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Home My WebLink AboutPS 2018-08-20 Item 2C - Budget - 2019-2020 Biennial Budget: Fire Improvement Fund / Public Safety Plan / Public Works ShopsCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Public Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: August 15, 2018 SUBJECT: Fire Improvement Fund 2019-2020 Proposed Budget ISSUE As provided for in the budget process approved by the Finance Committee, Council Committees will be reviewing budget sections prior to review by the full Council. The Fire Improvement fund section of the budget is ready for review by the Finance Committee. BACKGROUND This program provides fire department capital improvements and apparatus specific to the fire department through impact fees. DISCUSSION The proposed budget for the Fire Improvement fund are as follows: • Fire impact fees are budgeted at $500 thousand for 2019 and $500 thousand for 2020. This does not include the mitigation fees from the Tukwila South agreement. These are recorded in fund (305) for the Public Safety Plan. • Fire impact fees collected will be transferred to fund 305 as partial funding for the construction of 2 fire stations and purchase fire equipment and apparatus. RECOMMENDATION Staff recommends that the Finance Committee forward this section of the budget on to the Committee of the Whole for review. If there are no recommended changes, Council consensus will be requested to move this budget forward to the final budget package in November. ATTACHMENTS Draft Fire Improvement fund 2019-2020 Proposed Budget 9 10 DEPARTMENT: N/A FUND: Fire Improvement RESPONSIBLE MANAGER: Jay Wittwer Description FUND NUMBER: 304 POSITION: Fire Chief The program provides fire department capital improvements and apparatus through Fire Impact Fees. Impact fees are transferred to Public Safety fund to pay for improvements specific to the fire department. Revenue and Expenditure Summary rovement Fund 2016 Actual 2017 2018* 2018 Budget 2019 2020 Percent Change 2018-19 2019-20 Operating Revenue Miscellaneous Revenue Investment Earnings $ 1,216 $ 2,617 $ 202 $ 100 $ 100 $ 100 0.00% 0.00% Total Miscellaneous Revenue 1,216 2,617 202 100 100 100 0.00% 0.00% Capital Project Revenue Fire Impact Fees 183,867 285,075 400,000 50,000 500,000 500,000 900.00% 0.00% Total Revenue 185,084 287,693 400,202 50,100 500,100 500,100 898.20% 0.00% Transfer Out - 1,017,000 400,000 - 500,000 500,000 0.00% 0.00% Total Expenditures - 1,017,000 400,000 - 500,000 500,000 0.00% 0.00% Beginning Fund Balance Change in Fund Balance 551,434 185,084 736,518 (729,307) 7,210 202 677,731 50,100 7,412 100 7,512 100 -98.91% -99.80% 1.35% 0.00% Ending Fund Balance $ 736,518 $ 7,210 $ 7,412 $ 727,831 $ 7,512 $ 7,612 -98.97% 1.33% *Projected 11 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: August 15, 2018 SUBJECT: Public Safety Plan and City Facilities Funds 2019-2020 Proposed Budget ISSUE As provided for in the budget process approved by the Finance Committee, Council Committees will be reviewing budget sections prior to review by the full Council. The Public Safety Plan and City Facilities funds section of the budget is ready for review by the Finance Committee. BACKGROUND The Public Safety Plan fund is used to account for construction costs associated with the new Justice Center and reconstruction of fire stations. Projects in this fund are funded by voter approved debt, non -voted debt (LTGO) and dedicated revenue sources including real estate excise tax, fire impact fees, and land sale proceeds. The City Facilities fund accounts for costs associated with major reconstruction of City facilities including the Public Works shops facility. Projects in this fund are funded by LTGO or other non -voted debt options. DISCUSSION Public Safety Plan Fund: The proposed budget reflects updated project costs as presented by SOJ on August 1, 2018. Because fire station 54 was removed from the plan, soft costs that had been allocated to fire station 54 had to be reallocated to the remaining projects. At the end of the biennium, the fund is expected to have an ending fund balance of approximately $2.5 million. City Facilities fund (PW Shops): Funding for PW Shops facility in the City Facilities fund include LTGO bond proceeds in 2019 to purchase land for the Public Works Shops facility and remodel existing structures to accommodate City staff needs. It is anticipated that construction will be completed in 2020 and any remaining funds will be transferred to the public safety plan fund. Updates to the Financial Framework: The financial framework, as presented to the Finance committee on June 5, 2018 included issuing LTGO debt of $20 million in 2020. Because of changes in timing of expenditures and reallocating soft costs from fire station 54 to the remaining projects, the City now expects to issue $25 million in 2019. Fire impact fee budget has also been increased from $300 thousand to $500 thousand to reflect the increase in the impact fee rates. RECOMMENDATION Staff recommends that the Finance Committee forward this section of the budget on to the Committee of the Whole for review. If there are no recommended changes, Council consensus will be requested to move this budget forward to the final budget package in November. ATTACHMENTS Draft Public Safety Plan and City Facilities Funds 2019-2020 Proposed Budgets 13 14 DEPARTMENT: N/A FUND: Public Safety Plan Fund RESPONSIBLE MANAGER: Henry Hash Description FUND NUMBER: 305 POSITION: Director The Public Safety Plan fund is used to construct a new Justice Center, which will house the Police department and Court, and reconstruct existing fire stations. Projects in this fund are paid for with voter - approved debt, non -voted debt (LTGO), and other dedicated revenue sources including real estate excise taxes, impact fees, and proceeds from land sales. Revenue and Expenditure Summary Public Safety Plan Actual Budget Percent Change 2016 2017 2018* 2018 2019 2020 2018-19 2019-20 Operating Revenue Miscellaneous Revenue Investment Earnings $ 9,561 $ 258,283 $ 503,546 $ - $ 300,000 $ 100,000 0.00% -66.67% Total Miscellaneous Revenue 9,561 258,283 503,546 - 300,000 100,000 0.00% -66.67% Capital Project Revenue Tukwila South Mitigation - 500,000 300,000 300,000 300,000 300,000 0.00% 0.00% Real Estate Excise Tax - - 500,000 - 500,000 500,000 0.00% 0.00% Sale of Land - - - - 5,289,300 775,000 0.00% -85.35% UTGO Bond Proceeds 32,990,000 - - - 40,675,046 - 0.00% 0.00% LTGO Bond Proceeds - - - - 17,500,000 - 0.00% 0.00% Premium on Bond Proceeds 3,719,954 - - - - - 0.00% 0.00% Total Capital Project Revenue 36,709,954 500,000 800,000 300,000 64,264,346 1,575,000 21321.45% -97.55% Transfers In - Fire Impact Fees - 1,017,000 400,000 - 500,000 500,000 0.00% 0.00% Transfers In - City Facilities Fund - - - - 1,750,000 283,709 0.00% -83.79% Total Revenue 36,719,516 1,775,283 1,703,546 300,000 66,814,346 2,458,709 22171.45% -96.32% Expenditures Justice Center 123,833 431,266 17,869,000 2,157,000 26,596,000 23,515,000 1133.01% -11.58% Fire Station 51 59,853 254,484 1,145,000 5,320,000 9,416,000 2,396,000 76.99% -74.55% Fire Station 52 8,256 161,299 771,000 672,000 2,963,000 13,749,000 340.92% 364.02% Fire Station 54 - 142,791 1,062,000 - 297,000 - 0.00% 0.00% Fire Equipment - - - - 324,578 28,146 0.00% -91.33% Total Capital Projects 191,942 989,840 20,847,000 8,149,000 39,596,578 39,688,146 385.91% 0.23% Transfer for Fire Apparatus 14,447 573,651 4,456,000 3,695,000 300,000 340,000 -91.88% 13.33% Total Expenditures 206,389 1,563,491 25,303,000 11,844,000 39,896,578 40,028,146 236.85% 0.33% Beginning Fund Balance - 36,513,127 36,724,918 10,673,000 13,125,463 40,043,231 22.98% 205.08% Change in Fund Balance 36,513,127 211,792 (23,599,455) (11,544,000) 26,917,768 (37,569,437) -333.18% -239.57% Ending Fund Balance $ 36,513,127 $ 36,724,918 $ 13,125,463 $ (871,000) $ 40,043,231 $ 2,473,794 -4697.39% -93.82% *Projected 15 Expenditure Detail —Services and Capital Services include consulting and design. Capital includes land acquisition and construction. Project costs are related to Public Safety Plan. Public Safety Plan Account Number 2016 Actual 2017 2018* 2018 Budget 2019 2020 305.98.522.220.35.00 Supplies - Office & Operating $ - $ 403,948 $ 2,393 $ - $ - $ - 305.98.594.220.35.00 Supplies - Office & Operating - - 4,066 - 324,578 28,146 Total Supplies - 403,948 6,458 - 324,578 28,146 305.98.594.180.41.00 Prof Sws - Design for Justice Center $ - $ - $ 824,968 $ 2,157,000 $ - $ - 305.98.594.220.41.00 Prof Sws - Design for Fire Stations - - 12,750 1,314,000 - - Total Services - - 837,718 3,471,000 - - 305.00.594.220.64.00 Capital - Land Fire Station - - 882,730 2,269,000 - - 305.98.594.180.61.00 Capital - Buildings & Structures - - 2,977,600 - - - 305.98.594.210.61.00 Capital - Construction of Justice Center - - 13,331,289 - 460,000 - 305.98.594.210.62.00 Capital - Land for Justice Center - 431,266 576,258 - 26,136,000 23,515,000 305.98.594.220.61.00 Capital - Land Fire Station - - 908,000 - - - 305.98.594.220.62.00 Capital - Construction of Fire Stations - 558,574 288,183 - 12,676,000 16,145,000 305.98.594.220.64.00 Capital - Fire equipment - 9,130 1,684 - - - 305.98.594.220.65.00 Capital - Fire Stations - - 868,459 4,654,000 - - Total Other - 998,969 19,834,203 6,923,000 39,272,000 39,660,000 Total Supplies, Services and Other $ - $ 1,402,917 $ 20,678,380 $ 10,394,000 $ 39,596,578 $ 39,688,146 `Projected 16 DEPARTMENT: N/A FUND: City Facilities Fund RESPONSIBLE MANAGER: Henry Hash Description FUND NUMBER: 306 POSITION: Director The City Facilities Fund is used for new construction or major reconstruction of city facilities. The current project accounted for in this fund is the Public Works Shops facility. Revenue and Expenditure Summary City Facilities Actual Budget Percent Change 2016 2017 2018" 2018 2019 2020 2018-19 2019-20 Revenue Bond Proceeds $ - $ - $20,000,000 $23,343,000 $ 7,500,000 $ - -67.87% 0.00% Transfers In - General Fund - 141,854 1,000,000 - - - 0.00% 0.00% Transfers In - Land Acq. (REST) - - 3,000,000 - - - 0.00% 0.00% Transfers In - Utility Funds - 141,854 4,000,000 - - - 0.00% 0.00% Total Revenue - 283,709 28,000,000 23,343,000 7,500,000 - -67.87% 0.00% Expenditures Capital Projects Public Works Shops - 283,709 22,336,000 - 2,879,000 4,501,291 0.00% 56.35% Total Capital Projects - 283,709 22,336,000 - 2,879,000 4,501,291 0.00% 56.35% Transfer to General Fund - - 1,000,000 - - - 0.00% 0.00% Transfer to Utility Funds - - 2,750,000 - - - 0.00% 0.00% Transfer to Public Safety Plan Fund - - - 1,750,000 283,709 0.00% -83.79% Total Expenditures - 283,709 26,086,000 - 4,629,000 4,785,000 0.00% 3.37% Beginning Fund Balance - - - - 1,914,000 4,785,000 0.00% 150.00% Change in Fund Balance - - 1,914,000 23,343,000 2,871,000 (4,785,000) -87.70% -266.67% Ending Fund Balance $ - $ - $ 1,914,000 $23,343,000 $ 4,785,000 $ - -79.50% 0.00% *Projected 17 Expenditure Detail —Services and Capital Services include consulting and design. -Capital includes land acquisition and construction. -Project costs are related to City Facilities. City Facilities Account Number 2016 Actual 2017 2018 2018 Budget 2019 2020 306.98.594.180.41.00 Prof Svcs - Design for PW Shops $ - $ - $ 2,302,000 $ 2,302,000 $ - $ - Total Services - - 2,302,000 2,302,000 - - 306.98.594.180.61.00 Capital - Land PW Shops - - 23,629,879 23,629,879 - - 306.98.594.480.62.00 Capital - Buildings & Structures - 283,709 136,026 136,026 2,879,000 4,501,291 Total Other - 283,709 23,765,905 23,765,905 2,879,000 4,501,291 Total Supplies, Services and Other $ - $ 283,709 $ 26,067,905 $ 26,067,905 $ 2,879,000 $ 4,501,291 'Projected 18