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Home My WebLink AboutSpecial 2012-09-19 Powerpoint - Budget WorkshopCity of Tukwila September 19, 2012 Agenda Financial Status Overview • Economic statistics and overview • City-wide Financial highlights ■ Year-to-date through June 30, 2012 ■ Updates thru August 31, 2012 • General Fund estimated 2012 results Budget Direction • Theme • Considerations • Formation Reserve Policy 2013-2014 Biennial Budget Workshop 2 • 1.111111111M._ Economic Stats and Overview Projections suggest slow economic recovery and improvement through 2014 Statewide Economic indicators Unemployment Seattle CPI Change in personal income Change in disposable personal income Change in Manufacturing Change in Construction National & Global issues: • State cuts • Federal income tax cuts set to expire • National fiscal issues • Impacts from European and Asian markets 2011 2012 2013 9.2 8.4 8.1 7.7 2.7 2.7 2.5 2.4 5.2 4.7 4.7 5.8 3.9 4.3 3.7 5.4 4.1 4.6 3.0 1.7 -2.4 1.2 3.4 6.1 (data from WA State Economic Forecast Council) 2013-2014 Biennial Budget Workshop 3 Total Revenue Total Expenditures General Fund Annual Budget 02 Actual Y -T -D $53,317,041 $26,336,518 49.40% 56, 443, 451 24, 383, 696 43.20% Difference (Change in Fund Bal) $ (3,126,410) $ 1,952,822 Beginning Fund Balance Ending Fund Balance $ 5,912,116 $ 2,785,706 $ 5,912,116 $ 7,864,938 • 02 does not include all transfers to Reserve and other funds • Revenues on track for 2nd quarter • Expenditures under 50% in all major categories 2013-2014 Biennial Budget Workshop 4 Transfers Out of General Fund Dept 20, Transfers -out (in Thousands $) Fund # Fund Name Budget 2nd Qtr 3rd Qtr BalanceA 103 Residential Streets $ 220 $ - $ 220 $ - 104 Arterial Streeet 2,000 - 2,000 - 105 Res a rveB 3,000 - - 3,000 107 Fire Equipment Rsv 130 - 130 - 109 Drug Seizure 75 - 75 - 2** Debt Service 3,309 2,893 416 - 303 Genii Govt Imprvrnentsc 1,300 - 500 800 401 Water Fund 106 49 57 - 411 Golf Course Fund 225 113 112 - - MPD 725 225 500 - TOTAL $ 11,090 $ 3, 280 $ 4,010 $ 3,800 A Balance remaining is in excess of estimated transfers B Funds will be transferred to Reserve, if 2012 year-end is more favorable than currently projected C Transfer not needed due to additional funding from King County Flood Control District (Hesco) 2013-2014 Biennial Budget Workshop 5 • Enterprise Funds 02 Ending Beginning Fund Fund Bal Revenue Expenses Balance Water $6,043,694 $2,265,383 $2,651,894 $5, 657,183 Sewer 1,890,166 3,103,127 2,896,495 2,096,798 Surface Water 2,151,147 1,898,334 1,250,077 2,799,404 Golf Course 140,550 749,825 684,692 205,683 August Ending Fund Bal $ 5,654,443 2,180, 842 3,849,195 435,718 • Seasonal fluctuations, but are on target for budget at end of August • Fund balance up in all funds except Water • Golf Course - debt service and indirect costs allocations removed in 2012 per Council direction 2013-2014 Biennial Budget Workshop 6 • Internal Service Funds Beginning 02 Ending Fund Fund Balance Revenue Expenses Balance Equipment Rental $ 3,523,993 $1,181,539 $ 902,934 $3,802,598 Insurance 4,983,480 2,262,381 2,235,739 5,010,123 LE O FF 1 Ins 1, 628, 986 237,851 155,990 11710,848 Internal Service Fund Highlights: • Revenues exceed expenses in all internal service funds 2013-2014 Biennial Budget Workshop 7 Other Hiqhliqhts • Purchased 2nd half of Duwamish Hill Preserve • Received $250,000 grant from King County for Duwamish Hill Preserve • Contract signed to remove sandbags along Green River • Southcenter Parkway project expected completion 3rd quarter • Strategic Plan nearing completion • REET in Fund 301 at $354K as of August. Budget is $1 OOK • One-time sale of property for $07M 2013-2014 Biennial Budget Workshop 8 2012 Estimate -General Fund Revenues General Fund Total Revenues & Transfers Percent Change 2011 2012 2012 2012 Est 2012 Est Actual Budget Estimate 2011 Act 2012 Bdgt $ 50.1M $53.3M $50.4M 0.55% -5.44% • Projections based on actuals through August and projections for last 4 months • RGRL, utility taxes, excise tax — down by $1.3M from adopted • Other financing/surplus property — one-time $1 .3M, moved to future years • Building permits and plan check fees down $300K 2013-2014 Biennial Budget Workshop 9 ■ 1111111 2012 Estimate -General Fund Expenditures Percent Change 2010 2011 2012 2012 2012 Est 2012 Est Program Actual Actual Budget Estimate 2011 Act 2012 Bdqt General Fund $44.6M $42.9M $44.8M $43.1M 0.49% -3.72% Department 20 .3M 7.1M 11.6M 7.9M 11.66% -32.27% Total $44,9 $50.0M $56.4M $51.011!1 2.07% -9.61% • Expenditures estimate is based on budget used through September 14 • All department spending Less than budgeted due to operating efficiencies • Retro salaries have been paid • City undertook Strategic Plan • Police Department: Neighborhood Resource Center and bike patrols 2013-2014 Biennia! Budget Workshop 10 Budget Themes • Financial Sustainability • Status Quo, stay the course • Begin implementation of priorities as identified through Strategic Planning process ■ Supporting nuisance ordinance, code enforcement Considerations • Facilities Plan • Equipment Replacement and Rental Fund • One -Time Changes Budget Formation • Department Instructions • Expenditures & Revenues • Sample Budget Document 2013-2014 Biennial Budget Workshop 11 Faciiities Plan Safety Improvements Needed • City Hall, 6300 Building, Shops, Fire Stations, Tukwila Community Center Replacement more cost effective than rehabilitation Improving Facilities • Reduce energy, operating, and maintenance costs • More efficient work environment Facilities Plan Presentation • Finance & Safety Committee on October 2 2013-2014 Biennial Budget Workshop 12 Equipment Rental & Replacement Fund Create a financially sustainable plan that: • Accounts for full replacement cost • Reduced fleet through surplusing • Included all equipment on replacement schedule 2013-2014 Biennial Budget Workshop 13 • Budget Formation Department Instructions/Message: Financial Sustainability • Starting budget = 2012 budget • AD capital items must be specifically requested • No additional unfunded FTE's • Cost increases outside department control approved as "non - discretionary costs" • Budget increases other than for non -discretionary or revenue backed must be approved by the Administration 2013-2014 Biennial Budget Workshop 14 Budget Formation - Continued Expenditures • Indirect Cost Allocation Update • Position budgeting to estimate salaries and benefits Revenue considerations • Reduction in state shared revenues • MPD operating loan payback • Historical performance combined with economic environment • One-time changes • Tukwila Village land sale • LID cost reimbursement ■ Self -Insured Health Fund • Impact of possible annexation 2013-2014 Biennial Budget Workshop 15 • SAMPLE Budget Document FINANCE -- Expenditure & Revenue Summary EXPENDITURES 2010 ACTUAL 2011 ACTUAL 2012 BUDGET 2013 BUDGET _ 2014 BUDGET 2012-13 % change 2013-14 % change 10 Salaries & Wages $ 951,010 $ 941,358 $ 989,836 $1,008,041 $1,045,103 1.84% 3.68% 355, 8.41% 4.90% 20 Personnel Benefits 377,339 321,938 369,680 338,582 1 19,2' ' 5% 0.00% 30 Supplies 48,387 9,497 ,84 9 865,468 299.25% 1.41% 783,1 63 ' ,468 40 Other Services & Charges - 0.00% 0.00% 50 Intergovt. Services & Taxes - 5 - - - -100.00% 0.00% 60 Capital Outlays 23,186 10,321 5,000 -- EXPENDITURE TOTAL 2,183,069 1,446,736 1,603,133 2,219,387 2,285,027 38.44% 2.96% REVENUE General Fund 2,183,069 1,446,736 1,603,133 2,219,387 2,285,027 38.44% 2.96% REVENUE TOTAL $ 2,183,069 $ 1,446,736 $ 1,603,133 $ 2,219,387 $ 2,285,027 38.44% 2.96% 2013-2014 Biennial Budget Workshop 16 SAMPLE Budget Document FINANCE -- Salaries & Benefits Position Descripton 2012 FTE 2013 FTE 2013 Budgeted Salaries Benefits 2014 FTE 2014 Budgeted Salaries Benefits Finance Director 1 1 $ 129,926 $ 35,057 1 $ 14 1 14 $ 37,652 Deputy Finance Director 1 1 99,096 34,962 M 1 72 36,512 Senior Fiscal Coordinator 1 1 100,032 ,:68 35,159 Fiscal Coordinator 3 3 2 ` 2 90,992 Fiscal Specialist 5 5 31 ' * 5 328,909 132,827 Fiscal Support Technician 2 6 - 1, 08 1 57,864 22,018 Extra Labor 1,000 - 10,000 - Overtime 10,000 - 10,000 - Department Total I 13 12 $1,008,041 $ 338,582 12 $1,045,103 $ 355,160 2013-2014 Biennial Budget Workshop 17 • SAMPLE Budget Document FINANCE -- Budget Changes 2013-2014 Biennial Budget Workshop 18 2012 Budget Non Discre- tionary Discre- tionary Initia-1 fives Revenue Backed 4 Trans- fers 2013 Budget 10 -Salaries 20 -Benefits 30 -Su p p l i es 40 -Prof Sery 60 -Ca pita I $ 989,836 $ 9,352 $ 8,853: $ - g '• ,008,041 369,680 (31,098) 338,582 24,849 N5 - - 19,296 213,768 5 , ` - 643,000 853,468 5,000 - - - - Tota I $ 1,603,133 $ (26,746) $ - 1 $ - $ - $ 643,000 $ 2,219,387 2013-2014 Biennial Budget Workshop 18 SAMPLE Budget Document FINANCE -- Budget Changes 2013-2014 Biennial Budget Workshop 19 2013 Budget Non Discre- tionary Discre- tionary Initia- Revenue' tives Backed Trans- fers 2014 Budget 10 -Sal a ri es 20 -Benefits 30 -Supplies 40 -Prof Sery 50-i ntergov 60 -Ca pita l $ 1,008,041 $ 37,062 $ - $ - $ - 1,045,103 338,582 16,578 - - I 355,160 19,296 - - - 19,296 853,468, - - 865,468 - - - - - - - - - - Total $ 2,219,387 $ 65,640 $ - $ - $ - $ - $ 2,285,027 2013-2014 Biennial Budget Workshop 19 Definitions for Budget Changes Non -Discretionary • Salaries & benefits, interlocal agreements, utilities Discretionary • Movement of budget among budget lines at the discretion of departments •Equipment replacement, operating & maintenance costs Initiatives • Neighborhood Resource Center, equipment for COPS, technology, community outreach, compensation study Revenue backed budget additions • Grant funded expenditures, costs associated with annexations, fee for services Transfers among departments and funds • Moving Sister Cities from Mayor to Recreation, Special Events • Fire equipment funding from Fund 107 to Fund 501 2013-2014 Biennial Budget Workshop 20 ■r Reserve Policy General Fund Reserve Fund Enterprise Funds Characteristics Minimum Fun Balance 10% 10% 20% $5M $5M various • Ease of administration • Maintain fiscal safeguards • Consistent with GFOA guidelines and policies of neighboring jurisdictions 2013-2014 Biennial Budget Workshop 21 Take -Away Points • 2012 Expenditures less than Revenues • 2013-14 Budget based on Financial Sustainability • Invests in and creates a foundation for the future • Accounts for one-time and new initiatives • Continues implementation of Strategic Plan priorities • Provides for a balanced Six -Year Plan 2013-2014 Biennia! Budget Workshop 22 Important Dates October 1 Receive copy of Mayor's Preliminary Proposed Budget October 9 Budget Work Session No. 2 — 6:00 p.m. to 8.00 p.m. October 10 Budget Work Session No. 8 — 6:00 p.m. to 8:00 p.m. October 11 Budget Work Session No. 4 — 6:00 p.m. — 8:00 p.m. October 22 Mayor delivers budgetary message and presents Proposed Budget 2013-2014 Biennial Budget Workshop 23 Conclusion ■ Discussion ■ Q&A ■ Adjournment 2013-2014 Biennial Budget Workshop 24