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Home My WebLink AboutFIN 2021-09-27 Item 1E - Report - July 2021 General Fund Reportw z City of Tukwila Allan Ekberg, Mayor 19oa INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Manager CC: Mayor Ekberg DATE: September 27, 2021 SUBJECT: July 2021 Departmental Budget -to -Actuals Report Summary The purpose of the July 2021 General Fund Financial Report is to summarize state of departmental expenditures and to highlight significant items. The summary of the departmental financial performance. The July 2021 Report is based on financial data available as of September 17, 31, 2021. Additional details can be found within the included financial report. Expenditures for the City Council the general following provides a high-level 2021, for the period ending July General Fund departmental expenditures totaled $32.64 million through June, which is $1.13 million less than the allocated budget of $33.77 million. Dept. 20, which is transfers to other funds totaled $2.73 million, which is $409 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 continues to be concern that department budgets, in general, are too low and may be unable to absorb necessary costs without a budget amendment. General inflation is increasing the cost of both supplies and services purchased. In reviewing expenditures by type, insurance exceeds the annual budget by $84 thousand and utilities category has now expended 83% 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. 23 INFORMATIONAL MEMO Page 2 Departmental Variances All but one General Fund department was under their allocated budget through July 2021. Noteworthy variances are: • The Fire Department is now $713 thousand over the allocated budget of $7.16 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. The 2nd quarter report for the Fire Department was presented to the Community Services and Safety Committee on August 16, 2021 where additional details on overtime usage was provided. The chart below provides additional details on overtime associated with the Fire Department. Fire Overtime Summarized Reimbursable OT Category Salary Benefits Total -Through July 31, 2021 Unreimbursable OT Category Salary Benefits Total Billable Contractor $ 8,395 $ 1,102 $ 9,497 Minimum Staffing $ 290,598 $ 38,156 $ 328,754 COVID Testing Site 174,721 22,941 197,662 Instructor 17,393 2,284 19,677 Repeater Malfunction 70,826 9,299 80,125 Training 15,104 1,983 17,087 Fire Prevention 41,468 5,445 46,913 Fire Investigation 5,306 697 6,003 Academy 21,911 2,877 24,788 Public Safety Plan 8,660 1,137 9,797 Meetings 7,672 1,007 8,679 Shift Extension 6,094 800 6,894 Special Assignment 9,929 1,304 11,233 Other 21,768 2,858 24,626 Totals $ 253,942 $ 33,343 $ 287,285 $ 445,903 $ 58,547 $ 504,450 Budget Amendments The list on the next page outlines budget amendments the City Council has already given consensus for and will be included in the final budget amendment at year-end. 24 INFORMATIONAL MEMO Page 3 Council Meeting Date 4/5 regular meeting Summary of Budget Amendment 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 4/5 regular meeting Contract for Reid Middleton for structural plan review. Cost neutral as this is a revenue backed contract. Any increase in expenditures will also include the same increase in revenue 5/10 COW i 5/17 regular meeting ;5/24 COW 16/14 COW i 6/14 COW 6/21 regular meeting 8/2 regular meeting 8/2 regular meeting F8/23COW------ i Consensus to use new funding (SST) to restore service levels and cover certain contractual obligations. Budget amendment will include increasing both revenue and expenditures by the same amount. Acceptance of Sound Transit System Access grant. Both revenue and expendiitures will be increased by the same amount, net i effect of zero 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 Use of SST funds to complete the transfer of records from the offsite storage location to City Hall. Use of SST is estimated to be $40k. Again revenue backed so net effect of zero to the general fund BNSF Alternative Access Study for up to $1.25 million Fire advisory Task Force Consulting for up to $80 thousand TDM regional mobility grant award, no effect on general fund Summer Experience & Enrichment for Kids Fund (SEEK) grant no effect on the general fund as there is no match required Restore before and after school programming, funded by ARPA so both revenue and expenditure budgets will be adjusted Reclassify Jail Alternative Specialist to Court Support Services Case Manager and increase from .75 FTE to 1.0 FTE. Will require ongoing funding source 25 26 INFORMATIONAL MEMO Page 4 Year to Date Department Expenditures Compared to Allocated Budget Through July 2021 City Council ; Mayor's Office Administrative Services Finance Recreation Community Development , Municipal Court Police Fire Public Works Dept 20 $0 $2,000 $4,000 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES $6,000 $8,000 ■YTD Actual ■YTD Budget $10,000 $12,000 Thousands Year -to -Date as of July, 31, 2021 Percent of year completed 58% 27 EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) % CHANGE % EXPENDED 2019/ 2020 2020/ 2021 01 City Council $ 363,618 $ 211,434 $ 217,793 $ 202,742 $ 195,815 $ (15,619) 54% -7% -3% 03 Mayor's Office 2,104,126 1,171,470 1,256,432 1,240,174 1,126,617 (44,854) 54% -1% -9% 04 Administrative Services 4,984,464 2,780,836 2,677,208 2,435,936 2,589,024 (191,812) 52% -9% 6% 05 Finance 3,049,858 1,947,203 1,553,278 1,547,299 1,579,430 (367,774) 52% 0% 2% 07 Recreation 4,260,543 2,647,568 2,908,685 2,436,792 2,292,274 (355,294) 54% -16% -6% 08 Community Development 4,069,943 2,305,277 2,111,887 1,837,941 2,236,499 (68,778) 55% -13% 22% 09 Municipal Court 1,272,888 744,852 739,291 742,750 709,037 (35,815) 56% 0% -5% 10 Police 18,286,665 10,448,230 10,886,466 10,108,148 9,972,531 (475,699) 55% -7% -1% 11 Fire 12,706,860 7,156,552 7,530,964 7,216,878 7,869,189 712,637 62% -4% 9% 13 Public Works 6,584,325 4,363,603 4,836,329 4,110,452 4,075,531 (288,072) 62% -15% -1% Subtotal 57,683,290 33,777,026 34,718,331 31,879,112 32,645,947 (1,131,079) 57% -8% 2% 20 Dept 20 5,462,760 3,140,951 3,425,593 2,068,215 2,732,130 (408,821) 50% -40% 32% Total Expenditures $ 63,146,050 $ 36,917,977 $ 38,143,924 $ 33,947,327 $ 35,378,077 $ (1,539,900) 56% -11% 4% Percent of year completed 58% 27 INFORMATIONAL MEMO Page 5 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES Year -to -Date as of July, 31, 2021 Percent of year completed 28 58% 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 $ 28,723,860 $ 17,059,386 $ 16,501,687 $ 16,633,051 $ 16,136,684 $ (922,702) 56% 1% -3% 12 Extra Labor 347,528 285,588 479,403 119,135 65,831 (219,757) 19% -75% -45% 13 Overtime 1,218,115 647,303 1,067,992 629,536 1,262,551 615,248 104% -41% 101% 15 Holiday Pay 515,500 85,575 76,376 65,888 72,268 (13,307) 14% -14% 10% 21 FICA 1,872,655 1,123,224 1,082,335 1,038,550 1,021,535 (101,689) 55% -4% -2% 22 Pension-LEOFF 899,828 563,204 513,617 655,392 577,157 13,953 64% 28% -12% 23 Pension-PERS/PSERS 1,631,377 980,475 1,026,153 990,803 937,993 (42,482) 57% -3% -5% 24 Industrial Insurance 875,820 539,679 477,242 533,038 539,456 (223) 62% 12% 1% 25 Medical & Dental 6,904,119 3,926,534 3,349,666 3,663,712 3,948,258 21,724 57% 9% 8% 26 Unemployment -- 1,032,306 10,400 27,319 20,710 20,710 - 163% -24% 28 Uniform/Clothing 8,525 2,160 1,783 1,334 1,391 (769) 16% -25% 4% Total Salaries & Benefits $ 42,997,327 $ 25,213,128 $ 24,586,654 $ 24,357,759 $ 24,583,835 $ (629,293) 57% -1% 1% Percent of year completed 28 58% SUPPLIES, SERVICES AND CAPITAL BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) % CHANGE % EXPENDED 2019/ 2020 2020/ 2021 0 Transfers $ 5,462,760 $ 3,140,951 $ 3,425,593 $ 2,068,215 $ 2,732,130 $ (408,821) 50% 32% -40% 31 Supplies 1,055,711 524,508 932,596 393,825 405,733 (118,775) 38% -58% 3% 34 Items Purchased for resale 13,000 11,484 18,029 1,417 1,323 (10,161) 10% -92% -7% 35 Small Tools 66,450 30,027 63,941 46,731 42,382 12,355 64% -27% -9% 41 Professional Services 5,439,071 2,682,024 3,480,234 2,578,831 2,692,730 10,706 50% -26% 4% 42 Communication 481,810 279,781 215,105 249,691 235,099 (44,681) 49% 16% -6% 43 Travel 83,196 64,769 124,216 30,082 11,830 (52,939) 14% -76% -61% 44 Advertising 34,750 13,516 11,651 5,720 2,695 (10,821) 8% -51% -53% 45 Rentals and Leases 2,166,137 1,032,306 1,776,771 755,319 1,180,729 148,424 55% -57% 56% 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 1,564,112 1,535,863 1,449,898 1,652,887 88,775 83% -6% 14% 48 Repairs and Maintenance 651,669 324,456 394,623 419,153 193,472 (130,984) 30% 6% -54% 49 Miscellaneous 1,153,730 704,031 643,462 597,521 453,167 (250,864) 39% -7% -24% 64 Machinery& Equipment 518,665 302,555 45,228 5,495 76,184 (226,371) 15% -88% 1287% Total Operating Expenses 20,148,723 11,704,849 13,557,270 9,589,569 10,794,242 (910,607) 54% -29% 13% Total Expenses $63,146,050 $36,917,977 $38,143,924 $33,947,327 $35,378,077 $ (1,539,900) 56% -11% 4% Percent of year completed 28 58%