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HomeMy WebLinkAboutFIN 2017-03-21 Item 2C - Report - 2016 General Fund Preliminary Resultswq i City of Tukwila TO: CC: INFORMATIONAL MEMORANDUM Councilmembers Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: March 14, 2017 SUBJECT: 2016 December Year to Date Financial Report - Preliminary Summar Allan Ekberg, Mayor The purpose of the preliminary 2016 Annual Financial report is to summarize for the City Council the general state of General Fund financial affairs and to highlight significant items or trends. The following provides a high -level summary of the City's financial performance. Additional details can be found within the attached financial report. The 2016 Annual report is based on financial data available as of March 14th, 2017, for the reporting period ending December 31, 2016. Preliminary results for the year have resulted in a positive impact to the General Fund of $462 thousand. Revenues for the year were $58.9 million, which is less than budget due to the Tukwila Village sale not completed as budgeted. Expenditures were $58.5 million and below budget by $1.95 million. Revenues Expenditures General Fund 2016 Revenues vs Expenditures Actual $58.93 Budget Actual $58.47 Budget $57 $58 $59 $60 $60.41 $60.42 $61 Millions Allocated budgets through the reporting period are calculated by analyzing spend patterns in the previous year and allocating the current year budget using the same spend pattern. If a line item had no expenditures in the prior year but a budget in the current year, the allocated budget for the current year would be zero. 27 INFORMATIONAL MEMO Page 2 General Fund: The general fund is the City's largest fund and accounts for the majority of City resources and services, other than those required by statute to be accounted for in another fund. Services include governance, public safety, and administration. Revenues: Through December 2016, general fund revenues totaled $58.9 million compared to a budget of $60.4 million and were $150 thousand greater than revenues collected in 2015. Notable variances to budget for the year include: • Sales and use taxes, which includes local retail sales and use tax, natural gas tax, and criminal justice sales tax, totaled $18.9 million, which exceeds budget by $277 thousand and is slightly below collections in the same period last year by $428 thousand, or (2) %. • Gambling and excise taxes totaled $3.8 million and exceed budget by $589 thousand. One casino is under new ownership, and all casinos continue to do very well. • Intergovernmental — Grant category is above budget by $246 thousand. The City has received several small grants in 2016 that were not included in the final budget amendment. • Property tax collection is on target to meet budget. The majority of property tax revenues are collected during the months of April /May and October /November, coinciding with the due dates for the county property tax billings. 28 INFORMATIONAL MEMO Page 3 Year -to -Date General Fund Revenues Compared to Budget Property Taxes Sales & Use Taxes Admissions Tax Utility Tax Interfund Utility Tax Gambling & Excise Tax Licenses and Permits Intergovernmental Charges for Services Fines & Penalites Misc Indirect Cost Allocation Tukwila Village Land Sale $14.49 $14.76 • $0.69 • $0.72 $4.05 $4.11 $2.15 $1.98 1 $3.79 $3.20 ■ $3.97 ■ $4.04 $4.92 $5.10 $2.30 $2.55 $0.30 1 $0.23 ME $1.13 $0.79 $2.23 $2.23 $0.00 $18.91 $18.63 $2.08 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Millions ■ Year to Date • Budget 29 INFORMATIONAL MEMO Page 4 Expenditures: General fund expenditures totaled $58.5 million as compared to a budget of $57.6 million, which is $1.9 million below budget. All departments incurred lower fleet maintenance cost of $447 thousand and fleet replacement costs of $340 thousand in 2016. Salaries and Benefits for 2016 came in $590 thousand lower than budget, this was a result of lower spending in overtime by $279 thousand and related benefits. Notable variances are as follows: • Police department came in below budget by $934 thousand. Salaries and Benefits contributed $324 thousand, Fleet costs were $378 thousand lower, Repairs and Maintenance $115 thousand lower and Jail costs ended the year $103 thousand lower than expected. • Fire department is below budget by $222 thousand. This is attributed to the use of 3 pipeline positions to maintain minimum staffing levels which resulted in lower overtime costs by $168 thousand compared to 2015. • Technology Services exceeded budget by $42 thousand. Primarily due to a payout on a vacated position. • Park department exceeded budget by $40 thousand. The department experienced two emergency repairs, replacement of a guardrail at a cost of $9 thousand and trail repairs costing $36 thousand. Both repairs are being submitted to insurance for potential reimbursement. • Street department is below budget by $265 thousand. Salaries and Benefits contributed $88 thousand and Fleet costs were $174 thousand lower than expected. 30 INFORMATIONAL MEMO Page 5 Year to Date Department Expenditures Compared to City Council Mayor Human Resources Finance Attorney Recreation Community Dev. Municipal Court Police Fire Tech. & Innovation Public Works Park Maintenance Street Maint & Ops Dept 20 ■ $0.33 ■ $0.35 • $0.65 ■ $0.67 $2.14 $2.35 ■ $0.53 • $0.61 $3.86 $3.98 $2.94 $2.94 $3.21 $3.35 ■ $1.16 ■ $1.16 Budget $1.52 MN $1.47 $1.45 $1.41 $3.69 $3.75 $2.90 $3.16 $4.76 $4.70 $11.49 $17.86 ■ $18.79 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 • Year to Date •Allocated Budget Millions 31 GENERAL FUND CITY OF TUKWILA GENERAL FUND REVENUES YTD AS OF DECEMBER 31, 2016 3/15/2017 11:00 SUMMARY BY REVENUE TYPE BUDGET ACTUAL COMPARISON OF RESULTS 2016 ANNUAL 2016 ALLOCATED 2014 2015 2016 OVER/(UNDER) % RECD % CHANGE ALLOCATED BDGT 2014/2015 2015/2016 PROPERTY TAX 14,759,046 14,759,046 14,186,753 14,323,133 14,494,747 (264,299) 98% 1% 1% SALES TAX 18,631,462 18,631,462 17,105,322 19,334,152 18,908,190 276,728 101% 13% (2)% ADMISSIONS TAX 716,000 716,000 616,531 687,741 692,417 (23,583) 97% 12% 1% UTILITY TAX 4,105,084 4,105,084 3,855,544 4,019,288 4,045,916 (59,168) 99% 4% 1% INTERFUND UTILITY TAX 1,981,000 1,981,000 1,851,013 2,061,098 2,146,515 165,515 108% 11% 4% GAMBLING & EXCISE TAX 3,200,684 3,200,684 2,807,926 2,908,043 3,789,467 588,783 118% 4% 30% TOTAL GENERAL REVENUE 43,393,276 43,393,276 40,423,090 43,333,455 44,077,252 683,976 102% 7% 2% RGRL 1,875,141 1,875,141 1,795,933 1,867,913 1,809,567 (65,574) 97% 4% (3)% BUSINESS LICENSES 846,691 846,691 858,907 861,484 825,027 (21,664) 97% 0% (4)% RENTAL HOUSING 35,000 35,000 35,020 49,675 45,590 10,590 130% 42% (8)% BUILDING PERMITS 1,283,970 1,283,970 1,220,711 1,331,097 1,290,894 6,924 101% 9% (3)% TOTAL LICESNSES AND PERMITS 4,040,802 4,040,802 3,910,571 4,110,169 3,971,078 (69,724) 98% 5% (3)% SALES TAX MITIGATION 1,140,000 1,140,000 1,137,765 1,132,568 1,122,040 (17,960) 98% (0)% (1)% FRANCHISE FEE 2,267,208 2,267,208 2,277,063 2,172,395 2,092,358 (174,850) 92% (5)% (4)% GRANT 605,664 605,664 867,240 552,874 851,536 245,872 141% (36)% 54% STATE ENTITLEMENTS 381,594 381,594 360,946 303,636 307,101 (74,493) 80% (16)% 1% INTERGOVERNMENTAL 701,421 701,421 484,526 510,486 548,919 (152,502) 78% 5% 8% TOTAL INTERGOVERNMENTAL REVENUE 5,095,887 5,095,887 5,127,541 4,671,959 4,921,953 (173,934) 97% (9)% 5% GENERAL GOVERNMENT 51,713 51,713 110,768 58,212 41,945 (9,768) 81% (47)% (28)% SECURITY 766,798 766,798 997,082 661,388 781,484 14,686 102% (34)% 18% TRANSPORTATION 109,000 109,000 (30,321) 33,961 71,118 (37,882) 65% (212)% 109% PLAN CHEK AND REVIEW FEES 1,141,210 1,141,210 768,781 1,088,243 807,276 (333,934) 71% 42% (26)% CULTURE AND REC FEES 483,656 483,656 474,305 561,535 593,854 110,198 123% 18% 6% TOTAL CHARGES FOR SERVICES 2,552,377 2,552,377 2,320,614 2,403,340 2,295,677 (256,700) 90% 4% (4)% FINES & PENALTIES 228,829 228,829 250,114 248,321 295,474 66,645 129% (1)% 19% MISC 787,254 787,254 894,559 909,556 1,134,725 347,471 144% 2% 25% INDIRECT COST ALLOCATION 2,233,476 2,233,476 2,089,178 2,255,320 2,233,476 - 100% 8% (1)% TRANSFERS IN (TUKWILA VILLAGE) 2,075,000 2,075,000 2,900,000 850,000 - (2,075,000) 0% (71)% (100)% TOTAL REVENUE 60,406,901 60,406,901 57,915,666 58,782,120 58,929,635 (1,477,266) 98% 1% 0% 32 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF DECEMBER 31, 2016 3/15/2017 11:00 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2016 ANNUAL 2016 ALLOCATED 2014 2015 2016 ACTUAL OVER /(UNDER) % CHANGE ALLOCATED BDGT % SPENT 2014/2015 2015/2016 01 City Council 350,065 350,0651 296,217 312,202 327,433 ' (22,632) 94% 5% 5% 03 Mayor 3,984,049 3,984,049 3,260,538 3,630,627 3,863,399 (120,650) 97% 11% 6% 04 Human Resources 674,329 674,329 650,743 619,343 647,426 (26,903) 96% (5)% 5% 05 Finance 2,348,000 2,348,000 2,144,962 2,185,415 2,137,628 (210,372) 91% 2% (2)% 06 Attorney 608,418 608,418 515,908 591,440 530,725 (77,693) 87% 15% (10)% 07 Recreation 2,942,124 2,942,124 2,650,291 2,870,724 2,937,733 (4,391) 100% 8% 2% 08 Community Development 3,346,430 3,346,430 2,809,132 3,096,757 3,209,879 (136,551) 96% 10% 4% 09 Municipal Court 1,163,679 1,163,679 1,090,382 1,194,059 1,155,400 (8,279) 99% 10% (3)% 10 Police 18,789,762 18,789,762 15,752,642 16,912,835 17,855,697 (934,065) 95% 7% 6% 11 Fire 11,710,304 11,710,304 11,361,376 11,724,461 11,487,981 (222,323) 98% 3% (2)% 12 Technology & Innovation Svcs 1,473,466 1,473,466 1,234,710 1,246,259 1,515,832 42,366 103% 1% 22% 13 Public Works 3,751,266 3,751,266 3,194,902 3,421,257 3,686,312 (64,954) 98% 7% 8% 15 Park Maintenance 1,414,251 1,414,251 1,138,319 1,367,462 1,454,172 39,921 103% 20% 6% 16 Street Maintenance & Operations 3,162,762 3,162,762 2,614,100 2,826,851 2,897,968 (264,794) 92% 8% 3% 20 Dept 20 4,700,831 4,700,831 8,800,080 5,560,846 4,759,513 58,682 101% (37)% (14)% Total Expenditures 60,419,736 60,419,736 57,514,302 57,560,536 58,467,099 (1,952,637) 97% 0% 2% Percent of year completed 100.00% 33 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF DECEMBER 31, 2016 SUMMARY OF SALARIES AND BENEFITS ' BUDGET BUDGET ACTUAL ACTUAL COMPARISON OF RESULTS 2016 ANNUAL 2016 ALLOCATED 2014 2015 2016 ACTUAL OVER /(UNDER) % CHANGE ALLOCATED BDGT % SPENT 2014/2015 2015/2016 11 Salaries 26,443,444 26,443,444 24,674,711 25,724,920 26,300,633 (142,811) 99% 4% 2% 12 Extra Labor 564,805 564,805 487,039 631,925 627,034 62,229 111% 30% (1)% 13 Overtime 1,798,299 1,798,299 2,037,195 1,754,484 1,519,183 (279,116) 84% (14)% (13)% 15 Holiday Pay 527,286 527,286 214,940 213,405 437,045 (90,242) 83% (1)% 105% 21 FICA 1,683,442 1,683,442 1,588,266 1,652,915 1,696,260 12,818 101% 4% 3% 22 Pension- LEOFF2 826,417 826,417 772,136 824,630 815,296 (11,121) 99% 7% (1)% 23 Pension - PERS /PSERS 1,364,568 1,364,568 1,086,492 1,227,888 1,385,867 21,299 102% 13% 13% 24 Industrial Insurance 708,929 708,929 506,143 629,025 678,200 (30,729) 96% 24% 8% 25 Medical & Dental 5,722,878 5,722,878 4,496,574 5,251,282 5,583,572 (139,306) 98% 17% 6% 26 Unemployment 13,000 13,000 32,633 6,672 40,380 27,380 311% (80)% 505% 28 Uniform /Clothing 25,235 25,235 4,202 5,831 5,002 (20,233) 20% 39% (14)% Total Salaries and Benefits 39,678,303 39,678,303 35,900,330 37,922,976 39,088,470 (589,833) 99% 6% 3% Percent of year completed 100.00% Percent of year completed 34 100.00% SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2016 ANNUAL 2016 ALLOCATED 2014 2015 2016 ACTUAL OVER /(UNDER) CHANGE ALLOCATED BDGT % SPENT 2014/2015 2015/2016 Transfers 4,700,831 4,700,831 8,800,080 5,560,846 4,759,513 58,682 101% (37)% (14)% 31 Supplies 1,075,938 1,075,938 1,024,425 1,127,164 1,271,622 195,684 118% 10% 13% 34 Items Purchased for resale 14,428 14,428 32,850 31,681 22,500 8,072 156% (4)% (29)% 35 Small Tools 216,804 216,804 183,116 303,223 108,922 (107,882) 50% 66% (64)% 41 Professional Services 3,156,440 3,156,440 2,300,112 2,822,972 2,776,466 (379,974) 88% 23% (2)% 42 Communication 386,671 386,671 325,825 342,278 407,499 20,828 105% 5% 19% 43 Travel 156,028 156,028 131,650 139,251 143,012 (13,016) 92% 6% 3% 44 Advertising 55,250 55,250 25,843 29,243 24,222 (31,028) 44% 13% (17)% 45 Rentals and Leases 2,621,822 2,621,822 2,250,835 2,486,469 1,845,849 (775,973) 70% 10% (26)% 46 Insurance 820,455 820,455 678,550 704,347 810,799 (9,656) 99% 4% 15% 47 Public Utilities 1,805,726 1,805,726 1,490,645 1,697,398 1,828,751 23,025 101% 14% 8% 48 Repairs and Maintenance 817,892 817,892 594,516 699,233 850,278 32,386 104% 18% 22% 49 Miscellaneous 1,252,732 1,252,732 1,139,777 1,093,377 1,032,246 (220,486) 82% (4)% (6)% 51 Inter - Governmental 2,774,711 2,774,711 2,204,293 2,403,442 2,698,335 (76,376) 97% 9% 12% 52 - - 24,001 - - - - - - 53 Ext Taxes, Oper. Assess 5 5 53 49 12 7 245% (7)% (75)% 64 Machinery & Equipment 885,700 885,700 407,400 196,589 798,601 (87,099) 90% (52)% 306% Total Supplies, Services, and Capital 20,741,433 20,741,433 21,613,972 19,637,561 19,378,629 (1,362,804) 93% (9)% (1)% Percent of year completed 34 100.00%