HomeMy WebLinkAboutCOW 2010-11-22 Item 3A.3 - Public Hearing - Ordinance Amending 2009-2010 Biennium Budget COUNCIL AGENDA SYNOPSIS
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-ITEM INFORMATION
I CAS NUMBER: 10-132 IORIGINALAGENDADATE: NOVEMBER 22, 2010
Ac.I.;NDA ITEM TITLE An Ordinance amending the 2009 -2010 biennial budget.
C. \J'I:GORY Discussion motion Resolutzon Ordinance n BzdAward Public Hearing Other
Mtg Date 11/22/10 Mtg Date Mtg Date Mtg Date 12/6/10 Mtg Date Mtg Date 11/22/10 Mtg Date
SPONSO 1 1 Council Mayor Adm Svcs LI DCD Finance Fire 1 1 Legal 1 1 P&R n Police 1 1 PW
SPONSOR'S The City Council is being asked to an ordinance amending the 2009 -2010 budget
SUMMARY for unanticipated costs or projected departmental deficits for calendar year 2010.
This item is scheduled for Council consideration at the 11/22/10 C.O.W. and 12/06/10
Regular Council meeting.
RI?\' !1;W1 ?D BY COW Mtg. n CA &P Cmte F &S Cmte 1 1 Transportation Cmte
Utilities Cmte 1 1 Arts Comm. Parks Comm. n Planning Comm.
DATE: 11/16/2010
RECOMMENDATIONS:
SPONSOR /ADMIN. Finance
COMMITTEE Unanimous approval Forward to COW
COST`IMPACT. FUN® SOURCE
EYPI;NDITURI RJ?QUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$6,626,697 $0 $6,626,697
Fund Source: MISCELLANEOUS FUNDING SOURCES, SEE DETAIL.
Cornments:
1 MTG. DATE R R ®1= C QUNCIL A CTT ®N
I 11/22/10
12/06/10 i
MTG. DATE J ATTACHMENTS
11/22/10 Informational Memorandum dated 11/10/2010
i Draft Ordinance
City of Tukwila, 2010 Year -End Budget Amendment (spreadsheet)
i City of Tukwila, 2010 Year End Budget Errata (spreadsheet)
Minutes from the Finance Safety Committee Meeting of 11/16/10
12/06/10
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City f Tukwila
11th Y m
Jim Haggerton, Mayor
f
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Shawn Hunstock, Finance Director
DATE: November 10, 2010
SUBJECT: 2010 Year End Budget Amendment
ISSUE
Some departments within the General Fund, as well as some other funds in total, are
projected to be at risk of going over budget by the end of 2010. While the legally
adopted budget is only at the fund level, we typically reallocate money within the funds
to appropriate money to departments projected to be over budget by the end of the
year.
BACKGROUND
When the 2009 -2010 budget was adopted in December 2008, some items were not
anticipated at that time. As such, a budget amendment must be done before the end of
the biennium to appropriate money for these unforeseen items. Also, there are
circumstances where the amount budgeted back in December 2008 was not sufficient
to cover two years worth of activity for a given department or line -item.
The items outline below are those that should be addressed before the end of 2010 to
fully appropriate enough money to departments within the General Fund, as well as
increase funding in other funds for items that were not known when the 2009 -2010
budget was adopted.
DISCUSSION
General Fund
Two revenue line items are expected to be over budget by year end, and will thus pay
for the temporary budget increase needed to fund additional expenses in 2010. Property
tax revenue is estimated to be over budget by $393,000 by year end, and business
license revenue is estimated to be over budget by at least $32,000. A $9,000 grant was
also received by the Arts Commission, the use of which is included below as an
expense.
The Arts Commission received a $9,000 grant from 4Culture for curtains at the Foster
Performing Arts Center. As this was not originally budgeted for the Commission, a
budget amendment is necessary to fund the use of that money.
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INFORMATIONAL MEMO
Page 2
In the Finance Department, claims and judgment activity has been extremely high in
2010. Claims expenses, amounts paid below our deductible with WCIA, was $212,486
in 2009. Through October 2010, expenses to date are $412,886. Approximately ninety
five percent of the claims paid related to police activities. Also, the Finance department
purchased the EDEN Business License module, and related real -time cashiering
software, to implement the recently adopted Revenue Generating Regulatory License
fee. This fee, along with business licenses themselves, will be sold by the Finance
department beginning December 1 The cost of the two pieces of software, including
staff training, was approximately $40,000. Annual support costs for these two items are
already included in the 2011 -2012 proposed preliminary budget.
It is estimated that the Legal budget will need another $40,000 in temporary funding for
Special Matters conducted during 2010. The Special Matters are above and beyond the
typical general legal counsel and prosecutorial services provided by Kenyon Disend.
The one -time items typically involve special projects such as sign code changes,
reviewing development agreements, and consulting City staff on various other project
related tasks.
The budget for building abatement was incorrectly allocated 100% to 2009 in the 2009-
2010 biennial budget. The Department of Community Development is in need of funding
to cover costs incurred in 2010 related to building abatement in the amount of $35,000.
The Court budget is projected to be over spent by year end, with the majority of the
excess expenditures coming from the Public Defender line item. It is expected that
another $25,000 will be needed to fund this unusual increase in public defender costs
during 2010.
The Fire department is projected to be over budget by approximately $85,000, with the
majority of the variance coming from O &M expenses from the Public Works, Fleet
division. There were numerous incidents involving vehicles and apparatus during 2010,
and some incidents in 2009 that were paid for in 2010. Some of these costs were
reimbursed by either the City's insurance, or private insurance in the case of motor
vehicle accidents. Nevertheless, the cost of apparatus repair is charged to the Fire
department and additional funding is needed to cover the abnormally high charges from
Fleet.
The Parks Maintenance budget is projected to be over budget in the surface water fee
line item. These are fees that are paid to the City's surface water utility. The budget for
these fees has been corrected in the 2011 -2012 proposed preliminary budget, but
additional funding of $25,000 is needed for 2010 to cover the rate increase that
occurred this year.
Hotel /Motel Tax Fund 101
In the Hotel /Motel Tax fund, it is necessary to include in the budget amendment the
revenue coming from SeaTac for the cost of moving the visitor's center to SeaTac. This
is approximately $55,000. There was also money unspent in 2009 that staff needs
allocated to 2010 for web site work and vacation planners. The increase in professional
services is approximately $145,000 for both items.
3 8 W 12010 InfoMemos\BudgetAmendment.doc
INFORMATIONAL MEMO
Page 3
Arterial Street Fund 104
In the Arterial Street Fund, a bond issue occurred in 2010 for the Southcenter Parkway
realignment and construction project. While a majority of this money will be carried
forward to 2010 and beyond, it is necessary to budget for the revenue and start of
construction during 2010 when the bond sale occurred. The amount of the bond sale
allocated to the Southcenter Parkway project is $4,355,930.
Debt Service Fund 214 2010A LTGO Tax Exempt Bonds
Debt service on the tax exempt bonds issued in 2010 must be budgeted for to fund the
payment. That portion of the debt service allocated to the Southcenter Parkway project
will come from revenue generated within the project area, supplemented as necessary
from general revenue sources in the General Fund. The portion allocated to emergency
equipment related expenses will be funded by Transfers -In from the General Fund of
general revenue.
Debt Service Fund 215 2010B Build America Bonds
Debt service on the taxable Build America Bonds issued in 2010 must be budgeted for
to fund the payment. That portion of the debt service allocated to the Southcenter
Parkway project will come from revenue generated within the project area,
supplemented as necessary from general revenue sources in the General Fund. The
portion allocated to emergency equipment related expenses will be funded by
Transfers -In from the General Fund of general revenue.
General Government Improvements 303
In the General Government Improvements CIP fund, a bond issue occurred in 2010 for
the purchase of emergency preparedness and response equipment. While a majority of
this money will be carried forward to 2010 and beyond, it is necessary to budget for the
revenue and equipment purchases during 2010 when the bond sale occurred. The
amount of the bond sale allocated to emergency equipment purchases is $1,582,545.
RECOMMENDATION
The Finance and Safety Committee is being asked to approve the 2010 year end
budget amendment.
This item is scheduled for the November 16 Finance and Safety Committee meeting,
the November 22 Committee of the Whole and December 6th Regular Council
Meeting.
ATTACHMENTS
Draft Ordinance
2010 Year -End Budget Amendment (spreadsheet)
2010 Year End Budget Errata (spreadsheet)
W 12010 InfoMemos\Budget Amendment.doc 3 9
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2221, WHICH ADOPTED THE
CITY OF TUKWILA'S FIRST BIENNIAL BUDGET FOR THE 2009 -2010 BIENNIUM,
TO ADOPT AN AMENDED BIENNIAL BUDGET; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on December 15, 2008, Ordinance No. 2221 adopted the 2009 -2010 biennial
budget of the City of Tukwila, and
WHEREAS, a public hearing on the proposed 2010 year -end budget amendment was
advertised and held on November 22, 2010;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance Amended. Tukwila Ordinance No. 2221 is hereby amended with the
City Council's adoption of the document entitled "City of Tukwila 2010 Year -End Budget
Amendment," incorporated by this reference as if fully set forth herein, in accordance with
RCW 35A.34.200.
Section 2. Estimated Revenues and Appropriations. The totals of the estimated revenues
and appropriations for each separate fund and the aggregate totals are as follows:
FUND EXPENDITURES REVENUES
000 General $105,924,696 $105,924,696
101 Hotel /Motel Tax Fund $3,652,148 $3,652,148
104 Arterial Street $95,408,930 $95,408,930
214 LTGO Bonds 2010A $134,681 $134,681
215 LTGO Bonds 2010B $64,541 $64,541
303 General Gov Improvements $3,858,545 $3,858,545
Section 3. Copies on File. A complete copy of the final budget for 2009 -2010, as adopted,
together with a copy of this amending ordinance, shall be kept on file in the City Clerk's Office,
and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of
the Office of the State Auditor and to the Association of Washington Cities.
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 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 2010.
ATTEST/ AUTHENTICATED•
Jim Haggerton, Mayor
Christy O'Flaherty, CMC, City Clerk
Filed with the City Clerk:
APPROVED AS TO FORM BY: Passed by the City Council.
Published.
Effective Date:
Office of the City Attorney Ordinance Number
Attachment: City of Tukwila 2010 Year -end Budget Amendment
W. Word Processing Ordinances 2010 Budget Amendment
SHanrh 11/9/2010 Page 1 of 1
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City of Tukwila
2010 Year -End Budget Amendment
2009 -2010 Mid Biennium 2010 Year -End Final Adjusted
Adopted Budget Adjusted 2009- Budget 2009 -2010
Budget Adjustment 2010 Budget Amendment Budget
Fund
000 General 99,497,000 5,993,696 105,490,696 434,000 105,924,696
101 Hotel /Motel Tax 3,597,148 3,597,148 55,000 3,652,148
103 City Street 877,000 877,000 877,000
104 Arterial Street 91,553,000 (500,000) 91,053,000 4,355,930 95,408,930
105 Contingency 892,187 892,187 892,187
107 Fire Equipment Cumulative Reserve 767,797 767,797 767,797
207 Limited Tax G.O Bonds, 1999 1,886,000 1,886,000 1,886,000
208 Limited Tax G.O Bonds, 2000 735,000 735,000 735,000
209 Limited Tax G.O Bonds, 2003 1,531,000 1,531,000 1,531,000
210 Limited Tax G.O. Refunding Bonds, 2003 1,233,000 1,233,000 1,233,000
211 Limited Tax G.O Refunding Bonds, 2008 96,000 96,000 96,000
214 Limited Tax G.O Refunding Bonds, 2010A 134,681 134,681
215 Limited Tax G.O Refunding Bonds, 2010B 64,541 64,541
301 Land Acquisition, Recreation Park Development 11,272,000 11,272,000 11,272,000
302 Facility Replacement 7,939,000 287,712 8,226,712 8,226,712
303 General Government Improvements 2,276,000 2,276,000 1,582,545 3,858,545
401 Water 15,151,301 15,151,301 15,151,301
402 Sewer 15,862,365 15,862,365 15,862,365
404 Water /Sewer Revenue Bonds 1,241,435 1,241,435 1,241,435
405 Bond Reserve 411,000 411,000 411,000
411 Foster Golf Course 5,137,534 5,137,534 5,137,534
412 Surface Water 11,984,134 11,984,134 11,984,134
501 Equipment Rental 10,324,969 10,324,969 10,324,969
502 Insurance Fund 13,155,217 13,155,217 13,155,217
503 Insurance LEOFF 1 Fund 2,282,562 2,282,562 2,282,562
611 Firemen's Pension 1,578,000 1,578,000 1,578,000
Total 302,417,649 5,877,408 307,062,057 6,626,697 313,688,754
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City of Tukwila
2010 Year End Budget Errata
General Fund 000
Revenue:
Real and Personal Property Tax 000.311.100.00.00 393,000
Business Licenses 000.321.900.00.00 32,000
Cultural Development Authority -Arts Comm 000.337.072.04.00 9,000
Total Revenue 434,000
Expenditures:
Arts Commission
Foster PAC Curtains 000.03.573.900.48.00 9,000
Finance
Claims and Judgements 000.05.514.230.49.03 175,000
EDEN Business License Module 000.05.594.230.64.00 40,000
City Attorney
Special Matters 000.06.515.200.41.03 40,000
Community Development
Building Abatement Program 000.08.559.600.49.02 35,000
Court
Public Defender 000 09.512.500.41.02 25,000
Fire Department
Equipment Rental O &M 000.11.522.200.45.95 85,000
Parks Maintenance
SSWM Charges 000.15.576.800.47 01 25,000
Total Expenditures 434,000
Fund Total
Hotel /Motel Tax Fund 101
Revenue.
SeaTac Community Services (100 101.338.573.01.00 55,000
Total Revenue 55,000
Expenditures:
Media Buy Special Projects 101 00.557.301.44.12 75,000
Media Buy Magazines /Brochures 101.00.557.301.44.15 70,000
Page 1
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City of Tukwila
2010 Year End Budget Errata
Est Ending Unreserved Fund Balance 291 840 00 (90,000)
Total Expenditures 55,000
Fund Total
Arterial Street Fund 104
Revenue.
Bond Proceeds 104.391 102 00.00 4,355,930
Total Revenue 4,355,930
Expenditures:
Southcenter Parkway Construction 104 97.595.800 4,355,930
Total Expenditures 4,355,930
Fund Total.
2010A LTGO Bond Fund 214
Revenue
Sales and Use Tax 214.313.100 00 00 134,681
Total Revenue 134,681
Expenditures:
Debt Service Costs 214.00.59 *.950.8* 134,681
Total Expenditures 134,681
Fund Total.
2010B LTGO Bond Fund 215
Revenue.
Sales and Use Tax 215 313.100.00.00 41,951
IRS Interest Cost Subsidy 215.332.210.20 00 22,590
Total Revenue 64,541
Expenditures.
Debt Service Costs 215.00 59* 950 8 64,541
Page 2
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City of Tukwila
2010 Year End Budget Errata
Total Expenditures 64,541
Fund Total:
General Government Improvements 303
Revenue:
Bond Proceeds 303 391.102.00.00 1,582,545
Total Revenue 1,582,545
Expenditures:
Emergency Response Equipment 303 97.594.190.**.** 1,582,545
Total Expenditures 1,582,545
Fund Total.
Page 3
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Finance Safety Committee Minutes November 16, 2010 Page 2
Today's assessed value represents a decrease of 2.9% compared to last year, and staff is recommending
levying a full 1% increase to property taxes due to a negative Implicit Price Deflator. In order to levy the
full 1 Council will need to pass a resolution declaring a finding of substantial need relating to the
property tax levy. A public hearing is scheduled for November 22, 2010. UNANIMOUS APPROVAL.
FORWARD TO NOVEMBER 22 COW FOR PUBLIC HEARING AND DISCUSSION.
C. Legislation Reg arding Budget CIP
Staff is seeking Council approval of an ordinance amending the 2010 Budget; an ordinance adopting the
2011 -12 Biennial Budget; and a resolution adopting the 2011 -16 Capital Improvement. Each item is
discussed in more detail below.
Ordinance Amending the 2010 Budget
As required by the Revised Code of Washington, staff is seeking Council approval of an ordinance
amending the 2010 Budget. The amendment includes many items that have been discussed and
N addressed throughout the year.
Both the property taxes and business license revenue line items are over budget by slightly more than
$400,000 total. This coverage will help fund additional expenses outlined in the budget amendment.
The items, explained in detail in the Informational Memo included in the November 22 Finance
Safety Committee agenda packet, include:
Project deficits in Finance, Legal, Community Development, Court, Fire, and Parks
Maintenance
Bond Revenue for Southcenter Parkway and Emergency Response Equipment
Debt Service on tax exempt bonds issued
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION.
Ordinance Adopting the 2011 -12 Biennial Budget
Staff is seeking Council approval of an ordinance adopting the 2011 -12 Biennial Budget. Shawn
Hunstock reported that the City will be adopting two single year budgets rather than one 24 -month
budget. This makes the process of adjustments, amendments and forecast much more efficient. As the
City Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -16 COP,
there was minimal discussion on the draft ordinance which adopts the budget. UNANIMOUS
APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION.
A Resolution Adopting the 2011 -2016 CIP
Staff is seeking full Council approval of a resolution adopting the 2011 -2016 CIP. As the City
Council has been conducting ongoing review of the 2011 -12 Biennial Budget 2011 -2016 CIP,
there was minimal discussion on the draft resolution which adopts the 2011 -2016 CIP.
UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 22 COW FOR DISCUSSION.
D. City Investments
As per City policy, staff provided the quarterly update to the Committee regarding City investment
reports. Report details begin on page 37 of the Committee agenda packet and demonstrate what the City
currently has in its portfolio.
Peggy McCarthy also briefed the Committee on an investment policy for the City which was last seen by
the Committee on June 22, 2010. At that meeting, staff reported that the City's revised investment policy
was submitted to the Washington Municipal Treasurers Association (WMTA) for certification and they
were awaiting return of the policy prior to coming forward to Committee for approval. Staff has not yet
heard from WMTA and is requesting Committee approve the policy in the meantime in order to begin
policy implementation.
The draft policy remains the same as it was in June with the exception of Section 11.1: Maturities, which
will now call for a minimum of 30% of the of the City's portfolio to be comprised of investments 47
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