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HomeMy WebLinkAboutFIN 2017-10-17 Item 2D - Report - August 2017 Monthly Departmental Budgets-to-Actuals ReportTO: CC: City of Tukwila INFORMATIONAL MEMORANDUM Councilmembers Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Craig Zellerhoff, Fiscal Coordinator DATE: October 11 28, 2017 SUBJECT: 2017 August 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 August YTD report is based on financial data available as of September 28th, 2017, for the reporting period ending August 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 $37.7 million as compared to the allocated budget of $41.2 million, which is $3.5 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 $166 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 $96 thousand, however, spending is $8 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. • TIS department has exceeded budget by $52 thousand. The primary reason is a timing difference in the way the allocated budget is calculated for Professional Services. Year to date spend is 56% compared to 66.67% of the year expired. It is anticipated that by the end of the year, the TIS budget will be within budget. • Park department exceeded budget by $23 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 during the first half of the year as they are being more proactive and intentional in the planning and preparation for busier summer months. Expenditures are expected to be lower in the second half of the year. • Transfers from the general fund into capital projects funds through August have not been recorded. Rather than transferring funds automatically, we will be transferring funds into the capital projects funds as needed. 49 INFORMATIONAL MEMO Page 2 • Salaries and benefits are $1.1 million lower than budget through August due to ongoing negotiations with 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% $332,000 2.0% $442,000 2.5% $553,000 • Rents and leases are below budget by $398 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 August 2017) City council 5$222553 Mayor Human Resources • $448 $516 Finance Attorney I $324 $421 Recreation Community Dev. 52,370 $2,584 51,675 51,918 $2,129 52,201 $2,136 $2,414 Municipal Court — 5808 I= 5850 Police Fire Tech. & Innovation 51,138 51,086 Public Works IIIIIM52'354 $2,520 Park Maintenance 5973 $950 Street Maint & Ops$2,213 $2,383 Dept 20 $1,543 52,875 $7,752 57,819 511,622 - 512,429 50 51000 52,000 53.000 54,000 55,000 56,000 57,000 S8,000 $9,000510,000511,000512,000$13,000514,000 Thousands ■ Year to Date • Allocated Budget 50 INFORMATIONAL MEMO Page 3 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES YTD AS OF AUGUST 31, 2017 91281201713:35 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVER/(UNDER) %CHANGE ALLOCATED BOGT %SPENT 201612016 2016/2017 01 City Council 366,016 253,070 209,725 221,668 224,757 (28,312) 61% 6% 1% 03 Mayor 4,079,582 2,584,137 2,246,013 2,501,302 2,370,065 (214,072) 58% 11% (5)% 04 Human Resources 706,208 515,804 410,205 468,812 448,382 (67,422) 63% 14% (4)% 05 Finance 2,638,813 1,918,335 1,790,595 1,585,948 1,674,720 (243,615) 63% (11)% 6% 06 Attorney 716,955 420,837 365,162 311,755 323,746 (97,091) 45% (15)% 4% 07 Recreation 3,384,688 2,200,529 1,956,690 2,033,408 2,128,910 (71,619) 63% 4% 5% 08 Community Development 3,693,338 2,413,543 1,887,065 2,119,171 2,135,795 (277,748) 58% 12% 1% 09 Municipal Court 1,307,808 850,073 733,854 763,976 807,536 (42,537) 62% 4% 6% 10 Police 18,288,092 12,429,095 11,195,973 12,030,017 11,621,606 (807,489) 64% 7% (3)% 11 Fire 11,862,568 7,818,848 7,682,578 7,518,990 7,752,013 (66,835) 65% (2)% 3% 12 Technology& Innovation Svcs 2,026,820 1,085,655 686,561 795,950 1,138,152 52,497 56% 16% 43% 13 Public Works 3,802,639 2,519,789 2,230,738 2,454,889 2,354,161 (165,629) 62% 10% (4)% 15 Park Maintenance 1,418,760 950,329 904,169 904,228 972,953 22,624 69% 0% 8% 16 Street Maintenance & Operations 3,109,592 2,383,195 1,896,478 2,256,832 2,212,884 (170,312) 71% 19% (2)% 20 Dept20 5,237,691 2,875,429 2,529,923 2,612,916 1,543,002 (1,332,427) 29% 3% (41)% Total Expenditures 62,639,570 41,218,669 36,725,730 38,579,863 37,708,682 (3,509,987) 60% 5% (2)% Percent o year completed 66.67% 51 INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES YTD AS OF AUGUST 31, 2017 912812017 13:35 SUMMARY OF SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVBJ(UNDER) % CHANGE ALLOCATED BDGT %SPRIT 2016/2016 2016/2017 11 Salaries 27,560,991 18,366,078 16,947,917 17,540736 17,805,782 (560,296) 65% 3% 2% 12 Extra Labor 777,897 514,405 437,694 476,772 492,992 (21,412) 63% 9% 3% 13 Overtime 1,632,035 1,111,152 1,198,796 983,105 1,048,035 (63,117) 64% (18)% 7% 15 Holiday Pay 525,583 78,159 4,767 80,154 77,807 (352) 15% 1581% (3)% 21 FICA 1,809,260 1,225,440 1,106,350 1,146,708 1,174,243 (51,197) 65% 4% 2% 22 Pension-LEOFF2 849,253 542,388 522,593 529,913 539,840 (2,549) 64% 1% 2% 23 Pension-PERS/PSERS 1,580,986 1,057,230 772,826 922,962 985,462 (71,767) 62% 19% 7% 24 Industrial Insurance 864,098 538,461 381,754 431,430 411,834 (126,627) 48% 13% (5)% 25 Medical & Dental 5,903,094 3,949,295 3,490,801 3,742,239 3,741,523 (207,772) 63% 7% (0)% 26 Unemployment 13,000 - 1,285 28,991 3,956 3,956 30% 2155% (86)% 28 Uniform/Clothing 10,460 3,176 3,526 1,819 1,788 (1,388) 17% (48)% (2)% Total Salaries and Benefits 41,526,657 27,385,784 24,868,311 25,884,829 26,283,263 (1,102,521) 63% 4% 2% Percent o year completed 66.67% SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVER/(UNDER) %CHANGE ALLOCATED BOW %SPB(T 2016/2016 2016/2017 Transfers 5,237,691 2,875,429 2,529,923 2,612,916 1,543,002 (1,332,427) 29% 3% (41)% 31 Supplies 1,164,823 817,817 746,516 769,325 770,899 (46,918) 66% 3% 0% 34 Items Purchased for resale 22,000 15,841 21,701 15,899 15,307 (534) 70% (27)% (4)% 35 Small Tools 99,818 57,436 191,099 49,382 67,989 10,554 68% (74)% 38% 41 Professional Services 3,266,711 1,840,115 1,574,149 1,637,022 1,624,850 (215,265) 50% 4% (1)% 42 Communication 449,970 244,822 223,594 223,174 246,144 1,322 55% (0)% 10% 43 Travel 192,380 142,834 87,722 99,366 124,996 (17,839) 65% 13% 26% 44 Advertising 51,500 28,972 19,982 15,965 12,539 (16,433) 24% (20)% (21)% 45 Rentals and Leases 2,314,372 1,973,724 1,759,533 1,746,476 1,575,478 (398,246) 68% (1)% (10)% 46 Insurance 886,895 886,895 785,581 810,799 887,617 722 100% 3% 9% 47 Public Utilities 1,893,570 1,494,237 1,258,765 1,441,526 1,543,208 48,971 81% 15% 7% 48 Repairs and Maintenance 732,613 439,926 409,219 421,903 334,815 (105,111) 46% 3% (21)% 49 Miscellaneous 1,562,773 998,454 754,321 668,499 703,550 (294,904) 45% (11)% 5% 51 Inter -Governmental 3,003,792 1,951,716 1,475,146 1,746,381 1,921,395 (30,321) 64% 18% 10% 53 Ext Taxes, Oper.Assess 5 - 48 549 195 195 3908% 1053% (64)% 64 Machinery & Equipment 234,000 64,667 20,120 435,853 53,435 (11,231) 23% 2066% (88)% Total Supplies, Services, and Capital 21,112,913 13,832,885 11,857,419 12,695,034 11,425,419 (2,407,466) 54% 7% (10) % Percent o year completed 66.67% 52