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HomeMy WebLinkAboutFIN 2018-01-17 Item 2 - Report - November 2017 General Fund UpdateTO: CC: City of Tukwila INFORMATIONAL MEMORANDUM Councilmembers Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: January 10, 2018 SUBJECT: 2017 November General Fund 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 November YTD report is based on financial data available as of January 4th, 2018, for the reporting period ending November 30th, 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. It should be noted that budget amendments, as approved by Council on November 20, 2017, have been included in this report. Departmental Expenditures General fund expenditures totaled $52.3 million as compared to the allocated budget of $56.8 million, which is $4.4 million below budget. Notable variances are as follows: • While the fire department is below the allocated budget by $378 thousand, salaries are over budget by $21 thousand and the firefighters bargaining unit is still in negotiations. If the contract is settled prior to closing out 2017, retro pay could be paid in 2018 but transferred back to 2017. It should be noted that a budget amendment of $400 thousand is included in the budget figures. • TIS department has exceeded budget by $118 thousand. The primary reason is a timing difference in the way the allocated budget is calculated for Professional Services. Year to date spend is 82% compared to 91.67% of the year expired. It is anticipated that by the end of the year, the TIS budget will be within budget. • Transfers from the general fund into capital projects funds through November have not been recorded. Rather than transferring funds automatically, we will be transferring funds into the capital projects funds as needed. It is anticipated that a transfer of $1.8 million to the arterial street fund will be necessary due to the additional expenditures related to the Interurban Avenue South project. • Salaries and benefits are $1.6 million lower than budget through November due to ongoing negotiations with the bargaining units. It should be noted that the budget reflects 2% COLA as a place -holder when the budget was drafted. 1 INFORMATIONAL MEMO Page 2 • Rents and leases are below budget by $99 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. • Miscellaneous category is below budget by $423 thousand. Claims and judgements, in the Finance department accounts for $157 thousand, DCD is below budget by $101 thousand (permits and code enforcement divisions), and TIS is below budget by $82 thousand due to timing difference in spending patterns. Year to Date Department Expenditures Compared to Allocated Budget (Through November2017) City Council I $303 $367 Mayor Human ResourcesII $606 $655 Finance Attorney II $534 $606 Recreation Community Dev $3.280 $3,539 $2,207 Municipal Court =11 $1,119 _ $1,167 Police Fire $2,328 $2,806 $2,954 $2,934 $3,179 $10,950 Tech. & Innovation $1,664 $1,546 Public Works $3,182 $3,440 $1,264 $1,307 Park Maintenance Street Maint & Ops Dept 20 2 $2,861 $2,924 $2,562 $4,777 $11,328 $16,067 $16,655 SO S2,000 $4.000 56.000 $8.000 $10,000 $12,000 514,000 $16.000 $18,000 Thousands ■Year to Date ■Allocated Budget INFORMATIONAL MEMO Page 3 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF NOVEMBER 30, 2017 1/5/2018 14:26 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVER/(UNDER) %CHANGE ALLOCATED MGT %SPENT 2015/2016 2016/2017 01 City Council 396,016 367,442 288,679 300,236 303,321 (64,120) 77% 4% 1% 03 Mayor 4,096,082 3,539,354 3,167,399 3,370,832 3,280,400 (258,954) 80% 6% (3)% 04 Human Resources 706,208 654,943 556,482 599,974 606,121 (48,822) 86% 8% 1% 05 Finance 2,518,813 2,327,624 2,078,257 1,996,461 2,206,802 (120,822) 88% (4)% 11% 06 Attorney 716,955 605,870 501,599 448,916 533,536 (72,333) 74% (11)% 19% 07 Recreation 3,402,859 2,954,062 2,598,868 2,706,186 2,805,570 (148,492) 82% 4% 4% 08 Comm unity Development 3,573,338 3,179,146 2,760,595 2,873,377 2,934,384 (244,763) 82% 4% 2% 09 Municipal Court 1,307,808 1,167,351 1,092,769 1,051,435 1,119,396 (47,954) 86% (4)% 6% 10 Police 18,288,092 16,655,345 15,555,756 16,218,758 16,067,384 (587,961) 88% 4% (1)% 11 Fire 12,262,568 11,328,216 10,846,876 10,680,882 10,949,719 (378,497) 89% (2)% 3% 12 Technology & Innovation Svcs 2,026,820 1,546,247 1,029,765 1,156,552 1,663,956 117,709 82% 12% 44% 13 Public Works 3,802,639 3,440,142 3,061,786 3,295,901 3,181,653 (258,489) 84% 8% (3)% 15 Park Maintenance 1,418,760 1,306,639 1,254,844 1,303,977 1,264,005 (42,634) 89% 4% (3)% 16 Street Maintenance & Operations 3,109,592 2,923,878 2,552,402 2,849,917 2,860,714 (63,164) 92% 12% 0% 20 Dept 20 5,586,206 4,776,760 4,318,885 4,069,855 2,561,693 (2,215,067) 46% (6)% (37)% Total Expenditures 63,212,756 56,773,018 51,664,963 52,923,259 52,338,654 (4,434,364) 83% 2% (1)% Percent o year completed 91.67% 3 INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF NOVEMBER 30, 2017 1/5/2018 14:26 SUMMARY OF SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2015 2016 2017 ACTUAL OVER/(UNDER) % CHANGE ALLOCATED BOLT %SPENT 2015/2016 2016/2017 11 Salaries 27,803,991 25,577,814 23,456,772 24,121,186 24,729,977 (847,837) 89% 3% 3% 12 Extra Labor 779,436 633,749 586,505 591,664 619,902 (13,847) 80% 1% 5% 13 Overtime 1,632,035 1,520,673 1,611,046 1,387,993 1,419,938 (100,735) 87% (14)% 2% 15 Holiday Pay 525,583 414,758 213,405 322,425 320,885 (93,873) 61% 51% (0)% 21 FICA 1,808,483 1,658,396 1,511,766 1,553,909 1,605,967 (52,429) 89% 3% 3% 22 Pension-LEOFF2 866,548 777,854 751,937 743,369 771,675 (6,178) 89% (1)% 4% 23 Pension-PERS/PSERS 1,571,586 1,440,102 1,115,366 1,268,569 1,383,274 (56,828) 88% 14% 9% 24 Industrial Insurance 864,194 736,672 522,282 587,671 561,338 (175,334) 65% 13% (4)% 25 Medical & Dental 5,933,094 5,434,402 4,809,512 5,121,449 5,134,273 (300,129) 87% 6% 0% 26 Unemployment 13,000- 886,895 6,672 40,380 13,639 13,639 105% 505% (66)% 28 Uniform/Clothing 10,460 5,672 4,325 3,011 2,401 (3,271) 23% (30)% (20)% Total Salaries and Benefits 41,808,410 38,200,090 34,589,587 35,741,627 36,563,269 (1,636,821) 87% 3% 2% Percent o year completed 91.67% SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2017 ANNUAL 2017 ALLOCATED 2016 2016 2017 ACTUAL OVER(UNDER) % CHANGE ALLOCATED BDGT %SPENT 2015/2016 2016/2017 Transfers 5,586,206 4,776,760 4,318,885 4,069,855 2,561,693 (2,215,067) 46% (6)% (37)% 31 Supplies 1,176,241 1,070,470 987,688 1,120,277 1,001,610 (68,860) 85% 13% (11)% 34 Items Purchased for resale 22,000 20,450 27,591 20,849 20,215 (235) 92% (24)% (3)% 35 Small Tools 99,818 57,940 346,574 84,695 84,146 26,207 84% (76)% (1)% 41 Professional Services 3,313,211 2,531,029 2,392,284 2,175,874 2,525,998 (5,031) 76% (9)% 16% 42 Communication 449,970 380,690 299,686 351,662 360,277 (20,413) 80% 17% 2% 43 Travel 197,380 189,270 130,734 140,143 159,322 (29,948) 81% 7% 14% 44 Advertising 51,500 39,536 28,267 22,589 20,148 (19,388) 39% (20)% (11)% 45 Rentals and Leases 2,314,372 2,202,678 2,468,141 2,397,745 2,104,166 (98,511) 91% (3)% (12)% 46 Insurance 886,895 886,895 704,347 810,799 887,617 722 100% 15% 9% 47 Public Utilities 1,893,570 1,813,034 1,549,843 1,742,261 1,794,024 (19,010) 95% 12% 3% 48 Repairs and Maintenance 732,613 554,956 540,327 575,515 487,981 (66,975) 67% 7% (15)% 49 Miscellaneous 1,442,773 1,318,860 940,900 948,010 895,695 (423,166) 62% 1% (6)% 51 Inter -Governmental 3,003,792 2,550,589 2,238,087 2,280,123 2,721,887 171,297 91% 2% 19% 53 Ext Taxes, Oper. Assess 5 - 48 12 918 918 18363% (75)% 7383% 64 Machinery& Equipment 234,000 179,771 101,973 441,223 149,688 (30,083) 64% 333% (66)% Total Supplies, Services, and Capital 21,404,346 18,572,927 17,075,376 17,181,632 15,775,385 (2,797,543) 74% 1% (8)% Percent o year completed 91.67% 4