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HomeMy WebLinkAboutFIN 2017-09-19 Item 2B - Report - July 2017 Budgets-to-Actuals ReportCity of Tukwila INFORMATIONAL MEMORANDUM TO: Councilmembers CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: September 11, 2017 SUBJECT: 2017 July Year to Date Financial Update Summary Allan Ekberg, Mayor The purpose of the 2017 Financial report is to summarize for the City Council the general state of Departmental expenditures and to highlight significant items or trends. The following provides a high-level summary of the Departmental financial performance. The 2017 July YTD report is based on financial data available as of September 11th, 2017, for the reporting period ending July 31st, 2017. Additional details can be found within the attached financial report. 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. Departmental Expenditures General fund expenditures totaled $33.4 million as compared to the allocated budget of $36.0 million, which is $2.6 million below budget. Notable variances are as follows: • While the fire department is below the allocated budget by $66 thousand, salaries and benefits exceed budget by $151 thousand. This is attributed to the staffing of the unbudgeted pipeline positions (5 vs 3 in 2016) to maintain minimum staffing levels and backfill for retirements. Overtime is now below allocated budget by $50 thousand, however, spending is $34 thousand greater than 2016 through the same period. Additionally, labor contracts have not yet been settled. While the budget includes a cost - of -living adjustment of 2%, actuals do not reflect contract settlement terms. • Park department exceeded budget by $107 thousand. This is a result of the department being fully staffed in 2017 compared to 2016. The department also incurred a higher level of spending on supplies as they are being more proactive and intentional in the planning and preparation for busier summer months. A billing timing difference for surface water charges in July vs. August in the prior year has resulted in an additional expense of $60K for July. • Street department exceeded budget by $256 thousand. This is a result of a billing timing difference for surface water charges in July vs. August in the prior year. This has resulted in an additional expense of $415K for July. • Transfers from the general fund into capital projects funds through July have not been recorded. Rather than transferring funds automatically, we will be transferring funds into the capital projects funds as needed. 11 INFORMATIONAL MEMO Page 2 • Salaries and benefits are lower through July due to negotiations for the bargaining units. The following table estimates the additional general fund expenditure through July that could be recorded once contract agreements are approved. It should be noted that the budget reflects 2% COLA as a place - holder when the budget was drafted. Percent Increase Estimated Cost through July 2017 1.5% $285,000 2.0% $380,000 2.5% $475,000 • Rents and leases are below budget by $528 thousand. The primary reason is a timing difference in the way the allocated budget is calculated. A credit was applied in December of 2016 to true -up O&M as well as capital costs at the end of the year. It is anticipated that by the end of the year, rents and leases will be very close to budget rather than under budget. Year to Date Department Expenditures Compared to Allocated Budget (Through July 2017) City Council J $198 Mayor III $227 Human Resources 1111 $391 $435 Finance Attorney $221 $362 Recreation Community Dev Municipal Court .11. $702 _ $743 Police Fire Tech. & Innovation Public Works Park Maintenance Street Maint & Ops Dept 20 12 $2,076 52,201 $1.487 $1,694 $1.824 $1,846 $1.872 $2,100 $954 $1.029 1111111111111a$2,057 $2.191 $854 $748 $2.032 $1.777 $1,518 $2.848 $6,839 $6,904 $10,397 $10,931 50 $1,000 S2,000 $3.000 $4.000 55,000 $6.000 $7.000 $8.000 $9.000 510.000 $11,000 $12,000 Thousands ■ Year to Date •Allocated Budget INFORMATIONAL MEMO Page 3 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES YTD AS OF J ULY 31, 2017 9/11/2017 11:32 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2015 2016 2017 ACTUAL OVER/(UNDER) %CHANGE ALLOCATED BOGT %SPENT 2015/2016 2016/2017 01 City Council 366,016 227,361 186.835 197,384 197,584 (29,778) 54% 6% 0% 03 Mayor 4,079,582 2,200,531 1,838,897 2,135,697 2,076,297 (124,234) 51% 16% (3)% 04 Human Resources 706,208 435,377 358,445 392,824 391,059 (44,319) 55% 10% (0)% 05 Finance 2,638,813 1,694,498 1,633,438 1,406,494 1,487,444 (207,054) 56% (14)% 6% 06 Attorney 716,955 361,708 306,196 267,789 220,974 (140,735) 31% (13)% (17)% 07 Recreation 3,384,688 1,845,734 1,675,540 1,734,835 1,824,121 (21,613) 54% 4% 5% 08 Community Development 3,693,338 2,100,327 1,632,047 1,842,790 1,872,490 (227,837) 51% 13% 2% 09 Municipal Court 1,307,808 743,324 638,840 667,201 702,376 (40,948) 54% 4% 5% 10 Police 18,288,092 10.930.784 9,917,997 10,470,593 10,397,450 (533,334) 57% 6% (1)% 11 Fire 11,862,568 6,904,214 6,752,424 6,628,627 6,838,622 (65,592) 58% (2)% 3% 12 Technology& Innovation Svcs 2,026,820 1,029,264 593,703 676,328 953,536 (75,729) 47% 14% 41% 13 Public Works 3,802,639 2,191,494 1,944,930 2,135,752 2,056,631 (134,863) 54% 10% (4)% 15 Park Maintenance 1,418,760 747,867 722,716 698,646 854,369 106,502 60% (3)% 22% 16 Street Maintenance & Operations 3,109,592 1,776,843 1,414,877 1,662,503 2,032,463 255,620 65% 18% 22% 20 Dept20 5,237,691 2,848,136 2,504,923 2,588,114 1,518,002 (1,330,134) 29% 3% (41)% Total Expenditures 62,639,570 36,037,464 32,121,809 33,505,577 33,423,417 (2,614,047) 53% 4% (0)% Percent o year completed 58.33 % 13 INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OFJULY 31, 2017 9/11/2017 11:32 SUMMARY OF SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVER/WM(3i) %CHANGE ALLOCATED BDGT %SPENT 2016/2016 2016/2017 11 Salaries 27,560,991 16,113,468 14,859,949 15,379,556 15,604,254 (509,214) 57% 3% 1% 12 Extra Labor 777,897 402,762 340,893 384,131 384,589 (18,173) 49% 13% 0% 13 Overtime 1.632,035 949,553 1,040,968 832,880 952,697 3,143 58% (20)% 14% 15 Holiday Pay 525,583 77,373 4,767 79,341 77,807 434 15% 1564% (2)% 21 FICA 1,809,260 1,063,835 966,800 1,000,601 1,027,724 (36,111) 57% 3% 3% 22 Pension-LEOFF2 849,253 473,932 456,261 463,873 472,108 (1,823) 56% 2% 2% 23 Pension-PERS/PSERS 1,580,986 924,752 661,037 806,915 849,675 (75,077) 54% 22% 5% 24 Industrial Insurance 864,098 465,058 330,940 373,009 355,971 (109,086) 41% 13% (5)% 25 Medical & Dental 5,903,094 3,461,927 3,059,442 3,280,509 3,272,682 (189,245) 55% 7% (0)% 26 Unemployment 13,000 (3,385) 1,285 19,276 (663) 2,722 (5)% 1400% (103)% 28 Uniform/Clothing 10,460 2,965 1.777 1,731 1,403 (1,562) 13% (3)% (19)% Total Salaries and Benefits 41,526,657 23,932,239 21,724,120 22,621,822 22,998,246 (933,993) 55% 4% 2% Percent o year completed 58.33 % SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATE) 2016 2016 2017 ACTUAL OVEN( UNDER) %CHANGE ALLOCATED BOLT %SPENT 2016/2016 2016/2017 Transfers 5,237,691 2,848,136 2,504,923 2,588,114 1,518,002 (1,330,134) 29% 3% (41)% 31 Supplies 1,164,823 706,141 658,527 639,811 664,477 (41,664) 57% (3)% 4% 34 Items Purchased for resale 22,000 15,372 16,901 15,400 15,307 (65) 70% (9)% (1( 35 Small Tools 99,818 53,813 189,054 35,853 63,123 9,310 63% (81)% 76% 41 Professional Services 3,266,711 1,474,569 1,228,111 1,297,631 1,324,766 (149,804) 41% 6% 2% 42 Communication 449,970 283,130 190,047 187,066 203,921 (79,208) 45% (2)% 9% 43 Travel 192,380 123,058 77,824 84,227 119,783 (3,275) 62% 8% 42% 44 Advertising 51,500 24,404 17,156 14,002 11,509 (12,896) 22% (18)% (18)% 45 Rentals and Leases 2,314,372 1,782,696 1,533,177 1,524,344 1,254,991 (527,705) 54% (1)% (18)% 46 Insurance 886,895 886,895 785,581 810,799 887,617 722 100% 3% 9% 47 Public Utilities 1,893,570 933,739 773,036 906,417 1,466,542 532,802 77% 17% 62% 48 Repairs and Maintenance 732,613 373,672 370,968 347,790 284,741 (88,930) 39% (6)% (18)% 49 Miscellaneous 1,562,773 870,999 657,791 593,524 643,806 (227,192) 41% (10)% 8% 51 Inter -Governmental 3,003,792 1,707,616 1,374,441 1,470,091 1,796,460 88,844 60% 7% 22% 53 Ext Taxes, Oper. Assess 5 - 34 549 146 146 2921% 1529% (73)% 64 Machinery & Equipm ent 234,000 20,983 20,120 368,336 169,979 148,996 73% 1731% (54)% Total Supplies, Services, and Capital 21,112,913 12,105,225 10,397,689 10,883,953 10,425,171 (1,680,054) 49% 5% (4) % Percent o year completed 58.33% 14