HomeMy WebLinkAboutFIN 2022-02-14 COMPLETE AGENDA PACKETCity of Tukwila
Finance and Governance
Committee
De'Sean Quinn, Chair
O Kate Kruller
O Cynthia Delostrinos Johnson
AGENDA
Distribution:
D. Quinn
K. Kruller
C. Delostrinos Johnson
T. McLeod
K. Hougardy
M. Abdi
T. Sharp
Mayor Ekberg
D. Cline
R. Bianchi
C. O'Flaherty
A. Youn
L. Humphrey
MONDAY, FEBRUARY 14, 2022 — 5:30 PM
THIS MEETING WILL NOT BE CONDUCTED AT CITY FACILITIES
BASED ON THE GOVERNOR'S PROCLAMATION 20-28.
THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS
MEETING IS: 1-253-292-9750, Access Code 118148336#
Click here to: Join Microsoft Teams Meeting
For Technical Support during the meeting call: 1-206-433-7155.
Item
Recommended Action
1. BUSINESS AGENDA
a. Contingent -based sales tax audit.
a. Discussion only.
Pg.1
Tony Cullerton, Deputy Finance Director
b. 2021 General Fund preliminary results.
b. Discussion only.
Pg.3
Vicky Carlsen, finance Director
c. Technology and Infrastructure Services Department
b. Discussion only.
Pg.7
2021 Annual Report.
Joel Bush, Chief Technology Officer
2. MISCELLANEOUS
Next Scheduled Meeting: February 28, 2022
S. The City of Tukwila strives to accommodate individuals with disabilities.
Please contact the City Clerk's Office at 206-433-1800 (TukwilaCityClerk@TukwilaWA.gov) for assistance.
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Vicky Carlsen, Finance Director
BY: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: February 14, 2022
SUBJECT: Contingent Based Sales Tax Audit
ISSUE
Staff would like to share with the Finance & Governance Committee our intent to enter
into a contingent agreement with Azavar Government Solutions for the purpose of
identifying and collecting misdirected sales tax revenues due to the City of Tukwila but
being allocated to other neighboring jurisdictions.
BACKGROUND
The City of Tukwila receives sales tax revenues directly from the Department of
Revenue (DOR), that has been collected by businesses and remitted to DOR. The City
is interested in answering the question, is the City collecting all sales tax revenue that
they are entitled to receive? Tukwila shares three zip codes with neighboring cities
causing confusing of the correct jurisdiction to allocate tax revenues. Additionally, the
City of Seattle's location code is 1726, Tukwila's location code is 1729. When
businesses enter the City's location code, there have been instances of coding errors,
resulting in Tukwila sales tax being diverted to the City of Seattle. These are examples
of possible sales tax revenues due to Tukwila but are potentially being allocated to
neighboring jurisdictions.
DISCUSSION
Azavar Government Solutions assists municipalities with identifying and recovering
unremitted tax revenue. By utilizing address information provided by the City, and
business and tax id information supplied by DOR, Azavar applies geo-coding
technology to identify gaps and trends in remittance. Example would be identifying
businesses that are being coded incorrectly to other municipalities. Anomalies can
occur when USPS postal codes are used, or annexations are not kept current. Their
geo-coding technology is used to identify the correct jurisdiction a business should be
collecting tax revenue for. This service is provided on a contingent basis allowing for no
out of pocket expense to the City. The recovered revenue is shared by the City and
Azavar for thirty-six months, after which the City retains all of the ongoing sales tax
revenue. Azavar Government Solutions has previously provided their services to local
municipalities including College Place, Newcastle, Issaquah, and Brier.
FINANCIAL IMPACT
No out-of-pocket cost to the City. A specific percentage (40%) of new revenues
discovered through Azavar audit procedures is shared for a period of thirty-six months.
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2
INFORMATIONAL MEMO
Page 2
RECOMMENDATION
No action needed by the Finance & Governance Committee. This is for informational
purposes only.
ATTACHMENTS
None
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Finance/Azavar Informational Memorandum.docx
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z 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: February 14, 2021
SUBJECT: Preliminary Year-end 2021 General Fund Departmental Budget -to -Actuals Report
Summary
The purpose of the Preliminary Year-end 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 Preliminary 2021 Year-end Report is based on financial data available as of January 31, 2022, for the period
ending December 31, 2021. Additional details can be found within the included financial report.
Expenditures
General Fund departmental expenditures totaled $57.32 million through December, which is $2.74 million
less than the annual budget of $60.06 million. Department 20, which is transfers to other funds, totaled $5.31
million, which is $128 thousand less than the allocated budget. The allocated budget is calculated to reflect
year-to-date spending patterns of the previous year.
Again, these numbers are preliminary, and we will accrue expenditures back into 2021 until we can close the
books, typically some time in March.
Once 2021 is close, a full report of all funds will be provide to the Finance & Governance Committee and the full
City Council.
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INFORMATIONAL MEMO
Page 2
Departmental Variances
Year to Date Department Expenditures Compared to Allocated Budget
Through December 2021
City Council
Mayor's Office
Administrative Services
Finance
Recreation
Community Development
Municipal Court
Police
Fire
Public Works
Dept 20 -
$0 $5,000 $10,000 $15,000 $20,000
Thousands
■YTD Actual ■YTD Budget
GENERAL FUND
CITY OF TUKWILA
GENERAL FUND EXPENDITURES
Year -to -Date as of December 31, 2021
Percent of year completed
4
100%
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
$ 363,618
$ 381,903
$ 351,396
$ 333,702
$ (29,916)
92%
-8%
-5%
03
Mayor's Office
2,178,126
2,178,126
2,355,805
2,280,110
2,149,534
(28,592)
99%
-3%
-6%
04
Administrative Services
5,158,639
5,158,639
4,726,846
4,750,857
5,005,671
(152,968)
97%
1%
5%
05
Finance
2,991,615
2,991,615
2,392,462
2,402,140
2,436,778
(554,837)
81%
0%
1%
07
Recreation
4,573,403
4,573,403
5,061,090
4,273,655
4,244,077
(329,326)
93%
-16%
-1%
08
Community Development
4,375,887
4,375,887
3,557,282
3,278,151
3,898,258
(477,629)
89%
-8%
19%
09
Municipal Court
1,348,456
1,348,456
1,297,382
1,292,626
1,202,694
(145,762)
89%
0%
-7%
10
Police
18,512,591
18,512,591
18,907,947
17,682,031
18,021,395
(491,196)
97%
-6%
2%
11
Fire
13,736,860
13,736,860
12,562,278
12,850,658
13,562,013
(174,847)
99%
2%
6%
13
Public Works
6,817,377
6,817,377
7,615,085
6,379,120
6,467,121
(350,256)
95%
-16%
1%
Subtotal
60,056,572
60,056,572
58,858,079
55,540,744
57,321,243
(2,735,329)
95%
-6%
3%
20
Dept20
5,433,545
5,433,545
6,193,897
4,862,449
5,305,587
(127,957)
98%
-21%
9%
Total Expenditures
$ 65,490,117
$ 65,490,117
$ 65,051,976
$ 60,403,193
$ 62,626,831
$ (2,863,286)
96%
-7%
4%
Percent of year completed
4
100%
INFORMATIONAL MEMO
Page 3
GENERAL FUND
CITY OF TUKW ILA
GENERAL FUND EXPENDITURES
Year -to -Date as of December 31, 2021
Percent of year completed
100%
5
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
$ 29,325,215
$ 29,325,215
$ 28,550,123
$ 28,119,885
$ 27,887,462
$ (1,437,753)
95%
-2%
-1%
12
Extra Labor
515,220
515,220
819,391
131,789
206,427
(308,793)
40%
-84%
57%
13
Overtime
2,181,615
2,181,615
1,724,479
1,367,623
2,274,124
92,509
104%
-21%
66%
15
Holiday Pay
515,500
515,500
460,543
443,224
429,309
(86,191)
83%
-4%
-3%
21
FICA
1,922,890
1,922,890
1,858,800
1,739,528
1,774,345
(148,546)
92%
-6%
2%
22
Pension-LEOFF
899,828
899,828
970,203
1,020,215
953,421
53,593
106%
5%
-7%
23
Pension-PERS/PSERS
1,631,377
1,631,377
1,770,053
1,662,169
1,518,973
(112,404)
93%
-6%
-9%
24
Industrial Insurance
875,820
875,820
774,596
859,956
892,567
16,747
102%
11%
4%
25
Medical & Dental
6,904,119
6,904,119
5,745,036
6,486,004
6,736,673
(167,446)
98%
13%
4%
26
Unemployment
--
1,030,329
18,273
93,070
45,019
45,019
-
409%
-52%
28
Uniform/Clothing
8,525
8,525
6,353
4,734
6,489
(2,036)
76%
-25%
37%
Total Salaries & Benefits
$ 44,780,109
$ 44,780,109
$ 42,697,850
$ 41,928,197
$ 42,724,810
$ (2,055,299)
95%
-2%
2%
Percent of year completed
100%
5
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
$ 5,433,545
$ 5,433,545
$ 6,193,897
$ 4,862,449
$ 5,305,587
$ (127,957)
98%
-21%
9%
31
Supplies
1,092,211
1,092,211
1,544,004
893,023
972,510
(119,701)
89%
-42%
9%
34
Items Purchased for resale
13,000
13,000
17,794
2,624
3,274
(9,726)
25%
-85%
25%
35
Small Tools
66,450
66,450
116,159
140,071
150,257
83,807
226%
21%
7%
41
Professional Services
5,995,071
5,995,071
6,263,910
5,593,268
5,799,609
(195,462)
97%
-11%
4%
42
Communication
481,810
481,810
396,598
482,845
442,383
(39,427)
92%
22%
-8%
43
Travel
84,696
84,696
197,517
33,735
29,443
(55,253)
35%
-83%
-13%
44
Advertising
34,750
34,750
22,981
15,666
15,095
(19,655)
43%
-32%
-4%
45
Rentals and Leases
2,193,137
2,193,137
2,685,516
1,780,511
2,089,602
(103,535)
95%
-34%
17%
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
1,991,445
1,983,981
1,817,328
2,180,246
188,801
109%
-8%
20%
48
Repairs and Maintenance
651,669
651,669
717,261
884,776
715,830
64,161
110%
23%
-19%
49
Miscellaneous
1,123,230
1,123,230
1,224,377
949,675
969,334
(153,896)
86%
-22%
2%
64
Machinery& Equipment
518,665
518,665
100,174
31,353
114,969
(403,696)
22%
-69%
267%
Total Operating Expenses
20,710,008
20,710,008
22,354,126
18,474,996
19,902,021
(807,987)
96%
-17%
8%
Total Expenses
$65,490,117
$65,490,117
$65,051,976
$60,403,193
$62,626,831
$ (2,863,286)
96%
-7%
4%
Percent of year completed
100%
5
6
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Services and Safety Committee
FROM: Joel Bush and Chief Technology Officer
CC: Mayor Ekberg
DATE: 2/08/2022
SUBJECT: Technology & Innovation Services 2021 Annual Report
ISSUE
Provide a report out on Technology and Innovation Service's 2021 accomplishments.
BACKGROUND
Technology and Innovation Services is sharing 2021 accomplishments with Community
Services and Safety Committee to impart how technology contributes to the achievement of the
City of Tukwila's goals and objectives.
FINANCIAL IMPACT
None
RECOMMENDATION
Information Only.
ATTACHMENTS
Report
7
Technology & Innovation Services Annual Report
2021 continued to evolve the hybrid -virtual City. With the ever-changing landscape of the pandemic,
2021 brought agile to a new level. Staff members were using technology on site, off-site, and
everywhere in-between. TIS rose to the challenge, enhancing security, enabling self-service, supporting
cloud services, and maintaining a high level of one-on-one user support for staff.
TIS Operations spent much of their time in 2021
addressing hybrid meeting technologies
throughout the City to support physical and
remote meeting attendees at the Tukwila
Municipal Court, City Council Chambers and
Committee meeting rooms, connecting Council,
staff and meeting stakeholders with these
critical City services. Building out the
Emergency Operations HAM Radio
infrastructure was another point of emphasis
this year, bringing a more resilient
communications infrastructure during any
potential catastrophic event.
Employee changes: TIS welcomed a new addition this year. Will Ragin has done a fantastic job in his first
year and continues to rise to the occasion to meet the challenges presented. In addition to Will Ragin
being a huge support to TIS Operations, Alan Dunning has joined the team as a temporary employee,
dedicated to advancing the As -built project. Having worked as a TIS intern for the past several years,
Ryan Mathew received direct admittance to UWs Computer Science program with Junior standing for
the 2021/2022 year. This is a great example of how mentoring can be mutually beneficial and provide
growth for all involved.
Network Services: Increased resiliency, speed, and performance of City services were realized by
modernizing the City's virtual server and on -premise storage area network. New device quarantine was
added to the Dark Trace appliance to help mitigate network intrusions. The Justice Center camera and
Card Access system was connected to the City network with strict access, allowing easier monitoring and
management by Justice Center personnel. A site -to -site VPN was created with Central Square, which
enabled users working on site or remotely secure access to Finance Enterprise.
Public Safety: Legacy servers were transitioned to virtual computers to increase resiliency.
Chromebooks were replaced and deployed to the EOC for longevity and ease of maintenance. Active
Directory integration/Azure Single Sign -On was configured in new and existing software and systems.
GIS: The transition of primary enterprise data to
the new Enterprise/Portal environment was
completed, enhancing the ability for staff to
utilize self-service GIS tools. Developed and
initiated a 3 phased As -Built project,
collaborating with Public Works and City Clerk's
office, to bring greater visibility to As-builts and
the ability to locate assets throughout the City.
In support of the Smart City/Digital Equity grant
proposal, fiber locations around the City were
identified and plotted, and a webmap was
8
created to tell the story, which was well
received by internal and external customers.
Technology & Innovation Services Annual Report
Projects/Database support: Community Development and Online permitting services were upgraded in
an effort to stabilize Trakit and take advantages of fixes to the product. Lucity Asset Management was
configured and implemented for Fleet, and Neogov Performance Management was rolled out in Q4 of
2021, allowing completion of a full transition off of Lanteria. Throughout 2021, TIS supported Finance in
Phase I configuration of Finance Enterprise.
Small Cell Wireless: Working in tandem with the Planning Department, TIS pushed forward with an
update to the Tukwila Municipal Code as related to Small Cell Wireless and permitting. The update
brings Tukwila's code into the current era of wireless infrastructure permitting. Along with the code
update, a design standard for Small Wireless Facilities located on City poles was adopted. This initial
design meets the need for the majority of Tukwila's light poles. More designs are forthcoming as needs
are identified.
Cloud PBX: The completion of the City's migration to a new Cloud PBX was a milestone that was
completed in Q3. Along with providing resiliency and increased access, the new Cloud PBX enabled the
City to terminate service on aging and expensive analog services. Similarly, shortly after the Cloud PBX
migration was completed a new Cloud Fax Server was also implemented allowing even more analog
services to be discontinued. TIS is looking to terminate the remaining analog lines by moving alarm
systems to wireless connectivity in 2022. Panic buttons were also added onto the Cloud PBX system as
the solution built into the new Justice Center was found lacking. The new solution allowed for updated
buttons to be used throughout the rest of the City as well.
Franchise: TIS continues to partner with local vendors and service providers to try and bring resources
to the residents of Tukwila. A franchise agreement and asset sharing agreement with Extenet was
finalized early in 2021 to mirror the agreement made with Zayo at the end of 2020. These asset sharing
agreements will help build out Tukwila's network of fiber throughout the City and enable future projects
like Municipal LTE (CBRS). TIS worked with Nokia to successfully demo CBRS technology, which
essentially enables Tukwila to be its own cell network provider and offer service in desired areas where
financial or technological needs exist.
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