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Home My WebLink AboutFIN 2021-06-28 Item 1A - Budget - Monthly General Fund UpdateCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Manager CC: Mayor Ekberg DATE: June 28, 2021 SUBJECT: April 2021 Departmental Budget -to -Actuals Report Summary The purpose of the April 2021 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 April 2021 Report is based on financial data available as of June 8, 2021, for the period ending April 30, 2021. Additional details can be found within the attached financial report. At the May 11, 2021, Committee of the Whole, Council gave consensus to move forward with using Streamlined Sales Tax (SST) mitigation revenue to fund a number of high-priority programs including: Fire overtime, permit activity, street/bus stop maintenance, park maintenance, recreation program assistance, Dark Trace — cyber security, wage & compensation agreement, and code enforcement & rental housing. These items will be included in the year-end budget amendment and are revenue backed by SST funds Expenditures General Fund departmental expenditures totaled $18.87 million through April, which is $1.66 million less than the allocated budget of $20.54 million. Dept. 20, which is transfers to other funds totaled $1.37 million, which is $81.60 thousand less than the allocated budget. The allocated budget is calculated to reflect year-to-date spending patterns of the previous year. While all but one department is currently below the allocated budget, there is growing concern that department budgets, in general, are too low and may be unable to absorb necessary costs without a budget amendment. In reviewing expenditures by type, insurance exceeds the annual budget by $84 thousand and utilities category has already expended 68% of the annual budget. Given that the City has 3 new facilities and the vacated fire stations are still owned by the City, it is very likely that the annual utilities budget will be exceeded in the 3rd quarter of 2021. Staff will be closely monitoring departmental budgets and will continue to keep the City Council fully informed of additional budgetary concerns. 1 INFORMATIONAL MEMO Page 2 Departmental Variances All but one General Fund department was under their allocated budget through April 2021. Noteworthy variances are: • The Fire Department is $294.73 thousand over the allocated budget of $4.20 million. The variance is related to overtime & associated benefits compared to the allocated budget. Council recently gave consensus for a year-end budget amendment to increase fire overtime by $200k. An additional budget amendment will be needed to account for overtime that is reimbursable. Any reimbursable overtime will have no effect on the general fund. However, given the use of minimum staffing overtime in 2021, unless action is taken to reduce expenditures, a budget amendment that will affect the general fund will be needed. Additional information is currently being prepared for a full conversation on the Fire Department budget at a committee meeting in the near future. The chart below provides additional details on overtime associated with the Fire Department. Fire Overtime Summarized Reimbursable OT Category Salary Benefits Total - Through April 30, 2021 Unreimbursable OT Category Salary Benefits Total Billable Contractor $ 6,845 $ 899 $ 7,744 Minimum Staffing $ 96,469 $ 12,666 $ 109,135 COVID Testing Site 109,505 14,378 123,883 Instructor 5,718 751 6,469 Repeater Malfunction 47,980 6,300 54,280 Training 12,721 1,670 14,391 Fire Prevention 26,126 3,430 29,556 Fire Investigation 1,776 233 2,009 Academy 14,111 1,853 15,964 Public Safety Plan 7,390 970 8,360 Meetings 5,338 701 6,039 Shift Extension 2,741 360 3,101 Other 14,624 1,920 16,544 Totals $ 164,330 $ 21,577 $ 185,907 $ 187,014 $ 24,555 $ 211,569 2 INFORMATIONAL MEMO Page 3 Year to Date Department Expenditures Compared to Allocated Budget Through April 2021 CityCouncil I • Mayor's Office Administrative Services Finance Recreation Community Development Municipal Court Police Fire111!- Public Works Dept 20 $0 $1,000 $2,000 GENERAL FUND CITY OF TUKWILA GENERAL FUND EXPENDITURES • $3,000 $4,000 $5,000 YTD Actual YTD Budget $6,000 $7,000 Thousands Year -to -Date as of April 30, 2021 Percent of year completed 33% 3 EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allo S A cated t alsgeY OVER/(UNDER) % CHn 2020/ EXPENDED NG 2019/ 2020 2021 01 City Council $ 363,618 $ 124,500 $ 129,011 $ 116,648 $ 103,786 $ (20,714) 29% -10% -11% 03 Mayor's Office 2,104,126 708,526 719,957 762,404 598,545 (109,981) 28% 6% -21% 04 Administrative Seroices 4,984,464 1,555,203 1,415,975 1,360,380 1,331,694 (223,509) 27% -4% -2% 05 Finance 3,049,858 1,309,760 1,023,298 1,083,434 1,042,114 (267,645) 34% 6% -4% 07 Recreation 4,260,543 1,723,309 1,555,894 1,524,972 1,319,341 (403,968) 31% -2% -13% 08 Community Development 4,069,943 1,331,593 1,188,732 1,071,988 1,299,337 (32,256) 32% -10% 21% 09 Municipal Court 1,272,888 452,916 409,813 444,140 378,619 (74,297) 30% 8% -15% 10 Police 18,286,665 6,157,345 6,187,217 6,008,433 5,677,120 (480,225) 31% -3% -6% 11 Fire 12,706,860 4,203,900 4,352,930 4,232,077 4,498,630 294,730 35% -3% 6% 13 Public Works 6,584,325 2,969,743 3,119,181 2,815,543 2,624,614 (345,129) 40% -10% -7% Subtotal 57,683,290 20,536,796 20,102,008 19,420,020 18,873,800 (1,662,996) 33% -3% -3% 20 Dept20 5,462,760 1,447,287 2,385,097 886,326 1,365,690 (81,597) 25% -63% 54% Total Expenditures $ 63,146,050 $ 21,984,083 $ 22,487,105 $ 20,306,346 $ 20,239,490 $ (1,744,593) 32% -10% 0% Percent of year completed 33% 3 INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES Year -to -Date as of April 30, 2021 SUPPLIES, SERVICES AND CAPITAL SALARIES AND BENEFITS BUDGET ACTUAL ACTUAL COMPARISON OF RESULTS COMPARISON OF RESULTS 2021 ANNUAL 2021 ANNUAL 2021 ALLOCATED 2020 2020 2021 Allocated Budget vs ActualsEXPENDED OVER/(UNDER) OVER/(UNDER) % % CHANGE 2019/ 2020 2019/ 2020 2020/ 2021 11 Salaries $ 28,723,860 $ 9,836,881 $ 9,319,643 $ 9,627,088 $ 9,276,252 $ (560,630) 32% 3% -4% 12 Extra Labor 347,528 255,140 214,940 116,446 7,734 (247,406) 2% -46% -93% 13 Overtime 1,218,115 374,861 624,049 358,056 638,397 263,536 52% -43% 78% 15 Holiday Pay 515,500 5,105 5,996 3,900 7,417 2,313 1% -35% 90% 21 FICA 1,872,655 651,316 607,257 603,108 577,239 (74,077) 31% -1% -4% 22 Pension-LEOFF 899,828 303,637 289,308 374,988 285,510 (18,127) 32% 30% -24% 23 Pension-PERS/PSERS 1,631,377 578,216 583,811 588,645 549,458 (28,758) 34% 1% -7% 24 Industrial Insurance 875,820 329,959 288,082 330,597 322,374 (7,585) 37% 15% -2% 25 Medical & Dental 6,904,119 2,247,562 1,899,085 2,105,520 2,078,513 (169,049) 30% 11% -1% 26 Unemployment - - - 6,681 - - - - -100% 28 Uniform/Clothing 8,525 652 1,090 432 876 225 10% -60% 103% Total Salaries & Benefits $ 42,997,327 $ 14,583,330 $ 13,833,261 $ 14,115,461 $ 13,743,771 $ (839,559) 32% 2% -3% SUPPLIES, SERVICES AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2020 2021 Allocatedvs Acta lsget OVER/(UNDER) OVER/(UNDER) % CHANGE EXPENDED 2019/ 2020 2021 0 Transfers $ 5,462,760 $ 1,447,287 $ 2,385,097 $ 886,326 $ 1,365,690 $ (81,597) 25% -63% 54% 31 Supplies 1,055,711 335,886 455,798 249,536 214,307 (121,579) 20% -45% -14% 34 Items Purchased for resale 13,000 10,000 600 235 239 (9,761) 2% -61% 2% 35 Small Tools 66,450 19,626 13,192 41,256 15,469 (4,157) 23% 213% -63% 41 Professional Services 5,439,071 1,571,899 1,798,016 1,484,978 1,372,604 (199,295) 25% -17% -8% 42 Communication 481,810 153,734 113,837 129,599 127,306 (26,428) 26% 14% -2% 43 Travel 83,196 62,505 82,642 31,804 3,287 (59,218) 4% -62% -90% 44 Advertising 34,750 5,817 7,237 4,408 895 (4,921) 3% -39% -80% 45 Rentals and Leases 2,166,137 590,855 941,752 429,715 543,420 (47,436) 25% -54% 26% 46 Insurance 1,030,329 1,030,164 889,864 987,519 1,113,881 83,717 108% 11% 13% 47 Public Utilities 1,991,445 1,340,348 1,311,641 1,261,760 1,344,487 4,139 68% -4% 7% 48 Repairs and Maintenance 651,669 211,319 249,831 270,859 132,527 (78,791) 20% 8% -51% 49 Miscellaneous 1,153,730 448,425 404,337 412,891 261,607 (186,818) 23% 2% -37% 64 Machinery& Equipment 518,665 172,888 - - - (172,888) 0% - - Total Operating Expenses 20,148,723 7,400,753 8,653,844 6,190,885 6,495,718 (905,034) 32% -28% 5% Total Expenses $63,146,050 $21,984,083 $22,487,105 $20,306,346 $20,239,490 $ (1,744,593) 32% -10% 0% Percent of year completed 4 33%