2010 Wage Schedule Attachment B 2010 Benefits Attachment C 2010 Longevity Pay Plan Non -Rep Salary Increase Options 10/15/200 Budgeted Salary Increase Cost of Wage Increase Cost (Over) I Under Budget Option 1 Ali Non -Reps, effective 1/1/2010 Option 2 50% Wage Incr 1/1/2010, 50 %7/1/2010 11 /2010 Option 3 Wage lncr Level A, B, Option 4 No Wage Increase Same as above, but with benefits at the following rate: Budgeted Salary Increase Cost of Wage Increase Cost (Over) Under Budget Option 1 All Non -Reps, effective 1/1/2010 Option 2 50% Wage Incr 1/1/2010, 0 %6/1 20 f 1 Option 3 -Wage Incr Level A, B, C Option 4 No Wage Increase Option 1 All Non -Reps Effective 1/1/2010 178,000 (188,40 (10,400) Budget 178,000 178,000 178,000 178,000 Option 1 All Non -Reps Effective 1/1/2010 195,800 (207,240) (11,440) Budget 195,800 195,800 195,800 195,800 Option 2 50% Wage Incr 1/1/201 Another 50% on 7/178 000 (141,100) 36,900 Cost of Wages (188,40 (141,100) (61,400) Option 2 50% Wage Incr 1/1/201 Another 50% on 7/1/2010 00 {155,210), 40,590 Cost of Wages (207,240) (155,210) (67,540) Option 3 Wage Incr Level A, B, C, D61 Effective 1/1/2010 8 000 (61,400) 116,600 Cost (Over) Under (1d g00) 36,900 116,600 178,000 Option 3 Wage Incr Level A, B, C, D61 Effective 1/1/2010 195,800 (67,540), 128,260 Cost (Over) Under (1 d 440) 40,590 128,260 195,800 Option 4 No Wage Increase 178,000 178,000. Option 4 No Wage Increase 195,800 195,800 W: \Word Processing Resolutions Non-rep Salary 2009 doc KG:ksn 10/15/2009 AF sr�6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, UPDATING AND CLARIFYING THE NON REPRESENTED EMPLOYEES' COMPENSATION AND ADOPTING THE NON REPRESENTED SALARY SCHEDULE AND BENEFITS SUMMARY, EFFECTIVE JANUARY 1, 2010. WHEREAS, the Tukwila City Council has conducted a review of the non represented employees' compensation system that was originally implemented in January 1998; and WHEREAS, the City Council recognizes that current economic conditions and forecasts are a consideration in actions that deal with the compensation of employees; and WHEREAS, the City Council has made a determination to review the non represented compensation for even numbered years and provide COLAs in odd numbered years; and WHEREAS, a compensation study has been conducted and the recommended non- represented wage schedule and benefit information has been prepared for implementation on January 1, 2010; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. The following statements have been used for the purpose of adopting the non- represented employees' wages for 2010 and consideration for future years. A. The following basic plan elements remain the same: 1. Decision Band Methodology (DBM) for creating classifications. 2. Market analysis using comparable jurisdictions' top -step wages. 3. Data was gathered through use of the Association of Washington Cities (AWC) Salary and Benefits Survey" to reduce the impact of contacting cities who have reduced wages and /or benefits recently in a variety of ways, which do not reflect their actual wage and benefit schedules and systems. 4. Regression line analysis to establish the Control Point for each DBM rating with a range of 12.5% and 30% used to establish the steps (Regression Line Analysis provided by Fox Lawson Associates, LLC, based on Personnel Department acquired market data). 5. Steps below the Control Point (Wage Schedule Top Step) are automatic as individuals move through the system. 6. Ranges for all bands All -F102, of the Decision Band Methodology, have been established based on the outcome of the regression analysis (line of best fit) in creating the 2010 wage schedule. 7. Ranges All -D61 wages for 2010 are based on the outcome of the trend line analysis. Wage increases for these Decision Bands shall be as shown on the attached Salary Schedule, "Attachment A," pages 1 and 2. 8. Ranges D62 -F102 wages for 2010 will be on a "Cost -of- Living Holiday," (COLA Holiday) meaning there will be no wage increases on January 1, 2010 for positions in these Decision Bands. Any consideration for wage increases during 2010 for positions in these Decision Bands will be based on the ability of the City of Tukwila to pay such increases through improved budget and economic factors. The Finance Department, working in conjunction with the Human Resources Department will, from time-to-time, review the ability of the City of Tukwila to provide wage increases to employees at these Decision Band levels during 2010. Page 1 of 6 9. A "market adjustment" is normally applied to a position when the wage survey results establish a new control point, which is 10% or more below the market; and internal compression exists within the career ladder, or where there is difficulty in recruiting and /or retaining qualified employees. Due to the current budget and economic downturn, no "market adjustments" will be considered for 2010. In order to assure that the integrity of the Decision Band Method (DBM) is maintained, while recognizing a wage gap based on market conditions for a specific position, the "market adjustments" may be made in future years. When implemented, the "market adjustment" shall be calculated by taking the difference between the newly established control point and the market average wage for the position, and applying it on top of the established salary range for the positions. This market adjustment shall be reviewed every two years from the time it is implemented (if implemented) as part of the salary study and may be eliminated or changed based on the results of the survey. B. The non represented salary schedule for 2010 provides an average market trend increase of 4.14 as a whole, at the top step (control point). Individual DBM increases may vary on the wage schedule based on where they fit in the overall regression analysis that develops the market trend line. This analysis brings the wage schedule in alignment with external comparables and internal equity. C. The City shall continue to conduct in -house market analysis of the non represented compensation system during odd numbered years, using outside assistance on regression line analysis calculations, as needed. The results of the analysis will be considered for implementation on January 1 of the following even numbered year. D. A COLA increase shall be considered for application each January 1 during odd numbered years, based on the Seattle- Tacoma Bremerton Consumer Price Index (CPI -W) Average (first half of 2010 to first half of 2011). E. The Decision Band method of job evaluation will be used to establish classifications and the relative internal value and relationship of non represented jobs within the City of Tukwila. F. Merit will continue to be eliminated from the plan at this time and may be reconsidered as a plan element in subsequent years. G. Step increases from the minimum to the control point for all positions shall be given annually on the employee's performance review date. There will be no step increases for employees at or above the control point. Section 2. Non represented salary schedule and benefits summary. A. The non represented salary schedule, "Attachment A," hereto, shall be approved, effective January 1, 2010. B. The non represented benefits summary, "Attachment B," hereto, shall be approved, effective January 1, 2010. C. The non represented longevity pay plan, "Attachment C," hereto, shall be approved, effective January 1, 2010. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Attachments: Attachment A, Non Represented Salary Schedule 2010 Attachment B, Non Represented Benefits Summary 2010 Attachment C, Non Represented Longevity Pay Plan 2010 W: \Word Processing \Resolutions Won-rep Salary 2009.doc KG:ksn 10/15/2009 Joan Hernandez, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 2 of 6 Classification Title Administrative Support Technician Office Technician Office Specialist Administrative Assistant Program Coordinator Management Coordinator Management Analyst Program Administrator Program Manager Administrative Manager Assistant Director Department Manager Department Administrator Department Head Department Director City Administrator Attachment A, Page 1 City of Tukwila Non Represented Salary Schedule 2010 W: \Word Processing \Resolutions \Non -rep Salary 2009 doc KGksn 10/15/2009 Job Title Administrative Support Technician Personnel Technician Administrative Secretary Civil Service Secretary/ Examiner Deputy City Clerk Executive Secretary Administrative Secretary I Council Administrative Assistant Systems Administrator Personnel Assistant City Clerk Court Administrator Police Records Manager Legislative Analyst Personnel Analyst Public Works Analyst Internal Operations Manager Public Works Coordinator Emergency Management Coordinator Assistant City Administrator Senior Engineer Building Official IT Manager Maintenance Operations Manager Police Comrnander Administrative Services Director DCD Director Finance Director IT Director Parks Recreation Director Fire Chief Police Chief Public Works Director City Administrator Range Al2 B21 B22 B23 C41 C42 C43 D61 D62 Deputy Community Development Director D63 Deputy Finance Director Deputy Public Works Director Deputy Parks Recreation Director Assistant Fire Chief D72 Assistant Police Chief City Engineer Economic Development Administrator E81 E83 E91 F102 Page 3 of 6 The salary grid average is 4.14% at the top step. Individual DBM ratings differ based on market trend analysis. Attachment A, Page 2 2010 Non Represented Salary Structure (Monthly) DBM (Minimum) Rating Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 All 3,535 3,646 3,757 3,867 3,977 Al2 3,815 3,937 4,058 4,177 4,296 A13 4,105 4,231 4,360 4,488 4,615 B21 4,287 4,448 4,611 4,770 4,935 B22 4,566 4,737 4,909 5,081 5,254 B23 4,842 5,024 5,206 5,388 5,573 B31 5,082 5,305 5,527 5,749 5,972 B32 5,487 5,728 5,969 6,210 6,451 C41 5,708 5,935 6,163 6,393 6,622 6,850 C42 5,970 6,211 6,449 6,688 6,928 7,169 C43 6,236 6,486 6,737 6,986 7,235 7,488 C51 6,439 6,727 7,017 7,307 7,595 7,888 C52 6,882 7,192 7,502 7,812 8,123 8,367 D61 7,013 7,364 7,715 8,067 8,418 8,766 D62 7,271 7,633 7,997 8,359 8,723 9,085 D63 7,526 7,902 8,279 8,655 9,032 9,404 D71 7,691 8,112 8,534 8,956 9,376 9,803 D72 8,072 8,512 8,954 9,394 9,837 10,282 E81 8,157 8,564 8,973 9,379 9,817 10,257 10,681 E82 8,456 8,881 9,304 9,728 10,153 10,577 11,000 E83 8,705 9,142 9,576 10,013 10,446 10,882 11,319 E91 9,008 9,459 9,910 10,362 10,812 11,264 11,719 E92 9,380 9,851 10,322 10,790 11,261 11,731 12,198 F101 9,748 10,234 10,722 11,211 11,700 12,186 12,677 F102 10,114 10,620 11,127 11,635 12,140 12,646 13,155 W \Word Processing \Resolutions \Non -rep Salary 2009.doc KG:ksn 10/15/2009 Page 4 of 6 Social Security (FICA): Social Security benefits shall be provided as contained in Section 2.52.010 of the Tukwila Municipal Code (TMC). State Wide Employee Retirement System (PERS): Retirement shall be provided as contained in Section 2.52.020 of the TMC. Holidays: Holidays shall be provided as contained in Section 2.52.030 of the TMC. Regular part time employees shall be entitled to benefits on a pro -rata basis. Sick Leave: Sick leave shall be provided as contained in Section 2.52.040 of the TMC. Regular part -time employees shall be entitled to benefits on a pro -rata basis. Medical Insurance: The City shall pay 100% of the 2010 premium for regular full -time employees and their dependents under the City of Tukwila self insured medical /dental plan. Premium increases above 10% per year shall result in a modified plan document to cover the additional cost above 10 or a premium shall be implemented for the difference, at the City's discretion. The City reserves the right to select all medical plans and providers. Regular part time employees shall be entitled to benefits on a pro -rata basis. Employees who choose coverage under the Group Health Cooperative plan shall pay the difference between the City of Tukwila plan full family rate and the rate charged to them by Group Health. Dental Insurance: The City shall provide 100% of the 2010 premium for the regular full -time employees and all dependents under the City of Tukwila self insured medical /dental plan for dental coverage. Regular part -time employees shall be entitled to the same benefits on a pro rata basis. Life Insurance: For regular full -time employees, the City shall pay the premium for Plan C (Multiple of annual earnings) or similar group life and accidental death and dismemberment insurance policy. Said plan shall be at 100% of annual earnings rounded up to the next $1,000. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Vision/Optical/Hearing Care: The City shall provide coverage for eye examinations, vision, optical and hearing care to non represented regular full -time employees and their dependents at the rate of $200 per person, to a maximum of $400 per family unit each year. Regular part time employees and their dependents shall be entitled to benefits on a pro -rata basis. Disability Insurance: The City shall provide 100% of the premium for regular full -time employees for a comprehensive long -term disability policy. Regular part -time employees that work at least 20 hours per week shall be entitled to benefits on a pro -rata basis (per insurance program requirements). Health Reimbursement Arrangement/Voluntary Employee Benefit Association (HRA/VEBA): VEBA benefits shall be provided as contained in Resolution No. 1445 and as amended. Vacation: Following the sixth month of continuous employment, annual vacation leave of six full days (each day is calculated at eight hours, regardless of schedule worked) shall be granted. Thereafter, an additional day of annual leave shall accrue each month, up to a total of 12 days. Three additional days of annual leave shall be granted on the employee's anniversary date after the third, fourth and fifth years. After six years, the employee shall be granted one day per year additional annual leave to a maximum of 24 days per year. The maximum number of accrued hours is 384 or 48 days. Years of Service 0 -1 years 1 -2 years 3 -6 years 7 years 8 years 9 years W: \Word Processing\Resolutions \Non -rep Salary 2009 doe KG:ksn 10/15/2009 Attachment B Non Represented Employee Benefits 2010 I Vacation Accrual 12 days* 12 days 15 days 16 days 17 days 18 days Years of Service 10 years 11 years 12 years 13 years 14 years 15 years Vacation Accrual 19 days 20 days 21 days 22 days 23 days 24 days (maximum) *Six full days will be granted following the sixth month of continuous employment. (Days accrue at eight hours, regardless of schedule worked.) Regular part -time employees shall be entitled to benefits on a pro -rata basis. Uniform Allowance: An annual uniform allowance of $350 shall be granted to the following employees: Fire Chief, Assistant Fire Chief, Police Chief, Assistant Police Chief, Police Commander and Records Manager. Page 5 of 6 Attachment C Longevity Pay Plan for Non Represented Employees 2010 The monthly longevity flat rates shall be as follows for regular full -time employees after the completion of the number of years of full time employment with the City set forth below. Regular part -time employees shall receive longevity on a pro -rata basis. W: \Word Processing Resolutions \Non -rep Salary 2009.doc KG:ksn 10/15/2009 Completion of 5 years Completion of 10 years Completion of 15 years Completion of 20 years Completion of 25 years Completion of 30 years $75 100 125 150 175 200 Page 6 of 6 TO: FINANCE SAFETY COMMITTEE FROM: Mayor's Office DATE: October 8, 2009 SUBJECT: 2010 Contract with M.J. Durkan, Inc. ISSUE City of Tukwila Professional services contract with M.J. Durkan, Inc. for lobbying services will expire on December 31, 2009. DISCUSSION The City wishes to retain the services of M.J. Durkan to perform lobbying services for the year 2010. There has been no increase in the monthly fees from last year, which were $4,000 per month, plus expenses. This amount was approved in the 2009 -2010 biennial budget. RECOMMENDATION The Council is being asked to authorize the Mayor to approve a contract with M.J. Durkan, Inc, for the period 1/1/2010 through 12/31/2010 in the amount of $4,000 per month, plus expenses that shall not exceed $500 per month without prior authorization of the City. Consideration of this item is being requested at the October 26, 2009 Committee of the Whole meeting and subsequent November 2, 2009 Regular Meeting. ATTACHMENTS Proposed 2010 Contract INFORMATIONAL MEMORANDUM Jim Haggerton, Mayor Contract For Services 2010 MJ Durkan, Inc. This agreement is entered into by and between the City of Tukwila, Washington, a non charter optional municipal code city hereinafter referred to as "the City and, MJ Durkan, Inc., hereinafter referred to as "the Contractor" whose principal office is located at #357, 330 Southwest 43 Street Plaza Suite K, Renton, Washington 98057 -4944. Whereas, the City has determined the need to have certain services performed for its citizens but does not have the staff resources or expertise to perform such services, and Whereas, the City desires to have the Contractor perform such services pursuant to certain terms and conditions, now, therefore, In Consideration of the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B (Fees) attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed four thousand dollars ($4,000) per month plus expenses. Expenses shall be detailed on each monthly billing and shall not exceed five hundred dollars ($500) per month without prior approval of the City. Contractor Budaet. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. Duration of Aareement. This Agreement shall be in full force and effect for a period commencing January 1, 2010 and ending December 31, 20junless sooner terminated under the provisions hereinafter specified. Independent Contractor. The Contractor and the City agree that the Contractor is an independent contractor with respect to the services provided pursuant to r Deleted: 09 Deleted: 09 r Deleted: 09 Contract for Services MJ Durkan January 2009 Page 2 this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither the Contractor nor any employee of the Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. Conflict of Interest. Without the express written consent of the Mayor, the Contractor shall not represent another client if the representation of such client will conflict with the Contractor's representation of the City. If the Mayor believes the Contractor's representation of another client conflicts with the Contractor's representation of the City, the Mayor shall notify the Contractor in writing of such conflict. Within 2 days of the receipt of such notification, the Contractor shall withdraw from the representation of such client or explain to the Mayor in writing why, in the view of the Contractor, a conflict does not exist. If the Mayor then believes a conflict is still present, the Contractor must immediately cease representing the client or the Mayor may immediately terminate this contract. Indemnification. The Contractor shall indemnify, defend and hold harmless the City, its officers, agents and employees, from and against any and all claims, losses, or liability, including attorney's fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of the Contractor, its officers, agents and employees, in performing the work required by this Agreement. With respect to the performance of this Agreement and as to claims against the City, its officers, agents and employees, the Contractor expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee of the Contractor. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damage resulting from the sole negligence of the City, its agents and employees. To the extent any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of the City, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of the Contractor, its officers, agents, and employees. Insurance. The Contractor shall procure and maintain in full force throughout the duration of the Agreement comprehensive general liability insurance with a minimum coverage of $500,000.00 per occurrence /aggregate for personal injury Contract for Services MJ Durkan January 2009 Page 3 and property damage. Said policy shall name the City of Tukwila as an additional named insured and shall include a provision prohibiting cancellation or reduction in the amount of said policy except upon thirty (30) days prior written notice to the City. Cancellation of the required insurance shall automatically result in termination of this Agreement. Certificates of coverage shall be delivered to the City within fifteen (15) days of execution of this Agreement. Record Keeping and Reporting. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records that sufficiently and properly reflect all direct and indirect costs of any nature expended and services in the performance of this Agreement. The City shall maintain these records for a period of seven years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject to inspection, review or audit by law during the performance of this Agreement. Termination. The City giving to the Contractor thirty days written notice of the City's intention to terminate the same may at any time terminate this Agreement. Failure to provide products on schedule may result in contract termination. if the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement. Discrimination Prohibited. The Contractor shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Contractor to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. Assianment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. Entire Aareement. This Agreement contains the entire agreement between the parties hereto and no other Agreements, oral or otherwise, regarding the subject matter of this Agreement, shall be deemed to exist or bind nay of the parties hereto. Either party may request changes in the agreement. Proposed changes, which are mutually agreed upon, shall be incorporated by written amendments to this Agreement. Notices. Notices to the City of Tukwila shall be sent to the following address: Contract for Services MJ Durkan January 2009 Page 4 City Clerk City of Tukwila 6200 Southcenter Blvd Tukwila, WA 98188 Notices to the Contractor shall be sent to the following address: MJ Durkan, Inc. #357 330 SW 43 St., Suite K Renton, WA 98057 -4944 Applicable Law: Venue: Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that the venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of CONTRACTOR: CITY OF TUKWILA BY: TITLE ATTEST /AUTHENTICATED: Mayor, Jim Haggerton CITY CLERK, Christy O'Flaherty APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY BY: Contract for Services MJ Durkan January 2009 Page 5 Exhibit A Scope of Services The Consultant shall, at the direction of the Tukwila Mayor's Office: 1) work with Tukwila officials, King County elected officials, and State elected officials to facilitate the Tukwila Valley South annexation and development. 2) Work with local, regional and state officials on general matters of interest to the City of Tukwila. 3) Notify the Tukwila Mayor's Office of emerging issues of importance to the City. 4) Present an activity /project status report at least once annually to the City Council at a regularly scheduled meeting. It is understood that the above -cited tasks are representative of the requirements associated with achieving the City's objectives and are not necessarily an all inclusive description of the Consultant's efforts. Contract for Services MJ Durkan January 2009 Page 6 Exhibit B Terms of Payment The consultant will invoice the City for the work completed at the rate of $4,000 per month at the close of each month. Invoices will be paid within twenty (20) days of receipt. Any extraordinary expenses claimed shall first be approved by the City of Tukwila before the consultant obligates any funds. Expenses shall be detailed on each monthly billing and shall not exceed five hundred dollars ($500) per month without prior approval of the City. Deleted: 11 TO: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: October 1, 2009 SUBJECT: Additional Departmental Budget Reductions Jim Haggerton, Mayor The City is in need of reducing expenditures or increasing revenues in an attempt to address our current revenue shortfalls, particularly in the area of sales tax receipts. Sales tax receipts through August 31 are 16% less than budget, equating to an annual $2.4 million revenue shortfall. Additionally, several other revenue streams have not met budget. The economy continues to suffer even though the recession has been declared over. Continued depressed retail sales combined with other economic factors will prolong the negative impact on City revenues. In addition, the cost to the City for Green River Valley flood prevention and preparation efforts stemming from the Howard Hanson dam weakness is expected to range from $2 million to $5 million in 2010. As the attached spreadsheet indicates, the additional budget reduction totals $392,416 and comes from selected departments based on identified cost saving opportunities. The amount removed from department budgets will be allocated to ending fund balance in Department 20. The attached Authorization for Transfer of Funds form implements this additional departmental budget reduction. As with the previous budget reduction, the recommendation is to implement the reduction at the department level, rather than the specific line item level. This means Directors will have the flexibility to implement the reduction as they see fit based on the needs of their department and the services they provide. INFORMATIONAL MEMO Page 2 RECOMMENDATION The Council is being asked to approve the attached Authorization for Transfer of Funds. This item is scheduled to be discussed at the October 6, 2009 Finance and Safety Committee meeting, the October 12, 2009 Committee of the Whole meeting and the subsequent October 19, 2009 Regular Meeting. ATTACHMENTS Authorization for Transfer of Funds 2009 Budget Reduction spreadsheet C: \temp\XPGrpWise \InfoMemo Addl Budget Reductions.doc City of Tukwila AUTHORIZATION FOR TRANSFER OF FUNDS Department: FINANCE Date: October 6, 2009 Under the provisions of Ordinance No. 2221, the following transfer of funds within the budget class is requested: From: To: Budget Line Item Number/ BAR 000.07.574.200.00.05 Recreation Services 000.07.574.204.00.05 Volunteer Event Services 000.08.559.600.00.05 Community Development 000.10.521.100.00.05 Police Administration 000.10.521.230.00.05 Police Special Services 000.12.518.880.00.05 Information Technology 000.13.525.100.00.05 Public Works Emergency Services 000.13.532.100.00.05 Public Works Administration 000.13.532.102.00.05 Public Works Development 000.13.594.322.64.00 PW Machinery Equipment Total Budget Line Item Number/ BAR 000.20.291.840.00.00 Ending Fund Balance Total Detailed justification for transfer: Remove the additional departmental budget reduction, allocate to Ending Fund Balance in General Fund. C: \temp \XPgrpwise \Authorization for Transfer of Funds Additional Reduction UPDATE2.doc CO:ksn 10/6/2009 No. Amount 26,700 18,950 128,000 850 30,000 20,000 87,701 17,500 42,715 20,000 392,416 Amount 392,416 392,416 APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF: the day of APPROVED BY THE FINANCE DIRECTOR: Signature: Date: APPROVED BY THE MAYOR: Signature: Date: 2009 Proposed Budget Reductions Dept DEPARTMENT CITY OF TUKWILA 2009 BUDGET REDUCTION GENERAL FUND Equipment Targeted 3% Replacement Remaining Actual Additional Total 2009 Budget Adjustment Contribution Reduction Reduction Difference Reduction Reduction Administration 01 City Council 282,470 8,474 8,474 8,474 03 Mayor, Boards, Commissions, etc. 2,695,849 80,875 9,323 71,552 71,552 04 Administrative Services /Personnel 605,882 18,176 18,176 18,176 05 Finance 1,786,591 53,598 53,598 53,598 06 City Attorney 495,726 14,872 14,872 14,872 07 Recreation 3,546,267 106,388 16,605 89,783 77,382 08 Community Development 2,964,395 88,932 10,791 78,141 94,800 09 Municipal Court 1,149,884 34,497 34,497 28,130 12 Information Technology 1,108,886 33,267 33,267 33,267 15 Park Maintenance 1,019,621 30,589 30,106 483 12,884 Subtotal Administrative 15,655,571 469,667 66,825 402,842 413,135 12,401 (16,659) 6,367 (12,401) (10, 293) 8,474 80,875 18,176 53,598 14,872 45,650 139,637 128,000 233,591 28,130 20,000 53,267 42,990 193,650 673,610 Police Department 10 Administration 1,407,998 42,240 16,985 25,255 25,255 850 17,835 10 Investigation 1,504,164 45,125 22,737 22,388 22,388 22,737 10 Patrol 6,640,571 199,217 119,886 79,331 212,500 (133,169) 332,386 10 Special Services 1,486,058 44,582 44,582 13,843 30,738 30,000 43,843 10 Gambling /Special Operations 869,709 26,091 4,994 21,097 21,097 4,994 10 Crime Prevention 694,783 20,843 20,843 20,843 10 Training 234,915 7,047 7,047 7,047 10 Traffic 633,511 19,005 13,206 5,799 5,799 13,206 Subtotal Police 13,471,709 404,151 177,808 226,343 226,343 30,850 435,001 Fire Department 11 Administration 686,166 20,585 30,028 (9,443) (9,443) 30,028 11 Suppression 8,126,536 243,796 4,564 239,232 246,180 (6,948) 250,744 11 Prevention Investigation 818,550 24,557 17,474 7,083 7,083 17,474 11 Training 319,383 9,581 5,081 4,500 4,500 5,081 11 Facilities 101,500 3,045 3,045 3,045 11 Special Operations 58,638 1,759 1,759 1,759 11 Ambulance, Rescue Emergency 227,151 6,815 6,811 4 4 6,811 Subtotal Fire 10, 337, 924 310,138 63,958 246,180 246,180 Public Works 13 Administration General 925,889 27,777 2,455 25,322 15,000 10,322 87,701 105,156 13 Administration Maintenance 342,740 10,282 4,134 6,148 6,148 37,500 41,634 13 Engineering 670,417 20,113 1,929 18,184 18,184 1,929 13 Administration Development 495,658 14,870 14,870 14,870 42,715 42,715 13 Facility Maintenance 1,576,956 47,309 10,864 36,445 36,445 10,864 16 Street Maintenance Operation 2,700,541 81,016 136,991 (55,975) 57,500 (113,475) 194,491 Subtotal Public Works 6,712,201 201,366 156,373 44,993 72,500 (27,507) 167,916 396,789 TOTAL GENERAL FUND 46,177,405 1,385,322 464,964 920,358 958,158 (37,800) 392,416 1,505,400 Temporary Reductions as a of General Fund Budget 3.26% TO: FROM: DATE: SUBJECT: ISSUE BACKGROUND City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee Shawn Hunstock, Finance Director October 15, 2009 2009 -2010 and 2011 -2012 Budget Process and Deadlines Jim Haggerton, Mayor State statute provides specific deadlines for developing, implementing and modifying biennial budgets. The City needs to pass a mid biennium budget amendment for 2009- 2010 by December 31, 2009. A property tax levy for 2010 must also be passed by November 30, 2009. The process and deadlines for adoption of the 2011 -2012 budget also need to be discussed and decided upon in the coming months. Regarding the mid biennium adjustment, RCW 35A.34.130 requires an ordinance be passed and public hearing conducted for the mid biennium adjustment to the biennial budget. The law requires notification regarding the public hearing. These activities are scheduled for November and December, as discussed below. RCW 84.55.120 also requires a public hearing prior to the adoption of a property tax levy ordinance. RCW 84.52.070 specifies the levy ordinance must be passed by November 30 The normal biennial budget process is outlined in RCW 35A.34, as discussed below. DISCUSSION Mid Biennial Budget Adjustment Following are the specific dates for the mid biennium adjustment process: November 3 Proposed final adjustments for 2009, and proposed changes to 2010 budget, are presented to the Finance and Safety Committee. November 5 Budget Workshop with Council to review proposed changes to 2009 and 2010 budgets, and begin review of proposed CIP. INFORMATIONAL MEMO Page 2 November 9 Public Hearing conducted at the Committee of the Whole meeting. Publication for this meeting will take place from October 26 through November 2na Continue discussion of 2009 and 2010 budget changes and proposed C/P. November 23 Continued discussion of proposed changes to 2009 and 2010 budgets, continued review of proposed C/P at COW. December 7 Adoption at Regular Meeting. Please note the bulleted items above and below that are in italics are ones that are suggested, but warrant further Council feedback before a schedule is finalized. 2010 Property Tax Levy Below is the schedule for adoption of the 2010 property tax levy: November 17 Draft property tax levy presented to Finance and Safety Committee. November 23 Public Hearing on levy ordinance at Committee of the Whole meeting. Public hearing will be advertised November 9 Adoption of the property tax levy ordinance will occur the same evening at a Special Meeting. This will insure the ordinance is passed by the November 30 deadline. 2011 -2012 Biennial Budget Following is a suggested timeline, and some deadlines that are specified in state statute, for adoption of the biennial budget during 2010: February 22 Review preliminary 2009 revenues and expenditures. May 6 Council Budget Workshop. Review policy -level input on current and proposed initiatives. May 10 Call for departmental budget estimates (revenue and expenditures). Budget instructions and forms sent to department heads. June 4 Department heads complete budget estimates and send to Finance department. June 7 -25 Finance department review with each department. June 25 Finance department prepares revenue estimates for 2011 -2012. July 16 Department budgets reviewed, and if necessary adjusted, and returned to departments based on Mayor's Office priorities. C.\ temp\ XPGrpWise\ InfoMemo10- 26- 09BudgetProcess.doc INFORMATIONAL MEMO Page 3 July 20 First review of revenue projections and departmental requests by the Finance and Safety and Transportation Committees. July 27 First review of revenue projections and departmental requests by the Utilities and Community Affairs and Parks Committees. August 2 -31 Continued review of projections and departmental requests by all Committees. September 27 Proposed preliminary budget filed with City Clerk and presented at Committee of the Whole meeting. October 4 Proposed preliminary budget presented to Council at Regular Meeting. October 18 Public Hearing on proposed preliminary budget at Regular Meeting. November 1 Preliminary budget presented to Council at Regular Meeting. November 8 Final Public Hearing on proposed budget at COW. November 22 Public Hearing on 2011 property tax levy at COW. November 29 Adoption of property tax levy ordinance at Special Meeting. December 6 Adoption of budget ordinance for 2011 -2012 at Regular Meeting. RECOMMENDATION No formal recommendation at this time. The draft schedule above is presented for Council information and feedback. This item is scheduled to be discussed at the October 26, 2009 Committee of the Whole meeting. C: \temp \XPGrpW isellnfoMemo10- 26- 096udgetProcess.doc TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: September 23, 2009 SUBJECT: Sales Tax Revenue for July 2009 Schedule I in 1,000's Sales Receipt 2008 2009 2009 Increase /(Decrease) %Increase /(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,347 1,403 1,172 (231) (231) 16.46% 0.00% Feb Apr 1,357 1,397 1,051 (346) (577) 24.77% 20.61% Mar May 1,601 1,654 1,146 (508) (1,085) 30.71% 24.36% Apr June 1,365 1,497 1,191 (306) (1,391) 20.44% 23.37% May July 1,635 1,560 1,082 (478) (1,869) 30.64% 24.88% June Aug 1,646 1,757 1,217 (540) (2,409) 30.73% 25.99% July Sept 1,535 1,661 1,473 (188) (2,366) 11.32% 23.76% Aug Oct 1,555 1,647 Sept Nov 1,426 1,685 Oct Dec 1,298 1,521 Nov Jan10 1,265 1,589 Dec Feb10 1,723 2,175 Totals 17,753 19,546 8,332 Mitigation Received 1,277 9,609 87.92% of Budget Incl. Mitigation Sales tax collections showed the eleventh consecutive decrease in July compared to the same period in the prior year. For 2009, collections were less than both budget and the same month in the prior year, but much closer to each number than we've been in the last eleven months. Actual receipts for July 2009 were $188,000 less than budget, and $62,000 less than the same period last year. We are now down 23.76% for the year compared to budget, and 20.54% compared to the same period last year. The chart above also includes the mitigation payment we received at the end of March, June and September. Including the mitigation payment, we are currently at 88% of budget for the year to date. The mitigation payment we received in September for second quarter 2009 was $536,001.90. This was a 54.9% increase from the $346,046.24 we received for first quarter 2009. Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this schedule indicates, the trend is flat or down for all of the classifications. INFORMATIONAL MEMO Page 2 Schedule II Group Name 452* General Merchandise Stores 448* Clothing and Accessories 423* Wholesale Trade, Durable Goods 722* Food Services, Drinking Places 443* Electronics and Appliances 441* Motor Vehicle and Parts Dealer 236 Construction of Buildings 451* Sporting Goods, Hobby, Books 444* Building Material and Garden 453* Miscellaneous Store Retailers Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Construction of Buildings is down by 61.35 Miscellaneous Store Retailers is down by 31.80 and Wholesale Trade and Durable Goods is down by 27.53 These declines are offset by very small increases in other areas, such as Food Services and Drinking Places, which increased by 1.53 and Clothing and Accessories, which increased by 0.07 As you can see from Schedule II, eight of the top ten merchant categories have declined versus prior year, and nine of the ten industry classification codes are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected through July. Schedule Ill Group Name 323* Printing and Related Support 334* Computer and Electronic Produc 236 Construction of Buildings 442* Furniture and Home Furnishings 237 Heavy and Civil Construction 522 Credit Intermediation 541 Professional, Scientific, Tech 621 Ambulatory Health Care Service 453* Miscellaneous Store Retailers 423* Wholesale Trade, Durable Goods Mitigated NAICS Code H:\Sales Tax\2009 \Info Memo Sales Tax 092309.doc YTD Current 1,088,903 1,074,615 921,221 750,775 516,126 430,464 327,348 309,294 301,956 286,370 YTD Current 37,110 11,216 327,348 194,471 44,397 17,425 98,787 34,160 286,370 921,221 YTD Dollar Prior Diff. Diff. 1,247,743 (158,840) 12.73% 1,073,907 708 0.07% 1,271,180 (349,959) 27.53% 739,486 11,288 1,53% 627,834 (111,708) 17.79% 578,900 (148,436) 25.64% 846,869 (519,521) 61.35% 347,681 (38,386) 11.04% 397,356 (95,400) -24.01% 419,911 (133,541) 31.80% YTD Dollar Prior Diff. 108,109 (70,998) 31,848 (20,631) 846,869 (519,521) 439,672 (245,202) 78,697 (34,300) 30,764 (13,339) 154,627 (55,840) 52,746 (18,586) 419,911 (133,541) 1,271,180 (349,959) Attached is a Sales Tax Summary comparing year -to -date 2009 vs. 2008 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last four years. Please let me know if you have any comments or questions. Thank you. 0 /0 Diff. 65.67% 64.78% 61.35% 55.77% 43.59% 43.36% -36.11% 35.24% 31.80% 27.53% 481 482 484 485 488 491 492 493" NAICS CONSTRUCTION 08 TOTAL 236 Construction of Buildings 1,302,567 237 Heavy Civil Construction 130,624 238 Specialty Trade Contractors 530,490 TOTAL CONSTRUCTION 1,963,680 Overall Construction Change from Previous Year MANUFACTURING 08 TOTAL 311 Food Manufacturing 4,997 312 Beverage Tobacco Products 2,328 313 Textile Mills 1,050 314 Textile Product Mills 22,660 315 Apparel Manufacturing 215 316 Leather Allied Products 9 321" Wood Product Manufacturing 9,515 322' Paper Manufacturing 21,545 323' Printing Related Support 143,009 324 Petroleum Coal Products 9,630 325 Chemical Manufacturing 8,068 326 Plastic Rubber Products 4,085 327" Nonmetallic Mineral Products 5,242 331 Primary Metal Manufacturing 52 332 Fabricated Metal Mfg Products 6,310 333 Machinery Manufacturing -8,777 334' Computer Electronic Products 44,162 335 Electric Equipment, Appliances 895 336 Transportation Equipment Mfg 191,525 337" Furniture Related Products 31,384 339' Miscellaneous Manufacturing 22,411 TOTAL MANUFACTURING 520,315 Overall Manufacturing Change from Previous Year TRANSPORTATION WAREHOUSING Air Transportation Rail Transportation Truck Transportation Transit and Ground Passengers Transportation Suppod Postal Services 08 TOTAL 0 1,935 965 11,502 28,728 88 Couriers Messengers 476 Warehousing Storage 781 TOTAL TRANSP WHSING 44,475 Overall Transportation Change from Previous Year WHOLESALE TRADE 423' Whls Trade Durable Goods 424' Whls Trade Nondurable Goods 425' Wholesale Electronic Markets Sales Tax Mitigation NAICS Codes I 09/23/20000 08 TOTAL 1,777,808 113,096 2,805 WHOLESALE TRADE TOTAL 1,893,709 Overall Wholesale Change from Previous Year SALES TAX SUMMARY July 2009 (Received in September) YTD 08 YTD 09 YTD Diff 846,869 327,348 -61.3% 78,697 44,397 -43.6% 298,707 221,050 -26.0% 1,224,272 592,795 ($631,478) -51.6% YTD 08 YTD 09 YTD Diff 2,928 744 -74.6% 872 1,705 95.5% 42 155 265.2% 16,960 7,932 -53.2% 92 37 -60.4% 2 4 113.0% 6,106 1,971 -67.7% 11,872 11,303 -4.8% 108,109 37,110 -65.7% 6,188 2,802 -54.7% 5,554 3,741 -32.6% 3,014 2,110 -30.0% 2,790 1,172 -58.0% I 26 101 280.4% 3,468 1,844 -46.8% 11,838 1,969 116.6% 31,848 11,216 -64.8% I 443 90 -79.6% 109,909 80,383 -26.9% 26,676 5,802 -78.3% I 11,903 7.417 -37.7% I 336,965 179,606 ($157,359) -46.7% I YTD D8 YTD 09 YTD Diff 0 0 0.0% 1,115 833 -25.2% 262 1,412 438.1% 6,674 6,700 0.4% 16,336 13,888 -15.0% 37 0 100.0% 462 32 -93.0% 444 714 60.7% I 25,331 23,580 ($1,751) -6.9% YTD 08 YTD 09 YTD Diff 1,271,180 921,221 -27.5% 53,672 62,706 16.8% 2,074 1,177 -43.3% 1,326,925 985,103 ($341,822) -25.8% NAICS AUTOMOTIVE 08 TOTAL 441' Motor Vehicle Parts Dealer 993,146 I 447' Gasoline Stations 73,034 TOTAL AUTOMOTIVE 1,066,181 Overall Automotive Change from Previous Year NAICS RETAIL TRADE 08 TOTAL 442' Furniture Home Furnishings 621,785 443' Electronics Appliances 1,077,238 444" Building Material Garden 619,645 445' Food Beverage Stores 88,317 446' Health Personal Care 146,841 448" Clothing Accessories 2,101,593 451' Sporting Goods, Hobby, Books 644,522 452' General Merchandise Stores 2,231,745 453' Miscellaneous Store Retailers 721,034 454' Nonstore Retailers 116,347 TOTAL RETAIL TRADE 8,369,066 Overall General Retail Change from Previous Year SERVICES 51X Information 52X Finance Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Su pp, Remed Svcs 611 Educational Services 62X Health Cam Social Assistance 71X Arts Entertainment 72X" Accommodation Food Svcs 81X Other Services 92X Public Administration TOTAL SERVICES Page 1 MISCELLANEOUS 08 TOTAL 570,706 75,585 403,851 338,302 1,902 167,119 12,727 109,308 106,515 1,858,292 192,450 843 3,837,599 Overall Services Change from Previous Year 08 TOTAL 000 Unknown 1,147 111 -115 Agriculture, Forestry, Fishing 1,095 211 -221 Mining Utilities 19,574 999 Unclassifiable Establishments 35,837 MISCELLANEOUS TOTAL 57,652 Overall Miscellaneous Change from Previous Year 08 TOTAL GRAND TOTALS $17,752,678 Grand Total Change from Previous Year YTD 08 YTD 09 YTD %Diff 578,900 430,464 -25.6% 46,327 35,920 -22.5% 625,227 466,384 ($158,843) -25.4% 08 YTD 09 YTD Diff 439,672 194,471 -55.8% 627,834 516,126 -17.8% 397,356 301,956 -24.0% 62,258 49,432 -20.6% 83,732 105,664 26.2% 1,073,907 1,074,615 0.1% 347,681 309,294 -11.0% 1,247,743 1,088,903 -12.7% 419,911 286,370 -31.8% 62,958 157,595 150.3% 4,763,051 4,084,425 ($678,627) -14.2% YTD 08 YTD 09 YTD Diff 327,172 310,785 -5.0% 38,165 24,286 -36.4% 242,856 208,540 -14.1% 154,627 98,787 -36.1% 1,337 727 -45.6% 90,084 76,207 -15.4% 3,796 22,370 489.4% 65,791 46,166 -29.8% 66,063 54,573 -17.4% 1,056,715 1,026,773 -2.8% I 111,806 106,326 -4.9% 295 13,589 4507.9% 2,158,706 1,989,130 ($169,576) -7.9% 08 YTD 804 201 9,625 16,021 26,651 08 YTD $10,487,129 YTD 09 YTD Diff 397 -50.6% 80 -60.3% 8,922 -7.3% 2,447 -84.7% 11,846 ($14,805) -55.6% YTD 09 YTD Diff $8,332,869 ($2,154,261) 20.54% TOO sales Tax Rpl 202907.50 2009 I 2006 2008 2007 Four Year Comparison $2,000,000 $4,000,000 $10,487,133 $10,743,680 Taxes Collected Year to Date $8,332 885 $9,938,118 I $6,000,000 $8,000,000 $10,000,000 $12,000,000