HomeMy WebLinkAboutFIN 2021-04-12 Item 1B - Budget - Department 20 Non-Departmental ExpendituresCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: April 6, 2021
SUBJECT: Department 20 (non -departmental expenditures) Discussion
ISSUE
Provide information on the purpose of Department 20, a department within the general
fund that records accounting transactions related to transfer of money to other funds.
BACKGROUND
During budget discussions with City Council in late 2020, a request was made to provide
information on Department 20, which is a department in the general fund that records
non -departmental transactions.
DISCUSSION
The general fund is the main operating fund for the City and is used to account for all
financial resources except those that are required to be accounted for in another fund.
The general fund categorizes expenditures by department in an attempt to demonstrate
how much it costs to provide various services that are not required to be accounted for in
another fund.
An example would be the Public Works department. Public Works provides a number of
services, including road and street maintenance, traffic control devices, street cleaning,
bus stop maintenance, streetscape, median landscaping, street lighting, snow and ice
removal, video and fiber, minor structural repairs, and sidewalks. All of these services
are captured in the Public Works department within the general fund. However, Public
Works also provides infrastructure improvements which are capital projects. Capital
projects are required to be accounted for in a capital projects fund. Public Works also
provides water, sewer, and surface water services. These are utilities and are required
to be accounted for as enterprise funds.
Department 20 captures transactions that are city-wide in nature and not specific to any
one department. Department 20 is only used to record transfers of general fund revenue
to other funds for expenditures that are required to be accounted for in a different fund.
This is a very common accounting practice and most, if not all, cities account for transfers
in this manner. Transfers are categorized as follows:
- Transfers for debt service payments for LTGO bonds. LTGO bonds are authorized
by Council and are paid for with general fund revenue sources.
- Transfers for capital projects that are at least partially funded by general fund
revenue.
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INFORMATIONAL MEMO
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- Transfers to the golf course to support operations.
In the past, Department 20 had been utilized to record other expenditures not specific to
any one department. This included claims & judgements and liability insurance.
However, several years ago this practice was changed. Liability insurance is now
allocated to departments based on claims experience and claims & judgements was
moved to the Finance department.
RECOMMENDATION
Information only.
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