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HomeMy WebLinkAboutCOW 2003-12-08 Item 4B - Ordinance - 2003 Budget AmendmentsCAS Number: 03-160 Timeline: Sponsor's Summary Meeting Date 12/8/03 COUNCIL AGENDA SYNOPSIS Meeting Date Prepared by 12/8/03 ARD Initials I Mayor's review I Council review I _(s-? C. I I I I 1 1 Original Agenda Date: 12/8/03 1 Agenda Item Tide: 2003 Proposed Budget Amendments Original Sponsor: Council Admin. X Approve at Regular December 15, 2003 meeting. Attached are four additional budget amendments to match the revised budget with actual activity. Recommendations: Sponsor: Approve as submitted Committee: Finance Safety Committee on December 1, 2003 Send forward Administration: Same as sponsor Cost Impact (if known): See attached Ordinance Fund Source (if known): See attached Ordinance Action Meeting Date Attackments 12/8/03 Staff report dated December 3, 2003 Proposed 2003 Budget Amendment Ordinance Finance Safety Committee meeting minutes dated December 1, 2003 ITEM No. \c) To: Mayor and Finance Safety Committee From: Alan R. Doerschel C{ itq 3 Date: December 3, 2003 Subject: Remaining 2003 Budget Adjustments There are four additional 2003 Budget adjustments we must make before year -end. Hotel /Motel Tax Fund 101 These changes are necessary to facilitate the loans from General and Arterial Street to Hotel /Motel Tax Fund and to pay off the Key Bank loan. "Housekeeping' Valley Narcotics Enforcement Team 102 These changes are necessary because we understated the amount to pay the participating agencies for their direct personnel contributions. State and Federal Seizure Funds pay these costs. Equipment Rental 501 Due to damaged vehicles that need to be replaced immediately, we are increasing the vehicle replacement amount by $60,000 for 2003. One vehicle was carried over from 2002. The funding is available from the Ending Working Capital (depreciation collected). Note: This item was added after the December 1, 2003 Finance and Safety Committee meeting. Insurance Fund 502 Both revenues and expenditures will exceed original budgets and must be increased. DD1CXY AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING THE 2003 BUDGET ADOPTED BY ORDINANCE NO. 2008 AND AMENDED BY ORDINANCE NOS. 2022 AND 2032, PROVIDING FOR UNANTICIPATED REVENUES AND EXPENDITURES IN THE HOTEL/MOTEL TAX, VALLEY NARCOTICS ENFORCEMENT TEAM (VNET), EQUIPMENT RENTAL, AND INSURANCE FUNDS, PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City finds it necessary to budget for loans made to the Hotel /Motel Tax Fund by the General and Arterial Street Funds; and make payment to Key Bank upon expiration of loan; and WHEREAS, the Valley Narcotics Enforcement Team (VNET) Fund received increased revenues from state and federal sources, which were used to repay VNET cities for personnel contributions; and WHEREAS, both revenues and expenditures must be increased or changed to reflect actual activity for 2003 in the Equipment Rental and Insurance Funds; NOW, THEREFORE, THE CITY COUNCIL OF THE QTY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The following program categories in the 2003 budget as adopted by Ordinance No. 2008 and amended by Ordinance Nos. 2022 and 2032, are hereby amended to read as follows: HOTEL /MOTEL TAX FUND --101 Revenues: Loans Received 381 100 00 $1350,00Q Loans from General and Arterial Street Funds Expenditures: Anticipation Notes /Warrants 591 950 70 $1,450,000 Estimated Ending Unres. Fund Balance 291 840 00 (100.000) Total Expenditures $1350,000 VALLEY NARCOTICS ENFORCEMENT TEAM (VNET) FUND —102 Revenues: Seized Assets State 369 301 $60,000 Seized Assets Federal 369 302 40 000 Total Revenues 1100.000 Expenditures: Cities Professional Services 521 210 50 %1on. EQUIPMENT RENTAL FUND 501 -02 Expenditures: Machinery Equipment 594 480 60 $60,000 Estimated Ending Working Capital 293 800 00 (60,0001 Net Change Q n INSURANCE FUND 502 Revenues: Trust Contributions Employer 366 500 00 $400.000 Expenditures: Self Insured Medical Dental 512 370 20 0�4 0.000 Budget Amendment 2003 22/5/03 1 Section 2. Ordinance No. 2008, as amended by Ordinance Nos 2022 and 2032, is hereby amended by revising the summary of totals of estimated revenues and appropriations and the aggregate total to reflect the foregoing increases in revenues and appropriations as set forth in Section 1 of this ordinance. Section 3. The Finance Director is hereby authorized and instructed to effectuate the necessary changes in the 2003 budget, and to make all necessary and appropriate line item entries and adjustments in order to reflect the increases to revenues and appropriations as set forth in this ordinance. Section 4. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 5. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five (5) days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2003. ATTEST /AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Steven M. Mullet Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Budget Amendment 200312/5/03 2 Finance and Safety Committee December 1, 2003 Present: Joe Duffle, Chair; Jim Haggerton, Richard Simpson Alan Doerschel, Rhonda Berry, Lucy Lauterbach 1. Resolution for Sales Tax Sourcing Alan explained the negotiations that have been ongoing since summer. He said the City wants to support the general concept of streamlined sales, but at the same time wants the bill to hold cities harmless for losing funds, and to not implement the legislation until internet and catalog sales are close to being implemented. Jim commented he thought the resolution could be more specifically tailored to Tukwila, but Alan said the group working the legislature on this didn't want to single out cities like Tukwila, since everyone who doesn't live or work here thinks Tukwila is rich. Alan said the core group of cities working on this issue include Kent, Puyallup and Redmond. There are probably about 15 -17 cities that would lose money on streamlined sales taxes. Alan has been in touch with a staff member of the Senate Ways and Means Committee. Several cities are passing resolutions similar to the one Alan proposed. Alan has talked to all the businesses in town that would be affected by the legislation, and all but one said they would support the city's position and would be glad to sign letters on the city's behalf. The strategy that will be used in the governor's office next week has not been solidified, as everyone seems to be working on a slightly different tack. The state has estimated Tukwila could lose $1.7 million per year, though Alan thinks that number may be a little high. The committee recommended the resolution to that evening's meeting. Recommend resolution. 2.2003 Budget Adiustments The 2003 Budget that was adopted last December has been modified in two ordinances thus far this year, and one more adjustment needs to be made. Two changes are housekeeping in nature, and one is due to health insurance costs for employees. The first adjustment is to charge the general fund and arterial street fund with a loan that was needed by the Lodging Tax Advisory Board to pay off their bank loan for the property near I -405. That action was approved in a resolution earlier this year, but the budget was never changed. A second housekeeping change was funding received from the state and federal government for VNET. Those funds must be received then returned to the cities that are in VNET. The last change was to cover some departments who had higher than budgeted expenses for non -rep medical and dental costs. Recommend Ordinance to Dec 8 COW. 3. Draft 2004 Budget Changes Alan has some changes to the 2004 budget. These have to do with some carryovers and revenue changes. The City's Beginning Fund Unreserved balance will be changed to $847,000. Both property and sales taxes have been a little better than expected, so will be adjusted. Pool revenues and traffic fines were both over estimated, and will be reduced. The probation being done in the Court will bring in more revenues, to be partly offset by making the probation officer full time rather than half time as she now is. Carryovers in the Arts Commission and in Police car cameras, plus Police medical costs, "buy" money for detectives, and non -rep Public Works salaries will all be adjusted. Carryovers needed for Public Works projects won't be known until the last minute. Recommend budget ordinance to Dec 8 meeting.