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Home My WebLink AboutCOW 2009-04-13 Item 4C - Budget - General Fund Contribution to Equipment Rental FundCAS NUMBER: 09-043 Oq COUNCIL AGENDA SYNOPSIS Itzztzals Meeting Date Prepared by 1 Mgyo s revien' 04/13/09 SH 1 04/20/09 SH 1 2454: ITEM INFORMATION Coznacil revie,a■ ORIGINAL AGENDA DATE: APRIL 13, 2009 Ac; I :ND.\ T 1'I :\1 TI I ]J General Fund contribution to the Equipment Rental Fund C.\'1'I ,c;c )R1' SP'O'NSOR SP( )NSOR'S \R\' Fund Source: Convnents: MTG. DATE 04/13/09 MTG. DATE 04/13/09 04/20/09 Discussion Motion n Council Mtg Date 04/13/09 11 Ltg Date 04/20/09 Mtg Date Ititg Date I1 Resolution Ordinance Bid Award Mtg Date Mayor 1 Adzn Svcs 1 1 DCD Finance 1 Fire 1 Legal II 11ltg Date P &R RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 04/01/09 Authorization for Transfer of Funds dated 04/01/09 Minutes from the Finance and Safety Committee meeting of 4/7/09 ITEM No. Police C Public Hearing n Other Mtg Date This item will involve removal of the General Fund contribution for equipment replacement to the Equipment Rental Fund for 2009. The departmental contributions will be moved out of the departments and added back to Department 20 to prevent the funding from being spent. The Council is being asked to consider and approve the budget amendment removing departmental contributions to the Equipment Rental Fund for 2009. RI 11 BY n COW Mtg. 1 CA &P Cmte F &S Cmte 1 I Transportation Cmte n Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 04/07/09 RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department COMM1 TEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE E\PEND1"1'URI. RI?(>UIRI?D AMOUNT BUDGETED $464,964 $464,964 APPROPRIATION REQUIRED P11/ TO: ISSUE BACKGROUND DISCUSSION RECOMMENDATION ATTACHMENTS City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Directo DATE: April 1, 2009 SUBJECT: General Fund Contribution to Equipment Rental Fund Authorization for Transfer of Funds form Jim Haggerton, Mayor Given the current economic condition the City finds itself in, the administration is looking for ways to reduce the overall level of expenditures in the General Fund. One of the ideas being considered is not funding the equipment replacement contribution from the General Fund to the Equipment Rental Fund for 2009, which would save $464,964. This expenditure reduction would not affect the General Fund contribution to the Equipment Rental Fund for operations and maintenance, which totals $1,115,298 for 2009. The Equipment Rental fund (501) ended 2007 with over $3.3 million in cash, $6.1 million in Net Assets and $3.4 million in unrestricted fund balance. Preliminary estimates for 2008 show revenue of $2.3 million and expenditures of $2.4 million, meaning the cash and fund balance did not change substantially during 2008. During the last five years, the Equipment Rental fund earned over $589,000 in investment income. The attached Authorization for Transfer of Funds will move the budgeted equipment replacement contributions for the General Fund out of individual departments and into Department 20 to segregate the cost savings and prevent this amount from being spent. Budgeted revenue for the Equipment Rental Fund will not be adjusted at this time until it can be determined if this amendment is temporary or permanent. The Council is being asked to approve the Authorization for Transfer of Funds and consider this item at the April 7, 2009 Finance and Safety Committee meeting, the April 13, 2009 Committee of the Whole meeting and subsequent April 20, 2009 Regular Meeting. City of Tukwila AUTHORIZATION FOR TRANSFER OF FUNDS Department: Finance Department Date: April 1, 2009 Under the provisions of Ordinance No. 2221, the following transfer of funds within the budget class is requested: From: Budget Line Item Number/ BAR 000.03.513.100.45.94 Mayor's Office 000.07.574.100.45.94 Parks Rec 000.07.574.200.45.94 000.08.558.100.45.94 DCD 000.08.558.600.45.94 000.10.521.100.45.94 Police 000.10.521.210.45.94 000.10.521.220.45.94 000.10.521.250.45.94 000.10.521.700.45.94 000.11.522.100.45.94 Fire 000.11.522.200.45.94 000.11.522.300.45.94 000.11.522.400.45.94 000.11.522.601.45.94 000.13.518.300.45.94 Public Works 000.13.532.100.45.94 000.13.532.101.45.94 000.13.532.200.45.94 000.15.576.800.45.94 Parks Maint. 000.16.543.300.45.94 Streets Div. Total Budget Line Item Number/ BAR To: 000.20.291.840.00.00 End Fund Balance the Total APPROVED BY THE DEPARTMENT HEAD: Signature: APPROVED BY THE MAYOR: Signature: CO:ksn 4/1/2009 464,964 Detailed justification for transfer: Remove General Fund contribution for 2009 to the Eauipment Rental Fund. APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF: day of 20 464,964 Date: Date: Amount 9,323 2,247 14,358 6,987 3,804 16,985 22,737 119,886 4,994 13,206 30,028 4,564 17,474 5,081 6,811 10,864 2,455 4,134 1,929 30,106 136,991 Amount 464,964 Finance Safety Committee Minutes Aoril 7, 2009 Pape 2 funding relative to this outreach. Expenses are estimated at this time. UNANIMOUS APPROVAL. FORWARD TO APRIL 20 REGULAR MEETING. *Due to a full agenda for the April 13, 2009, Committee of the Whole Meeting, Committee Chair Linder, with the concurrence of Committee Members, has approved the above three items to move directly to the April 20, 2009, Regular Meeting for discussion and subsequent action. D. General Fund Contribution to Equipment Rental Staff is seeking full Council authorization to transfer $464,964 of General Fund contributions to the General Fund balance rather than to the Equipment Rental Fund. In response to continued unstable economic conditions, City Administration is proactively identifying opportunities, such as this, to reduce General Fund expenditures. Removing the 2009 General Fund contribution of $464,964 to the Equipment Rental Fund will not effect the Fund's operations and maintenance budget; it will only effect the 2009 equipment replacement contributions which are utilized to purchase replacement vehicles. The money will be moved to Department 20 (Contributions/Fund Balance), segregating the cost savings and preventing the money from being spent. It will be determined at a later time if this transfer is temporary or permanent. Temporary, meaning that the money will be reimbursed to the specific fund when and if the Administration determines replacement is plausible; or permanent, meaning that this is a one -time cost savings contribution that will not be returned to the Fund. Committee Members recognize the need for the City to be proactive during these times, and expressed their appreciation for Administration attention to and recognition of cost savings opportunities. UNANIMOUS APPROVAL. FORWARD TO APRIL 13 COW FOR DISCUSSION. E. Kinu County Animal Control Services Staff is seeking full Council approval to enter into two interlocal agreements for enhanced animal services and programs. One interlocal agreement is between the City of Tukwila and King County in an amount not to exceed $60,000 annually. The second interlocal agreement is between Tukwila and SeaTac providing for priority response and mutual aid in the event of an emergency animal control incident. Assistant Chief Villa gave a brief history of animal control services in the City as summarized below (taken directly from his informational memo to Committee): The City of Tukwila and King County entered into an Interlocal Agreement dated December 15, 1993, relating to the provision of animal control services within the City. In 1994, the Interlocal was amended. King County agreed to provide supplemental animal control services to average 12 hours per week. In August of 2007, the City and King County amended the Interlocal Agreement increasing dedicated animal control services from 12 hours per week to 20 hours per week. However, the amendment was never finalized because King County was unable to provide 20 hours of supplemental services during 2007 or 2008. King County is now able to provide the supplemental animal control services, in the form of an additional animal control officer dedicated to the City, for an additional 20 hours per week. The total cost of this additional service will not exceed $60,000 annually. This amount includes $6,480 for the County to provide a dedicated animal control vehicle, plus the animal control officer's base hourly rate including benefits. As determined by the interlocal agreement, the animal control officer will report directly to the officer in charge (which will be Traffic Officer Jon Harrison) as well as the contract administrator (Assistant Chief Mike Villa).