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Home My WebLink AboutCOW 2020-05-11 COMPLETE AGENDA PACKETTukwila City Council Agenda • ❖ COMMITTEE OF THE WHOLE ❖ Allan Ekberg, Mayor Counci/members: ❖ Verna Seal ❖ Kathy Hougardy David Cline, City Administrator ❖ Kate Kruller ❖ Thomas McLeod De'Sean Quinn, Council President ❖ Zak Idan ❖ Cynthia Delostrinos Johnson THE MEETING WILL NOT BE CONDUCTED AT TUKWILA CITY HALL, BASED ON THE GOVERNOR'S PROCLAMATION 20-28 ADOPTED MARCH 24, 2020 WHICH SAYS IN PART: ANY PUBLIC AGENCY, SUBJECT TO RCW 42.30, IS PROHIBITED FROM CONDUCTING ANY MEETING, SUBJECT TO RCW 42.30 UNLESS (A) THE MEETING IS NOT CONDUCTED IN -PERSON AND INSTEAD PROVIDES AN OPTION(S) FOR THE PUBLIC TO ATTEND THE PROCEEDINGS THROUGH, AT MINIMUM, TELEPHONIC ACCESS, ..." THE PHONE NUMBER FORTHE PUBLIC TO LISTEN TO THE MEETING IS: 1-253-292-9750, ACCESS CODE: 670077847#. For Technical Support during the meeting call. 1-206-431-2179. Monday, May 11, 2020; 7:00 PM Tukwila City Hall Council Chambers 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE 2. PUBLIC Those wishing to provide public comments will have the opportunity to deliver COMMENTS public comments via email. All written comments received by email to citycouncil(-atukwilawa.Qov prior to 5:00 PM on the date of the meeting will be read aloud during the meeting by City staff within the normal five-minute time limit. 3. SPECIAL ISSUES a. A statement denouncing COVID-19 related discrimination. Pg.1 b. Weekly COVID-19 report. Pg.5 c. Financial impacts from the COVID-19 emergency: Pg.11 (1) Discussion on a resolution authorizing the Mayor, Pg.75 City Administrator, or designee to implement various cost - saving measures to address revenue shortfalls due to the COVID-19 pandemic. (2) Discussion on a resolution providing for a temporary Pg.79 pay reduction for non -represented employees to assist with addressing the budget shortfall associated with the coronavirus pandemic, effective June 1, 2020. 4. REPORTS a. Mayor b. City Council c. Staff d. Council Analyst 5. MISCELLANEOUS 6. ADJOURN TO SPECIAL MEETING (continued...) COMMITTEE OF THE WHOLE / SPECIAL MEETING May 11, 2020 Page 2 ❖ SPECIAL MEETING ❖ ❖ Ord #2629 ❖ Res #1987 1. CALL TO ORDER / ROLL CALL 2. EXECUTIVE SESSION Collective Bargaining — Pursuant to RCW 42.30.140(4)(a) and (4)(b) (60 minutes) NO action will follow in the open meeting. 3.ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Remote Tukwila Council meetings are audio taped (available at www.tukwilawa.pov) COUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Major's review Council review 05/11/20 LH ITEM INFORMATION ITEM NO. 3.A. STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 5/11/20 AGENDA ITEM TITLE City Council Statement Denouncing COVID-19 related Discrimination CATEGORY ❑ Discussion Mtg Date ❑ Motion Aft g Date ❑ Resolution Alt g Date ❑ Ordinance Aft Date ❑ Bid Award g Date Alt ❑ Public Hearing g Date Alt ❑ Other Mtg Date SPONSOR ®Council ❑Mayor ❑HR ❑DCD ❑Finance ❑Fire ❑TS ❑P&R ❑Police ❑Ply ❑Court SPONSOR'S At the April 27, 2020 Committee of the Whole meeting, Councilmember Delostrinos SUMMARY Johnson requested and obtained consensus to develop a City Council statement denouncing COVID-19 related discrimination. A draft statement is included in the memo for Council consideration. Once approved the statement can be shared on various city media. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 5/11/20 MTG. DATE ATTACHMENTS 5/11/20 Informational Memo 2 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Laurel Humphrey, Council Analyst DATE: May 5, 2020 SUBJECT: Statement Denouncing COVID-19 Related Discrimination ISSUE At the April 27, 2020 Committee of the Whole meeting, Councilmember Delostrinos Johnson requested and obtained consensus to develop a City Council statement denouncing COVID-19 related discrimination. DRAFT STATEMENT The Tukwila City Council is troubled by reports of anti -Asian rhetoric and bias emerging since the outbreak of COVID-19. As outlined in Resolution 1970, we are committed to leading a diverse, tolerant and welcoming community and we do not tolerate discrimination of any kind. We denounce COVID-19 related misnaming, blaming, or harassment based upon race, immigration status, ethnicity, physical ability, socioeconomic status or religion. We urge all community members to help stop the spread of misinformation and stay current through reputable sources such as the Centers for Disease Control and Prevention, the WA State Department of Health, and Public Health - Seattle & King County. We ask community members who observe or experience hate crimes to call 911, and to report incidents of discrimination to the Washington State Human Rights Commission. We are united in our resolve that everyone in our community is deserving of respect and safety as our community works through this pandemic together. RECOMMENDATION Staff is seeking Council consensus on the statement, which will then be published on the City's website, social media, and Hazelnut. 3 11 COUNCIL AGENDA SYNOPSIS ----------------------------------Initials Meeting Date P rep ared b_y Mayor's review Council review 5/11/20 RB ITEM INFORMATION ITEMIVO. 3.B. STAFF SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA DATE: 5/11/20 AGENDA ITEM TITLE A weekly update on the City's planning and response to COVID-19 (Coronavirus) CATEGORY ® Discussion g Date 05/11/20 Aft ❑ Motion Me Date ❑ Resolution g Date Aft ❑ Ordinance Mtg Date ❑ Bid Award Mt Date ❑ Public Hearing g Date Aft ❑ Other Mtg Date SPONSOR ❑ Council ® Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ TS ❑ P&R ❑ Police ❑ Ply SPONSORS The City is actively engaged in regional efforts to address the coronavirus (COVID-19). SUMMARY Staff are providing the Council with updated information regarding the City's response to COVID-19. REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Com ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. N/A COMMITTEE N/A COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 05/11/20 MTG. DATE ATTACHMENTS 05/11/20 Coronavirus Report 9 Coronavirus Response Update May 11, 2020 Essential Services and City Operations There have been no changes to essential services The City has begun developing a reopening plan corresponding with the State's "Safe Start" phased approach to reopening the state. It should be noted that only in Phase 3 do they recommend re -opening customer -facing government services, and even at that time telework is still strongly encouraged for non -customer facing positions. Financial Stabil City staff have been working with the Finance Committee since mid -April to review the financial impacts to the City resulting from the pandemic. At the May 4 Council meeting there was significant discussion on potential tools available to close the gap between revenues and expenditures this year. Both the Finance Committee and full Council will discuss these issues at length on May 11 and again on May 18, with possible action. Detailed information is provided in the committee and council packets. Police Staffing and Calls for Service There have been no changes to Police staffing since the last report. Calls for police service were as follows, with the prior year's month included for reference: April 2019: 2659 April 2020: 1978 There has been no increase in domestic violence reports and no bias crimes reported against people of Asian descent associated with the coronavirus. Fire Staffine and Calls for Service There have been no changes to Fire staffing since the last report. Staff is still analyzing the calls for service data to ensure accurate data is shared with the council. Human Services Human services received 424 requests for assistance in April of this year, compared to 274 last year. Of the requests this year, 245 were for either rental assistance (148) or utility assistance (97). Human Services staff has begun distributing the HB 1406 funds this month. Staff expects to spend the Council - authorized amount of HB 1406 funds collected up through February of this year. Staff will return to Council on May 18 with a more thorough update on the disbursement of HB 1406 funds and human services update. 7 Business Recovery As previously announced, the Governor extended his stay home order through the month of May. The Governor also announced the phases on how reopening the economy will work, which will occur in four phases. The State is currently developing guidelines for specific industry groups. Phase 1 of the reopening began on Tuesday, May 5 and allows some auto sales activities and curb side retail sales. Westfield Southcenter is currently work on logistics for curb side sales at the mall. On Monday the City launched SavingLocalKC.com, in partnership with nine Chambers of Commerce and the City of Kent. SavingLocalKC.com is funded by the City's lodging tax fund and its mission is to help consumer facing businesses throughout King County offer deals and discounts that could be purchased now, for use once the Stay Home order limits are eased. As part of the SavingLocalKC.com campaign, the City has launched social media accounts specifically for the campaign and also have launched social media accounts for the City. Multiple emails have been sent to Tukwila businesses inviting them to participate. On May 71", Parks and Recreation staff started calling businesses to survey their status due to the pandemic. We anticipate reporting on results by the end of May. A full business recovery update memo was included in the packet for the Planning and Economic Development Committee meeting of May 5, 2020. Meeting our Communitv's Basic Needs Food Security City staff are in communication with a variety of partners that serve our community. The Tukwila Pantry continues to serve several hundreds of families at each distribution event. Staff estimates approximately 1,000 households were served at the Tuesday and Thursday food distribution events this past week. In addition, some households that were previously not able to receive SNAP benefits are now eligible under new temporary rules developed as a result of the pandemic. The City has been approved for a FEMA grant to reimburse expenses associated with providing food to Tukwila residents. Staff is currently working through the details and contracts but expects to use the funds to support the Pantry, senior meal distribution and potentially for summer meal programs for kids. Additional updates on this will be forthcoming once more information is available. Seniors City staff again supported our senior community through direct food distribution to homebound residents. Staff calls residents on Monday and Tuesday, to set up a Wednesday meal delivery. Staff called 119 senior households, which represents 138 seniors. 69 households requested and received meals this past week. Students Technology and Innovation Services (TIS) staff report that the entire hotspot inventory has been exhausted. We are currently work with AT&T on a resupply of another 300 devices. Staff is waiting to hear from the school district as to what term of the contract with AT&T they would prefer. Public Safety Plan Construction Projects There have been no changes to the Public Safety Plan projects since the last report. Compliance with the Governor's Order There have been no changes to compliance issues since the last report. 9 10 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Al gor's review Council review 05/11/20 Vick 05/18/20 Vicky ITEM INFORMATION ITEM NO. 3.C. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 05/ 11/ 20 AGENDA ITEM TITLE Financial Impacts from COVID-19: (1) Resolution Affirming Estimated Revenue Gap due to COVID-19 and Tools to Close the Revenue Gap; (2) Resolution for Non - Represented staff compensation CATEGORY ® Discussion Mtg Date 5/11/20 ❑ Motion Mtg Date ® Resolution Mtg Date 5/18/20 ❑ Ordinance Mtg Date ❑ Bid Amard Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ®Finance ❑Fire ❑T,S' ❑P&R ❑Police ❑PiV ❑Court SPONSOR'S (1) Approve resolution affirming estimated revenue gap of $12 million in 2020 and $6 SUMMARY million in 2021 caused by COVID-19 including tools to be utilized to close the revenue gap (2) Approve resolution implementing a temporary wage reduction for Non -Represented staff effective June 1, 2020 through December 31, 2020 REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ® Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 5/11/20 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 5/11/20 5/18/20 MTG. DATE ATTACHMENTS 5/11/20 Informational Memorandum dated 05/06/20 Informational Memorandum dated 3/31/20 Resolution No. 1919 - Reserve Fund Policy 2019 - 2020 Biennial Budget Document Programs by Department (pages 452 - 457) Cash is King: Short -Term Strategies to Slow the Flow of Money out the Door... Draft Resolutions: (1) Affirming Revenue Gap and Tools; (2) Non -Represented Staff 5/18/20 11 12 TO: Finance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: May 6, 2020 SUBJECT: Decision Tree for Financial Impacts of COVID-19 ISSUE Decision tree for use in responding to the financial impacts of the COVID-19 pandemic. Affirm estimated revenue gap of $12 million in 2020 and $6 million in 2021 via resolution, approve resolution for temporary wage reduction for non -represented staff. DISCUSSION Recap of Current Proiected Revenue Ga As discussed in the first five pages of the attached memo, the City identified an initial revenue gap (March through May) of $6 million that has been filled with phase I reductions of $4 million, with departments currently working to close the remaining gap. Departments have been scrubbing their budgets and have closed the remaining gap as of May 6, 2020. There is an additional revenue gap of $6 million for the remainder of the year that needs to be addressed, bringing the total 2020 revenue gap to $12 million. Additionally, economic indicators point to a continuing loss of revenue in 2021 as well. At this time, we are projecting a revenue loss of $6 million in 2021. Thus, the City will need to fill a total revenue gap of $12 million in 2020 and a revenue gap of $6 million in 2021; meaning ongoing budget reductions. The 2021 revenue gap can be addressed via the biennial budget process, with some of the strategies identified for 2020 to be carried forward as appropriate. Affirmation of Revenue Gap, Tools for Decision Tree Included as an attachment is a draft Resolution affirming the estimated revenue gap of $12 million in 2020 and $6 million in 2021, and authorizing the Mayor, city Administrator, or Designee, to implement various cost -saving measures to address revenue shortfalls due to the COVID-19 pandemic. The draft Resolution identifies voluntary retirements and separations, reductions in workforce through attrition, furloughs, layoffs, pay reductions, and/or reductions in operating and office hours, closure of offices or departments or reductions in levels of operations or services, as needed. The Mayor, City Administrator, and Staff will continue to collaborate and communicate with the City Council as to what 13 INFORMATIONAL MEMO Page 2 actions will be taken based on collective bargaining negotiations currently underway with the City's labor partners. Decision Tree For purposes of discussing tools that can be utilized in the decision tree to close the revenue gap, the tools are grouped into two buckets: labor and non -labor. As a reminder, any changes to wages, hours, and working conditions must be bargained with labor partners. Based on discussion at the May 4, 2020 Committee of the Whole, the following tools were identified that can be utilized to close the gap in both 2020 and 2021. Tools for Decision Tree Comments Labor Voluntary pay reduction Department Directors have volunteered to the end of 2020. Considered to be long-term and could be budgeted in 2021- Layoffs 2022. Layoffs would typically be used for service level reductions or to follow collective bargaining agreement (CBA) language. Would result in unemployment costs to the City Voluntary and involuntary Considered to be short-term, and impacted employees could furloughs be reinstated by the end of 2020 or when workloads return to normal. Would result in unemployment costs to the City Voluntary retirements Would result in long-term savings only if vacated position and separations remains unfilled/frozen Early retirement incentive Would result in long-term savings only if vacated position remains unfilled/frozen Hiring freeze Results in savings only as long as the position remains vacant Reduced work hours per Should not result in unemployment costs to the City week/pay reduction Reduce overtime Some CBAs contain provisions for overtime in certain instances and some overtime is reimbursable. Voluntary leave without Depending on length of leave, could result in unemployment pay costs to the City Attrition Freezing positions that have been vacated through attrition. Savings only realized if positions remains vacant Non -Labor Eliminate travel and non- No additional comments essential training Reduce/eliminate Would affect capital projects that do not have a dedicated transfers to capital project funds revenue source Reduce department budgets by program or No additional comments type of expenditure Reduce transfers to Fleet There is currently an adequate fund balance in the Fleet fund. fund Any reductions in transfers would be one-time in nature. 14 INFORMATIONAL MEMO Page 3 Schedule for replacing certain vehicles would need to be reviewed and updated as needed in order to maintain a positive fund balance. Fleet purchases scheduled for this year are being reviewed and will be moved to next year when possible Contingency fund use is one-time in nature and, per Contingency fund Resolution No. 1919, must be repaid within a reasonable time frame Would need to be repaid and include a reasonable interest Interfund loan rate. An example would be the sewer utility loan to the general fund Changes in service levels are policy decision that are set by Service level adjustments Council, typically through the budget or budget amendment process Also included as an attachment is a document published by Government Finance Officers Association. The document identifies short-term strategies that can be implemented in order to maintain a balanced budget. Most of the tools listed in the document are included in the chart above. Parameters for Decision Tree In order to close the revenue gap in both 2020 as well as 2021, the following parameters are offered: - Reductions should be proportional and equitable across departments and labor groups as applied to programs identified through the priority -based budgeting process - Revenue gap in 2021 can be closed by continuing the use of some tools into next year as determined by City Council via setting the 2021-2022 biennial budget - Changes in service levels are policy decisions that are best made through the upcoming budget process - Appropriate mix of reductions in labor costs with contingency funds - Contingency fund use is one-time and, per adopted policy, must be repaid within a reasonable time - Early retirement incentives could be a tool utilized to close the revenue gap in 2021 Non -Represented Staff To achieve budget savings towards the projected $12 million revenue shortfall, one tool available to the City is to implement a temporary wage reduction of non -represented staff effective June 1, 2020 through December 31, 2020. Staff is recommending a 10% base wage reduction for Administrative Team Members (listed below) and the use of 14- furlough days for the rest of the non -represented positions which is roughly equal to a 10% wage reduction and work hours. Savings is estimated to be approximately $337 thousand. 15 INFORMATIONAL MEMO Page 4 • City Administrator • Deputy City Administrator • Public Works Director • Police Chief • Fire Chief • Parks & Recreation Director • Technology Services Director • Finance Director • DCD Director • Human Resources Director • Economic Development Administrator • Municipal Court Administrator The difference in the 10% wage reduction for Administrative Team members and other non -represented positions taking furlough days is to ensure continued compliance with Fair Labor Standards Act rules regarding overtime. To maintain FLSA Exempt status (not be required to pay overtime) the temporary percentage wage reduction for the next seven months for the Administrative Team members allows them to continue to receive a set salary regardless of the number of hours worked. The other FLSA Exempt non - represented positions will be temporality changed to a FLSA non-exempt hourly pay status and take the 14 furlough days to reduce their pay by 10% and work the commensurate hours associated with the pay reduction. Details of how the furlough time would be implemented is being worked out by a small group to ensure City services and continuity during this time. A second draft resolution, which implements these cost -saving measures for non - represented staff, is attached to this memo. Department Budget Scrub Departments were asked to scrub their budgets to offer a list of additional reductions for 2020. The chart on the next two pages lists reductions by department that were identified through the budget scrub exercise and has been updated with reductions identified as of May 6, 2020. The table below indicates budget reductions, by program for each department. It does not include reductions in overtime, travel and non -essential training, or furloughing of part-time positions as those reductions were captured in Phase 1, immediate reductions. In addition to the chart on the next two pages, the 2019-2020 Biennial Budget Program by Department attachment has been updated to reflect those programs that are reduced through the department budget scrub. Each affected program is highlighted in yellow. 16 INFORMATIONAL MEMO Page 5 Reductions by Reduction Effects of Reductions Department/Program Mayor Employee Recognition 10,750 Cancellation of all remaining employee recognition events for 2020 Organizational Dev. & Training 14,519 Cancellation of misc. staff development training Professional Services 5,500 Reduction of non -essential services Economic Development City Policy Development 3,300 Delaying economic development plan City Clerk Records Management 15,000 Reduce document digitization efforts Total Reductions from Mayor's 49,069 Department Administrative Services Human Resources Labor Relations 12,500 Reduce prof secs for labor relations and investigations and advertising Community Svcs & Engagement Community Engagement 17,500 Reduced funding for Community Connectors program, advertising, and communications Total Reductions from 30,000 Administrative Services Finance Insurance & Risk Management 90,000 Reduced liability insurance in 2020 and claims & judgements Budget Preparation 25,000 Remove budgeted cost of budget software Total Reductions from Finance 115,000 Recreation Organizational Support 57,408 Reduce maintenance project work, Planning & Development 7,000 Discontinue Rec guide for 2020, discontinue professional development training Wellness & Enrichment 16,960 Prof svcs contracts, supplies for programs Front Desk 9,950 Supplies, credit card charges, armored car svcs Events 41,299 Supplies and services contracts Preschool 2,600 Reduced costs due to program closures Senior Services & Programs 4,503 Reduced costs due to program closures Teen 17,980 Removed all trips with admissions costs, reduced costs due to program closures, cancelled Writer open gym Youth 44,602 Removed all outings and pool trips, reduced costs due to program closures Volunteer Services 500 Cancelled volunteer appreciation event Facility Rentals 10,950 Reduced supplies due to closure Administration 6,000 Supplies reduced Total Reductions from Recreation 219,752 Parks Parks 32,902 Utilities, supplies, small tools & equipment DCD Permit Intake and Coordination 3,500 Reduced operation supplies and training Current Planning 12,369 Reduced e)dra labor - student intern fuloughed Const. Permit Review & Inspection 400 Reduced operational a)penses Comp. Plan Implementation 34,486 Professional Services contracts suspended Code Enforcement 400 Reduced training Administration 9,875 Reduced operation supplies and training Total Reductions for DCD 61,030 Court Multiple programs 51,602 Court is legally required to manage a variety of cases within strict time limits and process standards. Current budget reductions are, in general, negatively impacting the court and further cuts could prove critical - especially since demand for court services will absolutely increase. 17 INFORMATIONAL MEMO Page 6 Reductions by Reduction Effects of Reductions Department/Program Police Department Training Program 38,000 While all legally mandated training and certifications will still occur, professional advancement and train -the -trainer type training will be reduced. Will impact nearly all PD teams: Patrol, Investigations, etc. Evidence & Property Mgmt. 14,318 Will require PD to move all items being stored in the off -site Evidence facility to another location, most likely the new PD facility or back to 6200 if the new construction isn't ready yet. Community Policing Team & 135,428 Police Patrol Services Quartermaster 20,000 Will reduce supplies and tools for PD teams, including: Patrol, CPT, Investigations, etc. Police K9 Program 30,000 The PD will forgo the acquisition of a tracking K9 in 2020 Narcotics & Street Crimes Team 5,000 Our covert employees will reduce their number of rental vehicles, which will impact their ability to JAC) swap out "burned" cars. PD Fitness Initiative 2,600 Will eliminate employee health and fitness initiatives as well as any Department training scheduled for the space. Total Reductions for Police 245,346 Fire Administration 6,000 Subscriptions, dues Logistics 28,000 Supplies in fire stations, SCBA, chain saws Special Projects/Tasks 8,000 No S/H meetings, hearing tests Training Received 5,500 Remove rescue team training Fire Prevention Administrative 2,000 Reduce training Emergency Mgmt. Assist Team 30,000 EM office reduce purchases Total Reductions for Fire 79,500 TIS End User Infrastructure Service 75,000 Delay refresh of laptops. Cost would be pushed into 2021. This is potential cost savings in the interim. Still in negotiations Vendor Management 12,500 Remove Vendor Info. Tech Network Infrastructure Services 36,000 Delayed Voice PBX by 1 year GIS Services 36,500 ESRI Budget reduction Total Reductions for TIS 160,000 Public Works Facility Cleaning/Custodians 50,000 Defer maintenance repairs of City -owned facilities Street (Public Works) Video & Fiber 15,000 Defer maintenance of City -owned cameras Transportation 35,000 Defer maintenance of roadway/sidewalk repairs Total Reductions for Street 50,000 Department Fleet Transfers O&M 892,010 Reduction of fleet transfers affects all departments in the general fund that have fleet vehicles. Capital 83,007 Transfers draw down the Fleet fund, which currently has a healthy fund balance Total Fleet Reductions 975,017 Grand Total Reductions Achieved 2,119,218 through Budget Scrubs Suggested Approach to Closing the Revenue Gap The chart on the following page provides one option to close the gap for 2020 and are estimates until departments complete budget scrubs and negotiations with labor groups are completed. This is a high-level summary that includes many of the tools listed above. It should be noted that this model shows the use of contingency funds in two places. First, as a 3:1 match for reduction in labor costs. Second, as additional funds needed to balance 2020. Any additional reductions by labor groups or department scrubs would result in less contingency funds needed to balance 2020. Each labor group may choose to participate in a different way. For example, one labor group will achieve their INFORMATIONAL MEMO Page 7 proportional share of reductions by holding positions vacant, while another may opt for reduced work week rather than layoffs. Estimated FY 2020 Gap to Fill 12,000,000 Phase I Hiring freeze for current vacant positions (1,600,000) All travel, non -essential training cancelled (140,000) Furlough part-time staff (150,000) No overtime unless authorized by Mayor (910,000) Transfers to capital project funds elimated (1,200,000) Total Phase I Reductions (4,000,000) Phase II Department Budget Scrub (2,100,000) Phase III Furlough days/pay reduction (non -represented) (382,000) Potential Furlough Days (labor group) (700,000) Contingency Match for Labor (3,246,000) Total Phase III Reductions (4,328,000) Total Reductions: Phases I, 11, and III (10,428,000) Additional Contingency Funds to Balance (1,572,000) Remaining Gap to Fill - Total Contingency Funds Available 7,099,000 Used in 2020 (4,818,000) Balance Available for 2021 2,281,000 In order to close the estimated revenue gap of $6 million in 2021, policy decisions on service levels would occur through the 2021-2022 budget process during the summer and fall months of 2020. RECOMMENDATION Council is being asked to approve the two Resolutions and consider them at the May 11, 2020 Committee of the Whole meeting and subsequent May 18, 2020 Regular meeting. ATTACHMENTS - Informational Memorandum — Budget Impacts due to COVID-19 Pandemic dated May 6, 2020 (most recently updated) and March 31, 2020 - Resolution #1919 — Reserve Fund Policy 19 INFORMATIONAL MEMO Page 8 - 2019 — 2020 Biennial Budget Document Programs by Department (pages 452 — 457) - Cash is King: Short -Term Strategies to Slow the Flow of Money out the Door and Keep the Budget Balanced - Draft Resolution — Affirming Revenue Gap, Tools for Decision Tree - Draft Resolution — Non -Represented Staff 20 TO: Finance Committee FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: March 31, 2020 SUBJECT: Budget Impacts due to COVID-19 Pandemic Updated for Mav 4. 2020 Reaular Meetina ISSUE Financial impacts of the COVID-19 pandemic. DISCUSSION Staff has been working on a daily basis to evaluate and analyze the financial impacts to the City of Tukwila's budget as a result of the ongoing coronavirus pandemic. This memo is to share with the Council current thinking and potential next steps associated with this global issue. I want to start with a shared recognition that there are difficult choices ahead as we deal with lost and delayed revenues. The organization is here to serve the Tukwila residents, businesses and broader communities and we committed to moving forward through process with our City values of Caring, Professional and Responsive at the forefront of our work. We also understand that there may be additional impacts to employees. As we approach what we hope is a new, but relatively short-term, fiscal reality we remain committed to being transparent, creative, and empathetic as we identify solutions that preserve City services and, as much as possible, as many positions that are feasible. Further, we are committed to working with our employees and labor partners in this effort. Because there is so much uncertainty with regard to the duration of this pandemic, as well as how long businesses will be closed, a number of assumptions have been made regarding impacts to general fund revenue. As new information is received and when there is a better idea of when the pandemic will end, we will be able to better predict the full impact of this emergency. We can partially identify revenue impacts through June. However, estimating financial impacts for the second half of the year will depend greatly on when the pandemic is over and how quickly the economy can recover. At this time, there is not enough information to predict what the second half of 2020 could look like. 21 INFORMATIONAL MEMO Page 2 That said, our assumptions are as follows: • Non -essential Businesses will be shut down into May • When businesses reopen, it will take some time to return to normal • We expect very little sales tax to be remitted during March and April given the "Stay Home, Stay Healthy" order • Property tax deadlines have been extended to June 1 for residential and commercial properties who pay property taxes themselves (property taxes paid through mortgage companies will still be required to be remitted on time). It is unknown how many taxpayers pay property taxes themselves in the City, but payment delays will affect the City's cash flows • Uncertainty regarding utility customer payments which would impact interfund utility tax • Sales tax revenue is received two months after it is earned. We will not know the true impacts on sales tax until May and June • Impacts of lost and deferred revenue will create cash flow issues Financial impacts affecting the City are broken down into two categories: Lost Revenue and Delayed Revenue. Lost Revenue This category includes revenue that will forever be lost due to businesses and programming closed down. Each month that businesses are closed will result in well over $1 million in lost revenue. With the information we have today, the following chart estimates lost revenue each month through June. March has been calculated as a partial month because systematic closures did not occur until mid -month. Other miscellaneous revenue in the last row include a myriad of other small revenue sources including interest earnings, donations, court fines, permits, licenses, etc. Again, the full impacts to March revenue will not be known until the latter part of May. Potential Lost Revenue Admissions Tax Gambling Tax TCC Programming TCC Rentals Sales Tax Mall Retail (excluding Mall) Accomodation & Food Service (excluding Mall) Entertainment, Recreation (excluding Mall) Other sales tax categories and other misc. rev Total March April 66,000 85,000 - 500,000 23,000 57,000 44,000 26,000 May June 97,000 75,000 350,000 350,000 40,000 37,000 21,000 46,000 167,500 300,000 335,000 350,000 253,500 442,000 348,000 390,000 39,500 70,000 75,000 82,000 11,500 20,000 26,000 28,000 500,000 500,000 258,000 292,000 1,105, 000 2,000,000 1,550,000 1,650,000 22 INFORMATIONAL MEMO Page 3 Cumulative impact of Lost Revenue is as follows: March only $1,105,000 March - April $3,105,000 March - May $4,655,000 March - June $6,305,000 Delayed Revenue The second category includes revenue that the City will most likely receive, but at a later time, once economic activity has returned to normal. It is unknown when the delayed revenue would be received by the City. With a high rate of unemployment caused by businesses closing, many utilities are waiving late fees and not shutting off utilities to customers until the emergency is over. We have also made the determination to not undertake either commercial or residential shut off as this time, and have suspended late fees associated with utility nonpayment. This could result in utility customers, including businesses, paying their bills late, which would result in a delay in receiving utility tax revenue. As noted above, an extension for property tax payments has been extended to June 1 st for residential and commercial property owners that pay the tax themselves. Other reasons for revenue receipts delayed include: • City permit counter currently closed to new permits, though still processing existing projects' permits • Potential new businesses are not opening during this pandemic • Businesses that are granted permission to defer tax payments without penalty At this time, with so little information available, it is next to impossible to predict when delayed revenue could be received by the City. For now, an assumption that 30% of total monthly revenues in the delayed category will be received either later this year or next year. The assumption of 30% is only an estimate and the actual impact could be much higher, or lower. Potential Delayed Revenue Utility Taxes Interfund Utility Taxes Property Taxes Permit Activity Business Licenses, State Entitlements Other misc. revenue categories 10% delayed 20% delayed 30% delayed Totals March April May June 385,000 340,000 300,000 294,000 130,000 650,000 130,000 150,000 - 250,000 200,000 - 220,000 460,000 280,000 247,000 75,000 33,000 21,000 68,000 500,000 500,000 500,000 500,000 1,310,000 2,233,000 1,431,000 1,259,000 March April May June Totals 131,000 223,300 143,100 125,900 623,300 262,000 446,600 286,200 251,800 1,246,600 393,000 669,900 429,300 377,700 1,869,900 786,000 1,339,800 858,600 755,400 3,739,800 23 INFORMATIONAL MEMO Page 4 Cumulative impact of Delayed Revenue is as follows: March only $393,000 March — April $1,062,900 March — May $1,492,200 March — June $1,839,900 To summarize, the financial impacts due to COVID-19 is as follows. Please recognize, information changes on a daily basis. As new information becomes available, the assumptions and projections will be updated. Lost Delaved Totals Cumulative 1.Ia.. h �P-.-il Mav J une Totals 1.105_000 2. 000. DDO 1. 550. DDD 1. 650. DOD 6. 305_000 393. D0O 66 9. 900 429. 3 D0 3 77. 700 1. 669.900 1.498.000 2.669.900 1.979.300 2.027.7D0 8,174.900 March 1,498.DOD Harch - Agri 1 4,167.900 I'd arch - May 6,147.200 PJarch - J une 8,174.900 Based on businesses closed into the first part of May and the assumption that it will take time for the economy to return to normal, the funding gap to close would be $6.1 million using the March through May assumptions. It should be noted that this gap is roughly equal to 10% of the City's annual general fund. Adjust General Fund Expenditures Based on Revenue Assumptions An effective way to reduce general fund expenditures would be to implement changes in three phases: immediate changes, near -term changes, and changes that can be implemented as better information becomes available and/or the longer the pandemic lasts. Immediate: Immediate changes that have already been implemented include the following - Hiring freeze for all currently vacant positions annual savings) $1,600,000 All travel cancelled, no non -essential training (unspent balance $140,000 Furlough all part-time, temporary extra labor (excluding unemployment) $150,000 No overtime unless authorized by Mayor $910,000 No transfers to capital project funds $1,200,000 Total immediate savings $4,000,000 24 INFORMATIONAL MEMO Page 5 After implementing the measures above, it is anticipated that two-thirds of the gap will be closed, leaving a remaining gap of $2.1 million. All departments are being required to immediately scrub their budgets and identify all other cost savings from programs that could be delayed until 2021 or eliminated altogether. Department reductions must be in excess of the reductions already listed above and may not include expenditures that are revenue backed. We expect to have that information back next week. In addition, staff is investigating a number of other opportunities to identify $2.1 M in savings, knowing that there may be additional savings needed should the duration of this emergency go longer, therefore requiring making up for additional lost revenues above $6.1 M. While not all of these may come to fruition for a variety of reasons, we are also currently: • Identifying potential additional transfers from the general fund that could be delayed or eliminated • Reviewing the Fleet Fund to determine if there is additional capacity there that could be used as a partial one-time, short term stop -gap measure, and what the implications of such a decision would be • Fully scrubbing our contingency and reserve funds to determine if there are additional funds over the mandated policy amounts that could be used • Initiating the discussion with our labor partners to identify if any of the following can help close the budget gap: voluntary retirements, voluntary leave without pay for staff that choose this option, additional potential furloughs, reduction in hours, reduction in pay or potential layoffs, and seeking labor's own ideas to fill in the gap We have been soliciting ideas from staff on other areas for reductions and, as usual, are impressed by the many varied ideas that have come from our employees that serve our City. It is clear that they understand the serious nature of the financial issues we are facing and want to be a part of the solution. In addition, there is a clear ethic of teamwork permeating through the different ideas. As you know, no impacts to wages, benefits or working conditions can be implemented without bargaining such impacts in advance with our labor partners. Our commitment is to continue to keep you informed of any changes as we progress through these difficult times. Once we have a better idea of a final recommendation to close the current $2.1 M we will work with you, as well as the staff, to implement any additional changes. In the meantime, please do not hesitate to reach out to me directly. New Information for April 13, 2020 Finance Committee The intent of this memo is to prepare the City Council to make informed policy and budget decisions regarding the financial impacts of the COVID-19 pandemic.. Decisions will need to be made this year for the 2020 budget. As this is a budget year, decisions for the next biennium can be made through the normal budget process this summer. 25 INFORMATIONAL MEMO Page 6 The COVID-19 pandemic is causing unprecedented financial impacts world-wide and the full extent of these impacts will not be known for months. However, we do know several key factors: - Initial U.S. unemployment claims are significantly higher than during the Great Recession. The graph below is from the April 4, 2020 CV-19 Track No. 4, published by the King County Office of Economic and Financial Analysis. The line at the far right side of the graph is not the border, but the number of claims between March 22, 2020 and March 28, 2020; FREE COMM Sp "Q IM0.000 VWX0 Z.QKQN 1,0WAW 0 1970 1g75 %92: 1985 195E 1"s 2000 20M - King County unemployment claims totaled 47,333 for the week of March 29, 2020 through April 4, 2020; - Statewide, businesses have the option to file, and pay, excise tax returns later than the normal due date. This will impact the City's ability to forecast revenue as well as cash flow for the next several months; - The City has received requests from businesses for an extension to file tax returns later than the current due date. City Council will be asked to approve temporary emergency policies that will formally grant businesses an extension. In order to understand, and develop a plan to address the financial impacts due to the COVID-19 pandemic, three models have been developed. The models have been developed using information available the week of April 6, 2020 and are subject to change as new information becomes available. All models consider revenue losses and include immediate expenditure reductions listed in the chart at the bottom of page 4 above as well as additional reductions identified by department totaling $1.8 million for a grand total expenditure reduction of $6.2 million. The City has already taken several steps to address the financial impacts of the pandemic. The city immediately implemented several cost savings measures. - Hiring freeze on all existing vacant positions. Positions will be filled only by approval of the Mayor, as deemed necessary. If all positions listed below are frozen for the remainder of 2020, total savings would be roughly $1.6 million in salaries plus benefits. Total projected savings will change as other positions become vacant due to retirements and/or if some of the positions listed below are filled. Currently vacant positions by department are as follows on the next page: 26 INFORMATIONAL MEMO Page 7 o Community Development: senior planner, building inspector III, associate planner, plans examiner o Fire: emergency management specialist, admin support technician — Note: Firefighter personnel positions currently in the hiring process will continue. o Police: community policing coordinator, evidence technician, police officer (3), master police officer (3) — Note: Police are authorized to continually actively recruit and hire new police officers to fill these vacant positions. Due to the time involved in this process and further retirements, it is assumed that not all of these positions will be able to be filled in 2020. o Public Works: engineer, facilities maintenance technician o Street: maintenance & operations specialist o TIS: information technology specialist - All travel and non -essential training canceled for the remainder of the year. Total savings is estimated to be $140 thousand. - Furlough all extra labor and part-time staff. Net savings, after considering unemployment costs, could be as much as $150 thousand but only if all extra labor and part-time positions remain vacant for the remainder of 2020. - Remove transfers of $1.2 million from the general fund to capital project funds. This will impact capital projects in residential street, arterial street, and the general government improvement funds. Further discussion on what capital projects would be impacted will be held at a later Finance Committee meeting. - No overtime unless authorized by the Mayor could result in a savings of up to $910 thousand. This affects all departments including Police and Fire. All departments have been asked to identify additional expenditure reductions. To date, departments have identified an additional $1.8 million in savings. In addition to the steps highlighted above, the City also established a budget ideas email address for employees to submit budget reduction suggestions. A cross -departmental group is being put together to review all suggestions and provide Administration with recommendations on which suggestions should be implemented. These suggestion will be vetted with the unions, and unions are being asked to come with budget ideas, as well. Fire department overtime: During 2019, the Finance Committee spent considerable time reviewing several aspects of fire department operations in order to understand why the fire department is consistently over budget. Per the informational memo dated May 22, 2019 and most recently reviewed by the Finance Committee on October 28, 2019, one option to keep the fire department within budget was to significantly decrease use of overtime to fill staffing when additional firefighters call in sick leave. Station 52 had the least amount of fire calls the last 5 years and would be the station affected with this change. The temporary impact would be to staff an aid car instead of an engine at this station, as warranted based on available staffing. 27 INFORMATIONAL MEMO Page 8 At the April 13, 2020 Finance Committee meeting, the following question was asked: Are firefighters moved among stations when faced with minimum staffing so that it is always Fire Station 52 that affected by placing the aid car in service in place of an engine? Per Chief Wittwer, personnel shift between stations as needed. Fire Station 52 would be the station where the aid car will be placed in service. Effective April 1, 2020, this option was implemented and is estimated to save $250 thousand in overtime over the course of the year. It should be noted that Fire Station 54's response time to the neighborhood around Fire Station 52 is very quick and within our adopted goals for response times for the Tukwila community. Fire Station 54 responds to the Old Hill neighborhood often, particularly when Fire Station 52 personnel are at trainings or covering a different area of the City for a variety of reasons. Fire Calls 6y Station ay Year with Average Response Times 200 IRS OW:I2 160 15 0 06 29 150 0:05:45 140 126 0:05:02 110 11-0 102 0- 04:19 logt81 100 g5 BG 0:05:36 80 62 62 S3 72 76 0:02:53 59 53 S6 42 44 57 0:02:10 38 9:01:26 20 I I ' 9,40.u0 �1 51 51 51 51 52 57 52 52 52 53 53 53 53 53 54 54 54 54 54 2014 2015 2016 2017 2018 �t014 2015 2016 2017 2018 2014 2015 201E 2017 2018 2014 2015 2016 W17 2M �FireCalls -fiesporueTime The current prediction is that the economic recovery from the pandemic would not be complete until 3rd or 4t" quarter of 2021, a full 18 months to return to a pre -pandemic economy. Unemployment levels, sustainability of businesses, and how the State and County plan to ease social distancing restrictions are considered in the models. Timeline through April 15, 2020 The timeline at the top of the next page highlights select significant events that have occurred in the State as well as King County. The time period covered is 38 days and begins on February 29, 2020 with the first known COVID-19 related death in the State through April 6, 2020 when schools across the State were ordered closed for the remainder of the academic year. INFORMATIONAL MEMO Page 9 Timeline of Select COVID-19 Related Events February 29 March 2 March 11 March 13 March 16 March 17 March 23 April 2 April 6 First known Companies begin Governor bans Governor extends Closure of all Governor bans Governor issues Stay at home Schools ordered COVID-19 death encouraging gatherings of 250 ban of gatherings restaurants, bars, gatherings of 'stay at home' order extended closed for in WA State employees to work or more in King, of 250 or more entertainment, and groups larger than order for 2 weeks through May 4 remainder of from home Pierce, and across State recreational 50 people academic year Governor issues Snohomish facilities state of Some schools counties Schools closed for emergency across state close 6 weeks Limits large group for a few days gatherings through March 31 Scenario 1 — Stay At Home Ends May 4: - Stay at home order does not extend beyond May 4, 2020 and allows for gatherings of up to 100 individuals through the summer months and all restrictions lifted by September. - Sales tax, along with admissions, and gambling taxes will be significantly impacted through May but will begin to grow in June. - Due to increases in unemployment benefits, consumer demand could fuel sales growth back to 80% of pre -pandemic sales by the end of the year. - We expect minimal defaults on property tax payments but there would be a cash flow issue. - Casinos could experience half the demand through summer and back to 80% by the end of the year. - Admission tax could remain low through summer and return to 80% of prior year by the end of the year. - During the closure order, utility tax revenue could be 20% below normal and returning to normal levels in the fall. - Programming revenue from the Tukwila Community Center will begin to provide some programming during the summer and fully open by September. Under Scenario 1, the City would need to identify ways to close an additional gap of $2.4 million. Scenario 1- The "Stay at Home" order not extended past May 4th and allows gatherings of up to 100 individuals through the summer months and all restrictions lifted by September. GENERAL FUND SUMMARYN PROJECTED BUDGET 2020 COVID REDUCTIONS COVID REDUCED BUDGET REVENUES SALARIES AND BENEFITS SUPPLIES AND PROF SERVICES 67,475,493 44,958,702 22,762,577 (8,602,709) (3,081,520) (3,136,432) 58,872,784 41,877,182 19,626,145 TOTAL EXPENSES 67,721,279 (6,217,952) 61,503,327 OVER/(UNDER) FUNDED (245,786) (2,384,758) (2,630,544) 29 INFORMATIONAL MEMO Page 10 SCENARIO 1 - GENERAL FUND REVENUES AND EXPENSES 6 4 2 h 6 4 2 Jan W Mar Apr May Jun Jul Aug Sep Oct Nov Dec -S1-Revenues -S1-Expenses •••••• Bud Revenues •••••• Bud Expenses On the next page is a graph for Scenario 1 that shows the 2020 budget for revenue along with the revised revenue projections based on lost as well as delayed revenue. The yellow line indicates the 2020 revenue budget, by month. The blue section in each bar indicates the adjusted revenue budget after taking into consideration both lost and delayed revenue. The orange section of each bar indicates lost revenue, while the gray and green sections indicate delayed revenue; gray is revenue delayed but projected to be received later in 2020 while green is projected to be received in 2021. 30 INFORMATIONAL MEMO Page 11 S1 REVENUES - BUDGET VS. COVID Revised Revenue COVID Reductions a Delayed Revenues in 2020 ® Delayed Revenues to 2021 —Budgeted Revenue - $12 $12 c c 0 0 $10 $10 $4 $4 $2 $2 JAN FEB MAR Im DEC $2 $2 $4 $4 $6 Scenario 2 - Stay at Home Extended into June: - Stay at home order extends by an additional month, through June 4, 2020 and allows for gatherings of up to 100 individuals through the summer months and all restrictions lifted by September. - Any extension on the stay at home order will most likely result in more businesses going out of business. - Sales tax, along with admissions, and gambling taxes will be significantly impacted through June but will begin to grow in June. - Due to increases in unemployment benefits, consumer demand could fuel sales growth back to 70% of pre -pandemic sales by the end of the year. - We would still expect minimal defaults on property tax payments but there would be a cash flow issue. - Casinos could experience half the demand through summer and into fall and back to 60% by the end of the year. - Admission tax will remain low through summer and return to 70% of prior year by the end of the year. - During the closure order, utility tax revenue could be 20% below normal and returning to normal levels in the fall. - Programming revenue from the Tukwila Community Center will begin to provide some programming during the summer and fully open by October. With Scenario 2, the City would need to close an additional gap of $4.3 million. 31 INFORMATIONAL MEMO Page 12 Scenario 2 - The "Stay at Home" order is extended until May 31st and allows for gatherings of up to 100 individuals through the summer months and all restrictions lifted by September 2020 COVID COVID REDUCED GENERAL FUND SUMMA T REDUCTIONS DGET REVENUES 67,475,493 (10,473,648) 57,001,845 SALARIES AND BENEFITS 44,958,702 (3,081,520) 41,877,182 SUPPLIES AND PROF SERVICES 22,762,577 (3,136,432) 19,626,145 TOTAL EXPENSES 67,721,279 (6,217,952) 61,503,327 OVER/(UNDER) FUNDED (245,786) (4,255,696) (4,501,482) SCENARIO 2 - GENERAL FUND REVENUES AND EXPENSES 12 2 12 o n �o �D 8 6 4 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -52-Revenues -52-Expenses •••••• Bud Revenues •••••• Bud Expenses 8 6 4 2 32 INFORMATIONAL MEMO Page 13 S2 REVENUES - BUDGET VS. COVID � Revised Revenue � COVID Reductions ® Delayed Revenues in 2020 � Delayed Revenues to 2021 -Budgeted Revenue JAN FEB MAR $10 `o $S Se = SQ $2 � So AUG SEP OCT fqov DEC hassaiiii! $2 $4 56 Ss Scenario 3 — Stay at Home Order Extended into July: - Stay at home order extends by an additional month, through July 4, 2020 and allows for gatherings of up to 50 individuals through the summer months and additional restrictions lifted by Fall with full restrictions lifted by end of the year. - The assumption is restrictions would last longer in order to stave off a second wave of infection. - Any extension on the stay at home order will most likely result in even more businesses going out of business. - Sales tax, along with admissions, and gambling taxes will be significantly impacted through the end of August but will begin to grow in September. - Due to increases in unemployment benefits, consumer demand might fuel sales growth back to 60% of pre -pandemic sales by the end of the year. - We would still expect minimal defaults on property tax payments but there would be a cash flow issue. - Due to the length of restrictions with this scenario, casinos would not open in 2020. - Admission tax will remain low through summer and return to 60% of prior year by the end of the year. - During the closure order, utility tax revenue could be 20% below normal and returning to normal levels in the fall. - Programming revenue from the Tukwila Community Center will begin to provide some programming during the summer but not return to normal in 2020. 33 INFORMATIONAL MEMO Page 14 With Scenario 3, the City would need to close an additional gap of $7.1 million. Scenario 3 - The "Stay at Home" order is extended until July 4th and allows for gatherings of up to 50 individuals through the summer months and additional restrictions lifted by Fall will full restrictions 2020 COVID COVID REDUCED GENERAL FUND SUMMARY IL BUDGET REDUCTIONS BUDGET REVENUES 67,475,493 (13,305,252) 54,170,241 SALARIES AND BENEFITS 44,958,702 (3,081,520) 41,877,182 SUPPLIES AND PROF SERVICES 22,762,577 (3,136,432) 19,626,145 TOTAL EXPENSES 67,721,279 (6,217,952) 61,503,327 OVER/(UNDER) FUNDED (245,786) (7,087,300) (7,333,086) SCENARIO 3 - GENERAL FUND REVENUES AND EXPENSES 12 12 C C O O I 10 10 S S 6 F: 6 4 4 2 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec S3-Revenues - S3-Expenses ...... Bud Revenues ...... Bud Expenses 34 INFORMATIONAL MEMO Page 15 S3 REVENUES - BUDGET VS. COVID Revised Revenue � COVIB Reductians � Belayed Revenues in 2020 � Belayed Revenues to 2021 —Budgeted Revenue N $12 — c 0 i $10 $B $6 $4 $z $B - JAN FEB MAR $2 $4 $6 $8 A summary of the 3 scenarios are as follows: I010I7J $12 c 0 $10 $S $6 $4 $2 Initial assumption $6.1 million in lost revenues in 2020 Scenario 1 Additional $2.4 million for a total of $8.5 million Scenario 2 Additional $4.3 million for a total of $10.5 million Scenario 3 Additional $7.1 million for a total of $13.3 million 35 INFORMATIONAL MEMO Page 16 Also included is a summary of the assumptions for each scenario (revised for 4/27/20): Assumption Scenario 1 Scenario 2 Scenario 3 Basis Stay at home order does not extend beyond Stay at home order extends by an additional Stay at home order extends by an additional May 4, 2020 and allows for gatherings of up month, through June 4, 2020 and allows for month, through July 4, 2020 and allows for to 100 individuals through the summer gatherings of up to 100 individuals through gatherings of up to 50 individuals through the months and all restrictions lifted by the summer months and all restrictions lifted summer months and additional restrictions September. by September. lifted by Fall with full restrictions lifted by end of the year. Any extension on the stay at home order will most likely result in more businesses going The assumption is restrictions would last out of business. longer in order to stave off a second wave of infection. Any extension on the stay at home order will most likely result in even more businesses going out of business. Sales and Other Sales tax, along with admissions, and Sales tax, along with admissions, and Sales tax, along with admissions, and Taxes gambling taxes will be significantly impacted gambling taxes will be significantly impacted gambling taxes will be significantly impacted through May but will begin to grow in June. through June but will begin to grow in June. through the end of August but will begin to grow in September. Adopted Budget., Revised Budget: $14,541,497 Revised Budget: $13,689,699 Revised Budget: $11,660,178 $20,600,686 Reduction of$6,059,179 Reduction of$6,910,977 Reduction of$8,940,498 Unemployment Due to increases in unemployment benefits, Due to increases in unemployment benefits, Due to increases in unemployment benefits, consumer demand could fuel sales growth consumer demand could fuel sales growth consumer demand might fuel sales growth back to 80% of pre -pandemic sales by the back to 70% of pre -pandemic sales by the back to 60% of pre -pandemic sales by the end of the year end of the year. end of the year Property Taxes We expect minimal defaults on property tax We would still expect minimal defaults on We would still expect minimal defaults on payments but there would be a cash flow property tax payments but there would be a property tax payments but there would be a issue. cash flow issue. cash flow issue Adopted Budget: No projected reduction in budget No projected reduction in budget No projected reduction in budget $16,416,911 Casinos Casinos could experience half the demand Casinos could experience half the demand Due to the length of restrictions with this through summer and back to 80% by the end through summer and into fall and back to scenario, casinos would not open in 2020. of the year. 60% by the end of the year. Adopted Budget., Revised Budget: $2,927,106 Revised Budget: $2,530,205 Revised Budge[: $1,755,057 $4,274,000 Reduction of $1,346,894 Reduction of $1,743,795 Reductionof$2,518,943 Admission Tax Admission tax could remain low through Admission tax will remain low through Admission tax will remain low through summer and return to 80% of prior year by summer and return to 70% of prior year by summer and return to 60% of prior year by the end of the year. the end of the year. the end of the year. Adopted Budget: Revised Budget: $589,548 Revised Budget: $518,274 Revised Budget: $495,910 $870,000 Reduction of$280,452 Reduction of$351,726 Reduction of$374,090 Utility Tax During the closure order, utility tax revenue During the closure order, utility tax revenue During the closure order, utility tax revenue could be 20% below normal and returning to could be 20% below normal and returning to could be 20% below normal and returning to normal levels in the fall. normal levels in the fall. normal levels in the fall. Adopted Budget., Revised Budget $5,990,250 Revised Budget $5,894,713 Revised Budget $5,788,825 $6,818,610 Reduction of$828,360 Reduction of$923,897 Reduction of$1,029,785 Culture and Programming revenue from the Tukwila Programming revenue from the Tukwila Programming revenue from the Tukwila Recreation Community Center will begin to provide some Community Center will begin to provide some Community Center will begin to provide some programming during the summer and fully programming during the summer and fully programming during the summer but not open by September. open by October. return to normal in 2020. Adopted Budget: Revised Budget$380,138 Revised Budget$357,569 Revised Budget$318,243 $601,000 Reduction of $220, 862 Reduction of $243,431 1 Reduction of $282, 757 Because it is currently expected that a COVID related recession will last through 2021, there will be impacts to the next biennial budget. The City should expect a reduced base of at least $4 million in revenue in 2021 which means that ongoing savings will be needed to maintain the budget for the next biennium. C'ach FInIAf Loss of revenue without an equal offset in expenditure reduction will result in an impact to cash flows. The chart below demonstrates the impacts to cash flow for each of the 3 36 INFORMATIONAL MEMO Page 17 scenarios modeled as well as cash flow for the current budget; revenue received by the City each month less payment of expenditures each month. As indicated in the chart below, if the general fund began the year at zero (no cash in the bank), the general fund would end the year at very close to zero. However, during the year, the general fund would have a cash deficit of $3.4 million in April and a cash deficit of $2.3 million in October. Approximately $3.4 million in reserves are currently used for cash flow purposes in April and October, shortly before the City receives property tax revenue. As each of the 3 scenarios indicate, without reducing expenditures above what has already been identified, the need for cash on hand throughout the year increases. Scenario 1 would require maintaining a minimum contingency fund reserve of $5.2 million in order to cover expenditures, while Scenario 3, the worst case, would require a minimum contingency fund reserve of at least $7.8 million at year-end to maintain a positive cash balance. Minimum contingency fund reserves are summarized as follows: Current budget $3.4 million required to maintain positive cash flow Scenario 1 $5.2 million required to maintain positive cash flow Scenario 2 $7.1 million required to maintain positive cash flow Scenario 3 $7.8 million required to maintain positive cash flow CASH FLOW $6 �S1 CaIhFl W S2Cash FI1%, S3 Cash Row Budget Cash Flow $a Financial Reserve Policy — General Fund and Contingency Fund The City adopted a reserve policy that was most recently amended by Resolution 1919, adopted by Council on November 20, 2017. The policy states that the general fund unassigned fund balance shall equal or exceed 18% and the contingency fund reserve 37 INFORMATIONAL MEMO Page 18 balance shall equal or exceed 10% of previous year general fund revenue, exclusive of significant non -operating, non -recurring revenues such as real estate sales or transfers from other funds. The policy also requires a one-time revenue reserve that will be maintained in the contingency fund. The one-time revenue reserve shall be credited annually with 10% of the prior year one-time revenues to the extent general fund surplus for the year is sufficient to cover the reserve funding. A copy of the resolution is included as an attachment to this memo. The policy also states that any draw down of minimum balances shall occur only upon recommendation of City Administration and approval by City Council through a resolution. Should a draw down occur, the City Administration shall establish a plan, no later than the end of the fiscal year following the decline, to restore the fund balance to the prescribed minimum level. The plan shall be presented to and approved by the City Council. Per Government Finance Officers Association (GFOA), a national organization representing public finance professionals throughout the United States and Canada and, among other functions, provides best practice guidance on all aspects of government finance functions. For minimum unassigned general fund balances, GFOA recommends, "at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures." Other considerations include: - Vulnerability to natural disasters; - Dependency on volatile revenue sources, in our case, sales tax; - The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of unrestricted fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile); - Perceived exposure to significant one-time outlays (e.g., disasters, immediate capital needs, state budget cuts); - The potential drain upon general fund resources from other funds, as well as the availability of resources in other funds; - The potential impact on the entity's bond ratings and the corresponding increased cost of borrowed funds Additional best practices include the following: - Define the time period within which and contingencies for which fund balances will be used; - Describe how the government's expenditure and/or revenue levels will be adjusted to match any new economic realities that are behind the use of fund balance as a financing bridge; - Describe the time period over which the components of fund balance will be replenished and the means by which they will be replenished; - Governments should seek to replenish reserves within one to three years of use. INFORMATIONAL MEMO Page 19 Parameters for using unassigned general fund balance and contingency fund reserves should include the following: - Are one time in nature. Once they are used, they are gone unless replenished via a repayment plan. - Some reserves must be maintained for cash flow purposes. The amount maintained is determined by the lowest balance during the fiscal year. (As noted above in the cash flow section, with each worsening scenario, the amount of reserves required to maintain a positive cash flow increase. - Funds can be used for short-term downturns/losses but any use of the funds must be repaid within a reasonable timeframe. - Funds used for longer -term downturns should be a stop -gap only and a long-term, sustainable solution must be identified and implemented. - It should be noted that the draft general fund unassigned fund balance as of December 31, 2019 meets best practice guidelines of maintaining a minimum two months of general fund expenditures. Current reserves are as follows (draft until 2019 is officially closed): "General fund unassigned fund balance $12,476,158 Contingency fund $6,402,392 One-time revenue reserve $699,586 Total reserves $19,578,136 ** Exceeds required unassigned fund balance by $951,851 New Information for April 27, 2020 Finance Committee Financial Reserve Policy — Enterprise Funds The Reserve Policy also includes requirements for enterprise funds. Per the policy, the unrestricted balances of the enterprise funds shall equal or exceed 20% of the previous year revenue, exclusive of the effects of GASB Statement 68, as well as significant non - operating, non -recurring revenues such as real estate sales, transfers in from other funds, or debt proceeds. Parameters for unrestricted balances in excess of required reserves include the following: - Enterprise funds cannot subsidize the general fund. Any enterprise funds utilized for general fund purposes would need to be via an interfund loan that would be required to be repaid, with interest, within a reasonable timeframe. - Reserves above the required 20% should be retained for planned and/or required capital projects adopted in the Capital Improvement Plan. The chart below details the draft ending unrestricted fund balance as of December 31, 2019 and includes the required reserve as well as a high-level calculation of the impact to ending fund balance after taking into consideration capital projects that are included in the Capital Improvement Program through 2024, adopted by City Council via Resolution No. 1953 on December 3, 2018. 39 INFORMATIONAL MEMO Page 20 The net effect on unrestricted (ending) fund balance includes the total cost of capital projects through 2024 less any dedicated revenue (grants, King County Flood Control, etc.) and operating revenue utilized to complete the projects. The figures below are high- level only and do not take into consideration loss of revenue in 2020 because businesses are currently closed or possible rate increases in future years. As information becomes available regarding lost revenue during the shutdown, the chart can be updated. 12/31/2019 20% of Policy Net Effect of Estimated Net Unrestricted 2018 Revenue Compliance Capital Projects Unrestricted Fund Balance * on Fund Fund Balance Balance 12/31/2024 401 - Water 7,484,856 1,425,806 Y (5,900,000) 159,050 402 - Sewer 13,606,550 2,174,173 Y 2,020,000 13,452,377 412 - Surface Water 5,423,776 1,423,961 Y (126,000) 3,873,814 *Adjusted for removal of the effects of GASB Statement 68 Unemployment The City of Tukwila is a `reimbursable employer' as are many government agencies in Washington State. This means that the City does not pay a monthly unemployment premium like we do with Industrial Insurance. Rather, when a former employee is receives unemployment, Employment Security Department (ESD) will pay the unemployment claim to the former employee then bill the City for those costs. Given the current COVID-19 pandemic and changes in unemployment regulations at both the Federal and State levels, unemployment rules have changed quite a bit and could continue to evolve. The Federal stimulus in the recently enacted CARES Act created Pandemic Unemployment Assistance (PUA) for businesses and workers affected by COVID-19. Key changes in unemployment due to the pandemic include the following- - Eligibility for unemployment benefits is expanded to include many Washington employees who would normally not qualify for unemployment including many self- employed individuals and those that do not have the typically required 680 hours to claim unemployment. - An additional $600 per week is available to nearly everyone on unemployment from March 29, 2020 through the week ending July 25, 2020. - Benefits extended by 13 weeks, for a maximum of 39 (which is about 9 months). This includes individuals who were already on unemployment as well as those who are newly eligible. Benefits to employees that are laid off or furloughed: Employees eligible to file for unemployment due to COVID-19 staffing reductions would receive a weekly benefit amount of between $188 and $790 from Washington State Unemployment. All employees receiving unemployment could receive an additional $600 per week from the CARES Act. Given the additional $600 provided under the CARES Act, some employees, mostly part- M INFORMATIONAL MEMO Page 21 time staff, could receive more money through unemployment benefits than if they continued to receive a regular paycheck. Costs incurred by the City: As previously stated, reimbursable employers are required to pay 100% of unemployment costs. However, during this national emergency, the federal government is offering some relief to reimbursable employers: - If an employee's hours were reduced or eliminated to follow public health recommendations, the federal government should pay 50% of the unemployment charges. - Workers at these government agencies are eligible for the Federal Pandemic Unemployment Compensation supplement of $600 per week. It is probable that unemployment costs associated with any employee that was furloughed or laid off because reduced/eliminated work hours to follow public health recommendations would be reimbursed at 50%. This would most likely include part-time staff hired in the Parks and Recreation departments. Programs were shut down because social distancing could not be adequately maintained. However, reductions in full-time staff would be because of a loss of revenue, not because of the need to follow public health recommendations. While still unclear, it is highly unlikely that these unemployment costs would be reimbursed and the full unemployment cost would be borne by the City. Financial Impacts to Residential Street, Arterial Street, and General Government Improvement Capital Projects Funds The financial impact of the pandemic will not only reduce revenues in the general fund, but will also effect dedicated and restricted revenues in our capital projects funds. Revenues that are expected to be negatively impacted include parking tax, gas tax (MVFT), real estate excise tax (BEET), solid waste utility tax, and impact fees. At this time, we do not expect that grants already approved will be negatively affected by the pandemic. The chart that follows on the next page summarizes the financial situation for each of the 3 funds and is followed by a narrative explanation for each fund. 41 INFORMATIONAL MEMO Page 22 Residential Streets Bridges and Arterial General Government (103) Streets (104) Improvements (303) Beginning Balance - 2,090,386 656,306 Forecasted Revenues Taxes 243,000 1,027,250 Fees 470,056 Grants 359,609 2,889,000 Interest 20,000 414 Transfers -In 100,000 - Total Available Funds 702,609 6,496,692 656,720 Forecasted Spending Wages and Benefits 485,383 50,000 Forecasted Spending by Project Fund Project Name 103 42nd Ave S Phase III 378,000 103 53rd Ave S 399,000 103 Traffic Calming/Residential Safety Improve. 2,000 103 Interfund Loan Repayment 336,932 104 Strander Blvd Extension Grant Reimb. 622,000 * 104 West Valley Hwy (1-405 - Strander Blvd) 350,000 * 104 Boeing Access Rd/Airport Wy Seismic Retrofit 2,614,000 104 42nd Ave Bridge Replacement 320,000 104 Annual Overlay 1,400,000 104 Annual Bridge Inspection & Repairs 335,000 104 ADA Improvements 50,000 104 Annual Traffic Signal Program 125,000 104 Wetland & Environmental Mitigation 40,000 104 Transportation Element of Comp. Plan 400,000 104 Walk & Roll Program 75,000 303 6300 Dry Fire Sprinkler System 30,000 303 Facilities Study 190,000 104 Park Impact Fees 1,009,400 Total Spending 1,115,932 7,825,783 270,000 Ending Balance (413,323) (1,329,091) 386,720 * Indicates projects funded by grant revenue Residential Street Revenues currently forecasted for this fund include gas tax (MVFT) and grant revenue that was invoiced in 2019 and expected to be received in 2020. At this time, the City and Seattle City Light are still disputing revenue of approximately $500 thousand the City expected to receive from the utility as part of the 42nd Ave S and 53rd Ave S roadway projects. Because this revenue is still disputed, it is not included in the summary table that follows this discussion. This matter is currently being handled by our attorney. It should be noted that a budgeted transfer in of $100 thousand is still included in the revenue budget. Expenditures include final costs associated with the 42nd Ave S and 53rd Ave S projects as well as an interfund loan repayment that was necessary at the end of 2019 to keep the fund from reflecting a negative cash balance at the end of 2019. Total amount of the loan was $337 thousand and was necessary because Seattle City Light did not reimburse the City, as expected. 42 INFORMATIONAL MEMO Page 23 Based on the current forecast for revenue and cost estimates for the projects listed above, it is projected that this fund will have a negative fund balance of $514 thousand at the end of 2020. Unless Seattle City Light reimburses the City for costs incurred on the 2 roadway projects, a transfer in of over $400 thousand will be needed to keep this fund positive at year-end. Staff is recommending that the transfer come from the General Government Improvement fund. The transfer amount, based on current information, could be roughly $386 thousand, leaving a deficit of only $28 thousand to be covered by the general fund. If Seattle City Light reimburses the City, the funds could be transferred back to the general government fund and the general fund. Arterial Street Revenues currently forecasted in this fund include parking and gas taxes, real estate excise tax, impact fees, and grant revenue. It also includes the additional solid waste utility tax approved by Council in 2019. At the March 2, 2020 regular council meeting, Council authorized the use of this tax for 30% design for the 42nd Ave South Bridge Replacement project. It should be noted that a budgeted transfer of $1 million was eliminated during the first phase of budget reductions. Expenditures in this fund include wages and benefits for three FTE as well as a number of projects; many of which are funded solely by dedicated/restricted revenues and transfers in from the general fund. Also included are 2 projects that are almost entirely funded by grants. Without reducing and/or eliminating projects that are not funded by grant revenue, the fund will end the year with a deficit of over $1.3 million. In order to keep this fund solvent, staff is recommending the following changes- - Delay the Transportation Element of the Comprehensive Plan and the Walk & Roll program until 2021. - Reduce funding for the following projects: overlay, bridge inspections, ADA improvements, traffic signal program, and wetland mitigation by a total of $865 thousand. General Government Improvements As part of the first phase of budget reductions, a transfer in of $200 thousand was eliminated. No other revenues are dedicated to this fund. Planned expenditures in this fund include $190-thousand for phases I and II of a facilities study that includes updated seismic assessments of several facilities, $30 thousand for the dry fire sprinkler system, as well as $100 thousand for other minor repair projects that could be needed this year. Because of the healthy beginning fund balance of $657 thousand, eliminating the transfer in does not create deficit fund balance at year-end. This fund is currently projected to end the year with a fund balance of over $386 thousand. Due to the current deficit in the residential street fund of $413 thousand, staff recommends transferring any excess funds 43 INFORMATIONAL MEMO Page 24 from this fund into the residential street fund, lessening the impact to the general fund. As mentioned in the discussion on the residential street fund, if Seattle City Light reimburses the City, the funds can be transferred back into this fund. New Information for April 28, 2020 Finance Committee Recap of Current Projected Revenue Gap As discussed in the first five pages of this memo, the City identified an initial revenue gap (March through May) of $6.1 million that has been filled with phase I reductions of $4 million and are working with departments to identify an additional $2.1 million to close the remaining gap. Departments are scrubbing their budgets and have already identified $2 million, leaving a gap of must $100 thousand. There will be an additional revenue gap that needs to be closed. Three scenarios were developed resulting in additional revenue losses ranging from $2.4 million up to $7.1 million. Details of each of the scenarios can be found on pages 9 — 16 of this memo. Additional revenue gap for each scenario is as follows. The amounts below are in addition to the initial $6.1 million revenue aao discussed above. Scenario 1 - $2.4 million + initial revenue gap $6.1 = total revenue gap $8.5 Scenario 2 - $4.3 million + initial revenue gap $6.1 = total revenue gap $10.5 Scenario 3 - $7.1 million + initial revenue gap $6.1 = total revenue gap $13.3 Given what we know today, Scenario 1 is most likely too optimistic. Based on economic indicators today, it is now believed, and is in line with what other area cities are projecting, that the actual revenue gap would be somewhere between Scenario 2 and Scenario 3, which would result in an additional revenue gap of around $6 million, for a total revenue gap in 2020 of $12 million. Additionally, economic indicators point to a continuing loss of revenue in 2021 as well. At this time, we are projecting a revenue loss of $6 million in 2021. Thus, the City will need to fill an additional gap of $6 million in 2020, for a total gap of $12 million with an ongoing budget shortfall of $6 million in 2021; meaning ongoing budget reductions. Decision Tree On one extreme, the City could utilize only contingency funds to fill the gap in 2020. Given the current contingency fund balance of $7.1 million (see page 19 for specifics on the contingency fund), this would leave $1.1 million to fill a small portion of the revenue gap in 2021. This is not a recommended option as it leaves no contingency available for a second or third wave of infections that could hit later in 2020 or in 2021 nor would it leave funds for any other emergency that could arise. The other extreme would be to reduce labor costs by $6 million to fill the remaining revenue gap and not utilize contingency funds. While this would result in ongoing savings, this would result in significant loss of staff and significantly reduce the ability to provide services to our communities. MA INFORMATIONAL MEMO Page 25 Rather, staff is recommending a balanced approach of matching contingency funds to labor reductions using a 3 to 1 ratio. This approach ensures that we stay true to our values of Caring, Professional, and Responsive. We are in this together and all departments need to share in the responsibility of reducing costs. Decision Tree Tools A more refined decision tree will be presented at the next Finance Committee meeting with the intent of identifying tools such as the following to close the gap: - Voluntary retirements and separations - Involuntary furloughs - Voluntary furloughs - Layoffs - Voluntary pay reductions Required Services and Current Service Levels The City of Tukwila is a code city and operates under RCW 35A Optional Municipal Code. The Optional Municipal Code provides flexibility in the administration of municipal government and permits code cities to adjust procedures and programs to meet individual needs. The Code (RCW 35A) establishes the powers and responsibilities of councilmembers, the mayor, and city administrator. Other city officials have only powers as the city council vest in them. This results in an increase in administrative choices available to code cities. There are legal requirements regarding planning in the Growth Management Act and minimum staffing is necessary for development activities. There are relatively few mandates for code cities in the RCWs regarding minimum staffing and service levels except for police. Code cities are required to appoint a chief law enforcement officer pursuant to RCW 35A.12.020 and a city police department must be under the control and direction of the chief of police. However, neither the state constitution nor state law mandates a specific number of law enforcement officers or level of law enforcement services. Thus, staffing and service levels are policy decisions in the discretion of the City Council. If the City does not maintain their own police department, the County would be required to provide coverage. There are no specific statutes that require cities to provide fire protection services or parks and recreation services. However, as a practical matter, cities provide some measure of these services. Through long-standing Council policy, the City Council has set current service levels through policy decisions during the budget and budget amendment process. The current budaet reflects priorities set by City Council and manv of the oroarams included in the budget closely align with the City's adopted Strategic Goals. Attached to this memo is the list of all programs in the general fund. Each program went through an extensive scoring process that benchmarked every program against the City's 45 INFORMATIONAL MEMO Page 26 Strategic Goals and basic program attributes. Tier 1 and Tier 2 programs most closely align with the Strategic Goals. All programs that are legally mandated either at the federal or state level are identified with an *. Many of the programs that have been identified as legally required are because of services the City provides. For example, because we Drovide fire services and emDlov firefiahters. there are reauired traininas that all firefighters must complete on a regular basis. Professional Services Details on professional services for each department are detailed in the 2019 — 2020 Biennial Budget Document. During Phase II when departments were required to scrub their budgets, many budget categories were reduced, including professional services. It should be noted that some contracts in the professional services category cannot be reduced as they are legally required. For example, audit costs are captured in professional services and an annual audit is required per RCW. Details on professional services for each department in the aeneral fund can be found on the following Daaes: Department Page Number(s) City Council 89 Mayor's Office 103 - 113 Municipal Court 124 — 125 Parks & Recreation 138 — 160 Community Development 171 — 182 Police 194 — 210 Fire 222 — 235 Public Works 248 — 260 Administrative Services 271 — 273 Finance 284 TIS 296 In addition to details on professional services, the chart on the following page summarizes all expenditures by major category in the general fund. m INFORMATIONAL MEMO Page 27 2019 - 2020 Biennial Budget General Fund Expenditure by Type General F-und Expendi€ures by Type City of Tukwila, Washington Actua l Budgel Pa rae nt oharga Prajec-bELd 2101G 2017 2019 2D1B 2D19 2020 2018-19 2a19-2D Salaries S 26,737,1578 S 27.618.116 # 27,373s BOB S 28,f102,303 S 29,395,986 S 3D,296,d21 2.9% 3.1% Extra Labor 627,M4 653,302 7A473 7a4.60 762,1333 764.697 1.1% ores Mime 1,511),1W 1.513.455 1,A54,443 1,B72,D35 1,35D,DN 1,354,OD0 -19.3% 0315 Total Wages 28,OB3,B54 29,785,074 30,1f34T 2 31,D29.CO1 31,508,923 3Z415,317 1.6% ts% FICA 1,698,26D 1,75D,040 1,791,576 1,843,684 Z107,152 2,Dfl9,OB2 14.3% -GIs% LEOFF 2 8131,656 93D,131 870,516 M,316 W-Z207 896,125 -2.s% PERS 1,3135,B67 1,512,991 1,66ZW4 1,O1Oo13 1.751,659 1,032,555 e.ez �.9% IndusirialInsurrance 9711,20o 634,0131 699z71 N1,170 861,416 934,A77 -e.s% HE% Med,Drel,Disabiity,Lr7e 5,563,572 5,597,627 5,7315 BN9 6.N7. 64 5065M 5,285,OO7 -s-z% t,8% Unemploymenl 4I},3AD 13,d39 21,354 13,D00 - on% on% Clothing Allowance 5,102 510rJ 1a,T80 10,774 13,525 0.5 5 -2G.9% on% Total B�nefi# 10,27D,937 iD-,w,738 10,79341)21 11,765.321 11,9&%519 14019,052 AAM *s% Office Supplies 47DAG 4115,174 494,459 481,442 427,525 427,525 a1.2% OD% Small Tools & Minor Equip 1 D9J$22 149,000 9Z-D2D 97,318 163,569 133,5ff0 69.1 % -1433:% Reereafion Prng Supplies 112235 19.782 20-42 31,13D0 37,090 37,000 IGA% anal Fire Supplies 1B1,56B 114,465 14"3 186,977 151,37E 161,3T7 - CD% StreE. Ma 1t Supplies 167,099 1B6,077 15k524 24D,3D0 152,760 165,725 -3&774 .2n% OM- 342,562 M7,2134 30B,B64 H1,2115 325,483 306,483 -s-,% lotal Supplies 1AS3.445 1.2111.702 1�22`},d02 1,308,122 U57.656 1.213,6111 ter% ph ProiessionA Senkes 2.776,406 3,3D4,744 3AM408 3,1102,177 3,M2,4H 1. 144,0M -11.1-4 -i s% Commtnicaticn 407,476 4DD.a2a 471,M9 43l!-.370 434,6M 434,13M -0 z ou% Tra-,el 143,012 1136,239 16D,103 1ali,8BD 169,630 159,630 1=_.9z ou% Ad*nising 24,222 26,052 3Dz51 51,500 47,550 A7,WA CD% Operating Rents & Leases 294,737 478,425 5138�4W 4A5 670 466, 130 466,230 -A,oz 13 D% Equipment Replacerneni 4I32,893 1W.014 567AB IM014 067,1312 166,014 301,e% -?5.1% Equip Operations & Maint 1.13D,405 1,411,723 1,641,916 1,055,686 1,763,643 1,784,020 SIM 1r% Insurance 810,799 131113,097 07D,416 W-13.962 1.0135.775 1,1347,762 2.9% i Utililies 1,828,751 1,015.730 1,99Z419 1,928,305 109,424 2,D69,1O1 3.7% 33% Repairs and Maintenance 850.278 6M.275 5B4,152 BOT,4118 623.150 587.912 -zzax -5.7% Miscellaneous 832,886 03D,3D5 1,031[1,083 1.114.473 886,637 89D,637 -2a.3% 02% Clams &Judgements 160,514 119,1D0 334,702 3A2,DOD 3213,090 32D,000 is-z% a13% Credit Card Fees 38,645 58.078 4D,456 71),13111 43,13111 43,OB1 -3e.9% QD% Other E.014 6,398 D D,SOD 4.250 4,250 -34.6% one Total ServicrLs 9,71D.B99 11),07,7% 11193d MO 11,873.136 11,M.377 11.165.751 ,Z1% 4n% SCORE Jain 1.310,736 1,4116,963 1,37D, 506 1,533,4(15 1,1526,355 1,675.146 -DA% 3D% Valley Communications 1,034,11213 1,111,663 1,137,420 1,184,617 1,184,253 1,219,01 o.oz 3J2% Animal Conaal 1139,136 111,A92 55064 119.852 125,DD0 131,250 s-2% SD% Other 244,1565 251,070 240.217 254,D50 2A6,758 293,117 129% .22% lotallntergovemmentaJ 2011,347 ZD41,388 3)92D,T07 3,191.124 3X2.36C 3.319,OD4 1.0% to% Machinery and Equipment 79P.Ml 117.679 7E..E.89 313,DD0 24D,000 27D,000 70o.0% 1;!--4s Total Capital 798,601 117,G79 76�50 30,00 244,OD6 270,OD0 rooaw% 1t6% Total NpL ExpendRun-i 53,773.922 54,977,431 57,217,642 59,198,734 59,50 &W 0,402,8D5 0 1. Trarrsfers- CDettSavFundS 2,874,831 2,773,452 3,37B&04 5.940.58D 4.D33,851 1,587,190 31.oz ii.i�fi Trarrsfers- Capital, Daher 1,451,OrJD 2,5134,044 1,5a190 3,1322,I}91) 2119= 1,621,9W •37.3% -.28E% Transfer - Contingency a32,?3^_ 180,715 92,1672 - 565189 21D,OD0 on% .2586�fi Total FxpendihuP!i S 58,533,435 S 611.495,692 $ 62,277,417 t 68,667.314 $ 65.065.875 $ 65.821,9d5 65 47 INFORMATIONAL MEMO Page 28 Possible Next Steps for Council - May 4, 2020: confirmation from Council that, based on what we know today, the revenue gap for 2020 is $12 million and a continuing revenue gap of $6 million in 2021: meaning ongoing budget reductions. - May 11, 2020: Decision on tools to be used in the decision tree to close the revenue gap. Suggested schedule for the next several Finance Committee meetings • April 13, 2020: review 2020 projections, review cash flow, review contingency fund reserve policy and best practices • April 27, 2020: review impacts to capital projects in residential and arterial street funds, impacts of unemployment costs to the City • May 11, 2020: Review decision tree and triggers for each scenario • June 8, 2020: review updated projections and sales tax data RECOMMENDATION Updated Recommendation: Council consensus on 2020 revenue gap scenario of $12 million with a continuing revenue gap of $6 million in 2021 and discussion of tools that may be used to close the aaD. ATTACHMENTS Resolution #1919 — Reserve Fund Policy 2019 — 2020 Biennial Budget Document Programs by Department (pages 452 — 457) Cl*ty of T Washington Resolution No. / Q I q A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REVISING THE PREVIOUSLY ADOPTED FINANCIAL RESERVE POLICY TO ELIMINATE THE EFFECTS OF GASB 68 FOR PURPOSES OF CALCULATING THE UNRESTRICTED BALANCES OF THE ENTERPRISE FUNDS; AND REPEALING RESOLUTION NO. 1861. WHEREAS, for the well-being and sustainability of the community, its residents, and businesses, it is important that the City of Tukwila be prepared to respond to any and all situations that could result in a risk and/or crisis to the City's finances including, but not limited to, revenue shortfalls and unanticipated expenditures; and WHEREAS, it is the responsibility of the City Council of the City of Tukwila to provide policy direction for the City's biennial budget through the passage of motions and ordinances, adoption of resolutions, and final approval of said budget; and WHEREAS, a financial reserve policy establishes, attains, and restores minimum fund balances, including self -insured health care reserve funds, and specifies review and reporting of such; and WHEREAS, beginning in 2015 the City was required to implement Governmental Accounting Standards Board Statement 68 (GASB 68) related to accounting and reporting for pension plans; and WHEREAS, it is the responsibility of the City to report the effects of GASB 68 in the Comprehensive Annual Financial Report (CAFR), even though the effects are not a current liability of the City; and WHEREAS, the City desires to eliminate the effects of GASB 68 for purposes of calculating the unrestricted balances of the Enterprise Funds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Minimum Fund Balances. A. At the close of each fiscal year, the General Fund unassigned balance shall equal or exceed 18% and the Contingency Fund reserve balance shall equal or exceed 10% of the previous year General Fund revenue, exclusive of significant non- WAWord Process ing\Reserve Policy revised 11-14-17 SW:bjs Page 1 of 2 i • operating, non -recurring revenues such as real estate sales or transfers in from other funds. B. At the close of each fiscal year, the unrestricted balances of the Enterprise Funds shall equal or exceed 20% of the previous year revenue, exclusive of the effects of GASB Statement 68, as well as significant non -operating, non -recurring revenues such as real estate sales, transfers in from other funds or debt proceeds. C. Use or draw down of minimum balances shall occur only upon recommendation of City Administration and approval by City Council through a resolution. Should use or draw down occur, the City Administration shall establish a plan, no later than the end of the fiscal year following the year of decline, to restore the fund balance to the prescribed minimum level. The plan shall be presented to and approved by the City Council. Section 2. One-time Revenue Reserve. A One-time Revenue Reserve shall be established and maintained in the Contingency Fund. The One-time Revenue Reserve shall be credited annually with 10% of the prior year one-time revenues to the extent General Fund surplus for the year is sufficient to cover the reserve funding. Use of the reserve shall occur only upon recommendation by City Administration and approval by City Council through a resolution. Section 3. Self -insured Health Care Fun each of its self -insured health care funds in an the actuarially determined IBNR (incurred b reserve shall occur only upon recommendation City Council through a resolution. ds. The City shall maintain a reserve in amount equal to 1.5 times, or 150%, of ut not reported) balance. Use of the by City Administration and approval by Section 4. A report showing compliance with the Financial Reserve Policy shall be provided to the City Council on an annual basis, no later than July 1 of each year. Section 5. Repealer. Resolution No. 1861 is hereby repealed. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this )'04 day of 2017. AT�T"E�ST/AUTHENTICATEDo Christy O' la erty, MMC, City Clefg APPROVED AS TO FORM BY: (2CKA& Rachel B. Turpin, City Attorney W:\Word Processing\Reserve Policy revised 11-14-17 SW:bjs raw-W a Dennis Roe o , Council President Filed with the City Clerk: - c� l t7 Passed by the City Council: - Resolution Number: c� 19 Page 2 of 2 50 2019 - 2020 Biennial Budget City of Tukwila, Washington PROGRAMS BY DEPARTMENT Department Program Tier 2019 Budget 2020 Budget Allocation Allocation Administrative Seances `Accounts Payable/Budget Preparation Ter 2 45,975 48,522 Administrative Services *Civil Service Compliance Tier 2 55,060 55,733 Administrative Services *Emergency Preparedness/Response Tier 2 5,884 6,248 Administrative Services *Policy Development/Compliance Tier 2 57,278 59,710 Administrative Services *Recruitment Tier 2 81,781 82,696 Administrative Seances Communications Tier 2 250,696 263,311 Administrative Seances Community Engagement Tier 2 68,646 70,772 Administrative Seances Equity Tier 2 20,049 20,854 Administrative Seances Government Relations Tier 2 25,911 27,432 Administrative Seances Housing Tier 2 230,486 236,278 Administrative Seances Public Safety Plan Tier 2 95,975 101,568 Administrative Seances Regional Collaboration Tier 2 34,814 36,310 Administrative Services School District Tier 2 41,600 43,904 Administrative Services Tukwila Works Tier 2 10,041 10,626 Administrative Services *Benefit Plan Management Tier 3 53,812 55,906 Administrative Services *Health & Safety Tier 3 63,645 65,183 Administrative Services *Labor Relations Tier 3 142,163 147,969 Administrative Services Classification/Compensation Tier 3 86,528 90,135 Administrative Services Food Insecurity Tier 3 63,394 64,301 Administrative Services HR General Administration Tier 3 89,622 90,334 Administrative Services Internal Communications Tier 3 75,687 82,954 Administrative Services Minor Home Repair Tier 3 116,085 117,767 Administrative Services Performance Management/Training Tier 3 72,040 73,244 Administrative Seances Physical/Mental/Dental Well -Being Tier 3 173,381 174,495 Administrative Services Support for Independence Tier 3 123,371 123,839 Administrative Services Training Tier 3 27,586 28,862 City Council *Budget Oversight Tier 1 78,778 80,256 City Council *Governmental Affairs and Appointments Tier 1 91,283 92,579 City Council *Legislative Oversight Tier 1 196,528 198,485 City Council Community Engagement and Events Tier 2 65,522 66,705 Community Development *Construction Permit Review and inspection Tier 1 733,781 753,409 Community Development *Comprehensive Plan Implementation Tier 2 342,398 350,840 Community Development *Current Planning Tier 2 305,335 315,506 Community Development *Regional Government Coordination Tier 2 150,703 154,200 Community Development *Transportation Demand Management Tier 2 181,598 183,851 Community Development Code Enforcement Tier 2 267,876 274,961 Planning Commission, Board of Architectural Community Development Review and Hearing Examiner Tier 2 187,843 193,686 Community Development Rental Housing Tier 2 140,761 144,739 Community Development *DCD Administration Tier 3 318,379 325,506 Community Development *Permit Intake and Coordination Tier 3 362,099 370,625 Community Development Abatement Tier 3 88,261 89,342 Community Development Customer Inquiries and Assistance Tier 3 375,449 387,221 Community Development Recycling Tier 3 57,075 56,531 Finance *Budget Preparation Tier 2 123,022 143,213 Finance *Emergency Preparedness Tier 2 1,678 1,773 Finance Administration Tier 2 75,381 77,097 Finance Long -Range Financial Planning Model Tier 2 33,096 33,826 Finance Public Safety Plan Tier 2 48,928 51,216 Finance *Accounts Payable/Juror Payments/CTR Tier 3 182,024 188,300 Finance *Capital Asset Accounting Tier 3 42,762 49,600 Finance *Cashiering/Treasury/Banking/Unclaimed Property Tier 3 209,676 213,696 Finance *Debt Management Tier 3 67,523 54,438 Finance *Financial Reporting & Analysis for Departments Tier 3 63,362 67,061 Finance *Financial Reporting/CAFR Tier 3 218,804 229,105 *Denotes a program mandated at the federal or state level 452 51 2019 - 2020 Biennial Budget City of Tukwila, Washington Department Program Tier 2019 Budget 2020 Budget Allocation Allocation Finance *GUEden Administration Tier 3 59,329 67,174 Finance *Grant Accounting Tier 3 50,967 72,809 Finance *Insurance & Risk Management Tier 3 759,706 775,811 Finance *Payroll Administration Tier 3 196,636 203,803 Finance Accounts Receivable/Misc. Billings/LID Tier 3 51,449 55,324 Finance Business License Administration Tier 3 124,948 61,459 Finance Sales & Other Taxes Tier 3 50,947 96,838 Finance Training & Development Tier 3 26,498 27,197 Finance Utility Billing Tier 3 210,949 216,301 Finance *Indirect Cost Allocation Tier 4 33,489 19,620 Finance Investment Management Tier 40,020 41,522 Fire *Apparatus and Equipment Check Tier 1 413,541 424,340 Fire *Emergency Response - Fire & EMS Tier 1 3,556,967 3,654,593 Fire *Fire Prevention Plan Review & Inspection Duties Tier 1 236,455 243,197 Fire *Fleet and 3rd Party Maintenance & Testing Tier 1 223,651 229,634 Fire *Valley Communications & Emergency Radios Tier 1 252,071 259,554 Fire *Administration Tier 2 1,180,917 1,205,711 Fire *Budgeting Tier 94,316 97,129 Fire *Emergency Management Administrative Tier 2 141,194 144,106 Fire *Emergency Management Planning Tier 2 92,499 94,464 Fire *Emergency Messaging Tier 6,172 6,305 Fire *Fire Prevention Investigation Duties Tier 2 66,192 69,095 Fire *Training received Tier 2 923,250 948,818 Community Outreach/Education Emergency Fire Management and Fire Tier 2 169,596 172,997 Fire Emergency Management Assistance Team Tier 2 36,703 37,461 Fire Fire Prevention Administrative Tier 2 74,725 76,356 Fire Pre -Fires Tier 2 29,945 30,763 Fire Professional Development Tier 2 198,052 203,982 Fire Recruiting & Hiring Tier 2 38,342 39,275 Fire *HazMat Team Tier 3 10,592 10,734 Fire *Health and Safety, Physical Fitness Tier 3 748,267 768,329 Fire *Logistics, Equipment & Supplies Tier 3 1,268,079 1,261,236 *Personal Protective Equipment (PPE) - Fire Fire Prevention & Inspections Tier 3 122,997 126,333 *Personal Protective Equipment (PPE) - Fire Suppression Tier 3 166,832 171,376 Fire *Public Records Requests Tier 3 56,572 58,194 Fire *Training Delivery Tier 3 524,579 538,490 Fire Deployments Tiier3 201,189 208,146 Fire Non -Emergency Response Tier 3 763,603 783,958 Fire Rescue Team, Water, Trench, Rope Tier 3 47,225 47,783 Fire Special Event Overtime Tier 3 11,365 11,643 Fire Custodial Services Tier 4 228,507 233,954 Fire Explorer Program Tier 4 4,951 5,095 Fire Facilities Tier 4 122,375 123,690 Fire Inter -Department Support Tier 137,966 142,198 Fire Public Services Tier 4 24,994 25,671 Fire Special Projects/Tasks Tier 4 298,703 307,780 Mayor *Council Agenda/Meeting Functions Tier 1 103,910 108,783 Mayor *Council Legislative Support Tier 1 68,225 69,727 Mayor Citywide Strategic Goals Tier 1 13,122 13,414 Mayor Legislative Affairs Oversight Tier 1 93,333 93,333 Mayor Strategic Planning and Policy Implementation Tier 1 111,619 113,229 Mayor *Attorney Services Tier 2 406,230 406,230 Mayor *Budgeting/Purchasing Tier 20,970 21,723 Mayor *Elections/Voter Registration Tier 2 33,328 33,407 Mayor *Intergovernmental Relations Tier 2 97,789 100,449 *Denotes a program mandated at the federal or state level 453 52 2019 - 2020 Biennial Budget City of Tukwila, Washington Department Program Tier 2019 Budget 2020 Budget Allocation Allocation Mayor *Legal/Public Notices Tier 2 37,406 38,462 Mayor *Ordinance, Resolution & TMC Development Tier 2 67,575 70,314 Mayor *Personnel Tiier2 40,850 41,815 Mayor *Prosecution Services Tier 2 166,000 166,000 Mayor *Public Defense Program Tier 2 479,685 481,193 Mayor Administration (Budget Preparation) Tier 2 8,257 8,342 Mayor Business & Development Attraction and Retention Tier 2 18,530 18,822 Mayor Business Relationships and Satisfaction Tier 2 13,122 13,414 Mayor Community Representation Tier 2 104,023 105,984 Mayor Destination Development Tier 2 18,047 18,216 Mayor Public Safety Plan Tier 2 37,239 38,078 Mayor Resident Inquiries and Assistance Tier 2 13,445 14,199 Mayor Special Matters (Attorney Services) Tier 2 128,500 128,500 Mayor Tukwila International Blvd Revitalization Tier 2 14,291 14,584 Mayor *City Clerk Division Administration Tier 3 64,160 65,938 Mayor *Commute Trip Reduction/Green Initiatives Tier 3 91,000 91,000 Mayor *Digital Records Center Tiier3 131,198 134,917 Mayor *Essential Public Services Tier 3 48,946 50,793 Mayor *Public Records Requests Tier 3 120,899 125,235 Mayor *Records Management Tier 3 100,489 104,410 Mayor Administration Accounts Payable Tier 3 18,913 19,329 Mayor Administration Essential Services Tier 3 29,677 8,441 Mayor Boards, Commissions and Committees Tier 3 54,188 54,942 Mayor City Policy Development Tier 3 32,035 32,744 Mayor Conferences/Training Tier 3 37,475 37,957 Mayor Economic Development Administration Tier 3 17,418 17,626 Mayor Internal Communications Tier 3 47,470 48,812 Mayor Marketing & Sales to Day Tourists Tier 3 3,665 3,750 Mayor Marketing & Sales to Overnight Tourists Tier 3 3,665 3,750 Mayor Meeting Coordination, Scheduling, Facilitation Tier 3 57,187 59,068 Mayor Organizational Development and Training Tier 3 36,982 37,733 Mayor Professional Services (Attorney Services) Tier 3 10,000 30,000 Mayor Regional Partnerships & Relationships Tier 3 32,302 32,679 Mayor Special Event Coordination Tier 3 10,440 10,817 *.Records Retention, Management, Archiving, & Mayor Destruction Tier 4 6,825 7,202 Mayor *Required Citywide Functions Tier 113,180 114,402 Mayor City Property Development and Management Tier 60,404 61,738 Mayor City Scholarship Tier 16,743 17,120 Mayor Emerging Issues & Opportunities Tier 22,383 22,591 Mayor Employee Recognition Program Tier 4 28,240 28,994 Mayor Lodging Tax Applications Oversight & Support Tier 4 3,665 3,750 Mayor Special Presentations Tier 11,198 11,411 Municipal Court *Community Education and Outreach Tier 2 14,925 15,124 Municipal Court *Court Administration Tier 2 116,307 118,768 Municipal Court *Judicial Administration Tier 2 20,830 20,864 Municipal Court *LFO Recovery Programs Tier 2 19,730 20,432 Municipal Court *Adjudication - General Offenses & Traffic Tier 3 23,946 24,236 Municipal Court *Administrative and Logistical Support for Judges Tier 3 79,615 81,807 *Commissions, Associations, Boards, and Municipal Court Committees Tier 3 33,285 34,028 Municipal Court *Compliance Monitoring Tier 3 54,692 56,041 Municipal Court *Court Financial Operations Tier 3 26,003 26,594 Municipal Court *Court Required Educational Programs Tier 3 24,729 25,331 Municipal Court *Law Related Education Tier 3 133,893 136,764 Municipal Court *Maintenance of Court Records Tier 3 27,201 27,906 Municipal Court *Non -Compliance Case Processing (Admin) Tier 3 820 820 *Denotes a program mandated at the federal or state level 454 53 2019 - 2020 Biennial Budget City of Tukwila, Washington Department Program Tier 2019 Budget 2020 Budget Allocation Allocation Municipal Court *Policy & Procedures, & Program Management Tier 3 17,322 17,689 'Technical Support - Court Case Management Municipal Court Systems Tiier3 21,369 21,902 Municipal Court * Retention/Appeals Management/Mental Health Tier 11,604 11,881 Municipal Court *Account Reconciliation and Auditing Tier 4 21,503 21,989 Municipal Court 'Assessment of Court Costs/Fines/Restitution Tier 4 9,258 9,273 Municipal Court 'Bail Bonds Tier 11,604 11,881 Municipal Court "Case Preparation Tier 4 49,213 50,516 Municipal Court 'Citations/Fines and Fees Tier 4 8,671 8,936 Municipal Court "Collections Tier 12,572 12,910 'Collections/Write-Offs/Maintenance of Inactive Municipal Court Cases Tier 25,742 26,367 Municipal Court 'Community Service Tier 4 3,288 3,405 Municipal Court `Community Service Tier 17,737 18,190 Municipal Court 'Community Work Alternative Tier 4 20,051 20,508 Municipal Court 'Conflict Counsel - Indigent Defendants Tier 4 8,186 8,374 Municipal Court 'Court Hearings Tier 98,594 98,754 Municipal Court 'Court Interpreter Management Tier 4 26,914 27,655 Municipal Court 'Customer Assistance & Payment Processing Tier 4 55,032 56,522 Municipal Court *Customer Service Tier 4 24,292 24,835 Municipal Court *Data Input Tier 4 8,671 8,936 Municipal Court 'Day Reporting Tier 8,766 8,993 Municipal Court 'Formal & Monitored Probation Supervision Tier 4 47,889 49,017 Municipal Court *Jury Manager/Management Tier 8,335 8,545 Municipal Court 'Non -Compliance Case Processing (Probation) Tier 4 24,934 25,536 Municipal Court 'Pre -Sentence Investigations Tier 15,963 16,339 Municipal Court 'Public Defender Screening Tier 4 8,766 8,993 Municipal Court 'Public Record Act/Subpoena Responses Tier 4 27,695 28,368 Municipal Court 'Video Conference Facilitation Tier 4 12,665 13,022 Municipal Court 'Warrants Tier 44,089 44,907 Municipal Court Mail Processing Tier 13,313 13,628 Municipal Court Scanning Tier 4 58,212 59,581 Park Maintenance Administration Tier 203,177 213,775 Park Maintenance Parks Tier 1,101,877 1,133,351 Park Maintenance Planning & Development Tier 2 129,242 132,507 Park Maintenance Boards & Commissions Tier 3 8,616 8,834 Park Maintenance Course Maintenance Tier 3 14,210 15,254 Park Maintenance Facility Tier 3 98,685 102,270 Park Maintenance Golf Tier 3 10,316 10,585 Park Maintenance Organizational Support & Development Tier 3 25,848 26,501 Park Maintenance Strategic Support Tier 3 8,616 8,834 Police 'Department Training Program Tier 1 444,088 454,918 Police 'Evidence & Property Management Tier 1 207,353 214,791 Police 'Felony and Sexual Crimes Unit (MCU) Tier 1 2,372,340 2,369,808 Police 'Front Office & Records Management Tier 1 1,237,862 1,280,999 Police 'Police Patrol Services Tier 1 6,163,468 6,204,936 Police 'Traffic Enforcement & Crash Investigation Team Tier 1 821,787 823,707 Police Dispatching Services Tier 1 1,177,353 1,212,591 Police *Detention and Incarceration Services Tier 2 1,718,823 1,772,842 'Mutual Aid & Large Scale Incident (Response & Police Planning) Tier 2 96,676 86,534 Police *PD Budget/Finance Tier 2 139,589 142,397 Police *Police Management and Administration Tier 2 1,062,421 1,065,335 Police 'Recruiting & Hiring Tier 2 114,577 118,172 Police Civil Disturbance Unit Tier 2 56,711 58,795 Police Community Policing Team Tier 2 1,154,087 1,186,965 Police Contracted Off -Duty Security Tier 2 174,956 174,956 Critical Incidents and SWAT (SWAT & Police Negotiations) Tier 2 216,454 225,027 'Denotes a program mandated at the federal or state level 455 54 2019 - 2020 Biennial Budget City of Tukwila, Washington 2019 Budget 2020 Budget Department , Program Tier Allocation Allocation Police Narcotics & Street Crimes Team JAC) Tier 2 829,229 846,637 Police Police Camera Program (Vehicle & Body Wom) Tier 2 51,000 51,000 Police Professional Standards and Department Policy Tier 2 209,565 212,755 Police Public and Community Relations Tier 2 192,528 197,157 Police School Resource Officer Tier 2 287,628 298,293 Police VNET (Valley Narcotics Enforcement Team) Tier 2 132,071 136,752 Police *PD Quartermaster Tier 3 90,000 90,000 Police Animal Control Tier 3 125,000 131,250 Police Auto Theft Task Force Tier 3 141,638 145,318 Police Police K9 Program (Sniffing & Tracking) Tier 3 161,240 163,863 Police Traffic Safety Cameras Tier 3 36,169 37,118 Police PD Fitness Initiative Tier 4 13,000 13,000 Public Works *Permits Tier 1 567,132 582,705 Public Works *Emergency Preparedness and Response Tier 2 27,120 28,471 Public Works CIP/Budget Administration Tier 2 565,248 582,106 Public Works Cleaning Park Restrooms Tier 2 50,469 52,119 Public Works Code Enforcement/Police Bldg Support Tier 2 15,426 16,450 Public Works General PW Administration Tier 2 213,497 222,369 Public Works PW Contracts/Claims/ln\oices Tier 319,406 329,143 Public Works Regional Partnerships Tier 102,136 106,522 Public Works TCC Rental Setup/Breakdown/Damage Tier 2 82,009 84,977 Public Works City Clerk Record Center Tier 3 100,000 100,000 Public Works Facility Improvements Tier 3 515,310 526,479 Public Works Tukwila Works Tier 3 110,717 115,140 Public Works Utilities/Alarm/Insurance/PMs Tier 660,190 641,266 Public Works Council Chamber Setup Tier 4 27,748 28,750 Public Works Facility Cleaning/Custodians Tiier4 592,203 611,361 Recreation Administration Tier 2 470,796 458,804 Recreation Facility Rentals Tier 232,170 236,662 Recreation Organizational Support & De\elopment Tier 2 184,855 189,244 Recreation Boards & Commissions Tier 3 17,213 17,651 Recreation Events Tier 3 273,816 280,015 Recreation Green Tukwila Tier 3 33,357 34,300 Recreation Planning & Development Tier 3 148,074 151,788 Recreation Preschool Tier 3 104,444 106,547 Recreation Senior Services & Programs Tier 3 229,766 234,719 Recreation Strategic Support Tier 3 247,619 253,379 Recreation Teen Tier 217,904 221,884 Recreation Volunteer Services Tier 3 55,835 57,143 Recreation Wellness & Enrichment Tier 3 270,156 274,908 Recreation Youth Tier 427,195 429,882 Recreation Youth Free Services Tier 3 86,433 87,662 Recreation Front Desk Tier 4 217,004 220,761 Street Maintenance *Traffic Control Deices Tier 2 293,981 302,539 Street Maintenance Minor Structural Repair Tier 2 47,163 47,553 Street Maintenance Sidewalks Tier 2 46,652 48,437 Street Maintenance Snow & Ice Control Tier 2 78,787 80,885 Street Maintenance Street Cleaning Tier 2 203,505 209,060 Street Maintenance Street Lighting Tier 2 104,944 107,388 Street Maintenance Transportation Tier 2 241,954 247,946 Street Maintenance Video & Fiber Tier 2 61,184 62,072 Street Maintenance Customer SeNce and Response Tier 3 149,422 153,939 Street Maintenance Road & Street Admin Tier 3 577,893 391,082 Street Maintenance Streets Administration Tier 3 46,601 47,797 Street Maintenance Streetscapes/Median landscaping Tier 3 132,437 136,752 Street Maintenance Tukwila Int'I Blvd Bus Stop/Streetscape Tier 3 195,212 197,263 Street Maintenance Utilities/Surface Water Tier 3 1,175,000 1,216,000 *Denotes a program mandated at the federal or state level 456 55 2019 - 2020 Biennial Budget City of Tukwila, Washington Department I Program Technology & Innovation Svcs 'Emergency Application Services Technology & Innovation Svcs Network Infrastructure Services Business Analysis: Integrations Support, Technology & Innovation Svcs Professional Services, Technical Consultation Technology & Innovation Svcs Business Application Services Technology & Innovation Svcs Business System Management and Support Technology & Innovation Svcs End -User Infrastructure Service Technology & Innovation Svcs GIS Services Technology & Innovation Svcs Justice Center - Public Safety Plan Technology & Innovation Svcs Mobility Services Technology & Innovation Svcs Research & Development: New Technologies Technology & Innovation Svcs Office 365 Training Technology & Innovation Svcs Service Desk Technology & Innovation Svcs Tier1/Tier 2 Helpdesk - Vitalyst Technology & Innovation Svcs Traffic Camera Server Infrastructure Technology & Innovation Svcs Training (T1S Professional Development) Technology & Innovation Svcs Transition to Cloud Technology & Innovation Svcs Vendor Management (Gartner contract) Technology & Innovation Svcs Office Equipment/Leases "Denotes a program mandated at the federal or state level Tier 2019 Budget 2020 Budget Allocation Allocation Tier 1 75,469 79,088 Tier 1 104,256 108,453 Tier 2 72,584 75,395 Tier 2 114,576 118,520 Tier 2 178,575 180,248 Tier 223,709 227,131 Tier 2 198,422 201,402 Tier 2 133,447 138,792 Tier 2 188,424 191,239 Tier 2 126,725 131,208 Tier 3 36,509 36,982 Tier 3 129,800 133,472 Tier 3 152,523 152,523 Tier 3 65,445 68,521 Tier 3 25,212 25,212 Tier 3 126,361 131,102 Tier 3 91,043 94,423 Tier 4 856 856 457 56 Cash is King Short -Term Strategies to Slow the Flow of Money Out the Door and Keep the Budget Balanced BY SHAYNE C. KAVANAGH AND JOSEPH P. CASEY. PH.D. Eip Government Finance Officers Association www.gfoa.org/FFA 57 ABOUT THE AUTHORS Shayne C. Kavanagh is the Senior Manager of Research for GFOA, where he researches, writes, and consults on financial planning and risk analysis. Dr. Joseph P. Casey is the County Administrator for Chesterfield County, Virginia. ACKNOWLEDGMENTS GFOA would like to thank Jerry Newfarmer, President and CEO, and Andrew S. Belknap, Regional Vice President of Management Partners, for providing and reviewing content. We'd also like to thank the following people for reviewing the manuscript: Ann M. Carbone, Retired Director Administration and Finance, City of Boston, Public Works Len Brittain, Retired Executive Director, Corporate Finance, City of Toronto Pall Gudgeirsson, Retired City Manager, City of San Clemente Mike Mucha, Deputy Executive Director/Director of Research and Consulting GFOA The Government Finance Officers Association (GFOA) represents approximately 20,000 public finance officers throughout the United States and Canada. GFONs mission is to promote excellence in state and local government financial management. GFOA views its role as a resource, educator, facilitator, and advocate for both its members and the governments they serve and provides best practice guidance, leadership, professional development, resources and tools, networking opportunities, award programs, and advisory services. *%SCAL p/ hP �`rj. � o ��c0�FRY P�O`�hh 0 Table of Contents Reduce Personnel Costs..............................................................5 Short-term hiring freeze............................................................................5 Eliminate vacant positions...........................................................................5 Stretch professional development funds............................................................6 Share personnel.....................................................................................6 Reassess personnel equipment needs............................................................... 7 Allow voluntary part-time status....................................................................7 Rethink staffing ratios...............................................................................7 Make acceptable reductions in service levels........................................................8 Voluntary time off for employees................................................................... 8 Mandatory time off for employees.................................................................. 8 Look for opportunities to reduce employee benefit costs .......................................... 9 Reduce Capital Spending............................................................. 9 Reduce the scope of capital asset investments...................................................... 9 Defer certain capital asset purchases..............................................................10 Improve capital project management..............................................................10 Reduce Materials or Contractor Costs..............................................11 Reexamine maintenance and replacement standards..............................................11 Reduce paper costs................................................................................11 Saveenergy........................................................................................12 Eliminate low- or no -value tasks....................................................................12 Review software maintenance contracts...........................................................12 Rethinksubsidies...................................................................................13 Create More Advantageous Inflows and Outflows of Cash ........................13 Delay payments to vendors ........................................................................13 Look for areas of consistent surplus in prior budgets..............................................14 Get New Resources..................................................................14 Increase interfund charges where there is a case for it.............................................14 Reassess internal service fund and cost allocation formulas.......................................14 Redesignate general fund reserves.................................................................15 Consider monetizing assets........................................................................15 Implement new or revised fees where appropriate.................................................15 Cash is King I Fiscal First N 1 INTRODUCTION Cash is king during a financial crisis. Local governments need to make sure they have enough cash on hand for essential services. Thus, one of the first things local governments should do is slow the net flow of cash out the door and find ways to rebalance the budget. This could be done by reducing expenditures, delaying expenditures, or even finding new resources. There are many financial retrenchment techniques a government could use to get this done. However, a good retrenchment technique has the following characteristics: Short time -to -benefit. A positive yield occurs in a short period of time. Not complex. It is easy to understand the short-term r M Reduce Personnel Costs. This is the biggest areas of expense for most governments, so a serious retrenchment effort will have to address personnel costs. Reduce Capital Spending. Capital assets are often very costly, so even a modest reduction in spending could result in significant savings. benefits and long-term ramifications. It is also easy to explain to others. Reversible. It can be undone with reasonable effort. Since these retrenchment techniques are applied quickly and usually without much diagnosis ahead of time, they should be able to be reversed if needed. For example, a hiring freeze can be lifted. This paper presents a number of tried-and-true retrenchment techniques that can improve cash flow during difficult times and provide time and resources for governments to develop strategies to deal with the financial crisis. The techniques are divided into the following categories: Reduce Materials or Contractor Costs. Though not as significant as personnel or capital, many governments can find savings in existing contracts that may not be as painful to cut. Create More Advantageous Inflows and Outflows of Cash. These techniques won't balance your budget but can help better manage the incidence of expenditures and revenues J Get New Resources. Governments should also explore possibilities for new resources, even if those opportunities are limited. 2 6overnment Finance Officers Association INTRODUCTION Examine each technique to see if you can benefit from it. However, beware that many techniques have potential pitfalls. We have highlighted the most important pitfalls you should be aware of. This paper is part of GFOA's Fiscal First Aid: Recovering from Financial Distress program. The Fiscal First Aid program lays out a is -step process for recovering from financial distress. The techniques described in this paper fit in to the very first steps of the is -step recovery process. Therefore, the Fiscal First Aid process suggests a few points you should keep in mind while reading this paper. First, GFOA's Fiscal First Aid: Recovering from Financial Distress describes how you can form a team to help navigate a financial crisis. The team can help think through the best retrenchment strategies for your government, generate support for those strategies, communicate the right messages inside and outside the organization, and identify and mitigate the unintended consequences that are unavoidable when making sudden expenditure cuts. This is important because some techniques described in this paper will be more controversial than others. For example, some techniques will require changes in personnel practices, perhaps even reductions in compensation. You may need to start discussions with labor groups and others to successfully put these techniques in place. If you have a strong team with you, navigating these potentially treacherous waters will be considerably easier. You may also need to communicate what is happening to the press or other community influencers so that the public understands why potential changes to services may be necessary and see how strategies taken in the short term will make for a stronger and more financially sustainable organization in the long term. Second, Fiscal First Aid emphasizes the importance of leadership during the recovery process. A key element of leadership is treating people fairly. Research unequivocally shows that people react very poorly to being treated unfairly, perhaps even going so far as to sabotage or bring down the system that they feel treated them unfairly. Hence, the financial recovery team will need to think about how to apply the techniques in this paper as fairly as possible. A good place to start is by making a visible demonstration of the fact that the leadership is willing to endure the same austerity measures that other employees are being asked to endure. Fiscal First Aid emphasizes the importance of leadership during the recovery process, and a key element of leadership is treating people fairly. Cash is King I Fiscal First 61 3 TECHNIQUE 1 J Reduce Personnel Costs Personnel is the largest expenditure for most local governments, so limiting personnel expenditures will be a big opportunity to improve cash position. Short-term hiring freeze A short-term hiring freeze that lasts a few months or simply extends the time a position is vacant might provide some immediate financial relief. This kind of hiring freeze would not usually require formal proceedings such as governing board approval. A longer hiring freeze would require more careful analysis, including deciding what departments and functions are affected (e.g., will public safety positions be exempted?), calculating how overtime costs will be affected, and identifying potential risks to critical services. The leaders of the recovery process need to help everyone understand what exemptions there are to this policy and why (e.g., critical public safety functions). The leadership also needs to work with department managers to help them understand what will happen to the vacancy savings. To best support the financial recovery, savings should return to a centralized pool so they can be directed to where they are needed most. Potential Pitfall Q. Consider if the positions you are freezing are mission critical or if a lack of staffing could cause inefficiencies or lost revenue in excess of the cost of the position. For example, if positions are not filled otherwise normal events like an employee illness could create a critical gap in staffing. Eliminate vacant positions Positions that are not filled tie up budgetary resources that could be used for other needs. Assuming the position is not essential, eliminating vacant positions is a good way to reduce a local government's biggest expense (personnel) while avoiding layoffs of existing employees. An obvious example contemporary to the COVID-19 pandemic might be temporary summer recreation employees who would staff facilities or events that will now be unavailable. The recovery team could also look for less obvious possibilities by examining all vacant and, in particular, long-term vacant positions. Some departments use long-term vacancies for budget savings while others find it impossible to fill specialized positions. If it is not clear that a vacant position is safe to eliminate, it can be put on hold. As with savings from a hiring freeze, the recovery leadership should explain that all savings will return to a central budget. To ease the pain, the recovery leadership can promise to reconsider the eliminations after the situation has stabilized. Potential Pitfall Q Decide a fair and reasonable way to differentiate the essential from the unessential. You don't want to regret eliminating a position that turned out to be essential. Stretch professional development funds The COVID-19 pandemic has greatly limited or even eliminated travel for many local governments. However, even when travel becomes more feasible, training and travel will probably be one of the first things to be cut off during a retrenchment. Training sessions, though, are often where employees get new ideas on how to do their jobs better. Rather than cutting training completely, consider alternatives. For example, a cost -sharing arrangement with employees could reduce the budget for training without eliminating it and may lead employees to be more 4 62vernment Finance Officers Association REDUCE PERSONNEL COSTS selective about which training sessions they attend. You might also encourage more internet-based training, which will typically have a lower cost than in -person options. Memberships in professional associations are another form of development. Economize spending on membership in these groups by verifying that memberships are directly relevant to the duties of the employees involved and that the memberships are being actively used. You may also find that multiple employees have individual memberships for the same association when a collective membership is available. Professional development is often most highly valued by management and employees with highly technical jobs. The recovery leadership will need to make sure these employees understand the new policy and what avenues remain for professional development. Potential Pitfall Q By cutting off professional development, you might cut off a source of good ideas your organization needs to get through tough times. Be strategic in how you reduce professional development spending. Share personnel The COVID-19 situation will increase demand for service in some areas of local government and decrease demand in others. Also, employee illnesses may cause gaps in staffing. There maybe opportunities to share personnel across departments. Sharing personnel helps prevent layoffs by better distributing human resources to where they are most needed. There is often potential for sharing administrative support, for instance. You might also look to see where the organization is hiring contracted labor and see if in-house resources could be used instead (which might help prevent a layoff). For example, one small county found that many county employees (who were not employed in public safety) were working in volunteer firefighting and emergency medical service (EMS) capacities for the county on their off -time. The county found a way to temporarily reassign these employees to public safety to cover vacancies in fire and EMS. This allowed the county to retain necessary coverage levels for public safety services while avoiding layoffs in other departments. Shifting employees to help with emergency management tasks might be an opportune way to share personnel during the pandemic crisis. Potential Pitfalls Q Make sure personnel are qualified/trained to adequately assist in the area they are being shifted to. Q Some organized labor groups may oppose cross - training and/or job sharing. Make sure to bring organized labor into the discussion early if you'd like to pursue this technique. Reassess personnel equipment needs During times of higher revenues, personnel may have been assigned equipment that isn't completely essential to the job, and the government may now be willing to live with the lower level of service associated with eliminating that equipment, especially for nonessential functions. One small county reassessed the need for individual cell phones, uniforms, individual desktop printers, and take-home vehicles, saving almost $100,000 annually. This is also an opportunity to get creative. For example, one large city analyzed vehicle use by each department. The city instituted a car -sharing pool and took away underutilized vehicles. At the time, smaller departments in the city could not afford to maintain vehicles but were afraid to give up the vehicles they did have. The pool system gave all employees access to vehicles, while the fleet age has decreased and the city has saved money. Potential Pitfalls Q Many employees may view these pieces of equipment as "perks" that make their jobs easier. The recovery leadership must communicate clearly why this is being done. Q Some equipment might be mandated by labor agreements. Q This technique is an opportunity for the recovery leadership to lead by example by giving up nonessential equipment or special allowances. Failure to lead by example could hurt morale. Cash is King I Fiscal First 68 s REDUCE PERSONNEL COSTS Allow voluntary part-time status Letting employees volunteer to move to part-time status is a relatively noncontroversial way to save money on salary costs (and fringe benefits that are based on salary). In fact, some employees might welcome the opportunity to move to part-time status. However, managers should think about repercussions such as the new part-time workers' continued eligibility for fringe benefits, impact on pension calculations, or any effects on scheduling. Despite the risks, this can be considered a safe technique because it can be easily reversed. In fact, managers might want to make it clear that part-time status is provisional, with a defined sunset date for the initiative, or that it may need to be rescinded in emergency circumstances. This will allow managers to assess the effects and rescind the decision, if necessary, without adversely affecting morale. Potential Pitfall Q Make sure organized labor is involved if a change in the status of position to part time impacts labor agreements, etc. Rethink staffing ratios Fixed staffing ratios can potentially transform personnel from a variable to a fixed cost. See if staffing ratios can be reconsidered to provide more flexibility in how staff resources are used. For example, one small county identified more than $1.5 million in potential savings from changing ratios for sheriff personnel per capita, teachers to students, and firefighters per truck. While this technique may not lead to immediate savings by itself, it does form the basis for important discussions about staffing levels that could lead to significant savings later. Potential Pitfalls Q Beware of perceptions that local government is decreasing public safety. Be sure that any discussion of staffing ratios focuses on how to get the best results for the community via a more efficient deployment of available personnel resources. Be sure to communicate proactively to the press and other community influencers about what is happening. Q Check if staffing ratios are covered by a collective bargaining agreement. Make acceptable reductions in service levels You might be able to make reductions in service levels, especially for nonessential services. If decision -makers understand the depth of the financial challenge and that it may not be temporary, they are more likely to accept some reductions in services. Examples might include reducing hours open to the public or even eliminating some services that are recognized as "nice to have" but not essential. Potential Pitfalls Q The distinction between "nice to have" and "essential" is not always universally agreed upon. Hence, this retrenchment strategy could become more controversial than many of the others we have described. © Unlike the strategies described so far, this requires reductions in the compensation of existing employees to achieve meaningful savings. This could hurt morale, etc. Voluntary time off for employees During difficult economic times, voluntary time - off programs allow employees who no longer have available paid time off to be off work to tend to personal affairs while at the same time saving the jurisdiction money through salary and some benefit costs. This program could also be the precursor to a mandatory time -off program. Potential Pitfalls Q Essential work could suffer if the wrong employees take off too much time. Therefore, some limits must be set on who can participate and how much time they can take. Q Because the time off is voluntary, it will be hard to predict the amount of savings that will materialize. The recovery leadership must be willing to live with this uncertainty. Q If the voluntary program is seen by the leadership as a potential precursor to mandatory time off, be clear that this is the case. In other words, voluntary will be tried, but mandatory may need to be considered if insufficient savings develop. Q Make sure employees understand that voluntary time off is not compensated, which might impact benefits as well (e.g., pension benefits). 6 64vernment Finance Officers Association REDUCE PERSONNEL COSTS Mandatory time off for employees Otherwise known as an unpaid furlough program, a mandatory time -off program is one way to avoid layoffs while still generating considerable salary savings. A number of mandatory days off can be set to match the savings the local government needs to generate to keep its budget balanced. Rules governing time off will need to be established —how many employees can be out on a certain day, which employees need to be in to perform certain functions, etc. Employees need to know that this time off is not paid and is therefore not part of their paid time off. Also, the recovery leadership team should be clear about which projects or initiatives can be deferred in light of reduced work time. One large city even found that some employees enjoyed the mandatory time off as long as they weren't required to complete all the same job duties in the remaining work time. Potential Pitfalls A Unlike most strategies described so far, this requires mandatory reductions in the compensation of existing employees. This could hurt morale, etc. Q Such a program could require difficult concession bargaining with a labor organization or employee bargaining group. Look for opportunities to reduce employee benefit costs It may be possible to make changes to benefits that reduce personnel costs. As an example, moving to a cafeteria style of benefits, introducing co -pays on some benefits, or capping or eliminating some benefits maybe possible. Post -retirement benefits is another cost -saving opportunity. For example, one large city eliminated most post -retirement benefits for management staff, based on a fixed employment start date (i.e., tenured employees were grandfathered in). This did create some inequities in that someone who was originally hired one day before another employee kept their benefits while the other lost theirs. The move did produce ongoing and increasing savings. Potential Pitfalls Q Changing benefits during a plan year may not be possible. A Unlike most strategies described so far, this requires mandatory reductions in the compensation of existing employees. This could hurt morale, etc. A Such a program could require difficult concession bargaining with a labor organization or employee bargaining group. A Grandfathering strategies could cause compensation inequities, which hurt the work environment. •♦ � A number of ,ir mandatory days off can be set to match the savings the local government needs to generate to keep its budget balanced. Cash is King I Fiscal First &) 7 TECHNIQUE 2 0:6W Reduce Capital Spending It is common for local governments to defer or cancel capital spending during tough financial benefits. Look for real opportunities to trim purely times. However, it may not be possible or "nice -to -have" features. advisable to cancel all capital spending, as some spending is indispensable. That said, capital assets are high -cost items, so even a modest reduction in capital spending could be a significant amount of money. Reduce the scope of capital asset investments A common response to fiscal distress is to defer or eliminate capital project spending, but jurisdictions need to make sure they aren't hurting themselves in the long term. For instance, a jurisdiction might have to rely on obsolete and potentially unsafe assets if it fails to invest in new ones, or new assets might be needed to preserve the economic vitality of the community. Further, investment in new infrastructure, equipment, software, or other capital could improve efficiencies and reduce operating costs. However, it might be possible to make a quick and low - risk decision to simply scale back on the asset purchase by reducing the amount purchased or by foregoing premium features. One small county found that it could save $100,000 by reducing the scope of a project to upgrade its communication system. The county reduced the number of radio channels the system accommodated and the total number of radio towers by three (thereby accepting a lower level of coverage). The new communication system was still an improvement over the old one, but the county avoided the cost associated with premium features. Retaining the three radio towers would have improved radio coverage to 97% from 95%, but county officials decided it wasn't worth the added cost. Potential Pitfall Q Beware of a "penny-wise, pound-foolish" decision of cutting back features with significant long-term Defer certain capital asset purchases Some capital assets are safer to defer than others. Capital assets that provide a brand new service; have significant, ongoing operating and maintenance costs; and don't have a critical public health or safety function might be prime candidates for deferral. It may not be wise to defer assets that replace an existing asset, reduce ongoing costs, and/or serve a critical public safety or health function. The recovery leadership should examine the capital improvement plan to look for the best opportunities to defer. To make painful decisions easier to accept, the recovery leadership might point out that the government may have an opportunity in the future to issue debt at lower interest rates and ultimately build just as much, if not more, infrastructure than originally planned. Potential Pitfall IQ Deferring investments that reduce long-term costs will be counterproductive. Improve capital project management Improving capital project management and monitoring techniques can provide some near -term benefits. For example, it is not uncommon for the start of a project with approved budget authority to be delayed. Aggressive monitoring of these situations and cancellation of projects that aren't moving forward can free up funds for other uses. Project schedules may also be overly optimistic about how quickly a project will proceed, thereby routinely overestimating the rate at which project funding would be drawn upon. For example, this could result in premature allocations for pay-as-you-go financing projects, thereby tying up scarce funding needlessly. 8 6overnment Finance Officers Association TECHNIQUE 3 �$ Reduce Materials or Contractor Costs Materials and contractors are typically not as large a part of the budget as personnel or capital projects, but every bit counts in a financial crisis. Reexamine maintenance and replacement standards The organization's maintenance standards might have been established years ago when products were not as durable as they are today. For example, one small county identified the potential to save $200,000 per year by changing the standard for servicing buses from 30 to 45 days —a change that was acceptable because engines and buses are built much better now than they were when the standards were originally developed. In other cases, the organization might simply be willing to live with a lower standard of maintenance. The county government also found an opportunity to save more than $100,000 a year by reducing standards for internal mail delivery, grounds maintenance, painting, and custodial services. The county also identified $350,000 in one-time savings that could be achieved by accepting higher mileage and years of service on ambulances and fire trucks before they have to be replaced. To use this technique effectively, the recovery leadership must identify real opportunities for savings like those previously described. Just pushing legitimately pressing needs into the future may only increase long-term costs, ultimately making full recovery longer and more difficult. Potential Pitfall Q Make sure you understand the long-term increases in cost and risk that you may incur by reducing maintenance or replacement standards. For example, if an asset is maintained to a lower standard, it might be more likely to experience a critical failure sooner. Reduce paper costs Not only could reducing the use of paper eliminate costs, but it could also help governments adapt better to conditions where personal contact is limited, remote work is more prevalent, etc. Using electronic documents can reduce printing and material costs in several ways. For example, one small city purchased about $7,000 worth of Wads for its city council and expects to save more than $30,000 on printing costs as a result. Simply posting reports on the internet instead of printing them could also save money. A small county plans to save 10% on its printing costs this way. You can also stop buying paper products such as calendars and day planners that are replicated in office productivity software such as Microsoft Outlook. Modern office productivity software packages have graphic capabilities that reduce or eliminate the need for preprinted stationery and letterhead. Another option is to remove desktop printers to discourage printing and provide paperless options as a substitute. There are many other possibilities to eliminate paper in the year 2020, like electronic signatures, fillable forms in Adobe Acrobat, and more. OFOA has best practices for electronic payments, electronic signatures, and encourages using features available in modern financial systems to cut back on unnecessary processing of paper. Potential Pitfall , TS Though there may be concern that paperless processes are more vulnerable to cybercrime and those concerns are legitimate, remember that paper -based processes are also vulnerable to fraud and perhaps even more vulnerable to internal fraud than their paperless counterparts. Make a clear-eyed assessment of the risks involved and proceed accordingly. Cash is King I Fiscal First 6cp 9 REDUCE MATERIALS OR CONTRACTOR COSTS Save energy Energy efficiencies are a great way to save money, especially for facilities that may now be underutilized. This could include changing turn- off schedules and initiating tighter temperature controls for buildings. This applies to vehicles too, like keeping fleet tires properly inflated and better managing routes and fuel. Eliminate low- or no -value tasks Quality guru W. Edward Deming taught that most business processes contain up to 95% waste. A financial challenge may provide impetus to eliminate tasks that provide little or no value to the customer but have remained in place regardless. Give managers permission to identify and eliminate this kind of work. One small county identified such tasks. Eliminating some of them generated substantial savings. For example, the county found that it was placing notices of public hearings, job openings, and other advertisements in multiple area newspapers. This was an expensive and unnecessary approach (state law requires advertising in only one paper). Consolidating ads resulted in project savings of $20,000 a year. In the assessor's office, tax assessors would traditionally visit properties to reassess them (a time-consuming task). The assessor's office identified the potential for $150,000 in annual savings by eliminating the visit and, instead, using satellite photos to conduct routine reassessments. The assessor uses the photos to verify that nothing has changed from what was expected at the property. Many such opportunities doubtlessly exist in your government. A classic opportunity for finance offices is eliminating reports that people don't read. Stop producing reports you suspect people aren't reading. If no one notices, that report may not be valuable. Potential Pitfalls Q Be careful to consider organization -wide impacts of eliminating tasks. What might be a no -value task to one department might have a lot of value to another. Q The mantra of "we've always done it that way" can be an impediment to changing work processes. However, we are in extraordinary times, and extraordinary times can shake people out of old habits. Q For a variety of reasons, it will be difficult to reduce personnel costs through the elimination of low- and no -value tasks, especially in the short term. As our examples above implied, most times savings will come on materials and contracts or in giving staff more time to spend on more time to address higher -value work. Therefore, be careful not to overestimate the available cash savings from eliminating low- or no -value work. Review software maintenance contracts Many local governments own software licenses to hundreds of different products, many of which require annual maintenance and support costs —entitling the government to help desk support and new versions of the software. However, for many governments, upgrading to a new version during a fiscal crisis is not a viable option. Also, for a product nearing the end of its life, a complete replacement would be more likely than an upgrade. In either case, the government can stop paying maintenance and support, or it can hire a third party that supports the system at a lower price and continue to use the licensed software. Additionally, for products that are well established or do not support critical functions, having the availability of support/ upgrade resources may not be necessary or worth the cost. In addition, with annual price escalation, many governments are surprised to learn that the annual cost of maintenance has grown substantially since the software was first purchased and, in some cases, might even be more expensive than the license cost to purchase new software. 1068overnment Finance Officers Association REDUCE MATERIALS OR CONTRACTOR COSTS Potential Pitfalls Q Ending maintenance and support will start the government on the path to software replacement. Many vendors do not allow a government to start maintenance and support again without paying penalties. Q This approach only works if the government owns a perpetual license to the software and annual fees are not required to maintain that license. Rethink subsidies Your jurisdiction might have given subsidies to internal programs, outside agencies, or constituencies that could be reviewed for continued relevance and affordability. For example, tax exemptions may reduce revenue yields while only benefiting a narrow segment of the community. Local government may also have institutionalized financial support for good ideas that came from advocacy groups or elected officials who are no longer in office, but these programs may be ancillary to providing essential core services. While reducing these subsidies right away might be politically challenging, you can begin by cataloging subsidies as a starting point for discussion of their continued feasibility. Also, consider if it is viable to transform certain tax/ Quality g u r u t fee exemptions into an equivalent grant. Though W. Edward this will be cost neutral on its own, the equivalent grant can make the subsidization more explicit and Deming taught lead to valuable questioning if it is an appropriate that most use of public money. business processes contain up to 95 % waste. Cash is King I Fiscal First A6911 TECHNIQUE 4 Create More Advantageous $ Inflows and Outflows of Cash Delay payments to vendors The recovery leadership team can work with The payment terms a vendor sets usually stipulate the maximum length of time the government has to make a payment. Though delaying payment to the maximum allowable length won't reduce costs, it may help achieve a more favorable balance between cash inflows and outflows. Potential Pitfalls ZTS If a vendor offers early payment discounts, you may give up more than you gain by delaying payment. Delaying payments to a vendor may cause a strain in the relationship between a vendor and government. For vendors providing essential services, or for vendors that the county may be relying on due to limited suppliers in the market, the government may not want to risk ruining its relationship. In difficult times, vendors are often in a similar situation. Delaying payment may cause hardship with the vendor in terms of their ability to meet obligations to employees or suppliers. Look for areas of consistent surplus in prior budgets Look for budget line items that have consistently been underspent in prior years. It could be that excess resources have been allocated in this year's budget that could be used for more pressing needs. For example, one large county found that the county clerk's election budget had large surpluses three out of every four years. It turned out that the clerk was budgeting the full cost of a presidential election every year as a placeholder for when the actual election occurred. This technique won't reduce costs, but the local government will not need to wait until the end of the year to realize the surplus. departments to examine budget versus actual spending over the last three to five years to look for areas of consistent underspending. It is important to note that, in many cases, this overbudgeting is a method of risk management for departments: the excess budget can be used for unexpected costs. However, this cushion can add up across all departments. If the leadership team can provide assurances that a centralized pool of money will provide a safety net, then departments may be more willing to "pool" their risk and, thereby, generate substantial savings. Potential Pitfall Q The department that set the budget might have had legitimate reasons for its initial budget estimate. The recovery leadership should find a way to satisfy that concern while also solving the misallocation of resources. For example, the county found another way to give the clerk confidence that the cost of a presidential election would be covered when the time came. 'lllj� Look for budget line items that have consistently been underspent in prior years. 1270overnment Finance Officers Association PTECHNIQUE 5 Get New Resources Increase interfund charges where there is a case for it Interfund charges can sometimes become outdated. There may be obvious and widely agreed -upon opportunities to update these charges to help the funds that are experiencing distress. This is a technique where the public manager must exercise discretion. A clear and compelling case for updating or adding a charge exists in some cases. In others, the matter may require further study and discussion, lest the charge degenerate into cross -fund subsidization. Potential Pitfalls Q Interfund charges could devolve into cross -fund subsidization if not rigorously justified. Q Make sure higher interfund charges don't create new problems in other funds. This strategy only makes sense if the fund that will pay more can afford to do so. Reassess internal service fund and cost allocation formulas Internal cost allocations charge frontline programs for services provided by support programs. The revenue from these charges are often accounted for in an internal service fund. Fleet, information technology, and workers' compensation are often managed in this way, for example. Check to make sure these charges have not become excessive. For example, if an internal service fund has a very large fund balance, it could be that charge rates are high. If the internal service charge rates have gotten high, consider reducing or deferring charges, at least on an interim basis. Potential Pitfall Q If rates are reduced too much, the internal service fund will suffer, thus creating new problems for your government. Redesignate general fund reserves You may have designated some portion of your general fund for special projects or other purposes that are not as important now. For example, perhaps some reserves have been set aside for special projects and the need for those projects is now less compelling. Local jurisdictions might consider reassessing these designations and redesignating those funds to help bridge the financial gap and balance the budget. Potential Pitfalls Q Redesignating general fund reserves is a one-time strategy and is not sustainable. Q The projects that the reserves were intended to fund will be deferred. Consider monetizing assets Government may have valuable assets that can be transformed into ongoing revenue streams. For example, some local governments have explored the potential of underutilized real estate owned by the local government. In some cases, the property might be located in commercially attractive areas but being used for government activities that could be performed on less valuable property (e.g., some kinds of offices, storage, etc.). That said, there are some assets that could be monetized but where careful deliberation and study is important, lest the government make an unwise and irreversible decision. Monetizing these assets could still be part of the recovery strategy but should not be seen as an immediate retrenchment technique. Potential Pitfalls Q Beware of selling unused property into a soft market. Consider if a temporary lease to a private party could bring in some revenue in the short term, without losing an asset that may be more valuable in the longterm. Cash is King I Fiscal First A`iJ 13 GET NEW RESOURCES AA. Don't rush into monetizing public assets where the valuation is complex and the government, as the seller, finds itself in a buyer's market. Implement new or revised fees where appropriate Over time, the government might have come to provide many services that, while small and seemingly innocuous on their own, add up to real money. It may be appropriate to start charging a fee for these services, especially if the beneficiary of the service is distinguishable. For instance, one small county identified the potential for $50,000 in new revenue for its animal control service by starting a licensing tag program for cats. The county found that it was spending just as much, if not more, on animal control for cats, thereby justifying the fee. Again, public managers will need to use discretion to determine where a fee can be implemented right away and where more study will be required or where a new fee simply may not be appropriate. For example, some fees might be counterproductive to the goals of public service. For instance, fees for using emergency medical services are often controversial because the /F%SCAL po �? R`rA � 90 0"FRY PRa/ service is not elective and is assessed when people are at their most vulnerable. Many local governments have reduced or discontinued fees and fines associated with justice services, recognizing that the fees often entail excessive collection costs and significantly impede people's ability to effectively interact with the justice and courts system. In addition, all governments must be aware that maintaining public trust is vital. By adding fees that are not viewed as appropriate, the government can appear greedy or opportunistic during a time when the rest of the economy and community are suffering. The best opportunity for this strategy in a financial crisis might be to make sure full cost is being charged for elective services. For example, building permit services benefit the property holder almost exclusively, and there is little reason for the rest of the community to subsidize it. Pitfall to Avoid Q Fees that are regarded as unfair, unwarranted, or have unintended consequences might actually hurt the local government and community well- being in the long run. For more information about GFOA's Fiscal First Aid program, visit www.gfoa.org/FFA 1472overnment Finance Officers Association Government Finance Officers Association © 2020 Government Finance Officers Association 203 N. LaSalle Street, Suite 2700, Chicago, IL 60601 312-977-9700 1 www.gfoa.org 73 74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE MAYOR, CITY ADMINISTRATOR, OR DESIGNEE TO IMPLEMENT VARIOUS COST -SAVING MEASURES TO ADDRESS REVENUE SHORTFALLS DUE TOTHE COVID-19 PANDEMIC. WHEREAS, the outbreak of the novel coronavirus (COVID-19) and its rapid progression in Washington state and throughoutthe United States continues to threaten the life and health of people, as well as the economy; and WHEREAS, on January31, 2020, United States Health and Human Services Secretary Alex Azar declared a public emergency for COVID-19, beginning January 27, 2020; and WHEREAS, on February 29, 2020, Governor Jay Inslee proclaimed a State of Emergency in Washington state due to COVID-19; and WHEREAS, on March 1, 2020, King County Executive Dow Constantine signed a proclamation of emergency due to the number of confirmed cases of COVID-19 in King County; and WHEREAS, on March 9, 2020, Tu kwila MayorAllan Ekberg signed Proclamation 2020- 03-09, declaring a public emergencywithin the City of Tukwila due to COVID-19; and WHEREAS, on March 13, 2020, the Presidentof the United States declared a national emergency due to the COVID-19 pandemic; and WHEREAS,on March 16,2020,the Tukwila City Council approved a motion toendorse Proclamation 2020-03-09, declaring a public emergency within the City of Tukwila due to COVID-19; and WHEREAS, the COVID-19 pandemic has resulted in an initial budget shortfall (March through May 2020) of $6.1 million that has been addressed with significant, one-time, non - personnel -related departmental budget cuts, and based on current economic indicators, the City expects to experience an additional budget shortfall in 2020 of approximately $6 million for a total revenue shortfall in 2020 of approximately $12 million; moreover, in 2021, W: Legislative Development\COVID-19costsavingsauthodzation 5-5-20 KZS:bjs Review and analysis by Barbara Saxton Page 1 of 3 75 continued expenditure reductions are needed to address an ongoing loss of revenue projected at $6 million; and WHEREAS, nearly 70% of the City's expenses apply to personnel costs, and these significant, projected budgetshortfalls in the amountof fu nding needed to sustain the current level of general operations through 2020 require more extreme, sustained cost -saving measures to achieve ongoing personnel cost savings to address the projected budget shortfalls, including such measures as the implementation of voluntary retirements and separations; reductions in force through attrition, voluntary or involuntary unpaid furloughs, layoffs; and/or pay reductions, or some combination thereof, in 2020 for represented and non -represented employees; and WHEREAS, consistentwith WAC 296-128-533, deductions from the salary of a public employee for absences where authorized by law due to a budget -required leave of absence will not disqualify the public employee from being paid on a "salary basis" except in the workweek in which the absence occurs and for which the public employee's pay is accordingly reduced; and WHEREAS, in order to achieve long-term budget savings, the Mayor, City Administrator, or designee, shall be authorized in collaboration with the City Council to implement various cost -saving measures as more specifically described in Section 1 of this resolution, including butnotlimited to such measuresas implementing voluntary retirements and separations; reductions in force through attrition, voluntary or involuntary unpaid furlough days, layoffs; and salary reductions for designated non -represented employees, and/or reductions in operating and office hours, closure of offices or departments or reductions in levels of operations or services, or some combination thereof as needed; further, the Mayor, City Administrator, or designee, shall continue to collaborate and communicate with the Council as to what actions will be taken based on collective bargaining negotiations currently underway with the City's labor union partners and shall report backto the Councilon the effectiveness of these various cost -saving measuresfor the remainderof calendar year 2020; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Implementation of Cost -Savings Measures Authorized. To achieve budgetsavings, the Mayor, CityAdmin istrator, or designee shall be authorized to implement one or more of the following cost -saving measures through December 31, 2020: (A) voluntary retirements and separations; (B) reductions in force through attrition; (C) furloughs; (D) layoffs; (E) pay reductions; and/ or (F) reductions in operating and office hours, closure of offices or departments or reductions in levels of operations or services, as needed. The Mayor, City Administrator, or designee shall continue to collaborate and communicate with the Council as to what actions will be taken based on collective bargaining negotiations currently underway with the City's labor union partners and shall report back to the Council on the effectiveness of these various cost -saving measuresfor the remainderof calendar year 2020. W: Legislative Development\COVID-19costsavings authorization 5-5-20 KZS:bjs Review and analysis by Barbara Saxton Page 2 of 3 76 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2020. ATTEST/AUTHENTICATED: ChristyO'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney De'Sean Quinn, Council President Filed with the City Clerk: Passed by th e City Cou n ci I: Resolution Number: W: Legislative Development\COVID-19costsavings authorization 5-5-20 KZS:bjs Review and analysis by Barbara Saxton Page 3of3 77 m A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PROVIDING FOR A TEMPORARY PAY REDUCTION OF NON -REPRESENTED EMPLOYEES TO ASSIST WITH ADDRESSING THE BUDGET SHORTFALL ASSOCIATED WITH THE CORONAVIRUS PANDEMIC, EFFECTIVE JUNE 1, 2020. WHEREAS, the City has projected a budget revenue shortfall in the General Fund of $12 million in 2020 due to lost tax revenues resulting from the coronavirus pandemic and the subsequent State -mandated "Stay Home — Stay Healthy" order; and WHEREAS, the City is taking phased steps to address the financial impact of the pandemic, which includes impacts to personnel; and WHEREAS, to assist with addressing the projected budget revenue shortfall of $12 million in 2020 due to lost tax revenues associated with the coronavirus pandemic, it is necessary to reduce the pay of non -represented employees 10% for the remainder of 2020; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Temporary Pay Reduction Plan for Non -Represented Employees. A. Non -represented employees in the following positions will have a reduction in base pay equal to 10% effective June 1, 2020 through December 31, 2020: • City Administrator • Deputy City Administrator • Public Works Director • Police Chief • Fire Chief • Parks & Recreation Director • Technology Services Director • Finance Director • DCD Director • Human Resources Director • Economic Development Administrator • Municipal Court Administrator W:\Legislative Development\Non-rep pay reduction due to COVID-19 5-6-20 JCP:bjs Review and analysis by Barbara Saxton Page 1 of 2 79 B. All non -represented employees not listed in subsection A will have a reduction in pay equal to 10% through means of either working the equivalent of a paid 36-hour work week (FLSA-Exempt) for each pay period between June 1, 2020 and December 31, 2020, or taking the equivalent of 14 furlough days (FLSA-Nonexempt) effective June 1, 2020 through December 31, 2020. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2020. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney De'Sean Quinn, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: W:\Legislative Development\Non-rep pay reduction due to COVID-19 5-6-20 JCP:bjs Review and analysis by Barbara Saxton 0 Page 2 of 2 UPCOMING MEETINGS AND EVENTS MAY 2020 Due to COVID-19, meetings are not being held onsite; telephone access is available to the public MAY 11 MONDAY MAY 12 TUESDAY MAY 13 WEDNESDAY MAY 14 THURSDAY MAY 15 FRIDAY MAY 16 SATURDAY ➢ Community Services & ➢Park-CemrHissien ➢ communk - GREC Safety Committee Cancelled 9riented-P01icing . K W I LA 5:30 PM CitizensAdviseTU Remote meeting Beard Duwamish Hill Preserve Cancelled Work Party ➢ Finance Cancelled Committee 5:30 PM Remote meeting ➢ City Council Committee of the Whole Meeting 7:00 PM Remote meeting Special Meeting to follow Committee of the Whole MAY 18 MONDAY MAY19 TUESDAY MAY20 WEDNESDAY MAY21 THURSDAY MAY 22 FRIDAY MAY 23 SATURDAY ➢ Transportation & Infrastructure Committee 5:30 PM Remote meeting ➢ Planning & Economic Development Committee 5:30 PM Remote meeting ➢ City Council Regular Meeting 7:00 PM Remote meeting COVID-19 FINANCIAL RESOURCES FOR WORKERS AND BUSINESSES The City of Tukwila has compiled a range of information being developed by various agencies and governments that may be helpful to community members on the City website. Check back on this resource page frequently for updates as new information becomes available. For more information, visit tukwilawa.gov/departments/administrativeservices/covid-19-financial-resources-for-workersand-businesses. FREE MEALS DELIVERED TO SENIORS If you are 60+ years of age and live in Tukwila, you can get up to 7 frozen meals a week. Halal meals are available. This service is provided during the COVID-19 shutdown by Tukwila Parks and Recreation and King County Veterans Seniors and Human Services Levy. Staff will contact you on Monday or Tuesday to take orders for Wednesday delivery. Email ParksRec@TukwilaWa.gov or call 206-767-2321 and leave your name and phone number. DRIVE THRU PICK-UP - 3118 S 140th St Regular pantry hours are 12:30 PM — 2:30 PM (Tue, Thu and Sat). Tukwila Pantry is in need of shopping bags. ats�r"�R sz VOLUNTEERS — In need of volunteers Wednesday, Friday and Saturday mornings at 9 AM to prepare 500+ bags of food and clean up. ® DONORS — Please donate at TukwilaPantry.org. Still Waters SnackPack needs your donations and volunteer help! SnackPack is serving food on Fridays in conjunction with Tukwila School District's distribution of breakfast/lunch onsite at participating schools. Due to the loss of 2 major in -kind donors, food expenditures have nearly doubled. Please donate to feed our Tukwila kids. For more information, call 206-717-4709 or visit tuksnackpack.com. Checks can be mailed to Still Waters, PO Box 88576, Tukwila WA 98138. CHILI FREE CHILD CARE FOR ONLY ESSENTIAL WORKERS — MUST PROVIDE WORKER ID OR SIMILAR PROOF OF EMPLOYMENT To access other FREE emergency child care slots, call the Child Care Aware of WA Family Center at 1-800-446-1114 and complete an intake with Family Center staff. After intake, a resources specialist will work to match you with an eligible child care priovider that meets your 1-0 family needs. King County and its partners are working quickly, and hope to have child care available by mid -April. For more information, visit publichealthinsider.com/2020/04/12/emergency-childcare-for-first-responders-essential-workers/ FREE TAX FILING TAX DEADLINE EXTENDED TO JULY 15 Visit MyFreeTaxes.com where you can quickly and easily file your taxes online for FREE with a simple return. All United States tax filers with PREPARATION simple returns are eligible. You can prepare and file your taxes using the FREE fellable forms with IRS. You must know how to do your taxes yourself. For more information, visit i rs. gov/fii I i ng/free-fi le-d o-you r-federa I -taxes -for -free. COMPLETE YOUR ONLINE SUBMISSION! The count is mandated by the Constitution and conducted by the U.S. Census Bureau, a nonpartisan government agency. The 2020 Census counts the population in all 50 states, the District of Columbia, and five U.S. territories (Puerto Rico, American Samoa, the Commonwealth of the Northern 1 Mariana Islands, Guam, and the U.S. Virgin Islands). Each home will receive an invitation to respond to a short questionnaire —online, by phone, or by mail. There are 59languages available for online submission. Espanol 133t(i.10) Tle-r Viet -- o{ Pyccl(Hw Tagalog Polski Frangais KreyblAyisyen Portugu6s El* i} Visit my202Ocensus.gov/ to take the 10 minute questionnaire. It's safe, secure, and confidential. Your information and privacy are protected. Your response helps to direct billions of dollars in federal funds to local communities for schools, roads and other public services. Tentative Agenda Schedule MONTH MEETING 1 — MEETING 2 — MEETING 3 — MEETING 4 — REGULAR C.O.W. REGULAR C.O.W. May 4 11 18 25 See this week's agenda Consent Agenda packet cover sheet for the Authorize the Mayor to sign NO COUNCIL OR COMMITTEE agenda: Sign an application for MEETING SCHEDULED Community Development Block May 11, 2020 Grant (CDBG) funds for the Committee of the Whole 2021 Minor Home Repair Meeting to be followed by a Program, in the amount of MEMORIAL+ Special Meeting. $110,000. Unfinished Business Update on House Bill 1406 regarding revenue spending. COVID-19 weekly update. Financial impacts from COVID-19: (1) A resolution authorizing the Mayor, City Administrator, or designee to implement various cost -saving measures to address revenue shortfalls due to the COVID-19 pandemic. (2) A resolution providing for a temporary pay reduction for Non - Represented employees to assist with addressing the budget shortfall associated with the COVID-19 pandemic effective June 1, 2020. MONTH MEETING 1 — MEETING 2 — MEETING 3 — MEETING 4 - I REGULAR C.O.W. REGULAR C.O.W. June 1 8 15 22 Unfinished Business Special Issues Unfinished Business Public Hearing COVID-19 weekly update. COVID-19: A resolution COVID-19: A resolution A resolution for 2021-2026 amending rental housing amending rental housing Six -Year Transportation program fee schedule to program fee schedule to waive Improvement Program. waive 2020 late fees. 2020 late fees. An ordinance renewing a An update on the City's moratorium on Certain Auto - Permit Process. Oriented and Lodging Uses in the Tukwila International Boulevard Study Area. Special Issues A resolution for the 2021- 2026 Six -Year Transportation Improvement Program. An ordinance renewing a moratorium on Certain Auto - Oriented and Lodging Uses in the Tukwila International Boulevard Study Area. A contract for the school zone in the amount of $68,400 annually. 2019 Year -End Financial Report. C.O.W. Meeting to be followed by a Special Meeting. MN