HomeMy WebLinkAboutSpecial 2011-11-21 Item 3 - 2011-2012 Budget AmendmentsAgenda Item III
2011 -12 Budget Amendments
Memo from Peggy McCarthy: Mid Biennial Review and Modification of 2011 -12 Budget
Budget Adjustment
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Peggy McCarthy, Interim Finance Director
DATE: November 18, 2011
SUBJECT: Mid Biennial Review and Modification of the 2011 -2012 Budget
ISSUE
Adjust the biennial budget to reflect new policies and circumstances, to add appropriations to
funds at risk of exceeding budget in order to remain in compliance with state law, and to
reallocate budget authority among General Fund departments to prevent over budget situations,
consistent with past City practice.
BACKGROUND
The mid biennial budget adjustments are a refinement of the budget and are undertaken
pursuant to TMC 3.30.020 and RCW 35A.34.130. The ordinance amending the budget, if
necessary, must be passed before the end of the calendar year. The purpose and type of
adjustments proposed for the 2011 -2012 budget modification are as follows:
Revenue Backed Expenditures These expenditures have offsetting revenue sources
such as grant revenue.
Reallocation of Budget Among Departments These adjustments reallocate expenditure
budget from departments expected to be under budget to departments at risk of going
over budget.
Council Decisions Budget Additions These adjustments add budget in support of
Council decisions and as a result of circumstances necessitating additional budget.
Carryover of Unused Budget Unused budget is moved from 2011 to 2012.
Accounting Modifications These adjustments move budget from funds and accounts
no longer used to funds and accounts currently used pursuant to changes in accounting
procedures for purposes of streamlining and simplification.
New Initiatives The COPS Bicycle Team initiative is proposed for 2012 and beyond. A
full description of this initiative will be presented by Police Chief Mike Villa under a
separate memorandum.
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INFORMATIONAL MEMO
Page 2
DISCUSSION
General Fund 000
The revenue backed expenditure adjustments comprise the JAG Recovery Act grant which
funded a portion of the Police mobile command unit; the Emergency Management Program
Grant which will fund various emergency management costs in 2012, anticipated WCIA
insurance proceeds funding repair costs for a damaged signal pole and a JAG grant obtained in
partnership with the Tukwila School District to promote safety at Showalter Middle School.
The reallocation of budget among departments transfers budget from departments expected
to be under budget for the year Public Works, Mayor's and Parks Recreation to
departments at risk of going over budget City Attorney, Parks Maintenance and Department
20.
City Attorney special matters account has a $100K budget but actual costs to date of $306K
comprised of $94K for criminal prosecution, $69K for Desc vs. Tukwila DCD, $70K for the Wells
Inverse condemnation, $19K for Reed Trucking and $19K for the Whitcutt arbitration. Additional
budget is proposed to cover a portion of this overage, such that the department will remain
within budget.
The Parks Maintenance salary budget excluded two staff members who were laid off at the end
of 2010 but those jobs were reinstated in 2011, thus creating the over budget situation. The
Department 20 claims and judgment account has a budget of $270K and to date expenditures
of $405K comprised of the City's deductible portion of claims of $250K, the Fort Dent/Wells
claim of $67K, and claims attributable to personnel issues of $87K. Additional budget is
proposed to cover a portion of this overage, such that the department will remain within budget.
The carryover of unused budget moves budget authority from 2011 to 2012 for projects and
initiatives delayed or postponed until 2012. This includes the agenda manager technology
system for the Clerk's office, crime analytical software for the Police Department and
Department 20 transfers to General Government Fund 303 for removal of the flood mitigation
devices and associated trail restoration.
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include reduction of the indirect cost allocation charged to the Golf Course
Fund, the operating loan advanced to the Metropolitan Park District for $375K in 2011 and not
to exceed $725K in 2012 (this loan will be paid back beginning in 2013); $166K additional
funding of the Reserve Fund 105 in 2011 and $1.2M in 2012, and a proposed $175K funding of
a new permit system for the Community Development department. The latter initiative will be
funded through assessment of a permit technology fee after implementation of the system. An
additional $550K transfer -out to the Golf Course Fund is also proposed (see Golf Course Fund
411 below for further explanation). This 2011 transfer can be funded by a $250K budget
savings within the transfers -out account (debt service was budgeted for the SCORE bonds but
was paid for through SCORE start -up funds and not charged to the City) and by a $300K use of
ending fund balance. The additional $350K transfer -out to the Golf Course proposed for 2012 is
a budget place holder to ensure sufficient budget exists for discretionary transfers.
The new initiative would create a bicycle patrol team for the Tukwila International Boulevard
neighborhood to increase police presence in the area. Police Chief Mike Villa will provide full
details of the initiative under a separate memorandum.
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INFORMATIONAL MEMO
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Hotel /Motel Tax Fund 101
The revenue backed Rock N Roll marathon expenditure for professional services is offset by
revenue received from the marathon sponsors, the Competitor Group.
Street Fund 103
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include additional funding for the 42n Avenue residential street project.
The expenditure budget carryover of $103K to 2012 is for the design work on 42n Ave S from
Southcenter Blvd to S 160 These costs will be funded through ending fund balance.
Arterial Street Fund 104
The revenue backed expenditure adjustment is for an anticipated grant that will be used to
purchase land right of way for redesign of Andover Park West in connection with the Tukwila
Transit Center project. If the grant is obtained and the right of way purchased, an additional
$78K would be needed from the ending fund balance to fund the transaction. The adjustment
also includes $6.6M of grant revenue expected to be received in 2012 for the Southcenter
Parkway project.
The expenditure budget carryover to 2012 of $9.2 million is primarily for the Southcenter
Parkway extension project. The revenue budget carryover represents proceeds from the LID
bonds that will be issued in 2012 to reimburse the City for the Southcenter Access Project costs.
Contingency (Reserve) Fund 105
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include additional funding of the Reserve fund to comply with funding
requirements of the Reserve policy, adopted by Council in 2009.
Debt Service Funds 2
Fund 207 serviced the debt on the 1999 General Obligation bond. This bond was refunded in
2008. The budget adjustment transfers the remaining fund balance of $13,300 to Fund 211, the
fund servicing the refunded debt.
The debt service budget for Fund 215 requires an additional $6K to fully service the 2011 debt.
Therefore, additional budget is added.
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include transferring the 2003 outstanding bond balance from the Golf Course
Fund 411 to a governmental debt service fund and transferring cash and investments from the
Land Park Acquisition Fund 301 to the same governmental debt service fund.
Land Acquisition Fund 301
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include transferring cash and investments from the Land Park Acquisition
Fund 301 to a governmental debt service fund for payment of debt service on the golf course
portion of the 2003 outstanding bond issue.
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INFORMATIONAL MEMO
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The expenditure budget adjustment represents planned land acquisition in 2012 and is
consistent with the CIP proposal. This purchase will be funded through ending fund balance.
Facility Replacement Fund 302
Unused expenditure budget is carried over to 2012; funding will be accomplished through
ending fund balance.
General Government Fund 303
The expenditure budget carryover adjustment moves budget to 2012 for the removal of the
flood mitigation devices the Hesco barriers and Super Sacks and the associated trail
restoration.
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include expenditure budget added for the bond funded emergency
management measures undertaken in 2011 that were not budgeted including $199K for the
6300 building generator, $104K for the Police incident command vehicle and $273K for the new
phone system.
Water Fund 401
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include expenditure budget added to the 1995 revenue bond principal
payment account as a result of Council approval of the early redemption of the 1995 revenue
bond.
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
Sewer Fund 402
Budget Carryover Unused expenditure budget for the Interurban Avenue gravity sewer
project and other projects is moved to 2012.
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include budget added to the Fund to cover the cost of the Andover Park West
emergency sewer repair project.
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
Water/ Sewer Revenue Bonds Fund 404
The accounting modification change moves debt service accounting to the appropriate utility
funds (Funds 401, 402 and 412) from the Water Sewer Revenue Bond Fund 404 to simplify
and streamline the accounting process.
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INFORMATIONAL MEMO
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Golf Fund 411
Council decisions or proposals before the Council resulting in added budget or creating new
budget line items include expenditure budget added in 2011 to support the $114K golf cart
purchase. Revenue budget is added for 2011 through a transfer in from the General Fund to
alleviate the current cash deficit of $279K and cover the December debt service payment of
$262K. The existing budgeted transfer in from the General Fund of $225K is not sufficient to
cover the General Fund indirect cost allocation charge of $221K and the annual debt service
costs of $333K. The cash deficit is a result of underfunding in 2010 as well as 2011. The
additional transfer -in proposed for 2012 is $350K and is a place holder for discretionary
transfers in case of funding need. The 2012 expenditure budget reduction reduces the indirect
cost allocation charge to the Golf Course Fund by the General Fund.
Surface Water Fund 412
Budget Carryover Unused expenditure budget is moved to 2012; funding will be
accomplished through ending fund balance.
RECOMMENDATION
The Council is being asked to consider the 2011 -2012 Mid Biennium Budget Amendments at
the November 28 Committee of the Whole meeting and to move the item forward to the
December 5 th Regular meeting for approval.
ATTACHMENTS
2011 -2012 Mid Biennium Budget Amendment
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CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Biennial Budget
Increase (Decrease)
2011 2012 Revenues Expenditures
104,417
82,210
50,000
76,437 (a)
230,854 82,210 313,064
104,417
76,437 (a)
82,210
50,000
230,854 82,210
160,000
60,000
100,000
(120,000)
(90,000)
(110,000)
(21,000)
21,000
Revenue Backed Expenditures
15,000
Revenue:
2,000,000
JAG Recovery Act Mobile Command Unit
000.339.216.80.40
EMPG grant
000.333.970.42.00
Signal pole damage to be reimbursed by insurance
(213,000)
(WC IA)
000.344.100.00.00
JAG grant with Tukwila School distrist
Total Revenue
Expenditures
JAG Recovery Act Mobile Command Unit
000.10.594.216.64.00
previously not budgeted
JAG grant with Tukwila School distrist
000.10.xxx.xxx.xx
Emergency Management CERT Trainer other
000.11.525.600.xx.xx
Repair costs Signal pole
000.16.594.440.64.00
Total Expenditures
Reallocation of Budget Among Departments
Expenditures:
City Attorney
Special Matters
000.06.515.200.41.03
Parks Maintenance:
Salaries
000.15.576.800.11.00
Dept20
Claims and judgements
000.20.514.230.49.03
Public Works
Unallocated budget reduction (dept underbudget)
000.13.532.100.00.05
Mayors
Unallocated budget reduction (dept underbudget)
000.03.513.100.00.05
Parks Recreation
Unallocated budget reduction (dept underbudget)
000.07.574.200.00.05
Total Expenditures
Carryover of Unused Budget
Expenditures:
City Clerk Agenda Manager technology system
000.03.514.300.64.00
Police Crime Analytical Software
000.10.594.100.64.00
Dept 20 Transfers -out (Fund 303, Gen Govt)
000.20.597.000.00.00
Est Ending Unreserved Fund Balance
000.20.291.840.00.00
Total Expenditures
Council Decisions Budget Additions
Revenue
Indirect cost allocation transfer -in
000.397.000.00.00
Total Revenue
Expenditures:
Dept 20 Transfers -out (Fund 105, Reserve)
000.20.597.000.00.00
Dept 20 Transfers -oUt (Fund 103, Residential Street)
000.20.597.000.00.00
Dept 20 Transfers -oUt (Fund 411, Golf Course Fund)
000.20.597.000.00.00
Dept 20 TransferS -oUt (Fund 212 and 213 SCORE debt
service, not chgd by SCORE)
000.20.597.000.00.00
Dept 20 Transfers -oUt (Fund 215, debt service)
000.20.597.000.00.00
Dept 20 Loan to Park District
000.20.599.000.xx.xx
DCD Proposed Permit System
000.08.xxx.xxx.xx.xx
Est Ending Unreserved Fund Balance
000.20.291.840.00.00
Total Expenditures
Biennial Budget
Increase (Decrease)
2011 2012 Revenues Expenditures
104,417
82,210
50,000
76,437 (a)
230,854 82,210 313,064
104,417
76,437 (a)
82,210
50,000
230,854 82,210
160,000
60,000
100,000
(120,000)
(90,000)
(110,000)
(21,000)
21,000
(15,000)
15,000
(2,000,000)
2,000,000
2,036,000
(2,036,000)
(213,000) (a) (213,000)
(213,000)
166,260 1,200,000 (a)
220,000 (a)
550,000 350,000
313,064
(250,000)
6,000
375,000
725,000
175,000
(847,260)
(2,883,000)
(213,000)
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(213,000)
CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Biennial Budget
Increase (Decrease)
2011
2012
Revenues Expenditures
New initiatives COP Bicycle Team
Expenditures
Police Department.
Unallocated budget reduction (dept underbudget)
000.10.xxx.xxx.xx.xx
(220,000)
Salaries and benefits for 3 officers
000.10.xxx.xxx.xx.xx
345,000
Care and custody of prisoners (SCORE savings)
000.10.523.600.51.00
(125,000)
Est Ending Unreserved Fund Balance (2011 carry
over from Police dept)
000.20.291.840.00.00
220,000
(220,000)
Fund Total
Revenue Backed Expenditures
Revenue
Other Revenue Competitor Group
101.369.900.00.00
38,600
Total Revenue
38,600
38,600
Expenditures
Professional services Rock N Roll Marathon
101.00.557.302.41.00
38,600
Total Expenditures
38,600
38,600
FUND TOTAL
uw»«
Council Decisions Budget Additions
Revenue
Transfer in
103.397.000.00.00
220,000
(a)
Total Revenue
220,000
220,000
Expenditures:
Professional Services /construction
103.98.595.xx.xx.xx
220,000
(a)
Total Expenditures
220,000
220,000
FUND TOTAL
Carryover of Unused Budget
Expenditures
Professional Services
103.98.595.800.41.00
(130,000)
130,000
Est Ending Unreserved Fund Balance
103.01.291.840.00.00
130,000
(130,000)
Total Expenditures
FUND TOTAL
C. 7. i emu....
Revenue Backed Expenditures
Revenue
Grant Revenue various
104.33x.xxx.xx.xx
6,600,000
(a)
Grant Revenue Tukwila Urban Center
104.333.203.XX.XX
416,000
Total Revenue
7,016,000
7,016,000
Expenditures
Land Right of way Transit Center
104.98.595.800.61.00
494,000
Est Ending Unreserved Fund Balance
104.01.291.840.00.00
6,522,000
(a)
Total Expenditures
7,016,000
7,016,000
FUND TOTAL
Carryover of Unused Budget
Revenue:
Debt proceeds
104.391.100.00.00
(9,230,000)
9,230,000
Total Revenue
(9,230,000)
9,230,000
Expenditures
Professional Services Construction
Southcenter Parkway
104.98.595.800.xx.xx
(9,230,000)
9,230,000
Total Expenditures
(9,230,000)
9,230,000
Ending fund balance
Fund total
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CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Biennial Budget
Increase (Decrease)
_"w
2011
20 12
Revenues Expenditures
a
Council Decisions Budget Additions
Revenue:
Transfer in General Fund
105.397.000.00.00
166,260
1,200,000
(a)
Total Revenue
166,260
1,200,000
1,366,260
Expenditure
Est Ending Unreserved Fund Balance
105.00.291.840.00.00
166,260
1,200,000
Total Expenditures
166,260
1,200,000
1,366,260
Fund total
Accounting Modifications:
Expenditure:
Transfer out
207.00.597.000.00.00
13,300
Est Ending Unreserved Fund Balance
207.00.291.840.00.00
(13,300)
Total Expenditures
Fund 207 total
Revenue:
Transfer in Fund 207
211.397.000.00.00
13,300
Total Revenue
13,300
13,300
Expenditure:
Est Ending Unreserved Fund Balance
211.00.291.840.00.00
13,300
Total Expenditures
13,300
13,300
Fund 211 total
Council Decisions Budget Additions
Revenue:
Transfer in General Fund
215.397.000.00.00
6,000
Total Revenue
6,000
6,000
Expenditure:
Principal payment
215.00.592.950.83.00
6,000
Total Expenditures
6,000
6,000
Fund total
Revenue:
Transfer in Land Park Acquisitions
209.397.301.00.00
3,302,960
(a)
Total Revenue
3,302,960
3,302,960
Expenditure:
Debt service payment
209.00.xxx.xxx.xx.xx
333,751
(a)
Est Ending Unreserved Fund Balance
3,302,960
(333,751)
(a)
Total Expenditures
3,302,960
3,302,960
Fund total
Council Decisions Budget Additions
Expenditure:
Transfer out to debt service fund
301.00.597.209.00.00
3,302,960
(a)
Land
301.98.594.760.61.00
1,000,000
Est Ending Unreserved Fund Balance
301.00.291.840.00.00
(3,302,960)
(1,000,000)
(a)
Total Expenditures
Fund total
Carryover of Unused Budget
Expenditure:
Construction project
302.98.594.190.xx.xx
(87,000)
87,000
Est Ending Unreserved Fund Balance
302.00.291.840.00.00
87,000
(87,000)
Total Expenditures
Fund total
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CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Council Decisions Budget Additions
Construction Projects 303.98.594.190.65.00 600,000
Est Ending Unreserved Fund Balance 303.00.291.840.00.00 (600,000)
Total Expenditures (2,000,000) 2,000,000
Fund total
Biennial Budget
Increase (Decrease)
Council Decisions Budget Additions
Expenditure:
Investment interest
404.361.110.00.00
1995 Revenue bond principal ($1,370,000 payoff
(60)
1995 Revenue bond principal Water /Sewer
less December payment)
401.01.597.720.00.00 1,080,000
(291,748)
1995 Revenue bond principal
401.01.597.720.00.00
(310,000)
1995 Revenue bond interest
401.01.597.820.00.00
(80,494)
Est Ending Working Capital
401.02.293.800.00.00 (1,080,000)
390,494
Accounting Modification
Council Decisions Budget Additions
(131,287)
2006 Revenue bond principal
401.01.597.720.01.00
(33,800)
2006 Revenue bond interest
401.01.597.820.01.00
(29,627)
2006 Revenue bond principal
401.02.582.347.72.00
33,800
2006 Revenue bond interest
401.02.592.347.83.00
29,627
Total Expenditures
404.00.582.380.72.00
Fund total
2006 Revenue bond principal Water /Sewer
(80,600)
Nul
Investment interest
404.361.110.00.00
Carryover of Unused Budget
(60)
1995 Revenue bond principal Water /Sewer
404.397.720.00.00
Expenditure:
(291,748)
2006 Revenue bond principal Water /Sewer
404.397.720.01.00
Construction Projects
402.98.594.353.65.00
(120,000)
120,000
Est Ending Working Capital
402.02.293.800.00.00
120,000
(120,000)
Council Decisions Budget Additions
(131,287)
Total Revenue
Professional Services
402.98.594.353.xx.xx
416,000
Est Ending Working Capital
402.02.293.800.00.00
(416,000)
404.00.293.800.00.00
Accounting Modification
(77,341)
1995 Revenue bond principal Water /Sewer
404.00.582.380.72.00
2006 Revenue bond principal
402.01.597.720.01.00
2006 Revenue bond principal Water /Sewer
(80,600)
2006 Revenue bond interest
402.01.597.820.01.00
1995 Revenue bond interest Water /Sewer
(70,649)
2006 Revenue bond principal
402.02.582.357.72.00
2006 Revenue bond interest Water /Sewer
80,600
2006 Revenue bond interest
402.02.592.357.83.00
General Government transfer to General Fund
70,649
Total Expenditures
(6,411)
Total Expenditures
Fund total
(671,185)
Fund total
4, t "404 11
Accounting Modification
Revenue:
Investment interest
404.361.110.00.00
(60)
(60)
1995 Revenue bond principal Water /Sewer
404.397.720.00.00
(283,250)
(291,748)
2006 Revenue bond principal Water /Sewer
404.397.720.01.00
(123,600)
(127,308)
1995 Revenue bond interest Water /Sewer
404.397.820.00.00
(117,264)
(120,782)
2006 Revenue bond interest Water /Sewer
404.397.820.01.00
(127,463)
(131,287)
Total Revenue
(651,637)
(671,185)
Expenditure:
Est Ending Working Capital
404.00.293.800.00.00
(53,435)
(77,341)
1995 Revenue bond principal Water /Sewer
404.00.582.380.72.00
(290,000)
(310,000)
2006 Revenue bond principal Water /Sewer
404.00.582.380.72.01
(105,600)
(105,600)
1995 Revenue bond interest Water /Sewer
404.00.592.380.83.00
(92,068)
(71,937)
2006 Revenue bond interest Water /Sewer
404.00.592.380.83.01
(104,310)
(99,896)
General Government transfer to General Fund
404.00.597.190.00.00
(6,224)
(6,411)
Total Expenditures
(651,637)
(671,185)
Fund total
(1,322,822)
(1,322,822)
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CITY OF TUKWILA
2011 -2012 MID BIENNIUM BUDGET AMENDMENT
DETAIL
Biennial Budget
Increase (Decrease)
412.98.594.382.41.00 (225,000)
412.98.594.382.61.00 (40,000)
412.98.594.382.65.00 (333,000)
412.02.293.800.00.00 598,000
225,000
40,000
333,000
(598,000)
INCREASE IN BIENNIAL BUDGET $11,640,362 11,640,362
(a) Represents an adjustment added since review of the budget amendments by the Finance Safety Committee on November 8th.
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201
201 Revenues Expenditures
Council Decisions Budget Additions
Revenue:
Transfer in General Fund
411.397.190.00.00
550,000
350,000
Total Revenue
550,000
350,000 900,000
Expenditure:
Indirect cost allocation
411.00.597.000.00.00
(213,000) (a)
Small Tools Minor Equipment
411.00.576.680.35.00
114,210
Est Ending Working Capital
411.00.293.800.00.00
435,790
563,000
Total Expenditures
550,000
350,000 900,000
Fund total
412.98.594.382.41.00 (225,000)
412.98.594.382.61.00 (40,000)
412.98.594.382.65.00 (333,000)
412.02.293.800.00.00 598,000
225,000
40,000
333,000
(598,000)
INCREASE IN BIENNIAL BUDGET $11,640,362 11,640,362
(a) Represents an adjustment added since review of the budget amendments by the Finance Safety Committee on November 8th.
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