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Home My WebLink AboutCOW 2020-06-08 Item 3E - COVID-19 - March 2020 and Coronavirus Impact ReportCOUNCIL AGENDA SYNOPSIS ----------------------------------Initials Meeting Date P rep ared b_y Mayor's review Council review 06/08/20 Vicky ITEM INFORMATION ITEMIVO. 3.E. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 06/08/20 AGENDA ITEM TITLE March Financial Update including COVID related data CATEGORY ® Discussion Mtg Date 6/8/20 ❑ Motion Mt Date ❑ Resolution Aft Date ❑ Ordinance Aft Date ❑ Bid Award g Date Aft ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&R ❑Police ❑PIV ❑Court SPONSOR'S General fund financial update including report out on COVID specific financial impacts as SUMMARY required in Resolution No. 1987 REVIEWED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ® Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 6/8/20 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 06/08/20 MTG. DATE ATTACHMENTS 06/08/20 Informational Memorandum dated 06/08/20 57 w City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Jeff Friend, Fiscal Manager CC: Mayor Ekberg DATE: June 8, 2020 SUBJECT: March 2020 Departmental Budget-to-Actuals and COVID-19 Impact Report Summary The purpose of the March 2020 General Fund Financial Report is to summarize for the City Council the general state of departmental expenditures and to highlight significant items. The following provides a high-level summary of the departmental financial performance. The March 2020 Report is based on financial data available as of May 22, 2020, for the period ending March 31, 2020. The allocated budget is calculated to reflect monthly revenue patterns based on prior year activity. Additional details can be found within the attached financial report. The report also includes information specific to COVID-19 and will be updated twice a month, as outlined in Resolution No. 1987 Section 2 Report Required. Revenues The chart on the next page reflects general fund revenue on a monthly basis. The green bar reflects the adopted budget as amended on December 2, 2019, the blue bar indicates the revised budget reflecting projected reductions due to COVID-19, and the orange bar indicates actuals each month through March. General Fund revenue through March 31 st was $13.2 million. The lower than expected actuals in January is mainly due to timing differences in business license renewal. Business license revenue was higher than projected in January and February due to a timing difference resulting in transitioning to the State. Busines license revenue that was anticipated in December 2019 was received in January of this year. March is the first month that the City experienced revenue loss due to the pandemic. Per the chart graph below, actual revenue in March is right in line with expectations. It should also be noted that the revised budget (COVID-19) is higher in June than the adopted budget in anticipation of property owners taking advantage of the ability to delay property tax payments by one month. 59 INFORMATIONAL MEMO Page 2 $12 s n P 10 $8 $6 $4 $2 $0 GENERAL FUND REVENUES N Adopted Budget Revised Budget (Covid-19) Actual JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Expenditures General Fund expenditures totaled $16.0 million through March, which is $431 thousand less than the revised allocated budget of $16.4 million adjusted for the impacts of the COVID-19 pandemic. $14 PS12 $10 $8 $6 $4 $2 $0 GENERAL FUND EXPENDITURES Adopted Budget Revised Budget (Covid-19) Actual JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC I INFORMATIONAL MEMO Page 3 COVID Expenditures General Fund expenditures related to the COVID-19 pandemic began to be incurred in March. These expenditures totaled $174,569 for the month and are reported by department in the schedule below. COVID related expenditures in salaries and benefits include time dedicated to the emergency operations center (EOC) as well as time spent analyzing the financial impacts of the pandemic. Overtime and supplies are for time outside of normal operations spent in the EOC as well as time responding directly to COVID-19 related activities. Supplies are for additional PPE and disinfectant supplies. Unbudgeted costs can be applied against CARES Act funding or FEMA funding and will not affect ending fund balance. Budgeted salaries and benefits for time that has been redirected to responding to the pandemic could qualify for reimbursement from CARES Act funding. Any reimbursement for budgeted salaries and benefits would reduce the need for contingency funds because the City had not received confirmation that CARES Act funding would be available. Reimbursement of these costs were not included in the proposal to close the $12 million revenue gap. BUDGETED I UNBUDGETED Department Salaries and Benefits Overtime and Benefits Supplies Department Total Council $ 1,479 $ - $ - $ 1,479 Mayor 25,645 - 215 25,860 Admin Services 16,628 - 381 17,009 Finance 9,189 386 327 9,902 Recreation 45,342 - 623 45,964 DCD 3,193 - 509 3,702 Court 114 137 491 741 Police 13,279 4,379 377 18,035 Fire 16,269 8,015 6,095 30,379 TIS - - 45 45 Public Works 6,440 318 9,039 15,797 Park Maintenance 5,654 - - 5,654 Total $ 143,232 1 $ 13,236 $ 18,101 $ 174,569 61 INFORMATIONAL MEMO Page 4 COVID-19 Related Grants Available to the City There are several grant opportunities now available to the City to offset some of the costs incurred related to the pandemic. Below is a chart listing grant opportunities as well as what the funds may be used for. It should be noted that all of the grants are reimbursement and cannot be used to offset loss of revenue. The chart will be updated as new information becomes available. Staff will return in the near future with a plan to maximize the use of all known, available funding. Grant Amount Eligible Uses Status CARES Act $627,900 - Expenditures incurred Council authorized through Dept. of directly related to Mayor to sign Commerce responding to COVID-19 agreement (supplies, overtime, regular time that has substantially shifted focus to the pandemic, unemployment, etc.) - Providing economic support to those suffering from employment - Providing economic support to business interruptions FEMA No cap, reimburses Unbudgeted expenditures incurred Contract completed. 75% of expenditures directly related to responding to Can submit for not covered with other COVID-19 reimbursement at any resources time FEMA -CARES To be determined Assistance to food pantryIn rocess King County Approximately Assistance to small businesses Gathering information $33,000 CESF — Dept. of $49,000 Expenditures incurred directly Application submitted Justice related to responding to COVID-19 Assistance United Way of Unknown at this time Food distribution during summer Grant awarded King County months EFSP Researching Supplement existing emergency Application deadline Emergency food & shelter program June 10th Food & Shelter Prog HungerCorps Gathering information Gathering information Gathering information VISTA AmeriCorps 62 INFORMATIONAL MEMO Page 5 Expenditure Type Variances The chart below reflects both adopted budget, as amended on December 2, 2019 along with the allocated budget as well as a revised budget that captures the reductions from phase I (reduce overtime, travel and training, capital transfers, and extra labor), phase II (departmental budget scrubs), and phase III (labor reductions). It does not currently reflect any use of contingency funds as that will require Council action at a later date. Expenditures are $431 thousand below the revised (COVID-19) allocated budget. GENERALFUND CITY OF TUKW ILA BUDGET REVISED BUDGET ACTUAL COMPARISON OF (COVID-19) RESULTS REVISED BUDGET SALARIES AND BENEFITS ACTUAL OVERI(UNDER) 2020 2020 2020 ALLOCATED 2020 ANNUAL ALLOCATED ANNUAL ALLOCATED 2018 2019 2020 BDGT %EXPENDED 11 Salaries 30,064,147 7,516,037 28,423,730 7,448,614 6,819,740 6,916,414 7,235,293 (213,321) 25 % 12 Extra Labor 764,697 192,568 91,386 132,314 126,485 162,485 115,373 (16,941) 126% 13 Overtime 1,354,099 345,068 354,099 245,068 347,533 438,748 328,396 83,328 93% 15 Holiday Pay 555,369 - 555,369 - 4,453 5,996 3,900 3,900 1 % 21 FICA 2,100,726 525,182 1,928,893 515,390 444,188 448,222 458,077 (57,313) 24% 22 Pension-LEOFF2 913,369 228,342 870,169 224,022 207,671 213,775 222,557 (1,465) 26% 23 Pension-PERS/PSERS 1,805,556 451,389 1,525,232 435,415 416,156 428,769 444,436 9,021 29% 24 Industrial Insurance 934,878 233,720 934,878 233,720 149,178 225,284 259,355 25,636 28% 25 Medical & Dental 6,457,336 1,614,334 6,202,336 1,588,834 1,389,441 1,418,149 1,576,986 (11,848) 25% 26 Unemployment - - 200,000 - 16,622 - 6,681 6,681 3% 28 Uniform/Clothing 8,525 1,0871 8,525 1,087 1 1,265 725 432 1 (654) 59% Total Salaries and Benefits 1 44,958,702 11,107,725 141,094,618 10,824,462 1 9,922,732 10,258,567 10,651,486 1 (172,976) 26% BUDGET REVISED (COV BUDGET I D-19) ACTUAL COMPARISON RESULTS OF SUPPLIES, SERVICES, AND REVISED BUDGET CAPITAL ACTUAL OVB7/(UNDER) 2020 2020 2020 ALLOCATED 2020 ANNUAL ALLOCATED ANNUAL ALLOCATED 2018 2019 2020 BOST %D(PENDED 0 Transfers 7,319,140 1,092,285 6,119,140 792,285 2,953,709 2,340,497 984,298 192,013 16% 31 Supplies 1,066,112 299,391 936,890 286,468 221,608 310,851 216,693 (69,775) 23% 34 Items Purchased for resale 22,000 235 22,000 235 - - 235 - 1% 35 Small Tools 133,569 22,886 86,569 18,186 21,190 9,416 38,060 19,874 44% 41 Professional Services 5,908,964 1,046,858 5,546,983 1,010,660 1,258,459 1,065,196 874,592 (136,069) 16% 42 Communication 434,600 108,650 429,600 108,150 77,647 78,437 93,517 (14,633) 22% 43 Travel 159,630 34,872 18,496 10,008 45,578 53,653 30,257 20,249 164% 44 Advertising 47,550 10,574 31,550 8,974 5,424 2,209 4,538 (4,436) 14% 45 Rentals and Leases 2,422,514 722,909 1,400,579 620,716 536,111 697,822 323,355 (297,361) 23% 46 Insurance 1,047,762 1,043,128 1,007,762 1,039,128 967,482 883,280 987,519 (51,609) 98% 47 Public Utilities 2,069,101 1,182,345 2,053,101 1,180,745 669,583 1,136,447 1,212,717 31,972 59% 48 Repairs and Maintenance 587,912 216,460 512,912 208,960 73,560 233,836 201,394 (7,565) 39% 49 Miscellaneous 1,273,723 327,842 1,040,875 304,557 427,499 210,743 351,055 46,497 34% 64 Machinery&Equipment 270,000 57,500 240,000 54,500 12,059 - -- Total Supplies, Services, and Capital 1 22,762,577 6,165,9361 19,446,457 5,643,572 1 7,269,908 7,022,386 5,318,230 (332,565) 27 % Total Expenditures 1 67,721,279 17,273,661 1 60,541,075 16,468,034 1 17,192,640 17,280,953 15,969,716 (505,541) 26% Percent of year completed 25 % 63