The URL can be used to link to this page

Home My WebLink AboutCOW 2021-11-08 Item 4B / 5B - Public Hearing - Ordinance Adopting 2021-2022 Biennial Budget AmendmentCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 11/8/21 Vicky 11/15/21 Vicky ITEM INFORMATION ITEM No. 4.B. & 5.B. STAFF SPONSOR: VICKY ORIGINAL AGENDA DATE: 11/8/21 AGENDA ITEM TITLE Adopt 2021 - 2022 Mid -Biennium Budget Amendments CATEGORY ❑ Discussion Mtg Date ❑ Motion Mk Date Resolution Mtg Date Ordinance Mt1 Date 11/15/21 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date 11/8/21 Other rlltg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ Pb"R ❑ Police ❑ PTV SPONSOR'S SUMMARY Council is being asked to approve the ordinance amending the 2021 - 2022 biennial budget REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community DCA'. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/25/21 COMMITTEE CHAIR: IDAN RECOMMENDATIONS: SPONSOR/ADMIN. Finance Department COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/8/21 11/15/21 MTG. DATE ATTACHMENTS 11/8/21 Informational Memorandum dated 10/19/21 (updated after Committee) Ordinance in Draft Form Reconciliation of 2021 - 2022 Budget Summary to Ordinance Proposed Budget Changes - Summary by Fund Minutes from the Finance & Governance Committee meeting of 10/25/21 11/15/21 Ordinance in Final Form 15 16 City 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: October 19, 2021 SUBJECT: 2021 Mid -Biennial Budget Amendment Ordinance Updated for November 8, 2021, Committee of the Whole meeting ISSUE Approve the administrative 2021 — 2022 mid -year biennial budget amendments. BACKGROUND While amending the budget is only required when a fund, in total, is in danger of exceeding budget, it is a best practice to adjust the budget to identify significant changes in financial plans, policy decisions, and provide transparency for key decisions. Several of the proposed budget amendments have been reviewed and consensus given by Council Committee and/or Council process as noted below in the discussion. The proposed budget amendments make the following types of modification to the current biennium: • Housekeeping amendments such as adjusting budgeted beginning fund balance to actual beginning fund balance, • Adjustments specific to allocating American Rescue Plan Act funds, • Increasing certain general fund revenue streams, • Adjustments to meet personnel contractual obligations • Reflect revenue -backed projects/expenditures, All budget amendments are detailed below with explanations provided for each amendment as well as the effect on ending fund balance. Budget amendments are summarized by fund in the tables attached to this memo. DISCUSSION General Fund Adjust Beginning Fund Balance A beginning fund balance increase of $1,050,153 to adjust the budgeted beginning fund balance to reflect the actual beginning fund balance. Fiscal year 2020 ended the year with a fund balance of $12.7 million, which exceeds the fund balance policy by approximately $1.1 million. 17 INFORMATIONAL MEMO Page 2 It should be noted that after all amendments, the general fund is expected to meet, and exceed, reserve policy in both 2021 and 2022. Amendments by Department The footnotes below the chart on the next page provide additional details about each proposed amendment. Dept.l� Footnyj Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Council 1 Personnel contract obligations 6,795 Council 2 Trainings, Registrations & Meetings 8,500 Council Total $ - $ - $ - $ 15,295 Mayor 1 Personnel contract obligations 31,851 Mayor 2 Conflict Public Defense 20,000 20.000 Mayor 2 Trainings, Dues & Registrations 2,000 30,000 Mayor 3 Reinstatement of See,Click,Fix (Tukwila Works) previously cut due to pandemic (ARPA) 15,000 15,000 Mayor 2 Employee recognition and awards 5,000 5,000 Mayor 2 ORCA/Reimbursements 5,000 10,000 Mayor (Economic Development) 4 Add Economic Development plan 150,000 Mayor (Economic Development) 3 Business Assistance (ARPA) 15,000 185,000 Mayor (City Attorney) 2 Special Matters 12,000 12,000 Mayor Total $ - $ 74,000 $ - $ 443,851 Administrative Services 1 Personnel contract obligations 29,175 166,981 Administrative Sersices (Human Resources) 5 Reclassify portion of ERP budget from Finance to Human Resources for NeoGov setup 77,000 83,000 Administrative Services (Human Resources) 6 Temporary labor/Professional services contract 40,000 Administrative Services (Human Services) 3 COVID-19 response costs (utility/rental assistance) (ARPA) 500,000 Administrative Services (llS) 3 Add back service previously cut due to pandemic- Dark Trace Cyber Security (ARPA) 25,000 25,000 Administrative Services (TIS) 3 Buildout of Council Chambers and conference rooms for hybrid Virtual & in person meeting technology setup (ARPA) 18,000 200,000 Administrative Services (T1S) 2 Dell lease requirements 25,000 Administrative Sences 3 Community Connectors Program (ARPA) 25,000 Administrative Services Total $ - $ 174,175 $ - 1.$ 1,039,981 Finance 1 Personnel contract obligations 18,757 112,771 Finance 5 Reclassify portion of ERP budget from Finance to Human Resources for NeoGov setup (77,000) (83,000) Finance 2 Additional budget for Trainings, Dues and Registrations for 2022 10,000 Finance 3 ARPA Financial Analyst staff position (ARPA) 160,000 Finance Total $ - $ (58,243) $ - $ 199,771 Recreation 1 Personnel contract obligations 15,168 83,723 Recreation 3 Add back previously frozen position- Rec Program Assistance summer camp (ARPA) 50,000 100,000 Recreation 7 Veterans, Seniors and Human Services Levy (VSHSL) 57,692 P. 57,692 57,692 57,692 Recreation 3 Restore before & after school program budgets program cuts due to pandemic (ARPA) 84,000 170,000 Recreation 7 Summer Experiences & Enrichment Grant 26,000 26,000 Recreation -Parks 3 Add back previously frozen position - parks maintenance (ARPA) 80,000 160,000 Recreation -Parks 1 Personnel contract obligations 29,277 Recreation Total $ 83,692 $ 312,860 $ 57,692 $ 600,692 Community Development 1 Personnel contract obligations 54,944 294,053 Community Development 3 Add back previously frozen positions - Permit Processing (ARPA) 125,000 300,000 Community Development 8 Adjust budgets for credit card revenue and fees to reflect new processor fee structure (44,000) (44,000) (45,000) (45,000) Community Development 9 Structural Review Contracts 150,000 150,000 Community Development 7 Housing grant 20,000 20,000 Community Development Total $ 126,000 $ 305,944 $ (45,000) $ 549,053 Court 1 Personnel contract obligations 5,568 42,694 Court 10 School speed zone camera program costs/revenues 45,000 45,000 180,000 180,000 Court 11 Increase an FTE from 0.75 to 1.0 w/reclassification 25,000 71,000 Court Total $ 45,000 $ 75,568 $ 180,000 $ 293,694 Police 1 Personnel contract obligations 6,926 693,056 Police 10 School speed zone camera program costs/revenues 69,000 69,000 ' 252,000 252,000 Police 19 Owner city funding to SCORE 150,000 Police Total $ 69,000 $ 225,926 $ 252,000 $ 945,056 Fire 3 & 12 Fire Overtime for minimum staffing (ARPA) 225,000 300,000 Fire 12 Fire Overtime for minimum staffing (revenue backed) 310,000 310,000 100,000 100,000 Fire 12 Fire Overtime for minimum staffing 385,000 385,000 Fire 1 Personnel contract obligations 344,907 Fire 13 Contracts - Fire Exploratory Committee, CPSM 110,000 40,000 Fire Total $ 310,000 $ 1,030,000 $ 100,000 $ 1,169,907 Public Works 1 Personnel contract obligations 9,552 89,805 Public Works -Facilities 2 Property insurance premiums for new Justice Center and Fire Stations 100,000 Public Works -Street Maintenance 3 Add back previously frozen positions- Street maintenance staff (ARPA) 167,500 335,000 Public Works -Street Maintenance 1 Personnel contract obligations 29,785 Public Works -Street Maintenance 2 Provide budget for Feb 2021 snow/ice event costs (2/12-2/14) and 2022 budget for snow/ice costs 56,000 50,000 Public Works -Admin 2 Funding for backlog of Public Work's as-builts, anticipated costs 40,000 Public Works Total $ - $ 233,052 $ - $ 644,590 18 INFORMATIONAL MEMO Page 3 Dept. Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Dept. 20 - Transfers Out 14 Reduction of debt service transfers due to refunding's/debt issuance (322,067) Dept. 20 - Transfers Out 15 Arts 1% transfer for General Fund (missed in adopted budget) 750 6,350 Dept. 20 - Transfers Out 16 Transfer to Arterial Streets (Fund 104) of prior year solid waste taxes (in excess of 2020 authorized transfer) 192,102 Dept. 20 - Transfers Out 3 Transfer to Residential Streets of ARPA funding for Traffic Calming 100,000 400,000 Dept. 20 - Transfers Out 17 EIS for Alternative access study (General fund transfer to Arterial Streets Fund 104) 1,300,000 Dept. 20 Transfers Total $ - $ (29,215) $ - $ 1,706,350 Dept. Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure General Revenue 18 Streamlined Sales Tax Revenue 1,323,000 792,000 General Revenue 3 ARPA Revenues for adding back positions/services cut due to COVID pandemic 804,500 2,860,000 General Revenue 18 Additional Sales tax revenue above budget, adjusting to reflect better than expected results compared to adopted budgets 1,000,000 1,000,000 General Revenue 5 Adjust Software ERP Project transfers -in to reflect amount needed for 2021, carryforward balance to 2022 (410,000) 410,000 Total General Revenue Amendments $ 2,817,500 $ - $ 5,062,000 $ - 1) Adjust budget for personnel contractual obligations, estimates included for open contract. 2) Adjust certain budgets to line up with actual expectations including contractual obligations (conflict public defense, special matters, property insurance, computer leases, etc.) and add some budget for training. Budget also added for snow events. 3) Use of ARPA funds to restore certain services that were reduced or eliminated due to decreased revenue caused by COVID-19 health emergency. Budget is proposed and actual costs may be slightly higher or lower than budget. ARPA funds would be transferred up to the total expenditure of the applicable projects only. The City was offered a 14 -month contract for SeeClickFix beginning in November of 2021 for the same price as a 12 -month contract beginning in January 2022. Cost was moved from 2022 to 2021. No change in total cost of the contract. 4) Add budget for economic development plan in 2022. 5) Move budget from finance to human resources for the NeoGov portion of the ERP project. This module is specific to the human resources functions and should be accounted for in the appropriate department. Move funding from 2021 to 2022 to line up with expectations for payment of implementation services. 6) Add budget for temporary labor or professional services for assistance in labor negotiations. 7) Add revenue and expenditure budget related to grants awarded to the City. 8) Adjust revenue and expenditure budget related to credit card fees to reflect a new processing structure. 9) Adjust revenue and expenditure budget for structural review contracts as authorized by Council on April 5, 2021. 10) Add revenue and expenditure budget for school speed zone cameras. Cameras are expected to generate enough revenue to cover costs. Any revenue above total expenditures will be address via a budget amendment in 2022. 11) Increase one jail alternative specialist from 0.75 FTE to 1.0 FTE and reclassify to court support services case manager. Council gave consensus for this change at the August 23, 2021, Committee of the Whole meeting. 12) Increase fire department budget to account for increased overtime usage. Partial funding for this increase comes from revenue exceeding budget, reimbursable overtime (COVID test site, and repeater malfunction) and ARPA funding for minimum staffing from 12 to 13. 13) Add budget to fire department for contracts related to the Fire Advisory Task Force. Council provided consensus for this at the June 14, 2021, Committee of the Whole and continued discussion at the September 27, 2021, Committee of the Whole. 14) True up debt transfers from the general fund to reflect savings from refunding debt earlier in 2021. 15) Add budgeted transfer from the general fund to the land acq., rec., & park dev. Fund for 1% for arts. This was inadvertently omitted from the draft 2021 — 2022 biennial budget. 19 INFORMATIONAL MEMO Page 4 16) Transfer solid waste utility tax revenue collected in 2020 from the general fund to the arterial street fund. Amount is in excess of budget transfer authority for 2020. Per Ordinance No. 2609 revenue in excess of 6% will be dedicated to road maintenance and road related projects. 17) Council consensus to provide funding for EIS for alternative access study. Transfer of general fund ending fund balance in excess of reserve requirements. Any unused funds in 2022 would be moved to the upcoming 2023 - 2024 biennium. 18) Adjust budget to reflect additional sales tax revenue above budget and add back streamline sales tax revenue. 19) Owner City funding for South Correctional Entity (SCORE) As a reference, the chart below summarizes the final amendment related to ARPA. Funding for SeeClickFix has been added (line 15), business assistance (line 7) shifted $5 thousand from 2022 to 2021 but the total request is still $200 thousand. Upgrading council chambers (line 10) shifted $8 thousand from 2022 to 2021 but the total request is still $208 thousand. 2021 2022 Total ARPA Funding Category 1 Parks Staff 80,000 2 Street Staff 167,500 3 DCD Staff 125,000 4 Rec Program (Summer Camp) 50,000 5 DarkTrace - Cyber Security 25,000 6 After School Program 84,000 7 Business Assistance 15,000 8 Utility/Rental Assistance - 9 Traffic Calming 100,000 10 Upgrade Council Chambers 18,000 11 SCORE 12 Fire Minimum Staffing 225,000 13 Community Connectors 14 ARPA Financial Analyst 15 SeeClickFix 160,000 240,000 Revenue Loss, Government Services 335,000 502,500 Revenue Loss, Government Services 300,000 425,000 Revenue Loss, Government Services 100,000 150,000 Revenue Loss, Government Services 25,000 50,000 Revenue Loss, Government Services 170,000 254,000 Revenue Loss, Government Services 185,000 200,000 Public Health and Negative Economic Impacts 500,000 500,000 Assistance to businesses, households 400,000 200,000 - - Revenue Loss, Government Services 300,000 525,000 Revenue Loss, Government Services 25,000 160,000 500,000 Revenue Loss, Government Services 218,000 Public Health and negative Economic Impacts 25,000 Revenue Loss, Government Services 160,000 Public Health and Negative Economic Impacts 15,000 - 15,000 Revenue Loss, Government Services Total See SST Memo dated March 16, 2021 20 904,500 2,860,000 3,764,500 INFORMATIONAL MEMO Page 5 Other Funds Included in the proposed budget amendments are amendments in other funds. The footnotes below the chart on the next page provide additional details about each proposed amendment. Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Lodging tax - Fund 101 1 Personnel contract obligations 3,089 Total Lodging Tax Amendments $ - $ - $ - $ 3,089 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Drug Seizure - Fund 109 2 Transfer of Drug Seizure funds to fleet for 2020 UTV purchase 26,000 Total Drug Seizure Fund Amendments $ - $ 26,000 $ - $ Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Residential Streets - Fund 103 3 Traffic Calming Program (ARPA funding from General Fund) 100,000 100,000 400,000 400,000 Total Residential Street Amendments $ 100,000 $ 100,000 $ 400,000 $ 400,000 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Bridges & Arterial Street - Fund 104 1 Personnel contract obligations 11,826 Bridges & Arterial Street - Fund 104 4 Transfer of Park Impact Fees from fund 104 to fund 301 to realign funds with planned projects 485,000 Bridges & Arterial Street - Fund 104 5 Transfer -in from General fund of prior year solid waste taxes (in excess of 2020 authorized transfer) 192,102 Bridges & Arterial Street - Fund 104 6 Transfer of amounts related to 2020 REET receipts that were coded to fund 301 Parks levy in error, transferring to funds 104 and 305 74,750 Bridges & Arterial Street - Fund 104 7 EIS for Altemative access study, transfer -in and expenditures budgets (General fund transfer to Arterial Streets Fund 104) 1,300,000 1,300,000 Bridges & Arterial Street -Fund 104 8 Carryforward of revenue & expenditure for West Valley Highway project to 2022 (2,000,000) (3,200,000) 2,000,000 3,200,000 Bridges & Arterial Street - Fund 104 9 Adjust budget for Solid Waste Utility Tax revenues to reflect better than expected results compared to adopted budgets 300,000 100,000 Bridges & Arterial Street - Fund 104 9 Adjust Parking Tax revenues to reflect better than expected results compared to adopted budget 200,000 Bridges & Arterial Street - Fund 104 9 PSRC grant - 42nd Bridge 100,000 100,000 1,400,000 1,400,000 Bridges & Arterial Street - Fund 104 10 New TIB grant for West Valley Highway 2,100,000 Total Bridges& Arterial Street Amendments $ (1,133,148) $ (2,615,000) $ 6,900,000 $ 5,911,826 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Land Acq, Rec., & Park Dev. - Fund 301 11 Arts 1% transfer for General Fund (missed in adopted budget) 750 6,350 Land Acq, Rec., & Park Dev. - Fund 301 4 Transfer of Park Impact Fees from fund 104 to fund 301 to realign funds with planned projects 485,000 Land Acq, Rec., & Park Dev. - Fund 301 6 Transfer of amounts related to 2020 REET receipts that were coded to fund 301 Parks levy in error, transferring to funds 104 and 305 149,500 _ Total Land Acq., Rec., & Park Dev. Amendments $ 485,750 $ 149,500 $ 6,350 $ - Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Urban Renewal - Fund 302 12 Adjust Software ERP Project transfers -in to reflect amount needed for 2021, carryforward balance to 2022 (410,000) 410,000 Total Urban Renewal Amendments $ - $ (410,000) $ - $ 410,000 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Public Safety Plan - Fund 305 6 Transfer of amounts related to 2020 REET receipts that were coded to fund 301 Parks levy in error, transferring to funds 104 and 305 74,750 Public Safety Plan - Fund 305 13 Funds from Healthpoint land sale revenue in 2021, added for transparency; sufficient budget authority in adopted budget Total Public Safety Plan Amendments $ 74,750 $ - $ - $ - Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure City Facilities (PW Shops) - Fund 306 14 Funding transfer -in for Public Works Shops phase 1 project (carryforward of 2020 unused amount) 650,000 City Facilities (PW Shops) - Fund 306 14 Funding transfer -in for Minkler improvements (carryforward of 2020 unused amount) 500,000 City Facilities (PW Shops) - Fund 306 8 PW Shop carryover construction budget from 2021 to 2022 (1,200,000) 1,200,000 City Facilities (PW Shops) - Fund 306 8 Carryforward 2020 of Minkler Improvement budget to align with project costs 225,000 Total City Facilities (PW Shops) Amendments $ 1,150,000 $ (1,200,000) $ - $ 1,425,000 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure LTGO Debt Service - Fund 2XX 15 LTGO Bonds 2021 (Refunding of LTGO 2011 and 2014) 3,870,500 3,574,987 LTGO Debt Service - Fund 2)0( 15 Reduction of debt service transfers due to refunding's/debt issuance (322,067) Total LTGO Debt Service Amendments $ 3,548,433 $ 3,574,987 $ - $ - Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Golf Course - Fund 411 1 Personnel contract obligations 45,136 45,586 Golf Course - Fund 411 16 Operational adjustments due to better than projected market conditions 700,000 115,000 Golf Course - Fund 411 13 Increase a 0.75 FTE to 1.0 FTE, revenue neutral due to reductions to other personnel costs. - Total Golf Course Amendments $ 700,000 $ 160,136 $ - $ 45,586 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Water - Fund 401 1 Personnel contract obligations 30,442 Water - Fund 401 14 Funding transfer -out for Public Works Shops phase 1 project (carryforward of 2020 unused amount) 221,000 Total Water Amendments $ - $ 221,000 $ - $ 30,442 21 INFORMATIONAL MEMO Page 6 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Sewer - Fund 402 1 Personnel contract obligations 31,124 Sewer - Fund 402 14 Funding transfer -out for Public Works Shops phase 1 project (carryforward of 2020 unused amount) 123,500 Sewer - Fund 402 14 Minkler Improsements funding transfer 500,000 Total Sewer Amendments $ - $ 623,500 $ - $ 31,124 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Surface Water - Fund 412 1 Personnel contract obligations 52,913 Surface Water -Fund 412 14 Funding transfer -out for Public Works Shops phase 1 project (carryforward of 2020 unused amount) 305,500 Total Surface Water Amendments $ - $ 305,500 $ - $ 52,913 Fund Footnote Description of Proposed Amendment 2021 2022 Revenue Expenditure Revenue Expenditure Equipment Rental & Replacement (501) 1 Personnel contract obligations 17,244 Equipment Rental & Replacement (501) 2 Transfer of Drug Seizure funds to fleet for 2020 UN purchase 26,000 Equipment Rental & Replacement (501) 17 Carryforward of 2020 budget for Vactor truck (missed on 2021 budget) 600,000 Equipment Rental & Replacement (501) 17 Surplus of 5 PD motorcycles, replaced with 3 pursuit rated F150's (to be leased) 105,000 Total Equipment Rental & Replacement Amendments $ 26,000 $ 705,000 $ - $ 17,244 1) Adjust budget for personnel contractual obligations, estimates included for open contracts. 2) Fleet purchased a police vehicle for drug seizure operations. Need to transfer funds from the drug seizure fund to fleet to cover this purchase. 3) Use of ARPA funds to restore budget for traffic calming projects in the residential street fund. Budget is proposed and actual costs may be slightly higher or lower than budget. ARPA funds would be transferred up to the total expenditure of the applicable projects only. 4) Park impact fees are allocated to certain projects that reside in Bridges and Arterial Streets (Fund 104) and Land Acquisition, Recreation, and Park Development (Fund 301). This amendment moves fees from Arterial Streets to Land Acquisition, Recreation, and Park Development to align with the correct projects. 5) Transfer solid waste utility tax revenue collected in 2020 from the general fund to the arterial street fund. Amount is in excess of budget transfer authority for 2020. Per Ordinance No. 2609 revenue in excess of 6% will be dedicated to road maintenance and road related projects. 6) Correct prior year accounting issue. REET funds were deposited into fund 301 land acq., rec., & park development but should have been deposited into funds 104 arterial street and 305 public safety plan. 7) Council consensus to provide funding for EIS for alternative access study. Transfer of general fund ending fund balance in excess of reserve requirements. Any unused funds in 2022 would be moved to the upcoming 2023 — 2024 biennium. 8) Project costs expected to be incurred in 2021 but will now be incurred in 2022. Projects include West Valley Highway (also includes transferring grant revenue from 2021 to 2022), PW Shops Phase I, and final costs for Minkler improvements. 9) Add budget for certain revenues that are expected to exceed budget. 10) Add new grant revenue to arterial street fund related to the West Valley Highway project. 11) Add budgeted transfer from the general fund to the land acq., rec., & park dev. Fund for 1% for arts. This was inadvertently omitted from the draft 2021 — 2022 biennial budget. 12) Adjust transfer of funding for ERP project from 2021 to 2022. Funding will not be needed until 2022. 13) Identify zero -dollar adjustments for transparency. 14) Transfer funding from utility funds to the city facilities — PW Shops fund. Transfer should have occurred in 2020, budget authority needed to do the transfers in 2021. 15) True up debt transfers from the general fund to reflect savings from refunding debt earlier in 2021 and add budget to reflect debt refunding (revenue and expenditure). 16) Foster Golf Course experienced stronger than expected business in 2020 resulting in both higher revenue and expenditures. 22 INFORMATIONAL MEMO Page 7 17) Adjust fleet fund purchases to reflect carry over from 2020 the purchase of the Vactor truck and replacing 5 police motorcycles with 3 F150s. No additional funding is necessary for these purchases. In addition to the budget amendments proposed for other funds, beginning fund balances in various funds are also being adjusted to true up to actual beginning fund balances. RECOMMENDATION The Council is asked to approve the Budget Amendment ordinance and consider this item at the November 8, 2021, Committee of the Whole, and November 15, 2020, Regular Council Meeting. ATTACHMENTS Draft Ordinance Proposed Budget Changes — Summary by Fund Reconciliation of 2021-2022 Budget Summary to Ordinance 23 24 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2641, WHICH ADOPTED THE CITY OF TUKWILA'S BIENNIAL BUDGET FOR THE 2021-2022 BIENNIUM; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on December 7, 2020, the City Council of the City of Tukwila adopted Ordinance No. 2641, which adopted the 2021 - 2022 biennial budget of the City of Tukwila; and WHEREAS, a mid -biennium budget amendment was presented to the City Council in a timely manner for their review, in accordance with RCW 35A.34.130; and WHEREAS, on November 8, 2021, following required public notification, the City Council conducted a public hearing on the proposed mid -biennium budget amendment; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance Amended. Tukwila Ordinance No. 2641 is hereby amended with the City Council's adoption of the document entitled "City of Tukwila Year -End Budget Amendment [2021-2022 Biennium] (Reconciliation of Budget Summary to Ordinance)," attached hereto and incorporated by this reference as if fully set forth herein, in accordance with RCW 35A.33.075. Section 2. Cost of living adjustments (COLAs) for non -represented employees shall be implemented per the City Council's Compensation Policy. Section 3. Estimated Revenues and Appropriations. The totals of the estimated revenues and appropriations for each separate fund and the aggregate totals are as follows: CC: Legislative Development\Budget amendment 2021-2022 10-4-21 VC:bjs Page 1 of 3 25 FUND EXPENDITURES REVENUES 000 General $152,087,096 $152,087,096 105 Contingency $6,488,169 $6,488,169 101 Lodging Tax $2,574,389 $2,574,389 103 Residential Streets $5,049,912 $5,049,912 104 Bridges and Arterial Streets $16,978,042 $16,978,042 109 Drug Seizure $462,534 $462,534 2XX LTGO Debt Service $16,996,870 $16,996,870 206 LID Guaranty $7,989,959 $7,989,959 213 UTGO Bonds $726,813 $726,813 233 2013 LID $1,804,572 $1,804,572 301 Land Acquisition, Recreation & Park Dev. $4,678,120 $4,678,120 302 Urban Renewal $4,137,144 $4,137,144 303 General Government Improvements $813,648 $813,648 304 Fire Impact Fees $601,000 $601,000 305 Public Safety Plan $16,044,013 $16,044,013 306 City Facilities $9,600,862 $9,600,862 401 Water $20,110,207 $20,110,207 402 Sewer $33,681,976 $33,681,976 411 Foster Golf Course $4,910,239 $4,910,239 412 Surface Water $24,275,236 $24,275,236 501 Equipment Rental and Replacement $9,526,432 $9,526,432 502 Employee Healthcare Plan $16,931,588 $16,931,588 503 LEOFF 1 Retiree Healthcare Plan $1,088,595 $1,088,595 611 Firemen's Pension $1,657,456 $1,657,456 Total $359,214,871 $359,214,871 Section 4. Copies on File. The City of Tukwila's Biennial Budget for the 2021-2022 biennium shall be updated to reflect changes approved by the City Council. A copy of this amending ordinance shall be kept on file in the City Clerk's Office, and a copy shall be transmitted by the City Clerk to the Division of Municipal Corporations of the Office of the State Auditor and to the Association of Washington Cities. Section 5. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. CC: Legislative Development\Budget amendment 2021-2022 10-4-21 VC:bjs 26 Page 2 of 3 Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2021. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Allan Ekberg, Mayor APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Office of the City Attorney Attachment: City of Tukwila Year -End Budget Amendment [2021-2022 Biennium] (Reconciliation of Budget Summary to Ordinance) CC: Legislative Development\Budget amendment 2021-2022 10-4-21 VC:bjs Page 3 of 3 27 28 City of Tukwila Year -End Budget Amendment Reconciliation of Budget Summary to Ordinance REVENUES 2021 Beginning Fund Balance 2021 Revenues 2022 Revenues Total Revenues Mid -Biennial Amendment Total Revenues Beg. Fund Balance Adj. 2021 2022 '000 General $ 11,631,350 $ 62,749,717 $ 67,597,992 $ 141,979,059 $ 1,050,153 $ 3,451,192 $ 5,606,692 $ 152,087,096 105 Contingency 7,101,978 20,000 20,000 7,141,978 (653,809) - - 6,488,169 101 Lodging Tax 1,742,844 406,000 456,000 2,604,844 (30,455) - - 2,574,389 103 Residential Street 114,810 589,000 3,456,000 4,159,810 390,102 100,000 400,000 5,049,912 104 Arterial Street 1,327,257 6,481,000 3,311,000 11,119,257 91,933 (1,133,148) 6,900,000 16,978,042 109 Drug Seizure Fund 333,243 60,500 70,500 464,243 (1,709) - - 462,534 2XX LTGO Debt Service 381,630 4,382,338 8,645,004 13,408,972 39,465 3,548,433 - 16,996,870 213 UTGO Bonds 76,339 3,605,000 4,375,000 8,056,339 (66,380) - - 7,989,959 206 LID Guaranty 719,137 3,000 3,000 725,137 1,676 1,676 726,813 233 2013 LID 692,373 601,000 581,000 1,874,373 (69,801) (69,801) 1,804,572 301 Land Acquisition, Recreation & Park Dev. 2,171,922 1,942,800 475,940 4,590,662 (404,642) 485,750 6,350 4,678,120 302 Urban Renewal 1,835,169 410,000 1,860,000 4,105,169 31,975 - - 4,137,144 303 General Government Improvements 500,021 300,500 500 801,021 12,627 - - 813,648 304 Fire Impact Fees 9,259 300,500 300,500 610,259 (9,259) - - 601,000 305 Public Safety Plan 147,873 6,705,000 6,100,000 12,952,873 3,016,390 74,750 - 16,044,013 306 City Facilities 4,249,144 3,450,000 - 7,699,144 751,718 1,150,000 - 9,600,862 401 Water 6,170,864 6,722,000 6,947,000 19,839,864 270,343 - - 20,110,207 402 Sewer 12,762,798 10,032,000 10,285,000 33,079,798 602,178 - - 33,681,976 411 Foster Golf Course 873,520 1,818,000 1,850,000 4,541,520 (331,281) 700,000 - 4,910,239 412 Surface Water 5,385,674 8,883,000 10,509,000 24,777,674 (502,438) - - 24,275,236 501 Equipment Rental 2,969,227 2,784,818 2,365,831 8,119,876 1,380,556 26,000 - 9,526,432 502 Insurance Fund 642,799 8,118,924 8,725,122 17,486,845 (555,257) - - 16,931,588 503 Insurance - LEOFF 1 Fund 243,203 316,000 436,000 995,203 93,392 - - 1,088,595 611 Firemen's Pension 1,516,780 70,000 70,000 1,656,780 676 - - 1,657,456 Total $ 63,599,214 $ 130,751,097 $ 138,440,389 $ 332,790,700 $ 5,108,152 $ 8,402,977 $ 12,913,042 $ 359,214,871 EXPENDITURES 2021 Expenditures 2022 Expenditures 2022 Ending Fund Balance Total Expenditures Mid -Biennial Amendment Total Expenditures 2021 2022 Mid -Biennial Net Effect on 2022 Ending Fund Balance F000 General $ 63,146,050 $ 66,974,260 $ 11,858,749 $ 141,979,059 $ 2,344,067 $ 7,608,240 $ 155,730 $ 152,087,096 105 Contingency - - 7,141,978 7,141,978 - - (653,809) 6,488,169 101 Lodging Tax 1,101,781 1,013,209 489,854 2,604,844 - 3,089 (33,544) 2,574,389 103 Residential Street 369,000 3,610,000 180,810 4,159,810 100,000 400,000 390,102 5,049,912 104 Arterial Street 6,865,301 3,395,273 858,683 11,119,257 (2,615,000) 5,911,826 2,561,959 16,978,042 109 Drug Seizure Fund 200,000 40,000 224,243 464,243 26,000 - (27,709) 462,534 DOC LTGO Debt SeMce 4,740,338 8,643,004 25,630 13,408,972 3,574,987 - 12,911 16,996,870 213 UTGO Bonds 3,602,975 4,374,975 78,389 8,056,339 - - (66,380) 7,989,959 206 LID Guaranty - - 725,137 725,137 1,676 726,813 233 2013 LID 648,588 628,563 597,222 1,874,373 (69,801) 1,804,572 301 Land Acquisition, Recreation & Park Dev. 2,505,000 505,000 1,580,662 4,590,662 149,500 - (62,042) 4,678,120 302 Urban Renewal 1235,000 2,786,000 84,169 4,105,169 (410,000) 410,000 31,975 4,137,144 303 General Government Improvements 240,000 200,000 361,021 801,021 - - 12,627 813,648 304 Fire Improvements 300,000 300,000 10,259 610,259 - - (9,259) 601,000 305 Public Safety Plan 2,967,817 2,390,467 7,594,589 12,952,873 - - 3,091,140 16,044,013 306 City Facilities 7,662,408 - 36,736 7,699,144 (1,200,000) 1,425,000 1,676,718 9,600,862 401 Water 8,555,244 9,689,329 1,595,291 19,839,864 221,000 30,442 18,901 20,110,207 402 Sewer 11,751,296 11,801,825 9,526,677 33,079,798 623,500 31,124 (52,446) 33,681,976 411 Foster Golf Course 1,843,879 1,844,993 852,648 4,541,520 160,136 45,586 162,997 4,910,239 412 Surface Water 8,826,614 11,789,938 4,161,122 24,777,674 305,500 52,913 (860,851) 24,275,236 501 Equipment Rental 2,854,868 2,252,165 3,012,843 8,119,876 705,000 17,244 684,312 9,526,432 502 Insurance Fund 8,136,454 8,710,402 639,989 17,486,845 - - (555,257) 16,931,588 503 Insurance- LEOFF 1 Fund 486,920 497,040 11243 995,203 - - 93,392 1,088,595 611 Firemen's Pension 65,000 65,000 1,526,780 1,656,780 - - 676 1,657,456 Total' $ 138,104,533 $ 141,511,443 $ 53,174,724 $ 332,790,700 $ 3,984,690 $ 15,935,464 $ 6,504,017 $ 359,214,871 29 Proposed Budget Changes - Summary by Fund Ending Fund Balance Proposed Adopted Proposed Revised Budget Amendments Budget 13,352,295 1,016,608 166,034 coO0 W cr co 0 LL') CO co 03 00)1 O r N- N N 724,912 2,516,741 co 0 M e- Oa N N 7 ,- ,- co O .- LO co- U5 00) Lo V CO 0 CO W CO r) 4,386,963 11, 022,180 1,056,224 4,634,122 3,600,733 70,012 165,675 1,522,456 0 N- N N N: _ N (30,455) (27,709) (653,809) ,- O N e- O In CO N CO CO CO CO CO 390,102 1,573,785 (68,392) 441,975 r N- N L0 CO N N 0) ,- 3,091,140 3,101,718 CO N V N CO CO O) V N CO CO CO CO Ln O W r 0 0 N) CO0 701,556 (555,257) N 0 0) N- CO. CO M nO O M N 1,047,063 193,743 7,121,978 co CO i N 00 N M O) o5 (OD M O- U) -,0. t0) M 0 M O) 1,609,722 1,010,169 N L) LC) I- COO 01 LO 3,885,056 36,736 4,337,620 11,043,502 847,641 5,442,060 2,899,177 625,269 72,283 1,521,780 Expenditure Proposed Adopted Proposed Revised Budget Amendments Budget N- 0 Ln CO 1,101,781 226,000 8,315,325 3,602,975 648,588 469,000 4,250,301 2,654,500 825,000 240,000 300,000 2,967,817 6,462,408 8,776,244 12,374,796 2,004,015 9,132,114 3,559,868 8,136,454 486,920 65,000 O - Oi V h N. 312,860 305,944 75,568 225,926 1,070,000 233,052 (29, 215) 0 0 0) co co c.i. 26,000 03 O) V N- co M 100,000 (2,615,000) 149,500 (410,000) O . O O O N 221,000 623,500 160,136 305,500 705,000 63,146,050 ' 1,101,781 200,000 4,740,338 3,602,975 648,588 O O O CO O) Ln co (OO CO C6 O O O O Ln Q) LV) N co IV 240,000 300,000 2,967,817 7,662,408 0 00) N N Ln N n I6 .- 1,843,879 8,826,614 2,854,868 8,136,454 486,920 65,000 Revenue Proposed Adopted Proposed Revised Budget Amendments Budget 0 O) Ln co LO 0 406,000 60,500 0 0 O N N. N- O OM) N- 3,605,000 604,000 689,000 5,347,852 2,428,550 410,000 300,500 300,500 6,779,750 4,600,000 6,722,000 10,032,000 2,518,000 8,883,000 W N 0 0) O 0 OJ N 0 316,000 70,000 N CO Co 126,000 45,000 000'0LE 000'69 2,802,500 3,436,192 M M 05v LO M 100,000 (1,133,148) 485,750 74,750 1,150,000 700,000 26,000 • N- r 0) 03 I, N co 406,000 60,500 20,000 4,382,338 3,605,000 604,000 589,000 6,481,000 0 0 0 0 N O N O 7 N- 0) 7 N_ 300,500 300,500 6,705,000 3,450,000 6,722,000 10,032,000 1,818,000 8,883,000 2,784,818 8,118,924 316,000 70,000 Beginning Fund Balance Proposed Adopted Proposed Revised Budget Amendments Budget co N OO U) NCO 1,712,389 331,534 coO CO V Cl- 421,095 coOU) O co 0) M V C") ,- 504,912 1,419,190 co a N N- r r CO CO 1- N e- a CO ' N T- N 3,164,263 5,000,862 6,441,207 13,364,976 542,239 4,883,236 4,349,783 87,542 00)) co LC) V CO r CO T- CO N 1,050,153' (30,455) (1,709) (653,809) 39,465 (66,380) (68,125) 390,102 91,933 (404,642) 31,975 N- O) CCOO N N- O) `-' 3,016,390 751,718 270,343 602,178 ,- CO CO CO CV M O CO V) CO N N N CS Lri CO LI] CO Lf) N CO M CO M 0) 11,631, 350 1,742,844 333,243 CO r O) 0 r 381,630 76,339 1,411,510 114,810 1,327,257 2,171,922 1,835,169 500,021 9,259 147,873 4,249,144 6,170,864 12,762,798 873,520 5,385,674 N 0 0) ) N r 05.N 0 , CN 0 N CO CO N 1.-- `O) M CO N N 00 O N a 7 LL General Fund Depts. Council Mayor Administrative Services Finance Recreation & Parks Community Development Municipal Court m a Public Works Transfers General Revenue Total General Fund Special Revenue Funds: Lodging Tax Drug Seizure >, U C C c c U Debt Service Funds: LTGO Debt Service Funds (2)0X) UTGO Debt Service Fund LID/Guaranty Capital Projects Funds: Residential Streets Bridges and Arterial Streets Land Acquisition, Rec. and Park Dev. Urban Renewal General Government Fire Impact Fees Public Safety Plan City Facilities (PW Shops) Enterprise Funds: 3v m 0 Golf Surface Water Internal Service Funds: Equipment Rental and Replacement Employee Healthcare Plan LEOFF 1 Retiree Healthcare Plan Firemen's Pension r N N n U) m 0C O V LO O V Gi IA CO N- V N arkN M N N 03 C' C0 O O 7 IA CO CO O N n M_ M 0 r to tb N U) W O L(') a N T N M 30 din Fund Balance Proposed Proposed Revised Amendments Budget 7 7 m co LO c0 (O co- 6,488,169 W co 12,009 1 254 234 570,912 3,420,642 CND N CO co c— 373,648 1,000 10,685,729 1,713,454 1,614,192 9,474,231 N N O O M 3,697,155 84,732 104,635 1,527,456 (2,001,548) S p CO I 1 d ,_ . Co Co O) 6,350 (410,000) i S O N Co a V CV 7 CO CO (45,586) (52,913) (17,244) En Adopted Budget 13,976,027 459,399 196,534 CO 4 N N No 12,009 1,254,234 570,912 2,432,468 1,512,270 526,144 373,648 1,000 r V cep M OCM CCO O CO N ,-T.- CO CO O CO M 3,714,399 84,732 104,635 1,527,456 Expenditure Proposed Adopted Proposed Revised Budget Amendments Budget 74,597,500 1,016,298 40,000 8 0 Co CoW 4,374,975 628,563 4,010,000 9,307,099 505,000 3,196,000 200,000 300,000 2,390,467 1,425,000 9,719,771 11,832,949 1,890,579 11,842,851 2,269,409 8,710,402 497,040 65,000 u) NN_ Vi 458,851 1,039,981 e- S'., ai O A o O 549,053 293,694 945,056 1,169, 907 644,590 1,706, 350 7,623,240 3,089 400,000 5,911,826 410,000 O 0 N N 30,442 31,124 45,586 52,913 V N ' N .- ' ' o CO N C6 O 1,013,209 40,000 8,643,004 4,374,975 628,563 3,610,000 3,395,273 505,000 2,786,000 200,000 300,000 r 0 .7 ' N 9,689,329 11,801,825 co co CD CO O W 2,252,165 8,710,402 497,040 65,000 Revenue Proposed Adopted Proposed Revised Budget Amendments Budget 73,219,684 456,000 70,500 20,000 8,645,004 4,375,000 584,000 3,856,000 10,211,000 482,290 1,860,000 500 300,500 6,100,000 6,947,000 10,285,000 1,850,000 10,509,000 N m N 03 N N CD N CO N- N CO 436,000 70,000 N A ri h (45, 000) 180,000 252,000 100,000 5,077,000 5,621,692 400,000 6,900,000 6,350 0) O r N n m 456,000 70,500 20,000 O O N o0 4,375,000 584,000 3,456,000 3,311,000 475,940 1,860,000 500 300,500 6,100,000 6,947,000 10,285,000 1,850,000 10,509,000 2,365,831 8,725,122 436,000 70,000 Benning Fund Balance Proposed Adopted Proposed Revised Budget Amendments Budget N N co 1,016,608 166,034 . W OV N 11,984 1,298,797 724,912 2,516,741 1,541,330 1,452,144 573,148 500 H 4,386,963 11,022,180 N c0 -c .- cc 3,600,733 70,012 165,675 1,522,456 N N N co CO CO 1,016,608 166,034 W O W co V Co 36,541 Tr I- O..- O I- r co -a .- O) N — N N O N. co N .- I- N cV O M m .-.- N Co LC) N 7 — — CO O d' co N CO 0) LO c0 7 O) LO .- V cO 0) N W N N C7 4,386,963 11,022,180 a N N N N.- V . •cO O co .- 3,600,733 70,012 c0 CO r LO N R c!) N O N Ln N N 0 N 'O C 7 U. General Fund Depts. I Council Mayor Administrative Services Finance Recreation 8 Parks Community Development 1 Municipal Court Police Fire Public Works Transfers General Revenue _ Total General Fund Special Revenue Funds: Lodging Tax Drug Seizure Contingency Debt Service Funds: LTGO Debt Service Funds (2)00) UTGO Debt Service Fund LID/Guaranty Capital Projects Funds: Residential Streets Bridges and Arterial Streets Land Acquisition, Rec. and Park Dev. Urban Renewal General Government Fire Impact Fees Public Safety Plan City Facilities (PW Shops) Enterprise Funds: d 3 m cO Golf Surface Water Internal Service Funds: Equipment Rental and Replacement Employee Healthcare Plan LEOFF 1 Retiree Healthcare Plan Firemen's Pension 31 32 City of Tukwila City Council Finance & Governance Committee Meeting Minutes October25, 2021 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency Councilmembers Present: Staff Present: Zak Idan, Chair; Kathy Hougardy, Cynthia Delostrinos Johnson David Cline, Rachel Bianchi, Vicky Carlsen, Laurel Humphrey, Tony Cullerton, John Dunn, Tracy Gallaway, Nora Gierloff Chair Idan called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Foster Golf Links Capital Purchases Staff is seeking Council approval of the purchase of a Rough Mower, Reel Grinder, and Tractor & Backhoe in total amount of $178,000 as well as 17 replacement carts in total amount of less than $80,000. Committee Recommendation Unanimous approval. Forward to November 1, 2021 Regular Consent Agenda. B. Monthly General Fund Report Staff presented the report. Committee Recommendation Discussion only. C. Tax Levy Legislation Staff is seeking Council approval of ordinances to increase the regular tax levy from 2021 and adopt the general and excess property tax levy for 2022. Committee Recommendation Unanimous approval. Forward to November 8, 2021 Committee of the Whole. D. Ordinance: 2021-2022 Mid -Biennium Budget Amendment Staff is seeking Council approval of an ordinance to amend the 2021-2022 budget to include *housekeeping, ARPA, general fund revenue streams, personnel obligations, and revenue backed projects/programs. Committee Recommendation Unanimous approval. Forward to November 8, 2021 Committee of the Whole. 33