HomeMy WebLinkAboutCOW 2020-08-24 Item 5C - Report - COVID-19 Financial Impact ReportCOUNCIL AGENDA SYNOPSIS
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08/24/20
Vicky
ITEM INFORMATION
ITEM No.
STAFF SPONSOR: VICKY CARLSEN
ORIGINAL AGENDA DATE: 08/24/20
AGENDA ITEM TITLE July Financial Update including COVID related data
CATEGORY 11 Discussion
08/24/20
❑ Motion
Mtg Dale
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
Mtg Date
SPONSOR ❑Council Mayor PHR PDCD 11Finance Fire PTV PP&R Police PPW ❑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 P Arts Comm. I— Parks Comm. ❑ Planning Comm.
DATE: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONsoR/ADMIN.
COMMITTEE
Finance
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
08/24/20
MTG. DATE
ATTACHMENTS
08/24/20
Informational Memorandum dated 08/18/20
57
58
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: August 18, 2020
SUBJECT: General Fund Budget-to-Actuals and COVID-19 Impact Report and
Update to Budget Impacts due to COVID-19
Summary
Resolution 1987 directed financial reporting on COVID-19 impacts twice a month. This report
reflects the following:
- General fund:
o Revenues as of May 31, 2020
o Expenditures as of June 30, 2020
- Capital projects funds:
o Revenues as of July 31, 2020
o Expenditures as of July 31, 2020
The revised budget (COVID-19) noted throughout the report is for financial analysis purposes
only. Any actual adjustments to the budget will require formal action from Council in the 4th quarter
of 2020.
The purpose of the general fund budgets to actuals report is to summarize for the City Council
the general state of revenues and expenditures and to highlight significant items. The following
provides a high-level summary of the general fund financial performance and includes select
capital project funds.
The General Fund Report is based on financial data available as of July 29, 2020, for the period
ending May 31, 2020 for revenues and June 30, 2020 for expenditures. The allocated budget is
calculated to reflect monthly revenue patterns based on prior year activity with adjustments
specific to COVID-19. Additional details can be found within the attached financial report.
Updated Financial Impacts due to COVID-19
Brief Recap of prior financial analysis: At the May 11, 2020 Committee of the Whole, staff provided
detailed analysis of the financial impact due to COVID-19. Based on information at that time, the
reduction in revenue for 2020 was projected to be $12 million.
A number of factors were taken into consideration including the following:
- Non -essential businesses would be shut down into May
- When businesses reopened, it would take time to return to normal
59
INFORMATIONAL MEMO
Page 2
- When businesses reopened, social -distancing measures would be in place and those
restrictions would ease over time
- All categories for sales tax were projected to show a significant decline from prior year
activity
- Uncertainty regarding utility customer usage would be impacted, negatively impacting
interfund utility tax revenue
- Due to expected social -distancing requirements, casinos were expected to remain closed
the remainder of 2020
- Unprecedented times as no one has ever experienced an event like this in our lifetime
The City now has three months of sales tax data (March through May) during which businesses
were closed, and it is appropriate to update the financial forecast based on updated financial
information.
What has changed:
Sales tax from construction was significantly higher than projected, which offset some of the
expected loss from the retail and service sectors
- Other sales tax sectors, including manufacturing, were only minimally affected by the
pandemic. The original projections expected all sectors to decline while businesses were
closed
- Casinos reopened and, to date, have been able to respond to social -distancing
requirements
- Departments have held the line on spending where possible resulting in additional
expenditure reductions
- Overtime costs have increased the last 2 months due to looting that took place in the City
and injuries with fire personnel that has resulted in overtime to maintain 12 minimum
staffing
Because there is still much uncertainty with how the remainder of 2020 will play out, the updates
to the financial projections are still conservative. Unfortunately, infection rates have not
decreased which has resulted in additional social -distancing measures in effect for an unknown
time. The federal unemployment of $600 per week expired at the end of July and it is uncertain
if a new federal unemployment benefit will be enacted. As the pandemic continues to play out,
the long-term impacts to businesses and our residents are unknown.
Updated financial forecast: Sales tax and gambling tax revenue estimates have been increased
a total of $1.8 million. The total projected increase is based on actual earnings in March, April,
and May. Projected expenditures have been adjusted $300 thousand to account for increased
overtime usage in June and July. Overtime was significantly over projections in May, June, and
July due to looting to took place in May and June as well as injuries with fire personnel. Overtime
is expected to remain higher than expected through August.
The chart on the next page summarizes the initial plan to close the expected revenue gap along
with the significant changes as of August 14, 2020.
The net result of the adjustments will mean a decrease of $1.5 million in use of contingency funds.
Another update to the forecast will be provided in October as part of the biennial budget process.
60
INFORMATIONAL MEMO
Page 3
5/6/20 8/14/20 Net Change
Estimated FY 2020 Gap to Fill 12,000,000 10,200,000 (1,800,000)
Phase
Hiring freeze for current vacant positions (1,600,000) (1,600,000) All travel, non -essential training cancelled (140,000) (140,000) -
Furlough part-time staff (150,000) (150,000) No overtime unless authorized by Mayor (910,000) (610,000) (300,000)
Transfers to capital project funds eliminated (1,200,000) (1,200,000) -
Total Phase I Reductions (4,000,000) (3,700,000) 300,000
Phase II
Department Budget Scrub (2,100,000) (2,100,000)
Phase III
Furlough days/pay reduction (non -rep) (382,000) (382,000)
Potential Furlough Days (labor group) (700,000) (700,000)
Contingency Match for Labor (3,246,000) (3,246,000)
Total Phase Ill Reductions
Total Reductions: Phases I, II, and IIl
Additional Contingency Funds to Balance
Remaining Gap to Fil
Total Contingency Funds Available
Used in 2020
Balance Available for 2021'
(4,328,000) (4,328,000)
(10,428,000) (10,128,000)
(1,572,000) (72,000)
7,099,000 7,099,000
(4,818,000) (3,318,000)
2,281,000 3,781,000
Preliminary General Fund Revenue Projection for 2021
(300,000)
(1,500,000)
(1,500,000)
1,500,000
Current estimates for 2021 general fund are conservative and take into consideration continued
impacts of COVID-19. The graph on page 5 illustrates general fund revenue from 2015 through
a very preliminary budget for 2021. Columns in blue represent actuals and the orange bar
represents projected revenue for 2020 and takes into consideration the updated impacts of
COVID-19. The green bars represent budget; the light green is the 2020 budget (pre COVID-19)
and the darker green represents preliminary estimates for 2021.
Charges for Services: Includes user fees at the Tukwila Community Center, reimbursement for
providing billable fire and police services, inspections, plan reviews, and court charges. Estimated
budget for 2021 considers continuing impacts of COVID-19, particularly for programs offered at
the Community Center. It is currently estimated that reduced programming will be in effect will
into 2021.
Grants: Grant revenue is one of the smallest revenue sources for the general fund. Several
grants in the Police department have now expired, including the COPS grant, which provided
funding for police officers.
61
INFORMATIONAL MEMO
Page 4
Miscellaneous: Includes franchise fees, investment earnings, and many other minor revenue
sources. No significant changes are projected for 2021.
Permits: Permit revenue has seen growth over the last several years and has not yet been
negatively impacted to due to the pandemic. Current estimates for 2021 are based on known and
estimated potential future development.
Property tax: Property tax revenue is restricted to 1% growth plus new construction. Estimates
are conservative and will be adjusted in late September once preliminary levy information is
available from King County.
Sales tax: Sales tax represents the largest revenue source for the general fund and is highly
volatile, expanding and contracting with changes to the local economy. Sales tax has been
impacted by COVID-19, significantly reducing revenue in the retail and services sectors. Due to
the volatility of this revenue source and ongoing concerns with the pandemic, the current forecast
is higher than COVID-19 2020 estimates but is still conservative. As new information becomes
available, the budget for 2021 will be adjusted as needed.
State shared: Small revenue source and includes revenues shared by the State including criminal
justice sales tax, marijuana and liquor excise taxes, firemen's pension, and sales tax mitigation.
A significant decline in this revenue source occurred in 2019 with the loss of sales tax mitigation
payments. Through State legislative action in 2019, this revenue source was restored for four
years. Because it was limited to four years, these funds were placed in the Public Safety Plan
fund rather than the general fund.
Other taxes: Other taxes includes utility, gambling, admissions, and business licenses. Because
these taxes are tied to business revenue and staff levels, these revenue sources are highly
volatile. Other tax revenue also changes as consumer behavior changes. For example, we have
seen a decline in telephone tax as consumers drop land lines and opt for digital services, many
of which are unlimited plans. The City is now also starting to see a possible downward trend in
electricity utility tax due to energy efficient appliances and lights becoming more common. As
consumer behavior changes, these revenue streams must also be adjusted to reflect reality. The
budget for 2021 takes these changes into consideration and also considers lingering impacts of
the pandemic.
As stated above, the numbers represented in the graph on the next page for the 2021 revenue
budget are conservative and will change as new information becomes available. The revenue
projections will continue to be fine-tuned until formal presentation to the City Council during
workshops in September and October.
These are unprecedented times and there are still many uncertainties as to how COVID-19 will
continue to impact the City.
62
INFORMATIONAL MEMO
Page 5
NO 4,
MACTUAL 8A0P20AL 20.73kerOAL 20,4„ACTUAL Zet9 Aak,„„AL 2O2OP000EC,D)Te motoGri „2,,,MakMINAR3",300,7
General Fund Revenue
$22
$17
217
$7
$2
-S3
hvo
Chg (Or Svcs
MOO.
331III
Prop Tax
Sale, Tao
State Shwed
0274
MIS ACTUAL 2016 ACTUAL 333 2013 ACTUAL IX 2018 ACTUAL 1,3 2019 ACTUAL O.202000000010100 20206130$ET e20210000M,0405000020
Other Taxes
63
INFORMATIONAL MEMO
Page 6
Revenues
The chart on page 2, 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. In this report, revenues are reflected through May 31 st and expenditures through June
30th The chart has not yet been revised to reflect updated sales tax and property tax projections.
Staff is working on an updated financial forecast that will be presented on August 24tt1. June
revenue will be updated after June sales tax revenue is received at the end of August and will be
included in first financial report in September.
$12
0
$6
$6
$4
$2
$0
JAN
FEB
MAR
GENERAL FUND REVENUE
CITY OF TUKWILA
GENERAL FUND REVENUES
A Adopted Budget S Revised Budget (Covid-19) Actual
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
YTD AS OF MAY 31, 2020
ADOPTED BUDGET
REVISED BUDGET
(COVID-19)
ACTUAL
SUMMARY BY REVENUE TYPE
2020
ANNUAL
2020
ALLOCATED
2020
ANNUAL
2020
ALLOCATED
2018
2019
% REC'D
2020
2020 BDGT
VARIANCE -REVISED
BDGT(COVID)
PROPERTY TAX
16,416,911
8,679,615
16,416,911
4,179,615
8,094,130
8,219,100
5,067,350
887,735
31%
SALES TAX
20,510,676
7,651,154
12,898,546
5,210,937
7,620,164
7,653,899
6,333,111
1,122,175
31%
ADMISSIONS TAX
870,000
377,149
470,246
234,748
421,938
414,792
318,714
83,966
37%
UTILITYTAX
4,464,610
2,039,367
3,816,260
1,718,604
1,840,458
1,703,529
1,580,502
(138,102)
35%
INTERFUND UTILITY TAX
2,412,000
1,326,448
2,412,000
1,326,448
946,854
1,300,992
1,425,766
99,318
59%
GAMBLING & EXCISE TAX
4,426,000
2,181,636
2,064,567
1,977,876
1,969,600
1,964,337
1,654,144
(323,732)
37%
TOTAL GENERAL REVENUE
49,100,197
22,255,368
38,078,530
14,648,227
20,893,145
21,256,648
16,379,587
1,731,360
33%
LICENSES AND PERMITS
6,784,894
2,793,221
6,784,894
2,793,221
3,467,022
3,728,917
3,320,459
527,238
49%
INTERGOVERNMENTAL REVENUE
4,403,506
2,073,926
4,403,506
2,073,926
1,490,828
2,118,913
1,932,528
(141,399)
44%
CHARGES FOR SERVICES
2,588,707
741,595
2,107,235
936,953
787,854
1,319,996
382,368
(554,585)
15%
OTHER INCOME
4,398,189
1,625,096
3,806,470
1,486,212
1,414,740
1,486,606
1,739,993
253,780
40%
TOTAL OPERATING REVENUE
67,275,493
29,489,206
55,180,635
21,938,540
28,053,588
29,911,080
23,754,934
1,816,395
35%
TRANSFERS IN
200,000
-
200,000
-
-
-
-
-
0%
TOTAL REVENUE
67,475,493
29,489,206
55,380,635
21,938,540
28,053,588
29,911,080
23,754,934
1,816,395
35%
Percent of year
42%
64
INFORMATIONAL MEMO
Page 7
Total General Fund revenue through May 31 st was $23.8 million and is above the revised allocated
budget by $1.8 million. The higher than expected actuals in January is mainly due to business
license renewal activity. Business license revenue was higher than projected in January and
February due to a timing difference resulting in transitioning to the State. Business license
revenue that was anticipated in December 2019 was received in the first two months of this year.
March is the first month that the City experienced revenue loss due to the pandemic.
Revenue through May is also higher than projected due to property tax and sales tax revenue.
King County allowed certain property owners to pay the 1st installment 30 days later than normal.
Less property owners than expected took advantage of this opportunity, which resulted in a timing
difference that will be offset in June. By year-end, the City does anticipate property tax revenue
to be close to budget. The timing adjustment for property tax was a $2 million reduction in May
with an offsetting increase of $2 million in June.
The sales tax table on the next page presents the dollar change over the last three reported
months, comparing 2020 industry year to the same period last year. Construction was stronger in
Mar — May 2020 compared to the same period last year. This added to the increase over projected
revenues. However, the Retail Trade is down more than 55% over the same period last year.
Accommodation and Food Service is also down significantly, over 47%, compared to the same
period of Mar — May 2019. The reduction in the retail and accommodation/food service sectors
was expected.
,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
ar - ay 2019 vs 2020
By Major Industry
Accommodation and Food Construction
Services
ar May 2019 IN Mar May 2020
Retail Trade
65
INFORMATIONAL MEMO
Page 8
Industry Mar - May 2019 Mar - May 2020 $ Variance %Variance
Accommodation and Food Services 702,923 304,084 (398,839), -56.7%
Construction 376,141 712,019 335,878 89.3%
Retail Trade 2,521,519 1,313,109 (1,208,410)-47.9%
Expenditures
General Fund expenditures totaled $30 million through June, which is $125 thousand less than
the revised allocated budget of $30.1 million adjusted for the impacts of the COVID-19 pandemic.
c
0
$14
$2
GENERAL FUND EXPENDITURES
Adopted Budget a Revised Budget (Covid-19) Actual
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Expenditure Type Variances
The chart above 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.
Lootings
Twenty-six businesses were broken into at the end of May and beginning of June. The mass
lootings required a strong police presence that resulted in overtime costs. Fire staff were also on
standby while Public Works incurred some costs related to closing streets. This chart is now
updated with related supplies expenditures for June.
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INFORMATIONAL MEMO
Page 9
UNBUDGETED
BUDGETED
U N BU DG ETED
Department
Overtime
Salaries and
Benefits
Overtime
Supplies
Total
Police
$ 24,357
$ -
$ 33,617
$ 4,408
$62,382
Fire
435
-
1,003
-
1,438
Street Maintenance
-
2,064
-
-
2,064
Total
$ 24,792
$ 2,064
$ 34,620
$ 4,408
$ 65, 884
GENERAL FUND
CITY OF TUKWILA
Year -to -Date as of June 30, 2020
SALARIES AND BENEFITS
BUDGET
REVISED BUDGET
(COVID-19)
ACTUAL
COMPARISON OF
RESULTS
2020 ANNUAL
2020 ALLOCATED
2020 ANNUAL
2020
ALLOCATED
2018
2019
REVISED BUDGET
ACTUAL
OVERI(UNOER)
2020
ALLOCATED
BDGT %EXPENDED
11
Salaries
30,064,147
15,032,074
28,423,730
14,624,354
13,466,391
14,177,655
14,376,560
(247,795)
51%
12
Extra Labor
764,697
383,278
91,386
157,410
291,306
339,944
118,475
(38,935)
130%
13
Overtime
1,354,099
677,616
354,099
277,616
689,733
923,383
520,728
243,112
147%
15
Holiday Pay
555,369
65,000
555,369
65,000
94,903
75,442
63,624
(1,376)
11
21
FICA
2,100,726
1,050,363
1,928,893
1,000,636
885,839
924,878
899,048
(101,588)
47%
22
Pension-LEOFF 2
913,369
456,685
870,169
439,405
415,357
442,896
587,334
147,930
67%
23
Pension-PERS/PSERS
1,805,556
902,778
1,525,232
821,655
824,456
878,175
863,764
42,109
57%
24
Industrial Insurance
934,878
467,439
934,878
467,439
299,866
412,785
468,241
802
50%
25
Medical & Dental
6,457,336
3,228,668
6,202,336
3,126,668
2,754,779
2,869,798
3,156,066
29,398
51%
26
Unemployment
-
-
200,000
15,000
18,354
10,400
27,319
12,319
14%
28
Uniform/Clothing
8,525
1,923
8,525
1,923
1,738
1,313
1,094
(829)
13%
Total Salaries and Benefits
44,958,702
22,265,822
41,094,618
20,997,105
19,742,723
21,056,668
21,082,254
85,148
51%
SUPPLIES, SERVICES, AND
CAPITAL
BUDGET
REVISED BUDGET
(COVID-19)
ACTUAL
COMPARISON OF
RESULTS
2020 ANNUAL
2020 ALLOCATED
2020 ANNUAL
2020
ALLOCATED
2018
2019
REVISED BUDGET
ACTUAL
OVER/(UNDER)
2020
ALLOCATED
BDGT % EXPENDED
0
Transfers
7,319,140
2,160,815
6,119,140
1,560,815
3,907,572
3,400,593
1,968,595
407,780
32%
31
Supplies
1,066,112
576,434
936,890
524,745
479,787
784,127
350,217
(174,528)
37%
34
Items Purchased for resale
22,000
22,000
22,000
22,000
16,954
18,029
1,253
(20,747)
6%
35
Small Tools
133,569
62,549
86,569
43,749
38,837
59,677
44,048
299
51%
41
Professional Services
5,908,964
2,837,572
5,546,983
2,692,779
2,826,139
2,833,659
2,326,290
(366,489)
42%
42
Communication
434,600
217,300
429,600
215,300
179,975
184,439
204,989
(10,311)
48%
43
Travel
159,630
81,638
18,496
13,771
77,146
106,861
29,925
16,154
162%
44
Advertising
47,550
25,007
31,550
18,607
19,946
10,377
5,545
(13,063)
18%
45
Rentals and Leases
2,422,514
1,211,257
1,400,579
700,290
1,199,867
1,548,697
652,698
(47,592)
47%
46
Insurance
1,047,762
1,047,762
1,007,762
1,031,762
974,066
889,957
987,671
(44,091)
98%
47
Public Utilities
2,069,101
1,508,529
2,053,101
1,502,129
957,053
1,444,442
1,405,645
(96,484)
68%
48
Repairs and Maintenance
587,912
311,222
512,912
281,222
199,954
356,616
407,564
126,342
79%
49
Miscellaneous
1,273,723
623,962
1,040,875
530,822
718,363
580,644
537,874
7,051
52%
64
Machinery & Equipment
270,000
115,000
240,000
-
46,590
45,228
5,495
5,495
2%
Total Supplies, Services, and Capital
22,762,577
10,801,047
19,446,457
9,137,991
11,642,248
12,263,345
8,927,807
(210,184)
46%
Total Expenditures
67,721,279
33,066,869
60,541,075
30,135,097
31,384,971
33,320,014
30,010,061
(125,036)
50%
Percent of year completed
50%
Transfers
The transfers line includes budgeted transfers for debt service and certain capital projects.
Transfers show above allocated budget due to timing differences of when funds were transferred
in 2020 vs last year but total transfers to date are only 32% of the adopted budget. It should be
noted, because of existing funds in the PW Shops fund, no transfers from the general fund for
67
INFORMATIONAL MEMO
Page 10
this project have been required to date. However, the planned transfer from the general fund to
the PW Shops fund is included in the updated financial projections.
COVID Expenditures
General Fund expenditures related to the COVID-19 pandemic began to be incurred in March.
These expenditures totaled $488,852 through June 30' 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
UNBUDGETED
Department
Salaries and
Benefits
Overtime Supplies
and Benefits
Department
Total
Council
$ 1,784
$ - $ 287
$ 2,071
Mayor
72,703
- 284
72,987
Admin Services
36,354
- 399
36,753
Finance
39,434
386 372
40,192
Recreation
204,560
- 16,306
220,865
DCD
3,712
- 1,322
5,033
Court
114
137 3,401
3,652
Police
18,600
4,379 11,543
34,522
Fire
16,269
8,015 12,784
37,069
TIS
390
- 45
435
Public Works
6,673
318 13,805
20,796
Park Maintenance
14,476
- -
14,476
Total
415, 069
$ 13, 236 $ 60, 548
$ 488, 852
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.
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INFORMATIONAL MEMO
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Grant
Amount
Eligible Uses
Status
CARES Act
through Dept. of
Commerce
$627,900
- Expenditures incurred
directly related to
responding to COVID-19
(supplies, overtime,
regular time that has
substantially shifted focus
to the pandemic,
unemployment, etc.)
- Providing economic support
to those suffering from
unemployment
- Providing economic support
to business interruptions
Contract has been
signed and returned to
Department of
Commerce for full
execution
FEMA
No cap, reimburses
75% of expenditures
not covered with
other resources
Unbudgeted expenditures incurred
directly related to responding to
COVID-19
Contract completed.
Can submit for
reimbursement at any
time
FEMA -
CARES
To be determined
Assistance to food pantry
In process
King County
$31,965
Assistance to small businesses
On June 19th, the City
was notified that we
are eligible to receive
$31,965. On August
3, 2020, the Planning
& Economic
Development
Committee authorized
staff to accept the
grant and use the
funds for direct grants
to very small
businesses with a
focus on the Tukwila
International Blvd.
area
CESF — Dept.
of Justice
Assistance
$49,000
Expenditures incurred directly
related to responding to COVID-
19
Grant has been
awarded. Contract is
being processed
EFSP
Emergency
Food & Shelter
Prog
City of Tukwila does
not qualify for this
grant
Supplement existing emergency
food & shelter program
Forwarded to TCS
and Tukwila Pantry
HungerCorps
VISTA
AmeriCorps
Four VISTA
AmeriCorps
HungerCorps
students. Value:
35,500
HungerCorps will assist
Recreation staff to distribute food
as part of the mobile recreation
program
Contract awarded
Port of Seattle
$20,930 total grant
application
Application included residential
component within digital media
program to grow tourism,
Recommended
revisions approved by
Planning & Economic
69
INFORMATIONAL MEMO
Page 12
development attraction, etc.
Development
Suggestion has been made to
revise application to focus more
on business recovery and direct
Committee on July 7,
2020
$7,000 of the total $20,930
application to business recovery.
Additional information can be
found in item 1a on the July 6,
2020 Planning & Economic
Development Committee meeting
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INFORMATIONAL MEMO
Page 13
Selected Capital Projects Funds
Financial analysis regarding the impacts of the COVID-19 pandemic include ongoing review of
certain capital projects funds including residential streets (fund 103), arterial streets (fund 104),
and general government improvements (fund 303). The narrative below highlights planned capital
projects along with decisions that have already been made and decision points for future
meetings. The narrative is followed by financial statements reflecting activity through April 30,
2020 as well as projected activity through the end of the year.
Residential Streets
The most impactful issue in this fund relates to the 42nd Ave S and 53rd Ave S roadway projects.
Both projects are completed and are awaiting final closeout and payments to contractors. The
project budgets reflected in the financial statements are estimates at this time. Staff is working to
determine full final costs and will update budgets when revised information is received. Until the
City has updated information on these two projects, the fund will continue to show a negative fund
balance. It should also be noted that the negative fund balance is only an estimate and will only
end the year in a negative position if all identified expenditures are paid this year. The fund
currently has a positive cash balance and a positive fund balance.
Arterial Streets
42nd Ave S Bridge: The City Council authorized funding of up to $1 million ($320 thousand
general fund, $680 thousand solid waste utility tax) for 30% design. There is a possibility that a
federal infrastructure bill could include funding for "shovel ready" projects. In order for this project
to have the best chance of receiving funding, the project would need to be at least 30% designed.
The City expects to select a design consultant later this summer to get to 30% design. Since
funding for the highest priority areas for overlay have been identified, staff is recommending that
a decision on whether to fund this project or redirect funds elsewhere, be delayed until the true
cost of design is understood.
S 119th St Ped Bridge painting: Not funding this project will only delay the project, not cancel it.
There is a limited window of opportunity to paint the bridge due to weather and fish cycles.
Removing funding for this project will delay the project until at least 2021.
Overlay: At the June 8, 2020 Committee of the Whole meeting, there was Council consensus to
move forward with the recommendation from the Transportation & Infrastructure Committee to
fund the two highest priority overlay projects. The budget has been adjusted to reflect the
increase in budget.
General Government Improvement
Siding repair at TCC: Siding repair for TCC has been listed as a project as early as 2018. When
the 2019-2020 budget was drafted, the expectation was that $200 thousand in siding and roofing
repairs at TCC would occur. Last year, the city received bids for Phase III of the project; the lowest
proposal being $116,589. At the July 13' Council of the Whole meeting, consensus existed to
forward this item to the consent agenda at the following Regular meeting. Budget for this project
is $120 thousand and funding currently exists in the general government improvement fund.
Facilities Study: This project is also funded out of the general government improvement. Staff is
reworking the scope of this project per comments received from City Council at the June 8, 2020
Committee of the Whole meeting.
71
INFORMATIONAL MEMO
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City of Tukwila
Residential Street Fund 103 - Revenue and Expenditures
Year -to -Date as of July 31, 2020
d (COVID
udget
2020
Vadai
Year To -Date + Through YE _ Projected YE GOVID Budge
REVENUE:
General Revenue
Solid Waste/Recycling Utility Tax
Total Intergovernmental Revenue
40,651
40,651
40,651
Intergovernmental Revenue
Indirect Federal - SRTS 3,454,000
State Grant - Macadam 1,847,000
State Entitlements - MVFT Cities 290,000
Total Intergovernmental Revenue 5,591,000
Miscellaneous Revenue
** Charges for senices
Investment earnings
Total Miscellaneous Revenue
20,000
3,454,000
1,847,000
200,000
5,501,000
134,682
40,651
40,651
149,141 50,859 200,000
149,141 50,859 200,000
134,682
134,682
40,651
(3,454,000)
(1,847,000)
(5,301,000)
0.0%
0.0%
100.0%
2.7%
100.0%
20,000
Transfers In 100,000
EXPENDITURES:
46thAve Safe Routes to School
Macadam Rd S Complete Street
S 152nd St Safe Routes to School
Traffic Calming/Residential Safety
53rd Ave S
42nd Ave S Phase III
Interfund Loan Repayment
Total Expenditures
Change in fund balances
134,682
100,000
134,682
100,000
134,682
100,000
673.4%
100.0%
5,711,000
5,735,66324,475 150,859 475,334 (5,260,34
1,832,000
1,847,000
1,622,000
400,000
1,832,000
1,847,000
1,622,000
50,000
399,000
378,000
336,932
(1,832,000) 0.0%
- - - (1,847,000) 0.0%
(1,622,000) 0.0%
22,929 27,071 50,000 - 100.0%
222,028 176,972 399,000 100.0%
40,816 337,184 378,000 100.0%
252,500 84,433 336,932 - 100.0%
701,0'
,464,932
8,273 625,659 1163,932 (5,301,0110) 9.4%
10,000
141,586
(729,250)
141,586
(688,599)
141,586
40,651 94.4%
0 100.0%
Ending Fund Balance
151,586
(587,665)
(547,013) 40,652 93,1%
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INFORMATIONAL MEMO
Page 15
City of Tukwila
Arterial Street Fund 104 - Revenue and Expenditures
Year -to -Date as of July 31, 2020
2020
Annual Revised (COVID) 3 Actual Expected Total
Budget Budget Year -To -Date + Through YE = Projected YE
Variance
Over/(Under) % of Annual
Allocated Budget Budget
REVENUE:
General Revenue
Parking Tax
MV FT aties
Solid Waste Utility Tax
Real Estate Excise Taxes
Total General Revenue
Charges for Sevices
Park impact Fees
Traffic Impact Fees
Total Charges for Services
Intergovernmental Revenue
Strander Grants
Federal - 42nd Ave
Boeing Access Bridge Over Airport Wa
State Grant - West Valley Highway
Total Charges for Services
Miscellaneous Revenue
Investment earnings
Contributions/Donations
Total Miscellaneous Revenue
470,000 300,000
137,000 100,000
680,000 680,000
500,000 500,000
1,787,000 1,580,000
300,000 300,000
213,000 213,000
513,000 513,000
38,389,000 -
1,280,000 -
2,614,000 2,614,000
2,694,000 2,694,000
148,423 151,577 300,000
75,954 24,046 100,000
- 680,000 680,000
139,859 360,141 500,000
364,236 1,215,764 1,580,000
242,202
242,202
300,000 300,000
157,798 400,000
457,798 700,000
0
0
78,208 2,535,792 2,614,000
88,662 2,605,338 2,694,000
0 64%
0 73%
0 100%
0 100%
88.4%
100.0%
187,000 187.8%
187,000 136.5%
0.0%
0.0%
100.0%
100.0%
44,977,000
20,000
30,000
5,308,000
15,000
30,000
166,869
11,127
2,700
5,141,131 5,308,000
2,000 13,127
2,700
11.8%
(1,873) 65.6%
(27,300) 9.0%
50,000
Transfers In 1,000,000
45,000
13,827
15,827
(29,173) 31.7%
0.0%
Total Revenues
EXPENDITURES:
Overhead (Salaries & Benefits)
Strander Blvd. Extension
BAR over Airport Way Seissic Retrofit
West Valley Highway
42nd Ave S Bridge Replacement
S 144th St Bridge - Sidewalks
S 119th St Ped Bridge
ADA Improvements
Wetland & Environmental Mitigation
Transportation Comp Bement Ran
Walk & Roll
Annual Overlay
Annual Bridge Inspections
Annual Traffic Signals
Transfer Park Impact Fees to Fund 301
Other Misc. Capital Projects
f'h Chanaelization :,;.tidy
20147 Traffic Cialminci/Pes iSataq
TUC77105edestrl r /i3rcycle Fridge
S 1961 /250th S( 3rrdge
S 144I5 St Phase li (421tr1 Ave S - 1 /
Total Expenditures
48,327,000 7,446,000
787,135
6,814,693 7,603,827
157,827 15.7
485,382 485,382
38,389,000 622,362
2,614,000 2,614,000
3,195,000 2,694,000
1,600,000 1,000,000
227,000 227,000
200,000 200,000
50,000 -
40,000 40,000
400,000 200,000
75,000
1,400,000 510,000
135,000 269,000
125,000 62,500
1,009,000
159,880
2,795
76,712
201,085
1,637
231,173 391,053
622,362 625,157
2,537,288 2,614,000
2,492,915 2,694,000
998,363 1,000,000
200,000 200,000
17,410 22,590 40,000
200,000 200,000
167,041 342,959 510,000
5,053 263,947 269,000
610 61,890 62,500
1,009,000 1,009,000
23,531 6,151 29,682
10. u46 6,151 25,000
772
/„505 7,505
1.304 - 7_304
lei
(94,329) 80.6%
(37,763,843) 1.6%
100.0%
(501,000) 84.3%
(600,000) 62.5%
(227,000) 0.0%
100.0%
(50,000) 0.0%
100.0%
(200,000) 50.0%
(75,000) 0.0%
(890,000) 36.4%
134,000 199.3%
(62,500) 50.0%
1,009,000
25,020
1,772
7,505
4324
16/
48,935,382 9,933,244
655,755 8,988,638 9,644,393
(39,290,989) 19.7%
Change in fund balances (608,382)
Beginning Fund Balance 1,187,826
(2,487,244)
1,187,826
131,380
(2,173,945) (2,040,565)
2,083,854
446,679 335.4%
896,028 175.4%
Ending Fund Balance
579,444 (1,299,418)
43,289
1,342,707 7.5%
73
INFORMATIONAL MEMO
Page 16
City of Tukwila
General Government Improvements Fund 303 - Revenue and Expenditures
Year -to -Date as of July 31, 2020
2020
Budget Budget ) Year -To -Date + Through Y.
Varier
Overl(lit
Pr YE 2 i COOVID Budge
VID
duet
REVENUE:
Miscellaneous Revenue
Investment earnings
Total Miscellaneous Revenue
500
500
200,000
500
500
3,524
3,524
1,000
4,524
3,024 704.8%
3,024 704.8%
0.0%
Total Revenuesi:
EXPENDITURES:
City Hall Siding/Roof Repair
TCC Siding(Roof Repair
2020 Facilities Study
Misc. Projects (including salaries & benefits)
200,500
500
3,524 ' 3,524 t 3,024
50,000
100,000
300,000
208,015
50,000
120,000
190,000
31,684
2; 026
29;658
120,000 120,000
190,000 190,000
31,684
2,026
29,658
(50,000)
31,684
0.0%
100.0%
100.0%
Total Expenditures 658,0:!
Change in fund balances
Beginning Fund Balance
Ending Fund Balance
(457,515)
525,166
0
(359,500)
1,684
0,000 341,684 (18,316) 4.8%.
(338,160)
525,166 656,306
21,340 94.1%
131,140 125.0%
67,651
165,666 318,146 152480 192.0%''..
74