The URL can be used to link to this page

Home My WebLink AboutFIN 2021-10-25 Item 1B - Update - August 2021 Monthly General Fundw 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: October 25, 2021 SUBJECT: August 2021 General Fund Departmental Budget -to -Actuals Report Summary The purpose of the August 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 August 2021 Report is based on financial data available as of October 13, 2021, for the period ending August 31, 2021. Additional details can be found within the included financial report. Expenditures General Fund departmental expenditures totaled $37.74 million through August, which is $530 thousand less than the allocated budget of $38.27 million. Department 20, which is transfers to other funds, totaled $2.73 million, which is $576 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 and departmental activity is reflecting this with more departments closer to allocated budget than in previous months. 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 continues to closely monitor departmental budgets and will continue to keep the City Council fully informed of additional budgetary concerns. 9 INFORMATIONAL MEMO Page 2 Departmental Variances All but one General Fund department was under their allocated budget through August 2021. Noteworthy variances are: • The Fire Department is now $855 thousand over the allocated budget of $8.12 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, 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 August 31, 2021 Unreimbursable OT Category Salary Benefits Total Billable Contractor $ 9,555 $ 1,255 $ 10,810 Minimum Staffing $ 384,997 $ 50,550 $ 435,547 COVID Testing Site 203,909 26,773 230,682 Instructor 17,393 2,284 19,677 Repeater Malfunction 74,606 9,796 84,402 Training 15,104 1,983 17,087 Fire Prevention 43,201 5,672 48,873 Fire Investigation 6,127 804 6,931 Academy 21,911 2,877 24,788 Public Safety Plan 8,847 1,162 10,009 Meetings 8,005 1,051 9,056 Shift Extension 7,586 996 8,582 Special Assignment 10,507 1,380 11,887 Other 26,430 3,470 29,900 Totals $ 288,070 $ 37,824 $ 325,894 $ 550,108 $ 72,229 $ 622,337 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. 10 INFORMATIONAL MEMO Page 3 Council Meeting Date Summary of Budget Amendment 14/5 regular meeting Contract for BHC Consultants for structural plan review. Cost neutralas this is a revenue backed contract. Any increase in expenditures will also include the same increase in revenue 14/5 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 L. 15/10 COW 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. .5/17 regular meeting Acceptance of Sound Transit System Access grant. Both revenue and expendiitures will be increased by the same 15/24 COW !6/14 COW !6/14 COW !6/21 regular meeting 8/2 regular meeting 8/2 regular meeting !8/23 COW !9/20 regular meeting amount, 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 •— -------•—•—•-------•—•-------•—•—•-------•—•------J 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 1 require ongoing funding source — —•— ----•— —•—•— ---1 1.25 FTE for Municipal Court and 1.0 FTE for Police to staff chool zone automated traffic cameras. Costs are expected to j be covered by the school zone automated traffic camera program. 11 INFORMATIONAL MEMO Page 4 Year to Date Department Expenditures Compared to Allocated Budget Through August 2021 City Council I Mayor's Office Administrative Services Finance Recreation Community Development, Municipal Court = Police Fire Public Works Dept 20 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Thousands ■YTD Actual ■YTD Budget GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES Year -to -Date as of August 31, 2021 Percent of year completed 12 67% EXPENDITURES BY DEPARTMENT BUDGET ACTUAL COMPARISON OF RESULTS 2021 ANNUAL 2021 ALLOCATED 2019 2020 2021 Allocated Budget vs Actuals OVER/(UNDER) % CHANGE % IXPENDED 2019/ 2020 2020/ 2021 01 City Council $ 363,618 $ 237,897 $ 243,464 $ 229,807 $ 222,648 $ (15,249) 61% -6% -3% 03 Mayor's Office 2,104,126 1,289,769 1,457,170 1,378,052 1,283,109 (6,660) 61% -5% -7% 04 AdministrativeSeMces 4,984,464 3,218,600 3,032,228 2,828,064 3,181,698 (36,902) 64% -7% 13% 05 Finance 3,049,858 2,174,982 1,704,043 1,721,251 1,789,972 (385,010) 59% 1% 4% 07 Recreation 4,260,543 2,921,187 3,354,351 2,715,121 2,762,088 (159,099) 65% -19% 2% 08 Community Development 4,069,943 2,591,592 2,389,274 2,059,536 2,526,508 (65,084) 62% -14% 23% 09 Municipal Court 1,272,888 837,671 848,921 838,250 802,192 (35,479) 63% -1% -4% 10 Police 18,286,665 12,070,030 12,213,480 11,646,339 11,653,694 (416,336) 64% -5% 0% 11 Fire 12,706,860 8,122,847 8,500,448 8,188,951 8,977,859 855,012 71% -4% 10% 13 Public Works 6,584,325 4,806,489 5,349,008 4,550,513 4,541,409 (265,080) 69% -15% 0% Subtotal 57,683,290 38,271,063 39,092,386 36,155,884 37,741,176 (529,887) 65% -8% 4% 20 Dept 20 5,462,760 3,308,368 3,450,593 2,068,215 2,732,130 (576,238) 50% -40% 32% Total Expenditures $ 63,146,050 $ 41,579,431 $ 42,542,979 $ 38,224,099 $ 40,473,306 $ (1,106,125) 64% -10% 6% Percent of year completed 12 67% INFORMATIONAL MEMO Page 5 GENERAL FUND CITY OF TUKW ILA GENERAL FUND EXPENDITURES Year -to -Date as of August 31, 2021 Percent of year completed 67% 13 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 $ 19,284,884 $ 18,801,524 $ 18,803,202 $ 18,542,522 $ (742,362) 65% 0% -1% 12 Extra Labor 347,528 297,159 602,219 121,661 109,036 (188,123) 31% -80% -10% 13 Overtime 1,218,115 750,742 1,199,296 735,246 1,478,149 727,407 121% -39% 101% 15 Holiday Pay 515,500 85,575 77,172 65,888 78,815 (6,760) 15% -15% 20% 21 FICA 1,872,655 1,265,831 1,237,677 1,171,380 1,177,800 (88,032) 63% -5% 1%0 22 Pension-LEOFF 899,828 627,099 582,620 722,756 649,939 22,841 72% 24% -10% 23 Pension-PERS/PSERS 1,631,377 1,103,090 1,173,493 1,114,465 1,056,362 (46,728) 65% -5% -5% 24 Industrial Insurance 875,820 604,960 539,619 596,511 612,975 8,015 70% 11% 3% 25 Medical & Dental 6,904,119 4,461,544 3,827,495 4,162,551 4,483,393 21,849 65% 9% 8% 26 Unemployment -- 1,030,329 17,588 27,319 20,710 20,710 - 55% -24% 28 Uniform/Clothing 8,525 2,181 1,981 1,334 1,881 (300) 22% -33% 41% Total Salaries & Benefits $ 42,997,327 $ 28,483,065 $ 28,060,683 $ 27,522,312 $ 28,211,584 $ (271,481) 66% -2% 3% Percent of year completed 67% 13 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 $ 3,308,368 $ 3,450,593 $ 2,068,215 $ 2,732,130 $ (576,238) 50% -40% 32% 31 Supplies 1,055,711 604,761 1,044,365 489,102 503,497 (101,263) 48% -53% 3% 34 Items Purchased for resale 13,000 11,806 18,029 1,673 1,777 (10,029) 14% -91% 6% 35 Small Tools 66,450 38,623 71,786 66,850 55,381 16,759 83% -7% -17% 41 Professional Services 5,439,071 3,375,727 3,812,560 3,235,991 3,529,165 153,438 65% -15% 9% 42 Communication 481,810 322,352 248,669 305,771 277,291 (45,060) 58% 23% -9% 43 Travel 83,196 73,295 130,170 32,226 17,918 (55,377) 22% -75% -44% 44 Advertising 34,750 14,970 13,904 6,255 2,944 (12,026) 8% -55% -53% 45 Rentals and Leases 2,166,137 1,175,620 2,007,948 864,082 1,443,280 267,660 67% -57% 67% 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 1,665,036 1,607,491 1,538,576 1,719,189 54,154 86% -4% 12% 48 Repairs and Maintenance 651,669 358,996 409,676 467,503 239,608 (119,388) 37% 14% -49% 49 Miscellaneous 1,153,730 770,707 731,918 632,377 549,476 (221,231) 48% -14% -13% 64 Machinery& Equipment 518,665 345,777 45,228 5,495 76,184 (269,593) 15% -88% 1287% Total Operating Expenses 20,148,723 13,096,366 14,482,296 10,701,787 12,261,722 (834,643) 61% -26% 15% Total Expenses $63,146,050 $41,579,431 $42,542,979 $38,224,099 $40,473,306 $ (1,106,125) 64% -10% 6% Percent of year completed 67% 13