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Home My WebLink AboutCOW 2009-07-27 Item 5C - Budget - Transfer of Funds Representing 3% Budget AdjustmentsCAS NUMber 09-107 Fund Source: Comments: MTG. DATE 07/27/09 08/03/09 MTG. DATE 07/27/09 08/03/09 0 9- 1 COUNCIL AGENDA SYNOPSIS Meeting Date Prepared by 07/27/09 SH 08/03/09 SH Initials 1 Mayor's review Council reuie,v 1,.. ITEM INFORMATION 1 ORIGINAL AGENDA\ DA TI: JULY 27, 2009 .1GI TITLE Authorization to transfer funds from departments to Department 20 to facilitate a 3% budget reduction. C.\'I'I X ORY Discussion Motion n Resolution Ordinance U Bid Award n Public Hearths Other tllt Date 7/27/09 [bltg Date 8/3/09 Mtg Date Mts Date AlItg Date Abltg Date Mtg Date SPONS()1Z n Council I 1 Mayor n Adm Svcs DCD Finance n Fire Ledal P &R Police PW SP( )NS( )R'S SI 1 This item will remove funding from each department to accommodate a 3% budget reduction and allocate to the ending fund balance in Department 20, to prevent spending of these funds. The Council is being asked to consider and approve the budget amendment moving funds from the departments to Department 20. RI :\'ll RY COW Mtg. I CA &P Cmte F &S Cmte Utilities Cmte Arts Comm. Parks Comm. DATE: 07/21/09 RECOMMENDATIONS: SpoNSOR /ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Committee COST IMPACT FUND SOURCE ExpI ;NDI'FURI: R1 AuIRI?D AMOUNT BUDGETED $958,158 $958,158 n Transportation Cmte Planning Comm. RECORD OF COUNCIL ACTION of the Whole ATTACHMENTS Informational Memorandum dated 07/15/09 Authorization for Transfer of Funds Implementation of 3% budget reduction spreadsheet Minutes from the Finance and Safety Committee meeting of 07/21/09 ITEM No. APPROPRIATION REQUIRED TO: FROM: DATE: SUBJECT: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee Shawn Hunstock, Finance Director July 15, 2009 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 are currently over 23% behind budget for the year, and nearly 20% behind where we were at the same time a year ago. Property taxes are coming in very close to budget so far this year. Other major revenue sources, such as utility taxes and gambling taxes, are tracking close to budget, if not slightly over. The deficit in sales tax, though, is approximately $1.4 million now and is growing each month. The Mayor recently asked department Directors to implement a 3% budget reduction for the year. The intent was to not reduce permanent staffing levels, if possible. The feedback received from each Director was that, while difficult to implement, a 3% reduction was feasible and would not require changes to permanent staffing. As you can see from the attached spreadsheet, a 3% reduction of the 2009 budget totaled $1,385,322. A large portion of the reduction ($464,964) came in the form of an elimination of the equipment replacement contribution for 2009, which Council previously approved. The balance of the reduction came from each department as a reduction in their operating budgets. The actual reduction recommended by Directors totals $958,158, which is $37,800 above the 3% targeted reduction. 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 the remaining amount of the 3% departmental budget reductions. 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. One of the options Directors have is to utilize temporary vacancies while INFORMATIONAL MEMO Page 2 recruiting for positions. They can use this salary and benefit savings to account for some of their budget reduction. RECOMMENDATION The Council is being asked to approve the attached Authorization for Transfer of Funds. This item is scheduled to be discussed at the July 21, 2009 Finance and Safety Committee meeting, the July 27, 2009 Committee of the Whole meeting and subsequent August 3, 2009 Regular Meeting. ATTACHMENTS Authorization for Transfer of Funds Implementation of 3% Budget Reduction spreadsheet C:\ temp \XPGrpWise \I nfoMemoThreePercentReductions .doc Department: Finance Department From: To: the City of Tukwila AUTHORIZATION FOR TRANSFER OF FUNDS Under the provisions of Ordinance #2221, the following transfer ()Hands within the budget is requested: Budget Line 000.01.511.600.00.05 000.03.513.100.00.05 000.04.516.200.00.05 000.05.514.230.00.05 000.06.515.200.00.05 000.07.574.200.00.05 000.07.574.204.00.05 000.08.559.600.00.05 000.09.512.500.00.05 000.09.523.300.00.05 000.10.521.220.00.05 000.10.521.230.00.05 000.11.522.200.00.05 000.12.518.880.00.05 000.13.532.100.49.50 000.15.576.800.00.05 000.16.594.430.64.00 Item Number /BAR City Council Mayor's Office Admin Services /Personnel Finance Legal P &R Recreation P &R Volunteer /Event Svc DCD Court Court Probation Police Patrol Police Records Fire Information Technology Public Works Parks Maint. PW Streets Division Total Budget Line Item Number/ BAR 000.20.291.840.00.00 Ending Fund Balance Total No. Date: July 21, 2009 Amount 8,474 71,552 18,176 53,598 14,872 63,882 13,500 94,800 12,612 15,518 212,500 13,843 246,180 33,267 15,000 12,884 57,500 958,158 Amount 958,158 958,158 Detailed justification for transfer: Remove the remaining 3% budget reduction from department budgets, allocate to ending fund balance in the General Fund. APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF: day of APPROVED BY THE FINANCE DIRECTOR: Signature: APPROVED BY THE MAYOR: Signature: W: \2009 InfoMemos \Authorization for Transfer of FundsThreePercent_1.doc CO:ksn 7/16/2009 Date: Date: Implementation of 3% Budget Reduction Dept DEPARTMENT CITY OF TUKWILA 2009 BUDGET REDUCTION GENERAL FUND Equipment Targeted 3% Replacement Remaining Actual 2009 Budget Adjustment Contribution Reduction Reduction Difference 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 12,401 08 Community Development 2,964,395 88,932 10,791 78,141 94,800 (16,659) 09 Municipal Court 1,149,884 34,497 34,497 28,130 6,367 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 (12,401) Subtotal Administrative 15,655,571 469,667 66,825 402,842 413,135 (10,293) Police Department 10 Administration 1,407,998 42,240 16,985 25,255 25,255 10 Investigation 1,504,164 45,125 22,737 22,388 22,388 10 Patrol 6,640,571 199,217 119,886 79,331 212,500 (133,169) 10 Special Services 1,486,058 44,582 44,582 13,843 30,738 10 Gambling /Special Operations 869,709 26,091 4,994 21,097 21,097 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 Subtotal Police 13,471,709 404,151 177,808 226,343 226,343 Fire Department 11 Administration 686,166 20,585 30,028 (9,443) (9,443) 11 Suppression 8,126,536 243,796 4,564 239,232 246,180 (6,948) 11 Prevention Investigation 818,550 24,557 17,474 7,083 7,083 11 Training 319,383 9,581 5,081 4,500 4,500 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 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 13 Administration Maintenance 342,740 10,282 4,134 6,148 6,148 13 Engineering 670,417 20,113 1,929 18,184 18,184 13 Administration Development 495,658 14,870 14,870 14,870 13 Facility Maintenance 1,576,956 47,309 10,864 36,445 36,445 16 Street Maintenance Operation 2,700,541 81,016 136,991 (55,975) 57,500 (113,475) Subtotal Public Works 6,712,201 201,366 156,373 44,993 72,500 (27,507) TOTAL GENERAL FUND 46,177,405 1,385,322 464,964 920,358 958,158 (37,800) FINANCE AND SAFETY COMMITTEE Meeting Minutes July 21, 2009, 5:00 p.m.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffie and De' Sean Quinn Staff: Peggy McCarthy, Dennis McOmber, Gail Labanara, Rhonda Berry and Kimberly Matej Guests: Jeremy Eide CALL TO ORDER: Chair Linder called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Authorization for Transfer of Funds Purchase of Front Loader, Staff is seeking full Council authorization to transfer funds from the Water, Sewer and Surface Capital Outlay funds to the Equipment Rental 501 Fund to purchase a front loader. Originally, funding for this item was allocated in the three funds above and the Street fund; however, the monies were removed from the Street fund due to budget reductions. A 2008 front loader, which still meets the City's needs, can be purchased with the designated funds remaining for the purchase in Water, Sewer and Surface Capital Outlay. This is essentially a housekeeping issue transferring monies within funds with no General Fund dollars being utilized to purchase this item. UNANIMOUS APPROVAL. FORWARD TO JULY 27 COW FOR DISCUSSION. B. Authorization to Transfer Funds 3% Budget Adjustments Staff is seeking full Council authorization to transfer funds from various City Department budgets in the amount of $958,158 to Department 20, which is used to provide designated and ending funds balances for unanticipated uses (see 2009 -10 Biennial Budget, page 144). Essentially, this is the formal action which will reflect the remaining amount of the City -wide 3% budget reduction which was effective as of June 1, 2009. Earlier this year, Council approved a transfer from the 2009 Equipment Replacement fund which made a substantial contribution ($464,964) to the 3% adjustment. This amount also includes a 3% budget reduction (in the amount of $8,474) to the Council Budget. To set an example for the City, the Committee is in favor of the Council contributing to this reduction, and recommends the Travel and Miscellaneous line items be reduced /adjusted accordingly. Committee Chair Linder will make this recommendation at the July 27 COW and request further discussion. Committee Chair Linder asked that staff be prepared at the July 27 COW to provide comprehensive, detailed information on this 3% reduction as well as effects of any additional reductions on the City. UNANIMOUS APPROVAL. FORWARD TO JULY 27 COW FOR DISCUSSION. III. MISCELLANEOUS Meeting adjourned at 5:34 p.m. Next meeting: Tuesday, August 4, 2009 5:00 p.m. Conference Room #3 F S 1✓ Committee Chair Approval Minutes by KAM. Reviewed by PM and SH. City of Tukwila Finance and Safety Committee