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Home My WebLink AboutFIN 2019-03-25 COMPLETE AGENDA PACKETCity of Tukwila Finance Committee o Thomas McLeod, Chair o Verna Seal • De'Sean Quinn AGENDA MONDAY, MARCH 25, 2019 — 5:30 PM HAZELNUT CONFERENCE ROOM (At east entrance of City Hall) Distribution: T. McLeod V. Seal D. Quinn K. Hougardy D. Robertson K. Kruller Z. Idan Mayor Ekberg D. Cline R. Bianchi C. O'Flaherty L. Humphrey Item Recommended Action Page 1. PRESENTATION(S) 2. BUSINESS AGENDA a. Reappointments to the Public Safety Bond Financial a. Forward to 4/1 Regular Pg.1 Oversight Committee. Meeting. Laurel Humphrey, Council Analyst b. January 2019 departmental budget-to-actuals report. b. Discussion only. Pg.5 Jeff Friend, Fiscal Manager c. An update from the Technology and Innovation Services c. Discussion only. Pg.9 Department. Joseph Todd, Technology and Innovation Services Director 3. MISCELLANEOUS Discussion only. Due to the cancellation of the 3/11 Finance Committee meeting, the following 3 items were distributed under separate cover to the Committee members. Staff will be available for questions from the Committee. . Update on priority -based budgeting. Vicky Carlsen, Deputy Finance Director . 2018 4th Quarter sales tax and miscellaneous revenue report. Aaron Williams, Fiscal Manager • Briefing on sales tax audit. Peggy McCarthy, Finance Director 4. ANNOUNCEMENTS Next Scheduled Meeting: Monday, April 8, 2019 SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerkPTukwilaWA.gov) for assistance. City of Tukwila Allan Ekberg, Mayor FOR ATIONAL E ORA DU TO: Finance Committee FROM: Laurel Humphrey, Council Analyst CC: Mayor Ekberg DATE: March 20, 2019 SUBJECT: Reappointments to Public Safety Bond Financial Oversight Committee DISCUSSION Pursuant to Ordinance No. 2509, the City Council established a Public Safety Bond Financial Oversight Committee to independently represent taxpayers concerning the City's expenditure of revenues received from the sale of general obligation bonds. On October 3, 2016 the City Council adopted a Charter for the Public Safety Bond Financial Oversight Committee which established a membership of five individuals to be appointed by the City Council and requires meetings no fewer than twice per year. Positions #3, #4, and #5 expire on March 31, 2019, and the individuals have all expressed an interest in continuing to serve. • Randy Coplen, Position #2 (business) • Sean Goode, Position #3 (resident) • Jessica Jerwa, Position #4 (at large) In addition, staff recommends making the terms of appointment run through December 31 of the expiration year to match the City's other boards and commissions and to align with the Public Safety Bond Financial Oversight Committee's timing of its election of Chair and Vice - Chair, which is intended to occur at the first meeting of each calendar year. Mr. Goode and Ms. Jerwa were elected to continue serving as Chair and Vice -Chair, respectively, at the August 6, 2018 meeting. Once the reappointments for all five positions are corrected to end in December the election schedule can proceed per the By-laws. The Financial Oversight Committee intends to convene a meeting in early April to review bond expenditures made since its last meeting. Recommendation Staff recommends reappointing Randy Coplen to Position #3, Sean Goode to Position #4, and Jessica Jerwa to Position #5, all for a term through December 31, 2021 for consideration at the April 1, 2019 Council Meeting. Attachment Draft August 6, 2018 Minutes 1 2 City ofTukwila Public Safety Bond Financial Oversight Committee August G,2018 6OOUBuilding, Rainier Conference Room L Cali tmOrder O, Roll Call Committee members: Sean Goode, Jun Castillo, RandyCOplen City staff: David Cline, Laurel Humphrey, Peggy McCarthy, Aaron Williams' Guest: Deb Sorensen, resident Ill. Approval of Agenda Mr. Reiswig moved approval of the agenda, andMr. Coplen seconded. The motion carried unanimously and the agenda was approved. IV. Approval of Minutes Mr. Castillo moved approval of - tlh6�April 19, 2018,minutes with the spelling ofhis name corrected, and Mr. Reisvvg seconded. The motion carried unanimously and the minutes were approved 8s anl2ndedn�� V. New Business 1, Election of Chair and Vice -Chair Mr. Reiswig nominated Mr. Goode to serve a second term as Chair and no further nominations were made. By a show of hands, Mr. Goode was re-elected as Chair. Mr. Reiswig nominated Ms. Jerwa to serve a second term as Vice -Chair and no further nominations were made. By a show, of hands, Ms. Jerwa was re-etected as Vice -Chair. 2. Public Safety Plan Project UpdatelOverview C ity staff updated the Committee on the status of projects associated with the Public Safety Plan. After several months of considering options to address the market -related funding gap, the City Council in June made the decision to remove Fire Station 54 from the program, Stations 51, 52 and the Justice Center are moving through the design stages with realistic budgets now known. The Council isbeing asked toapprove amendments tobring ai| contracts in alignment with current budgets. Mr. Goode asked about the impacts of redirecting certain funding for parks t0the Public Safety Plan. While this iSanimpact on parks, the City has not adequately addressed facility needs for decades. Mr. Goode also asked if the budgets reflect the cost of site acquisitions on Tukwila International Boulevard, and staff confirmed that they do. 3. Public Safety Plan Financial Overview The Committee reviewed the original and revised revenue and expenditure budgets for the Public Safety Plan. Total actual revenues through July 3l'20l8are $3g'446,76Ofrom the voter -approved bond, fire impact fees, real estate excise tax, and investment interest. The total for actual and projected reVeOuesis$Il7'745`139.0O.Thetota|expenditurebudget change is $34,752,107. The City's bond rating was recently affirmed at AA stable. Mr. Reiswig asked how fire impact fees are estimated and staff stated that itisbased upon past years and an assessment of current development. The City estimates fee revenue conservatively. The fire apparatus budget decreased because the Counci['s financing plan includes financing the apparatus through a State program in out -years. Station 51 was originally stated to bethe headquarters station and the revised budget reflects the change toStation 5Z.Mr. ReiSvvigasked how contingency is estimated and staff confirmed that itisapercentage Vf construction cost. Mr. Castillo and Mr. Cop[en asked for clarification on the fire apparatus budget. Some equipment has already been purchased, and everything else 'onthe schedule isfunded through 2O2q. 4. Expenditure Report5 The Committee reviewed actual Public Safety Plan expendituresthrough July 3l'2OlO, including adetailed list and current contracts. Actual expenditures through July 3l'2Ul8are $7,673'440.00. Mr. Goode asked why settlement agreement amounts vary and staff stated that the businesses have different values and the City hired an independent appraiser to provide information. Mr. Reism/iginquired how the City istracking the "not tnexceed" amounts inthe contracts and ifthe full amounts will beused. ShieisObietzJohnsen, the City'sproject nlanage/ciose|y[noni±o[sai|coOtnactsandthedoi|aramountsshnu|dbec|ose t0the actuolsatthis point. 5. Committee Charter The Committee is tasked with reviewing its Charter once per year and recommending any desired changes. Staff noted that one Committee responsibility istVreview copies of performance nrfinancial audits ofbond programs, and while 0ospecific Public Safety Plan report exists atthis time, the annual audits for the City are clean. Mr. Cop|enmoved tD renew the Charter as written and Ms. Jerwa seconded. The motion unanimously passed and the Charter was renewed with nochanges. VI. Miscellaneous ~ The Chair and Vice -Chair will work with City staff onscheduling areport tnthe City Council, • Mr. C0plenexpressed appreciation for the service Mr. Gn|db|att the [ouncil'sPublic Safety Plan Program Management Quality Assurance consultant, isproviding. He|Simpressed with Mr. Go|db|att^sknowledge and experience. VII, Adjournment Mr. Goode moved adjournment and Mr. Reamigseconded the motion. The motion carried and the meeting was adjourned at 4:32 p.m. Minutes hy1H, Reviewed kY City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL MEMORANDU TO: Councilmembers CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director BY: Jeff Friend, Fiscal Manager DATE: March 13, 2019 SUBJECT: Year -to -Date January 2019 Financial Update Summary The purpose of the January 2019 Financial Report is to summarize for the City Council the general state of Departmental expenditures and to highlight significant items. The following provides a high-level summary of the Departmental financial performance. The January 2019 Financial Report is based on financial data available as of March 13, 2019, for the period ending January 31, 2019. Additional details can be found within the attached financial report. Departmental Expenditures General Fund expenditures totaled $5.52M, which is about $317K below the allocated budget of $5.84M. The allocated budget is calculated to reflect year-to-date spending patterns of the previous year. Significant Variances • Fire is $55K over budget primarily due to Salaries ($37K) resulting from filling three unbudgeted pipeline positions. Additionally, Industrial Insurance was $19K over budget due to a Worker's Comp Retro Pool payment of the same amount. Historically, Finance has absorbed the entire expense for all departments in the beginning of the year and then allocate it to departments at the end of the year. For 2019, it was determined that the allocation would be made with the initial payment. • Police is $110K under budget primarily due to Salaries ($54K), Overtime ($37K), and Insurance ($37K). Salaries were over budget due to some employee turnover. A few positions were open in January while new employees have filled positions at a lower pay level than that of the employees who were employed during the budget process. Overtime for January was less than anticipated in the budget while liability insurance cost decreased from the previous year. 5 INFORMATIONAL MEMO Page 2 Year to Date Department Expenditures Compared to Allocated Budget (Through January 2019) City Council 111 $32 I $31 $209 Mayor EMS $202 $101 NM Administrative Services MI $131 Finance $550 Attorney $$4 Recreation Community Development Municipal Court Police Fire Technology & Innovation Svcs Public Works $254 11111111111 $264 $273 $281 INN $97 $101 $140 IIMIN $155 $365 MI $109 MN $191 Street Maintenance & $249 Park Maintenance Operations Dept 20 $266 1 $25 I $25 $414 $602 $1,252 $1,197 $1,864 $1,975 $0 $500 $1,000 $1,500 $2,000 $2,500 Thousands • YTD Actual YTD Budget 6 INFORMATIONAL MEMO Page 3 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF JANUARY 31, 2019 SUMMARY OF EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2019 ANNUAL 2019 ALLOCATED; 2017 2018 2019 ACTUAL OVER/(UNDER) %CHANGE ALLOCATES %a BOOT EXPENDED 2017/2018 2018/2019 01 City Council 432,111 30,963 33,104 29,359 31,842 879 7% (11)% 8% 03 Mayor 2,595,514 202,120 183,053 187,656 209,454 7,334 8% 3% 12% 04 Administrative Services 2,111,509 131,002 109,786 106,136 101,142 (29,859) 5% (3)% (5)% 05 Finance 2,671,195 602,170 533,383 518,093 549,835 (52,335) 21% (3)% 6% 06 Attorney 710,730 3,626 373 1,354 172 (3,455) 0% 263% (87)% 07 Recreation 3,294,138 264,296 227,245 227,398 254,150 (10,146) 8% 0% 12% 08 Community Development 3,511,558 280,887 250,504 255,428 272,765 (8,122) 8% 2% 7% 09 Municipal Court 1,298,228 100,697 88,284 100,347 97,080 (3,616) 7% 14% (3)% 10 Police 19,427,613 1,974,851 1,739,865 1,809,599 1,864,245 (110,606) 10% 4% 3% 11 Fire 12,473,387 1,196,898 1,218,182 1,154,268 1,252,173 55,275 10% (5)% 8% 12 Technology& Innovation Svcs 2,043,934 154,762 84,523 155,228 139,739 (15,024) 7% 84% (10)% 13 Public Works 3,948,613 413,970 363,356 387,352 364,983 (48,987) 9% 7% (6)% 15 Park Maintenance 1,630,586 190,890 154,679 176,389 109,294 (81,596) 7% 14% (38)% 16 Street Maintenance & Operations 3,354,733 265,597 568,403 610,566 248,794 (16,803) 7% 7% (59)% Subtotal 59,503,849 5,812,729 5,554,741 5,719,174 5,495,668 (317,061) 9%0 3% (4)% 20 Dept 20 19,067,819 25,000 25,000 25,000 25,000 - 0% 0% 0% Total Expenditures 78,571,668 5,837,729 5,579,741 5,744,174 5,520,668 (317,061) 7% 3% (4)% Percent of year completed 8.33% 7 INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES YTD AS OF JANUARY 31, 2018 BUDGET ACTUAL COMPARISON OF RESULTS SUMMARY OF SALARIES AND BENEFITS 2019 ANNUAL 2019 ALLOCATED 2017 2018 2019 ACTUAL OVER/(UNDER) % CHANGE ALLOCATED BDGT % EXPEI,DED 2017/2018 2018/2019 11 Salaries 28,891,480 2,407,623 2,321,133 2,366,794 2,332,169 (75,454) 8% 2% (1)% 12 Extra Labor 762,833 56,789 40,588 36,422 51,376 (5,414) 7 % (10)% 41% 13 Overtime 1,350,099 121,004 161,383 117,494 114,773 (6,231) 9% (27)% (2)% 15 Holiday Pay 504,517 104 489 97 - (104) - (80)% - 21 FICA 2,107,153 140,474 147,348 152,199 148,154 7,680 7% 3% (3)% 22 Pension-LEOFF2 922,206 68,303 68,202 68,806 69,032 729 7% 1% 0% 23 Pension-PERS/PSERS 1,751,656 148,583 119,153 142,908 141,606 (6,977) 8% 20% (1)% 24 Industrial Insurance 861,417 69,796 50,616 51,153 108,720 38,924 13% 1% 113% 25 Medical & Dental 5,998,564 502,635 467,863 461,345 468,596 (34,040) 8% (1)% 2% 28 Uniform/Clothing 8,525 351 - 412 - (351) - - - Total Salaries and Benefits 43,158,450 3,515,663 3,376,776 3,397,630 3,434,425 (81,238) 8% 1% 1% SUMMARY OF SUPPLIES, SERVICES, AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2019 ANNUAL 2019 ALLOCATED 2017 2018 ACTUAL OVER/(UNDER) % CHANGE 2019 ALLOCATED BOLT % EXPENDED 2017/2018 2018/2019 0 Transfers 19,067,819 25,000 25,000 25,000 25,000 - 0% 0% 0% 31 Supplies 1,072,087 107,507 58,612 83,749 139,313 31,806 13% 43% 66% 34 Items Purchased for resale 22,000 - 69 - - - - - - 35 Small Tools 163,569 15,372 8,632 4,921 2,495 (12,878) 2% (43)% (49)% 41 Professional Services 6,404,856 424,907 20,621 33,295 394,962 (29,946) 6% 61% 1086% 42 Communication 434,600 37,519 16,486 33,056 22,899 (14,620) 5% 101% (31)% 43 Travel 159,630 15,150 11,701 13,830 13,137 (2,014) 8% 18% (5)% 44 Advertising 47,550 4,706 3,677 3,269 3,392 (1,314) 7% (11)% 4% 45 Rentals and Leases 2,901,035 255,492 174,592 172,758 233,397 (22,095) 8% (1)% 35% 46 Insurance 1,005,775 1,006,284 879,261 967,056 888,973 (117,311) 88% 10% (8)% 47 Public Utilities 1,999,424 156,231 506,827 534,952 54,976 (101,255) 3% 6% (90)% 48 Repairs and Maintenance 623,150 179,009 83,880 21,872 183,044 4,035 29% (74)% 737% 49 Miscellaneous 1,271,723 93,855 75,206 92,787 124,592 30,737 10% 23% 34% 51 Inter -Governmental - - 338,405 355,159 - - - 5% - 53 ExtTaxes,Oper.Assess - - 1 28 64 64 - 3432% 129% 64 Machinery & Equipment 240,000 1,033 (5) 4,812 - (1,033) - (99323)% - Total Supplies, Services, and Capital 35,413,218 2,322,066 2,202,966 2,346,545 2,086,244 (235,823) 6% 7% (11)% Total Expenditures 78,571,868 5,837,729 5,579,741 5,744,174 5,520,668 (317,061) 7% 3% (4)% Perce lot year corrpleled 8.33% 8 City of Tukwila Allan Ekberg, Mayor INFOR ATIONAL E ORANDU TO: City Council FROM: TIS Department BY: Joseph Todd Technology and Innovation Services Director CC: Mayor Ekberg DATE: 03/25/2019 SUBJECT: Technology and Innovation Services Quarterly Report ISSUE During the 2017/2018 biennial budget process, Technology and Innovation Services (TIS) committed to City Council to provide a periodic report on the status of the City's new investments in technology. DISCUSSION In 2016, Technology and Innovation Services, along with departmental stakeholders, developed a technology strategy that required new investments from the City General Fund. These investments are funding 5 key technology initiatives that are critical to the implementation of the City's technology strategy. As a refresher, here are the 5 key initiatives: 1. Transition to the cloud (transition on premises applications and infrastructure to the to the cloud) 2. Connected city and network infrastructure changes (invest in robust security measures, increased bandwidth, city and facility wide Wi-Fi, and scalable infrastructure) 3. Contract Helpdesk Support, Training, IT Service Management, and FTE Increases (hire tier 1 and 2 contract help desk support, deliver onsite and webinar based training, transition city to IT service management model, increase staff through internal transfers) 4. GIS services expansion and integrated data services (expand GIS services to cover city wide addressing, asset management, and back in integration with city wide records management systems) 5. End user computing refresh (update end user computers with new leased computing model) As part of City Council's approval of the new technology investments, TIS was asked to provide periodic report outlining the status of the 5 key initiatives in both progress and budget expenditure. 9 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT Initiatives Budqet Initiative 2017 2018' 2019 2020 2019/2020Totab Transition to the cloud $ 77,000.00 $ 77,000.00 $ 77,000.00 $77,000.00 $ 154,000.00 Connected city and network infrastructure changes $ 43,000.00 X X X X Help Desk Support, Training, |TService, Management ' $124,000.00 $I24^000.00 $ 49600.00 $49,600.00 $ 99,200.00 G|Sservices expansion and integrated data services $ 90/000.00 $ 90,000.00 $ 90/000.00 $90,000.00 $ I80,000.00 End user computing refresh $150,000.00 $150,000.00 $250,000.00 Renew $ 150,000.00 ATTACHMENTS No Attachments 10