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Home My WebLink AboutCOW 2016-09-26 Item 3E.3 - Budget Review - 2017-2018 Biennial Budget: Firemen's PensionCOUNCIL AGENDA SYNOPSIS ---------------------------------- 1ilil, Meeliq Date Prepared by Ma ors review Council review 09/26/16 VC ERZIUE�� ITEM NO. 3.E. (3) 95 STAFF SPONSOR: VICKY CARLSEN 1 ORIGINAL, 9/26116 AGENDA I,n-,,m TiTI-.j,,1 Review Firemen's Pension 2017-2018 Proposed Budget CxI,Ix30Ry Z Discussion ,g Date 9126116 Mt ❑ motion A/4g Date 1:1 Resolution Mi ,g Dale F-1 Ordinance A/f�q Date F-1 Bid.Award Mig Date ❑ Publit, Heariq AR g Dale ❑ Otber M/g Date SPONSOR ❑ Council ❑ Mayor [:] HR ❑ DCD Z Finance ❑ Fire [:1 TS [:] P&R ❑ Police [:] P117 SPONSOR'S Council is being asked to review the Firemen's Pension Fund 2017-2018 proposed budget. SUNINI,\RY If no changes are requested, Council concensus will be requested to move the City Council department 2017-2018 proposed budget forward to the final budget package for approval in November. REVIE'WHD By ❑ cow Mtg. ❑ CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. F-1 Planning Comm. DATE: 9/20/16 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR /ADMIN. Finance COMMIl'I'E'E For Information Only; Forward to Committee of the Whole COST IMPACT / FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 9/26/16 MTG. DATE ATTACHMENTS 9/26/16 Informational Memorandum dated 9/13/16 Draft Firemen's Pension Fund 2017 - 2018 Proposed Budget Minutes from the Finance and Safety Committee meeting 9/20/16 95 U-9 City of Tukwila Allan Mayor INFORMATIONAL MEMORANDUM TO: Finmnoe& Safety Committee FROM: Peggy McCarthy, Finance Director BY: ViokvCmr|agn. Deputy Finance Director DATE: September 13.201G SUBJECT: Firemen's Pension Fund 2017-2018 Proposed Budget ISSUE As provided for in the budget process approved by the Finance and Safety Committee, Council Committees will b8 reviewing budget sections prior k} review bv the full Council. The Firemen's Pension fund section of the budget is ready for review by the Finance and Safety Committee. BACKGROUND The Firemen's Pension Fund exists to support 10 firefighters who qualified for a City pension system prior to 1971. Members of the Tukwila Firemen's Pension system receive benefits from the LEDFF 1 system provided byVVAState Department ofRetirement Systems. State |evv requires the City to compute the benefits under the prior pension system (City's pension system) asif transfer of membership had not occurred. The retirees are paid the difference (if any) between the pension benefit they would have received from the City's plan and the benefit received from the LE[}FF retirement system. DISCUSSION The proposed budget for the Firemen's Pension fund are 8Sfollows: • COLA increases of 2% have been applied to revenue received from the fire insurance pnrnniunn tax. • The budget for the supplemental pension has been reduced to reflect historical activity. • Net adjustment to fund balance due to these changes reflect an increase in fund balance of3.81%in2U17 and a0.3996 decrease in2U1O. The fund retains a healthy fund balance through the biennium. RECOMMENDATION Staff recommends that the Finance and Safety Committee forward this section of the budget on to the Committee of the Whole for review. If there are no recommended changes, Council consensus will be requested to move this departmental budget forward to the final budget package inOctober. ATTACHMENTS Draft Firemen's Pension fund 2017-2018 Proposed Budget •• tMej DEPARTMENT: N/A DIVISION: N/A FUND: Firemen's Pension FUND NUMBER: 611 RESPONSIBLE MANAGER: Peggy McCarthy POSITION: Director Description This fund exists to support ten (10) firefighters who qualify for a City pension system prior to 1971 Firemen's Pension Fund 611 • 6 Actual Projected Budget 2016 -17 2017 -18 2014 2015 2016 2016 2017 2018 %Change %Change Operating Revenue Fire Insurance Premium Tax $ 64,114 $ 63,590 $ 66,360 $ 56,650 $ - $ - 0.00% 0.00% Interest 1,805 2,667 5,594 2,000 2,000 2,000 0.00% 0,00% Transfer In -Fire Ins Prem Tax - - - - 67,687 69,041 0.00% 2.00% Total Revenue 65,919 66,258 71,954 58,650 69,687 71,041 18.82% 1.94% Operating Expenses Supplemental Pension 61,863 58,277 61,727 107,727 62,727 66,491 - 41.77% 6.00% Services - 4,500 19,000 25,000 10,000 10,000 - 60.00% 0.00% Total Expenses 61,863 62,777 80,727 132,727 72,727 76,491 - 4511% 5.17% Beginning Fund Balance 1,408,970 1,413,026 1,416,507 1,425,923 1,407,734 1,404,694 -1.28% - 0.22% Change in Fund Balance 4,056 31481 (8,773) (74,077) (3,040) (5,450) - 95.90% 79,28% Ending Fund Balance $1,413,026 $1,416,507 $1,407,734 $ 1,351,846 $ 1,404,694 $ 1,399,244 3.91% -0.39% • 6 100 Finance and Safety Committee Minutes .......................................................................... ............................... September20, 2016 C. Budget Review - Multiple Departments Pursuant to the process requested by Council earlier this year, sections of the proposed 2017- 2018 budget are being presented to standing Council Committees prior to moving forward through the full Council review process. Staff presented proposed 2017 -2018 budgets for the following departments and divisions: Firemen's Pension Fund, Human Resources, Finance, Mayor's Office Administration, City Attorney, City Clerk, Communications, Economic Development, Human Services and Boards and Commissions. Committee members discussed the proposals as detailed in the agenda packet and requested additional supporting documents as follows. Mayor's Office, Human Services Division: Chart showing the Human Services budget for the past 20 years. Funding for this division has remained relatively steady and the Committee would like the full Council to discuss this. Mayor's Office, Communications Division: Currentjob description and monthly work plan for the Community Engagement Manager position. The Committee would like a greater understanding of the goals of this position. COMMITTEE DISCUSSION. FORWARD TO SEPTEMBER 26, 2016 COMMITTEE OF THE WHOLE WITH REQUESTED DOCUMENTS. D. 2016 Budget Amendment: Innovation and Technology Services Staff is seeking Council approval of an amendment increasing the Innovation and Technology (ITS) Department's 2016 budget by $170,000. $82,000 would go toward Help Desk support from October through December, allowing ITS staff to spend time on other critical technology needs such as online registration for Parks and video cameras on Tukwila International Boulevard. The remaining $88,000 would be used to develop a user portal and persona- driven Information Technology Service Management (ITSM) to improve service to technology users. Cost savings from other departments will cover the total amount requested so there will be no impact to the General Fund. Councilmembers Seal and Robertson spoke in favor of supporting technology needs with additional funds, mentioning current deficiencies. Councilmember Kruller raised concerns about the proposals not aligning with recommendations from the Moss Adams IT assessment that was conducted in 2014. The Committee requested documentation outlining where the proposed strategy diverges from Moss Adams recommendations. NO RECOMMENDATION. FORWARD TO SEPTEMBER 26, 2016 COMMITTEE OF THE WHOLE WITH SUPPORTING MATERIAL. E. Innovation and Technology Services Department Proposed 2017 -2018 Budget Staff is seeking Council approval of a proposed 2017 -2018 budget for the Department of Innovation and Technology Services, including an increase of $362,980 in 2017 and $329,980 in 218 as well as additional salary and benefits resulting from the transfer of 3 existing FTEs from other departments (Police and Public Works). Committee members discussed the proposal and asked clarifying questions. Chair Seal noted that service efficiencies are needed and the City should effectively communicate service enhancements to the community. NO RECOMMENDATION. FORWARD TO SEPTEMBER 26, 2016 COMMITTEE OF THE WHOLE. 101