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Home My WebLink AboutCOW 2015-11-23 Item 3 - Powerpoint Presentation - 2015-2016 Biennial Budget Amendment2015 -16 Mid- Biennium Budget Amendments City of Tukwila November 23, 2015 2015 -16 Mid - Biennium Budget Amendments Purpose • RCW 35.34.130, "Budget — Mid - biennial review and modification" • Budget amendments to adjust for new events and circumstances and to ensure sufficient budget exists to cover expenditures on a fund level and, for the General Fund, on a department level as well. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 2 2015 -16 Mid - Biennium Budget Amendments Financial Picture City is on track to meet Reserve Policy for 2015. 1. General Fund balance will equal or exceed 18% of 2014 General Fund ongoing revenue. 2. Contingency fund balance will equal or exceed 10% of 2014 General Fund ongoing revenue. 3. One -time revenue reserve will be funded at 10% of 2014 one- time revenue. For 2016, Reserve Policy expected to be met. If forecasts shift, Council will be notified in a timely manner and consideration will be given to taking budgetary action. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 3 2015 -16 Mid - Biennium Budget Amendments Budget Amendment Categories *1. Existing service levels and plans 2. Revenue backed 3. Carryovers *4. Initiatives November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 4 2015 -16 Mid - Biennium Budget Amendments Category 1. Existing Service Levels and Plans • Police and Fire Departments - added expenditure budget • Other departments — reduction in expenditure budget • Land sale postponement- reduction in revenue budget • Sales tax increase - added revenue budget November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 5 2015 -16 Mid - Biennium Budget Amendments Police Department Additional Budget • $420K in 2015 and $643K in 2016 • Salaries — special payments • Employee benefits on overtime • SCORE jail costs 2016 • Page 11 for narrative • Pages 41 -42 for 2015 3rd Quarter financial results 2015 -16 Mid - Biennium Budget Amendments Fire Department Additional Budget • $680K in 2015 and $713K in 2016 • Salaries — special payments • Overtime • Employee benefit on overtime • Pages 11 -12 for narrative • Pages 43 -44 for 2015 3rd Quarter financial results 2015 -16 Mid - Biennium Budget Amendments Under Expenditure by Other Departments • $1.18M underspending in other departments expected to offset additional Police and Fire budget in 2015. • Page 31 for 2015 3rd Quarter department expenditure summary. • Although not reflected in the 2016 budget amendments, departmental budgetary savings are also expected in 2016. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 8 2015 -16 Mid - Biennium Budget Amendments Land Sales Postponed Reduction in one -time revenue budget • $1.2M in 2015, Tukwila Village and former Fire Station 53 • $1.6M in 2016, Longacres parcels • General Fund contribution to Arterial Street fund is reduced by $1.6 million as a result of the Longacres land sale postponement. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 9 2015 -16 Mid - Biennium Budget Amendments Sales Tax Revenue Increase • In 2015 revenue budget increased by $1.7 million in 2016 by $1 million. • Actual sales tax collections through August 2015 are $1.7M more than budget. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 10 2015 -16 Mid - Biennium Budget Amendments Category 4. Initiatives- General Fund • Police Records Management System • 2015 $137K • 2016 $474K • Police COPS grant, City match • 2016 $200K • Recreation Green City Partnership • 2015 $10K • 2016 $30K 2015 -16 Mid - Biennium Budget Amendments Category 4. Initiatives - Other Funds • Residential Streets — Cascade View Safe Routes to School additional grant funding, City match of $89K • Arterial Streets — Strander Extension, $2M to jump start project; General Fund transfer in reduced by $1.6M due to postponement of Longacres land sale. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 12 2015 -16 Mid - Biennium Budget Amendments Summary City is on track to meet Reserve Policy goals for 2015. Reserve Policy requirements are expected to be met in 2016 as well. Should forecasts shift, Council will be notified in a timely manner and consideration will be given to taking budgetary action. November 23, 2015 2015 -16 Mid - Biennium Budget Amendments 13 2015 -16 Mid - Biennium Budget Amendments Other Funds November 23, 2015 Questions The city of opportunity, the community of choice. 2015 -16 Mid - Biennium Budget Amendments 14