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HomeMy WebLinkAboutCOW 2009-10-26 Item 4C - Budget - Transfer of Funds for 2009 Budget Reductions COUNCIL AGENDA SYNOPSIS lLA Prepared ITEMNo. i4leetitzg Date b y Mayor review Carniz /reuzen, y 10/26/09 t SH 1 yor a 11/02/09 1 SH 2908 ITEM INFORMATION I CAS Number 09-153 'ORIGINAL AGIND, DAM: OCTOBER 26, 2009 A(;i.NI). Ti•i7.i? Authorization for Transfer of Funds for additional budget reductions for 2009. C.\ I ;ORv Discussion Motion Resolution n Ordinance BzdAward f l Public Hearing Other 1 t Date 10/26/09 Mt& Date 11/02/09 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date I SIS( )NS( )R Council Mayor Adm Svcs DCD Finance n .Fire n Legal P &R Police Pid% S P( )NS( )R'S The Authorization for Transfer of Funds implements additional budget reductions for 2009, SUMMA RY beyond the three percent reduction recently enacted. The Council is being asked to approve the Authorization for Transfer of Funds. RI..\'ll?\X'I .11 B1 COW Mtg. CA &P Cmte g n F&S Cmte n Transportation Cmte Utilities Cmte Arts Comm. f l Parks Comm. n Planning Comm. DATE: 10/20/09 RECOMMENDATIONS: SP()NS( )R/ADMIN. Finance Department CoMMrrrEI Unanimous Approval; Forward to C.O.W. COST IMPACT FUND SOURCE E \PI NDITURI Rl; OUIRI'•D AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Cornments MTG. DATE 1 RECORD OF COUNCIL ACTION 10/26/09 11/02/09 J MTG. DATE ATTACHMENTS 10/26/09 Informational Memorandum dated 10/1/09 Authorization for Transfer of Funds form 2009 Proposed Budget Reductions spreadsheet Minutes from Finance and Safety Committee meeting of 10/20/09 11/02/09 2 TO: 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 ISSUE 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. BACKGROUND Sales tax receipts through August 31 are 16% Tess than budget, equating to an annual $2.4 million revenue shortfall. Additionally, several other revenue streams have not met budget. DISCUSSION 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. 29 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 30 C: \temp \XPGrpWisellnfoMemo 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: Budget Line Item Number/ BAR From: 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 To: 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. 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: 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 31 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 03 Mayor, Boards, Commissions, etc. 2,695,849 8,474 8'474 8,474 04 Administrative Services /personnel 80,875 9,323 71,552 71,552 605,882 80,875 18,176 05 Finance 18,176 18,176 1,786,591 18,176 53,598 53,598 53,598 06 City Attorney 495,726 14,872 14,872 14,872 53,598 07 Recreation 3,546,267 106,388 16,605 89,783 77,382 12 14,872 08 Community Development 2,964 88932 401 45,650 139,637 1,149,884 09 Municipal Court 88,932 10,791 78,141 94,800 (16,659) 128,000 233,591 12 Information Technology 1,108,886 33,267 34,497 34,497 28,130 6,367 28,130 1,019,621 15 Park Maintenance 33,267 33,267 20,000 53,267 Subtotal Administrative 15, 655, 571 30,589 30,106 483 12,884 (12,401) 469, 667 42,990 6 40 2,842 413,135 (10,293) 193,650 673,610 Police Department 10 Administration 1,407,998 42,240 16,985 25,255 10 Investigation 1,504,164 25,255 850 17,835 6,640,571 10 Patrol 45,125 22,737 22,388 22,388 22,737 10 Special Services 1,486,058 199,217 119,886 79,331 212,500 (133,169) 332,386 44,582 10 Gambling /Special Operations 869,709 44,582 13,843 30,738 30,000 43,843 10 Crime Prevention 694,783 20,843 26,091 4,994 21,097 21,097 4,994 10 Training 20,843 g 234,915 7,047 20,843 234 10 Traffic 7,047 7,047 633,511 19,005 13,206 5,799 5,799 Subtotal Police 13,471,709 404,151 177,808 226,343 226,343 13,206 30,850 435,001 Fire Department 11 Administration 686,166 20,585 30,028 11 Suppression (9,443) (9,443) 30,028 8,126,536 818,550 11 Prevention Investigation 818, 243,796 4,564 239,232 246,180 (6,948) 250,744 24,557 17,474 11 Training 7,083 7,083 17,474 319,383 9,581 5,081 4,500 4,500 11 Facilities 101,500 3,045 5,081 11 Special Operations 3,045 3,045 58,638 1,759 1,759 1,759 11 Ambulance, Rescue Emergency 227,151 6 6,811 Subtotal Fire 4 4 6,811 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 13 Engineering 6,148 6,148 37,500 41,634 670,417 20,113 1,929 18,184 18,184 13 Administration Development 495,658 14,870 1,929 1,576,956 13 Facility Maintenance 14,870 14,870 42,715 42,715 16 Street Maintenance Operation 2,700,541 81,016 136,991 47,309 10,864 36,445 36,445 10,864 Subtotal Public Works (55,975) 57,500 (113,475) 194,491 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% 34 Finance Safety Committee Minutes October 20, 2009 Pave 2 general Council desire to be responsive and diplomatic in the process of making decisions that directly affect City employees. It is with these considerations that a specific amount of funding has not been targeted for reduction. At this time, the intent is to save funding and reduce expenditures whenever or wherever possible. The Committee did not reach unanimous approval for a recommended action in regards to this item. The following items were agreed to: This item will move forward to full Council for discussion with the Mayor's recommendations, after the November 3 General Election (to the November 9 COW). Non represented City employees should be asked to provide input on potential wage options. FORWARD TO NOVEMBER 9 COW FOR DISCUSSION. B. Contract Renewal for 2010 M.J. Durkan for Lobbying Services This is a professional services renewal contract with M. J. Durkan, Inc. for local lobbying service. This will be a one -year contract with terms, scope of services and fees remaining the same as last year. The Committee recognizes the importance of maintaining relations with the State especially during these challenging economic times. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 26 COW FOR DISCUSSION. C. Authorization to Transfer Funds for Additional 2009 Budget Reductions Staff is seeking full Council authorization to transfer funds from various City Department budgets in the amount of $392,416 to Department 20 for additional budget reductions. Council has previously approved funds transfers including a City -wide 3% budget reduction and a transfer from the 2009 Equipment Replacement fund. This third transfer comes from selected departments based on identified cost savings opportunities. Committee Chair Linder requested clarification in the Fund Transfer line item for Public Works Emergency Services. This line item reflects a cost savings as a result of the vacant CERT position. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 26 COW FOR DISCUSSION. D. Bucket Process and Deadlines Based on Council request, staff has provided a detailed, dated list of major steps involved and required in the biennial budget process as outlined in the informational memo included in the Committee agenda packet. Kimberly Matej is currently working with Shawn Hunstock to incorporate this information into a table that can be utilized and updated annually. The Committee noted that most of the budget process is dictated and required by law. The majority of preparation taking place prior to legally mandated deadlines is at City discretion. Committee Members expressed confidence that this detailed process will allow input on budget items in a timely and efficient manner. The documentation incorporates this Council policy -level review at various times throughout the year, including an early Spring (May) review of sales receipts and potential budget modifications. The information and timeline Council will be discussing on October 26 is based on budgetary requirements without implementation of Initiative 1033. If I -1033 passes, the City will have ample time to react strategically. However, Committee Chair Linder requested that Shawn also provide the initial three or four steps that will be required of the City in the event of I -1033 passage. For example, passage will require setting the property tax level to the highest possible limit. FORWARD TO OCTOBER 26 COW FOR DISCUSSION.