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Home My WebLink AboutCOW 2019-02-11 Item 4A - Ordinance - 2019-2020 Biennial Budget Amendment to Correct Math ErrorCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayr 's review Council review 02/04/19 Vicky „,....ed4 - , Kc? ft ITEM INFORMATION ITEM NO. 4.A. & Spec 2.1. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 2/4/19 AGENDA ITEM TITLE Adopt an Ordinance correcting a math error in the 2019-2020 general fund budget CATEGORY kj, Discussion 2/4/19 E Motion Mtg Date III Resolution I Ordinance Bid Award Mtg Date E Public Hearing Mtg Date E Other Mtg Date Mtg Date Mtg Date Mtg Date 2/4/19 SPONSOR E Counci l ElMayor OHR DDCD ZFinance Fire ITS OP&R Police EPW E Court SP ONsoR.' s Council is being asked to approve an ordinance that corrects a math error in the 2019-2020 SUMMARY general fund budget so that the legislation correctly reflects the Council's intent regarding the property and sales tax revenue budget. REVIEWED BY C C.O.W. Mtg. E CDN Comm Z Finance Comm. E Public Safety Comm. C Trans &Infrastructure 111 Arts Comm. [j] Parks Comm. C Planning Comm. DATE: 1/28/19 COmmii 1EE CHAIR: MCLEOD RECOMMENDATIONS: SPONSOR/ADMIN. Comm Finance -I -FEE Unanimous Approval; Forward to Regular Meeting COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 2/4/19 Informational Memorandum dated 1/23/19 Draft Ordinance Minutes from the Finance Committee meeting of 1/28/19 2 iTh`Pl's City of Tukwila 0 Otik Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Council Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: January 23, 2019 SUBJECT: Correct math error in ordinance that adopted 2019-2020 biennial budget ISSUE The ordinance that adopted the 2019-2020 biennial budget contained a math error in the general fund. The general fund budget did not include Council's intent regarding the property tax or sales tax revenue budget. BACKGROUND At the work session with Council held on October 24, 2018 staff provided updated information on both property tax and sales tax revenue. The City had received updated property tax information from King County indicating that the property tax revenue budget could be increased by $250 thousand. Additionally, sales tax revenue in 2018 was exceeding budget by $132 thousand and exceeded prior year revenue by $1.26 million. Due to the increased sales tax collections, the budget for sales tax in 2019 was to be increased by $650 thousand. There was Council consensus to include these increases in the budget adoption ordinance. The ordinance to adopt the budget was approved by Council on December 3, 2018. DISCUSSION Due to a math error when drafting the budget ordinance, both the increase to property tax and sales tax revenue budgets were not included in the final ordinance presented to Council. This error impacted both 2019 and 2020 budgets and resulted in a general fund budget that was adopted $1.8 million less than it should have been. 2019 2020 Property tax $250k $250k Sales tax 650k 650k $900k $900k All other changes requested by Council were included in the budget ordinance. This ordinance is not amending the adopted budget, it corrects a math error. By correcting the math error, the budget will fully reflect Council's intent. RECOMMENDATION Staff is asking that this item be forwarded to the February 4, 2019 Regular Meeting for adoption. ATTACHMENTS Draft ordinance. 3 4 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2597, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2019-2020 BIENNIUM, TO CORRECT A MATH ERROR IN THE AMOUNTS SHOWN FOR THE GENERAL FUND (FUND 000); PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 3, 2018, the City Council of the City of Tukwila adopted Ordinance No. 2597, which adopted the 2019-2020 biennial budget of the City of Tukwila; and WHEREAS, a math error was discovered when reconciling the General Fund to the budget adoption ordinance; and WHEREAS, a correction to the budget adoption ordinance was presented to the City Council in a timely manner for their review; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Ordinance No. 2597 is hereby amended with the City Council's adoption of the corrected General Fund amounts for Expenditures and Revenues in the 2019-2020 Biennial Budget as shown below: FUND EXPENDITURES REVENUES 000 General $113,908,876 $143,908,876 $145,733,333 $145,733,333 W: Legislative Development\Budget ord for 2019-2020 amended to correct General Fund amts 1-17-19 VC:bjs Review and analysis by Barbara Saxton Page 1 of 2 5 Section 2. Copies on File. A complete copy of the budget for 2019-2020, 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 3. 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 4. 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 5. 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 , 2019. 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: W: Legislative Development\Budget ord for 2019-2020 amended to correct General Fund amts 1-17-19 VC:bjs Review and analysis by Barbara Saxton Page 2 of 2 6 City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes January28, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Thomas McLeod, Chair; Verna Seal, De'Sean Quinn Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Bruce Linton, Jeff Friend, Aaron Williams, Laurel Humphrey CALL TO ORDER: Chair McLeod called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. Resolution: Business License Exemption for Outside Contractors Staff is seeking Council approval of a resolution that would update the business license fee schedule to exempt businesses without a physical presence and where gross revenue does not exceed $2,000. Following the adoption of this resolution the City can official transition the business license function to the State effective March 28, 2019. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 11, 2019 COMMITTEE OF THE WHOLE. B. Ordinance: Correcting General Fund in the 2019-2020 Biennial Budget Staff is seeking Council approval of an ordinance that would correct a math error in the previous budget adoption ordinance, wherein $900k in property tax and sales tax revenue were not reflected per the Council's direction. Once corrected, the final budget books will be printed and distributed. Chair McLeod asked if this error would result in any process changes. Finance staff is planning to reevaluate and improve the internal budget development process overall. Staff asked for Committee permission to bypass Committee of the Whole in order to expedite the distribution of the budget books. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 4, 2019 REGULAR MEETING. C. November 2018 General Fund Expenditure Report Staff presented the Committee with a financial update through November 2018, which describes the general state of departmental expenditures and to highlight significant trends. General Fund expenditures totaled $54.6 million as compared to the allocated budget of $57.9 million. When compared to the allocated budget, Human Resources, City Attorney, Court, Fire and Technology & Innovation Services are above budget. It is expected that when compared to the full budget at year-end these departments will be near or below budget. Staff will bring the preliminary December report to Committee when available, then present the year-end report to the full Council. DISCUSSION ONLY. 7