The URL can be used to link to this page

Home My WebLink AboutFIN 2018-09-05 Item 2E - Budget - 2019-2020 Biennial Budget: Finance Department / Contingency Fund 105City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL E ORANDU TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Finance Team CC: Mayor Ekberg DATE: August 29, 2018 SUBJECT: Proposed 2019-2020 Biennial Budget Finance Department and Contingency Fund ISSUE Finance Committee to review Proposed 2019-2020 Biennial Budget for Finance Department (000.05) and the Contingency Fund (Fund 105). 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. DISCUSSION The Finance Department is the backbone of the City. The Department budgets for and processes all City financial transactions and analyzes and reports the results. The volume of transactions is unmatched by any other department within the City. The 2019-2020 Finance Department budget outlines the Department's many accomplishments in the 2017-2018 biennium and the goals for the 2019-2020 biennium. It includes the Department's Priority Based Budgeting programs and the number of staff hours and the budget for each. In keeping with the City's budgetary goals, the 2019 budget has been reduced by 2.26% from the 2018 budget and the 2020 budget has been held to a 2.84% increase - yielding a net biennial increase of just .58%, or less than 1%. 55 INFORMATIONAL MEMO Page 2 Changes in the 2019-202 Finance Department Budget Staffing levels remain at twelve. In 2018, the Finance Department experienced four vacancies and all but the Treasury Fiscal Specialist position has been filled. This position was left unfilled for budgetary purposes and will be reconsidered for recruitment in the fourth quarter of 2018. Business license processing is scheduled to transition to the State in the first half of 2019. The transition is expected to reduce the amount of time required by the Business License Fiscal Specialist to process business licenses. The resulting increased capacity may be used to enhance grant accounting processes, including conducting outreach and education to other City departments, update policies and procedures, and audit tax returns. In response to the Administration's budget reduction request, the biennial budget was reduced for the extra labor account, the claims and judgment account and a few other accounts. The extra labor budget, reduced from $60,000 in 2018 to $25,000 in 2019 and 2020, better reflects usage over the past year. The claims and judgment account was also reduced based on usage. The 2019 professional services budget includes funding for assistance in determining the City's arbitrage liability and in updating the indirect cost allocation. Arbitrage occurs when investment earnings on tax exempt bond proceeds exceed a certain threshold; the excess earnings must be remitted to the Internal Revenue Service. The indirect cost allocation was developed by the FSC Group in 2010. The proposed update would modify the model for changes that have occurred within the City, increase understanding and transparency of the methodologies and calculations within the model, and simplify the process for updating the model. The 2020 professional services budget includes funding for assistance from our accounting software provider, Tyler Technologies, for better utilization of the budget and capital asset software modules and for better understanding of the accounting system data tables for improved analysis and reporting. It also includes funding to transition accounts payable and other processes to a more paperless system. Contingency Fund The Contingency Funds consists of two reserves — the 10% One-time Revenue reserve and the 10°A) Minimum Fund Balance reserve. Under the Reserve Policy, funding for the 10% One-time Revenue reserve is discretionary and therefore is not budgeted; funding for the 10% Minimum Fund Balance reserve is mandatory and is budgeted. Also, the minimum fund balance, exclusive of the 10% One-time Revenue reserve, must equal 10% of the prior year operating revenue. For 2017, the operating revenue totaled $60,514,326, thus the 2018 ending fund balance will equal $6,051,432; for 2018, the operating revenue is estimated at $62,000,000 and therefore the 2019 budgeted ending fund balance equals $6,200,000; for 2019, the operating revenue is estimated at $65,000,000, therefore the 2020 budgeted ending fund balance equals $6,500,000. Should the operating revenue estimate change for 2018 or 2019, the funding estimate for 2019 and 2020 would also change, respectively. RECOMMENDATION Staff is seeking committee feedback on the proposed department budget and direction to forward it for discussion to the September 10, 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 1st, community outreach, and a public hearing. ATTACHMENTS -Draft 2019-2020 Finance Department Budget -Draft 2019-2020 Fund 105, Contingency Fund Budget 56 Mound Agenda Items1Finance19.5.18 Finance105FIN Info Memo,docx Finance Deputy Finance Di rector (1) Fiscal Manager(l) Senior Fiscal Coordinator Fiscal Coordinator Utility Billing (1) Fiscal Specialist - Utility Billing Fiscal Coordinator - Revenue & Capital Assets Fiscal Specialist - Payroll (1) Fiscal Specialist ' Accounts Payable (1) Fiscal Technician - Cashiering, Fiscal Specialist Treasury(1) Fiscal Specialist Business Licenses (1) 58 DEPARTMENT: Finance (05) FUND: General RESPONSIBLE MANAGER: Peggy McCarthy Description FUND NUMBER : 000 POSITION: Director The Finance department provides an array of services that include financial data processing, treasury cash control, utility billing and collection, payroll, accounts payable, accounts receivable, business licenses, preparation of the biennial budget and Comprehensive Annual Financial Report (CAFR), and risk management. The Finance Department also serves as liaison to the State Auditor's Office during the annual audit of the City's compliance with legal and financial reporting requirements. 2017-2018 Accomplishments — Strategic Goal 4 • Implemented an IVR (Internet voice recognition) system so customers can pay their utility bills using their phone 24/7; also instituted a phone call routing system (phone tree) so phone calls are received by the appropriate staff more expeditiously. • Reduced the cashiering front counter hours so the Finance Team can meet together weekly — promoting communication and teamwork and allowing the cashier to "cash out" the two cashiering stations by the end of the business day. • Two City facing SharePoint sites were established — one, Financial Reporting, for monthly budget to actual reports for departmental and general fund transactions and balances; and another, Accounts Payable, for bi-monthly departmental expenditure reports posted after each check run, and other related purchasing information. The basis for the business license fee calculation was changed from full time equivalent (FTE) employee hours to a per employee basis. Legislative work was accomplished in a short time frame. This change has been well received by the business community. • Managed the park and fire impact fee update process resulting in new rates, better defined rate categories and a rate model to facilitate future updates. • An $8.2 million bond was issued to finance residential street projects and the $2.25 million short term urban renewal debt was refinanced — all at competitive interest rates. • A $20 million bond was issued to finance the Public Works Shops portion of the Public Safety Plan; the City's AA stable credit rating by the S&P rating agency was affirmed. • The initial stages of Priority Based Budgeting were implemented. • A new forecasting model, Whitebirch, was acquired and is being used for long range financial planning. 59 � Several financial omanahoa, referred to as financial fnamevvorko, were developed for the Public Safety Plan to assist in decision making on scope, timing and funding of the project. * Reporting to the Public Safety Plan Financial Oversight Committee was established and continues as8Oongoing commitment tOthe [ih/Stransparency. + Front counter glass was installed to improve security and safety. Managed a 30% staff turnover partially due to retirements and hired three new full- time staff. * Transitioned billing for surface water services to King County to increase collections and create efficiencies. Instituted monthly departmental expenditure reporting to the City Council. � Financial audit completed with no findings and no nl8noQe[OeOt letter items. {9FCA 8vv8rd for financial statement preparation received. * Created and distributed ath-fo|d pamphlet, Simple Guide to Finance Department Services" which has been replicated by several departments. � Conducted two |aen trainingo led by the State Auditor Office — one on Rink Management practices and one on the Cash Receipting / Banking process, + Finance Team received the Citywide Teamwork in Action Award. 2019-2020 Outcome Goals — Strategic Goal 4 + Support outreach and successfully administer new revenue streams and/or manage increases inexisting revenue streams. w Transition business license administration to the State system. * U-pgradeVfwork area. � Continued refinement of the Priority Booed Budgeting and the VVhit8biFoh forecasting rnOdei Issue the remainder ofthe voted debt and Up10 $25million inlimited tax general obligation (LTG[) debt in support of the Public Safety Plan. + Issue Banking Services RFP to secure a new banking contract. � Further digitize the financial processes including going oaoereen for daily cash receipt packets, accounts payableprocessing and journal entry processing and storage. * Enhance grant accounting services. + Complete arbitrage calculations in compliance with Internal Revenue Service regulations. • Review for potential modification the indirect cost allocation model. • Revise the City's financial chart of accounts to help facilitate financial reporting and Priority Based Budgeting. • Establish convenience fee for processing telephone payments. • Consider establishing a convenience fee for processing all Finance related credit card transactions. • Improve the budgeting process by more fully utilizing the current EDEN budget software or by other means. • Utilize the EDEN capital asset module to track and account for the City's capital assets converting records from existing Excel platform. • Research and consider billing for water and sewer services every other month rather than monthly to create efficiencies and reduce costs. • Research and consider implementing a new utility billing system. • Change the payroll pay dates to accommodate implementation of new timekeeping systems, Telestaff and Lucity. • Establish and document a fleet funding policy. • Accrue tax revenue on a monthly or quarterly basis to improve financial reporting and analysis. • Update utility shut-off process by using printed notices in place of handwritten notices. Explore possibility of mailing notices instead of using door hangers. 2019-2020 Indicators of Success • Institute new revenue stream or increases to existing revenue streams. • Support the Public Safety Plan by issuing the remainder of voted debt and additional councilmanic debt. • Streamline processes by implementing Tyler Cashiering System, incorporating new banking features and converting daily cash receipt packets from paper to electronic. 61 62 Performance Measures Finance ' Aou'a] Projected 2016 2017 Estimated 2018 2019 2020 Number and value oftransactions processed at the front counter 31.789 $3.539.698 30.108 $ 36,172,422 31.000 $ 39.00I000 31`000 $ 38.000,000 21.000 $ 40.000,000 Accounts payable transactions processed annually 1*`816 15.555 10.221 16/915 17.648 Number ofwater, sewer and surface water bills mailed 43.650 44.035 *4.435 50.000(a) 30,000*/ Shut off notices distributed annually, 410 458 43* 450 450 Approximate number cfpayroll transactions 10.995 11.205 11.419 11.637 11.858 Number nfbank account entries recorded nr reconciled annually 17.582 18.003 18.434 18,875 18.327 Number ofbusiness licenses processed 2`857 3`6*7 3.700 5`753 3,864 $V Areduction m,approximately 10,0OObills ifsurface water billing istransferred mKing County Budget Change Discussion: Salaries and Benefits COLA and step increases were applied to salaries, and benefits were adjusted to account for changes inhealthcare and retirement. |Extra labor was decreased tomore accurately reflect historical usage. /\dditiOO8||y. the Treasury Specialist position will bereconsidered for recruitment in the fourth quarter of2O1O. Supplies and Services Claims and Judgements and Professional MennbarohipovveneredUUedinovder to bring the budget for each more closely in line with historical trends. The department also seeks to reduce expenditures for travel, credit card fees, office supplies, and various communications expenses. Department Detail: Staffing and Expenditure by Program PROGRAMS FTE BU DG ET PERCENT 2019 2020 2019-20 Insurance & Risk Management 0.33 759706 775811 2.12% Financ1a|Repordng/[AFR/Audit 0.75 218,804 229105 4.71% Utility Billing 1.70 210,949 216,301 2.54% Caohie/ing/Trea*ury/8anNng/UndaimedProperty 2.12 209,576 213,696 1,92% Payroll &BenefitAdministration 1.37 196636 208'803 3.6% Accounts Payable/Juror Payments/CTR/SCORE/Va||eyCorn I.46 182,024 108,300 3.45% Business License Administration 1.05 124948 61459 -50.81y& Budget Preparation 0.67 123,032 143,213 16.4196 Administradon/[ommunication/Teombui|dinQ 0.37 75,381 77,097 2.28% Debt Management 0.30 67,523 54,438 -19.30% Financial Reporting & Analysis for Departments 0.31 63,362 67,061 5.84% GL/EdenAdm|nistraton 0.24 59,329 67,174 19.22% AccountuReceivab|e/Minc. Billings/LID 0.38 51/49 55,324 7.53% Grant Accounting 0.37 50,967 72,809 42.80& Sales & Other Taxes 0.30 5I947 96838 90.07V& Public Safety Plan 0.30 48,928 51,216 4.5896 Capital Asset Accounting 0.77 42,762 49,600 15,99% |nvestment/[a«hK8onagement/repmrting 0.30 4I020 41,522 I75% Indirect Cost Allocation 0.12 33,489 15\620 '41.41% Long -Range Financial Planning Model 0.10 33,096 33,826 2.2I& Training &Development 0.I8 26,498 27,197 2.640 Emergency Preparedness 0.01 1,678 1,773 5.66Y& PROGRAK8TOTAL3 12,00 2,671,195 2,747,185 2.8% *Priority Based Budgeting was implemented beginning with the zozs 2n2pbiennium budget. Therefore, no historical data is available. Expenditure Summary ` _--_- ---_--- Expenditures nvType Axtua/ ' _ _ . � auonot ~, Percent Change ona 2017 Projected 2018 mmm 2019 eouo 2018-19 2019-20 ealonosuWages Personnel Benefits Supplies Services m 993,607 376.194 32.309 735`518 o 1.055.190 416.263 20,280 915.528 $ 1.070.965 423,367 *5.427 1.05e.0*7 $ 1.143.:41 470.776 24,000 1.094.396 a 1.162.381 456,842 23.100 1.028,872 $ 1.202,770 *76.144 23.100 1.0*5.171 1,62m -2.96% -3.75% -5,9em 3.47m 4.23% 0.00% 1.58m oepartne"tTvta| * e.137.6e8 $ x.*or.coc $ 2.597.801 $ 2.733.018 $ 2,671.195 o 2,747,185 's,zom c'n*% 64 Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for eXSdnQ positions and include o cost of living odivatnerd per contract agreements. Position Description 2018 FTE 2019 FTE 2019BudQated Se|ehee Benefits 2020 FTE 2020BudQated Salaries Benefits Finance Director 1 1 * 159.004 $ 49.120 1 $ 162.168 G 50.472 Deputy Finance Director 1 1 132.511 45.028 1 135.108 46,283 Fiscal Manager O 1 110,800 38.757 1 118.704 41.197 Senior Fiscal Coordinator 1 1 100.825 37,290 1 108.008 39,618 Fiscal Coordinator 3 2 202.673 68.502 2 211.588 71.713 Fiscal Specialist 5 5 371`923 179.904 5 381.314 187.119 Fiscal Support Technician 1 1 40.544 34,767 1 50.878 36.288 Extra Labor 25.000 2.478 25.000 2.478 Overtime 10.000 991 10.000 891 DeportmnntTota| 12 12 $1,162'381 $ 456'842 12 $1'203,770 u 476'144 Expenditure Detail — Supplies, Services and Other Supplies include miscellaneous office supplies; include 8nnU@| audit fees, liability insurance, software maintenance costs, travel, claims &judgments, subscriptions, and memberships, among others. Account Number xvma/ anuep oom 2017 Projected uma 2018 2019 muo 000�05.514.230.31o0 auppnea-offioe 000.05.51*230.35o0 amaUTooyaspv/pmem-squ/pmemm improve functionality and processes m 26,306 6,003 m 16.3/8 3,902 m 39,950 5,477 u 19,000 5,000 S 18.100 5,000 m 18,100 o`000 Total Supplies 32,309 20,280 *y.*cr 24'000 23'100 23.100 000.05.51*�230,*1.00 Prof Svcs Annual audit from State ofwm Auditor's Office, Consultant inun1ofor arbitrage calculations, indirect 'cost allocation and monxofor budget and fixed asset Eden modules ornew software, Crystal Reporting 000»5.514.230,41o/ Prof Svcs 'M/onmexsales tax auditing program 000.05.51*.230AZOo Communications Postage, delivery service, mtemetcard 000.05�514.230.43.00 Travel ' Meals, parking, mileage for wFoA. porcm.scmwamtm|nino 000.05.514.230.45�00 Rental - Copier lease 000,05.514.230.46.00 Insurance Boiler and machinery 000.05.514.230.**.01 mouranca-uommy.urimeonu,mooty 000.05�14.230,48o0 R&M Folding machine, other equipment, �uu.sdenyvftwomannua|m�msnenco 000o5.*1*230.49.00 miac'Annual memberships, uro*. wpox,armor car oewoe.registrations noo.us.s14.oun.*n.onmiso-Cla/mamiuugmanta 000.05a14.230.49.08 mi,c-pp|cnuuuard fees 138.681 1.685 s* 4se/ ' 3.28* 7.571 330,968 anTa� ' 18.09/ 160.514 10.291 273.471 1.320 oro y.00a 3,002 7.549 345.10e �^//�u' 27,090 89,100 11.636 154.397 5,000 480 �402 1.014 e.283 389,236 rr' rrr 67,942 334.702 12.813 1e5,000 *.000 1.000 10.000 3,500 13.100 385,996 a�nou 45,900 382,000 14.000 18e.000 - 600 8,000 3,500 8.100 386.772 78,900 25,000 320,000 12.000 186'000 mm 8.000 u'aon 8.100 *nu.xo* 81.662 25,000 uan/noo 12.000 Tote /Services 735.518 e15^529 1.058.047 1'094.396 1.028.872 /.045.171 Total Supplies, Services and Other $ 7e7,827 $ 935,809 $1.103.*74 s1.118.396 y1,051.972 $1.068.271 DEPARTMENT: N/A FUND: Contingency Fund RESPONSIBLE MANAGER: Peggy McCarthy Description DIVISION: N/A FUND NUMBER: 105 POSITION: Director Sufficient fund balances and reserve levels are important for the long-term financial stability of the City. This fund provides for a reserve fund balance equal to or greater than 10% of the previous General Fund on -going revenue, exclusive of significant non -operating, non -recurring revenues such as real estate sales or transfers in from other funds. Amounts held in this fund can be used for more restrictive, emergency type purposes. All expenditures from this fund require Council approval. This fund is reported as a sub -fund of the general fund in the City's Comprehensive Annual Financial Report. Expenditure & Revenue Summary Continqencv Fund Actual Budget %Change 2016 2017 Projected 2018 2018 2019 2020 2018-19 2019-20 Operating Revenue Investment Earnings Transfers In $ 29,666 433,682 $ 45,736 180,715 $ 77,582 92,672 $ 20,000 - $ 90,000 58,568 $ 90,000 210,000 350.0% 0.0% 0.0% 258.6% Total Revenue 463,349 226,451 170,254 20,000 148,568 300,000 642.8% 101.9% Operating Expenses Total Expenses - - - - - _ - - Beginning Fund Balance Change in Fund Balance 5,587,275 463,349 6,050,624 226,451 6,277,075 170,254 5,874,563 20,000 6,447,329 148,568 6,595,897 300,000 9.7% 642.8% 2.3% 101.9% Ending Fund Balance 10% One-time Revenue Remainder/Main Resene 257,382 5,793,242 395,897 5,881,178 395,897 6,051,432 n/a n/a 395,897 6,200,000 395,897 6,500,000 - - 0.0% 4.8% $6,050,624 $6,277,075 $ 6,447,329 $ 5,894,563 $6,595,897 $ 6,895,897 11.9% 4.5% 67 68 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL E ORANDU TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: August 29, 2018 SUBJECT: Urban Renewal and General Government 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 Urban Renewal and General Government funds section of the budget is ready for review by the Finance Committee. BACKGROUND The Urban Renewal fund is utilized to provide future funding needs to encourage redevelopment in specific areas throughout the City. Current projects tracked in this fund include Tukwila Village. The General Government Improvement fund is used for improvements, additions, or other miscellaneous minor capital projects not provided for elsewhere. Projects that benefit multiple departments or functions are given priority. DISCUSSION Urban Renewal: The proposed budget reflects minor costs associated with Tukwila Village. Transfers out are transferring out existing fund balance to the general fund to cover the cost of a one-time project for the fire department. Fund balance exists due to previous year land sale revenue General Government Improvements: The proposed budget includes a transfer in of $300 thousand each year, which represents an increase of $100,000. Planned projects include siding and roof repairs at both TCC and City Hall. RECOMMENDATION Staff recommends that the Finance Committee forward these sections 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 Urban Renewal and General Government Improvement Funds 2019-2020 Proposed Budgets CIP pages 69 70 DEPARTMENT: FUND: Urban Renewal RESPONSIBLE MANAGER: Henry Hash Description FUND NUMBER: 3O2 POSITION: Director The Urban Renewal fund has been established to provide future funding needs to encourage redevelopment in specific areas throughout the City. 2017-2018 Accomplishments + Closed sale Vfphase one land toTukwila Village developer. * Completed construction ofphase 1 and held community celebration. * Formed a non-profit nonlnlunib/ organization to manage the Sullivan Center. * City Council selected HealthPoint to develop a new Health and Wellness Center which will include primary care medical, danto|, behavioral health and other services. 2019-2020 Outcome Goals + Complete the final phase OfTukwila Village. * Execute opurchase and sale agreement with Hea|thPo|nt w Sell the former Traveler's Choice motel property. * 8e|| the former Nevvporter yNnte| property. 2O19'2O2OIndicators mfSuccess + Tukwila Village iacompleted. + City and Hgo|thPointexeoute G purchase and sale agreement. * City sells Traveler's Choice and Newporter sites. 72 Revenue and Expenditure Summary Urban Renewal 2016 Actual 2017 2018* 2018 Budget 2019 2020 Percent Change 2018-19 2019-2020 Operating Revenue Miscellaneous Revenue Investment Earnings $ 2,706 $ 12,252 $ 21,206 $ 3,600 $ 10,000 $ 10,000 177,78% 0,00% Interfund Loan Received - - - - - - Other Misc Revenue - - - - - - 0.00% 0,00% Total Miscellaneous Revenue 2,706 12,252 21,206 3,600 10,000 10,000 177.78% 0.00% Total Operating Revenue 2,706 12,252 21,206 3,600 10,000 10,000 177,78% 0.00% Capital Project Revenue Sale of Tukwila Village/Phase 1 - - - 4,311,000 - - 0.00% 0.00% Total Revenue 2,706 12,252 21,206 4,314,600 10,000 10,000 -99.77% 0.00% Capital Projects Tukwila Village 17,553 50,314 9,811 15,000 15,000 15,000 0,00% 0.00% City Facilities 34,059 - - 21,000 - - 0.00% 0.00% TIB Redevelopment 845,599 3,810 3,500 - 20,000 - 0.00% 0.00% Total Capital Projects 897,211 54,124 13,311 36,000 35,000 15,000 -2.78% -57.14% Transfer to General Fund - 300,000 - 6,050,000 200,000 200,000 -96,69% 0.00% Total Expenses 897,211 354,124 13,311 6,086,000 235,000 215,000 -96.14% -8.51% Beginning Fund Balance 3,441,546 2,547,041 2,205,169 1,747,306 2,213,064 1,988,064 26.66% -10.17% Change in Fund Balance (894,505) (341,872) 7,895 (1,771,400) (225,000) (205,000) -87.30% -8.89% Ending Fund Balance $ 2,547,041 $ 2,205,169 $ 2,213,064 $ (24,094) $ 1,988,064 $ 1,783,064 -8351.28% -10.31% *Projected 73 Expenditure Detail — Supplies, Services and Other Services include costs associated with the Public Safety Plan, consulting, and engineering. Capital includes the purchase of property and costs associated with urban renewal projects. Urban Renewal Account Number 2016 Actual 2017 2018* 2018 Budget 2019 2020 302.98.518.200.41.00 302.98.518.200.43.00 Prof Svcs - Feasibility study Travel - Mileage, parking 33,357 - - - - - - - - - - - 302.98.518.200.44.00 Advertising - Bid ads 702 - - - - - 302.98.518.200.49.00 Misc - Tukwila Village - 5,521 - - - - 302.98.559.300.41.00 Prof Svcs - Consulting, engineering 775,434 38,121 - - - - 302.98.559.300.43.00 Travel - 12 - - - - - 302.98.559.300.45.00 302.98,559.300.47.00 Rental - TIB redevelopment Public Utilities - TIB redevelopment 1,530 69 - - - - - - - - - - 302.98.559.300.47.21 Public Utilities - TIB redevelopment (97) 85 - - - - 302.98.559.300.47.22 Public Utilities - TIB redevelopment 248 - - - - - 302.98.559.300.47.25 Public Utilities - TIB redevelopment 10,964 117 - - - - 302.98.559.300.47.26 Public Utilities - 11B redevelopment 12,285 10,281 - - - - 302.98.559.300.49.00 Misc - TIB redevelopment 632 - - - - . 302.98.594.180.41.00 Prof Svcs - Consulting, engineering - - 3,695 25,000 - . 302,98.594.190.47.25 Utilities -Water/sewer - - 201 - - _ 302.98.594.190,47.26 Utilities - Surface water - - 9,415 - - - Total Services 835,135 54,124 13,311 25,000 - - 302.98.594.180.61.00 Capital - Land (Right of Way) - - - 11,000 35,000 15,000 Total Other - - - 11,000 35,000 15,000 Total Supplies, Services and Other $ 835,135 $ 54,124 $ 13,311 $ 36,000 $ 35,000 $ 15,000 *Projected 74 DEPARTMENT: N/A FUN[]: General Government Improvement RESPONSIBLE MANAGER: Henry Hash FUND NUMBER: 3O3 POSITION: Director Description: The General Government Improvement fund iaused for improvements, additinno.orothernn|smel|aneouo minor capital projects not provided for elsewhere. Projects which benefit multiple departments or functions will be given priority. 3017'2018Auccornp|ishnmmnts * Remodeled Technology and Innovation Services office area. * Completed additional card access security atCity Hall. # Repaired brick walkway grout at City Ho|| and Tukwila Community Center. * Completed HVACimprovements toCity hall and O30OBldg. + Completed Phase | of Tukwila Community Center aiding repairs. 2O13'2O20Outcome Goals + Improve conditions of existing facilities. 2O19-3O2DIndicators mfSuccess * Complete siding/roof repairs at City Hsdi + Complete siding/roof repairs at Tukwila Community Center. 76 Revenue and Expenditure Summary General Government Improvements 2016 Actual 2017 2018* 2018 Budget 2019 2020 Percent Change 2018-19 2019-20 Operating Revenue Miscellaneous Revenue Investment Earnings $ 1,156 $ 2,487 $ 3,113 500 $ 500 $ 500 0.00% 0.00% Total Miscellaneous Revenue 1,156 2,487 3,113 500 500 500 0.00% 0.00% Total Operating Revenue 1,156 2,487 3,113 500 500 500 0.00% 0.00% Transfers In 200,000 200,000 200,000 200,000 300,000 300,000 50.00% 0.00% Total Revenue 201,156 202,487 203,113 200,500 300,500 300,500 49.88% 0.00% Operating Expenses Salaries & Wages 45,719 40,576 15,349 101,487 111,312 114,072 9.68% 2.48% Personnel Benefits 15,239 13,525 3,837 29,153 41,782 43,943 43.32% 5.17% Supplies - 0.00% 0.00% Services - - - - - - 0.00% 0.00% IntergoVt Services & Taxes - - - - - 0.00% 0.00% Total Operating Expenses 60,958 54,101 19,186 130,640 153,094 158,015 17.19% 3.21% Projects Fire Station #51 EOC Remodel 3,811 - - - - 0.00% 0.00% 6300 Bldg - TIS Remodel 48,331 - - - 0.00% 0.00% Fire Station #53 Replace Carpet - 11,806 i - - - 0.00% 0.00% Police Vehicle Evidence Storage 42,451 - - - - 0.00% 0.00% 6300 Water Service Replace. 45,716 - - - - - 0.00% 0.00% City Hall Siding/Roof Repairs 456 16,806 - - 100,000 - 0.00% 0.00% TCC Siding/Roof Repairs 17,208 63,058 150,000 - 150,000 - 0.00% 0.00% City Hall Card Access/ADA 12,801 29,132 - - - 0.00% 0.00% City Hall HVAC 18,984 - - 0.00% 0.00% 6300 Bldg HVAC - - 20,984 - - 0.00% 0.00% Concrete Repairs 16,371 - - - - 0.00% 0.00% Misc projects 6,513 2,355 25,000 69,360 50,000 141,985 -27.91% 183.97% Total Projects 145,327 171,488 214,968 69,360 300,000 141,985 332.53% -52.67% Total Expenses 206,285 225,589 234,154 200,000 453,094 300,000 126.55% -33.79% Beginning Fund Balance 397,033 391,904 368,802 244,055 337,761 185,167 38.40% -45.18% Change in Fund Balance (5,129) (23,102) (31,041) 500 (152,594) 500 -30618.80% -100.33% Ending Fund Balance $ 391,904 $ 368,802 $ 337,761 $ 244,555 $ 185,167 $ 185,667 -24.28% 0.27% *Projected 77 Expenditure Detail - Salaries and Benefits Salaries are based on actual costs for existing positions and include a cost of living adjustment per contractual agreements. General Government Improvements Position Description 2018 FTE 2019 FTE 2019 Budgeted Salaries Benefits 2020 FTE 2020 Budgeted Salaries Benefits Project Manager 1 1 $ 111,855 $ 41,592 1 $ 114,072 $ 43,105 Department Total 1 1 $ 111,855 $ 41,592 1 $ 114,072 $ 43,105 Expenditure Detail - Supplies, Services and Other All budgeted expenditures in the 2019-2020 biennium are anticipated to be capital project related. General Government Im rovements Account Number 2016 Actual 2017 2018* 2018 Budget 2019 2020 303.98.518.300.31.00 Small Tools - Repair related $ 73 $ - $ - $ - $ - - 303.98.521.230.31.00 Supplies - Office & Operating 326 - - - - - 303.98.594.110.35.00 Supplies - Office & Operating - - 19,935 - - - 303.98.594,180.35.00 Supplies - Office & Operating - - 137,705 - - - Total Supplies 399 - 157,640 - - - 303.98.518.300.41.00 Prof Svcs - Consulting, etc. 4,146 - 15,732 - - - - - 303.98.518.300,48.00 R&M - City Hall siding/roofing repair 303.98.521.230.48.00 Prof Svcs - PD Vehicle Evidence Storage 303.98.522.100.48.00 R&M - FS 53 replace carpet 57,944 39,870 3,811 333 11,439 - - - - - - - - - 303.98.575.500.41.00 R&M - TCC siding/roofing repair 303.98.575.500.48.00 Prof Svcs - TCC siding/roofing repair 16,692 - 1,680 61,178 - - - - - - - 303.98.594.180.41.00 Prof Svcs - General services - - - 20,000 20,000 20,000 303.98.594.180,48.00 R&M - Repair to various City facilities - 25,675 - - - Total Services 122,463 116,037 - 20,000 20,000 20,000 303.98.594.180.65.00 Capital - Various minor construction 11,509 42,241 - 130,000 200,000 200,000 303.98.594.480.65.00 Capital - Howard Hanson Dam 270 - - - - 303.98.594.240.65.00 11,779 42,241 - 130,000 200,000 200,000 Total Supplies, Services and Other $ 134,641 158,277 $ 157,640 $ 150,000 $ 220,000 $ 220,000 *Projected 78 CIP Page # PROJECT TITLE 44 Tukwila Village 45 TIB Redevelopment (Motels) City of Tukwila CAPITAL IMPROVEMENT PROGRAM for 2019 - 2024 URBAN RENEWAL 302 Fund **Other After Six 2019 2020 2021 2022 2023 2024 TOTAL Sources Years 15 15 0 0 0 0 30 0 0 20 0 0 0 0 0 20 2,250 0 Grand Total Changes from 2017 to 2019 CIP: None. 35 15 0 0 0 0 50 2,250 0 ** Denotes other funding sources, grants, or mitigation. 2019 - 2024 Capital Improvement Program 43 8/29/2018 79 CITY OF TUKWILA CAPITAL PROJECT SUMMARY PROJECT: Tukwila Village Project No. 800302e2 T�C��Ui��70o��pm��Tuk�a|n�ma��|Bo��a�8�h1��O�� D��RUPTu]m' � intended for a mixed -use development including a library, plaza, office, retail, and other amenities. JUSTIFICATION: The new development will help revitalize the neighborhood. The library and Phase 1 (Buildings Dand E.Sullivan Center, and plaza) were completed in2O17. Final land STATUS: sale should occur inearly 2O19.Building Awill re -start construction inlate 20U8and open in2O1S.Building 8 will open in2O2Q. MAINT. IMPACT: Land sales reflect the Library for $500,000 in 2015. Sale of land to Tukwila Village developer for $4.5m and COMMENT: Nmmportermotel site for 31mare shown elsewhere inthe CIP. The Gregor House (estimated at $300,000)is not anticipated tobesold and therefore not shown. FINANCIAL Through Estimated in $000's BEYOND TOTAL EXPENSES Design/Engineering Land(R88O Construction TOTAL EXPENSES 1.756 7,598 230 e.au« 50 O sV 15 1* 15 15 o n n n o 1756 7.658 230 9,64* FUND SOURCES Awarded Grant Proposed Grant Land Sale Bonus City Qper.Revenue 500 5,550 3`554 30 15 15 V O O O ' O 0 O 500 5,550 3`594 ��m ��o�x �� 44 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2019 to 2024 PROJECT: TIB Redevelopment (Motels) Project No. 91330201 DESCRIPTION: Tukwila International Blvd (TIB) Redevelopment Project is for the acquisition and disposition of properties within and adjacent to the City's Urban Renewal Area. JUSTIFICATION: Improve the neighborhood's safety by eliminating the high amounts of crime associated with the Boulevard Motel, Great Bear Motel, Smoke Shop, Spruce Motel, and Travelers Choice Motel. STATUS: City completed acquisition in 2015 and demolition in 2016. HealthPoint is planning to develop a new health and wellness center on the majority of the site. City will sell the Travelers Choice separately in 2020. MAINT. IMPACT: Upkeep of property until development. COMMENT: Debt service costs are not shown below (see Attachment A). FINANCIAL Through Estimated in $000's 2017 2018 2019 2020 2021 2022 2023 2024 BEYOND TOTAL EXPENSES Engineering 394 394 Land (R/W) 5,205 30 20 5,255 Const. Mgmt. 175 175 Construction 607 607 TOTAL EXPENSES 6,381 30 20 0 0 0 0 0 0 6,431 FUND SOURCES Awarded Grant 0 Land Sale 2,250 2,250 Bonds 6,100 6,100 City Oper. Revenue 281 30 20 (2,250) 0 0 0 0 0 (1,919) TOTAL SOURCES 6,381 30 20 0 0 0 0 0 0 6,431 2019 - 2024 Capital Improvement Program 45 81