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Home My WebLink AboutCOW 2015-07-27 Item 3 - Public Hearing - Ordinance Amending 2015-2016 Biennial BudgetCOUNCIL AGENDA SYNOPSIS ---------------------------- - - - - -- Initials Meefin ,g Dale Prepared by Mayor's review Council review 07/27/15 PMC LIT W 08/03/15 PMC ❑Other 0 Mtg Date SPONSOR [:]Council []Mayor [:] HR ❑ DCD Z.Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ❑ PWI SPONSOR'S The City Council is being asked to approve an ordinance amending the 2015-2016 biennial SUMMARY budget to adjust certain costs and beginning fund balances and to record budget for new initiatives. This item is scheduled for Council consideration at the 7/27/15 C.O.W. and 8/3/15 Regular Council meeting. REVIEWED BY r-1 cow mtg. [:] CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. F-1 Parks Comm. ❑ Planning Comm. DATE: 7/21/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department CommI"I-'T", Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURt," REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: MISCELLANEOUS FUNDING SOURCES, SEE DETAIL Comments: MTG. DATE RECORD OF COUNCIL ACTION 7/27/15 ITEM INFORMATION ITEM NO. 4.A. I STAFF SPONSOR: PEGGY MCCARTHY ORIGINAL, AGENDA DATE: 7/27/15 AGENDA ITEM TITLF', An Ordinance amending the 2015-2016 biennial budget. !CATEGORY H Discussion Mtg Date 7127119 ❑ Motion Mtg Date ❑ Resolution Mtg Date Z Ordinance Mtg Date 813119 w ❑ BidA ard Mtg Date Z Public.Hea -n ig Mt ,g Date 7127119 ❑Other 0 Mtg Date SPONSOR [:]Council []Mayor [:] HR ❑ DCD Z.Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ❑ PWI SPONSOR'S The City Council is being asked to approve an ordinance amending the 2015-2016 biennial SUMMARY budget to adjust certain costs and beginning fund balances and to record budget for new initiatives. This item is scheduled for Council consideration at the 7/27/15 C.O.W. and 8/3/15 Regular Council meeting. REVIEWED BY r-1 cow mtg. [:] CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. F-1 Parks Comm. ❑ Planning Comm. DATE: 7/21/15 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department CommI"I-'T", Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURt," REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: MISCELLANEOUS FUNDING SOURCES, SEE DETAIL Comments: MTG. DATE RECORD OF COUNCIL ACTION 7/27/15 MTG. DATE ATTACHMENTS 7/27/15 Informational Memorandum dated 7/1/15 (Revised after FS meeting) Draft Ordinance City of Tukwila, 2015-2016 Budget Amendment Detail (spreadsheet) Minutes from the Finance & Safety Committee Meeting of 7/21/15 8/3/15 2 City of Tukwila Jim Haggerton, Mayor TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director DATE: July 1, 2015 SUBJECT: 2015 Budget Amendments adjusting the 2015 -16 Biennial Budget (Revised after 7/21 FS; changed shown in strike -thru underline format) ISSUE Approve the 2015 budget amendments adjusting the 2015 -2016 Biennial Budget. BACKGROUND In the past, budget amendments have been presented for approval once, in the fall of the year. For 2015, an additional budget amendment process has been scheduled to: a. Incorporate budget items that were known but not included in the 2015 -16 budget due to time constraints, and b. Adjust the budgeted beginning fund balances to the actual 2014 ending fund balances for any large variances. In addition to these amendment types, certain other amendments have been proposed for initiatives supported by the Administration or Council. The amendments have been grouped into three categories, (1) From 2015 -16 Budget Process, (2) Carryovers from 2014, and (3) Other. These categories are explained in more detail below. From 2015 -16 Budget Process — These items were known at the time the budget was published but adjustments were not made due to time constraints. This category also includes a true up of the budgeted beginning fund balances based on the actual 2014 ending fund balances. Carryovers from 2014 — Certain budget that was not used in 2014 is being carried over to 2015. The capital project budget carryovers will occur with the second budget amendment process in the fall. Other — Most amendments in this category support initiatives advocated by the Administration or the City Council or are revenue backed with no effect on fund balance. DISCUSSION General Fund. In the category, From 2015 -16 Budget Process, an additional $109,772 of grant expenditure budget is included for the Community Development Commute Trip Reduction (CTR) and Recycling grants; Recreation has included $50,000 in additional revenue and expenditure for the REACH after school program offered in conjunction with the YMCA. Additional expenditure budget of $46,600 is added for a variety items and additional $159,400 in grant revenue — including $136,000 for the Auto Theft Task Force Grant — has also been included. The beginning fund balance budget is increased by $681,000 to reflect 2014 actual ending fund balance. In the category, Carryovers from 2014, $100,000 of budget is added for the $50,000 purchase of Municipal Court software, Code Smart, approved but not expended in 2014 and for $50,000 of Fire Department equipment purchases planned for 2014 but made in 2015. 3 INFORMATIONAL MEMO Page 2 In the category, Other, many of the items are revenue backed. For those expenditures that are not revenue backed, additional budget has been added to sales tax revenue as an offset. (The positive sales tax budget variance for the first quarter in 2015 was $336,000). The category also contains an amendment moving $60,000 budget for Fire department radios to the Emergency Management division from the Administration division — all within the Fire Department budget. Other Category Sponsor Amendment Amount Funded by 2015 Sales Tax Collected in Excess of Budget 53rd Ave S. Transfer to Residential Street fund to fund design work. Residential $174,000 Street RFA project management and backfill DCD /Mayor $100,000 Technology strategic plan Technology $ 20,000 Fire Marshall vehicle Fire $ 18,474 Preschool expansion — City portion (discussed at Community Affairs and Recreation $ 13,250 Parks Committee on April 13, 2015). Total $ 325,724 Revenue Backed — Grants, Fees or Reimbursement Arrangements Additional FTE for Auto Theft Task Force detective; cost is Police $ 64,100 reimbursed by Task Force. Additional FTE for officer to serve as trainer at the Washington State Police $ 72,100 Criminal Justice Training Center for the Basic Law Enforcement Academy; cost is reimbursed by Academy Building inspections and plan review consultants; cost passed through DCD $150,000 to customer. Expand the Preschool program; portion of expansion paid for by user Recreation $ 21,750 fees (discussed at Community Affairs and Parks Committee on April 13, 2015 ). Additional sales tax of $422,696 is budgeted to cover the $325,724 in expenditures for the items included in the Other category listed in the chart above and the $100,000 in expenditures in the Carryovers from 2014 category, reduced by the $3,028 net additional revenue budgeted in the From 2015 -16 Budget Process category. Residential Street Fund 103. In the category, From 2015 -16 Budget Process, the beginning fund balance is reduced by $235,000 to reflect the 2014 actual ending fund balance. The 2014 actual ending fund balance was lower than estimated because fund balance was used to fund more of the City's portion of the Safe Routes to School projects than anticipated A $100,000 transfer in from the General Fund was made as budgeted. In the category, Other, 53rd Ave S design work is funded through $174,000 of revenue transferred in from the General Fund replacing the $174,000 of grant funding that was not awarded. Arterial Street Fund 104. In the category, From 2015 -16 Budget Process, the beginning fund balance is increased by $775,000 to reflect the 2014 actual ending fund balance. The ending 2014 actual fund balance was higher than 4 WA2015 Info Memos12015 -16 Biennial Budget Amendment REVISED.docx INFORMATIONAL MEMO Page estimated because an additional $1,000,000 was transferred in to the Arterial Street fund to cover grant funded expenditures: grantors owed the Arterial Street fund $2.4 million at the end of the year. In the category, Other, budget for $806.000 of major maintenance on three bridges and the corresponding $780.00OBRAC (Bridge grant funding |S added and the $O0.OUO City portion io budgeted oaa use of ending fund balance. Local Improvement District (LID) Fund 233. |n the category, From 2QY5-Y5 Budget Process, the beginning fund balance io increased bv$237.U0O to reflect the 2014 actual ending fund balance. The 2014 ending fund balance was higher than estimated because money was received from certain unanticipated LID assessment paid-offs in October 2014. Facilities Fund 302. |n the category, From 2OY5-ƒ6 Budget Process, the beginning fund balance ia reduced bv$803.O00 to reflect the 2014 actual ending fund balance. The 2014 ending fund balance was less than estimated because recipt of the expected $1.5 million Tukwila land sale proceeds was postponed to 2015 and $1,000,000 was transferred in to the General Fund. Water Fund 401. |n the category, From 2Q15'ƒ6 Budget Process, the beginning fund balance io reduced bv$723.0U0 to reflect the 2014 actual ending fund balance. The budgeted $6.5 million 2015 beginning fund exceeds the actual 2014 ending fund balance of $5.8 million due to the timing of project expenditures and other seasonal factors which are difficult to precisely quantify, Sewer Fund 402. In the category, From 2015-16 Budget Process, the beginning fund balance is increased by $1,885,000 to reflect the 2014 actual ending fund balance. The budgeted $3.4 million 2015 beginning fund balance is less than the actual 2014 ending fund balance of $5.3.million due to the timing o proiect expenditures and other seasonal factors which are difficult to precisely quantify. Additionally, based on the August 2014 fund balance of $4,2 million and year-to-date performance, the 2015 budgeted beginning fund balance should have been budgeted at a higher amount. Surface Water Fund 412. |n the category, From 2015-16 Budget Process, the beginning fund balance ia reduced bv$13O.000 to reflect the 2014 actual ending fund balance. The adjustment is 6% of the originally budgeted 2015 beginning fund balance: the variation is due to normal variations inherent in estimations. |n the category, Other, 53rd Ave S design work is funded through the use of $120,000 of ending fund balance replacing the $120,000 of grant funding that was not awarded. Equipment Rental & Replacement Fund 501. |n the category, From 2Of5-Y6 Budget Process, budget for the $23.00O purchase ofanEmergency Management SUV is added; corresponding grant revenue was recorded in the 2015 budget. W:\2015 Info Memos\2015-16 oiennial Budget Amendment REVISED.docx INFORMATIONAL MEMO Page 4 In the category Carryovers from 2014, budget of $306,500 for purchases planned and budgeted in 2014 but not made is added; funding is from the use of ending fund balance. In the category, Other, budget is added for the $50,000 purchase of a Fire Prevention pickup truck moved up to 2015 from 2018. Enhanced platform cost of $18,474 will be paid for by the Fire Department through an internal replacement fee charge. Ending fund balance of $338,026 is used to pay for the additional budgeted net expenditures - $306,500 from carryovers and $31,526 from the net cost of the Fire Prevention pickup Employee Healthcare Fund 502. In the category, From 2015 -16 Budget Process, the beginning fund balance is reduced by $1,006,000 to reflect the 2014 actual ending fund balance. The 2015 beginning balance estimate did not take into account the $600 thousand increase in the IBNR reserve required for the year. Additionally, claims in the latter four months of the year were higher, on a prorated basis, than those for the first eight months of the year. Employee Healthcare Fund 503. In the category, From 2015 -16 Budget Process, the beginning fund balance is reduced by $262,000 to reflect the 2014 actual ending fund balance. An additional $264 thousand in funding was planned and budgeted but not made. Funding was contingent on receipt of the Tukwila Village land sale proceeds Since these were not received in 2014, only portion of the funding was accomplished ($300,000 actual funding compared with $564,000 budgeted funding) RECOMMENDATION The Finance and Safety Committee is being asked to approve the 2015 budget amendments adjusting the 2015 -2016 biennial budget. This item is scheduled for the July 27, 2015 Committee of the Whole, and the August 3, 2015 Regular Council Meeting. ATTACHMENTS Draft Ordinance 2015 -2016 Biennial Budget Amendment Detail (spreadsheet) 6 M2015 Info Memos12015 -16 Biennial Budget Amendment REVISED.docx y.. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2458, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2015 -2016 BIENNIUM, TO ADOPT AN AMENDED BIENNIAL BUDGET; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Ordinance No. 2458 adopted the 2015 -2016 biennial budget of the City of Tukwila on November 17, 2014; and WHEREAS, on July 27, 2015, following required public notification, the City Council conducted a public hearing on the proposed budget amendments; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Ordinance No. 2458 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila 2015 -2016 Biennial Budget Amendment," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.33.075. 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 $122,930, $122,99 $127,438,824 $127,438,824 103 Residential Street $2600,000 $2,600,000 $10,846,721 $10,846,721 104 Arterial Street $41;577;8 8 $41,577,820 $36,686,080 $36,686,080 2-86 LID r=ura,^ieFund $669;888 $680,000 233 $2,637,813 $2,637,813 304 $5,607,000 $5,697,,988 302 Facility Replacement $9,719,204 $9,719,204 (continued...) W: Word Processing \Ordinances \Budget amendment 2015 -2016 biennium 7 -15 -15 PM:bjs Page 1 of 2 11 FUND EXPENDITURES REVENUES 401 Water $18,814,009 $18,814,000 $17,699,000 $17,699,000 402 Sewer $15,401000 $15,401,000 $21,871,000 $21,871,000 412 Surface Water 20 173 000 120,173,000 501 E ui ment Rental 111,608,610 1112608,610 502 Employee Health Insurance $13,274,958 $13,274,958 Fund 503 Retiree Health Insurance Fund 1 510 191 11,5102191 Section 3. Copies on File. A complete copy of the final budget for 2015 -2016, 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 )2015. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Jim Haggerton, Mayor Filed with the City Clerk :_ Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: City of Tukwila 2015 -2016 Biennial Budget Amendment W: Word Processing \Ordinances \Budget amendment 2015 -2016 biennium 7 -15 -15 PM:bjs i Page 2 of 2 City of Tukwila 2015 -2016 Biennial Budget Amendment Adopted August 3, 2015 ORIGINAL AMENDED Reconciliation of 2015 -2016 Budget Summary to Ordinance BUDGET BUDGET EXPENDITURES 2015 Expenditures 2016 Expenditures 2016 Ending Fund Balance Total Expenditures 2015 Amendment Total Expenditures 000 General $ 56,528,833 $ 59,762,899 $ 9,526,047 $ 125,817,778 1,621,046 $127,438,824 101 Hotel/ Motel 1,577,642 427,500 592,174 2,597,316 2,597,316 103 City Street 1,868,000 8,823,000 390,721 11,081,721 (235,000) 780;000 '> 10,846,721 36,686,080 5,703,632 180,000 1,415,333 104 Arterial Street 21,557,511 14,200,217 148,353 35,906,080 105 Contingency - - 5,703,632 5,703,632 109 Drug Seizure Fund 55,000 45,000 80,000 180,000 200 LTGO Bonds 537,000 878,333 - 1,415,333 211 Limited Tax G.O. Refunding Bonds, 2008 811,300 811,100 1,000 1,623,400 811,100 1,623,400 866,315 1,172,100 212 Limited Tax G.O. Bonds, 2009A 437,355 427,960 1,000 866,315 214 Limited Tax G.O. Bonds, 2010A 585,649 585,451 1,000 1,172,100 216 Limited Tax G.O. Refunding Bonds, ValleyComm 228,800 - 1,000 229,800 - 229,800 1,095,500 226,260 669,000 217 2011 Refunding Bonds 545,825 548,675 1,000 1,095,500 218 2014 Facility 113,130 113,130 - 226,260 206 LID Guaranty - - 669,000 669,000 233 2013 LID 794,284 736,005 1 870,524 2,400,813 237,000 (863,000) 2,637,813 3,902,000 9,719,204 901,000 301 Land Acquisition, Recreation & Park Devl. 3,273,000 292,000 337,000 3,902,000 302 Facility Replacement 4,380,000 4,415,000 1,787,204 10,582,204 303 General Government Improvements 320,550 330,641 249,809 901,000 304 Fire Improvements - - 550,200 550,200 (723,000) 1,885,000 550,200 17,699,000 21,871,000 401 Water 7,448,185 8,298,949 2,674,866 18,422,000 402 Sewer 8,636,400 9,796,006 1,553,594 19,986,000 411 Foster Golf Course 1,768,017 1,812,394 601,083 4,181,494 (256,000) 4,181,494 20,173,000 412 Surface Water 11,070,311 6,591,228 2,767,461 20,429,000 501 Equipment Rental 3,555,343 2,409,952 5,601,841 11,567,136 41,474 ; (1,006,000) (262,000) 11,608,610 13,274,958 1,510,191 502 Insurance Fund 6,342,002 6,344,241 1,594,715 14,280,958 503 Insurance - LEOFF 1 Fund 1 948,819 617,391 205,981 1,772,191 611 Firemen's Pension 1.32,727 132,727 1,351,846 1,617,300 1,772,191 1,617,300 Total I $ 133,515,682 $ 128,399,799 1 $ 37,261,050 $ 299,176,531 $ 1,219,520 $300,39 051 REVENUES 2015 Beginning Fund Balance 2015 Revenues 2016 Revenues Total Revenues 2015 Amendment Total Revenues 000 General $ 9,500,000 $ 56,731,999 $ 59,585,779 $ 125,817,778 1,621,046 127,438,824 101 Hotel/ Motel 500,000 1,467,316 630,000 2,597,316 2,597,316 103 City Street 1,400,000 524,842 9,156,878 11,081,721 (235,000) 10,846,721 104 Arterial Street 600,000 21,302,000 1 14,004,080 35,906,080 780,000 : 36,686,080 5,703,632 180,000 1,415,333 1,623,400 105 Contingency 5,700,000 1,816 1,816 5,703,632 109 Drug Seizure Fund 60,000 60,000 60,000 180,000 200 LTGO Bonds - 537,000 878,333 1,415,333 211 Limited Tax G.O. Refunding Bonds, 2008 1,000 811,300 811,100 1,623,400 212 Limited Tax G.O. Bonds, 2009A 1,000 437,355 427,960 866,315 237,000; 866,315 1,172,100 229,800 1,095,500 226,260 669,000 2,637,813 214 Limited Tax G.O. Bonds, 2010A 1,000 585,649 1 585,451 1,172,100 216 Limited Tax G.O. Refunding Bonds, ValleyComm 1,000 228,800 - 229,800 217 2011 Refunding Bonds 1,000 545,825 548,675 1,095,500 218 2014 Facility - 113,130 113,130 226,260 206 LID Guaranty 668,000 500 500 669,000 233 2013 LID 805,000 810,140 785,673 2,400,813 301 Land Acquisition, Recreation & Park Devl. 1,100,000 2,491,000 1 311,000 3,902,000 (863,000) 3,902,000 9,719,204 302 Facility Replacement 1,800,000 4,453,602 4,328,602 10,582,204 303 General Government Improvements 500,000 200,500 200,500 901,000 901,000 304 Fire Improvements 450,000 50,100 50,100 550,200 550,200 401 Water 6,500,000 5,829,000 6,093,000 18,422,000 (723,000) 1,885,000 17,699,000 21,871,000 402 Sewer 3,400,000 8,262,000 8,324,000 19,986,000 411 Foster Golf Course 600,000 1,769,747 1,811,747 4,181,494 (256,000) 4,181,494 20,173,000 412 Surface Water 2,200,000 11,261,000 6,968,000 20,429,000 501 Equipment Rental 4,500,000 3,613,043 1 3,454,093 11,567,136 41,474 11,608,610 502 Insurance Fund 3,500,000 5,186,929 5,594,029 14,280,958 (1,006,000) (262,000) 13,274,958 1,510,191 1,617,300 503 Insurance - LEOFF 1 Fund 500,000 703,851 568,340 1,772,191 611 Firemen's Pension 1,500,000 58,650 58,650 1,617,300 Total $ 45,788,000 $ 128,037,095 $ 125,351,436 $ 299,176,531 ,$ 1,219,520 $300,396,051 2015 -2016 Biennial Budget Amendment Detail 1of5 10 2015 Increase (Decrease) Ref (Dept I Explanation I Acct Desc { Acct# Expense i Revenue ? Net GENERALFUND From 2015 -16 Budget Process 1 I DCD Business Recycling IProf Services 1000.08.558.601.41.02 10,000 1 766 2% Cost of living raise far Maggie Lubov for 2015 - grant funded Extra Labor - CTR 000.08.558.602.12.00 " 4,272 ]Coordinator ] I_—_--___—_ --- —_—__,_—_.-_--_ ___-- ______.- ____.J.__.._______ 3 j DCD Increased for additional work /staff - grant funded jSupplies - Operating j000.08.558.602.31.00 500 f I 4 F ID-C""ID Increased for additional expenses such as - new consultant services i - IProf Services 1 1000.08.558.602.41.07 36,500 ; (109,772) jgrant funded 5 __� for DCD Increased - — — additionalex expenses for new employees p - g grant funded j-- ___________ Travel - Parking, meals, g �_ _m.. 000.08.558.602.43.07 50 O] " I Imileage I _.._____— _._.._..__ ___ -_.__ ______________j_ 6 ' DCD Misc. expenses -grant funded I �_ Misc. ( _}_______ 000.08.558.602.49.07 I �,____.. 43,000 1 - — - ___ —____ --- _ ____— _.__ --- _----- --- --- --- .___ 7 j DCD Metro CTR Program and additional Metro expenses jIntergovernmental j000.08.558.602.51.00 15,000 _9_1 Rec Expendltures related to recreation and enrichment services for the IExtra Labor 1000.07.574.200.12 00 ! 45,500 I j REACH After School Program (contract with Tukwila School District) _ _ _ _ _ _ _ _ 10 Rec Expenditures related to recreation and enrichment services for the _ ;Supplies _ X000.07.574.200.31 05 4,500 ( REACH After School Program (contract with Tukwila School District) I 11 j Rec REACH Revenue (Reimbursement from TSD) Revenue 000.347.600.02 50,000 j j 12 I Fire An error occurred in the final budget process. Line item was I IEM Office & Operating i 1000.11.525.600.31 00 8,600 (8,600) j decreased from $16.8 Kto $8K. jSupplies I 13 Mayor Postage Meter I ease - Budget was decreased and it needs to be TLe 'as es— 7000.03.514.200.45.00 5,000 i i (5,000) reinstated to cover the lease agreement I --- i--,,_—.._..__..___ _.._______..._..___._.._._..._. _,_.___...__-._.-$_-_._-_,,..._..__......._...__ 14 Fire Emergency Management vehicle paid for by the EMPG14 grant. ...__4-- Fleet Capital _,._.__._-- -- ..._.,..., 000.11.522.300.45.94 ,......L, __.._.__.., ..� .,.,.....__ 23,000 ._......_.. (23,000) Grant revenue was recorded in the 2015 -16 budget but expenditure ]Fire Dept ] { I was not. ( i J ' 15 1 Street IPublic Works Street Traffic Control Supplies - Repair & Maintenance {Streets - Street 1000.16.542.640.31.01 10,000 (10,000) I jwas reduced by $20,000 during the budget process. For 2015 & 2016 jMaintenance/Traffic Control j I 16 Pol Auto Theft Task Force Grant revenue omitted from budget ;WA Assoc of Sheriffs and 000.334.069.00.01 136,000 ( 136,000 I I Police Chiefs 17 j Mayor Grant Funds not budgeted jPublic Defense j000.334.010.22.00 I 23,400 1 23,400 i _— __._—_._- _— _.v_— __._ --- _ 18 I Fin Adjust beginning fund balance based on 2014 actual ending fund I IEstimated Beginning Fund 1000.291.740.00.00 681,000 balance I jBalance j _ _ _ _ 19 Fin Adjust ending fund balance based on beginning fund balance Estimated Ending Fund 681,000 e ( adjustment (Balance i { r 20 'Total from 2015 -16 Budget Process 887,372 890,400 ' 3,028 Carryovers from 2014 `! 20 CRT Code Smart software -insufficient time in 2014 to fully implement ,Software ,000.09.594.120.64.00 50,000 (50,000) --------------- 21 Fire 2014 purchases of Personal Protective Equipment were deferred 4_ Suppression Operating 000.11.522.200.31.01 - .. 50,000 . ... '6460-0)' j with the instruction to make purchase in 2015, and to amend the !Supplies ; I associated Acct# in June of 2015 I I Total Carryovers from 2014 100,000 a (1001000), 1of5 10 2015 Increase (Decrease) Ref Dept i Explanation Acct Desc Acct# Expense 7 Revenue Net Other 22 PW E 53rd Ave S (S 137th St - S 144th St) - City to fully fund design as Transfer -out to Residential i000.597.103.00.00 174,000 " (174,000) unsucessful for grant funds. Once designed, the residential street Streets should be "shovel ready" for future construction grant. Discussed at) I 1 the 2/17/15 Transportation Committee. I I 23 1 DCD Contract labor to backfill RFA Project Manager's position as part- Extra Labor 1000.08.558.600.12.00 ; 50,000 time planner I I i __« �. _____— _— _— _- _____ «- _______ —__.. _ _— _______ ____ 24 I Mayor Increase RFA Project Manager from .5 FTE to 1 FTE ISalaries and benefits I — _---- _- ___.._. 1000.08.558.600. * *. ** 3 ._._ + 50,000 ? (100,000) E 25 IT IT IT Planning Consultant - John Luthy, The Futures Corp. Technical Support _ I I X000.12.518.880.42.00 I I 20,000 I (20,000) 26 Fire Originally scheduled Fire Prevention's 1/2 -ton Pickup Unit #1226 to Fleet Capital 000.11.522.300.45.94 18,474 (18,474) be replaced in 2018. Now purchase in 2015 with Fire making up the Fire Dept $18,474 price difference. 1 _ _ - - - - '- .. _...._.__ - - -- 27 (Police Reimbursement from the Washington Auto Theft Prevention — TWA Assoc of Sheriffs and X000.334.069.00.00 - ,. 47,300 ' Authority (WATPA) grant for salary for an detective assigned as a )Police Chiefs (WATPA grant) 1 1 Auto Theft Task Force (ATTF) Detective. Begins July 1 I I t I { «___— _.______ -... _ ___.__ _ _ __..___ -.__.. _�____ i 28 1 Police Reimbursement of benefits for the detective assigned as a ATTF 1WA Assoc of Sheriffs and 1000.334.069.00.01 ; 16,800 detective. Police Chiefs (WATPA grant) + 29 Police Salaries to backfill the assigned detective Police Detective I 000.10.5 * *.00 I 47,300 I 30 1 Police Benefits to backfill the assigned detective 'Police Detective 000.10.5 * *. * * *.2 *.00 16,800 I 31 j Police Reimbursement of Salary for an Officer assigned as a trainer at the 1 WSCITC BLEA 1000.334.* 52,600 1 Washington State Criminal Justice Training Center (WSCITC) for the 'reimbursement 1 Basic Law Enforcement Academy (BLEA), begins June 1. Three year agreement. I 32 — r Police Reimbursement of Benefits for the Officer assigned as a TAC Officer WSCITC BLEA fi000.334.* — 19,500 I I at WSCITC Ireimbursement I 33 1 Police Salaries to backfill the officer assigned to BLEA iPolice Officer 1000.10.5 * *. * * *.11 00 1 52,600 1 34 I Police Benefits to backfill the officer assigned to BLEA {Police Officer i 1 1000.10.5 * *. * * *.2 *.00 1 19,500 I 35 r-OCD Consultant services for p, I—an review and building inspections due to Professional Services X000.08.559.600.41.00 150,000 I � - 1 vacancies in Building Division. i _— _j_ �_ __ _ _ —___ __.___ __ 36 + DCD « Consultant services for plan review and build ing inspections du to Permit fees — _ _ e X000.322.100.00.00 150,000 i 1 vacancies in Building Division. I I L_--- __._._____...___— __ «__w....« --- .____..__ -- (_—_..___ —_.__-- ...._._l_...._....__.- .__..... . 37 Rec Expenditures related to expanded preschool; discussed at 'Salaries .5 FTE to .75 FTE 1000.07.574.200.11.00 13,485 Community Affairs & Parks Committee on April 13, 2015 ( I { 1 38 1 Rec Expenditures related to expanded preschool IExtra Labor j i 1000.07.574.200.12 00 1 8,813 i � —c . Expenditures e_ n_ d_ it._ u r. e s related to expanded preschool f B. e_n.. e f, it.s 39 R_ e ._ ...._ « _. _ . _ .. I � 00 0 0_ 7 _ _5. 7_ 4-.-2- 0- 0. 2x.x_ x I 11,102 ; (13,250) f 40 Rec Expenditures related to expanded preschool iSupplies I 1000.07.574.200.31.07 1,100 ' ` 1 I 41 1 Rec Expenditures related to expanded preschool (Professional Services 1 1 1000.07.574.200.41.07 1 '. 500 .__.__._._..__ -- _._._ --- _. __.. «....__._...__._ «__ _.._ --- _._.__ - 42 I Rec Revenue related to expanded preschool 'Revenue 1000.347.600.003 21,7561 2of5 11 2015 Increase (Decrease) Ref IDept I Explanation Acct Desc Acct # Expense I Revenue Net 46 Fire Movement of the "ongoing replacement of 800 MHz radio's" funds ;Small Tools and Minor 000.11.525.600.35.00 60,000 from Fire Administration to Fire Emergency Management (Equipment, Emergency I IManagement 1 ___ —_ .__.Y.__._____._-_._____— _e_.-_.______..__.. ____._____.___ ._ ____..._._,_...__._ -'(6-0,600), .,I 47 Fire Movement of the "ongoing replacement of 8-0-0M Hz radio's" funds 9Radios Admin X000.11.522.100.48.01 from Fire Administration to Fire Emergency Management B I ! I 60 Fin Use sales tax collected in excess of budget to fund additional _ !Sales tax revenue Y X000.313.100.00.00 _ 422,696 422,696 General Fund costs ($336K positive budget variance for 1st quarter I I 2015) Totol Other Adjust beginning fund balance based on 2014 actual ending fund 633,674 730,646 96,972 Total General Fund 000 balance 1,621,046 1,621,046 RESIDENTIAL STREET FUND 103 Adj ust ending fund balance based on beginning fund balance _ Estimated Ending Fund _ X104.01.291.840.00.00 775 00 0 From 2015 -16 Budget Process adjustment (Balance , 61 I Fin Adjust beginning fund balance based on 2014 actual ending fund (Estimated Beginning Fund 1103.291.740.00.00 (235,000)- balance (Balance CIP 104.98.595.800.41.00 866,000 780,000 (86,000) 62 Fin Adjust ending fund balance based on beginningfund balance (Estimated Ending Fund 1103.01.291.840.00.00 (235,000): adjustment Balance ( i Other Fund project through ending fund balance. Ending fund balance _ fi104.OL291.840.00.00 i 63 PWE 53rd Ave S (S 137th St - S 144th St) - City to fully fund design as Decrease in grant funding to 103.334.030.63.00 (174,000) unsucessful for grant funds. Once designed, the residential street 12/17/14 Transp Committee I should be "shovel ready" for future construction grant. 64 PWE 53rd Ave S (S 137th St - 5 144th St) - Use City funds in place of grant Transfer in from General 103.397.000.00.00 174,000 I i funds not received. (Fund I 1 I Total Residential Street (235,000)] (235,000) "ARTERIAL T FUND 104 From 2015 -16 Budget Process 65 I Fin Adjust beginning fund balance based on 2014 actual ending fund (Estimated Beginning Fund 1104.291.740.00.00 775,000 balance Balance i } 66 Fin Adj ust ending fund balance based on beginning fund balance _ Estimated Ending Fund _ X104.01.291.840.00.00 775 00 0 I adjustment (Balance Other ' 67 PWE Major Maintenance on 3 Bridges 2015. With success of BRAC grant CIP 104.98.595.800.41.00 866,000 780,000 (86,000) I funding, increase budget for design and use Annual Bridge iwith Grant Revenue I Inspections for 10% design grant match. No match for construction. 68 r Fin Fund project through ending fund balance. Ending fund balance _ fi104.OL291.840.00.00 (86,000)1 86,000 Arterial Street 780,000 9 780,000 i ILID FUND 233 I I From 2015 -16 Budget Process 69 Fin Adjust beginning fund balance based on 2014 actual ending fund (Estimated Beginning Fund 233.291.740.00.00 237,000 j balance !Balance 1 I 70 Fin Adjust ending fund balance based on beginningfund balance Estimated Ending Fund E233.00.291.840.00.00 237,000 adjustment Balance ! 1 1 i - -_ ___..___,.__.._...__ T�rni I in F.—I 7:tR 237,000 i 237,000 - 3of5 12 2015 Increase (Decrease) Ref Dept ( Explanation Acct Desc ! Acct# Expense Revenue Net FACILITIES FUND 302 From 2015 -16 Budget Process" r 71 Fin Adjust beginning fund balance based on 2014 actual ending fund Estimated Beginning Fund 302.291.740.00.00 (863,000) balance Balance I I I i I 72 1 Fin Adjust ending fund balance based on beginning fund balance (Estimated Ending Fund 1302.00.291.840.00.00 (863,000); ; adjustment Balance j Total Facilities Fund 233 (863,000); (863,000): WATER FUND 401 From 2015 -16 Budget Process ; 737 Fin Adjust beginning fund balance based on 2014 actual ending fund ,Estimated Beginning Fund 401.293.700.00.00 (723,000), balance (Balance 1 L____.__.___. -_. 74 ; Fin Adjust ending fund balance based on beginning fund balance Estimated Ending Fund 401.02.293.800.00.00 (723,000)1 adjustment Balance j I I Total Water Fund 401 — — — (723,000)( (723,000)! SEWER FUND 402 From 2015 -16 Budget Process __T57 Fin Adjust beginning fund balance based on 2014 actual ending fund ;Estimated Beginning Fund ;402.293.700.00.00 I 1,885,000 1 ( balance (Balance I .__ —_- -._ - -...---.___ ---- ...__.... _...._-- .._ --- j_...__— _— __ - - - -- 76 Fin Adjust ending fund balance based on beginning fund balance Estimated Ending Fund 402.02.293.800.00.00 1,885,000 adjustment ;Balance 1 1 Total Sewer Fund 402 1,885,000 1,885,000 RFACE WATER 412 From 2015 -16 Budget Process 77 ( Fin Adjust beginning fund balance based on 2014 actual ending fund (Estimated Beginning Fund 1412.293300.00.00 (136,000), ibalance Balance — _ —_- -.. - __._-- ._.__... -- -_. -78-F Fin Adjust ending fund balance based on beginning fund balance — Estimated Ending Fund — X412.02.293.800.00.00 (136,000) m_ adjustment !Balance Other P 79 PWE 53rd Ave S Surface Water -Fund Design with all City funds as ,Decrease grant funding, 412333.970.36.00 (120,000); I unsucessful for grant funds. Once designed, the residential street (presented to 2/17/14 Transp I , should be "shovel ready". (Committee 1 80 I Fin 53rd Ave S Surface Water - use ending fund balance to replace grant (Ending fund balance 1412.02.293.800.00.00 (120,000); funds not awarded. 1 1 I i (Total Surface Water Fund 412 I wo,vvvir k4Do,wV1F - , FLEET FUND 501 From 2015 -16 Budget Process 81 Fire Ford Escape SUV from FEMA grant; grant revenue recorded in 2015 Fire 1501.02.594.480.64,001, 23,000 ! budget but expenditure was not ( I 82 Fin Equipment Replacement revenue from Fire Department Fleet Capital 501.348.301.00.00 6 23,000 1 (Fire Dept Carryovers from 2014 u 83 PWE 2014 Fleet Purchases; Ordered in 2014, yet delivery & payment in iFleet Capital 1501.02.594.480.64.00 192,500 t 2015. 2014 Line 6 for $45,500 and Line 14 for $147,000. I ! (306,500) 84 PWE 2014 Fleet Purchases; Not purchased in 2013 or 2014. Carryover to Fleet Capital 501.02.594.480.64 00 114,000 j 2015. 2014 Line 10 for $86,000 and Line 15 for $28,000. 1 4 of 5 13 Ref IDept I Explanation ! Acd 2015 Increase (Decrease) Desc ! Acct Expense ! Revenue ! Net Other 85 PWE Originally scheduled Fire Prevention's 1/2 -ton Pickup Unit #1226 to ,Fleet Capital ,501.02.594.480.64.00 50,000 1 (50,000) be replaced in 2018. Now purchase in 2015 with Fire making up the (Fire Dept I $18,474 price difference. _ - �.._..- ...._— _- -- - -- -__- - — — � - --- �- — � -- -_ _ __.__ „..... _._......__,. 86 PWE Equipment Replacement revenue from Fire Department Fleet Capital 501.348.301.00.00 18,474 18,474 Fire Dept — -- -- - - -- - -- - -_° -- --- - -- --p_ ___. _ . _ _. ----_; _.-..- ._..-.. _-._ ce _ —_ 1 -... _ _ _ ._ .. _ 0 87 ( PWE Use ending fund balance to pay for the expenditure carryovers and )Ending fund balance (501.02.298.800.00.00 (338,026)# � 338,026 rescheduled purchases. I Fleet Fund 501 EMPLOYEE HEALTHCARE FUND 502 From 2015 -16 Budget Process 41,474 1 88 Fin Adjust beginning fund balance based on 2014 actual ending fund Estimated Beginning Fund 502.293.700.00.00 (1,006,000)f balance jBalance 1 89 Fin Adjust ending fund balance based on beginning fund balance Estimated Ending Fund 502.00.293.800.00.00 (1,006,000) adjustment OBalance ( .__._..__..._ --- _._----- ...__,. _- _- --- ...._...._—_...._— _.,__ —___- - Total Employee Healthcare Fund 402 (1,006,000)' (1,006,000) RETIREE HEALTHCARE FUND 503 From 2015 -16 Budget Process 90 Fin Adjust beginning fund balance based on 2014 actual ending fund Estimated Beginning Fund 503.293.700.00.00 (262,000)1 balance (Balance ' I 4 . - ”" _ ._. _ - _ ..... - _.». " _•-. - -_ - ......... ..... _ _.... _ - - .,........,_. _ - _ .._,.............„ _ ._. - ... I.., - ....., ....,. _ ._......� - _ .�.. _ ...E _ �. _ .v......... ,...... _ ,,.� ..,......, ..., „ ... �,. .. _ .. _..... ,.�. ............. _..,....... ,. 91 I Fin Adjust ending fund balance based on beginning fund balance (Estimated Ending Fund (503.00.293.800.00.00 (262,000) adjustment Balance ---..__._____..__..-_...-__-- --- _- --- ---_____.._-..__ E__-.._-_.__.___.__--- L --- -.___..-_.._ —I ......- ,_�.- ...,...� ........... ...._._. +__ .,.___...._.. Total Retiree Healthcare Fund 503 (262,000)( (262,000) TOTAL AMENDMENT TO 2015 -2016 BIENNIAL BUDGET $ 1,219,520 $ 1,219,520 5of5 14 City of Tukwila • Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes July 21, 2015 — 5:30 p.m.; Hazelnut Conference Room PRESENT Councilmembers: Kathy Hougardy, Chair; De'Sean Quinn, Dennis Robertson (Absent: Joe Duffie) Staff: David Cline, Mike Villa, Bruce Linton, Peggy McCarthy, Bob Giberson, Gail Labanara, Rachel Bianchi, Jack Pace, Vicky Carlsen, Moira Bradshaw, Laurel Humphrey Guest: Gail Chase CALL TO ORDER: Chair Hougardy called the meeting to order at 5:30 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA Chair Hougardy announced that item 2a relating to arena project contracts would be held until August 18. There was consensus to amend the agenda to receive the 2015 2nd Quarter Police Department Report as the first item of business, and to hear public comment from Gail Chase, owner of ABC Towing, as the second item of business. A. 2015 2nd Quarter Police Department Report Assistant Chief Linton shared a presentation that updated the Committee on Police Department items of significance that occurred during the 2nd quarter of 2015. The information included a staffing update, 1St quarter highlights, and crime statistics. A map showing locations of residential burglaries was distributed. Councilmember Quinn suggested the Police Department work with Teens for Tukwila on youth engagement opportunities. INFORMATION ONLY. Update from ABC Towing Gail Chase from ABC Towing again addressed the Committee about her wish to contract with the City for towing services. The Committee noted that the City's towing contract is under the purview of the Police Department and the decision is made based upon cost savings and level of service. PUBLIC COMMENT. B. Ordinance: Amending the 2015 -2016 Biennial Budget Staff is seeking Council approval of an ordinance to amend the 2015 -2016 Biennial Budget. In the past, budget amendments were done once in the fall, but for 2015, an additional amendment ordinance has been prepared in order to capture the following: • Items known at the time the budget was published but not included due to time constraints; • Carryovers from 2014, other than capital projects • Other initiatives supported by Administration or Council • Items that are revenue backed with no effect on fund balance. 15 Finance & Safety Committee Minutes July 21, 2015 - Pape 2 Committee members asked clarifying questions about the information outlined in the memo and its attachments. For those items involving an increase or reduction in the beginning fund balance, the Committee requested that the memo be edited to include additional explanation. A public hearing is scheduled for July 27, 2015. UNANIMOUS APPROVAL. FORWARD TO JULY 27, 2015 COMMITTEE OF THE WHOLE FOR PUBLIC HEARING. C. Resolution: Adopting a Financial Reserve Policy Staff is seeking Council approval of a resolution that would revise the City's Financial Reserve Policy in three specific areas, described below: 1. Change the General Fund minimum balance from 10% to 18 %. The Committee reviewed and approved this proposal at its July 7, 2015 meeting and had no further comment. 2. Establish a One -time Revenue Reserve based on 10% of one -time revenues. This item was previously discussed at the July 7, 2015 meeting and the Committee made no recommendation pending additional information. Since then, the name of the proposed reserve has been changed from "Special Project Reserve" to "One -time Revenue Reserve." This reserve is based upon 10% of the prior year one -time revenues and will be stored in the contingency fund. In addition, there is a new provision that the reserve would be credited only if the General Fund surplus is sufficient to cover the reserve funding. As before, use of this reserve could occur only by Council resolution. Staff noted that although this reserve is proposed to be kept in the contingency fund, the accounting system is such that it will be easily identifiable as separate. Following discussion, committee members supported the proposed One -Time Revenue Reserve but requested that the full Council engage in a policy discussion regarding the parameters for spending these funds. It is expected that this discussion will occur at the July 27, 2015 Committee of the Whole. 3. Change the self - insured healthcare reserve minimums from 2.5 times the IBNR (incurred but not reported) to 1.5 times. The Committee reviewed and approved this proposal at its July 7, 2015 meeting and had no further comment. UNANIMOUS APPROVAL. FORWARD TO JULY 27, 2015 COMMITTEE OF THE WHOLE. D. General Revenue Sources Staff provided a comprehensive briefing on various options available to increase revenues, including information such as the amount available, mechanism, type and payee. Options discussed included levy lid lifts, voted bonds, Business & Occupation (B &O) tax, Transportation Benefit Districts, special purpose districts, admission tax, parking tax, Revenue Generating Regulatory License (RGRL), impact fees, Local Improvement District (LID), utility tax, and City -wide reduction of operating costs. The Committee expressed appreciation for the table included in the packet and distributed in color at the table. The following additional information was requested: • Estimated cost to the median homeowner for those items impacting property tax • Appendix indicating King County cities with TBD, B &O tax, levy lid lift, special purpose districts or other similar revenue generating mechanisms. • Admissions tax rates charged by neighboring cities. • Property tax rates of neighboring cities. 16