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Home My WebLink AboutFS 2014-11-04 Item 2E.1 - Ordinance - 2013-2014 Biennial Budget AmendmentW z City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director DATE: October 29, 2014 SUBJECT: 2014 Year -End Budget Amendments ISSUE Approve the 2014 Year -End budget amendments to the 2013 -2014 biennial budget before December 31, 2014. BACKGROUND Budget amendments are proposed for the following situations and reasons: • Approve new proposals for software and technology equipment purchases. • Approve annual funding for the Leoff 1 Retiree Healthcare Plan. • Approve additional budget for unreimbursed firefighter Oso deployment costs. • Approve additional revenue and expenditure budget for revenue backed expenditures. • Approve additional budget for retail sales tax revenue. • Approve budget transfers among departments to align with the transfer of staff and for other situations. DISCUSSION The proposed amendments have been categorized by type as follows: 1. New Proposals 2. Unbudgeted Expenditures 3. Revenue Backed Expenditures 4. Revenue Increases 5. Transfers Among Departments The proposed amendments are documented in two attachments. The Budget Amendment Summary (narrative) describes the amendments in narrative format and organizes them by amendment type. The Budget Amendment Detail (spreadsheet) lists the amendments in line item format, by fund and department. The majority of the budget amendments represent matters that have been previously discussed with Council or that are administrative in nature. RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2014 Year -End budget amendments to the 2013 -2014 biennial budget. This item is scheduled for the November 10, 2014 Committee of the Whole, and December 1, 2014 Regular Council Meeting. ATTACHMENTS Draft Ordinance Draft Ordinance Detail 2014 Year End Amendment to 2013 -2014 Biennial Budget (narrative) 2014 Year End Amendment to 2013 -2014 Biennial Budget (spreadsheet) Informational Memorandum — Information Technology equipment proposal Informational Memorandum — Court software proposal 28 RFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2389, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2013 -2014 BIENNIUM, TO ADOPT AN AMENDED YEAR -END BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 3, 2012, the City Council of the City of Tukwila adopted Ordinance No. 2389, which adopted the 2013 -2014 biennial budget of the City of Tukwila; and WHEREAS, on November 10, 2014, following required public notification, the City Council conducted a public hearing on the proposed 2014 Year -End Amendment to the 2013 -2014 Biennial Budget; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2389 is hereby amended with the City Council's adoption of the document entitled "2014 Year -End Amendment to the 2013 -2014 Biennial Budget," attached hereto and 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 amended and the aggregate budget totals are as follows: FUND EXPENDITURES REVENUES 000 General $124,188,819 $124,188,819 503 LEOFF 1 Retiree Health Care 2,170,680 2,170,680 Aggregate budget totals $284,924,011 $284,924,0111 W: Word Processing \Ordinances \Budget amendment - 2013 -2014 year -end 10 -30 -14 PM:bjs Page 1 of 2 29 Section 3. Copies on File. A complete copy of the final budget for 2013 -2014, 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. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 5. 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 6. 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 , 2014. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: 2014 Year -End Amendment to the 2013 -2014 Biennial Budget WV Word Processing \Ordinances \Budget amendment - 2013 -2014 year -end 10 -30 -14 PM:bjs 30 Page 2 of 2 2014 Year -End Amendments to the 2013 -2014 Biennial Budget GENERAL FUND 000 New proposals Information Technology (IT). An additional $70K in capital is budgeted for the purchase of two SAN servers; one as a replacement and another as a backup. Capacity and functionality of the existing server has diminished creating this need, purchasing a backup server will support continuity of operations should functionality of the main server be compromised A separate informational memorandum from the Information Technology Director has been included as an attachment. Court (CRT). An additional $50K in capital has been budgeted to fund an electronic court document and case integration system This system will provide electronic case scheduling, a calendaring wizard, as well as an electronic forms dashboard A separate informational memorandum from the presiding Municipal Court Judge has been included as an attachment. Unbudgeted Expenditures Fire (FIRE). Additional $224K of budget has been added to fund the LEOFF 1 Retiree Healthcare plan should sufficient funds be available at the end of the year to do so. The plan has experienced high claims in 2013 and in 2014; this funding infusion would bolster the plan fund balance. Police (POL) Additional $340K of budget has been added to fund the LEOFF 1 Retiree Healthcare plan should sufficient funds be available at the end of the year to do so. The plan has experienced high claims in 2013 and in 2014; this funding infusion would bolster the plan fund balance. Fire (FIRE). Additional $89K of budget has been added to fire suppression overtime and benefits for the unreimbursed costs of the Oso landslide deployment. Revenue Backed Expenditures Fire (FIRE). Additional budget of $170K has been added to general fund revenue and to Fire department overtime and benefits for funds received from Pierce County and the Washington State Task Force 1 in reimbursement for the department's assistance and deployment to the Oso landslide. Fire (FIRE). Additional budget of $335K has been added to general fund revenue and to Fire equipment to reflect the funds received from Homeland Security for 54 Motorola radios and related equipment. Fire (FIRE). Additional budget of $20K has been added to general fund revenue and to Fire department supplies to reflect a change in the hazardous material supplies and insurance reimbursement arrangements with EF Recovery. Formerly, EF Recovery credited the Fire Department account with insurance proceeds collected, then reduced the account balance for supplies purchased. Under the current arrangement, all insurance proceeds are remitted to the City and the City directly pays for the purchase of hazardous material supplies Revenue Increases Grant Revenue. The budget for grant revenue is increased by $133K to reflect funding for the Auto Theft Task Force police sergeant position. Retail Sales Tax Revenue. The budget is increased by $600K to reflect estimated tax collections for 2014 The estimate is based on the revenue trend through August 2014 and on the seasonal nature of the receipts, with a higher percentage received in November and December for non - construction sales tax. The 2014 revenue collected through August is approximately $500K more than budget. A 31 year over year comparison indicates that construction sales tax is down 36% but non - construction sales tax is up 3 %. Should this trend continue through the end of the year, retail sales tax will exceed $15,600,000 or $600K more than the current budget. Retails sales tax for 2013 exceeded $15,888,000. Transfers Amonq Departments Mayor /Economic Development Division (MAY) and Department of Community Development (DCD). Early in 2014, one staff was transferred to the Economic Development division of the Mayor's Office from the Community Development department. Budget of approximately $98K representing the salaries and benefits of the transferred staff has been added to the Economic Development division and removed from the Community Development department. Mayor /Communications Division (MAY) and Information Technology department (IT). Early in 2014, two staff were transferred to the newly established Communications division of the Mayor's Office from the Information Technology department. Budget of approximately $150K for the salaries and benefits of the transferred staff has been added to the Communications division and removed from the Information Technology department. Additionally, $24K of budget has been transferred from the Information Technology department to the Communications division for the purchase of Channel 21 communications equipment. Public Works (PW) and Arterial Street Fund (104). Salary and benefits for certain Public Works department staff was budgeted in the Public Works department but has been charged to the Arterial Street fund through the project accounting system for work associated with capital projects. Budget of $260K is transferred to Fund 104 from the Public Works department to cover the salary and benefit costs. ARTERIAL STREET FUND 104 Transfers Amonq Departments Public Works (PVV) and Arterial Street Fund (104) Salary and benefits for certain Public Works department staff was budgeted in the Public Works department but has been charged to the Arterial Street fund through the project accounting system for work associated with capital projects. Budget of $260K is transferred to Fund 104 from the Public Works department to cover the salary and benefit costs. EMPLOYEE HEALTHCARE FUND 502 Unbudgeted Expenditures Healthcare costs are 88% over budget through September 30, 2014. Additional expenditure budget of $800K is added to the fund to cover these costs. The offset is a reduction of Fund 502 fund balance LEOFF 1 RETIREE HEALTHCARE FUND 503 Unbudgeted Expenditures Healthcare costs are 102% over budget through September 30, 2014. Additional $564K of revenue budget and $300K of expenditure budget is added to the fund to cover these costs and build up the ending fund balance. (See Unbudgeted Expenditures under General Fund, above). 32 2014 Year End Amendment to 2013 -2014 Biennial Budget 2014 2013 -2014 Increase (Decrease) Increase (Decrease) Dept ` Explanation Acct Desc ;Fund I Revenue Expense Revenue Expense : Ending Fund Balance 1 New Proposals 1 IT purchase two SANS servers - one for !Capital equipment 1000 replacement and one for technology backup I I -i - - - - - - - 2 CRT purchase Code Smart software to create .Software .000 electronic, fillable forms; online calendar, and I I other case management efficiencies I I , - - 1 $ -- 70,000 $ - $ 70,000 1 $ (70,000) I 50,000 - 50,000 I (50,000) Unbudgeted Expenditures 3 POL Fund the Leoff 1 Retiree healthcare plan for , Retiree healthcare .000 2014 premiums 4 FIRE Fund the Leoff 1 Retiree healthcare plan for , Retiree healthcare ,000 2014 Ipremiums I I 1 5 FIRE Oso deployment overtime costs in excess of 'Fire suppression overtime 1000 reimbursement I 6 FIRE Oso deployment overtime costs in excess of I Fire suppression benefits 1000 reimbursement I - 224,000 224,000 (224,000) 1 340,000 - 340,000 (340,000) I J 80,100 - 80,100 � (80,100) 1 9,500 - 9,500 : (9,500) Revenue Backed Expenditures 7 Reimbursement for Oso landslide assistance , Revenue: .000 from Pierce County and Washington State Task ; Intergovernmental Force 1 I 1 8 FIRE Fire Department overtime for Oso landslide , Fire suppression overtime ,000 9 FIRE Fire Department overtime for Oso landslide !Fire suppression benefits .000 1 1 10 Radio grant . Revenue: Grant Dept of .000 !Homeland Security I 11 FIRE Radio grant- reimbursement for purchase of 54 Capital equipmant 000 radios 1 1 12 Revenue from MVA hazardous material supplies 'Revenue: Hazard material .000 cost recovery ! - - - - - - - - - - - - - - _I_ - - - - - J - 13 FIRE MVA hazardous material supplies Operating supplies 000 I - 170,000 . 170,000 170,000 rt 127,000 - 127,000 (127,000) ' I I _43,000 - 43,000 ' (43,000) I 335,000 , 335,000 - 335,000 I 335,000 335,000 (335,000) I - 20,000 20,000 - 20,000 I 20000 - 20,000 (20,000) Revenue Increases 14 Auto Theft Task Force grant !Grant revenue 1000 15 Increase budget based on 2014 experience Revenue: Local Retail .000 through August ;Sales & Use tax 133,000. 133,000 - 133,000 I 600,000 ' 600,000 - . 600,000 Transfers Among Departments and Funds 16 MAY Transfer budget to the Economic Development Salaries X000 Division of the Mayor's budget for 1 Community ' Development FTE I 1 1 17 MAY Transfer budget to the Economic Development Benefits X000 Division of the Mayor's budget for 1 Community � . Development FTE 1 18 DCD Transfer budget from the Community !Salaries 1000 Development department to the Economic 1 1 Development Division of the Mayor's budget for. 1 FTE . -- - - - - - - l- - - - - - - - - - - - - _i- - - 19 DCD Transfer budget from the Community .Benefits .000 Development department to the Economic Development Division of the Mayor's budget for I I 1 FTE I 1 - - - - - - - - - - - - - - - - - - - - - - 1 I 1 78,000 - 78,000 1 (78,000) I . 20,000 20,000 (20,000) 1 I - - - - - - - I - - (78,000) - (78,000)1 78,000 I - - j (20,000) - (20,000) 20,000 f2 199,000 (199,000) 61,000 ; (61,000) 2014 Year End Amendment to 2013 -2014 Biennial Budget i Dept Explanation GENERAL FUND - Fund 000 Acct Desc Fund 2014 Increase (Decrease) Revenue Expense 2013 -2014 Increase (Decrease) Revenue Expense 1 Ending Fund Balance 20 MAY Transfer budget to the Communications Division (Salaries 1000 of the Mayor's budget for 2 Information 1 Technology FTE's I I 21 MAY Transfer budget to the Communications Division 1 Benefits 1000 of the Mayor's budget for 2 Information Technology FTE's 22 MAY Transfer Information Technology budget to :Equipment :000 Communications Division for purchase of Channel 21 hardware and other equipment. I I 23 IT Transfer budget to the Communications Division Salaries 1 '000 of the Mayor's budget for 2 Information Technology FTE's I 1 24 IT To transfer budget to the Communications Benefits 1000 Division of the Mayor's budget for 2 IT FTE I transferred 25 IT Transfer Information Technology budget to i Miscellaneous X000 Communications Division for purchase of Channel 21 hardware and other equipment. I I 1 1 26 PW Transfer budget to the Arterial Street fund from (Salaries & benefits .1000 Public Works to cover payroll costs charged to 1 the projects in the fund I I GENERAL FUND TOTALS 110,000 40,000 24,000 (110,000) (40,000) (24,000) (260,000) 110,000 (110,000) 40,000 (40,000) 24,000 (24,000) (110,000); 110,000 (40,000): 40,000 (24,000)! 24,000 1 (260,000): 260,000 1,258,000 1,038,600 , 1,258,000 1,038,600 ! 219,400 Transfers Among Departments and Funds 27 104 Transfer budget from the Public Works 'Salaries 1104 department to the Arterial Street department for salaries charged to the Arterial Street fund I but budgeted in the Public Works department 1 1 28 104 Transfer budget from the Public Works Benefits —1104 department to the Arterial Street department for benefits charged to the Arterial Street fund 1 but budgeted in the Public Works department ARTERIAL STREET FUND TOTALS 199,000 61,000 - I 260,000 260,000 ! (260,000) EMPLOYEE HEALTHCARE PLAN Unbudgeted Expenditures 29 502 Increase expenditure budget to cover high claim 1healthcare costs 1502 costs. i EMPLOYEE HEALTHCARE PLAN TOTALS 800,000 800,000 (800,000) 800,000 (800,000) LEOFF 1 RETIREE HEALTHCARE PLAN Unbudgeted Expenditures 30 503 Increase funding to cover high claim costs and healthcare costs 1503 bolster fund balance _ _ _ _ _ _ 31 503 Increase expenditure budget to cover high claim healthcare costs X503 costs. I 564,000 564,000 - 564,000 I 300,000 - 300,000 (300,000) LEOFF 1 RETIREE HEALTHCARE PLAN TOTALS 564,000 564,000 300,000 264,000 YEAR -END BUDGET AMENDMENT TO 2013 -2014 BIENNIAL BUDGET 34 ' $ 1,822,000 $ 1,298,600, $ 1,822,000 $ 2,398,600 $ (576,600)1 2 of 2