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Home My WebLink AboutCOW 2010-11-22 Item 4A.1 - Ordinance - 2011-2012 Biennium Budget COUNCIL AGENDA SYNOPSIS r rs 41LA' h Inzttals ITEM NO. P. y Meetuz� Date Prepared by M o revzezv review I I G1 11/22/10 I SH 1 1 AR 1 (1, a 1 12/06/10 1 SH 1 Li S I ci 1 JTEM' INFORI!lMATION CAS NUMBER: 10-131 I ORIGINAL AGENDA DATE: NOVEMBER 22, 2010 AG I NDA ITEM An Ordinance adopting the 2011 -2012 biennial budget, and a resolution adopting the 2011 -2016 capital improvement plan. C. GORY Discussion 1 1 Motion ®Resolutzon Ordinance n Bid Award Public Heanng I Other Mtg Date 11/22/10 Mtg Date Mtg Date 12/6/10 Mtg Date 12/6/10 Mtg Date Mtg Date 11/22/10 Mtg Date (SPONSOR 11 Council Mayor 1 1 Adm Svcs DCD ®Fznance Fire 1 Legal P&R Police PW/ SPONSOR'S City Council is being asked to approve an ordinance adopting the 2011 -2012 biennial SU V1MARY budget, and a resolution adopting the 2011 -2016 Capital Improvement Plan. These items are scheduled for Council consideration at the 11/22/10 C.O.W. and 12/06/10 Regular Council meeting. RA W11 WID BY COW Mtg n CA &P Cmte F &S Cmte 1 1 Transportation Cmte U Utilities Cmte 1 1 Arts Comm. 1 1 Parks Comm. 1 1 Planning Comm. DATE. 11/16/2010 RECOMMENDATIONS: SPONSOR /ADMIN. Finance /Public Works COMMITTEE Unanimous approval Forward to COW COST IMPACT FUND- SOURCE EXPI NDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $284,108,685 $0 $284,108,685 Fund Source: MISCELLANEOUS FUNDING SOURCES, SEE DETAIL. Comments: MTG. DATE R E C O RD; Ofa C AC 11/22/10 12/06/10 MTG. DATE ATTACHMENTS 11/22/10 Informational Memorandum dated 11/18/2010 (revised after FS meeting) Draft Ordinance Draft Resolution City of Tukwila, 2011 -2012 Biennial Budget Changes (spreadsheet) Minutes from the Finance Safety Committee Meeting of 11/16/10 12/06/10 1 2 City of Tukwila Jim Haggerton, Mayor rya 9os= INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: November 18, 2010 (Revised after Finance and Safety Committee) SUBJECT: 2011 -2012 Biennial Budget Ordinance 2011 -2016 Financial Planning Model Capital Improvement Program ISSUE Council must adopt the 2011 -2012 biennial budget and 2011 -2016 Capital Improvement Plan by the end of December. This typically happens with the first Regular meeting in December. BACKGROUND The proposed preliminary budget for 2011 -2012 and draft 2011 -2016 CIP were presented to Council on October 4, 2010. Since that time, there have been a number of meetings to discuss items within the budget and CIP, as well as detailed review by all Council committees during the month of October. Council also held a special budget workshop on October 19, 2010. DISCUSSION The proposed 2011 -2012 biennial budget reflects the adjustments presented to Council as part of the City's "three- legged stool" approach to dealing with the current financial crisis. Program and service reductions have been included in the relevant departments, as well as related revenue increases. New revenue sources were adopted by Council, including the Revenue Generating Regulatory License fee. Also, steps were taken to address the cost of employee compensation. The final budget document will include a savings of approximately $1.2 million per year in contributions to the City's self insurance fund. The attached "Summary of Proposed Revisions to Preliminary Budget" provides a high level summary of proposed changes since the Preliminary Budget was presented in early October. This matrix tracks where we are with regard to meeting our "three- legged stool" targets for increased revenue, program reductions and cost of compensation. Overall budget savings have increased by just over $200,000 compared to the October Preliminary Budget. A more detailed listing of changes to the October Preliminary Budget is also attached, and will be reviewed at the November 22 Committee of the 3 INFORMATIONAL MEMO Page 2 Whole meeting. These changes will include, among other items, any agreed to COLA reductions from represented and non represented employees. RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2011 -2012 biennail budget ordinance and the 2011 -2016 Financial Planning Model and Capital Improvement Plan resolution and forward to the Committee of the Whole. This item is scheduled for the November 16 Finance and Safety Committee meeting, the November 22 Committee of the Whole meeting, and the December 6 Regular Council meeting. ATTACHMENTS Summary of Proposed Revisions to Preliminary Budget Draft Budget Ordinance Draft CIP Resolution City of Tukwila, 2011 -2012 Biennial Budget Changes (spreadsheet) 4 W12010 InfoMemos\Biennial Budget OrdinanceSJL.doc SUMMARY OF PROPOSED REVISIONS TO PRELIMINARY BUDGET 22- Nov -10 TARGET PRELIMINARY REVISED( CHANGE FROM BUDGET PROPOSAL PRELIMINARY BUDGET INCREASED REVENUE 3,400,000 3,000,000 3,000,000 PROGRAM REDUCTIONS 2,200,000 3,809,851 3,410,866 Boards and Commissions 27,450 27,450 City Council 5,000 10,000 Travel budget reduced. $5,000 (10- 19 -10) Mayor's Office 339,400 339,400 DCD 475,810 468,787 Code Enf admin supt restored (11- 15 -10) Eliminate graphics /mapping retain $18K Municipal Court 66,631 66,631 Human Services 45,800 30,000 Contingency fund restored (11- 15 -10) Information Technology 186,500 114,500 Hazelnut restored 3X per year (11- 15 -10) Public Works 605,050 605,050 Parks and Recreation 744,500 744,500 Foster Golf Course 62,000 62,000 Police Department 502,600 502,600 Fire Department 534,909 225,747 3 firefighter positions restored (11 -8 -10) Tukwila Pool 100,000 100,000 Human Resources Department 28,000 28,000 Finance Department 86,201 86,201 COST OF COMPENSATION 3,400,000 1,000,000 1,617,222 Reduced contribution to health fund 1,000,000 1,225,000 Based on R.L. Evans recommendation Firefighters wage freeze 212,736 Based on Memorandum of Agreement Non -rep employees wage freeze 179,486 Proposed TOTAL NEW REVENUE COST SAVINGS 9,000,000 7,809,851 8,028,088 cn 6 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING THE ANNUAL BUDGET OF THE CITY OF TUKWILA FOR THE 2011 -2012 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the preliminary budget of the City of Tukwila for the 2011 -2012 biennium was submitted to the City Council in a timely manner for their review; and WHEREAS, a Public Hearing on the proposed budget was advertised and held on November 22, 2010; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The City Council hereby adopts the document entitled "City of Tukwila 2011- 2012 Budget," incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.33.075. Section 2. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: 2011 2012 Total Biennium Revenue Revenue Revenues Fund Expenditures Expenditures Expenditures 000 General 57,280,014 57,220,972 114,500,986 101 Hotel /Motel 2,049,961 1,708,072 3,758,033 103 City Street 731,000 804,171 1,535,171 104 Arterial Street 38,790,139 10,396,127 49,186,266 105 Contingency 1,293,816 2,595,632 3,889,448 107 Fire Equipment Cumulative Reserve 771,685 901,356 1,673,041 109 Drug Seizure Fund 406,000 208,000 614,000 209 Limited Tax G.O. Bonds 2003 592,572 594,350 1,186,922 210 Limited Tax G.O. Refunding Bonds, 2003 501,932 500,893 1,002,825 211 Limited Tax G.O. Refunding Bonds, 2008 836,829 831,042 1,667,871 212 Limited Tax G.O. Bonds, 2009A 30,166 30,184 60,350 213 Limited Tax G.0 Bonds, 2009B 254,438 254,605 509,043 214 Limited Tax G.O. Bonds, 2010A 395,775 393,975 789,750 215 Limited Tax G.O. Bonds, 2010B 190,450 190,450 380,900 216 Limited Tax G.O. Refunding Bonds, ValleyComm 170,990 232,910 403,900 301 Land Acquisition, Recreation Park Devl. 5,096,243 4,695,772 9,792,015 302 Facility Replacement 2,005,756 1,886,121 3,891,877 303 General Government Improvements 2,657,203 1,000,906 3,658,109 304 Fire Improvements 190,100 240,200 430,300 401 Water 10,271,534 7,141,899 17,413,433 402 Sewer 9,121,426 6,681,200 15,802,626 404 Water /Sewer Revenue Bonds 651,637 671,185 1,322,822 405 Bond Reserve 411,000 411,000 822,000 411 Foster Golf Course 2,337,200 1,968,078 4,305,278 412 Surface Water 5,214,886 4,652,663 9,867,549 501 Equipment Rental 5,642,740 5,776,155 11,418,895 502 Insurance Fund 8,687,561 8,876,388 17,563,949 503 Insurance LEOFF 1 Fund 1,929,040 1,825,846 3,754,886 611 Firemen's Pension 1,503,872 1,491,744 2,995,616 Total All Funds Combined 160,015,965 124,181,896 284,197,861 W. \Word Processing Ordinances \DRAFT Budget Ordinance 2011- 2012.doc SH:nvh Page 1 of 2 7 Section 3. A complete copy of the final budget for 2011 -2012, as adopted, together with a copy of this adopting 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 hall 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, 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. N Word Processing Ordinances \DRAFT Budget Ordinance 2011- 2012.doc Page 2 of 2 8 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 Regarding 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 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 CIP, 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 CEP, 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 investments3 3 34