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Home My WebLink AboutCOW 2004-07-26 Item 3D - Budget - 2005 Budget Schedule and Revise 2005-2010 Planning Model w COUNCIL AGENDA SYNOPSIS s Initials- ITEM No. Vol y I Meeting Date 1 Prepared by 1 Maygr's.review 1 Council review us e 4.3„, '.,N f I 7/26/04 I ARD I Cam' 1j7i4.,. tom/ rsos I I I I I 5. et I I I 1 1 w tWo. t TQ t CAS NUMBER 04-107 I ORIGINAL AGENDA DATE: 7 /26/04 AGENDA ITEM TITLE Budget Schedule /Planning Model Update CATEGOR Discussion ❑Motion Resolution Ordinance Bid Award Public Other Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm DCD gi Finance Fire Legal P&R Police PW SPONSOR'S Provide Budget Schedule for 2005 and present revised Draft 2005 -2010 Planning SUMMARY Model REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: RECOMMENDATIONS: SPONSOR/ADMIN. For Information Only COMMITTEE r EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N /A $N /A $N /A Fund Source: N/A Comments: IMMO T rfil 7Y Reddiiti i CatUNfC1L rdSI it l n tian 7/26/04 I I I RMTG t, Ef t iA 't .r :46 r Al` ACF.MENTS` t rat 3" 7/26/04 Planning Model Update letter to Council 1 7/26/04 Budget Schedule letter to Department Heads I I I · ' ................ i'~' 620~ Southcenter Boulevard · Tukwila, Washington 98188 Steven M. Mullet, Mayor To: City Council From: Mayor Mullet E~w,~ Date: July 22, 2004 Re: 2005 Budget Schedule and Planning Model Update Attached is my 2005 budget message to Department Heads, including a proposed schedule for creation, review and adoption by the City Council. Also attached is the revised Attachment A and Attachment B of the Draft 2005-2010 Financial Planning Model. Estimates of additional costs for the Tukwila Valley South (TVS) annexation project and development are included. Other than the Tukwila Valley South project, there are no expenditure or revenue estimates for projects not completed. Revised capital project sheets and potential new revenue estimates (i.e. Westfteld Mall expansion) will be submitted as a part of the October 4, 2004 Proposed Budget/Planning Model documents. A proposed debt policy and Local Improvement District (LID) issues and options paper will be presented to the Finance and Safety Committee on August 2. It is somewhat premature to speculate, but additional revenues generated by the Mall expansion and redevelopment of the J C Penney warehouse property will more likely than not erase shortfalls in the planning model. It will not be as easy, however, to preserve that revenue against rising capital needs and increasing O & M costs. Phone: 206-433-1800 · CiO/HaliFax: 206-433-1833 · www. cLtukwila.wa.us ATTACHMENT A CITY OF TUKWILA TOTAL REVENUES & EXPENDITURES 2005-2010 Analysis in 000's REVENUES (see A-l) 2005 2006 2007 2008 2009 2010 Totals ieneral Revenues Sales Tax 15,600 16,068 16,550 17,046 17,557 18,084 100,905 Property Tax 10,406 10,668 10,937 11,123 11,553 11,784 66,471 Utility Taxes 2,940 3,033 3,637 3,758 3,884 4,000 21,252 Gambling Taxes 2,300 2,300 2,300 2,400 2,400 2,500 14,200 Franchise Contract-SCL 1,452 1,505 1,839 1,907 1,977 2,036 10,716 Charges/Fees for Service 2,850 2,966 3,084 3,208 3,336 3,470 18,914 Trans. In-Other Funds 1,970 2,049 2,131 2,216 2,305 2,397 13,068 Intergovernmental Revenue 569 592 615 640 665 ' 675 3,756 Other Taxes/Misc. 1,227 1,276 1,327 1,380 1,436 1,493 8,139 Cash Carryover 0 300 300 300 300 300 1,SOn Subtotal 39,314 40,757 42,720 43,978 45,413 40,739 258,921 Dedicated Revenues (Caoital~ Real Estate Taxes 650 650 700 700 700 700 4,1 Motor Vehicle Taxes 450 450 450 450 450 450 2,700' Interest Income 150 150 100 100 100 150 750 Property Tax 130 130 130 130 130 130 780 Parking Tax 160 160 160 160 170 170 980 Subtotal 1,540 1,540 1,540 1,540 1,550 1,600 9,310 rOTAL REVENUE AVAILABLE 40,854 42,297 44,260 45,518 46,963 48,339 268,231 EXPENDITURES (see A-2) Operations & Maintenance: 35,301 36,349 37,800 39.309 40,899 42,550 232,208 (See Attachment B) Debt Service - 1994 490 490 490 490 490 490 2,940 Debt Service - 1999 & 2000 835 1,085 1,085 1,085 1,085 1,085 6,260 New Bond Issue - 2003 492 492 492 492 492 492 2,952 Leased Space - Tukwila Village 110 120 130 150 160 160 830 Admin/Engineedng Overhead 998 1,038 1,080 1,123 1,168 1,214 6,621 Subtotal Available 2,628 2,723 3,183 2,869 2,669 2,348 16,420 Capital - Attachment C Neighborhood Revitalization Residential Streets 485 570 70 70 70 70 1,335 Parks & Trails 208 338 208 188 148 200 1,290 General Government Facilities 0 0 0 0 0 0 0 General Government 860 860 960 1,060 1,060 1,160 5,960 Economic Development Bddges 100 100 100 100 100 100 600 Arterial Streets 2,914 2,565 2,075 2,075 2,370 2,400 14,399 Subtotal Capital 4,567 4,433 3,413 3,493 3,748 3,930 23,584 Balance by Year (1,939) (1,710) (230) (624) (1,079) (1,582) (7,164) Carryover from 2004 11,589 0 0 0 0 0 11,589 Accumulated Totals 9,650 7,940 7,710 7,086 6,007 4,425 IV 07/20/04 ATTACHMENT B CITY OF TUKWlLA Notes to Operations & Maintenance Expenditures 2005-2010 Analysis in 000's EXPENDITURES 2005 2006 2007 2008 2009 2010 Totals City Council 229 238 247 257 268 279 '1,818 Mayor, Boards 1,270 1,321 1,374 1,429 1,486 1,545 8,425 Administrative Services 1,485 1,544 1,606 1,670 1,737 1,806 9,848 Finance 1,433 1,427 1.485 1,544 1,605 1,669 9,'163 City Attorney 416 433 450 468 487 506 2,760 Recreation/Parks 3,318 3,454 3,592 3,736 3,885 4,040 22,025 Community Development 2,268 2,251 2,337 2,426 2,520 2,621 14,423 Municipal Court 929 964 1,004 1,048 1,080 1,123 6,148 Police 10,570 10,991 11,429 11,884 12,367 12,861 70,102 Fire 8,212 8,541 8,883 9,238 9,607 9,991 54,472 Public Works 3,177 3,096 3,220 3,349 3,483 3,622 19,947 Street Maintenance 1,769 1,839 1,913 1,990 2,079 2,162 11,782 Dept. 20 Misc. 225 250 260 270 295 325 1,628 TOTAL EXPENDITURES 35,301 36,349 37,800 39,309 40,899 42,550 232,208 Notes: The estimates presented are preliminary, based on the 2004 Budget and actuals. All departments are limited to an increase at a 4.0% rate per year after 2004. Most of the increases will be related to salaries and benefits. Moderate COLAS are projected along with the normal annual step increases. The Rainy Day contingency and the estimated ending fund balances are not shown here as budgeted amounts because they are considered reserves to be used in emergencies. 2005 (Only) There is an additional $300,000 for this year, only, for the Tukwila Valley South Project. This is non-capital, only. Also, additional funding may be needed in 2006-2007 if the project is underway. Presumably there would be permitting revenues by that time. VI I 07/20/04 t CityofTukwila · . ............... ~ ~ 6200 Southcenter Boulevard · Tukwila, Washington 98188 Steven M. Mullet, Mayor To: Department Heads and City Council From: Mayor Mullet ~ Date: July 22, 2004 Re: 2005 Budget Schedule and Process The formal budget process is now underway and the proposed schedule for the 2005 budget process is attached. Your first draft will be a "hold the line budget". As is always the case, any significant additions or reorganizations will require prior approval by my office. New initiations will be discussed at departmental meetings scheduled August 10- 13. In addition to staffing needs, several issues will complicate our ability to maintain a 4% or lower growth rate: · The increase in the City's required share of contribution to employee pension plans; · Healthcare costs, which are currently growing at a rate three to four times that of inflation. The estimated increase in the General Fund obligation for pension costs will be approximately $1,250,000. General Fund medical costs are projected to increase by nearly $430,000. It is inevitable that service demands will create a constant conflict between shrinking revenues and rising expenses in this and future budgets. If revenues were declining due to the economy, our job would be much easier. Instead, we continue to be faced with revenue "take-aways" in the form of voter initiatives. These revenue decreases bear no relation to service demands and expense increases, such as pension and healthcare, over · which we have little or no control. Under these circumstances it becomes more important than ever to ensure that we establish the right strategies to balance new capital needs against operations and maintenance requirements. We should be prepared to begin discussing these issues at a budget retreat (date to be determined). Phone: 206-433-1800 · City Hall Fax: 206-433-1833 · www. cLtulcwila.wa, us City of Tukwila 2005 BUDGET PREPARATION SCHEDULE DATE Budget Worksheets sent to Departments by Finance - Includes Labor, 7/30 Benefits, Insurance, Debt, Equipment Rental and Other Fixed Costs Department Pre-Budget Meetings with Administration - New 8/10~ 13 Initiatives CIP due to Finance 8/16 Budget Worksheets due to Finance 8/20 Budget Narratives due to Finance / Mayor's Office 9/3 Summary of Submittals due to Mayor 8/31 Final Departmental meetings with Mayor's Office 9/13-16 Submittal to City Council 10/4 Public Hearing 11/22 Adoption 12/13 C:ALAN:2005BUDGETPREPARATIONSCHEDULE EeglslatlveBulletm Personnel {continued) Contribution Rate Projections As we have previously told you, LEOFF and PERS employer and employee The PERS rate will increase .01% (to contributions rates are expected to rise over the next number ofyesrs. The 1.41%) on September 1 2004, as a following chart shows the State Actuary's earlier projections for employer result of SHB 2538, which contribution rates. Although these numbers were estimates only, and will be establishes a minimum monthly revised this fall, they serve as a reminder to employers that the days of low benefit for PERS 1 members. As pension contribution rates are corning to an end. mentioned above, the LEOFF 2 Board is expected to adopt a .02% Projected Employer Contribution Rates increase effective September 1. Biennium PERS. LEOFF 1 LEOFF 2 2004. bringing the employer rate to 3.28%. 2003-2005 ........... 1.18% ............. 0.00% ............ 3.03% The LEOFF 2 Board will set 2005-2007 .......... 5.04% ............. 0.00% ............ 4.80% O O contribution rates for the 2005-07 2007-2009 ........... 7.02% ............. 6.00% ............ 5.60~ biennium at its meeting on September 22. The Pension Funding Note: these rates do not include the DRS expense rate, currently at .22% Council will adopt contribution rates In October's Legislative Bulletin, we will share with you the adopted for PERS by September 30 contribution rates that will be effective July 1, 2005, as well as the State (although the Legislature reserves Actuary's updated contribution rate projections for future years, ff available. the right to revise the rates recommended by the PFC). Need Ideas for Putting Your Budget Together? Then attend AWC's Budgeting and Fiscal Management Workshop Sis July or August.t July 29-30, 2004 Embassy Suites, Lynnwood August 19-~.0, ~.004 Enzian Inn, Leavenworth This workshop provides staff and elected officials focus on the basics of budgeting, hands-on exercises, and core processes and strategies for making the tough choices required in difficult economic times. City elected officials and staff are encouraged to attend sessions together. For more information, please see www. awcnet.org/budgeting. 10 AWC Interim Legislative Bulletin- July 15. 2004