HomeMy WebLinkAboutFIN 2019-11-12 Item 2B - Update - 2019 3rd Quarter General FundCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
CC: Mayor Ekberg
FROM: Vicky Carlsen, Finance Director
BY: Jeff Friend, Fiscal Manager
DATE: November 5, 2019
SUBJECT: 2019 3rd Quarter General Fund Update
The purpose of the 2019 311 Quarter General Fund Update is to provide financial results and highlight
significant items or trends for the General Fund. The update is based on financial data available as of
November 3, 2019 for the reporting period ending September 30, 2019. As September 2019 sales tax data
is unknown as of the current date, a conservative estimate has been made.
Allocated budgets are calculated based on the patterns of revenue received and expenditures made in the
previous year with the current year budget allocated using the same patterns. Additional details can be
found in the attached financial reports.
General Fund
The General Fund is the City's largest fund and accounts for most City resources and services including
governance, public safety, and administration.
Revenues
Based on data available November 51h, 2019 (with sales tax for September estimated), Total Revenue
through September is $46.1 million; $175.7 thousand more than the allocated budget of $46.0 million.
0.
INFORMATIONAL MEMO
Page 2
GENERAL FUND REVENUE
CITY OF TUKW ILA
YTDAS OFSEPTEMBER 30, 2019
BUDGET
ACTUAL
% CHANGE
SUMMARY BY REVENUE TYPE
2019
2019
2019 ANNUAL
ANNUAL
ALLOCATED
2017
2018
2019
BDGT
%REC'D 2017/2018
2018/2019
PROPERTYTAX
15,923,442
8,923,566
8,136,439
8,545,729
9,012,233
88,667
57%
5%
5%
SALES TAX'
20,444,000
15,017,906
13,591,220
15,053,433
14,652,796
(365,111)
72%
11%
(3)%
ADMISSIONS TAX
850,000
615,770
565,003
776,570
733,392
117,622
86%
37%
(6)%
UTILITYTAX
4,338,200
3,324,225
3,218,288
3,051,981
2,844,000
(480,226)
66%
(5)%
(7)%
INTERFUND UTILITY TAX
2,373,000
1,985,471
1,877,158
1,947,248
1,980,909
(4,562)
83%
4%
2%
GAMBLING & EXCISE TAX
4,426,000
3,256,944
2,973,421
2,872,936
3,005,411
(251,532)
68%
(3)%
5%
TOTAL GENERAL REVENUE
48,354,642
33,123,883
30,361,529
32,247,897
32,228,741
(895,142)
67%
6%
(0)%
BUSINESS LICENSES
3,547,400
2,528,749
2,426,417
2,720,742
3,106,257
577,508
88%
12%
14%
RENTAL HOUSING
45,000
34,089
41,220
49,160
36,175
2,086
80%
19%
(26)%
BUILDING PERMITS
2,122,494
1,464,131
1,179,158
1,366,522
1,645,927
181,796
78%
16%
20%
TOTAL LICENSES AND PERMITS
5,714,894
4,026,969
3,646,795
4,136,424
4,788,359
761,390
84%
13%
16%
SALES TAX MITIGATION
840,000
639,634
820,163
781,130
655,127
15,493
78%
(5)%
(16)%
FRANCHISE FEE
2,399,500
1,863,942
1,621,568
1,771,146
1,851,253
(12,689)
77%
9%
5%
GRANT REVENUE
907,940
511,178
566,843
357,306
523,611
12,433
58%
(37)%
47%
STATE ENTITLEMENTS
405,250
307,764
301,153
329,178
365,432
57,668
90%
9%
11%
INTERGOVERNMENTAL
576,754
473,274
479,583
533,099
550,586
77,312
95%
11%
3%
TOTAL INTERGOVERNMENTAL REVENUE
5,129,444
3,795,792
3,789,310
3,771,859
3,946,009
150,217
77%
(0)%
5%
GENERAL GOVERNMENT
57,532
44,796
38,984
22,878
43,646
(1,150)
76%
(41)%
91%
SECURITY
660,500
583,155
433,574
254,147
540,960
(42,195)
82%
(41)%
113%
TRANSPORTATION
79,000
221,471
21,527
840
221,241
(229)
280%
(96)%
26229%
PLAN CHECK AND REVIEW FEES
1,148,675
862,561
603,989
917,711
1,150,752
288,191
100%
52%
25%
CULTURE AND RECFEES
601,000
474,876
421,944
417,873
388,267
(86,609)
65%
(1)%
(7)%
TOTAL CHARGES FOR SERVICES
2,546,707
2,186,859
1,520,018
1,613,450
2,344,867
158,008
92%
6%
45%
FINES & PENALTIES
329,218
242,057
221,116
208,221
153,810
(88,247)
47%
(6)%
(26)%
MISC
1,160,542
675,706
794,606
1,735,525
765,208
89,502
66%
118%
(56)%
INDIRECT COST ALLOCATION
2,545,645
1,909,234
1,709,294
1,744,232
1,909,233
(1)
75%
2%
9%
TOTAL OTHER INCOME
4,035,405
2,826,996
2,725,015
3,687,979
2,828,251
1,255
70%
35%
(23)%
TOTAL OPERATING REVENUE
65,781,092
45,960,499
42,042,667
45,457,607
46,136,226
175,727
70%
8%
1%
TRANSFERS IN
200,000
-
-
-
-
-
0%
0%
0%
TOTAL REVENUE
65,981,092
45,960,499
42,042,667
45,457,607
46,136,226
175,727
70%
0
0
'Estimated
Percent of year 75%
A
INFORMATIONAL MEMO
Page 3
Expenditures
Unbudgeted, Unplanned Events
Code Violations
During the first quarter, it was discovered that a local business's production plant violated numerous building
codes. As a result, the City expects to receive a total of $79.71K for associated costs related to inspections,
reviews, and consulting.
Andover Park East Propane Leak
In June, faulty piping in a large propane tank on Andover Park East was discovered which required the safe
burn off of vapors remaining after the removal of the liquid gas. On August 16, the party responsible for the
propane system was billed $21,707 to reimburse the city for costs associated with the event.
Department Labor Benefits Materials
Total
Police
$ 1,532
$ 262
$ 1,666
$ 3,461
Fire
8,409
2,397
707
11,512
Street Maintenance
4,161
2,037
-
6,198
Water
436
100
536
Total
$ 14,538
$ 4,796
$ 2,373
$ 21,707
Snow Events
During the month of February, the City experienced two winter snowstorms. Unbudgeted costs related to
the snow events are as follows:
Department
Overtime and
Benefits
Materials
Combined
Police
$ 143
$ 143
Fire
30,313
285
30,598
Public Works
286
286
Park Maintenance
452
452
Street Maintenance
19,463
79,637
99,100
Total
I $ 49,7761
$ 80,803
$ 130,579
East Marginal Way Power Pole Accident
On April 51h, there was a large accident where numerous power poles fell over on East Marginal Way.
Current estimates for this incident are as follows:
Department
Overtime and
Benefits
Repairs and
Maintenance
Combined
Street Maintenance and Operations
$ 30,281
$ 280,416
$ 310,697
A claim totaling $310.7K has been initiated with the Washington Cities Insurance Authority (WCIA) for
reimbursement of the current estimated expenditures. A check was received in June for $178.9K (75%)
with the balance to be received later.
rA
INFORMATIONAL MEMO
Page 4
Year -to -Date Departmental Expenditures
GENERAL FUND
CITY OF TUKW ILA
GENERAL FUND EXPENDITURES
YTD AS OF SEPTEMBER 30, 2019
BUDGET
ACTUAL
COMPARISON OF RESULTS
ACTUAL
SUMMARY OF EXPENDITURES BY
DEPARTMENT
OVER/(UNDER)
% CHANGE
2019
ALLOCATED
%
2019 ANNUAL
ALLOCATED
2017
2018
2019
BDGT
EXPENDED 2017/2018 2018/2019
01 City Council
432,111
308,814
249,547
271,040
272,796
(36,018)
63%
9%
1%
03 Mayor
2,595,514
1,794,969
1,701,538
1,913,455
1,783,577
(11,392)
69%
12%
(7)%
04 Administrative Services
2,111,509
1,588,172
1,386,088
1,454,382
1,408,765
(179,408)
67%
5%
(3)%
05 Finance
2,671,195
2,104,103
1,856,953
2,450,011
1,844,087
(260,016)
69%
32%
(25)%
06 Attorney
710,730
514,822
379,561
665,546
475,831
(38,991)
67%
75%
(29)%
07 Recreation
3,294,138
2,472,884
2,347,060
2,336,622
2,472,207
(676)
75%
(0)%
6%
08 Community Development
3,511,558
2,590,677
2,415,559
2,496,334
2,641,432
50,755
75%
3%
6%
09 Municipal Court
1,298,228
969,389
905,443
964,604
958,382
(11,007)
74%
7%
(1)%
10 Police
19,427,613
14,444,807
13,089,242
13,255,256
14,003,004
(441,803)
72%
1%
6%
11 Fire
12,473,387
9,125,383
8,790,067
9,261,114
9,514,633
389,250
76%
5%
3%
12 Technology& Innovation Svcs
2,043,934
1,498,821
1,256,059
1,519,133
1,440,304
(58,517)
70%
21%
(5)%
13 Public Works
3,948,613
2,933,664
2,646,766
2,639,959
2,791,322
(142,342)
71 %
(0)%
6%
15 Park Maintenance
1,630,586
1,275,735
1,075,979
1,134,680
1,273,950
(1,784)
78%
5%
12%
16 Street Maintenance&Operations
3,354,733
2,738,615
2,421,350
2,505,786
3,167,826
429,211
94%
3%
26%
59,503,849
44,360,855
40,521,212
42,867,921
44,048,117
(312,738)
74%
6%
3%
Subtotal
Transfers Outto:
Residential Street
1,300,000
1,300,000
-
-
1,300,000
100%
-
-
Arterial Street
450,000
-
-
-
Contingency Fund
58,568
-
-
-
-
-
Debt Service
4,033,861
2,746,490
2,014,503
3,486,589
2,746,490
68%
73%
(21)%
Land Acq., Rec and Park Dev
19,600
19,600
122,190
-
19,600
100%
-
-
General Government Improvements
200,000
150,000
150,000
150,000
150,000
75%
0%
0%
Golf Course
300,000
225,000
225,000
225,000
225,000
75%
0%
0%
1 6,362,029
4,441,090
1 2,511,693
3,861,589
4,441,090
70%
54%
15%
Total Dept 20 Transfers Out
Total Expenditures
1 65,865,878
48,801,945
143,032,905
46,729,510
48,489,206
1 (312,738)
74%
9%
4%
Percent of year completed 75%
Major variances were:
Community Development is $50.81K over allocated budget through September. Professional
Services expenditures ($171.4K over allocated budget) have been greater than anticipated in
the budget. The budget had assumed development activity would slow in 2019; however, this
has not been the case. Therefore, services directly related to development activity, such as
peer review, that are typically outsourced, are now over budget. It should be noted that a large
portion of Professional Services are revenue -backed. Repairs and Maintenance expenditures
have not been significantly incurred ($39.5K under allocated budget) while Miscellaneous
Expenditures ($32.9K under allocated budget) have also not been incurred at the level
anticipated.
Fire is $389.31K over budget. Salaries and benefits were $499.51K over budget resulting from
three retirement payouts in June ($53K), unbudgeted pipeline positions ($214.6K) as well as
overtime costs and related benefits that were over budget through September ($231.9K).
Services and supplies were under budget by about $110.7K partially offsetting the amount the
department was over budget on salaries and benefits. As of the May 28th Finance Committee
meeting, the Finance Committee began an ongoing analysis of options to address the Fire
operating budget issues. The topic was forwarded to the City Council of the Whole meeting on
September 91h
Rl
INFORMATIONAL MEMO
Page 5
Street Maintenance and Operations was $429K over budget through September primarily due
to overtime and supplies costs related to the snow events and the East Marginal Way power
pole event. Purchases of supplies to replenish street maintenance inventory also contributed
to the variance. This includes salt brine and sand ($37.2K), aluminum poles and luminaries
($25.4K), Malfunction Monitoring Units ($16K), pedestrian push buttons ($11.7K) and other
miscellaneous items ($21.5K).
Department
Overtime and
Benefits
Materials
Total
Snow
$ 19,463
$ 79,637
$ 99,100
Power Poles*
13,297
230,6S7
243,9S4
Total
$ 32,760
$ 310,294
$ 343,054
*Costs to be reimbursed by WCIA
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