HomeMy WebLinkAboutCOW 2017-11-13 Item 5D - Ordinance - 2017-2018 Mid-Biennial Budget AmendmentCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayors revte
Council review
11/13/17
VC
OL1
11/20/17
VC
❑ Resolution
Mtg Date
// Ordinance
❑ Bid Award
Mtg Date
// Public Hearing
❑ Other
Mtg Date
Mtg Date
Mtg Date 11/20/17
Mtg Date 11/13/17
SPONSOR ❑Council ❑Mayor ❑ HR ❑ DCD 11 Finance ❑.Fire TS ❑P& R ❑Police ❑ PW Court
SPONSOR'S The Council is being asked to review and approve an ordinance amending the 2017-2018
SUMMARY biennial budget.
ITEM INFORMATION
ITEM No.
4.B. &
5.D.
101
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATI: 11/13/17
AGENDA ITEM TITLE Approve year-end 2017 budget amendment
ordinance.
CATEGORY // Discussion
11/13/17
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
// Ordinance
❑ Bid Award
Mtg Date
// Public Hearing
❑ Other
Mtg Date
Mtg Date
Mtg Date 11/20/17
Mtg Date 11/13/17
SPONSOR ❑Council ❑Mayor ❑ HR ❑ DCD 11 Finance ❑.Fire TS ❑P& R ❑Police ❑ PW Court
SPONSOR'S The Council is being asked to review and approve an ordinance amending the 2017-2018
SUMMARY biennial budget.
REVIIiW1?D BY ❑ C.O.W. Mtg. ❑ CDN Comm
❑ Trans &Infrastructure ❑ Arts Comm.
DATE: 11/7/17
/1 Finance
Comm. ❑ Public Safety Comm.
Comm. ❑ Planning Comm.
CHAIR: SEAL
❑ Parks
COMMITTEE
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMPfI'EE
Finance Department
Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EYPENDITURI: RI?QUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/13/17
MTG. DATE
ATTACHMENTS
11/13/17
Informational Memorandum dated 11/1/17 (Updated after Finance Com.)
Draft Ordinance
Reconciliation of 2017-2018 Budget Summary to Ordinance
Info Memo - Fire Department Budget Update and Proposed Budget Amendment
11/20/17
101
102
City of Tukwila
INFORMATIONAL MEMORANDUM
TO: Finance and Safety Committee
FROM: Peggy McCarthy, Finance Director
BY: Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: November 1, 2017
SUBJECT: 2017-2018 Mid -Biennium Budget Amendments
ISSUE
Approve the administrative 2017-2018 mid -biennium budget amendments.
Allan Ekberg, Mayor
BACKGROUND
While amending the budget is only required when a fund, in total, is in danger of exceeding budget, it is
practice to adjust the budget to keep departments in the general fund from exceeding budget as authorized
through the biennial budget process. It is also practice to adjust budgets in other funds to reflect changes
in financial plans that occur throughout the fiscal year.
Many of the proposed budget amendments have been reviewed and approved by the Committee and/or
Council process as noted below in the discussion and in the Exhibit A. Budget amendments are being
proposed for the following reasons:
• Add budget for departments or funds experiencing higher than expected costs and in danger of
being over expenditure budget at year-end. For 2017, an adjustment is proposed for the Fire
Department and several other funds.
• Add budget for revenue -backed expenditures such as grants and reimbursable services.
• Adjust budget for carryovers - initiatives budgeted in one year but expended in the next year.
• Add budget for new initiatives. In 2017, Council authorized the purchase of land, a contract for
quality assurance related to the Public Safety Plan, and the Axon Body Camera program for the
Police Department. Additional details on the initiatives are included below in the discussion and in
exhibit A.
• Several administrative adjustments including debt service and compliance with the Reserve Policy.
The proposed amendments have been categorized into the following four groups:
No
Category Name
Category Description
1
Existing Service
Levels & Plans
Adjust budget to reflect changes needed to maintain existing service levels
and plans including departmental under and over expenditures.
2.
Revenue Backed
Increase both expenditure and revenue budget for new programs or services
that have a dedicated funding source.
3.
Carryovers
Move budget to or from budget years to mirror actual or planned spending and
revenue recognition.
103
INFORMATIONAL MEMO
Page 2
4.
Initiatives
Budget for new programs, enhanced service levels or system improvements.
(e.g. for 2017, The quality assurance contract for the Public Safety Plan).
The budget amendments are discussed below and are also listed in Exhibit A titled, "2017 Year End Budget
Amendment Detail."
DISCUSSION
GENERAL FUND
Category 1 — Existing Service Levels and Plans.
Departmental Expenditures Exceeding Budget. At the July 5, 2016 meeting, Council authorized the Fire
Department to increase the total pipeline positions from three to five. These positions are unbudgeted and
are intended to reduce overtime due to retirements. The Fire Department has been experiencing three
retirements each year for the last several years. In 2017, only one retirement has occurred. Because the
retirements did not occur as expected, $240 thousand in labor costs were incurred that were not offset by
a reduction in overtime. The Finance and Community Development departments are expected to be below
budget at the end of the year. Funds in from these two departments will be transferred to the Fire
department to cover this amendment. Additional details on the Fire Department budget is provided in the
Fire Department Budget Update and Proposed Budget Amendment Info Memo. This item has been
discussed at several Finance Committee meetings.
Another budget amendment in this category relates to the Public Safety Plan. The budget was drafted to
include bond proceeds to be received in 2017 for costs associated with the Public Works Shops facility. It
is now expected that the earliest the City will sell bonds for the Shops will be in 2018. Costs for preliminary
siting work have been incurred in 2017. An operating transfer from the general fund into the city facilities
(PW Shops) fund (306) will need to be done to cover costs incurred. These costs can be reimbursed when
bonds are sold.
The final amendment in this category is to transfer 10% of previous year one-time revenue from the general
fund to the contingency fund. One-time revenue received in 2016 was related to construction sales tax and
the transfer will come from 2017 beginning fund balance.
Category 2 — Revenue Backed
The most significant amendment in this category is for the Fire Department. In September, fire personnel
were deployed to assist in recovery efforts from two hurricanes; one in Texas and the other in Florida.
Approximately $125 thousand in labor costs were incurred that will be reimbursed. Due to the lateness in
the fiscal year that these events occurred, it is anticipated that funds will not be received until 2018.
The Fire Department also incurred emergency medical costs that will be reimbursed in 2017. Total costs
and reimbursement is approximately $35 thousand.
A grant was approved by Council at the October 23, 2017 special meeting for the Police Department. The
grant, which requires a 10% match, is to fund a temporary position to maintain service levels in the Police
Records Unit. Grant revenue is approximately $77 thousand, and with the required match, expenditures
will be approximately $77.5 thousand.
The Mayor's Department secured a grant from the Port of Seattle to create marketing materials for business
development and attraction. Resolution #1888 was approved on August 15, 2017 supporting the City's
efforts to obtain this grant. The total grant is $16,500.
W:IBudget12017-2018 BUDGET12017-18 Budget Amendments\Info Memo Budget Amendment.docx
104
INFORMATIONAL MEMO
Page 3
Other revenue backed amendments are for four grants received by the Recreation Department. A
Wilderness Explorers grant, in the amount of $2,671 was secured to support Camp Tukwilly. A grant from
World Vision MOU, in the amount of $5,000 was secured to support the 2017 Youth Action day.
Amendments for these two grants is specific to 2017. The Recreation Department also secured a grant
from the United Way to support summer playground sites. The grant is $3,000 for 2017 and $3,000 for
2018. The final grant is the At -Risk Afterschool Meals program, part of the Child and Adult Food Program.
Revenue for this grant was budgeted in both 2017 and 2018 at $4,000 but the City will receive $9,000.
Expenditures were budgeted at $1,500 each year but will match the revenue received.
Category 4 — Initiatives
Budget of $50 thousand is being added to the Council's budget. At the June 26, 2017 special meeting,
Council approved a contract with Steven Goldblatt to provide quality assurance for the Public Safety Plan.
At the May 8, 2017 Committee of the Whole meeting, it was discussed to use 2017 beginning fund balance
to cover the cost of the contract as ending 2016 fund balance increased $248 thousand more than
projected. The contract extends through December 31, 2021 in an amount not to exceed $250 thousand.
OTHER FUNDS
Budget amendments for other funds are proposed to --
• Add expenditure budget to ensure adequate coverage of actual 2017 expenditures in the
hotel/motel (lodging tax 101) and drug seizure fund (109),
• Reflect transfer in from the general fund to the contingency fund to meet Reserve Policy
requirements,
• Add expenditure budget to ensure adequate coverage of projected 2018 expenditures in the
surface water fund (412) associated with the Gillam Creek 42nd Avenue South project,
• Add expenditure budget to purchase land in the land acquisition fund,
• Reflect budget transfers from the general fund as well as utility funds into the city facilities fund
(306) for the Public Works Shops facility,
• Adjust the Public Safety Plan fund (305) to reflect the transfer in of impact fees previously collected
and adjust timing of purchase of ladder and other fire equipment,
• Replace the line of credit that is due in December 2017 with a new 5 -year debt in the facilities fund
(302),
• Carryover budget from 2017 projects in the residential streets (103) and arterial streets (104) funds,
• Reflect additional Local Improvement District (LID) bond payments resulting from the early LID
assessment payoffs that occurred in 2016, and
• Streamline CAFR (Comprehensive Annual Financial Report) process. Combine all LTGO (limited
tax obligation bond fund budgets into one fund to streamline CAFR reporting.
RECOMMENDATION
The Council is asked to approve the 2017 mid -biennium Budget Amendment ordinance and consider this
item at the November 14, 2017 Committee of the Whole, and November 20, 2017 Regular Council Meeting.
ATTACHMENTS
Draft Ordinance
Reconciliation of 2017-2018 Budget Summary to Ordinance
Info Memo — Fire Department
W:IBudget12017-2018 BUDGET12017-18 Budget AmendmentslInfo Memo Budget Amendment.docx
105
106
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2515,
WHICH ADOPTED AND AMENDED THE CITY OF TUKWILA'S
BIENNIAL BUDGET FOR THE 2017-2018 BIENNIUM, TO ADOPT
AN AMENDED MID -BIENNIUM BUDGET; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, on December 5, 2016, the City Council of the City of Tukwila adopted
Ordinance No. 2515, which adopted the 2017-2018 biennial budget of the City of Tukwila;
and
WHEREAS, a mid -biennium budget amendment was presented to the City Council
in a timely manner for their review, in accordance with RCW 35A.34.130; and
WHEREAS, on November 13, 2017, following required public notification, the City
Council conducted a public hearing on the proposed mid -biennium budget amendment;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Ordinance Amended. Tukwila Ordinance No. 2515 is hereby amended
with the City Council's adoption of the document entitled "City of Tukwila 2017-2018 Mid -
Biennium Budget Amendment," attached hereto and incorporated by this reference as if
fully set forth herein, in accordance with RCW 35A.33.075.
Section 2. Estimated Revenues and Appropriations. The totals of the estimated
revenues and appropriations for each separate fund and the aggregate totals are as
follows:
FUND
EXPENDITURES
REVENUES
000 General
$142,679,203
$142,679,203
105 Contingency
$5,894,563
$5,894,563
104 Arterial Street
$39,473,923
$39,473,923
2XX Debt Service
$9,922,528
$9,922,528
302 Facility Replacement/Urban Renewal
$10,271,906
$10,271,906
305 Public Safety Plan
$25,160,000
$25,160,000
306 City Facilities (Public Works Shops)
$29,913,000
$29,913,000
W: Word Processing\Ordinances\Budget amendment -2017-2018 mid -biennium 10-26-17
VC:bjs
Page 1 of 2
107
Section 3. Copies on File. A complete copy of the amended budget for 2017-2018,
as adopted, together with a copy of this amending ordinance, shall be kept on file in the
City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of
Municipal Corporations of the Office of the State Auditor and to the Association of
Washington Cities.
Section 4. Corrections by City Clerk or Code Reviser. Upon approval of the City
Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 5. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 6. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force and effect
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2017.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Allan Ekberg, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
Attachment: City of Tukwila 2017-2018 Mid -Biennium Budget Amendment
W: Word Processing\Ordinances\Budget amendment -2017-2018 mid -biennium 10-26-17
VC:bjs
108
Page 2 of 2
i
Exhibit A
2017-18 Mid -Biennium Budget Amendment Detail -- Spreadsheet
Ref Dept. Sponsor
Explanation
2017 Increase (Decrease) 2018 Increase (Decrease)
Expense Revenue Effect on
EFB
Expense Revenue Effect on
EFB
GENERAL FUND
POLICE DEPARTMENT
Category 2 - Revenue_Backed _ _ _ _ _ _ _ _ _ _
1 j PD Ytichardso Grant funded temporary FTE to maintain level of service
I In lin the Police Records Unit. Grant was approved by
'Council at the October 23, 2017 special meeting.
I I
'Police Department Total
86,029
86,029 j
1
77,426 j (8,603)
77,426 j (8,603)
FIRE DEPARTMENT
Category 1 - Existing Service Levels or Plans
2 l FD lCarlsen 'Funding to cover costs associated with two additional
'pipeline positions approved by Council at the July 5,
I I 2016 meeting.
Category 2 - Revenue_Backed
3 ' FD Carlsen 'Firefighter deployment to assist with recovery efforts
I I 'from hurricanes in Texas and Florida. Information on the
I I
!deployment was presented to Council at the October 23,
! ! 12017 C.O.W. meeting.
4 ! FD lCarlsen 'Expenses related providing emergency medical
1 'services. The City was able to receive an additional $35
'thousand in reimbursement for incurred costs.
(Fire Department Total
240,0001
,
125,000 T 125,000 t
I I
I I
35,000 l 35,000
400,000 l
FINANCE
Category 1 - Existing Service Levels or Plans _
5 Finance Carlsen Due to lower than anticipated expenditures related to
I risk management, budget of $120 thousand can be
'transferred to Fire.
!Finance Total
(240,000)
160,000 (240,000)
240,000 t fi (240,000)
I I
1
240,000
--- (120,000)T ---------1----(240,(T00)
(120,000)1
- I
120,000
(240,000)
COMMUNITY DEVELOPMENT
Category 1 - Existing Service Levels or Plans
6 ? DCD Carlsen TDue to vacancies, salaries and benefits are lower than
I I ,expected. Budget of $120 thousand can be transferred
Ito Fire.
I I !Community Development Total
I I
1
(120,000)+ - t-- (240,000)
I I
1
(120,000)1
120,000
_ 1 _
MAYOR
Category 2 - Revenue Backed
------------------------------------------
-------------------------------
I I
I I
I I
, 3,000 : -
1 5,000 1 (2,500)
I I
I 1
I
� 8,000 l (2,500)
-------------------------------
I
Category 4 - Initiatives!
12 I lHumphrey!Steve Goldblatt Quality Assurance for Public Safety
I I :Plan. This contract was approved at the June 26, 2017
I I 'special meeting and per discussion at the May 8, 2017
Committee of the Whole, funding is to come from 2016
I I 'ending fund balance. The contract extends through
I I 'December 31, 2021 in an amount not to exceed
I I 1$250,000.
7 I Mayor !Speck
1 1
!Port of Seattle grant to create marketing materials for
!business development and attraction. Resolution 1888
16,500
i 16,500:
(240,000)
30,000
I
I
! !
'was approved on August 15, 2016 supporting the City's
I I
I
I
I I
'efforts to obtain this grant.
I I
I'Mayor Total
16,500
! 16,500 I
_
_
!
_ 1 _
PARKS & RECREATION
Category 2 - Revenue Backed
8 7 --Re !Gallaway !Wilderness Explorers grant to support Camp Tukwilly. 2,671
9 I Rec 'Gallaway United Way grant to support summer playground sites. 3,000
10 1 Rec !Gallaway !World Vision MOU to support 2017 Youth Action day. 5,000
11 I Rec !Gallaway IAt-Risk Afterschool Meals program, and is part of the 7,500
I I :Child and Adult Food Program. When budget was
I I 'drafted, $4,000 in revenue was budgeted expected
'revenue is not $9,000 each year. Only $1,500 in
I I !expenditures was budgeted but total funds to be spent is
I I !expected to be $9,000.
I
2,671 I
3,000 -
5,000 , -
5,000 I (2,500)
I I
I
1
15,671 (2,500)
3,000
7,500
10,500
I I
I I
, 3,000 : -
1 5,000 1 (2,500)
I I
I 1
I
� 8,000 l (2,500)
!Parks & Recreation Total 18,171
COUNCIL
Category 4 - Initiatives!
12 I lHumphrey!Steve Goldblatt Quality Assurance for Public Safety
I I :Plan. This contract was approved at the June 26, 2017
I I 'special meeting and per discussion at the May 8, 2017
Committee of the Whole, funding is to come from 2016
I I 'ending fund balance. The contract extends through
I I 'December 31, 2021 in an amount not to exceed
I I 1$250,000.
30,000
I (30,000)
I I
I I
1 I
I
60,000'
I (60,000)
I I
1 I
I I
I I
I I 'Council Total
30,000
- (30,000)
i
60,000
;- (60,000):
1 i •
11/882QQ 1:05 AM
Exhibit A
2017-18 Mid -Biennium Budget Amendment Detail -- Spreadsheet
TRANSFERS, REVENUE & OTHER
Category 1 - Existing Service Levels or Plans
2017 Increase (Decrease)
2018 Increase (Decrease)
Ref
Dept.
Sponsor
i
Explanation
Expense Revenue Effect on
EFB
Expense Revenue Effect on
EFB
TRANSFERS, REVENUE & OTHER
Category 1 - Existing Service Levels or Plans
14 I ICarlsen (Expenditures associated with the PW Works Shops
210,000
(210,000)
I I (facility. The budget was drafted to include bond
I I proceeds, however, bonds will not be sold until at least
I
2018. An operating transfer is necessary to cover 2017
I I .costs until bonds are sold.
I
15i �Carlsen Transfer 10%u of previous year one-time revenue
138,515
(138,515)
1 1 !(construction sales tax) to Contingency fund per Reserve
I I I Policy. Transferred funds will come from beginning fund
I
. I (balance.
I I ITransfers, Revenue & Other Total I
348,515-
(348,515)
Total General Fund 000
' 813,186
192,171
(621,015)
396,529
85,426
(311,103)
110
11/8/2017 11:05 AM
(281,800)
Exhibit A
2017-18 Mid -Biennium Budget Amendment Detail -- Spreadsheet
Ref Dept. Sponsor
Explanation
2017 Increase (Decrease) 2018 Increase (Decrease)
Expense Revenue Effect on
EFB
Expense Revenue Effect on
EFB
CONTINGENCY FUND 105
Category 1 - Existing Service Levels or Plans
16 j Fin Carlsen TTransfer 10% of previous year one-time revenue
I I 1(construction sales tax) to Contingency fund per Reserve
'Policy.
-
I
138,515 138,515
1
200,000
I I
Total Contingency Fund 105
- 138,515 138,515
- - -
RESIDENTIAL STREET FUND 103
HOTEL/MOTEL FUND 101
Category 1 - Existing__ Service Levels or Plans
17! Fin !Carlsen !True up budget in 2017 and 2018 as approved by
I I !Council at the June 20, 2016 regular meeting and as
!recorded in the 2017-20018 biennial budget document.
Total Hotel/Motel Fund 101
281,800
281,800
213,586
(281,800) 213,586
(213,586)
(213,586)
DRUG SEIZURE FUND 109
Category 4 - Initiatives
187I Police j Mitchell True up budget to account for costs of Axon body
camera program approved by Council at the July 17,
I I 12017 regular meeting.
380,000
I 1 (380,000)
I I
200,000
1 1 (200,000)
I
Total Drug Seizure Fund 109
380,000- (380,000)
200,000 - (200,000)
RESIDENTIAL STREET FUND 103
Category 3 - Carryovers
19 ! Fin rabanara742nd Ave S project. Carry forward into 2018 as this (2,000,000)1
I I !project spans more than one year.
0 Fin Labanara ,53rd Ave S project. Carryforward into :71 a -s this (3,800,000);
!project spans more than one year.
I
2,000,000
3,800,000
I I
2,000,000
3,800,000
I
j j (2,000,000)
; (3,800,000)
I I
Total Residential Street
(5,800,000) - 5,800,000
5,800,000- (5,800,000)
- -
-.-
ARTERIAL STREET FUND 104
ARTERIAL
Category 3 - Carryovers & Reclassifications
21? Fin rabanarafBoeing Access Road Bridge Rehab project. Carry
I I !forward into 2018 as the project spans more than one
! I !year.
22 ! Fin (Labanara !Strander Blvd Extension project. Carryforward into
I I 12018 as this project spans more than one year.
(9,900,000)1
(2,400,000)1
(9,000,000), 900,000
I I
(2,000,000)1 400,000
'
9,900,000
2,400,000
_ _ _
1 9,000,000 1 (9,900,000)
I I
I 2,000,000 I (2,400,000)
Total Arterial Street
(12,300,000) (11,000,000) 1,300,000
12,300,000 11,000,000 (1,300,000)
LAND ACQUISITION FUND 301
Category 4 - Initiatives
23 1 -Still ?Land acquisition as authorized by Council at the October 2,000,000 � (2,000,000)
I 116, 2017 regular meeting.
500,000
j , (500,000)
Total Land Acquisition Fund 301 2,000,000 - (2,000,000)
500,000- (500,000)
PUBLIC SAFETY PLAN FUND 305
Category__3 -_ Carryovers & Reclassifications _ _ _ _ _ _
24 !arlsen !Transfer in impact fee revenue collected to date from the
I !Fire Impact Fee fund.
25 IWittwer !Adjust budget to reflect purchasing the ladder and other
I !equipment in 2018 rather than 2019 as originally
_
T 1,017,0001 1,017,000
2,245,000
_
f 7
(2,245,000)
I I
Total Public Safety Plan Fund 305
- 1,017,000 1,017,000
2,245,000- (2,245,000)
CITY FACILITIES (PW SHOPS) FUND 306
Category 1 - Existing Service Levels or Plans
26 ICarlsen Expenditures associated with the PW Works Shops
'facility. The budget was drafted to include bond
!proceeds. Bonds will not be sold until at least 2018. an
!operating transfer is necessary to cover 2017 costs.
I I
420,000 1 420,000
1 I
I
,
Total City Facilities (PW Shops) Fund 306
- 420,000 420,000-
- -
11/81217111:05 AM
Exhibit A
2017-18 Mid -Biennium Budget Amendment Detail -- Spreadsheet
112
11/8/2017 11:05 AM
2017 Increase (Decrease)
2018 Increase (Decrease)
Ref Dept. Sponsor ; Explanation
I
Expense Revenue Effect on
EFB
Expense Revenue Effect on
EFB
URBAN
RENEWAL FUND 302
Category 1 - Existing Service Levels or Plans
27 Fin McCarthy Pay off line of credit with new, 5 -year debt. The current
line of credit with Bank of the West is budgeted to be
I !paid in 2018.
28 ,Bianchi ,Gregor House property was budgeted to be sold in 2017.
! !Rather than selling the property, it has now been
I 'proposed to enter into a Tong -term lease.
2,350,000
-
2,350,000 1I
1 1
1 (250,000)1 (250,000)
I 1
_ _ _ _
I
I I
I
Total Urban Renewal Fund 302
2,350,000
2,100,000 (250,000)
- - -
FIRE EQUIPMENT FUND
304
Category 3 - Carryovers & Reclassifications
1,017,000
1 (1,017,000)
I
I I
29 1 ICarlsen (Transfer impact fee revenue collected to date to the
i 1 'Public Safety Plan fund.
Total Fire Equipment Fund 304
1,017,000
- (1,017,000)
- - -
LID
FUND 233
Category 1 - Existing Service Levels or Plans
30 ! Fin !Carlsen !Adjust LID principal payments to account for additional
! ! !assessment revenue. Revenue was received in 2016,
I I 'assessment was paid in January 2017.
146,000
1
(146,000)
1
1
200,000
1
: l (200,000)
1 !
1
Total LID Fund 233
146,000
- (146,000)
200,000 - (200,000)
WATER
FUND 401
Category 1 - Existing Service Levels or Plans
32 1 Fin Carlsen !Expenditures associated with the PW Works Shops
'facility. The budget was drafted to include bond
proceeds. However, bonds will not be sold until at least
1 1 !2018. an operating transfer is necessary to cover 2017
I I 'costs.
70,000
(70,000)
'
!
.
I
i 1
Total Water Fund 401
70,000
- (70,000)
-
- -
SEWER
FUND 402
Category 1 - Existing Service Levels or Plans
33 Fin Carlsen Expenditures associated with the PW Works Shops
. facility. The budget was drafted to include bond
I I !proceeds. However, bonds will not be sold until at least
! 1 12018. an operating transfer is necessary to cover 2017
1_—_—_L_—_—_1FQsts�_—_—__
70,000
(70,000)
1
Total Sewer Fund 402
70,000
- (70,000)
-
- -
SURFACE
WATER FUND
412
Category 3 - Carryovers & Reclassifications
347 Fin Carlsen TGillam Creek 42nd Ave S Surface Water project to cover
I I !increase in construction costs. This is only an estimate
1 1 !at this time.
35 Fin Carlsen ,Expenditures associated with the PW Works Shops
1 I !facility. The budget was drafted to include bond
! 1 'proceeds. However, bonds will not be sold until at least
1 I 12018. an operating transfer is necessary to cover 2017
,rnsts
-
70,000
-
1
(70,000)
I
,
1.000.000
(1,000,000)
Total Surface Water Fund 412
70,000
- (70,000)
1,000,000
- (1,000,000)
LIMITED TAX GENERAL OBLIGATION
(LTGO) FUNDS 2XX
Category 1 - Existing Service Levels or Plans
36 1 Fin !Carlsen ITo streamline CAFR (Comprehensive Annual Financial
! 'Report) only. Combine all LTGO debt service fund
I I 'budgets into one fund to streamline CAFR reporting.
'Details on individual debt issues will still be maintained
I I ,for administrative purposes. This change will not affect
1 I !any voter approved debt issues or the two debt funds
1 'associated with Local Improvement District #33.
3,343,607
3,343,607 -
6,578,921
6,578,921
Total Limited Tax General Obligations 2XX
3,343,607 3,343,607 -
6,578,921 6,578,921 -
112
11/8/2017 11:05 AM
City of Tukwila 2017-2018 Mid -Biennium Budget Amendment
Reconciliation of 2017-2018 Budget Summary to Ordinance
ORIGINAL
BUDGET
AMENDED
BUDGET
EXPENDITURES
2017
Expenditures
2018
Expenditures
2018 Ending
Fund Balance
Total
Expenditures
Mid Biennial Amendment
Total
Expenditures
2017 2018
000 General
$ 62,639,570
$ 68,168,105
$ 11,593,932
$ 142,401,606
$ 192,171
$ 85,426
$ 142,679,203
101 Hotel/Motel
440,700
423,914
1,536,261
2,400,875
-
-
2,400,875
103 City Street
9,353,000
5,425,000
887,431
15,665,431
-
-
15,665,431
104 Arterial Street
29,137,579
9,803,218
533,126
39,473,923
(11,000,000)
11,000,000
39,473,923
105 Contingency
-
-
5,756,048
5,756,048
138,515
-
5,894,563
109 Drug Seizure Fund
45,000
45,000
491,635
581,635
--
581,635
2XX LTGO Debt Service
3,343,607
6,578,921
9,922,528
200 LTGO Bonds
691,150
2,940,000
133,546
3,764,696
(824,696)
(2,940,000)
-
208 LTGO Bonds - 2017 (Public Safety Plan)
-
492,000
-
492,000
-
(492,000)
-
209 LTGO Bonds - 2017 (Residential Street)
-
672,000
-
672,000
-
(672,000)
-
211 Limited Tax G.O. Refunding Bonds, 2008
809,900
809,100
416
1,619,416
(810,316)
(809,100)
-
212 Limited Tax G.O. Bonds, 2009A
427,461
428,288
2
855,751
(427,463)
(428,288)
-
213 UTGO - 2107
-
2,681,000
-
2,681,000
2,681,000
214 Limited Tax G.O. Bonds, 2010A
581,191
575,153
33,972
1,190,316
(615,163)
(575,153)
-
217 2011 Refunding Bonds
552,300
549,250
539
1,102,089
(552,839)
(549,250)
-
218 2014 Facility
113,130
113,130
-
226,260
(113,130)
(113,130)
-
206 LID Guaranty
-
-
670,151
670,151
670,151
233 2013 LID
721,830
702,655
855,923
2,280,408
-
-
2,280,408
301 Land Acquisition, Recreation & Park Dev.
1,139,000
581,000
2,378,123
4,098,123
-
-
4,098,123
302 Facility Replacement
1,860,000
6,086,000
225,906
8,171,906
2,100,000
-
10,271,906
303 General Government Improvements
290,794
294,593
149,962
735,349
735,349
304 Fire Improvements
-
-
727,831
727,831
-
-
727,831
305 Public Safety Plan
14,187,000
9,599,000
357,000
24,143,000
1,017,000
-
25,160,000
306 City Facilities
6,150,000
2,302,000
21,041,000
29,493,000
420,000
-
29,913,000
401 Water
8,841,590
6,898,434
2,386,537
18,126,561
-
-
18,126,561
402 Sewer
11,168,523
8,618,352
6,695,216
26,482,091
-
-
26,482,091
411 Foster Golf Course
1,850,949
1,887,168
67,157
3,805,274
3,805,274
412 Surface Water
8,133,869
8,729,475
3,809,484
20,672,828
--
20,672,828
501 Equipment Rental
3,952,966
4,227,493
4,698,217
12,878,676
12,878,676
502 Insurance Fund
6,842,617
7,150,807
4,589
13,998,014
13,998,014
503 Insurance - LEOFF 1 Fund
606,299
623,714
516,872
1,746,884
1,746,884
611 Firemen's Pension
72,727
76,491
1,162,401
1,311,619
1,311,619
Total
$ 170,609,146
$ 150,902,340
$ 66,713,277
$ 388,224,762
$ (7,132,314) $ 11,085,426
$ 392,177,875
Shaded rows indicate debt fund budgets being combined into one fund for reporting purposes.
11/1/2017111:3 AM
City of Tukwila 2017-2018 Mid -Biennium Budget Amendment
REVENUES
2015 Beginning
Fund Balance
2017
Revenues
2018
Revenues
Total
Revenues
Mid Biennial Amendment
Total
Revenues
2017 2018
000 General
$ 11,500,000
$ 62,665,691
$ 68,235,916
$ 142,401,606
$ 192,171
$ 85,426
$ 142,679,203
101 Hotel/Motel
906,875
736,000
758,000
2,400,875
2,400,875
103 City Street
833,331
9,397,500
5,434,600
15,665,431
15,665,431
104 Arterial Street
3,786,923
25,398,000
10,289,000
39,473,923
(11,000,000)
11,000,000
39,473,923
105 Contingency
5,716,048
20,000
20,000
5,756,048
138,515
-
5,894,563
109 Drug Seizure Fund
461,635
60,000
60,000
581,635
581,635
2XX LTGO Debt Service
3,343,607
6,578,921
9,922,528
200 LTGO Bonds
133,546
691,150
2,940,000
3,764,696
(824,696)
(2,940,000)
-
208 LTGO Bonds - 2017 (Public Safety Plan)
--
492,000
492,000
-
(492,000)
-
209 LTGO Bonds - 2017 (Residential Street)
-
-
672,000
672,000
-
(672,000)
-
211 Limited Tax G.O. Refunding Bonds, 2008
416
809,900
809,100
1,619,416
(810,316)
(809,100)
-
212 Limited Tax G.O. Bonds, 2009A
2
427,461
428,288
855,751
(427,463)
(428,288)
-
213 UTGO - 2107
--
2,681,000
2,681,000
2,681,000
214 Limited Tax G.O. Bonds, 2010A
33,972
581,191
575,153
1,190,316
(615,163)
(575,153)
-
217 2011 Refunding Bonds
539
552,300
549,250
1,102,089
(552,839)
(549,250)
-
218 2014 Facility
-
113,130
113,130
226,260
(113,130)
(113,130)
-
206 LID Guaranty
669,151
500
500
670,151
670,151
233 2013 LID
898,764
702,111
679,533
2,280,408
2,280,408
301 Land Acquisition, Recreation & Park Dev.
2,713,123
716,000
669,000
4,098,123
4,098,123
302 Facility Replacement
370,706
3,486,600
4,314,600
8,171,906
2,100,000
-
10,271,906
303 General Government Improvements
334,349
200,500
200,500
735,349
735,349
304 Fire Improvements
645,631
32,100
50,100
727,831
727,831
305 Public Safety Plan
-
23,843,000
300,000
24,143,000
1,017,000
-
25,160,000
306 City Facilities
-
6,150,000
23,343,000
29,493,000
420,000
-
29,913,000
401 Water
4,178,561
6,905,000
7,043,000
18,126,561
18,126,561
402 Sewer
9,009,091
8,674,000
8,799,000
26,482,091
26,482,091
411 Foster Golf Course
23,174
1,864,550
1,917,550
3,805,274
3,805,274
412 Surface Water
4,273,828
7,413,000
8,986,000
20,672,828
20,672,828
501 Equipment Rental
5,592,380
3,141,319
4,144,977
12,878,676
12,878,676
502 Insurance Fund
1,175,682
6,173,727
6,648,605
13,998,014
13,998,014
503 Insurance - LEOFF 1 Fund
1,210,204
268,340
268,340
1,746,884
1,746,884
611 Firemen's Pension
1,170,891
69,687
71,041
1,311,619
1,311,619
Total
$ 55,638,823
$ 171,092,757
$ 161,493,183
$ 388,224,762
$ (7,132,314) $ 11,085,426
$ 392,177,875
Shaded rows indicate debt fund budgets being combined into one fund for reporting purposes.
114
11/1/2017 10:49 AM
TO:
FROM:
BY:
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
Finance Council Committee
Peggy McCarthy, Finance Director and Jay C Wittwer, Fire Chief
Vicky Carlsen, Deputy Finance Director
CC: Mayor Ekberg
DATE: October 11, 2017
SUBJECT: Fire Department Budget Update and Proposed Budget Amendment
ISSUE
The discussion below encompasses the Fire Department budget, pipeline positions, retirements,
and lessons learned.
The Fire Department is currently projected to exceed the 2017 adopted budget, which is largely
due to additional pipeline positions authorized by the Council in mid -2016 and fewer than
anticipated retirements in 2017. Additionally, budget was exceeded due to deployment of fire
personnel to assist with hurricane recovery efforts in Texas and Florida. While most of the
deployment costs will be reimbursed, the City does not expect to receive that funding until 2018.
BACKGROUND
History of Pipeline Positions
Pipeline positions were initially introduced to the fire department in February of 2014. City Council
approved up to three pipeline positions in 2014 and two additional pipeline positions in June of
2016. Two pipeline employees were hired in 2014 and only one of them completed the academy.
When the department suffered an unexpected departure of an employee in 2014, the pipeline
employee filled that open slot thus leaving no pipeline employees available. 3 more pipeline
employees started post -academy in early 2016 and 3 more were hired in 2017.
The intent of pipeline positions is to keep staffing levels at or above the minimum of 13 to reduce
overtime caused by employee departures. When staffing is at least 15, the aid car is placed in
service. In 2015, when no pipeline employees existed, the aid car was in service for 31 shifts. In
2016, there were 3 pipeline employees and the aid car was in service for 81 shifts. For 2017, the
aid car has been in service for over 100 shifts (and still counting) with 5 pipeline employees.
History of Fire Department Staff Departures
The Fire department's staff enjoys a significant amount of longevity. At least 17 firefighters have
been on staff for at least 28 years. All are eligible to retire now. In addition to the 17 noted above,
there are 5 other fire department personnel that are able to retire with less than 28 years of service
in the system. 33% of the Fire department members will be able to retire at this point, and as the
months pass by, more will be added to this list. With longevity, comes retirements and other
departures.
115
INFORMATIONAL MEMO
Page 2
Retirements have averaged three a year since 2012. However, through the end of October, there
has only been one retirement. It was anticipated that there would be up to three retirements in
2017 and that at least one pipeline position would transfer into an existing position.
2017 — 2018 Budget Preparation
The budget was prepared in the fall of 2016 just as the new Fire Chief, Jay Wittwer, was beginning
his tenure with the City. The Finance Department is responsible for budgeting salaries, benefits,
liability insurance, and fleet costs. Finance does not budget facilities costs such as utilities nor
does it determine budget for dispatch services (Valley Comm.).
A total of 67 positions are included in the budget. Existing staff were budgeted at their current
salary and benefits. Vacant positions were budgeted at step 1 with benefits based on entry level
salary. All pipeline positions are unbudgeted; each pipeline position has an average annual cost
of $125 thousand.
DISCUSSION
Salaries
During the first half of 2017, all five pipeline positions, as authorized by City Council, have been
filled. Because the intent of pipeline positions is to reduce overtime, they are
unbudgeted. Through the end of June, salaries are over budget by $198 thousand, or 2% of
allocated budget.
Budgeted salaries were increased 2% over 2016 salaries as a place -holder for cost -of -living
(COLA) adjustments. Because labor contracts have not been settled yet, actuals do not reflect
COLA increases.
Pipeline Positions
The primary intent of pipeline positions is to reduce overtime costs. Minimum staffing in the Fire
Department is 13. A and C shifts have 20 staff assigned positions and B shift has 19 assigned
positions. Labor contracts allow for a total of four positions to be off for Kelly day or vacation each
shift. Pipeline positions provide a cushion for each shift to allow for sick leave without dropping
below minimum staffing. An additional benefit of the pipeline positions is if minimum staffing for
a shift is 15, the aid car is placed in service, thereby increasing service levels to the City.
Even with 5 pipeline positions spread across all three shifts, overtime is on par with allocated
budget rather than below allocated budget. The existence of pipeline positions in the first nine
months of 2017 offset 117 shifts of overtime. The approximate value of that offset is $175K.
Many shifts have incurred overtime above minimum staffing levels of 13. This is due, in a small
part, to not having a trained driver for apparatus on shift. If the driver is the one that calls in sick,
even with minimum staffing, overtime will be incurred to bring in a driver to fill the position.
It should be noted that the five pipeline positions add $600 thousand in unbudgeted expenditures,
however, the department was able to absorb $360 thousand without exceeding budget.
Looking Forward / Lessons Learned
Administration and the Fire Department are committed to making operational adjustments in order
to keep Fire within authorized budget, as directed by policy.
In 2017, the Fire Department expended additional overtime to train drivers. The department
currently faces a shortage of drivers, and at times, will incur overtime even when staffing is at, or
above, the minimum of 13 when a driver is absent. Driver's training should be completed in the
Z:ICouncil Agenda Items\CommunicationslInfo Memo - Fire Budget 11.1.17.docx
116
INFORMATIONAL MEMO
Page 3
next few months. This effort, along with balancing the shifts with fire fighters that have been
trained to drive, should reduce the anticipated overtime budget by approximately $80 thousand.
The City has the option to keep the department within budget by reducing minimum staffing. This
could be done on a global level, or on days where vacation, sick and Kelly Day usage requires
someone to be called in on overtime. The Department could determine that they can run below
the minimum staffing of 12. On these days one engine would be "browned out" (i.e. placed
temporarily out of service) and an aid unit would be placed in service. Minimum staffing of 11
would cause one unit (engine or ladder truck) to be browned out and the ladder would operate
with four personnel. This would also cause a station to be browned out for that day. If minimum
staffing is reduced to 10, the ladder would remain in service with a total of three personnel.
As mentioned above, Administration and the Fire Department is committed to keeping the Fire
budget below the adopted budget. Ongoing meetings will occur each month, overtime will
continue to be monitored on a daily basis, and budget reviewed each pay period. At these
meetings, issues can be promptly identified and corrective action taken.
Proposed Budget Amendment — Fire Department
Staff is recommending a budget amendment of $400 thousand for the Fire Department consisting
of the following three elements:
1. Costs associated with the two additional pipeline positions authorized in June 2016. Costs
for each pipeline position is approximately $120 thousand including wages, benefits,
equipment, and training for a proposed amendment of $240 thousand. This element of
the amendment will be requested for both 2017 and 2018.
2. Additional EMS levy funds to account for costs for providing emergency medical services.
The City has requested, and will receive, an additional $35 thousand in EMS levy funds
that is expected to be received this year. Both revenue and expenditure lines will be
adjusted by $35 thousand.
3. Expenditures associated with the deployments related to the hurricanes. Approximately
$128 thousand in costs were incurred to deploy fire personnel. These costs are revenue -
backed, so the budget amendment would not only include an adjustment to overtime and
related benefits, but to revenue as well. Since the deployments occurred later in the year,
the City will most likely not receive reimbursement until 2018.
RECOMMENDATION
This memo is for information only. However, the full budget amendment will go to the Committee
of the Whole on November 13 where this information will also be shared for Council deliberation
on the budget amendment.
W:\2017 Info MemosTFire Budget 11.1.17.docx
117
118
Fire Department Update
PROPOSED BUDGET AMENDMENT
Budget amendment request due to:
Unbudgeted pipeline positions
Revenue backed EMS levy funds
Natural disaster deployments
Pipeline positions
Three pipeline positions created in February of 2014
Two added in June of 2016 due to anticipated retirements
Pipeline positions are unbudgeted
- Prepare for retirements
- Reduce overtime
4
2
Departures 2006-2017
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fire Department Suppression Personnel
68 Suppression
Employees
23 are Retirement
Eligible
N ■34% Retirement Eligible
W
Pipeline positions
Aid Car Usage
2015 (no pipeline positions
filled) shifts aid car in
service: 31
2016 (3 pipeline positions
filled) shifts aid car in
service: 81
2017 (5 pipeline positions
filled) shifts aid car in
service: 103* (*estimated)
120
100
80
60
40
20
0
r
2015 2016 2017
Shifts Aid Car In -Service Pipeline Positions Filled
Pipeline positions
Unbudgeted
Cost of five pipeline positions: $600,000
Department able to absorb: $360,000
Requested budget amendment for pipeline
positions: $240,000
EMS Levy Funds
Additional funds not
anticipated
The City requested and will receive
additional EMS levy (voter -approved) funds
for the cost of providing emergency medical
services.
Both revenue and expenditure lines will be
adjusted by $35,000
Deployments
Hurricanes
Harvey & Irma
Four staff deployed to Texas for Harvey
relief
Five staff deployed to Georgia for Irma relief
All but one staff members' time will be
reimbursed
Reimbursement not likely until 2018; hence
need for budget amendment
Budget amendment: $125,000
TFD IN TEXAS:
CAPT.'S MCCOY, MORALES, NEVENS
AND FF O'BRIEN
TFD IN GEORGIA:
CAPT.'S MORALES, JOHNSON &
NEVENS. FE'S BROOKS AND
O'BRIEN
Moving forward
Reduce pipeline positions back to three Overtime will be monitored on a daily
with coming retirements basis
Driver's Training to increase driver Budget reviewed each pay period.
availability per shift
Potentially review adjustments to
Balancing shifts with drivers service levels
Monthly meetings to review budget,
overtime and take corrective action if
needed
CO
$80,000.00
$70,000.00
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00
$10,000.00
$-
1
Jan
2017 Jan -Sep Overtime Expenditures
Feb Mar Apr May Jun Jul Aug Sep
• OT Expenditures ■ Deployment OT (incl. backfill)
Potential Reduction in Cost & Services Per Shift if Staffing Dips Below 13
10 PERSONNEL: 1 ENGINE & STATION 0/5, LADDER I/5 W/3 STAFFED
11 PERSONNEL: 1 ENGINE & STATION 0/5, LADDER I/S W/4 STAFFED
12 PERSONNEL: 1 ENGINE 0/S, AID CAR I/5
w
$4,500
$3,000
$1,500
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Fire budget amendment requested:
Pipeline positions:
EMS Levy:
Deployments:
Total:
$240,000
$35,000 (revenue backed)
$125,000 (reimbursed in 2018)
$400,000