The URL can be used to link to this page

Home My WebLink AboutFIN 2021-07-26 Item 1C - Report - May 2021 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: July 26, 2021 SUBJECT: May 2021 Departmental Budget -to -Actuals Report Summary The purpose of the May 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 May 2021 Report is based on financial data available as of July 13, 2021, for the period ending May 31, 2021. Additional details can be found within the attached financial report. Expenditures General Fund departmental expenditures totaled $23.52 million through May, which is $1.54 million less than the allocated budget of $25.07 million. Dept. 20, which is transfers to other funds totaled $1.37 million, which is $249 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 now expended 71% 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. 29 INFORMATIONAL MEMO Page 2 Departmental Variances All but one General Fund department was under their allocated budget through May 2021. Noteworthy variances are: • The Fire Department is $358 thousand over the allocated budget of $5.23 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 May 31, 2021 Unreimbursable OT Category Salary Benefits Total Billable Contractor $ 7,694 $ 1,010 $ 8,704 Minimum Staffing $ 164,160 $ 21,554 $ 185,714 COVID Testing Site 134,538 17,665 152,203 Instructor 9,582 1,258 10,840 Repeater Malfunction 59,989 7,877 67,866 Training 13,129 1,724 14,853 Fire Prevention 32,733 4,298 37,031 Fire Investigation 1,996 262 2,258 Academy 19,006 2,495 21,501 Public Safety Plan 7,327 962 8,289 Meetings 5,537 727 6,264 Shift Extension 5,461 717 6,178 Special Assignment 4,145 544 4,689 Other 18,480 2,426 20,906 Totals $ 202,221 $ 26,552 $ 228,773 $ 281,556 $ 36,968 $ 318,524 Budget Amendments The list below outlines budget amendments the City Council has already given consensus for and will be included in the final budget amendment at year-end. Council Meeting Date.Summary of Budget Amendment 74/5 regular meeting Contract for BHC Consultants for structural plan review. Cost neutralas this is a revenue backed contract. Any increase in i expenditures will also include the same increase in revenue i .4/5 regular meeting Contract for Reid Middleton for structural plan review. Cost neutral as this is a revenue backed contract. Any increase in i expenditures will also include the same increase in revenue 15/10-6-6 W Consensus to use new funding (SST) to restore service levels and cover certain contractual obligations. T3-t.icigef amendment i will include increasing both revenue and expenditures by the same amount. ! 5/17 regular meeting Acceptance of Sound Transit System Access grant. Both revenue and expendiitures will be increased by the same amount, net i effect of zero i 5/24 COW Grant contract with King County Dept. of Community and Human Services. Award amount of $115,384 so both revevenue and ! expenditures will be adjusted net effect of zero ! 5/24 COW Use of SST funds to complete the transfer of records from the offsite storage location to City Hall. Use ofSST is estimated to be i $40k. Again revenue backed so net effect of zero to the general fund i /14 COW BNSF Alternative Access Study for up to $1.25 million 6/14-C6 TNFire advisory Task Force Consulting for up to $80 thousandi _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,6/21 regular meeting TDM regional mobility grant award, no effect on general fund 30 INFORMATIONAL MEMO Page 3 Year to Date Department Expenditures Compared to Allocated Budget Through May 2021 City Council ; INFORMATIONAL MEMO Page 4 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES Year -to -Date as of May 31, 2021 SALARIES AND BENEFITS BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) % % CHANGE EXPENDED 2019/ 2020 2020/ 2021 11 Salaries 1 $ 28,723,860 $ 12,322,159 $ 11,674,707 $ 12,047,049 $ 11,577,264 $ (744,896) 40% 3% -4% 12 Extra Labor 347,528 264,959 272,693 117,378 11,826 (253,133) 3% -57% -90% 13 Overtime 1,218,115 449,001 770,092 416,507 878,487 429,486 72% -46% 111% 15 Holiday Pay 515,500 5,105 5,996 3,900 8,938 3,833 2% -35% 129% 21 FICA 1,872,655 812,046 761,159 751,080 725,217 (86,829) 39% -1% -3% 22 Pension-LEOFF 899,828 433,090 363,548 516,159 360,683 (72,407) 40% 42% -30% 23 Pension-PERS/PSERS 1,631,377 721,676 731,502 732,582 687,866 (33,810) 42% 0% -6% 24 Industrial Insurance 875,820 400,900 351,339 399,162 395,663 (5,237) 45% 14% -1% 25 Medical & Dental 6,904,119 2,815,744 2,382,990 2,632,364 2,594,499 (221,245) 38% 10% -1% 26 Unemployment - - 10,400 27,319 20,710 20,710 - 163% -24% 28 Uniform/Clothing 8,525 1,173 1,313 614 876 (296) 10% -53% 43% Total Salaries & Benefits $ 42,997,327 $ 18,225,853 $ 17,325,739 $ 17,644,113 $ 17,262,030 $ (963,823) 40% 2% -2% SUPPLIES, SERVICES AND CAPITALAllocated BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Budget vs Actuals OVER/(UNDER) % % CHANGE EXPENDED 2019/ 2020 2020/ 2021 0 Transfers I $ 5,462,760 $ 1,614,704 $ 2,460,097 $ 886,326 $ 1,365,690 $ (249,014) 25% -64% 54% 31 Supplies 1,055,711 403,555 571,191 299,124 268,916 (134,638) 25% -48% -10% 34 Items Purchased for resale 13,000 10,000 5,810 235 859 (9,141) 7% -96% 265% 35 Small Tools 66,450 22,189 45,195 41,538 21,029 (1,160) 32% -8% -49% 41 Professional Services 5,439,071 1,889,361 2,243,112 1,781,800 2,095,315 205,954 39% -21% 18% 42 Communication 481,810 198,101 149,055 164,927 173,413 (24,689) 36% 11% 5% 43 Travel 83,196 63,319 94,124 31,014 6,403 (56,916) 8% -67% -79% 44 Advertising 34,750 7,271 8,259 4,408 1,792 (5,479) 5% -47% -59% 45 Rentals and Leases 2,166,137 747,987 1,174,759 546,056 562,065 (185,922) 26% -54% 3% 46 Insurance 1,030,329 1,030,329 889,957 987,671 1,113,881 83,552 108% 11% 13% 47 Public Utilities 1,991,445 1,465,868 1,345,070 1,362,568 1,420,550 (45,318) 71% 1% 4% 48 Repairs and Maintenance 651,669 265,181 327,261 337,885 164,881 (100,300) 25% 3% -51% 49 Miscellaneous 1,153,730 522,121 497,267 462,173 355,055 (167,066) 31% -7% -23% 64 Machinery& Equipment 518,665 216,110 - 5,495 76,184 (139,927) 15% - 1287% Total Operating Expenses 20,148,723 8,456,095 9,811,156 6,911,220 7,626,030 (830,064) 38% -30% 10% Total Expenses $63,146,050 $26,681,947 $27,136,894 $24,555,333 $24,888,060 $ (1,793,887) 39% -10% 1% Percent of year completed 32 42%