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HomeMy WebLinkAboutREG 2017-06-05 Item 5B - Powerpoint Presentation Shown at Meeting - 2016 Annual Financial Report2016 Annual Financial Report City of Tukwila June 5, 2017 2016 Financial Highlights 1. Reserve Policy compliance 2. Investment in Public Safety 3. Investment in Technology 4. General fund ongoing revenues exceed department expenditures 5. Departmental expenditures within budget • Reserve Policy Compliance • The general fund ending fund balance of $11.84 million exceeds the minimum requirement of $10.23 • million by $1.61 million. • Reserve Policy: The general fund minimum fund balance must equal or exceed 18% of the prior year ongoing general fund revenues. • The contingency fund ending fund balance of $6.05 million also met the minimum requirement. • Reserve Policy: The contingency fund minimum fund balance must equal or exceed 10% of the prior year ongoing general fund revenues plus 10% of the prior year one -time general fund revenue. June 5, 2017 2016 Annual Financial Report 3 • Investment in Public Safety • Voters approved $77.385 million bond measure. • Justice Center to house Police and Court • Rebuild 3 fire stations • Provide fire apparatus and equipment for 20 years • Bonds issued in December June 5, 2017 2016 Annual Financial Report • Investment in Technology • Police RMS system • Recreation software • Office 365 • Help desk support June 5, 2017 2016 Annual Financial Report • General fund ongoing revenues exceed department expenditures Ongoing Revenue Compared to Department Expenditures 2016 2015 2014 $59.0 $53.5 $57,9 $52.0 $55,0 $48,7 50 510 520 530 540 550 560 Millions • Revenues • Expenditures • Departmental expenditures within budget General Fund 2016 Department Expenditures Actual Budget $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 Millions June 5, 2017 2016 Annual Financial Report 7 • Ongoing General Fund Revenues total $59M • Taxes = $44M or 75% of total June 5, 2017 Intergovernmental, $SM, 8% Licenses /Permits, $4M, 7% Sales tax, $19M, 3 % 2016 Annual Financial Report Other ongoing revenues, $6M, 1O% 8 Departmental Expenditures of $58.5M SUPPLIES AND CAPITAL, $2M, 4% By Expenditure Type INTERGOVERNMENTAL, $3M, 5% SALARIES, $29M, 54% June 5, 2017 COMMUNITY DELI. $3M, 6% 2016 Annual Financial Report By Department POLICE $16M, 32% RECREATION & PARKS $4M, 8% FIRE $12M, 22% PUBLIC WORK $7M, 12% MAYOR, ** $4M, 7% 9 • Total Departmental Budget Savings of $1.9M or 3.1 > Departments experiencing very positive results include: Police 95% $934K Finance 91% $210K Community Development 96% $137K Mayor 97% $121K City Attorney 87% $78K Street Maintenance 92% $265K June 5, 2017 2016 Annual Financial Report 10 • $20 o $18 3 $16 $14 $12 $10 $8 $6 $4 $2 $0 June 5, 2017 Department Expenditures Police Fire 2014 • 2015 • 2016 $7 $6 $5 $4 $5 $2 $1 50 Departmental Expenditures 2014 — 2016 Actuals Department Expenditures 1 11 PW Recreation DCD Mayor Support 2014 M 201 ■2016 2016 Annual Financial Report 11 • Ongoing Revenues less Ongoing Expenditures = Amount Available for capital projects, reserves, other 2013 $ 52.1 $ 47.3 $2.9 $ 50.2 $ 1.9 2014 $54.2 $48.7 $3.2 $51.9 $3.1 2015 $56.8 $52.0 $2.8 $54.8 $2.0 2016 $58.2 $53.8 $2.9 $56.7 $1.5 June 5, 2017 2016 Annual Financial Report • Highlights of Other Governmental Funds • REET $985K in December, total $2.7M split between Arterial Street and Land Acquisition, Rec, Park Development Funds. • Cascade View Safe Routes to School Phase II began in 2016. • 42nd Ave S and 53rd Ave S sidewalk projects in design, construction delayed until 2017. • TUC Pedestrian Bridge groundbreaking held August 2016, and BAR Bridge Rehabilitation construction delayed until 2017. • Substantial progress on Duwamish Gardens project. • 4 motels demolished on TIB. June 5, 2017 2016 Annual Financial Report 13 $8.0 7.0 6.0 5.0 4.0 $3.0 $2.0 1.0 0.0 Enterprise Funds Fund Balances 2014 - 2016 in Millions Surface Water ❑ 2016 Actual s June 5, 2017 2016 Annual Financial Report 14 • $5.0 $4.0 $3.0 $2.0 1.0 $0.0 Internal Service Funds Fund Balances 2014 -2016 in Millions J Equipment Rentaf,Replacement Insurance Employees Insurance LEOFF 1 Retirees • 2014 Actuals $4.7 $2.5 $0.2 ❑ 2015 Actuals $4.5 $2.0 $0.8 ❑ 2015 Actuals $4.4 $1.5 $0.9 June 5, 2017 2016 Annual Financial Report 15 • Looking Forward > Economic forecast is strong through 2017. • King County Office of Economic Development indicates county -wide assessed value growth rate of 10% in 2017, 8% in 2018. • Sales tax growth rate projected to be 5% in both 2017 and 2018. • Seattle inflation rates (CPI -U) estimated to hit 3% in 2017; highest rate since 2008. > Focus on financial fundamentals • Adherence to strong and sound financial reserve policy. • Prudent use of City resources aligned with City's strategic goals. • Continued enhancements to financial reporting. • Enhanced budget process. June 5, 2017 2016 Annual Financial Report 16 • Q &A The city of opportunity, the community of choice. May 8, 2017 2016 Annual Financial Report 17