HomeMy WebLinkAboutCOW 2018-08-27 Item 3F - Budget - 2019-2020 Biennial Budget: City CouncilCOUNCIL AGI-e,'NDA SYNOPSIS
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ITEM INFORMATION
ITEM No.
3.F.
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City Council 2019-2020
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I Review
Proposed Budget
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Council is being asked to review the City Council 2019-2020 proposed budget. If no
changes are requested, Council consensus will be requested to move the City Council 2019-
2020 proposed budget to the final budget package for approval in November.
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— Trans &Infrastructure Arts Comm
DXIT, 08/21/18
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Comm. Planning Comm.
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— Parks
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RECOMMENDATIONS:
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Finance
I I Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
1 xpi \ni 1 i 1(1 RI ,,?( ERI D AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
R
RECORD
OF COUNCIL ACTION
08/27/18
MTG. DATE
ATTACHMENTS
08/27/18
Informational Memorandum dated 8/13/18
City Council 2019-2020 Proposed Budget
Minutes from the Finance Committee meeting of 8/21/18
97
98
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Laurel Humphrey, Council Analyst
BY: Jeff Friend, Fiscal Manager
DATE: August 13, 2018
SUBJECT: Proposed City Council Departmental Budget, 2019-2020
Issue
City departments are developing their proposals for the 2019-2020 biennial budget while also
incorporating methods of Priority Based Budgeting (PBB). The 2019-2020 biennial budget will
include general fund department budgets allocated to programs, programs scored, and
programs tiered by support to of the City's strategic goals. The City Council requested that
individual departmental budgets be presented to its standing committees as they become
available.
Background
The City is committed to developing and passing a fiscally -sound, balanced budget.
Two challenges the City is encountering are 1) sales tax revenue growth of 3% projected for
2018 has not been realized to date, and 2) sales tax mitigation payments will end in late 2019.
As a result, the City is seeking a balanced budget with expenditure reductions and possible new
revenue opportunities.
The City Council departmental budget covers compensation and benefits for the seven
Councilmembers and the staff person dedicated to providing legislative and administrative
support to the Council. It also includes supplies, travel, technology, registrations, and
professional services.
Discussion
The proposed budget for the City Council increases .27% for 2019 and 1.51% for 2020.
The following will summarize the proposed changes to the City Council:
Changes from 2017-2018 Budget
• Supplies and services decreased by 19.9% and 7.45%, respectively.
• Salaries and benefits were adjusted according to contractual obligations.
99
INFORMATIONAL MEMO
Page 2
Priority Based Budgeting
Three programs were identified during the PBB process. To allocate Full Time Employees (FTEs)
between the three programs, staff polled Councilmembers in February 2018 on the percentage
of the three categories, then averaged the responses. The results were
• Community Engagement and Events — 20%
• Governmental Affairs and Appointments — 25%
• Legislative Oversight — 55%
Recommendation
Staff is seeking Committee feedback on the proposed department budget and direction to
forward it for discussion at the August 27, 2018 Committee of the Whole. Other steps in the
overall budget review process will include Council -led work sessions, the Mayor's formal budget
delivery on October 1, community outreach, and a public hearing.
ATTACHMENTS
Draft 2019-2020 City Council Budget
1 00 W:IBudget12019-2020 BUDGET\Budget Memos101 CNCL - Memo.docx
City Council
101
DEPARTMENT: City Council (01)
FUND: General
RESPONSIBLE MANAGER: Council President
Description
FUND NUMBER: 000
The City Council is the legislative branch of the City government and is responsible for establishing policy
through the passage of legislation, adoption of the biennial budget, approval of comprehensive plans and
capital improvement programs, and other responsibilities as set forth by state law. Councilmembers also
represent the City in regional intergovernmental affairs as well as through communications with state and
federal legislators. Tukwila has a seven -member City Council, each elected at -large and serving a four-
year term.
2017-2018 Accomplishments
♦ Hired a Program Management Quality Assurance (PMQA) consultant and convened a Bond
Financial Oversight Committee to provide independent reporting and advice on accomplishing the
goals of the Public Safety Plan.
♦ Adopted a citywide Equity Policy
♦ Adopted a Disadvantaged Business Enterprise and a Local Hiring Policy for the Public Safety Plan
construction projects.
♦ Participated on over 25 external and regional boards, committees and commissions per year.
2019-2020 Outcome Goals
♦ Set policies and support programs that are in alignment with the City's mission, vision and strategic
goals. Strategic Goal 4.
♦ Optimize the committee process to monitor and discuss the implementation of strategic goals,
budget priorities, and work plan items. Strategic Goal 4.
♦ Foster robust civic engagement via participation at community gatherings and City outreach events.
Strategic Goal 5.
♦ Maximize opportunities to engage diverse cultures within Tukwila. Strategic Goal 5.
♦ Work cooperatively with partners to address shared issues and concerns. Strategic Goals 1 & 2.
♦ Continue to review, improve and document Council processes and methods. Strategic Goal 4.
2019-2020 Indicators of Success
♦ City legislation, policies, and budget are adopted as appropriate and reflective of strategic goals.
♦ All Councilmembers regularly participate in community and City sponsored events.
♦ Robust participation on external and regional boards, committees and commissions.
♦ Council meetings are efficient, effective, and reflect responsiveness to the community.
102
Budget Change Discussion
Salaries & Benefits COLA and step increases were applied to salaries, and benefits were adjusted to account
for changes in healthcare and retirement.
Supplies & Services Budget amounts were reduced to more closely reflect actual levels of expenditure.
Department Detail
Staffing and Expenditure by Program
PROGRAMS
FTE
BUDGET
PERCENT
CHANGE
2019
2020
2019-20
Community Engagement and Events
1.6
65,562 66,614
1.6%
Governmental Affairs and Appointments
1.95
90,810 91,933
1.2%
Legislative Oversight
4.45
273,939 277,022
1.1%
PROGRAM TOTALS
8.00
430,311 435,569
1.2%
"Priority Based Budgeting was implemented beginning with the 2019 - 2020 biennium budget.
Therefore; no historical data is available.
Program Descriptions
• Community Engagement and Events: Constituent relations, participation in local groups, and
facilitation of special events.
• Governmental Affairs and Appointments: Liaise with other government entities. Includes travel and
registrations to regional, state, and national boards.
• Legislative Oversight: Study information and attend meetings to provide policy direction and budget
authority for City services including training.
103
Expenditure Summary
City Council
Expenditures By Type
2016
Actual
2017
2018*
2018
Budget
2019
2020
Percent Change
2018-19 2019-20
Salaries & Wages
$ 193,841
$199,439
$ 205,968
$ 201,663
$ 210,144
$ 212,760
4.21%
1.24%
Personnel Benefits
81,903
88,305
90,171
91,386
94,847
98,765
3.79%
4.13%
Supplies
3,925
1,899
3,802
4,370
3,500
3,500
-19.91%
0.00%
Services
47,764
66,733
118,273
132,900
123,000
123,000
-7.45%
0.00%
Department Total
$ 327,433
$ 356,375
$ 418,213
$ 430,319
$ 431,491
$ 438,025
0.27%
1.51%
*Projected
Expenditure Detail - Salaries and Benefits
Salaries are based on actual costs for existing positions and include a cost of living adjustment.
City Council
Position
Description
2018
FTE
2019
FTE
2019 Budgeted
Salaries Benefits
2020
FTE
2020 Budgeted
Salaries Benefits
Councilmembers
7
7
$ 105,000 $ 50,719
7
$ 105,000 $ 52,974
Council Analyst
1
1
105,144 44,128
1
107,760 45,791
Department Total
8
8
$ 210,144 $ 94,847
8
$ 212,760 $ 98,765
Expenditure Detail - Supplies, Services and Other
Supplies include office and other miscellaneous supplies. Professional services include retreat facilitator fees,
travel expenses, memberships and dues among other items.
City Council
Account Number
2016
Actual
2017
2018*
2018
Budget
2019
2020
000.01.511.600.31.00
Supplies - Office
$ 3,180
$ 927
$ 2,882
$ 3,370
$ 2,000
$ 2,000
000.01.511.600.31.43
Supplies - Meeting meals
745
972
420
500
1,000
1,000
000.01.511.600.31.44
Supplies - Training materials
-
-
500
500
500
500
Total Supplies
3,925
1,899
3,802
4,370
3,500
3,500
000.01.511.600.41.00
Prof Svcs - Facilitator fees
1,865
24,000
76,500
76,500
76,500
76,500
000.01.511.600.42.00
Communication -Technology costs
4,514
4,194
5,205
6,000
6,000
6,000
000.01.511.600.43.00
Travel -Travel expenses fortmg, mtgs,
retreat: NLC, AWC, SCA, Chamber
30,988
28,326
25,128
40,000
30,000
30,000
000.01.511.600.49.44
Misc- Trainingregistration
10,397
9,990
9,040
8,000
10,000
10,000
000.01.511.600.49.00
Misc - Memberships
-
223
2,400
2,400
500
500
Total Services
47,764
66,733
118,273
132,900
123,000
123,000
Total Supplies, Services and Other
$ 51,689
$ 68,632
$ 122,075
$137,270
$ 126,500
$126,500
*Projected
104
Finance Committee Minutes August 21, 2018
B. Ordinance and Resolution: Updating Commercial Parking Tax
Staff is seeking Council approval of an ordinance and resolution to amend Tukwila Municipal
Code 3.48 to gradually increase the commercial parking tax from 5%to 15% and impose a late
penalty of 10% per month. The Committee of the Whole sent the legislation back to Committee,
asking for information on the legality of exempting nonprofits based upon public comment
received. Staff presented an option that would retain the 5% rate for nonprofits operating on
City property, which would currently apply only to Starfire Sports. Doing so would reduce
projected revenue by approximately $10K in 2019, $21K in 2020, and $36K in 2021. To offset this
revenue loss, the tax could be increased in two steps rather than three, going to 10% in 2019
and 15% in 2020. Councilmember Robertson spoke in favor of exempting Starfire with the two-
step increase. Councilmembers Quinn and Kruller supported exempting Starfire with the three -
step increase. Staff will draft the ordinance reflecting this majority recommendation and
present it to the Committee of the Whole. MAJORITY APPROVAL. FORWARD TO AUGUST 27,
2018 COMMITTEE OF THE WHOLE.
C. Employee Compensation Policy
Staff presented policy recommendations in the areas of above and below market adjustments,
comparable cities, compression, recruitment incentives, and compensation review process for
non -represented employees. Staff also performed a market study with the newly released 2018
salary data from AWC and the results show that the City is still close to the market and
considered competitive. Councilmember Robertson requested that the table in Exhibit A be
updated to include cities +60% assessed valuation. He requested that the table in Exhibit B
include columns showing population and percentage change. Chair Quinn said these should
be additional tables not to replace those already in the Exhibits. DISCUSSION ONLY. RETURN
TO COMMITTEE
D. 2018 2nd Quarter Financial Report
Staff presented the Committee with the City's 2018 2nd Quarter Financial Report which captures
the general state of financial affairs and highlights significant items and trends. General Fund
results are positive with an increase in fund balance of $3.2 million, and revenues of $32.7
million coming in close to budget. Sales tax collected through May reflects a 4%year over year
increase, and admission tax and building permit fees are both strong. Departmental under
expenditures reached almost $2 million. Councilmember Robertson asked that the revenue
table on page 75 call out retail sales tax by itself in a new line or a footnote. Chair Quinn would
like a better understanding of the 3%departmental reductions to be discussed at the upcoming
budget work session. Committee members also asked for an explanation of the decline in utility
tax. DISCUSSION ONLY.
E. 2019-2020 Biennial Budget: City Council
Staff presented the proposal for the 2019-2020 City Council departmental budget, which
includes salaries and wages, benefits, supplies, and services. As the City is transitioning to
Priority Based Budgeting, staff defined the City Council's programs as "Community
Engagement and Events," "Governmental Affairs and Appointments," and "Legislative
Oversight." Budget Oversight may be pulled out into its own category for the purpose of scoring
accurately against the City's strategic goals. The proposed Council budget includes reductions
105
Finance Committee Minutes August 21, 2018
in travel and supplies. Councilmember Robertson asked why Profession Services increased
significantly after 2016, and staff replied this is to cover the Public Safety Plan Program
Management Quality Assurance consultant, Steve Goldblatt. The Committee asked for a note
in the document to explain that. DISCUSSION ONLY. FORWARD TO AUGUST 27, 2018
COMMITTEE OF THE WHOLE.
III. MISCELLANEOUS
Adjourned at 7:21 p.m.
Committee Chair Approval
Minutes by LH
106